Lightbridge Provides Business Update and Announces First Quarter 2024 Financial Results
Lightbridge announced its financial results for the first quarter ended March 31, 2024, highlighting a strategic partnership project milestone at Idaho National Laboratory. The company aims to enhance nuclear fuel safety and efficiency for current and future reactors, positioning itself for growth amid increasing global demand for clean power. Financially, Lightbridge reported a decrease in cash flows but maintained a strong working capital position. The company's balance sheet shows healthy assets and liabilities, with a slight decrease in stockholders' equity. Operationally, increased expenses in R&D and general administration led to a net loss for the first quarter.
Company achieved a significant milestone under the strategic partnership project at Idaho National Laboratory, demonstrating the production of a partial-length rod sample using an alloy of depleted uranium and zirconium.
Increase in demand for clean, reliable power globally, coupled with international initiatives to increase nuclear capacity by 2050, presents substantial growth opportunities for Lightbridge.
Total assets were $28.9 million with total liabilities at $0.9 million at March 31, 2024, reflecting a strong financial position.
Cash and cash equivalents decreased by $0.7 million for the first quarter ended March 31, 2024, primarily due to increased spending on research and development (R&D) and general and administrative expenses.
Net loss increased to $2.8 million for the first quarter ended March 31, 2024, compared to $2.0 million for the same period in 2023, indicating financial challenges.
Stockholders' equity decreased to $28.0 million at March 31, 2024, from $28.9 million at December 31, 2023, showing a slight decline.
Insights
Lightbridge Corporation's recent financial update indicates a tight balance with working capital slightly decreasing from
The increase in general and administrative expenses and the resulting net loss suggests an aggressive growth strategy. However, these financials also raise the stakes for the company's future performance. The additional funding from the issuance of common stock should be observed carefully for dilutive effects on current shareholders. Given the broader context of global clean energy initiatives, Lightbridge's pursuit of technological edge in nuclear fuel could be promising, but it's important to monitor whether these investments translate into tangible business and financial gains.
Lightbridge Corporation's alignment with global demands for clean and reliable power, as well as its response to the COP28 initiatives, positions it favorably in the market. The strategic partnership with INL and progress in producing advanced nuclear fuel underscore significant potential in the sector. However, the technological and regulatory hurdles inherent in the nuclear industry can’t be overlooked. The market's increasing interest in nuclear energy as a complement to intermittent renewable sources like wind and solar lends credence to Lightbridge's strategic direction and could bolster the company's long-term prospects if they can successfully bring their innovative fuel to market.
Investors would be wise to track the progression of these R&D initiatives closely, as well as the emerging SMR market, which could provide substantial opportunities for Lightbridge. The balance between risk and reward is nuanced, as R&D advancements must be weighed against the practicalities of market adoption and the capital-intensive nature of the nuclear industry.
The advancements Lightbridge Corporation is making in nuclear fuel technology have notable implications for the energy sector, particularly in the context of extending fuel operational life and enhancing reactor safety. The design adjustments aimed at balancing power outputs to complement renewable energy fluctuation could signal a significant shift in how nuclear energy is integrated into the broader energy mix.
However, investors should consider the long development and regulatory cycles of nuclear technology. Any delays or setbacks in the R&D or eventual commercialization phases could significantly affect the company's financials and stock performance. Moreover, as nuclear projects demand high capital and are subject to geopolitical and environmental scrutiny, it is important to maintain a balanced view of the potential risks versus the long-term strategic benefits that Lightbridge promises.
Conference Call on Friday, May 10th at 11 a.m. ET
RESTON, Va., May 09, 2024 (GLOBE NEWSWIRE) -- Lightbridge Corporation (“Lightbridge”) (Nasdaq: LTBR), an advanced nuclear fuel technology company, announced its financial results for the first quarter ended March 31, 2024, and provided an update on the Company’s continued progress.
Seth Grae, President & Chief Executive Officer of Lightbridge Corporation, commented, “Lightbridge has achieved a significant milestone under our strategic partnership project agreement at Idaho National Laboratory (INL). INL demonstrated the production of a partial-length rod sample using an alloy of depleted uranium and zirconium. INL and Lightbridge will work together to analyze the extruded rod to confirm the extrusion process parameters prior to performing additional extrusions using an alloy of depleted uranium and zirconium materials later this year. Next year, we plan to produce coupon samples for irradiation testing in the Advanced Test Reactor at INL using an alloy of enriched uranium and zirconium.”
“Our advancement in nuclear fuel brings great potential towards extending the operational life of the fuel in reactors and introducing substantial safety benefits for today’s reactors and for the emerging small modular reactors (SMRs) globally. We are also designing the fuel to enable adjustment of power output of SMRs in response to fluctuations in supply by wind and solar generation, for a zero-carbon electric grid.”
“Looking ahead, Lightbridge is well positioned to capitalize on these opportunities. The increasing global demand for clean, reliable power, coupled with international initiatives set forth at COP28 to significantly increase nuclear capacity by 2050, presents substantial growth prospects for our technology,” concluded Mr. Grae.
Financial Highlights
Working capital was
Cash Flows Summary
Cash and cash equivalents were
- Cash used in operating activities for the first quarter ended March 31, 2024 was
$1.9 million , an increase of$0.4 million , compared to$1.5 million for the first quarter ended March 31, 2023. The increase was primarily due to increased spending on research and development (R&D) and general and administrative expenses. - Cash provided by financing activities for the first quarter ended March 31, 2024 was
$1.2 million , an increase of$0.5 million , compared to$0.7 million for the first quarter ended March 31, 2023. This increase was due to an increase in the net proceeds received from the issuance of common stock under our at-the-market facility.
Balance Sheet Summary
Total assets were
- Stockholders’ equity was
$28.0 million at March 31, 2024, as compared to$28.9 million at December 31, 2023.
Operations Summary
- General and administrative expenses amounted to
$2.2 million for the first quarter ended March 31, 2024, compared to$1.9 million for the first quarter ended March 31, 2023. The increase of$0.3 million was primarily due to an increase in employee compensation and employee benefits and directors’ fees of$0.1 million , an increase in postage and recruitment expenses of$0.1 million , and an increase in stock-based compensation of$0.1 million . - Lightbridge’s total research and development expenses amounted to
$1.0 million for the first quarter ended March 31, 2024, compared to$0.4 million for the first quarter ended March 31, 2023, an increase of$0.6 million . This increase was primarily due to the increase in R&D activities related to the development of our fuel. This increase primarily consisted of an increase in INL project labor costs and outside R&D expenses of$0.5 million , and an increase in allocated employee compensation and employee benefits to R&D of$0.1 million . - Total other income was
$0.4 million for the first quarter ended March 31, 2024, compared to other income of$0.3 million for the first quarter ended March 31, 2023, an increase of$0.1 million . The increase in other income was due to an increase in interest income earned from the purchase of treasury bills and from our bank savings account. - Net loss was
$2.8 million for the first quarter ended March 31, 2024, compared to$2.0 million for the first quarter ended March 31, 2023.
CONFERENCE CALL & AUDIO WEBCAST
The conference call will be led by Seth Grae, President and Chief Executive Officer, with other Lightbridge executives available to answer questions.
To access the call by phone, please register at this link (registration link), and you will be provided with dial-in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes before the scheduled start time. The webcast can be accessed at the following link (webcast).
A webcast replay will also be available for a limited time at the following link (webcast replay).
About Lightbridge Corporation
Lightbridge Corporation (NASDAQ: LTBR) is focused on developing advanced nuclear fuel technology essential for delivering abundant, zero-emission, clean energy and providing energy security to the world. The Company is developing Lightbridge Fuel™, a proprietary next-generation nuclear fuel technology for existing light water reactors and pressurized heavy water reactors, significantly enhancing reactor safety, economics, and proliferation resistance. The Company is also developing Lightbridge Fuel for new small modular reactors (SMRs) to bring the same benefits plus load-following with renewables on a zero-carbon electric grid.
Lightbridge has entered into two long-term framework agreements with Battelle Energy Alliance LLC, the United States Department of Energy’s operating contractor for Idaho National Laboratory, the United States' lead nuclear energy research and development laboratory. DOE’s Gateway for Accelerated Innovation in Nuclear program has twice awarded Lightbridge to support the development of Lightbridge Fuel over the past several years. Lightbridge is participating in two university-led studies through the DOE Nuclear Energy University Program at Massachusetts Institute of Technology and Texas A&M University. An extensive worldwide patent portfolio backs Lightbridge’s innovative fuel technology. Lightbridge is included in the Russell Microcap® Index. For more information, please visit www.ltbridge.com.
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Forward Looking Statements
With the exception of historical matters, the matters discussed herein are forward-looking statements. These statements are based on current expectations on the date of this news release and involve a number of risks and uncertainties that may cause actual results to differ significantly from such estimates. The risks include, but are not limited to: Lightbridge’s ability to commercialize its nuclear fuel technology; the degree of market adoption of Lightbridge’s product and service offerings; Lightbridge’s ability to fund general corporate overhead and outside research and development costs; market competition; our ability to attract and retain qualified employees; dependence on strategic partners; demand for fuel for nuclear reactors; Lightbridge’s ability to manage its business effectively in a rapidly evolving market; the availability of nuclear test reactors and the risks associated with unexpected changes in Lightbridge’s fuel development timeline; the increased costs associated with metallization of Lightbridge’s nuclear fuel; public perception of nuclear energy generally; changes in the political environment; risks associated with war in Europe; changes in the laws, rules and regulations governing Lightbridge’s business; development and utilization of, and challenges to, Lightbridge’s intellectual property; risks associated with potential shareholder activism; potential and contingent liabilities; as well as other factors described in Lightbridge's filings with the Securities and Exchange Commission (the “SEC”). Lightbridge does not assume any obligation to update or revise any such forward-looking statements, whether as the result of new developments or otherwise, except as required by law. Readers are cautioned not to put undue reliance on forward-looking statements.
A further description of risks and uncertainties can be found in Lightbridge’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and in its other filings with the SEC, including in the sections thereof captioned “Risk Factors” and “Forward-Looking Statements”, all of which are available at http://www.sec.gov/ and www.ltbridge.com.
Investor Relations Contact:
Matthew Abenante, IRC
Director of Investor Relations
Tel: +1 (347) 947-2093
ir@ltbridge.com
*** tables follow ***
| LIGHTBRIDGE CORPORATION | ||||||||
| UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| March 31, | December 31, | |||||||
| 2024 | 2023 | |||||||
| ASSETS | ||||||||
| Current Assets | ||||||||
| Cash and cash equivalents | $ | 27,942,421 | $ | 28,598,445 | ||||
| Prepaid expenses and other current assets | 401,859 | 207,063 | ||||||
| Total Current Assets | 28,344,280 | 28,805,508 | ||||||
| Other Assets | ||||||||
| Prepaid project costs and other long-term assets | 479,625 | 483,000 | ||||||
| Trademarks | 108,865 | 108,865 | ||||||
| Total Assets | $ | 28,932,770 | $ | 29,397,373 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current Liabilities | ||||||||
| Accounts payable and accrued liabilities | $ | 907,421 | $ | 486,326 | ||||
| Total Current Liabilities | 907,421 | 486,326 | ||||||
| Stockholders’ Equity | ||||||||
| Preferred stock, | — | — | ||||||
| Common stock, | 14,190 | 13,698 | ||||||
| Additional paid-in capital | 183,228,519 | 181,295,125 | ||||||
| Accumulated deficit | (155,217,360 | ) | (152,397,776 | ) | ||||
| Total Stockholders’ Equity | 28,025,349 | 28,911,047 | ||||||
| Total Liabilities and Stockholders’ Equity | $ | 28,932,770 | $ | 29,397,373 | ||||
| LIGHTBRIDGE CORPORATION | ||||||||
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2024 | 2023 | |||||||
| Revenue | $ | — | $ | — | ||||
| Operating Expenses | ||||||||
| General and administrative | 2,157,745 | 1,865,929 | ||||||
| Research and development | 1,023,823 | 448,044 | ||||||
| Total Operating Expenses | 3,181,568 | 2,313,973 | ||||||
| Other Operating Income | ||||||||
| Contributed services - research and development | — | 31,028 | ||||||
| Total Other Operating Income | — | 31,028 | ||||||
| Operating Loss | (3,181,568 | ) | (2,282,945 | ) | ||||
| Other Income | ||||||||
| Interest income | 361,984 | 256,365 | ||||||
| Total Other Income | 361,984 | 256,365 | ||||||
| Net Loss Before Income Taxes | (2,819,584 | ) | (2,026,580 | ) | ||||
| Income taxes | — | — | ||||||
| Net Loss | $ | (2,819,584 | ) | $ | (2,026,580 | ) | ||
| Net Loss Per Common Share | ||||||||
| Basic and diluted | $ | (0.21 | ) | $ | (0.17 | ) | ||
| Weighted Average Number of Common Shares Outstanding | 13,491,954 | 11,673,736 | ||||||
| LIGHTBRIDGE CORPORATION | |||||||
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
| Three Months Ended March 31, | |||||||
| 2024 | 2023 | ||||||
| Operating Activities | |||||||
| Net Loss | $ | (2,819,584 | ) | $ | (2,026,580 | ) | |
| Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
| Stock-based compensation | 456,904 | 284,360 | |||||
| Changes in operating assets and liabilities: | |||||||
| Prepaid expenses and other current assets | (194,796 | ) | (278,173 | ) | |||
| Prepaid project costs and other long-term assets | 3,375 | — | |||||
| Accounts payable and accrued liabilities | 676,095 | 440,647 | |||||
| Net Cash Used in Operating Activities | (1,878,006 | ) | (1,579,746 | ) | |||
| Net Cash Used in Investing Activities | — | — | |||||
| Financing Activities | |||||||
| Net proceeds from the issuances of common stock | 1,221,982 | 731,052 | |||||
| Net Cash Provided by Financing Activities | 1,221,982 | 731,052 | |||||
| Net Decrease in Cash and Cash Equivalents | (656,024 | ) | (848,694 | ) | |||
| Cash and Cash Equivalents, Beginning of Period | 28,598,445 | 28,899,997 | |||||
| Cash and Cash Equivalents, End of Period | $ | 27,942,421 | $ | 28,051,303 | |||
| Supplemental Disclosure of Cash Flow Information | |||||||
| Cash paid during the period: | |||||||
| Interest paid | $ | — | $ | — | |||
| Income taxes paid | $ | — | $ | — | |||
| Non-Cash Financing Activities: | |||||||
| Payment of accrued liabilities with common stock | $ | 255,000 | $ | 215,000 | |||
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