Lightbridge Provides Business Update and Reports Financial Results for the Third Quarter of 2016
Seth Grae, President & Chief Executive Officer of Lightbridge Corporation, commented, “I am pleased to report several major milestones achieved since the end of the third quarter. First, we signed a non-binding term sheet with AREVA that outlines a U.S.-based joint venture between our companies to develop, manufacture and commercialize fuel assemblies based on our next-generation nuclear fuel technology. We are excited to have a partner of AREVA’s stature with global market reach and expertise in nuclear fuel assembly design, licensing and fabrication. Following the announcement of this joint venture, we signed a letter of intent with a U.S. nuclear utility company for our first Lead Test Assembly contract, which will represent the first use of Lightbridge-designed nuclear fuel in a commercial reactor in the United States. We remain on track for irradiation testing of our nuclear fuel samples at the Halden reactor in Norway, and full commercialization of our fuel in the coming years.”“During the third quarter we announced that we received a Notice of Allowance for a key patent covering our metallic nuclear fuel rod design from the European Patent Office which has since been issued and added to our patent portfolio. To date, we have received numerous patents and now have very broad intellectual property protection in all key markets including the U.S., Canada, China, Japan, South Korea, Russia, European Union-member countries and elsewhere around the world.”“Given our recent partnerships with AREVA and a U.S. utility, along with other support we have received from the industry, we are making solid progress towards commercialization.
We remain more confident than ever in the outlook for our business and our potential to generate hundreds of millions of dollars in annual royalty revenues. Moreover, we believe the Clean Power Plan and the associated Emission Rate Credits from the power uprates and longer fuel cycles from our fuel will translate to even greater economic benefit to utilities. We believe that nuclear power, generated in existing and new reactors with our advanced metallic fuel technology is a necessary component of the energy mix for the United States and the world to meet energy and climate goals.”
Financial HighlightsBalance Sheet Overview At September 30, 2016, the Company had approximately \\$3.3 million in cash and restricted cash compared to approximately \\$0.9 million in cash and restricted cash at December 31, 2015. The Company had approximately \\$3.1 million in working capital at September 30, 2016 as compared to working capital of approximately \\$0.1 million at December 31, 2015. Stockholders' equity was approximately \\$5.1 million compared to stockholders’ deficit of approximately \\$1.5 million at December 31, 2015.On June 28, 2016, the Company entered into a Securities Purchase Agreement with General International Holdings, Inc. (“GIH”) pursuant to which GIH purchased 1,020,000 shares of the Company’s newly created Non-Voting Series A Convertible Preferred Stock for \\$2.8 million or approximately \\$2.75 per share. On August 10, 2016 the Company entered into an option agreement with Aspire Capital that will give it an option until December 31, 2019 to enter in two equity line agreements for a combined total of \\$20 million. The Company issued 500,000 common stock purchase warrants with a strike price of \\$0.01 per share to Aspire Capital as the commitment fee for entering into this option agreement.On June 28, 2016 the Company also entered into a Securities Purchase Agreement with Aspire Capital which provides for the sale of up to an additional \\$4.0 million of the Company’s common stock to Aspire Capital upon the achievement of certain milestones.The current primary potential sources of cash available to the Company are equity investments through its equity purchase agreements with Aspire Capital and the At-the-Market (ATM) agreement with MLV & Co. The Company has no debt or debt credit lines and has financed its operations to date through consulting revenue and the sale of common and preferred stock. The Company has raised approximately \\$3.6 million in 2016 through its equity purchase agreements with Aspire Capital.
Operating Results – Third Quarter of Fiscal 2016 Compared to Third Quarter of Fiscal 2015
For the third quarter ended September 30, 2016, Lightbridge’s net loss available to common shareholders was approximately \\$2.1 million, or a loss of \\$0.44 per share, on revenue of \\$0.1 million. In the same quarter of 2015, the net loss available to common shareholders was \\$0.2 million, or loss per share of \\$0.05 per share, on revenue of \\$0.2 million. All revenue was generated from consulting services. Stock-based compensation expense was \\$0.4 million for the quarter ended September 30, 2016 compared to \\$0.2 million for the quarter ended September 30, 2015. For the nine months ended September 30, 2016, the Company’s cash flows used in operating activities were \\$3.9 million versus \\$2.5 million used in operating activities for the same period of 2015. This increase is primarily due to the decrease in our revenue and the increase in our operating expenses, which include research and development expenses, in 2016.
2016 Third Quarter Conference Call
Lightbridge will host a conference call on Friday, November 11, 2016 at 11:00 a.m. Eastern Time to discuss the company's financial results for the third quarter ending September 30, 2016, as well as the Company's corporate progress and other meaningful developments.Interested parties can access the conference call by calling 866-320-0174 for U.S. callers, or +1 785-424-1631 for international callers. The call will be available on the Company’s website via webcast at http://ir.ltbridge.com/events.cfm. The conference call will be led by Seth Grae, President and Chief Executive Officer and other Lightbridge executives will also be available to answer questions. Questions may also be submitted in writing before or during the conference call to email@example.com. A webcast will also be archived on the Company’s website and a telephone replay of the call will be available approximately one hour following the call, through midnight December 12, 2016, and can be accessed by calling: 877-481-4010 (U.S. callers) or +1- 919-882-2331 (international callers) and entering conference ID: 10134.ight gnw_vertical_align_bottom hugin">