RESTON, Va., March 15, 2018 (GLOBE NEWSWIRE) -- Lightbridge Corporation (NASDAQ:LTBR), a nuclear fuel technology company, today provided a business update, including upcoming milestones for Enfission LLC, its joint venture with Framatome, Inc., a leader in designing, building, servicing, and fueling today's reactor fleet and advancing nuclear energy. The Company also reported financial results for the year ended December 31, 2017.
Seth Grae, President & Chief Executive Officer of Lightbridge Corporation, commented, “In 2017 we laid the foundation for what would become the most pivotal event in our corporate history. In January of this year we announced the launch of Enfission, our 50-50 joint venture with Framatome, to develop, license and sell nuclear fuel assemblies based on Lightbridge-designed metallic fuel technology and other advanced nuclear fuel intellectual property. I am pleased to report that with Framatome we are making rapid progress since the formation of Enfission. Specifically, we are working on developing a regulatory licensing plan for lead test assemblies and we expect to present this plan to the U.S. Nuclear Regulatory Commission (NRC) later this year. We are also developing analytical models for our metallic fuel technology that can be used for reactor analysis and regulatory licensing. Our goal is to commence metallic fuel sample fabrication for irradiation in a test reactor in 2020. We continue to receive valuable feedback on our fuel technology development plan through our Nuclear Utility Fuel Advisory Board, which is comprised of four leading U.S. nuclear utilities. We expect Enfission to enter into a lead test rod and/or lead test assembly agreement with at least one of these four companies in 2019-2020, which could result in our first fuel-related cash contributions from a utility customer.”
“We continue to expand our intellectual property protection. In January, we received a Notice of Allowance in the U.S. that extends Lightbridge's patent portfolio coverage to an entire metallic fuel assembly design for Western-type pressurized water reactors, which comprise two-thirds all power reactors in operation worldwide. Our metallic fuel designs can also be adapted for use in nearly all other power reactors around the world. We were also awarded key patents in Europe and China related to our innovative metallic fuel design, which extend through 2034. With dozens of patents issued and pending around the world, we have assembled a strong intellectual property portfolio that, through Enfission, we plan to leverage into commercial arrangements.”
“There is growing governmental support for nuclear energy in the U.S. and around the world. Nearly all the nuclear power plants in the U.S. have received license renewals to allow operations to 60 years, and the first applicants for subsequent license renewals to extend reactor operations to 80 years have announced plans to begin the process with the NRC this year. Importantly, the White House has placed nuclear energy at the forefront of its energy agenda, including new programs to boost nuclear power research and development. Importantly, our nuclear fuel designs are attracting attention at both the commercial and governmental levels, given that our technology holds significant promise to enhance reactor safety, improve nuclear power plants’ economics through increased power output and longer fuel cycles, improve proliferation resistance of spent fuel so bombs can’t be made from nuclear waste, and reduce the amount of waste per unit of electricity generated.”
“Since the end of 2017, we have significantly enhanced our balance sheet, including a recent capital raise with European family offices, strategic and accredited American and European investors. As a result, our balance sheet is stronger than any time in our corporate history and we now have approximately $27 million of cash on hand as of today, which we expect will help significantly accelerate our commercial efforts.”
Balance Sheet Overview
At December 31, 2017, we had cash and cash equivalents of approximately $4.5 million, as compared to approximately $3.6 million at December 31, 2016. The $0.9 million increase in cash and cash equivalents resulted from the sale of approximately $6.0 million of common stock during the twelve months ended December 31, 2017, partially offset by net cash used in operating activities of approximately $5.0 million and cash used in investing activities of approximately $0.2 million. The Company used cash during the 12 months ended December 31, 2017 primarily to fund general and administrative expenses and for research and development. The Company had approximately $3.6 million in working capital at December 31, 2017 as compared to working capital of approximately $3.4 million at December 31, 2016. Stockholders' equity at December 31, 2017 was approximately $5.8 million compared to stockholders’ equity of approximately $5.6 million at December 31, 2016.
Operating Results – Year End of Fiscal 2017 Compared to Year End of Fiscal 2016
For the year ended December 31, 2017, Lightbridge’s net loss available to common shareholders was approximately $7.4 million, or a loss of $0.71 per share, on revenue of $0.2 million. Lightbridge focused its efforts on forming the joint venture with Framatome, which included Framatome’s due diligence work on our nuclear fuel before entering into the Enfission joint venture. In the same period of 2016, the net loss available to common shareholders was $7 million, or loss per share of $1.48 per share, on revenue of $0.8 million. All revenue was generated from consulting services. Stock-based compensation expense was $1.2 million for the year ended December 31, 2017 compared to $2.0 million for the year ended December 31, 2016. For the year ended December 31, 2017, the Company’s cash flows used in operating activities were $5.0 million versus $6.0 million used in operating activities for the same period of 2016. The decrease in cash used in operating activities in 2017 of $1.0 million was primarily due to the decrease in revenue and operating expenses and the change in working capital items.
About Lightbridge Corporation
Lightbridge (NASDAQ:LTBR) is a nuclear fuel technology development company based in Reston, Virginia, USA. The Company develops proprietary next generation nuclear fuel technologies for current and future reactors, which significantly enhances the economics and safety of nuclear power, operating about 1000° C cooler than standard fuel. In January 2018, Lightbridge and Framatome, Inc. formed a 50-50 joint venture, Enfission, LLC, to develop, license, manufacture, and sell nuclear fuel assemblies based on Lightbridge-designed metallic fuel technology and other advanced nuclear fuel intellectual property. Enfission has the exclusive rights to this technology and is responsible for the development of manufacturing processes and fuel assembly designs for pressurized water reactors (PWRs), boiling water reactors (BWRs), water-cooled small modular reactors, and water-cooled research reactors developed around this intellectual property. PWRs and BWRs constitute the most widely used reactor types in the world. Four large electric utilities that generate about half the nuclear power in the US already advise Lightbridge on fuel development and deployment. In addition to distributions from Enfission based on the parties’ ownership interest in the joint venture, Lightbridge anticipates receiving future licensing revenues in connection with sales by Enfission of nuclear fuel incorporating its intellectual property. Lightbridge also provides comprehensive advisory services for established and emerging nuclear programs based on a philosophy of transparency, non-proliferation, safety and operational excellence. For more information please visit: www.ltbridge.com.
