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Last updated on April 19, 2014 at 9:20 EDT

Lightbridge Announces 2012 Second Quarter Business Update and Financial Results

August 2, 2012

MCLEAN, Va., Aug. 2, 2012 /PRNewswire/ — Lightbridge Corporation (NASDAQ: LTBR), a leading innovator of next generation nuclear fuel designs and provider of nuclear energy consulting services to commercial and governmental organizations, today provided a business update on the progress of its nuclear fuel technology and consulting operations and reported financial results for the quarter and six months ended June 30, 2012.

“Demonstrations of Lightbridge fuel technology continue to support the indicated benefits of meaningful power uprates, longer fuel cycles and increased safety,” said Seth Grae, Lightbridge President and Chief Executive Officer. “Our advisory services division also was very active during the quarter in the pursuit of new consulting opportunities as global interest renews in nuclear energy as a source of long-term, efficient, base-load and carbon-free electric power. Reactors in Japan have been restarted for the first time since the Fukushima event. Today, there is more nuclear power generation throughout the world than ever before. Moreover, construction began in July in the United Arab Emirates of the first two of four reactors. Momentum is building throughout the commercial nuclear power market.”

Ongoing contract negotiations continue to advance with the Bochvar Institute related to fabrication of Lightbridge-designed metallic fuel samples for irradiation testing in the MIR research reactor in Dimitrovgrad, Russia, and the Advanced Test Reactor at Idaho National Laboratory, Mr. Grae said. Loop irradiation of the Company’s metallic fuel samples remains on schedule for a 2013 start in the MIR research reactor. Planning for loop irradiation is underway. Irradiated samples from this program will be used for additional out-of-reactor tests to demonstrate the metallic fuel’s behavior during severe accident scenarios and to provide quantitative verification of the safety benefits of the Lightbridge-designed fuel.

“Working with our development partners and vendors, we anticipate that we will be able to begin lead test assembly operation in a full-size commercial light water reactor by the end of 2017,” Mr. Grae said. “This involves testing a limited number of our full-scale fuel assemblies in the core of a commercial nuclear power plant over three 18-months cycles.”

Financial Results

Revenue for the second quarter ended June 30, 2012 was $1.0 million, compared to $2.3 million for the same period of 2011. For the six months, revenue totaled $2.2 million, versus $3.9 million for the same period last year. Net loss for the 2012 quarter was $1.3 million, or $0.11 per share, versus a net loss of $1.2 million, or $0.09 per share, in the comparable period a year ago. For the six months ended June 30, 2012, the Company’s net loss was $2.1 million, or $0.17 per share, compared to $2.8 million, or $0.23 per share, a year ago. Lightbridge revenues are derived primarily from consulting and strategic advisory services for foreign governments planning to create or expand electricity generation capabilities using nuclear power plants, and are used to help fund the continuing development of the Company’s nuclear fuel technologies. Revenues were primarily generated from contracts in place with governmental entities in the United Arab Emirates.

Balance Sheet Overview

At June 30 2012, the Company had approximately $6.4 million in cash and cash equivalents, restricted cash and marketable securities, and approximately $6.7 million of working capital, with no long term debt. Stockholders’ equity was approximately $8.3 million at June 30, 2012 compared with $8.8 million on December 31, 2011. Common shares outstanding at June 30, 2012 totaled 12,503,982.

2012 Second Quarter Conference Call

Lightbridge will host a conference call on Friday, August 3, at 11 a.m. EDT to discuss the Company’s 2012 second quarter results and provide an update on recent corporate developments. Seth Grae, President and Chief Executive Officer, will lead the call and additional members of the senior management team will be available to answer questions. Please submit questions for Lightbridge executive management in writing before or during the conference call to ir@ltbridge.com. All questions will be read aloud and answered during the call.

Date: Friday, August 3, 2012
Time: 11 a.m. EDT
Domestic Call-In: 1-800-860-2442
International Call-In: 1-412-858-4600
Canada Call-In: 866-605-3852
Live Webcast: http://www.videonewswire.com/event.asp?id=88672. Approximately one hour after the live event, an archived webcast will be available at this same URL.
Audio Replay: Available one hour after the conference through 9 a.m. August 10, 2012. Domestic call-in: 877-344-7529; international call-in: 412-317-0088. Conference # 10013656.

About Lightbridge Corporation

Lightbridge is a US nuclear energy company based in McLean, Virginia with operations in Abu Dhabi, Moscow and London. The Company develops proprietary, proliferation resistant, next generation nuclear fuel technologies for current and future nuclear reactor systems. The Company also provides comprehensive advisory services for established and emerging nuclear programs based on a philosophy of transparency, non-proliferation, safety and operational excellence. Lightbridge’s breakthrough fuel technology is establishing new global standards for safe and clean nuclear power and leading the way to a sustainable energy future. Lightbridge consultants provide integrated strategic advice and expertise across a range of disciplines including regulatory affairs, nuclear reactor procurement and deployment, reactor and fuel technology and international relations. The Company leverages those broad and integrated capabilities by offering its services to commercial entities and governments with a need to establish or expand nuclear industry capabilities and infrastructure.

Lightbridge is on Twitter. Sign up to follow @LightbridgeCorp at http://twitter.com/lightbridgecorp.

Forward Looking Statement

This news release contains statements that are forward-looking in nature, including statements regarding the Company’s competitive position and product and service offerings. 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, the degree of market adoption of the Company’s product and service offerings; market competition; dependence on strategic partners; and the Company’s ability to manage its business effectively in a rapidly evolving market. Certain of these and other risks are set forth in more detail in Lightbridge’s filings with the Securities and Exchange Commission. Lightbridge does not assume any obligation to update or revise any such forward-looking statements, whether as the result of new developments or otherwise.

CONTACT:
Gary Sharpe
Investor Relations
Lightbridge Corporation
571-730-1213
gsharpe@ltbridge.com

                                                                                        Lightbridge Corporation
                                                                                 Condensed Consolidated Balance Sheets
                                                                                                                                                   June 30,
                                                                                                                                                                      2012      December 31,
                                                                                                                                                  (Unaudited)              2011
                                                                                                                                                  ----------               ----
                                                                            ASSETS

    Current Assets
       Cash and cash equivalents                                                                                                                                 $827,486         $3,569,098
       Marketable securities                                                                                                                                    4,979,827          5,146,823
       Restricted cash                                                                                                                                            552,850            551,883
       Accounts receivable - project revenue and reimbursable project costs                                                                                       664,390            277,211
       Prepaid expenses and other current assets                                                                                                                  554,744            269,697
                                                                                                                                                                  -------            -------
         Total Current Assets                                                                                                                                   7,579,297          9,814,712
                                                                                                                                                                ---------          ---------

    Property Plant and Equipment -net                                                                                                                              51,735             46,514
                                                                                                                                                                   ------             ------

    Other Assets
       Patent costs - net                                                                                                                                         576,031            537,075
       Security deposits                                                                                                                                           80,324            120,486
                                                                                                                                                                   ------            -------
          Total Other Assets                                                                                                                                      656,355            657,561
                                                                                                                                                                  -------            -------

    Total Assets                                                                                                                                               $8,287,387        $10,518,787

                                                             LIABILITIES AND STOCKHOLDERS' EQUITY

    Current Liabilities
       Accounts payable and accrued liabilities                                                                                                                  $930,324         $1,680,433

    Total Current Liabilities                                                                                                                                     930,324          1,680,433
                                                                                                                                                                  -------          ---------

    Commitments and contingencies

    Stockholders' Equity
    Preferred stock, $0.001 par value, 50,000,000 authorized shares, no shares issued and outstanding                                                       -                 -
    Common stock, $0.001 par value, 500,000,000 authorized, 12,537,607 shares issued, 12,503,982 shares outstanding and 12,476,414 shares issued,
     12,427,220 shares outstanding at June 30, 2012 and December 31, 2011, respectively                                                                            12,504             12,427
    Additional paid in capital - stock and stock equivalents                                                                                                   71,608,677         70,946,951
    Deficit                                                                                                                                                   (64,267,243)       (62,155,774)
    Common stock reserved for issuance, 1,555 shares and 17,120 shares at June 30, 2012 and December 31, 2011, respectively                                         3,125             34,750
                                                                                                                                                                    -----             ------
    Total Stockholders' Equity                                                                                                                                  7,357,063          8,838,354
                                                                                                                                                                ---------          ---------
                                                                                                                                                               $8,287,387        $10,518,787
    Total Liabilities and Stockholders' Equity

                                                                                                                             Lightbridge Corporation
                                                                                                            Unaudited Condensed Consolidated Statements of Operations

                                                                                                                                                                                                                                                                               Three Months Ended                Six Months Ended
                                                                                                                                                                                                                                                                                    June 30,                         June 30,
                                                                                                                                                                                                                                                                                    --------                         --------
                                                                                                                                                                                                                                                                                             2012                            2011                       2012                       2011
                                                                                                                                                                                                                                                                                             ----                            ----                       ----                       ----
    Revenue:

    Consulting Revenue                                                                                                                                                                                                                                                                                 $981,016                      $2,292,549                 $2,238,537                 $3,870,643

    Cost of  Consulting Services Provided                                                                                                                                                                                                                                                 607,780                       1,575,624                  1,377,465                  2,668,643
                                                                                                                                                                                                                                                                                          -------                       ---------                  ---------                  ---------

    Gross Margin                                                                                                                                                                                                                                                                          373,236                         716,925                    861,072                  1,202,000
                                                                                                                                                                                                                                                                                          -------                         -------                    -------                  ---------

    Operating Expenses
    General and administrative                                                                                                                                                                                                                                                          1,246,233                       1,480,471                  2,191,595                  3,120,657
    Research and development expenses                                                                                                                                                                                                                                                     518,360                         539,155                  1,015,068                  1,125,795
                                                                                                                                                                                                                                                                                          -------                         -------                  ---------                  ---------
    Total Operating Expenses                                                                                                                                                                                                                                                            1,764,593                       2,019,626                  3,206,663                  4,246,452
                                                                                                                                                                                                                                                                                        ---------                       ---------                  ---------                  ---------

    Operating Loss                                                                                                                                                                                                                                                                     (1,391,357)                     (1,302,701)               (2,345,591)                (3,044,452)
                                                                                                                                                                                                                                                                                       ----------                      ----------                 ----------                 ----------

    Other Income and (Expenses)
    Investment income                                                                                                                                                                                                                                                                      81,510                         140,478                    233,068                    246,300
    Other income (expenses)                                                                                                                                                                                                                                                                (5,089)                            291                      1,053                     (2,519)
                                                                                                                                                                                                                                                                                           ------                             ---                      -----                     ------
    Total Other Income and Expenses                                                                                                                                                                                                                                                        76,421                         140,769                    234,121                    243,781
                                                                                                                                                                                                                                                                                           ------                         -------                    -------                    -------

    Net loss before income taxes                                                                                                                                                                                                                                                       (1,314,936)                     (1,161,932)               (2,111,470)                (2,800,671)

    Income taxes                                                                                                                                                                                                                                                                                0                               0                          0                          0
                                                                                                                                                                                                                                                                                              ---                             ---                        ---                        ---

    Net  loss                                                                                                                                                                                                                                                                                       $(1,314,936)                    $(1,161,932)               $(2,111,470)               $(2,800,671)

    Net Loss Per Common Share, Basic and diluted                                                                                                                                                                                                                                                         $(0.11)                         $(0.09)                    $(0.17)                    $(0.23)

                                                                                                                                                                                                                                                                                       12,491,750                      12,362,929                 12,462,182                 12,358,117
    Weighted Average Number of shares outstanding

                                                                               Lightbridge Corporation
                                                              Unaudited Condensed Consolidated Statements of Cash Flows

                                                                                                                              Six Months Ended
                                                                                                                                  June 30,
                                                                                                                                  --------
                                                                                                                                 2012                   2011
                                                                                                                                 ----                   ----
    Operating Activities:
    Net Loss                                                                                                            $(2,111,470)           $(2,800,671)
    Adjustments to reconcile net loss from operations to net cash used in operating activities:
    Stock based compensation                                                                                                628,445                784,936
    Depreciation and amortization                                                                                            14,517                 13,914
    Unrealized (gains) loss on marketable securities                                                                       (109,757)               (85,521)
    Changes in non-cash operating working capital items:
    Accounts receivable - fees and reimbursable project costs                                                              (387,179)              (299,829)
    Prepaid expenses and other  assets                                                                                     (244,885)              (447,374)
    Accounts payable, accrued liabilities and other current liabilities                                                    (750,108)              (611,353)
    Deferred revenue                                                                                                              0                480,290
    Net Cash Used In Operating Activities                                                                                (2,960,437)            (2,965,608)
                                                                                                                         ----------             ----------

    Investing Activities:
    Proceeds from the sale of marketable securities                                                                         397,926              1,933,867
    Purchase of marketable securities                                                                                      (121,173)                     0
    Property and equipment                                                                                                  (19,738)                (1,563)
    Patent costs                                                                                                            (38,956)               (44,879)
    Net Cash Provided By Investing Activities                                                                               218,059              1,887,425
                                                                                                                            -------              ---------

    Financing Activities:
    Proceeds from the issuance of common stock                                                                                1,733                      0
    Restricted cash                                                                                                            (967)                  (906)
    Net Cash Provided by (Used In) Financing Activities                                                                         766                   (906)
                                                                                                                                ---                   ----

    Net Decrease In Cash and Cash Equivalents                                                                            (2,741,612)            (1,079,089)

    Cash and Cash Equivalents, Beginning of Period                                                                        3,569,098              2,373,421
                                                                                                                          ---------              ---------

    Cash and Cash Equivalents, End of Period                                                                               $827,486             $1,294,332

    Supplemental Disclosure of Cash Flow Information:
    Cash paid during the year:
    Interest paid                                                                                                                $0                     $0

    Income taxes paid                                                                                                            $0                     $0

SOURCE Lightbridge Corporation


Source: PR Newswire