Contact:
| Lightbridge Corporation: | Ogilvy Public Relations: |
| Gerry Pascale | Greg Jawski |
| (571) 730-1213 | 212-880-5353 |
| ir@Ltbridge.com | greg.jawski@ogilvypr.com |
Linda Byus
(571) 730-1218
lbyus@ltbridge.com
Lightbridge Corporation Reports 2010 First Quarter Financial Results
MCLEAN, VA, May 13, 2010 – Lightbridge Corporation (NASDAQ: LTBR), a developer of proprietary nuclear fuel technologies and a leading provider of nuclear energy consulting services to commercial and governmental entities, today reported revenue of $2.4 million for the three months ended March 31, 2010 compared to $2.9 million in the comparable period a year ago. Operating loss for the three months ended March 31, 2010 increased slightly to $1.7 million, compared to $1.5 million for the three months ended March 31, 2009. Excluding the impact of non-cash items, adjusted net loss for the three months ended March 31, 2010 would have been $0.8 million compared to adjusted net income of $0.2 million for the same period in 2009 (see “About Non-GAAP Financial Measures” near the end of this release).
Seth Grae, Lightbridge Chief Executive Officer, commented, “While our revenue reflects year-to-year variation, we continue to make progress on both sides of our business. On the nuclear consulting services side, we recently entered into a new agreement with another foreign government to evaluate the feasibility of developing and deploying a civil nuclear power program. Our nuclear fuel development business remains on schedule and we expect to expand our work with AREVA this year. As we’ve indicated previously, in 2010 we plan to address what we believe will be the last significant technical risk until testing and demonstration of fuel bundles in commercial power reactors with the fabrication of a full-length 3-meter metal seed rod. We anticipate having results from that study in the second half of the year.”
Mr. Grae added, “The level of activity on the legislative front, including the introduction of the Reid-Hatch legislation in the US Senate earlier this year, and ongoing dialogue with foreign countries and leading global energy companies on both sides of our business are key, longer-term developments for Lightbridge. As these business trends intersect with our fuel development timeline and a growing demand for nuclear expertise, we believe that we’re well positioned to capitalize over the longer-term.”
Discussion of Revenue and Cash Flow
The Company’s operating revenues are derived primarily from the Company’s 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 continued development of the Company’s nuclear fuel design technology. Revenues are primarily generated from the five-year consulting contracts in place in the United Arab Emirates (“UAE”) with two separate entities, the Emirates Nuclear Energy Corporation (“ENEC”) and the Federal Authority for Nuclear Regulation (“FANR”).
As of March 31, 2010, the company had approximately $2.0 million of cash and cash equivalents and approximately $4.4 million of working capital. As of December 31, 2009, the company had approximately $4.5 million of working capital.
About Non-GAAP Financial Measures
This press release contains non-GAAP financial measures for earnings that exclude non-cash items. Net income excluding non-cash items is not a measure of performance calculated in accordance with generally accepted accounting principles in the United States (“GAAP”). The Company believes the presentation of net income excluding non-cash expense is relevant and useful by enhancing the readers’ ability to understand the Company’s operating performance. The Company’s management utilizes net income excluding non-cash expense as a means to measure operating performance. The table below reconciles adjusted net income (loss) excluding non-cash expense, a non-GAAP measure, to GAAP net income (loss) for the three months ended March 31, 2010 and March 31, 2009 (Expressed in Thousands of US Dollars).
| Three Months Ended | Three Months Ended | |||||||
| 31-March-10 | 31-March 09 | |||||||
| GAAP Net Income (Loss) | $ | (1,684) | $ | (1,522) | ||||
| Adjustments: | ||||||||
| Expense - non-cash employee compensation | 860 | 1,273 | ||||||
| Expense - depreciation | 7 | 6 | ||||||
| Adjusted Net Income (Loss) | $ | (817) | $ | (243) | ||||
About Lightbridge Corporation
Lightbridge is a U.S. nuclear energy company based in McLean, VA with operations in Abu Dhabi, Moscow and London. The Company develops non-proliferative nuclear fuel technology and 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 peaceful nuclear power and leading the way towards 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 services to commercial entities and governments with a need to establish or expand nuclear industry capabilities and infrastructure.
Conference Call
Lightbridge Corporation will host a conference call at 10 a.m. (EST) on Thursday, May 13, 2010. The call will be available on the Company’s website at www.Ltbridge.com, or by calling (877) 892-6834 for U.S. callers, or +1 (702) 643-9738 for international callers, and entering conference ID: 74619970.
Lightbridge Corporation
Condensed Consolidated Balance Sheets
| March 31, | December 31, | |||||||
| 2010 | 2009 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current Assets | ||||||||
| Cash and cash equivalents | $ | 2,000,134 | $ | 3,028,791 | ||||
| Restricted cash | 652,174 | 652,174 | ||||||
| Accounts receivable - project revenue and reimbursable project costs | 2,647,233 | 2,421,088 | ||||||
| Prepaid expenses & other current assets | 675,523 | 574,095 | ||||||
| Total Current Assets | 5,975,064 | 6,676,148 | ||||||
| Property Plant and Equipment -net | 90,608 | 97,559 | ||||||
| Other Assets | ||||||||
| Patent costs - net | 241,845 | 241,845 | ||||||
| Security deposits | 120,487 | 120,486 | ||||||
| Total Other Assets | 362,332 | 362,331 | ||||||
| Total Assets | $ | 6,428,004 | $ | 7,136,038 | ||||
| LIABILITIES AND STOCKHOLDERS EQUITY | ||||||||
| Current Liabilities | ||||||||
| Accounts payable and accrued liabilities | $ | 1,575,718 | $ | 2,162,221 | ||||
| Total Liabilities | 1,575,718 | 2,162,221 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' Equity | ||||||||
| Preferred stock, $0.001 par value, 50,000,000 authorized shares, no shares issued and outstanding | - | - | ||||||
Common stock, $0.001par value, 500,000,000 authorized, 10,168,412 shares issued and outstanding at March 31, 2010 and December 31, 2009 | 10,168 | 10,168 | ||||||
| Additional paid in capital - stock and stock equivalents | 54,836,265 | 54,108,685 | ||||||
| Deficit | (50,407,044 | ) | (48,723,286 | ) | ||||
| Common stock reserved for issuance, 135,318 and 5,721 shares at March 31, 2010 and 2009, respectively | 1,134,264 | 34,750 | ||||||
| Deferred stock compensation | (721,367 | ) | (456,500 | ) | ||||
| Total Stockholders' Equity | 4,852,286 | 4,973,817 | ||||||
| Total Liabilities and Stockholders' Equity | $ | 6,428,004 | $ | 7,136,038 | ||||
Lightbridge Corporation
Unaudited Condensed Consolidated Statements of Operations
| Three Months Ended | ||||||||
| March, 31 | ||||||||
| 2010 | 2009 | |||||||
| Revenue: | ||||||||
| Consulting Revenue | $ | 2,399,132 | $ | 2,944,053 | ||||
| Cost of Consulting Services Provided | 1,505,490 | 1,748,518 | ||||||
| Gross Margin | 893,642 | 1,195,535 | ||||||
| Operating Expenses | ||||||||
| General and administrative | 2,372,263 | 2,262,681 | ||||||
| Research and development expenses | 204,743 | 453,805 | ||||||
| Total Operating Expenses | 2,577,006 | 2,716,486 | ||||||
| Operating loss | (1,683,364 | ) | (1,520,951 | ) | ||||
| Other Income and (Expenses) | ||||||||
| Interest income | 152 | 3,028 | ||||||
| Other | (546 | ) | (4,538 | ) | ||||
| Realized gain on marketable securities | 0 | |||||||
| Total Other Income and Expenses | (394 | ) | (1,510 | ) | ||||
| Net loss before income taxes | (1,683,758 | ) | (1,522,461 | ) | ||||
| Income taxes | 0 | 0 | ||||||
| Net loss | $ | (1,683,758 | ) | $ | (1,522,461 | ) | ||
| Net Loss Per Common Share, Basic and diluted | $ | (0.17 | ) | $ | (0.15 | ) | ||
| Weighted Average Number of shares outstanding for the period used to compute per share data - (prior reporting period restated to reflect 1 for 30 reverse stock split) | 10,168,412 | 10,055,580 | ||||||
LIGHTBRIDGE CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2010 | 2009 | |||||||
| Operating Activities: | ||||||||
| Net Loss | $ | (1,683,758 | ) | $ | (1,522,461 | ) | ||
| Adjustments to reconcile net loss from operations to net cash used in operating activities: | ||||||||
| Stock based compensation | 859,576 | 1,272,971 | ||||||
| Depreciation and amortization | 6,951 | 6,004 | ||||||
| Changes in non-cash operating working capital items: | ||||||||
| Accounts receivable - fees and reimburseable project costs | (226,145 | ) | 1,038,592 | |||||
| Prepaid expenses and other current assets | (101,428 | ) | (387,189 | ) | ||||
| Accounts payable, accrued liabilities and other current liabilities | 116,147 | (1,596,398 | ) | |||||
| Net Cash Used In Operating Activities | (1,028,657 | ) | (1,188,481 | ) | ||||
| Investing Activities: | ||||||||
| Patent costs | 0 | (16,402 | ) | |||||
| Net Cash Used In Investing Activities | 0 | (16,402 | ) | |||||
| Financing Activities: | ||||||||
| Net Cash Provided by (Used In) Financing Activities | 0 | 0 | ||||||
| Net Decrease In Cash and Cash Equivalents | (1,028,657 | ) | (1,204,883 | ) | ||||
| Cash and Cash Equivalents, Beginning of Period | 3,028,791 | 5,580,244 | ||||||
| Cash and Cash Equivalents, End of Period | $ | 2,000,134 | $ | 4,375,361 | ||||
| Supplemental Disclosure of Cash Flow Information | ||||||||
| Cash paid during the year: | ||||||||
| Interest paid | $ | 0 | $ | 0 | ||||
| Income taxes paid | $ | 0 | $ | 266,000 | ||||
| Non-Cash Financing Activity | ||||||||
| Grant of Common Stock for Payment of Accrued Liabilities | $ | 703,651 | $ | 0 | ||||