Core Viewpoint - Lightbridge Corporation reported its financial results for Q3 2024, highlighting a significant increase in demand for clean energy, particularly from tech companies investing in nuclear power to meet zero-emission goals [1][2]. Financial Highlights - The working capital position was $25.9 million as of September 30, 2024, with no outstanding debt [3]. - Cash and cash equivalents decreased to $26.6 million from $28.6 million at the end of 2023, a reduction of $2.0 million [4]. - The net loss for Q3 2024 was $2.7 million, compared to a loss of $1.8 million in Q3 2023 [10]. Cash Flows Summary - Cash used in operating activities for the nine months ended September 30, 2024, was $5.7 million, an increase of $1.5 million from $4.2 million in the same period of 2023 [4]. - Cash provided by financing activities decreased to $3.7 million from $4.5 million year-over-year [5]. Balance Sheet Summary - Total assets were $27.6 million, while total liabilities stood at $1.2 million as of September 30, 2024 [6]. - Stockholders' equity decreased to $26.5 million from $28.9 million at the end of 2023 [6]. Operations Summary - General and administrative expenses increased to $1.7 million in Q3 2024 from $1.6 million in Q3 2023, primarily due to higher employee compensation [7]. - Research and development expenses rose significantly to $1.3 million in Q3 2024 from $0.5 million in Q3 2023, driven by increased project costs and employee compensation [8]. Industry Context - The demand for clean energy is being driven by major tech companies investing in nuclear energy projects to achieve climate goals [2]. - Lightbridge is developing advanced nuclear fuel technology aimed at enhancing safety and efficiency in both existing and next-generation reactors [2][13].

Core Insights - Lightbridge Corporation is positioned as a key player in the advanced nuclear fuel technology sector, emphasizing the increasing interest in nuclear energy driven by surging power demand from AI and other carbon-free energy applications [1][2] - The company is developing Lightbridge Fuel™, a next-generation nuclear fuel technology aimed at enhancing reactor safety, economics, and proliferation resistance, which is crucial for the future energy mix [2][3] - Recent investments in nuclear energy from major tech companies like Microsoft, Amazon, and Google are expected to accelerate the adoption of nuclear power, particularly for data centers, leading to a surge in nuclear stock prices [1] Company Developments - Lightbridge has entered into long-term framework agreements with Battelle Energy Alliance, supporting the development of Lightbridge Fuel through the U.S. Department of Energy's initiatives [3] - The company is involved in university-led studies at prestigious institutions such as MIT and Texas A&M University, furthering its research and development efforts [3] - Lightbridge holds an extensive patent portfolio that underpins its innovative fuel technology, and it is included in the Russell Microcap® Index, indicating its market presence [3]

Financial Data and Key Metrics Changes - The company's working capital position was $26.4 million as of June 30, 2024, down from $28.3 million at December 31, 2023 [15] - Total cash and cash equivalents were $27.1 million compared to $26.8 million at December 31, 2023, reflecting a decrease of $1.5 million for the six months ended June 30, 2024 [16] - The net loss for the second quarter ended June 30, 2024, was $2.4 million, compared to $1.7 million for the same period in 2023 [18] Business Line Data and Key Metrics Changes - Total R&D expenses amounted to $0.9 million for the second quarter, an increase of $0.5 million compared to $0.4 million for the same period in 2023, primarily due to increased spending on the INL project [18] - Total G&A expenses were $1.8 million for the second quarter, up from $1.6 million for the same period in 2023 [19] Market Data and Key Metrics Changes - Uranium prices are nearing record highs, indicating a potential expansion in the nuclear market, which could significantly increase the market for Lightbridge Fuel [13] - The global consensus on the necessity of nuclear energy to meet the Paris Agreement's goals is growing, further driving demand for nuclear power [12] Company Strategy and Development Direction - The company aims to develop nuclear fuel that improves economics, enhances nonproliferation, and allows for quick adjustments in power output to complement renewables [6] - The recent passage of the ADVANCE Act is seen as a game changer, aiming to streamline the regulatory review process for advanced nuclear fuels [11] Management's Comments on Operating Environment and Future Outlook - Management highlighted the increasing demand for clean and reliable energy due to the growth of data centers, energy-intensive processes, and electrification of transportation [12] - The company is focused on advancing fuel development and strengthening collaborations with industry, government, and academic partners [13] Other Important Information - The company expects to invest approximately $8.3 million in R&D over the next 12 to 15 months [18] - The company anticipates continued government funding and strategic alliances to support future R&D milestones [17] Q&A Session Summary Question: Can you provide an update on upcoming milestones over the next 12 to 18 months? - The company anticipates milestones including the execution of strategic partnerships at Idaho National Laboratory, a feasibility study for CANDU reactors, and a front-end engineering study for a pilot fuel fabrication facility [20] Question: Regarding the recent ADVANCE Act legislation, how much time could that save on licensing permits? - Management expressed optimism that the ADVANCE Act will expedite the NRC licensing process for advanced nuclear fuel technologies, indicating a prioritization of faster licensing by Congress [21]

Nuclear Fuel Development - Lightbridge Corporation is developing next-generation nuclear fuel, Lightbridge Fuel™, aimed at improving the economics and safety of nuclear power plants[55]. - The company has entered into a FEED study agreement with Centrus Energy for a Lightbridge Pilot Fuel Fabrication Facility, with an estimated total fee of $0.3 million[59]. - A feasibility study for the use of Lightbridge Fuel™ in CANDU reactors is being conducted, with a total fee of approximately $0.2 million expected to be completed in 2024[61]. - Lightbridge anticipates that the initial phase of work with Idaho National Laboratory will culminate in casting and extrusion of unclad fuel material samples, with total cash payments estimated at approximately $4.3 million[67]. - The company expects to begin demonstration of lead test rods in commercial reactors in the 2030s, with initial fuel reload batches anticipated 15-20 years from now[71]. - Lightbridge's metallic fuel is projected to offer significant economic benefits over traditional nuclear fuel due to superior heat transfer properties[56]. - The company has built a significant portfolio of patents and is collaborating with the U.S. Department of Energy's national laboratories for R&D activities[58]. - A $1 million award from the DOE's Nuclear Energy University Program is supporting a study on Lightbridge Fuel™ performance led by Texas A&M University[68]. - The company is exploring ways to shorten the commercialization timeframe for its nuclear fuel technology, including securing access to expanded irradiation test loop capacity[71]. - Lightbridge's ongoing projects include evaluating accident-tolerant fuels in various small modular reactors, with no contractual obligations for revenue from these collaborations[68]. Financial Performance - Total operating expenses for the three months ended June 30, 2024, increased by $0.7 million (35%) to $2.7 million compared to $2.0 million in the same period of 2023[75]. - Research and development (R&D) expenses for the three months ended June 30, 2024, increased by $0.5 million (125%) to $0.9 million compared to $0.4 million in the same period of 2023[78]. - The company projects to invest approximately $8.3 million in R&D of nuclear fuel over the next 12 to 15 months[79]. - Net loss for the three months ended June 30, 2024, was $2.4 million, an increase of $0.7 million (41%) compared to a net loss of $1.7 million in the same period of 2023[75]. - Total R&D expenses for the six months ended June 30, 2024, increased by $1.1 million (138%) to $1.9 million compared to $0.8 million in the same period of 2023[85]. - Cash and cash equivalents as of June 30, 2024, were $27.1 million, a decrease of $1.5 million from $28.6 million at December 31, 2023[89]. - The company expects total expenditures of approximately $14.3 million for the next 12 months, with anticipated negative cash flow from operations[90]. - Other income increased by $0.2 million (40%) for the six months ended June 30, 2024, due to rising interest rates[87]. - General and administrative expenses for the six months ended June 30, 2024, increased by $0.6 million (18%) to $4.0 million compared to $3.4 million in the same period of 2023[82]. - The company raised net proceeds of $2.2 million from the sale of approximately 0.8 million shares of common stock during the six months ended June 30, 2024[89]. - For the six months ended June 30, 2024, net cash used in operating activities increased by $0.7 million to $3.7 million compared to $3.0 million for the same period in 2023, primarily due to increased R&D and administrative expenses[98]. - Cash provided by the ATM facility was $2.2 million for the six months ended June 30, 2024, from the sale of approximately 0.8 million common shares, compared to $2.3 million from approximately 0.5 million shares in 2023[98]. - The company reported a net cash outflow of $1.5 million for the six months ended June 30, 2024, compared to $0.7 million for the same period in 2023[97]. - The net cash provided by financing activities decreased by $0.1 million for the six months ended June 30, 2024, compared to the same period in 2023[98]. Financing and Market Conditions - The company has no debt and has financed operations through the sale of preferred and common stock, with potential future equity investments being uncertain due to adverse market conditions[95]. - The company is seeking new financing sources to support R&D activities and move fuel products to a commercial stage, with no assurance that these sources will be available[96]. - The company is subject to "baby shelf rules," limiting the amount it can raise through public offerings to one-third of its public float, which is currently below $75 million[94]. - The company does not have any off-balance sheet arrangements that could materially affect its financial condition or results[99]. Inflation and Strategic Alliances - The company has not been materially affected by inflation in its business, revenues, or operating results[100]. - The company aims to create strategic alliances to support remaining R&D activities, although forming such alliances may not be feasible[97].

Financial Position - Lightbridge Corporation reported a working capital position of $26.4 million with no debt as of June 30, 2024[2]. - Total assets were reported at $28.0 million, with total liabilities of $0.9 million as of June 30, 2024[4]. - Stockholders' equity decreased to $27.0 million at June 30, 2024, down from $28.9 million at December 31, 2023[4]. Cash Flow - Cash and cash equivalents decreased to $27.1 million for the six months ended June 30, 2024, down from $28.6 million at December 31, 2023, a decrease of $1.5 million[3]. - Cash and cash equivalents at the end of the period were $27,067,039, down from $28,204,016 at the end of the same period in 2023, reflecting a decrease of approximately 4.0%[14]. - The company reported a net decrease in cash and cash equivalents of $1,531,406 for the six months ended June 30, 2024, compared to a decrease of $695,981 in the same period of 2023, indicating a significant increase in cash outflow[14]. Operating Expenses - Operating expenses for the three months ended June 30, 2024, were $2.7 million, compared to $2.0 million for the same period in 2023, reflecting an increase of 35.5%[12]. - Research and development expenses increased to $0.9 million for the three months ended June 30, 2024, from $0.4 million in the same period of 2023, a rise of 127.5%[5]. - Stock-based compensation increased to $841,120 for the six months ended June 30, 2024, from $601,158 in the same period of 2023, marking an increase of about 39.9%[14]. Net Loss - The net loss for the second quarter ended June 30, 2024, was $2.4 million, compared to a net loss of $1.7 million for the same quarter in 2023[6]. - Net loss for the six months ended June 30, 2024, was $5,194,218, compared to a net loss of $3,698,804 for the same period in 2023, representing an increase of approximately 40.4%[13]. - Net cash used in operating activities for the six months ended June 30, 2024, was $3,725,447, compared to $3,010,363 for the same period in 2023, indicating an increase of about 23.7%[14]. Investments and Agreements - Lightbridge Corporation plans to invest approximately $8.3 million in R&D for its nuclear fuel over the next 12 to 15 months[5]. - Lightbridge has entered into two long-term framework agreements with Battelle Energy Alliance LLC to support the development of Lightbridge Fuel[8]. - The ADVANCE Act is expected to facilitate a more efficient regulatory licensing process for advanced nuclear technologies, including Lightbridge Fuel™[1].

Core Insights - Lightbridge Corporation reported its financial results for Q2 2024, highlighting progress in advanced nuclear fuel technology and the impact of the recently passed ADVANCE Act on the industry [1][2]. Financial Highlights - The working capital position at June 30, 2024, was $26.4 million, with no debt [3]. - Cash and cash equivalents decreased to $27.1 million from $28.6 million at the end of 2023, a reduction of $1.5 million [4]. - Operating activities used $3.7 million in cash for the first half of 2024, an increase of $0.7 million compared to the same period in 2023 [4]. - Total assets were $28.0 million, and total liabilities were $0.9 million as of June 30, 2024 [5]. Operations Summary - General and administrative expenses for Q2 2024 were $1.8 million, up from $1.6 million in Q2 2023 [6]. - Research and development expenses increased to $0.9 million in Q2 2024 from $0.4 million in Q2 2023, primarily due to higher project labor costs [7]. - The net loss for Q2 2024 was $2.4 million, compared to a net loss of $1.7 million in Q2 2023 [7]. Legislative Impact - The ADVANCE Act is expected to streamline the regulatory licensing process for advanced nuclear technologies, which is crucial for the deployment of Lightbridge Fuel™ [2]. - The legislation aims to enhance safety and economic competitiveness for existing and next-generation reactors, facilitating quicker market entry for advanced nuclear solutions [2]. Future Projections - The company plans to invest approximately $8.3 million in R&D for its nuclear fuel over the next 12 to 15 months [7].

Core Viewpoint - Lightbridge Corporation is set to announce its financial results for Q2 of fiscal year 2024 on July 31, 2024, and will host a conference call on August 1, 2024, to discuss these results and provide updates on its fuel development activities [1][2]. Company Overview - Lightbridge Corporation (NASDAQ:LTBR) focuses on developing advanced nuclear fuel technology aimed at delivering abundant, zero-emission clean energy and enhancing global energy security [3]. - The company is developing Lightbridge Fuel™, a proprietary next-generation nuclear fuel technology designed for existing light water reactors and pressurized heavy water reactors, which significantly improves reactor safety, economics, and proliferation resistance [3]. - Lightbridge is also working on Lightbridge Fuel for new small modular reactors (SMRs), which will provide similar benefits while enabling load-following capabilities with renewable energy on a zero-carbon electric grid [3]. Recent Developments - Lightbridge has entered into two long-term framework agreements with Battelle Energy Alliance LLC, the operating contractor for the Idaho National Laboratory, which is the U.S.'s leading nuclear energy research and development laboratory [10]. - The company has received support from the DOE's Gateway for Accelerated Innovation in Nuclear program, which has awarded Lightbridge funding for the development of Lightbridge Fuel over the past several years [10]. - Lightbridge is participating in two university-led studies through the DOE Nuclear Energy University Program at the Massachusetts Institute of Technology and Texas A&M University [10]. - The company boasts an extensive worldwide patent portfolio that supports its innovative fuel technology and is included in the Russell Microcap® Index [10].

Investor Relations Contact: Matthew Abenante, IRC Director of Investor Relations Tel: +1 (347) 947-2093 ir@ltbridge.com To receive Lightbridge Corporation updates via e-mail, subscribe at https://www.ltbridge.com/investors/newsevents/email-alerts RESTON, Va., June 25, 2024 (GLOBE NEWSWIRE) -- Lightbridge Corporation ("Lightbridge") (Nasdaq: LTBR), an advanced nuclear fuel technology company, applauds the passage of the ADVANCE Act, or the Accelerating Deployment of Versatile, Advanced Nuclear for Clean Ener ...

Seth Grae, President & CEO of Lightbridge Corporation, commented, "We are thrilled to see the ADVANCE Act pass with such overwhelming support in both the House and the Senate. While the Act does not remove all hurdles facing deployment of advanced nuclear technologies, this landmark legislation marks a significant step forward for the nuclear industry and reinforces the critical role of advanced nuclear technologies in our clean energy future. By streamlining regulatory processes, supporting the development ...

[PART I - FINANCIAL INFORMATION](index=2&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) This section presents the unaudited condensed consolidated financial statements and related disclosures for Lightbridge Corporation [Item 1. Condensed Consolidated Financial Statements (unaudited)](index=2&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(unaudited)) This section presents the unaudited condensed consolidated financial statements for Lightbridge Corporation, including the balance sheets, statements of operations, changes in stockholders' equity, and cash flows for the periods ended March 31, 2024, and December 31, 2023 (or March 31, 2023 for income and cash flow statements), along with detailed notes explaining the company's operations, accounting policies, financial instrument fair values, R&D commitments, and equity activities [Unaudited Condensed Consolidated Balance Sheets](index=2&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) This section presents the company's financial position, detailing assets, liabilities, and stockholders' equity as of March 31, 2024, and December 31, 2023 Unaudited Condensed Consolidated Balance Sheets Summary | Metric | March 31, 2024 | December 31, 2023 | | :-------------------------------- | :------------- | :---------------- | | Cash and cash equivalents | $27,942,421 | $28,598,445 | | Total Current Assets | $28,344,280 | $28,805,508 | | Total Assets | $28,932,770 | $29,397,373 | | Accounts payable and accrued liabilities | $907,421 | $486,326 | | Total Current Liabilities | $907,421 | $486,326 | | Total Stockholders' Equity | $28,025,349 | $28,911,047 | | Total Liabilities and Stockholders' Equity | $28,932,770 | $29,397,373 | - Cash and cash equivalents decreased by **$656,024** from December 31, 2023, to March 31, 2024[9](index=9&type=chunk) - Total Stockholders' Equity decreased by **$885,698** from December 31, 2023, to March 31, 2024[12](index=12&type=chunk) [Unaudited Condensed Consolidated Statements of Operations](index=3&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) This section details the company's revenues, expenses, and net loss for the three months ended March 31, 2024, and March 31, 2023 Unaudited Condensed Consolidated Statements of Operations Summary | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | Change ($) | Change (%) | | :-------------------------------- | :-------------------------------- | :-------------------------------- | :--------- | :--------- | | Revenue | $0 | $0 | $0 | 0% | | General and administrative | $2,157,745 | $1,865,929 | $291,816 | 15.6% | | Research and development | $1,023,823 | $448,044 | $575,779 | 128.5% | | Total Operating Expenses | $3,181,568 | $2,313,973 | $867,595 | 37.5% | | Operating Loss | $(3,181,568) | $(2,282,945) | $(898,623) | 39.4% | | Interest income | $361,984 | $256,365 | $105,619 | 41.2% | | Net Loss | $(2,819,584) | $(2,026,580) | $(792,994) | 39.1% | | Net Loss Per Common Share (Basic and diluted) | $(0.21) | $(0.17) | $(0.04) | 23.5% | | Weighted Average Number of Common Shares Outstanding | 13,491,954 | 11,673,736 | 1,818,218 | 15.6% | - The company reported **no revenue** for both periods[13](index=13&type=chunk) - Research and development expenses significantly increased by **128.5%** year-over-year, reflecting increased R&D activities[13](index=13&type=chunk) [Unaudited Condensed Consolidated Statements of Changes in Stockholders' Equity](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) This section outlines the changes in common stock, additional paid-in capital, accumulated deficit, and total stockholders' equity for the three months ended March 31, 2024 Unaudited Condensed Consolidated Statements of Changes in Stockholders' Equity Details | Metric | Balance - January 1, 2024 | Shares issued - registered offerings - net of offering costs | Shares issued to consultant & directors for services | Stock-based compensation | Net loss for the three months ended March 31, 2024 | Balance - March 31, 2024 | | :-------------------------------- | :------------------------ | :------------------------------------------------- | :------------------------------------------------- | :----------------------- | :------------------------------------------------- | :----------------------- | | Common Stock (Shares) | 13,698,274 | 427,300 | 64,206 | — | — | 14,189,780 | | Common Stock (Amount) | $13,698 | $428 | $64 | — | — | $14,190 | | Additional Paid-in Capital | $181,295,125 | $1,221,554 | $254,936 | $456,904 | — | $183,228,519 | | Accumulated Deficit | $(152,397,776) | — | — | — | $(2,819,584) | $(155,217,360) | | Total Stockholders' Equity | $28,911,047 | $1,221,982 | $255,000 | $456,904 | $(2,819,584) | $28,025,349 | - Total stockholders' equity decreased from **$28.9 million** at January 1, 2024, to **$28.0 million** at March 31, 2024, primarily due to the net loss, partially offset by proceeds from common stock issuances and stock-based compensation[16](index=16&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section presents the cash inflows and outflows from operating, investing, and financing activities for the three months ended March 31, 2024, and March 31, 2023 Unaudited Condensed Consolidated Statements of Cash Flows Summary | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | Change ($) | Change (%) | | :-------------------------------- | :-------------------------------- | :-------------------------------- | :--------- | :--------- | | Net Loss | $(2,819,584) | $(2,026,580) | $(792,994) | 39.1% | | Stock-based compensation | $456,904 | $284,360 | $172,544 | 60.7% | | Net Cash Used in Operating Activities | $(1,878,006) | $(1,579,746) | $(298,260) | 18.9% | | Net Cash Used in Investing Activities | $0 | $0 | $0 | 0% | | Net Cash Provided by Financing Activities | $1,221,982 | $731,052 | $490,930 | 67.2% | | Net Decrease in Cash and Cash Equivalents | $(656,024) | $(848,694) | $192,670 | -22.7% | | Cash and Cash Equivalents, End of Period | $27,942,421 | $28,051,303 | $(108,882) | -0.4% | - Net cash used in operating activities increased by **$0.3 million**, primarily due to increased R&D and G&A expenses[17](index=17&type=chunk)[129](index=129&type=chunk) - Net cash provided by financing activities increased by **$0.5 million**, driven by higher net proceeds from common stock issuances under the ATM facility[17](index=17&type=chunk)[130](index=130&type=chunk)[131](index=131&type=chunk) [Note 1. Nature of Operations, Basis of Presentation, Summary of Significant Accounting Policies and Recent Accounting Pronouncements](index=5&type=section&id=Note%201.%20Nature%20of%20Operations,%20Basis%20of%20Presentation,%20Summary%20of%20Significant%20Accounting%20Policies%20and%20Recent%20Accounting%20Pronouncements) This note describes Lightbridge Corporation's business, the basis of financial statement presentation, significant accounting policies, and the expected impact of recent accounting pronouncements Fair Value of Financial Instruments | Assets | Level I | Level II | Level III | | :------- | :------ | :------- | :-------- | | Treasury Bills | $2.5M | $17.5M | $- | - Lightbridge Corporation is a nuclear fuel technology company focused on developing and commercializing next-generation metallic nuclear fuels for water-cooled reactors[20](index=20&type=chunk) - The company's financial statements are prepared in accordance with SEC rules for Form 10-Q and Regulation S-X, and should be read in conjunction with the 2023 Annual Report on Form 10-K[21](index=21&type=chunk) - The company faces risks including the need for additional funding, competition, regulatory changes, and the ability to achieve R&D milestones[28](index=28&type=chunk)[29](index=29&type=chunk) - Recent accounting pronouncements (ASU 2023-07, ASU 2023-09, ASU 2020-06) are not expected to have a material impact on the company's financial statements upon adoption[30](index=30&type=chunk)[31](index=31&type=chunk)[32](index=32&type=chunk) [Note 2. Net Loss Per Share](index=7&type=section&id=Note%202.%20Net%20Loss%20Per%20Share) This note details the calculation of basic and diluted net loss per share and identifies anti-dilutive securities for the periods presented Anti-Dilutive Securities Outstanding | Security Type | March 31, 2024 | March 31, 2023 | | :-------------- | :------------- | :------------- | | Stock options outstanding | 555,582 | 525,903 | | Restricted stock awards outstanding | 557,688 | 416,316 | | Total Anti-Dilutive Securities | 1,113,270 | 942,219 | - Basic and diluted net loss per share are computed using weighted-average common shares outstanding. Stock options and restricted stock awards were excluded from diluted EPS calculations as they were anti-dilutive due to company losses[35](index=35&type=chunk)[36](index=36&type=chunk) [Note 3. Prepaid Project Costs and Other Long-term Assets](index=7&type=section&id=Note%203.%20Prepaid%20Project%20Costs%20and%20Other%20Long-term%20Assets) This note provides information on advanced payments made for future project work, specifically with Idaho National Laboratory (INL) - The company made advanced payments of **$0.5 million** for future project work with Idaho National Laboratory (INL) as of March 31, 2024, and December 31, 2023, for the development of Lightbridge Fuel™[38](index=38&type=chunk) [Note 4. Accounts Payable and Accrued Liabilities](index=7&type=section&id=Note%204.%20Accounts%20Payable%20and%20Accrued%20Liabilities) This note details the composition and changes in accounts payable and accrued liabilities for the periods presented Accounts Payable and Accrued Liabilities Details | Category | March 31, 2024 (millions) | December 31, 2023 (millions) | | :-------------------------- | :------------------------ | :--------------------------- | | Trade payables | $0.2 | $0.1 | | Accrued legal and consulting expenses | $0.5 | $0.4 | | Accrued bonus | $0.2 | $0.0 | | Total | $0.9 | $0.5 | - Total accounts payable and accrued liabilities increased from **$0.5 million** at December 31, 2023, to **$0.9 million** at March 31, 2024, driven by increases in trade payables, accrued legal/consulting expenses, and accrued bonus[39](index=39&type=chunk) [Note 5. Commitments and Contingencies](index=7&type=section&id=Note%205.%20Commitments%20and%20Contingencies) This note outlines the company's research and development commitments and other contractual obligations Research and Development Commitments | Project | March 31, 2024 (millions) | December 31, 2023 (millions) | | :-------------------------- | :------------------------ | :--------------------------- | | INL Project | $3.1 | $2.9 | | Romania Feasibility Study | $0.1 | $0.2 | | Centrus Energy FEED Study | $0.3 | $0.5 | | Total R&D Commitments | $3.5 | $3.6 | - The INL project commitment increased by **$0.6 million** due to Modification No. 2 to the SPPA, bringing the total estimated cost for work under the 'umbrella' SPPA to **$1.7 million**[42](index=42&type=chunk) - The company has approximately **$0.1 million** in future minimum lease payments for office space in 2024[49](index=49&type=chunk) [Note 6. Research and Development Costs](index=8&type=section&id=Note%206.%20Research%20and%20Development%20Costs) This note provides a breakdown of research and development expenses by project and category for the periods presented Research and Development Expenses by Category | R&D Category | March 31, 2024 (millions) | March 31, 2023 (millions) | | :---------------------------------------- | :------------------------ | :------------------------ | | INL Project | $0.4 | $0.2 | | Romania Feasibility Study | $0.1 | $0.0 | | Centrus Energy FEED Study | $0.2 | $0.0 | | Allocated employee compensation and stock-based compensation expenses | $0.2 | $0.1 | | Other outside R&D expenses | $0.1 | $0.1 | | Total R&D Expenses | $1.0 | $0.4 | - R&D expenses for the INL Project were **$0.4 million** for Q1 2024, up from **$0.2 million** in Q1 2023, supporting irradiation testing and regulatory licensing of Lightbridge Fuel™[50](index=50&type=chunk)[51](index=51&type=chunk) - The Romania Feasibility Study incurred **$0.1 million** in R&D expenses for Q1 2024 to assess Lightbridge Fuel™ compatibility with CANDU reactors[52](index=52&type=chunk) - The Centrus Energy FEED Study for a pilot fuel fabrication facility incurred **$0.2 million** in R&D expenses for Q1 2024[53](index=53&type=chunk) [Note 7. Stockholders' Equity and Stock-Based Compensation](index=9&type=section&id=Note%207.%20Stockholders'%20Equity%20and%20Stock-Based%20Compensation) This note details changes in stockholders' equity, common shares outstanding, stock options, and stock-based compensation expenses Common Stock and Equivalents Outstanding | Metric | March 31, 2024 | December 31, 2023 | | :-------------------------------- | :------------- | :---------------- | | Common shares outstanding | 14,189,780 | 13,698,274 | | Stock options outstanding | 555,582 | 510,787 | | Total common stock and equivalents | 14,745,362 | 14,209,061 | - The company sold **427,300 shares** under its At-the-Market (ATM) offering for net proceeds of **$1.2 million** during Q1 2024, compared to **169,978 shares** for **$0.7 million** in Q1 2023[60](index=60&type=chunk) - Total stock-based compensation expense was **$0.5 million** for Q1 2024, up from **$0.3 million** in Q1 2023, with **$0.4 million** allocated to G&A and **$0.1 million** to R&D in Q1 2024[69](index=69&type=chunk) - As of March 31, 2024, total unrecognized compensation cost related to restricted stock units was **$2.2 million**, to be recognized over a weighted-average vesting period of **1.9 years**[67](index=67&type=chunk) [Note 8. Subsequent Events](index=11&type=section&id=Note%208.%20Subsequent%20Events) This note discloses significant events that occurred after the balance sheet date, including amendments to the ATM offering and the equity incentive plan - On May 8, 2024, the ATM equity offering sales agreement was amended to update the shelf registration statement and reduce the commission rate to Stifel from **4.0% to 3.0%**[71](index=71&type=chunk) - From April 1, 2024, to May 10, 2024, approximately **0.2 million shares** were sold under the ATM, generating **$0.7 million** in net proceeds[72](index=72&type=chunk) - The 2020 Equity Incentive Plan was amended on February 27, 2024, to increase authorized shares by **700,000** to **2,500,000**, approved by stockholders on April 19, 2024[73](index=73&type=chunk) [Forward-Looking Statements](index=11&type=section&id=Forward-Looking%20Statements) This section outlines the forward-looking statements contained in the report, identifying key areas such as market growth, financial projections, operational plans, and the commercialization timeline for Lightbridge Fuel™, while also cautioning readers about inherent risks and uncertainties that could cause actual results to differ materially from these statements, emphasizing that such statements are not guarantees of future performance - Forward-looking statements cover market growth, demand for nuclear fuel technology, sales, earnings, revenue, management plans, future economic conditions, and financing/liquidity[74](index=74&type=chunk)[76](index=76&type=chunk) - Key risks include the ability to commercialize nuclear fuel technology, dependence on strategic partners, funding future operations, market demand, competition, regulatory changes, and intellectual property development[75](index=75&type=chunk)[76](index=76&type=chunk) - The company assumes no obligation to update these forward-looking statements after the filing date, except as required by law[75](index=75&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=12&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on Lightbridge Corporation's financial condition and results of operations for the three months ended March 31, 2024, compared to the prior year, detailing the company's business overview, recent R&D developments, operational performance, and liquidity outlook, highlighting increased R&D expenses and ongoing reliance on equity financing for future development [Overview of Our Business and Development of Lightbridge Fuel™](index=13&type=section&id=Overview%20of%20Our%20Business%20and%20Development%20of%20Lightbridge%20Fuel%E2%84%A2) This section provides an overview of Lightbridge's core business, focusing on the development and commercialization of its next-generation metallic nuclear fuel technology - Lightbridge is developing next-generation metallic nuclear fuel for water-cooled reactors, aiming to improve economics, safety, and proliferation resistance, and enable growth in the nuclear power industry[80](index=80&type=chunk)[82](index=82&type=chunk) - Recent developments include a FEED study with Centrus Energy for a Lightbridge Pilot Fuel Fabrication Facility, a feasibility study in Romania for CANDU reactors, and ongoing R&D agreements with Idaho National Laboratory (INL)[85](index=85&type=chunk)[88](index=88&type=chunk)[89](index=89&type=chunk) - The company successfully demonstrated extrusion of a depleted uranium-zirconium alloy rod at INL, a key step before producing enriched uranium fuel samples for irradiation testing[94](index=94&type=chunk) - Lightbridge anticipates demonstrating lead test rods/assemblies in commercial reactors in the 2030s, with initial fuel reload batches expected **15-20 years** from now[101](index=101&type=chunk) [Critical Accounting Estimates](index=15&type=section&id=Critical%20Accounting%20Estimates) This section discusses the company's critical accounting policies and estimates, noting any significant changes during the reporting period - There have been **no significant changes** in the company's critical accounting policies and estimates during the three months ended March 31, 2024[103](index=103&type=chunk) [Operations Review](index=16&type=section&id=Operations%20Review) This section analyzes the company's operational performance, including a detailed review of general and administrative, research and development expenses, and other income Operations Review Summary | Metric | March 31, 2024 (millions) | March 31, 2023 (millions) | Change ($M) | Change (%) | | :-------------------------- | :------------------------ | :------------------------ | :---------- | :--------- | | General and administrative | $2.2 | $1.9 | $0.3 | 16% | | Research and development | $1.0 | $0.4 | $0.6 | 150% | | Total Operating Expenses | $3.2 | $2.3 | $0.9 | 39% | | Operating Loss | $(3.2) | $(2.3) | $(0.9) | 39% | | Other Income | $0.4 | $0.3 | $0.1 | 33% | | Net loss before Income Taxes | $(2.8) | $(2.0) | $(0.8) | 40% | | Net Loss | $(2.8) | $(2.0) | $(0.8) | 40% | - General and administrative expenses increased by **$0.3 million**, primarily due to higher employee compensation, benefits, directors' fees, postage, recruitment, and stock-based compensation[109](index=109&type=chunk) - Research and development expenses increased by **$0.6 million**, driven by increased R&D activities related to the INL project, Romania Feasibility Study, Centrus Energy FEED Study, and allocated employee compensation[111](index=111&type=chunk)[112](index=112&type=chunk) - The company projects investing approximately **$8 million to $9 million** in R&D over the next **12 to 15 months**[113](index=113&type=chunk) - Other income increased by **$0.1 million** due to rising interest rates, resulting in higher interest income from treasury bills and bank savings[115](index=115&type=chunk) [Liquidity, Capital Resources, and Financial Position](index=17&type=section&id=Liquidity,%20Capital%20Resources,%20and%20Financial%20Position) This section discusses Lightbridge Corporation's cash position, capital resources, and ability to fund future operations and research and development activities - As of March 31, 2024, the company had **$27.9 million** in cash and cash equivalents, a decrease of **$0.7 million** from December 31, 2023[117](index=117&type=chunk) - The company expects to have sufficient funds for the next **12 months** based on current operating expenses and cash resources, but projects continued negative cash flows from operations[116](index=116&type=chunk)[117](index=117&type=chunk)[118](index=118&type=chunk) - Long-term R&D cash requirements are estimated at an average of **$10.0 million per year** over the next **10-15 years**, necessitating direct or indirect funding from government, strategic partners, or other third-party sources[116](index=116&type=chunk)[120](index=120&type=chunk) - The company utilizes its ATM facility for financing, having raised **$1.2 million** in Q1 2024, and has a new shelf registration statement for up to **$6.6 million** available through the ATM[119](index=119&type=chunk)[121](index=121&type=chunk) - The company is subject to 'baby shelf rules' due to its public float being less than **$75.0 million**, limiting the amount it can raise through primary public offerings to **one-third** of its public float in any twelve-month period[122](index=122&type=chunk) - The company has **no off-balance sheet arrangements** or material impact from inflation[132](index=132&type=chunk)[133](index=133&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=19&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Lightbridge Corporation, as a 'smaller reporting company,' is exempt from providing the detailed quantitative and qualitative disclosures about market risk typically required by this Item - The company is not required to provide information on market risk disclosures as it qualifies as a 'smaller reporting company' under Rule 12b-2 of the Exchange Act[134](index=134&type=chunk) [Item 4. Controls and Procedures](index=19&type=section&id=Item%204.%20Controls%20and%20Procedures) This section addresses the effectiveness of Lightbridge Corporation's disclosure controls and procedures and internal control over financial reporting, where management concluded that disclosure controls were not effective as of March 31, 2024, due to a previously identified material weakness related to information technology general controls (ITGC) over logical access and segregation of duties, with remediation efforts ongoing - Disclosure controls and procedures were deemed **not effective** as of March 31, 2024[136](index=136&type=chunk) - A material weakness exists in internal control over financial reporting related to the design of information technology general controls (ITGC) over logical access to key financial reporting systems, leading to segregation of duties conflicts[137](index=137&type=chunk) - Remediation efforts, including enhancing logical access controls and improving internal documentation and monitoring, began in Q4 2023 and are ongoing[139](index=139&type=chunk) - No restatements of prior period financial statements or changes in previously released financial results were required due to the material weakness[137](index=137&type=chunk) [PART II - OTHER INFORMATION](index=20&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) This section provides additional information not covered in the financial statements, including legal proceedings, risk factors, equity sales, and other disclosures [Item 1. Legal Proceedings](index=20&type=section&id=Item%201.%20Legal%20Proceedings) Lightbridge Corporation is not currently aware of any legal proceedings or claims that are expected to have a material adverse effect on its business, financial condition, or results of operations - The company is not currently involved in any legal proceedings or claims that are believed to have a material adverse effect on its business[141](index=141&type=chunk) [Item 1A. Risk Factors](index=20&type=section&id=Item%201A.%20Risk%20Factors) This section highlights new or updated risk factors, specifically focusing on the risks associated with acquisition activities, including challenges in integration, failure to realize anticipated benefits, retention of key personnel, and potential financial strain or dilution to stockholders - No other material changes to risk factors were reported, apart from those related to acquisition activity[142](index=142&type=chunk) - Acquisition activity presents risks such as integration challenges, failure to achieve anticipated benefits, difficulties in reconciling business practices, retention of key personnel, and potential unidentified liabilities[143](index=143&type=chunk)[144](index=144&type=chunk) - Acquisitions may lead to expenditure of cash, amortization of expenses, and potential dilution to existing stockholders if significant financing through equity issuance is required[145](index=145&type=chunk)[146](index=146&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=21&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Lightbridge Corporation reported no unregistered sales of equity securities or use of proceeds during the period - There were **no unregistered sales** of equity securities or use of proceeds to report[147](index=147&type=chunk) [Item 3. Defaults Upon Senior Securities](index=21&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This item is not applicable to Lightbridge Corporation for the reporting period - This item is **not applicable**[147](index=147&type=chunk) [Item 4. Mine Safety Disclosures](index=21&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to Lightbridge Corporation for the reporting period - This item is **not applicable**[147](index=147&type=chunk) [Item 5. Other Information](index=21&type=section&id=Item%205.%20Other%20Information) This section discloses that no director or officer adopted or terminated Rule 10b5-1 trading arrangements during the quarter, and details an amendment to the At-the-Market Equity Offering Sales Agreement, updating the shelf registration statement and reducing the sales agent's commission rate - No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the three months ended March 31, 2024[147](index=147&type=chunk) - The At-the-Market Equity Offering Sales Agreement was amended on May 8, 2024, to reference a new effective shelf registration statement and reduce the commission rate to Stifel from **4.0% to 3.0%**[148](index=148&type=chunk) [Item 6. Exhibits](index=21&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of the Quarterly Report on Form 10-Q, including amendments to agreements, legal opinions, consents, certifications, and interactive data files - The exhibit index includes Amendment No. 2 to the At-the-Market Equity Offering Sales Agreement, legal opinions, certifications, and interactive data files[153](index=153&type=chunk)[158](index=158&type=chunk) [SIGNATURES](index=22&type=section&id=SIGNATURES) The report is duly signed on behalf of Lightbridge Corporation by its President, Chief Executive Officer, and Director (Principal Executive Officer), Seth Grae, and its Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer), Larry Goldman, as of May 10, 2024 - The report was signed by Seth Grae, President, CEO, and Director, and Larry Goldman, CFO, on May 10, 2024[158](index=158&type=chunk)