Lightbridge Corp (NASDAQ:LTBR) Q1 2022 Earnings Conference Call May 12, 2022 4:00 PM ET Company Participants Matthew Abenante - Director, IR Seth Grae - President, CEO & Executive Director Andrey Mushakov - EVP, Nuclear Operations Lawrence Goldman - CFO, Treasurer & Corporate Secretary Sherrie Holloway - Controller James Fornof - VP, Nuclear Program Management Conference Call Participants Operator Good day, ladies and gentlemen, thank you for standing by, and welcome to the Lightbridge Corporation Business ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: March 31, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to _____________ Commission File Number: 001-34487 LIGHTBRIDGE CORPORATION (Exact name of registrant as specified in its charter) (State or other ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-34487 LIGHTBRIDGE CORPORATION (Exact name of registrant as specified in its charter) Nevada 91-1975651 (I.R.S. Employer Identification No.) (State or other jurisdicti ...

Lightbridge Corp (NASDAQ:LTBR) Q4 2021 Earnings Conference Call March 10, 2022 11:00 AM ET Company Participants Matthew Abenante - Director, IR Seth Grae - President, CEO & Executive Director Andrey Mushakov - EVP, Nuclear Operations James Fornof - VP, Program Management Conference Call Participants Operator Thank you for standing by, and welcome to the Lightbridge Corporation Business Update Conference Call. Please note that today's call is being recorded. It is now my pleasure to introduce Matthew Abena ...

Financial Data and Key Metrics Changes - The company's working capital position at September 30, 2021, was $15.4 million, down from $17.1 million at December 31, 2020 [27] - Total assets were reported at $16.6 million, with total liabilities at $1.1 million as of September 30, 2021 [27] - Total cash used in operating activities increased to $8.8 million for the nine months ended September 30, 2021, compared to $5.6 million for the same period in 2020 [28] - Net loss for Q3 2021 was $1.9 million, an improvement from a net loss of $3.1 million in Q3 2020 [33] Business Line Data and Key Metrics Changes - Total R&D expenses increased by approximately $0.2 million to $0.4 million for Q3 2021, compared to $0.2 million in Q3 2020 [33] - Total G&A expenses decreased by approximately $1.1 million to $1.7 million for Q3 2021, down from $2.8 million in Q3 2020 [34] Market Data and Key Metrics Changes - Uranium spot prices surged from $30 per pound in August to $50 per pound in September 2021, currently settling around $43 per pound [37] - The International Energy Agency stated that a significant expansion in global nuclear capacity is essential for achieving Net Zero emissions [24] Company Strategy and Development Direction - The company is focused on developing its fuel to improve the economics and safety of nuclear power plants, including large reactors and small modular reactors [8] - Lightbridge Corporation is expanding its patent portfolio to support the commercialization of Lightbridge Fuel [10] - The company aims to seek additional funding from the Department of Energy and establish strategic alliances for future R&D milestones [32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the increasing recognition of nuclear energy's role in meeting energy needs and reducing carbon emissions [20] - The company noted that the private sector is taking a leading role in shaping energy policy, with over 1,600 companies committing to Net Zero [21] - The U.S. Congress is considering a tax credit for nuclear power, which would significantly support existing reactors [39] Other Important Information - The company completed work under the U.S. Department of Energy's GAIN voucher program, collaborating with Idaho National Laboratory [12] - A new board committee dedicated to environmental, social, and governance oversight was formed, reflecting the company's commitment to ESG practices [11] Q&A Session Summary Question: What is driving the recent surge in uranium prices? - The surge is attributed to lower global uranium production due to COVID-19, record buying by producers, and reduced Russian export limits [37] Question: Any updates on additional test loops at the Advanced Test Reactor? - The Advanced Test Reactor is undergoing a core internals change, expected to run until mid-2022, with potential funding for new flow loops being explored [40][41] Question: How does Lightbridge Fuel compare to the TRISO approach? - Lightbridge Fuel offers operational flexibility for water-cooled reactors, while TRISO is better suited for high-temperature coolant conditions [42] Question: Are small modular reactor companies aware of Lightbridge Fuel's progress? - The company expects that SMR designs will implement Lightbridge Fuel due to its safety and economic advantages [46]

SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: September 30, 2021 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to _____________ Commission File Number: 001-34487 LIGHTBRIDGE CORPORATION (Exact name of registrant as specified in its charter) (State or other jurisdicti ...

® Advanced Nuclear Fuel Technologies to impact the world's climate and energy problems soon enough to make a difference NASDAQ : LTBR August 2021 Safe Harbor Statement With the exception of historical matters, the matters discussed in this presentation are forwardlooking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the timing and outcome of research and development activities and other steps to commercialize Lightbridge Fuel, future de ...

PART I – FINANCIAL INFORMATION This section presents Lightbridge Corporation's unaudited condensed consolidated financial statements and management's analysis for the period ended June 30, 2021 [Item 1. Financial Statements (unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) This section presents Lightbridge Corporation's unaudited condensed consolidated financial statements and related notes for the period ended June 30, 2021 [Unaudited Condensed Consolidated Balance Sheets](index=2&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) This statement provides a snapshot of Lightbridge Corporation's financial position as of June 30, 2021 | Metric | June 30, 2021 | December 31, 2020 | | :-------------------------------- | :-------------- | :---------------- | | Cash and cash equivalents | $13,855,982 | $21,531,665 | | Total Current Assets | $15,030,443 | $21,704,125 | | Total Assets | $15,130,660 | $21,789,687 | | Total Current Liabilities | $1,214,095 | $4,582,130 | | Total Stockholders' Equity | $13,916,565 | $17,207,557 | [Unaudited Condensed Consolidated Statements of Operations](index=3&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) This statement details Lightbridge Corporation's revenues, expenses, and net loss for the periods ended June 30, 2021 | Metric | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $— | $— | $— | $— | | Total Operating Expenses | $1,789,213 | $2,144,443 | $3,941,523 | $4,471,021 | | Total Other Operating Income | $177,794 | $— | $281,113 | $— | | Operating Loss | $(1,611,419) | $(2,144,443) | $(3,660,410) | $(4,471,021) | | Net Loss | $(1,610,097) | $(2,132,106) | $(3,622,085) | $(4,396,192) | | Net Loss Per Common Share (Basic and Diluted) | $(0.27) | $(0.66) | $(0.61) | $(1.40) | [Unaudited Condensed Consolidated Statements of Cash Flows](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This statement outlines Lightbridge Corporation's cash flows from operating, investing, and financing activities for the six months ended June 30, 2021 | Metric | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net Cash Used in Operating Activities | $(7,661,028) | $(3,535,814) | | Net Cash Used in Investing Activities | $(14,655) | $(69,872) | | Net Cash Provided by Financing Activities | $— | $2,703,010 | | Net Decrease in Cash and Cash Equivalents | $(7,675,683) | $(902,676) | | Cash and Cash Equivalents, End of Period | $13,855,982 | $17,056,313 | [Unaudited Condensed Consolidated Statement of Changes in Stockholders' Equity](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Stockholders'%20Equity) This statement tracks changes in Lightbridge Corporation's stockholders' equity for the period ended June 30, 2021 - Total Stockholders' Equity decreased from **$17,207,557** at January 1, 2021, to **$13,916,565** at June 30, 2021, primarily due to a net loss of **$(3,622,085)** for the six months ended June 30, 2021, partially offset by stock-based compensation and shares issued for services[14](index=14&type=chunk)[15](index=15&type=chunk) - Common stock shares outstanding increased from **6,567,110** at January 1, 2021, to **6,595,503** at June 30, 2021, driven by shares issued to consultants and directors for services and conversion of preferred shares[14](index=14&type=chunk)[15](index=15&type=chunk) [Notes to Condensed Consolidated Financial Statements (unaudited)](index=6&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(unaudited)) These notes provide detailed explanations of Lightbridge Corporation's accounting policies, estimates, and financial disclosures [Note 1. Basis of Presentation, Summary of Significant Accounting Policies, and Nature of Operations](index=6&type=section&id=Note%201.%20Basis%20of%20Presentation,%20Summary%20of%20Significant%20Accounting%20Policies,%20and%20Nature%20of%20Operations) This note describes the basis of financial statement presentation, key accounting policies, and going concern considerations - The Company's available working capital at June 30, 2021, does not exceed its anticipated expenditures through Q2 2022, raising substantial doubt about its ability to continue as a going concern for the next 12 months. Management plans to raise additional capital through equity issuances, convertible debt, new funding relationships, and government support[20](index=20&type=chunk)[21](index=21&type=chunk)[22](index=22&type=chunk) - Grant income of approximately **$0.1 million** and **$0.2 million** was recognized for the three and six months ended June 30, 2021, respectively, with no grant income in the prior year periods. This income is recognized as related costs are incurred[32](index=32&type=chunk)[33](index=33&type=chunk) - Beginning January 1, 2021, patent filing and legal fees are expensed due to uncertainties in fuel development timelines and commercialization, whereas previously they were capitalized. The carrying value of patents on the balance sheet is **$0** as of June 30, 2021[34](index=34&type=chunk)[35](index=35&type=chunk) [Note 2. Net Loss Per Share](index=9&type=section&id=Note%202.%20Net%20Loss%20Per%20Share) This note details the calculation of basic and diluted net loss per common share, including anti-dilutive securities | Metric | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss attributable to common stockholders | $(1,801,818) | $(2,315,638) | $(4,002,729) | $(4,759,952) | | Weighted-average common shares outstanding | 6,595,483 | 3,486,566 | 6,592,454 | 3,390,782 | | Basic and Diluted Net Loss Per Share | $(0.27) | $(0.66) | $(0.61) | $(1.40) | - Outstanding securities totaling **1,215,036** (warrants, stock options, RSUs, convertible preferred stock) for the three and six months ended June 30, 2021, were excluded from diluted EPS computation as they were anti-dilutive due to the Company's losses[48](index=48&type=chunk) [Note 3. Accounts Payable and Accrued Liabilities](index=10&type=section&id=Note%203.%20Accounts%20Payable%20and%20Accrued%20Liabilities) This note provides a breakdown of Lightbridge Corporation's accounts payable and various accrued liabilities | Category | June 30, 2021 | December 31, 2020 | | :------------------------------ | :------------ | :---------------- | | Trade payables | $65,000 | $233,000 | | Accrued bonuses | $340,000 | $— | | Accrued legal and consulting expenses | $128,000 | $146,000 | | Accrued expenses | $6,000 | $3,000 | | **Total** | **$539,000** | **$382,000** | [Note 4. Commitments and Contingencies](index=11&type=section&id=Note%204.%20Commitments%20and%20Contingencies) This note outlines Lightbridge Corporation's significant commitments and contingent liabilities, including legal settlements - The Company settled arbitration with Framatome SAS and Framatome Inc. on February 11, 2021, dissolving their joint venture, Enfission, LLC. Lightbridge paid approximately **$4.2 million** for outstanding invoices and expects a **$110,000** distribution from the dissolution[52](index=52&type=chunk) - A mediation settlement was reached on May 13, 2021, with a former CFO for approximately **$675,000**, which will be reimbursed by the Company's insurers. The settlement was approved by the OALJ on July 22, 2021[53](index=53&type=chunk) [Note 5. Research and Development Costs](index=11&type=section&id=Note%205.%20Research%20and%20Development%20Costs) This note details Lightbridge Corporation's research and development expenditures and grant income for fuel development - The Company was awarded a GAIN voucher from the DOE in 2019 for Lightbridge Fuel™ development with Idaho National Laboratory (INL), with work completed by INL totaling approximately **$0.1 million** and **$0.2 million** for the three and six months ended June 30, 2021, respectively, recorded as grant income[55](index=55&type=chunk)[56](index=56&type=chunk) - A second GAIN voucher was awarded on March 25, 2021, for Lightbridge Fuel™ casting process demonstration with Pacific Northwest National Laboratory (PNNL), with a total project value of approximately **$663,000**, three-quarters funded by DOE[57](index=57&type=chunk) [Note 6. Stockholders' Equity and Stock-Based Compensation](index=12&type=section&id=Note%206.%20Stockholders'%20Equity%20and%20Stock-Based%20Compensation) This note provides information on changes in stockholders' equity, outstanding securities, and stock-based compensation - Shareholders approved increasing authorized common stock to **13,500,000** shares and shares available under the 2020 Omnibus Incentive Plan to **650,000** shares on June 28, 2021[58](index=58&type=chunk) | Security Type | June 30, 2021 | December 31, 2020 | | :-------------------------------- | :------------ | :---------------- | | Common shares outstanding | 6,595,503 | 6,567,110 | | Warrants outstanding | 45,577 | 70,361 | | Stock options outstanding | 563,734 | 515,847 | | Restricted stock units (RSUs) outstanding | 243,800 | 243,800 | | Series A convertible preferred stock (common share equivalent) | 80,235 | 79,303 | | Series B convertible preferred stock (common share equivalent) | 281,690 | 272,084 | | **Total Common Stock and Equivalents** | **7,810,539** | **7,748,505** | - No ATM sales occurred during the six months ended June 30, 2021, compared to approximately **0.5 million** shares sold for **$2.7 million** in the prior year period[62](index=62&type=chunk) - Total stock-based compensation expense increased significantly to **$186,335** for the three months ended June 30, 2021, from **$6,085** in the prior year, and to **$246,403** for the six months ended June 30, 2021, from **$12,170** in the prior year[86](index=86&type=chunk) [Note 7 – Subsequent Events](index=17&type=section&id=Note%207%20%E2%80%93%20Subsequent%20Events) This note discloses significant events after the balance sheet date, including legal settlements and new research agreements - A mediation settlement was finalized on July 13, 2021, and approved by the OALJ on July 22, 2021, for approximately **$675,000**, to be reimbursed by insurers[93](index=93&type=chunk) - A Cooperative Research and Development Agreement (CRADA) with PNNL was executed on July 14, 2021, for a project valued at approximately **$663,000**, with three-quarters funded by DOE, anticipated to commence in Q3 2021[94](index=94&type=chunk) [Forward - Looking Statements](index=17&type=section&id=Forward%20-%20Looking%20Statements) This section highlights inherent uncertainties and risks associated with forward-looking statements regarding future performance - The report contains forward-looking statements regarding market growth, demand for nuclear fuel technology, financial projections, management plans, future financings, and liquidity, which are subject to risks and uncertainties[96](index=96&type=chunk)[99](index=99&type=chunk) - Key risks include the ability to commercialize nuclear fuel, dependence on strategic partners, funding R&D costs, demand for nuclear reactors, competition, availability of test reactors, increased metallization costs, impact of COVID-19, public perception of nuclear energy, and changes in regulations[99](index=99&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&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's financial condition and operational results, including liquidity challenges [OVERVIEW OF OUR BUSINESS](index=19&type=section&id=OVERVIEW%20OF%20OUR%20BUSINESS) This section provides an overview of Lightbridge's core business, focusing on next-generation nuclear fuel development - Lightbridge is developing next-generation metallic nuclear fuel to improve economics, safety, and proliferation resistance in existing and new nuclear reactors, including Small Modular Reactors (SMRs), with potential for hydrogen production[103](index=103&type=chunk)[104](index=104&type=chunk)[105](index=105&type=chunk) - Recent developments include successful demonstration of manufacturing three-lobe, six-foot rods using surrogate materials, two GAIN vouchers from DOE for fuel development with INL and PNNL, and expansion of the patent portfolio with three new patents in 2021[112](index=112&type=chunk) - The COVID-19 pandemic has reduced R&D expenses but increased general and administrative expenses due to severance payments. The ultimate impact on future operations, financial condition, and liquidity remains uncertain[110](index=110&type=chunk)[111](index=111&type=chunk)[113](index=113&type=chunk) - The lack of sufficient PWR water test loops in the Advanced Test Reactor (ATR) at INL could extend fuel development timelines to **15-20 years** and substantially increase costs, making it unfeasible for Lightbridge to fund independently[117](index=117&type=chunk)[118](index=118&type=chunk) [CRITICAL ACCOUNTING POLICIES AND ESTIMATES](index=21&type=section&id=CRITICAL%20ACCOUNTING%20POLICIES%20AND%20ESTIMATES) This section discusses the company's critical accounting policies and estimates, noting no significant changes - There have been no significant changes in the Company's critical accounting policies and estimates during the six months ended June 30, 2021[120](index=120&type=chunk) [OPERATIONS REVIEW](index=22&type=section&id=OPERATIONS%20REVIEW) This section reviews Lightbridge Corporation's consolidated operational results, analyzing key expense categories for the reporting periods [Condensed Consolidated Results of Operations – Three Months Ended June 30, 2021 and 2020](index=22&type=section&id=Condensed%20Consolidated%20Results%20of%20Operations%20%E2%80%93%20Three%20Months%20Ended%20June%2030,%202021%20and%202020) This section presents a comparative analysis of Lightbridge Corporation's operating results for the three months ended June 30, 2021 and 2020 | Metric | June 30, 2021 | June 30, 2020 | Change $ | Change % | | :-------------------------------- | :------------ | :------------ | :--------- | :------- | | General and administrative expenses | $1,515,899 | $2,028,667 | $(512,768) | (25)% | | Research and development expenses | $273,314 | $115,776 | $157,538 | 136% | | Total Operating Expenses | $1,789,213 | $2,144,443 | $(355,230) | (17)% | | Distribution from joint venture | $110,000 | $— | $110,000 | —% | | Grant income | $67,794 | $— | $67,794 | —% | | Total Operating Loss | $(1,611,419) | $(2,144,443) | $(533,024) | (25)% | | Net Loss | $(1,610,097) | $(2,132,106) | $(522,009) | (24)% | - General and administrative expenses decreased by **$0.5 million** (25%) due to lower professional fees (Framatome arbitration), reduced patent expense, and decreased employee compensation, partially offset by higher insurance and consulting fees[126](index=126&type=chunk) - Research and development expenses increased by **$0.2 million** (136%) due to increased outside R&D work with DOE's National Laboratories related to the GAIN voucher[128](index=128&type=chunk) [Condensed Consolidated Results of Operations – Six Months Ended June 30, 2021 and 2020](index=23&type=section&id=Condensed%20Consolidated%20Results%20of%20Operations%20%E2%80%93%20Six%20Months%20Ended%20June%2030,%202021%20and%202020) This section presents a comparative analysis of Lightbridge Corporation's operating results for the six months ended June 30, 2021 and 2020 | Metric | June 30, 2021 | June 30, 2020 | Change $ | Change % | | :-------------------------------- | :------------ | :------------ | :--------- | :------- | | General and administrative expenses | $3,298,759 | $3,965,421 | $(666,662) | (17)% | | Research and development expenses | $642,764 | $505,600 | $137,164 | 27% | | Total Operating Expenses | $3,941,523 | $4,471,021 | $(529,498) | (12)% | | Distribution from joint venture | $110,000 | $— | $110,000 | —% | | Grant income | $171,113 | $— | $171,113 | —% | | Total Operating Loss | $(3,660,410) | $(4,471,021) | $(810,611) | (18)% | | Net Loss | $(3,622,085) | $(4,396,192) | $(774,107) | (18)% | - General and administrative expenses decreased by **$0.7 million** (17%) due to lower professional fees (Framatome arbitration), reduced patent expense, and decreased employee compensation (severance payments in 2020), partially offset by higher insurance and consulting fees[133](index=133&type=chunk) - Research and development expenses increased by **$0.1 million** (27%) due to increased outside R&D work with DOE's National Laboratories related to the GAIN voucher and higher patent expense, partially offset by decreased employee compensation[134](index=134&type=chunk) [LIQUIDITY, CAPITAL RESOURCES AND FINANCIAL POSITION](index=24&type=section&id=LIQUIDITY,%20CAPITAL%20RESOURCES%20AND%20FINANCIAL%20POSITION) This section assesses Lightbridge Corporation's cash position, capital resources, and financial outlook, including going concern - Cash and cash equivalents decreased by approximately **$7.7 million** to **$13.8 million** at June 30, 2021, from **$21.5 million** at December 31, 2020. Net cash used in operating activities for the six months ended June 30, 2021, was approximately **$7.7 million**[140](index=140&type=chunk) - The Company projects continued negative operating cash flows, averaging approximately **$0.8 million** per month, for total expected expenditures of **$9 million to $10 million** over the next 12 to 15 months, exceeding current available working capital[141](index=141&type=chunk) - Substantial doubt exists about the Company's ability to continue as a going concern for the next 12 months due to insufficient financial resources for current and long-term fuel development costs and corporate overhead[145](index=145&type=chunk) - Primary liquidity sources include potential equity issuances (including ATM financing under an effective Form S-3 for up to **$75 million**, subject to limitations), U.S. government support, and strategic alliances. The ability to raise capital is subject to market conditions and other factors like COVID-19[146](index=146&type=chunk)[147](index=147&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=25&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This item states that quantitative and qualitative disclosures about market risk are not required for the Company - Quantitative and Qualitative Disclosures About Market Risk are not required for Lightbridge Corporation[150](index=150&type=chunk) [Item 4. Controls and Procedures](index=25&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the Company's disclosure controls were effective and reported no material changes in internal control - The Company's disclosure controls and procedures were effective as of June 30, 2021, providing reasonable assurance that required information is recorded, processed, summarized, and reported timely[151](index=151&type=chunk) - There were no material changes in the Company's internal control over financial reporting during the second quarter of 2021[154](index=154&type=chunk) PART II – OTHER INFORMATION This section provides additional information not covered in financial statements, including legal proceedings and corporate governance [Item 1. Legal Proceedings](index=26&type=section&id=Item%201.%20Legal%20Proceedings) The Company may be involved in various lawsuits and legal proceedings in the ordinary course of business - The Company is subject to various lawsuits and legal proceedings that arise in the ordinary course of business, with further details available in Note 4, Commitments and Contingencies[156](index=156&type=chunk) [Item 1A. Risk Factors](index=26&type=section&id=Item%201A.%20Risk%20Factors) There have been no new material changes to the Company's risk factors since those disclosed in the 2020 Annual Report - No material changes to the Company's risk factors have occurred since those disclosed in the 2020 Annual Report on Form 10-K[157](index=157&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=26&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The Company 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[158](index=158&type=chunk) [Item 3. Defaults Upon Senior Securities](index=26&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This item is not applicable to the Company for the reporting period - This item is not applicable[158](index=158&type=chunk) [Item 4. Mine Safety Disclosures](index=26&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the Company for the reporting period - This item is not applicable[158](index=158&type=chunk) [Item 5. Other Information](index=26&type=section&id=Item%205.%20Other%20Information) Ms. Kathleen Kennedy Townsend resigned from the Company's Board of Directors, effective August 30, 2021 - Ms. Kathleen Kennedy Townsend resigned as a director from the Company's Board of Directors, effective August 30, 2021, with no disagreement cited[158](index=158&type=chunk) [Item 6. Exhibits](index=27&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed as part of the Form 10-Q, including amendments and certifications - The exhibits include amendments to the Articles of Incorporation, the 2020 Omnibus Incentive Plan, Rule 13a-14(a)/15d-14(a) Certifications, Section 1350 Certifications, and XBRL interactive data files[159](index=159&type=chunk)[160](index=160&type=chunk) [SIGNATURES](index=27&type=section&id=SIGNATURES) The report is duly signed on behalf of Lightbridge Corporation by its President, CEO, and CFO - The report was signed by Seth Grae, President, CEO, and Director, and Larry Goldman, CFO, on August 9, 2021[165](index=165&type=chunk)

Financial Data and Key Metrics Changes - The company maintained a strong working capital position with $15.2 million in cash and cash equivalents as of March 31, 2021, down from $21.5 million at December 31, 2020 [26] - Total assets were $15.9 million and total liabilities were $0.6 million at March 31, 2021 [26] - Total cash used in operating activities increased to $6.3 million for Q1 2021, up approximately $4.3 million compared to Q1 2020, primarily due to the dissolution of the Enfission joint venture and payments to Framatome [27] - Net loss for Q1 2021 was $2 million, compared to $2.3 million for Q1 2020 [30] Business Line Data and Key Metrics Changes - R&D expenses remained consistent at $0.4 million for both Q1 2021 and Q1 2020, as the company transitioned to a new fuel development strategy [30] - General and administrative (G&A) expenses decreased by approximately $0.2 million in Q1 2021 compared to Q1 2020, attributed to lower legal fees and employee compensation [32] Market Data and Key Metrics Changes - The company received a second GAIN funding voucher from the DOE to support the development of Lightbridge fuel, with a total project value of approximately $664,000 [9][23] - The Biden administration's increasing support for nuclear energy is expected to enhance investment in the nuclear power industry, which could benefit Lightbridge [12][15] Company Strategy and Development Direction - Lightbridge is focused on developing fuel for small modular reactors (SMRs) to improve efficiency and reduce electricity generation costs [8][16] - The company aims to transition from large reactors to a greater number of SMRs, enhancing load-following capabilities with renewables [16] - The company is pursuing additional DOE funding and strategic alliances to support future R&D milestones [29] Management's Comments on Operating Environment and Future Outlook - Management highlighted a paradigm shift in government perspectives on nuclear power, with increased federal funding for advanced nuclear energy R&D [13][14] - The company believes that its unique fuel design can significantly improve the safety and economic benefits of both existing and new reactors [15] - Management expressed optimism about the future of nuclear energy in the U.S. and its role in meeting climate goals [52] Other Important Information - The successful demonstration of the proprietary manufacturing process for Lightbridge fuel rods is a significant milestone for the company [6][17] - The company is working on various projects with national laboratories to validate its fuel technology and manufacturing processes [20][22] Q&A Session Summary Question: How does the recent coextrusion announcement differ from your previous work? - The recent work utilized a patented high-temperature core extrusion process for the new Lightbridge Fuel design, incorporating a central line displacer and nuclear-grade cladding materials [36] Question: Can you provide an update on where things stand today one year later in terms of the work to be done at INL? - The ATR experiment design at Idaho National Lab is progressing, with an expected completion date by the end of Q3 2021 [39] Question: Can you discuss which SMR or advanced reactor types might use Lightbridge Fuel? - Lightbridge Fuel has potential applications in most water-cooled reactor types, including pressurized water and boiling water designs, with specific applications in new scale power modules and GE Hitachi designs [44] Question: Do you have designs to use other materials besides uranium and zirconium? - The company has worked on a version of its fuel utilizing plutonium and zirconium, which could help dispose of plutonium from dismantled nuclear weapons [48] Question: How can the recent support for existing large reactors be viewed as a benefit for Lightbridge? - Support for nuclear power, including potential production tax credits, could improve the economics of operating nuclear power plants and lead to the construction of new reactors using Lightbridge Fuel [50] Question: When do you think the perception of nuclear will change for the better in this country? - A significant increase in nuclear power is essential to meet climate goals, and advanced nuclear technology will play a crucial role in the U.S. energy market [52]

Financial Performance - Total operating expenses for the three months ended March 31, 2021, decreased by 7% to $2,152,310 from $2,326,579 in the same period of 2020[114]. - General and administrative expenses decreased by approximately $153,895, or 8%, to $1,782,860 for the three months ended March 31, 2021, compared to $1,936,755 in 2020[114]. - Research and development expenses decreased by 5% to $369,450 for the three months ended March 31, 2021, from $389,824 in the same period of 2020[114]. - The net loss for the three months ended March 31, 2021, was $2,011,988, a decrease of 11% compared to a net loss of $2,264,086 in 2020[115]. Research and Development - Lightbridge Corporation is developing next-generation nuclear fuel aimed at improving economics, safety, and proliferation resistance in nuclear reactors[96]. - Lightbridge Corporation has built a significant portfolio of patents and is conducting R&D activities with U.S. national laboratories[99]. - Total R&D expenses for Q1 2021 were consistent with Q1 2020, with a decrease in employee compensation of approximately $0.2 million offset by increases in outside R&D work and patent expenses of approximately $0.1 million each[119]. - The ongoing COVID-19 pandemic has led to a reduction in R&D expenses and an increase in general and administrative expenses due to severance payments[103]. Future Projections - The first small modular reactors (SMRs) expected to use Lightbridge Fuel™ are projected to begin operations in 2029[98]. - The company projects a negative cash flow from operations averaging approximately $0.8 million per month, leading to total expected expenditures of approximately $9 million to $10 million over the next 12 to 15 months[127]. - The company has approximately $14.8 million of working capital, which is expected to exceed budgeted expenditures through Q1 2022[127]. - The company plans to seek shareholder approval on May 27, 2021, to increase the number of authorized common shares to finance current and future R&D activities[128]. Funding and Support - The company requires substantial U.S. government support for its nuclear fuel R&D efforts, and failure to secure this funding may necessitate seeking alternative funding sources[129]. - The company has no debt or lines of credit and has financed operations through prior consulting revenue and the sale of preferred and common stock[131]. - The company was awarded a GAIN voucher from the DOE for a project valued at approximately $664,000 to support the development of Lightbridge Fuel™[108]. Strategic Alliances - The company aims to create strategic alliances over the next three years to support remaining R&D activities for fuel products[133]. - A settlement agreement with Framatome resulted in a payment of approximately $4.2 million for outstanding invoices and expenses[106].