Lightbridge(US:LTBR)2024-08-01 21:00Nuclear 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].