Lightbridge(LTBR) - 2021 Q1 - Quarterly Report

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].