Lightbridge(US:LTBR)2021-05-13 02:36Financial 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]