Lightbridge Provides 2011 Third Quarter Business Update and Announces Financial Results

PR Newswire

MCLEAN, Va., Nov. 9, 2011

MCLEAN, Va., Nov. 9, 2011 /PRNewswire/ -- Lightbridge Corporation LTBR, a leading innovator of next generation nuclear fuel designs and provider of nuclear energy consulting services to commercial and governmental organizations, today provided a 2011 third quarter business update on the progress of its nuclear fuel technology and consulting businesses and reported financial results for the quarter ended September 30, 2011.

"The second half of 2011 has been quite productive for the Company with a number of tangible and measurable developments and other important activities that continue to move forward as planned," said Seth Grae, President and CEO of Lightbridge. "We continue to make progress on our collaborative project with Idaho National Laboratory and Texas A & M University, and we've begun the negotiation process with potential fuel fabrication development partners."

2011 Third Quarter Business Update

The Company had several other tangible developments in the 2011 third quarter, including the following:

Idaho National Laboratory (INL) completed a preliminary scoping study confirming, in principle, the feasibility of performing loop irradiation of the Company's metallic fuel samples in the Advanced Test Reactor (ATR). As a result, INL is now proceeding with a more detailed design of the loop experiment. This detailed analysis will provide input into a safety analysis report, which is a key prerequisite for the loop irradiation experiment. Lightbridge is pleased to be part of this Texas A&M University-led research project with the Fuel Cycle & Materials Laboratory under the auspices of the U.S. Department of Energy's Idaho National Laboratory Advanced Test Reactor National Scientific User Facility.

Lightbridge began negotiations with a domestic fuel fabrication partner relating to metal fuel fabrication process development and demonstration work in the U.S. The Company expects negotiations to conclude in the first half of 2012.

Lightbridge completed a preliminary analysis of the data generated from the thermal-hydraulic and vibration testing results for a VVER-1000 seed and blanket fuel assembly mockup. The results from the preliminary analysis of these tests are quite positive, and reaffirm the thermal-hydraulic performance advantages of the seed-and-blanket fuel assembly compared to standard fuel assembly. More detailed results of this testing will be submitted for publication in a peer- reviewed journal in the coming months.

Lightbridge received a notice of allowance from the U.S. Patent and Trademark Office for a patent application covering a locking mechanism for a seed-and-blanket fuel assembly. The patent will issue in the next few months and will provide protection for the locking mechanism invention in the U.S. from its issuance until December 2028. Lightbridge has also filed counterpart foreign patent applications for this invention, and will file an additional international Patent Cooperation Treaty patent application for an improved locking mechanism in the coming months.

Lightbridge prepared a technical review paper of the Company's metallic fuel and its application to Pressurized Water Reactors (PWRs) and submitted it for publication in a peer-reviewed journal. The paper provides a detailed overview of the technical basis behind our metallic fuel technology and discusses, from a technical standpoint, how specific benefits of our fuel technology could improve fuel performance. This paper is the first in a series of peer-reviewed articles we plan to publish in the coming quarters. We will provide further update once the article has been published.

Mr. Grae concluded, "On the consulting side of our business, we continue to work with existing customers and engage in discussions with new potential customers in new markets about our services. Following the events at Fukushima earlier in the year, there's a sharpened focus on studying beyond design basis accident scenarios which take into account the most extreme circumstances."

A more detailed update on Lightbridge's nuclear fuel technology is available as of today in the Fuel Technology section on the Company's website at www.ltbridge.com.

Financial Results

Revenue for the third quarter ended September 30, 2011 was $1.7 million, a decrease from $2.1 million for the third quarter of 2010. Operating loss for the three months ended September 30, 2011 improved to $1.2 million, as compared to an operating loss of $1.7 million in the comparable period a year ago. The Company's operating revenues are derived from its consulting and strategic advisory services for foreign governments planning to create or expand electricity generation capabilities using nuclear power plants. Revenues are generated from contracts in place with government entities in the United Arab Emirates, the State of Kuwait and the Gulf Cooperation Council (GCC). The GCC is a political and economic union that comprises the Gulf States of the Kingdom of Bahrain, State of Kuwait, Sultanate of Oman, State of Qatar, Kingdom of Saudi Arabia and United Arab Emirates. Our consulting projects are primarily being performed pursuant to ongoing requests to work on specific projects.

Balance Sheet Overview

As of September 30, 2011, the Company had approximately $9.3 million in cash and cash equivalents, and approximately $9.7 million of working capital, with no long term debt. Stockholders' equity was $10.4 million on September 30, 2011 compared with $13.1 million on December 31, 2010.

2011 Third Quarter Conference Call

Lightbridge will host a conference call on Wednesday, November 9, 2011 at 11:30 AM EST to discuss the Company's 2011 third quarter results and provide an update on recent corporate developments. Seth Grae, President and Chief Executive Officer, will lead the call and additional members of the senior management team will be available to answer questions.

Date:	Wednesday, November 9, 2011
Time:	11:30 AM EST
Call-in (domestic):	1-800-860-2442
Live Call (international):	1-412-858-4600
Live Webcast:	http://www.videonewswire.com/event.asp?id=83364

All participant questions should be submitted in writing to ir@ltbridge.com prior to and during the conference call. Submitted questions will be read aloud and answered during the call.

About Lightbridge Corporation

Lightbridge is a U.S. nuclear energy company based in McLean, Virginia with operations in Abu Dhabi, Moscow and London. The Company develops proprietary, proliferation resistant, next generation nuclear fuel technologies for current and future nuclear reactor systems. The Company also provides comprehensive advisory services for established and emerging nuclear programs based on a philosophy of transparency, non-proliferation, safety and operational excellence. Lightbridge's breakthrough fuel technology is establishing new global standards for safe and clean nuclear power and leading the way towards a sustainable energy future. Lightbridge consultants provide integrated strategic advice and expertise across a range of disciplines including regulatory affairs, nuclear reactor procurement and deployment, reactor and fuel technology and international relations. The Company leverages those broad and integrated capabilities by offering its services to commercial entities and governments with a need to establish or expand nuclear industry capabilities and infrastructure.

Lightbridge is on Twitter. Sign up to follow @LightbridgeCorp at http://twitter.com/lightbridgecorp.

Forward Looking Statement

This press release contains statements that are forward-looking in nature, including statements regarding the Company's competitive position and product and service offerings. These statements are based on current expectations on the date of this press release and involve a number of risks and uncertainties, which may cause actual results to differ significantly from such estimates. The risks include, but are not limited to, the degree of market adoption of the Company's product and service offerings; market competition; dependence on strategic partners; and the Company's ability to manage its business effectively in a rapidly evolving market. Certain of these and other risks are set forth in more detail in "Item 1A. Risk Factors" in Lightbridge's Quarterly Report on Form 10-Q for the quarter ended September 30, 2011. Lightbridge does not assume any obligation to update or revise any such forward-looking statements, whether as the result of new developments or otherwise.

Contact:

Lightbridge Corporation:
Gerry Pascale
(571) 730-1213
ir@Ltbridge.com

Lightbridge Corporation Condensed Consolidated Balance Sheets
		September 30,		December 31,
		2011		2010
		(Unaudited)
ASSETS
Current Assets
Cash and cash equivalents	$	9,284,584	$	2,373,421
Marketable securities		--		10,461,357
Restricted cash		551,607		550,283
Accounts receivable - project revenue and reimbursable project costs		837,496		990,563
Prepaid expenses & other current assets		396,425		365,261
Total Current Assets		11,070,112		14,740,885

Property Plant and Equipment -net		53,892		72,179

Other Assets
Patent costs - net		482,936		377,262
Security deposits		120,486		120,486
Total Other Assets		603,422		497,748

Total Assets	$	11,727,426	$	15,310,812

LIABILITIES AND STOCKHOLDERS EQUITY

Current Liabilities
Accounts payable and accrued liabilities	$	1,354,873	$	2,088,362
Deferred revenue		--		98,110
Total Liabilities		1,354,873		2,186,472

Commitments and contingencies

Stockholders' Equity
Preferred stock, $0.001 par value, 50,000,000 authorized shares, no shares issued and outstanding		-		-

Common stock, $0.001 par value, 500,000,000 authorized, 12,449,958 shares issued, 12,399,883 shares outstanding and 12,430,058 shares issued, 12,345,840 shares outstanding at September 30, 2011 and December 31, 2010, respectively		12,400		12,346

Additional paid in capital - stock and stock equivalents		70,581,626		69,370,261
Deficit		(60,256,223)		(56,286,767)
Common stock reserved for issuance, 13,578 shares and 6,451 shares at September 30, 2011 and December 31, 2010, respectively		34,750		28,500
Total Stockholders' Equity		10,372,553		13,124,340

Total Liabilities and Stockholders' Equity	$	11,727,426	$	15,310,812

Lightbridge Corporation Unaudited Condensed Consolidated Statements of Operations
		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2011		2010		2011		2010
Revenue:

Consulting Revenue	$	1,652,538	$	2,050,456	$	5,523,181	$	6,411,883

Cost of Consulting Services Provided		848,065		1,255,877		3,516,708		4,024,275

Gross Margin		804,473		794,579		2,006,473		2,387,608

Operating Expenses
General and administrative		1,438,660		1,942,132		4,559,317		6,642,487
Research and development expenses		591,089		562,783		1,716,884		1,142,043
Total Operating Expenses		2,029,749		2,504,915		6,276,201		7,784,530

Operating Loss		(1,225,276)		(1,710,336)		(4,269,728)		(5,396,922)

Other Income and (Expenses)
Investment income		73,145		3,809		319,445		4,857
Other income (expenses)		(16,654)		35,563		(19,173)		33,033
Total Other Income and Expenses		56,491		39,372		300,272		37,890

Net loss before income taxes		(1,168,785)		(1,670,964)		(3,969,456)		(5,359,032)

Income taxes		--		--		--		--

Net loss	$	(1,168,785)	$	(1,670,964)	$	(3,969,456)	$	(5,359,032)


Net Loss Per Common Share, Basic and diluted	$	(0.09)	$	(0.14)	$	(0.32)	$	(0.50)
Weighted Average Number of shares outstanding		12,364,628		11,703,932		12,360,312		10,730,225

Lightbridge Corporation Unaudited Condensed Consolidated Statements of Cash Flows
		Nine Months Ended
		September 30,
		2011		2010
Operating Activities:
Net Loss	$	(3,969,456)	$	(5,359,032)
Adjustments to reconcile net loss from operations to net cash used in operating activities:
Stock-based compensation		1,147,669		2,259,348
Depreciation and amortization		19,515		18,216
Gain on marketable securities		(108,226)		(38,638)
Changes in non-cash operating working capital items:
Accounts receivable - fees and reimbursable project costs		153,067		1,149,728
Prepaid expenses and other assets		(31,164)		45,460
Accounts payable, accrued liabilities and other current liabilities		(663,489)		176,405
Deferred revenue		(98,110)		--
Net Cash Used In Operating Activities		(3,550,194)		(1,748,513)

Investing Activities:
Proceeds from (Purchases of) Marketable securities		10,569,583		(10,390,614)
Property and equipment		(1,228)		--
Patent costs		(105,674)		(47,716)
Net Cash Provided By (Used In) Investing Activities		10,462,681		(10,438,330)

Financing Activities:
Proceeds from the issuance of common stock - net of offering costs		--		12,582,575
Redemption of common stock into treasury stock		--		(243,552)
Restricted cash		(1,324)		388,555
Net Cash Provided by (Used In) Financing Activities		(1,324)		12,727,578

Net Increase In Cash and Cash Equivalents		6,911,163		540,735

Cash and Cash Equivalents, Beginning of Period		2,373,421		3,028,791

Cash and Cash Equivalents, End of Period	$	9,284,584	$	3,569,526

Supplemental Disclosure of Cash Flow Information:
Cash paid during the year:
Interest paid	$	--	$	--
Income taxes paid	$	--	$	--

Non-Cash Financing Activity:
Retirement of Treasury Stock	$	--	$	243,552
Grant of Common Stock for Payment of Accrued Liabilities	$	70,000	$	703,737

SOURCE Lightbridge Corporation

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