MCLEAN, Va., July 22, 2010 (GLOBE NEWSWIRE) -- Lightbridge Corporation (Nasdaq:LTBR), a leading developer of non-proliferative nuclear fuel technology and provider of comprehensive advisory services for civil nuclear energy programs, today announced earnings results for the second quarter ended June 30, 2010. Revenue for the three months ended June 30, 2010 was $2.0 million, compared to $3.4 million in the comparable period a year ago. Operating loss for the quarter was approximately $2.0 compared to an operating loss of $1.3 million in the second quarter of 2009. Excluding the impact of non-cash items, adjusted net loss for the three months ended June 30, 2010 would have been $1.3 million compared to adjusted net loss of $0.1 million for the same period a year ago (see "About Non-GAAP Financial Measures" near the end of this release).

Seth Grae, Lightbridge Chief Executive Officer, commented, "On the fuel technology side of our business, we had a significant development in the second quarter that is important to our business. Our proprietary, all-metal fuel assembly, which we've been developing as an outgrowth of our seed-and-blanket fuel technology for the last decade, has the potential to reduce both initial capital costs per megawatt and annual operating costs per kilowatt-hour of nuclear power, which we believe will increase the competitiveness of nuclear power versus fossil energy sources, while also contributing to a significant reduction of CO2 emissions."

Mr. Grae added, "We believe this development in all-metal fuel assembly will provide considerable fiscal incentives to both new and existing nuclear utilities, making it an attractive product to increase output and decrease operating costs, while also reducing proliferation and fuel waste. We expect the testing and demonstration work on our all-metal fuel technology will also benefit and advance our thorium-based seed-and-blanket fuel assembly design due to the similarities and synergies between the all-metal fuel rods and the metallic seed fuel rods utilized in the seed-and-blanket fuel assembly design."     

Mr. Grae further commented, "Our expertise in civilian nuclear advisory services continues to be in demand, as we work with governments to evaluate the potential for civil nuclear power programs. Heading into the second half of 2010, we remain active in pursing new opportunities to discuss our capabilities with potential partners, as legislation and international dialogue continue to be key components in our long-term development. We anticipate entering into new arrangements with governments and other institutions on the consulting side of our business before the end of the year." 

Currently, the Company's operating revenues are derived primarily from the Company's consulting and strategic advisory services for foreign governments planning to create or expand electricity generation capabilities using nuclear power plants and are used to help fund the continued development of the Company's nuclear fuel design technology. Revenues are primarily generated from the five-year consulting contracts in place in the United Arab Emirates ("UAE") with two separate entities, the Emirates Nuclear Energy Corporation ("ENEC") and the Federal Authority for Nuclear Regulation ("FANR"). 

As of June 30, 2010, the Company had approximately $3.1 million of cash and cash equivalents and approximately $3.1 million of working capital. As of December 31, 2009, the Company had approximately $4.5 million of working capital.

About Non-GAAP Financial Measures

This press release contains non-GAAP financial measures for earnings that exclude non-cash items. Net income excluding non-cash items is not a measure of performance calculated in accordance with generally accepted accounting principles in the United States ("GAAP") and has limitations as an analytical tool. The Company believes the presentation of net income excluding non-cash expense is relevant and useful by enhancing the readers' ability to understand the Company's operating performance. The Company's management utilizes net income excluding non-cash expense as a means to measure operating performance. You should not consider it in isolation or as a substitute for net income or any other measure calculated in accordance with GAAP. In addition, it should be noted that other companies may calculate adjusted net income differently and, therefore, adjusted net income as presented for the Company may not be comparable to the calculations of adjusted net income reported by other companies. The table below reconciles adjusted net income (loss) excluding non-cash expense, a non-GAAP measure, to GAAP net income (loss) for the three months ended June 30, 2010 and June 30, 2009 (Expressed in Thousands of US Dollars).
    Three Months Ended 30-June-10 Three Months Ended 30-June-09  
GAAP Net Income (Loss)   $(2,004) $(1,347)  
Adjustments:        
Expense - non-cash employee compensation   723 1,246  
Expense - depreciation   6 7  
Adjusted Net Income (Loss)   $(1,275) $(94)  

About Lightbridge Corporation

Lightbridge is a U.S. nuclear energy company based in McLean, VA with operations in Abu Dhabi, Moscow and London. The Company develops non-proliferative nuclear fuel technology and 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 peaceful 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 services to commercial entities and governments with a need to establish or expand nuclear industry capabilities and infrastructure.

The Lightbridge Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6636

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 fiscal quarter ended June 30, 2010. Lightbridge does not assume any obligation to update or revise any such forward-looking statements, whether as the result of new developments or otherwise. 
Lightbridge Corporation Condensed Consolidated Balance Sheets
     
  June 30, 2010 (Unaudited) December 31, 2009
ASSETS    
     
Current Assets    
 Cash and cash equivalents $3,077,451 $3,028,791
 Restricted cash 263,300 652,174
 Accounts receivable - project revenue and reimbursable project costs 1,132,656 2,421,088
 Prepaid expenses & other current assets 389,101 574,095
 Total Current Assets 4,862,508 6,676,148
     
Property Plant and Equipment –net 84,143 97,559
     
Other Assets    
 Patent costs – net 264,716 241,845
 Security deposits 120,486 120,486
 Total Other Assets 385,202 362,331
     
Total Assets $5,331,853 $7,136,038
     
LIABILITIES AND STOCKHOLDERS EQUITY    
     
Current Liabilities    
 Accounts payable and accrued liabilities $1,546,336 $2,162,221
 Deferred Revenue 213,300 0
     
Total Liabilities 1,759,636 2,162,221
     
Commitments and contingencies    
Stockholders' Equity     
Preferred stock, $0.001 par value, 50,000,000 authorized shares, no shares issued and outstanding -- --
Common stock, $0.001par value, 500,000,000 authorized, 10,307,513 shares and 10,168,412 shares issued and outstanding at  June 30, 2010 and December 31, 2009, respectively 10,308 10,168
Additional paid in capital - stock and stock equivalents 56,539,091 54,108,685
Deficit  (52,410,629) (48,723,286)
Common stock reserved for issuance, 4,204 shares and 5,721 shares at June 30, 2010 and December 31, 2009, respectively 34,750 34,750
Deferred stock compensation (601,303) (456,500)
Total Stockholders' Equity  3,572,217 4,973,817
     
Total Liabilities and Stockholders' Equity  $5,331,853 $7,136,038
 
Lightbridge Corporation  Unaudited Condensed Consolidated Statements of Operations 
         
  Three Months Ended June 30,  Six Months Ended June 30,
  2010 2009 2010 2009
Revenue:        
         
Consulting Revenue $1,962,295 $3,430,485 $4,361,427 $6,374,538
         
Cost of Consulting Services Provided 1,262,908 1,888,846 2,768,398 3,637,364
         
Gross Margin 699,387 1,541,639 1,593,029 2,737,174
         
Operating Expenses        
General and administrative  2,543,647 2,342,580 4,915,910 4,605,261
Research and development expenses 158,237 559,112 362,980 1,012,917
Total Operating Expenses 2,701,884 2,901,692 5,278,890 5,618,178
         
Operating loss (2,002,497) (1,360,053) (3,685,861) (2,881,004)
         
Other Income and (Expenses)        
Interest income 896 13,492 1,048 16,520
Other (1,984) (389) (2,530) (4,927)
Total Other Income and Expenses (1,088) 13,103 (1,482) 11,593
         
Net loss before income taxes (2,003,585) (1,346,950) (3,687,343) (2,869,411)
         
Income taxes 0 0 0 0
         
Net loss $(2,003,585) $(1,346,950) $(3,687,343) $(2,869,411)
         
         
Net Loss Per Common Share, Basic and diluted $(0.19) $(0.13) $(0.36) $(0.29)
Weighted Average Number of shares outstanding for the period used to compute per share data - (prior reporting period restated to reflect 1 for 30 reverse stock split) 10,296,694 10,061,391 10,232,553 10,058,485

 
     
Lightbridge Corporation   Unaudited Condensed Consolidated Statements of Cash Flows    
     
  Six Months Ended June 30,  
  2010 2009
Operating Activities:    
Net Loss $(3,687,343) $(2,869,411)
Adjustments to reconcile net loss from operations to net cash used in operating activities:    
Stock based compensation 1,582,092 2,519,098
Depreciation and amortization 13,416 13,040
Changes in non-cash operating working capital items:    
Accounts receivable - fees and reimburseable project costs 1,288,432 1,459,329
Prepaid expenses and other current assets 184,994 (260,222)
Accounts payable, accrued liabilities and other current liabilities 87,766 (1,500,982)
Deferred revenue 213,300 0
Net Cash Used In Operating Activities (317,343) (639,148)
     
Investing Activities:    
Property and equipment 0 (12,039)
Patent costs (22,871) (18,340)
Net Cash Used In Investing Activities (22,871) (30,379)
     
Financing Activities:    
Restricted cash 388,874 0
Net Cash Provided by (Used In) Financing Activities 388,874 0
     
Net Decrease In Cash and Cash Equivalents 48,660 (669,527)
     
Cash and Cash Equivalents, Beginning of Period 3,028,791 5,580,244
     
Cash and Cash Equivalents, End of Period $3,077,451 $4,910,717
     
Supplemental Disclosure of Cash Flow Information    
Cash paid during the year:    
Interest paid $0 $0
Income taxes paid $0 $266,000
     
Non-Cash Financing Activity    
Grant of Common Stock for Payment of Accrued Liabilities $703,652 $0
CONTACT:  Lightbridge Corporation          Gerry Pascale            (571) 730-1213            ir@Ltbridge.com          Linda Byus            (571) 730-1218            lbyus@ltbridge.com          Ogilvy Public Relations          Greg Jawski          212-880-5353          greg.jawski@ogilvypr.com

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