Core Highlights: - Net loss increased 44% to $7.9 million for the nine months ended September 30, 2024 compared to $5.5 million in the prior year period, primarily due to increased research and development expenses. - The company had no revenue for both periods as it is in the research and development stage for its nuclear fuel technology.
Revenue Breakdown: The company has no revenue as it is in the research and development stage for its proprietary nuclear fuel technology called Lightbridge Fuel™. Key developments in the nuclear fuel projects during the period included: - Continued work under agreements with Idaho National Laboratory (INL) and Battelle Energy Alliance to support development of Lightbridge Fuel, including successful extrusion demonstrations using depleted uranium and zirconium alloy. - Engaged RATEN ICN in Romania to perform an engineering study to assess using Lightbridge Fuel in CANDU reactors. - Completed a front-end engineering and design study with Centrus Energy for a potential Lightbridge pilot fuel fabrication facility, but decided not to proceed with that site. - The company projects investing around $6.8 million on research and development over the next 12-15 months as it works towards future milestones like irradiation testing.
Management Outlook: Management indicates that based on current cash resources of $26.6 million at September 30, 2024, the company has sufficient funds for at least the next 12 months of operations. However, significant additional funding will be required to complete development and commercialization of Lightbridge Fuel. Key perspectives from management: - The company will continue utilizing its at-the-market (ATM) equity facility to finance operations, but may also seek other equity/debt financing, strategic partnerships, and government funding. - Future costs and timelines are inherently uncertain due to the nature of nuclear R&D. Development is expected to take 15-20 years from now until anticipated commercial deployment. - Access to test reactors and manufacturing capabilities at national labs is critical but subject to availability, priorities, and funding constraints.
Operating Data: Other key operating data: - General and administrative expenses increased 12% to $5.7 million due to higher compensation, recruiting and stock-based compensation costs - Research and development expenses increased 146% to $3.2 million due to higher project costs at INL, new studies, and increased headcount - Total cash used in operating activities increased to $5.7 million from $4.1 million in the prior year period - The company raised $3.7 million from its ATM equity facility in the nine month period - At current cash burn rates of around $14 million annually, the $26.6 million cash balance would last less than 2 years without additional financing
Operational Risks: Key risk factors disclosed include: - Potential competitors developing new nuclear fuel designs that could limit opportunities for Lightbridge Fuel - Dependence on availability of test reactors and adequate resources/manufacturing capabilities at national labs which have funding/priority constraints - Need for substantial future funding from equity, debt, partnerships and/or government sources to complete R&D which may not be available on acceptable terms - Long development timelines and inherent uncertainties in nuclear R&D costs and progress - No current revenue and history of operating losses

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