Lightbridge Q1 2025 Earnings Call Transcript

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Provided by Quartr
May 12, 2025

There are 6 speakers on the call.

Operator

Hello. Thank you for standing by, and welcome to the Lightbridge Corporation Business Update and First Quarter twenty twenty five Conference Call. Please note that today's call is being recorded. It is now my pleasure to introduce Matthew Abenaki, Director of Investor Relations for Lightbridge Corporation. You may begin.

Speaker 1

Thank you, Towanda, and thanks to all of you for joining us today. Our earnings press release was distributed earlier today and can be viewed on the Investor Relations page of the Lightbridge website at www.ltbridge.com. Joining us on the call today is Seth Gray, Chief Executive Officer along with Andre Mushakov, Executive Vice President for Nuclear Operations Larry Goldman, Chief Financial Officer and Sherry Holloway, Controller. I want to remind our listeners that any statements on this call that are not historical facts are forward looking statements. Today's presentation includes forward looking statements about the company's competitive position and product and service offering.

Speaker 1

During today's call, words such as expect, anticipate, believe and intend will be used in our discussion of goals or events in the future. This presentation is based on current expectations and involves certain risks and uncertainties that may cause actual results to differ significantly from such estimates. These and other risks are set forth in more detail in Lightbridge's filings with the Securities and Exchange Commission. Lightbridge does not assume any obligation to update or revise any such forward looking statements, whether as a result of new developments or otherwise. With that, I'd like to turn the call over to our first speaker, Seth Gray, Chief Executive Officer of Lightbridge.

Speaker 1

Hello, Seth.

Speaker 2

Hello, Matt, and thank you all for joining us to discuss Lightbridge's first quarter twenty twenty five results. The first quarter of twenty twenty five has been marked by significant operational progress and continued positive momentum in the nuclear energy sector. At Lightbridge, we successfully demonstrated our proprietary co extrusion manufacturing process at Idaho National Laboratory, a special fabrication technique that combines two key elements, a uranium zirconium fuel mixture surrounded by a protective zirconium alloy outer layer called cladding. Using specialized equipment, we created an eight foot long fuel coupon sample. We believe our cooperation, our collaboration with OCLO can open promising avenues for future fabrication and fuel cycle synergies.

Speaker 2

Furthermore, ongoing engineering work continues to confirm the potential benefits of Lightbridge fuel across various reactor types, from existing large plants to CANDU reactors and SMRs. The momentum behind nuclear energy continues to build globally, solidifying its essential role in achieving a secure, reliable, and clean energy future. We are witnessing a paradigm shift driven by unprecedented government support, growing public acceptance, and increasing demand from energy intensive industries seeking dependable power. Recent events, particularly the blackout in Spain, emphasize the critical need for resilient baseload energy sources, a role nuclear power is uniquely well suited to fill. In November, I was at COP twenty nine in Baku when the US government announced its policy to triple nuclear power domestically by 02/1950.

Speaker 2

That was almost six months ago and projected power needs are surging since then. News broke over the weekend of potential executive orders relating to quadrupling US nuclear power by 02/1950, and providing DOE the authority to fast track development of advanced nuclear plants built for the purpose of powering data centers that house AI applications. This global nuclear resurgence is about building new reactors, license extensions, and power upgrades for existing plants, restarting idle facilities, and advancing SMRs. Major technology companies are increasingly looking to nuclear power to meet the immense energy demands of data centers and artificial intelligence infrastructure, validating nuclear energy's position as a cornerstone technology for the twenty first century. This environment is helping to drive Lightbridge's progress.

Speaker 2

We believe our innovative Lightbridge fuel technology will be a key enabler of this transition. Our proprietary all metal fuel design is engineered to deliver significant economic and safety benefits for existing and future water cooled reactors. These advantages are becoming increasingly critical as the world seeks to maximize the output and safety of nuclear assets. We operate in a dynamic and supportive landscape, and we believe Lightbridge is well positioned to capitalize on the growing demand for advanced nuclear technologies. Our focus remains steadfast on executing our development plan, demonstrating the capabilities of Lightbridge Fuel, and ultimately contributing meaningfully to a growing economy and energy security.

Speaker 2

Now, I'll turn the call over to Andrey Mushakov, Executive VP for Nuclear Operations, to begin the review of our fuel development activities. Andrey?

Speaker 3

Thank you, Seth. As Seth mentioned, in January of this year, we announced the signing of a memorandum of understanding, or MOU, with Ocla. Ocla is developing advanced microreactors to provide clean, reliable, and affordable energy at scale. The scope of the MOU includes the following areas. One, to conduct a preliminary evaluation of feasibility of co locating a Lightbridge commercial scale fuel fabrication facility a proposed commercial fuel fabrication facility.

Speaker 3

Two, to explore opportunities for collaboration on reprocessing and recycling of spent uranium zirconium fuel. And three, exploring other areas of collaboration that may be of mutual interest. We believe there may be potential synergies in collocating our commercial scale fuel fabrication facility at Okla's proposed site. Recycling reprocessing spent uranium zirconium fuel represents another area of potential synergies, particularly as The United States is starting to look more seriously at spent fuel reprocessing options. In March, we announced a successful co extrusion demonstration of a coupon sample consisting of an alloy of depleted uranium and zirconium with an outer cladding made of nuclear grade zirconium alloy material at Idaho National Laboratory.

Speaker 3

The co extrusion process demonstration conducted at Idaho National Laboratory and that entailed pressing the metallic alloy billet encased in zirconium alloy cladding through a die to produce a cylindrical rod with a length of approximately eight feet. As a next step, we are working with Zynich National Laboratory to manufacture and characterize test samples with enriched uranium and zirconium alloy for radiation testing in the advanced test reactor at Idaho National Laboratory, which is expected to begin next year. With that, I'll turn the call over back to Seth.

Speaker 2

Thanks, Andre. Looking at the broader industry landscape, the tailwinds supporting nuclear energy have never been stronger. The global imperative to achieve net zero emissions, coupled with increasing demands for energy security and grid stability, has firmly positioned nuclear power as an indispensable part of the clean energy transition. This is reflected in policy decisions, investment trends, and public discourse worldwide. The commitment by over 20 countries at COP twenty eight to triple global nuclear capacity by 02/1950 was a powerful signal.

Speaker 2

This ambition is being translated into concrete actions with governments implementing policies to support existing reactor license extensions, facilitating the deployment of new large scale plants, and accelerating the deployment of next generation technology like SMRs. Significant capital is flowing into the sector and the robust long term demand forecast for uranium and nuclear fuel services is driven by both decarbonization goals and the electrification of economies. We are particularly encouraged by the growing recognition of nuclear power's role in supporting energy intensive industries. The interest from major technology companies in utilizing nuclear energy, including SMRs, to power data centers is a game changer. It underscores the need for reliable twenty four seven carbon free power that only nuclear power can provide at scale, creating substantial new market opportunities beyond traditional utility customers.

Speaker 2

This trend aligns perfectly with the development of advanced reactors and the need for Lightbridge's innovative fuel solutions that can enhance performance and economics, as well as safety and non proliferation. The focus on SMRs continues to intensify globally. These smaller modular designs promise greater flexibility, faster deployment, and suitability for a wider range of applications, including remote communities and industrial sites. We believe Lightbridge Fuel is exceptionally well suited for many water cooled SMR designs, offering safety and efficiency benefits that can significantly enhance their value proposition. Furthermore, the geopolitical landscape underscores the importance of secure and resilient energy supply chains.

Speaker 2

Events like the recent blackout serve as a sort of stark reminders of the vulnerabilities of relying solely on intermittent renewables or volatile fossil fuel markets. This reinforces the value of increasing nuclear base load power as part of a diversified energy mix. We believe our technology aligns well with these strategic objectives. The convergence of energy security needs, technological innovation, and supportive government policies creates an exceptionally favorable environment for advanced nuclear technologies. Lightbridge is strategically positioned at the forefront of fuel innovation, offering a technology designed to meet the demands of this evolving energy landscape.

Speaker 2

We believe Lightbridge Fuel will be instrumental in maximizing the potential of the existing nuclear fleet and new build water cooled reactors. Our team remains focused on executing our development plan, advancing our technology through rigorous testing and demonstration and building the strategic partnerships necessary for commercialization. I'll now turn the call over to Larry Goldman, Chief Financial Officer to summarize the company's results. Larry?

Speaker 4

Thank you, Seth, and good afternoon, everyone. For further information regarding our first quarter twenty twenty five financial results and disclosures, please refer to our earnings release that we issued this morning and our quarterly report on Form 10 Q, which was filed with the Securities and Exchange Commission today. The company's working capital position was $56,500,000 at 03/31/2025 versus $39,900,000 at 12/31/2024. Total assets were $58,300,000 and total liabilities were $1,000,000 at 03/31/2025. Today, we have ample working capital and financial flexibility to support our near term fuel development expenditures.

Speaker 4

This is very important to Lightbridge and our stockholders, as well as our external stakeholders such as the federal government to ensure that we have sufficient working capital as well as the ability to access capital in the future in order to conduct our future R and D activities. Total cash and cash equivalents were $56,900,000 as compared to $40,000,000 at 12/31/2024, an increase of $16,900,000 for the first quarter ended 03/31/2025. Total cash used in operating activities for the first quarter March '30 '1, '20 '20 '5 was $3,300,000 an increase of $1,400,000 compared to the $1,900,000 for the first quarter ended 03/31/2024. This increase was primarily due to increased spending on R and D and G and A expenses. Total cash provided by financing activities for the first quarter ended 03/31/2025 was $20,200,000 an increase of $19,000,000 compared to the $1,200,000 raised for the first quarter March '30 '1, '20 '20 '4.

Speaker 4

This increase was due to the increase in the net proceeds received from the issuance of common stock under our at the market or ATM facility. In support of our long term business and future financing requirements with respect to our fuel development, we expect to continue to seek government funding in the future along with new strategic alliances that may contain cost sharing contributions and additional funding from others in order to help fund our future R and D milestones, leading to the commercialization of Lightbridge Fuel. We currently anticipate investing approximately $17,000,000 for both CapEx and operating expenditures in our R and D development of our nuclear fuel for 2025. Regarding our MOU with Oclo, we plan to evaluate the benefits of situating Lightbridge's fuel fabrication operations within the Oak Lo's proposed commercial fuel fabrication facility. This could potentially lead to cost savings and both the initial capital investment and long term operational expenses.

Speaker 4

I will now turn the call over to Sherry Holloway, our Controller, who will go over our P and L financial information for the first quarter. Sherry?

Speaker 5

Thank you, Larry. Net loss was $4,800,000 for the first quarter ended 03/31/2025, compared to $2,800,000 for the first quarter ended 03/31/2024. Total R and D expenses amounted to $1,700,000 for the first quarter ended 03/31/2025, compared to $1,000,000 for the first quarter ended 03/31/2024, an increase of $700,000 This increase was primarily due to an increase in I and L project labor costs of $400,000 an increase in allocated employee compensation and employee benefits, and stock based compensation expenses of $600,000 partially offset by a decrease in two other R and D studies that were completed last year of $300,000 Total G and A expenses were 3,500,000.0 for the first quarter ended 03/31/2025, compared to $2,200,000 for the first quarter ended 03/31/2024. The increase of 1,300,000.0 was primarily due to an increase in employee compensation and employee benefits of $200,000 an increase in consulting fees of $100,000 an increase in professional fees of $400,000 an increase in stock based compensation of $700,000 primarily due to the accelerated vesting of RSAs issued to a former employee of 500,000 partially offset by a decrease in IT and recruitment expenses of $100,000 Total other income was $400,000 for the first quarter ended March 2024.

Speaker 5

Other income consisted of interest income earned from the purchase of treasury bills and from our bank savings account. Back to you Seth.

Speaker 2

Thank you Sherri. We will now go to the question and answer session. Thank you to everyone who submitted questions. Matt, please go ahead.

Speaker 1

Our first question, can we expect to see Lightbridge receive DOE financing in the near future?

Speaker 2

We don't know exactly what DOE will do. We believe Lightbridge is well positioned for future support. We frequently evaluate opportunities for non dilutive funding sources, including DOE funding. To date, our project has benefited from two DOE GAIN Voucher Awards where Lightbridge was the main applicant plus another GAIN Voucher Award to Structural Integrity Associates to evaluate the safety of Lightbridge Fuel in a large 1,100 megawatt electric pressurized water reactor, as well as two DOE Nuclear Energy University program funding awards to MIT and to Texas A and M University. We will continue to pursue DOE funding opportunities in those areas that minimize IP risks to us.

Speaker 2

Next question.

Speaker 1

Has Lightbridge gotten out of the thorium business entirely or have you just backburnered it?

Speaker 2

We are not actively pursuing a thorium based seed and blanket fuel design. However, Lightbridge still holds patents covering that thorium fuel technology and we could resume fuel development activities in that area if we saw real interest from a serious customer come about. The interest we are seeing from customers is in our metallic uranium zirconium fuel, particularly for power up rates.

Speaker 1

And that's our last question.

Speaker 2

Well, thank you, Matt. And I want to thank everybody for participating in today's call. We appreciate the continued support of our shareholders and the dedication of our team and partners. We look forward to updating you on our progress in the coming quarters. In the meantime, we can be reached at irltbridge.com.

Speaker 2

Stay safe and well. Goodbye.

Operator

Ladies and gentlemen, that concludes today's conference call. You may now disconnect.

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Earnings Conference Call
Lightbridge Q1 2025
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