Q3 2024 Lightbridge Corp Earnings and Business Update Call
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Speaker Change: Thank you for standing by and welcome to the Light Rich Corporation business update and third quarter 2024 Conference call. Please note that today's call is being recorded it is now my pleasure to introduce Matthew <unk>, Nancy Director of Investor Relations for like Bridge Corporation.
Speaker Change: Please go ahead.
Speaker Change: Well, thank you and thanks to all of you for joining us today.
Matthew <unk>: The company's earnings press release was distributed yesterday and can be viewed on the Investor Relations page of the light bridge website at Www Dot L T rich dotcom.
Matthew <unk>: Joining us on the call today is Seth Gray Chief Executive Officer, along with Entre Lucia carve executive Vice President for nuclear Operation got Holcomb, Vice President of Engineering, Larry Goldman Chief Financial Officer, and Sherry Hollaway controller.
Matthew <unk>: I would like to remind our listeners that any statements on this call that are not historical facts are forward looking statements.
Matthew <unk>: Today's presentation includes forward looking statements about the company's competitive position and product and service offering.
Matthew <unk>: During today's call words, such as expect anticipate believe and intend will be used their discussion of goals or events in the future.
Matthew <unk>: This presentation is based on current expectations and involve certain risks and uncertainties that may cause actual results to differ significantly from such estimates.
And other risks are set forth in more detail and light purchase filings with the Securities and Exchange Commission <unk> does not assume any obligation to update or revise any such forward looking statements, whether as a result of new developments or otherwise.
And with that I'd like to turn the call over to our first speaker Seth Great Chief Executive Officer of like Bridge Hello, Seth.
Matthew <unk>: Yeah.
And thank you all for joining us to discuss light bridges third quarter 2024 results.
Seth Gray: <unk>, we are advancing nuclear fuel technology that is set to address critical challenges facing the nuclear industry.
Our focus has always been on making nuclear energy safer more efficient and more cost effective than existing fuel. We are designing like bridge fuel to deliver superior performance at existing reactors and next generation water cooled reactors, including small modular reactors.
Seth Gray: We are developing with fuel to offer several key advantages over traditional fuel first.
Seth Gray: It may be able to increase power output output by 10% to 17% and existing pressurized water reactors, PW ours and up to 30% of Newbuild PW ours.
Seth Gray: Utilities could produce more energy from the same reactors.
Seth Gray: Extending the lifespan of those plants and maximizing their value.
Seth Gray: Second life rich fuel is expected to operate at a thousand degrees Celsius cooler than existing fuels.
Seth Gray: As a crucial safety enhancement a cooler operating temperature of fuel is more stable and reduces the risk of overheating in normal operation Org design basis accidents.
Seth Gray: But safety inefficiency arent the only benefits of.
Seth Gray: A different concept.
Seth Gray: Italic fuel technology could be designed to help reduce global stockpiles of plutonium the ability to incorporate plutonium in metallic fuel could contribute to both energy production and nuclear nonproliferation efforts.
Seth Gray: In addition to our focus on fueling existing nuclear power plants. We are also positioning like bridge fuel could potentially powered the small modular reactors of the future.
Seth Gray: The U S Department of energy funded two separate studies and M. I T and the Texas A&M University to evaluate the use of our fuel in small modular reactors, particularly the new scaled Voyager design.
Seth Gray: Small modular reactors can play a significant role in the future energy mix, providing scalable safe and flexible power solutions for utilities and industries.
Seth Gray: Looking ahead, we remain focused on executing our strategy.
Seth Gray: Treating the field development process, achieving regulatory approvals and establishing commercial arrangements with utilities and other key players in the energy sector to generate revenue from our fuel technology. We believe the opportunity for life is a mix.
Seth Gray: Nuclear fuel was poised to reclaimed its place as a cornerstone of global energy supply. We believe light bridge fuel will be integral to making nuclear energy safer more efficient and more sustainable now called the turn the call over to Andriy Lucia called executive VP for nuclear operations to begin.
Speaker Change: The review of our fuel development activities Andre.
Speaker Change: Thank you SaaS.
Over the past few months have continued to make progress on our fabrication process demonstration efforts a pilot for National Laboratory Anl.
Speaker Change: After achieving the critical milestone of extrusion and AGA clat cylindrical Ron sample of Lionbridge fuel material.
Speaker Change: Just enough from alloy of depleted uranium zirconium in March of this year. We have subsequently completed another extrusion was depleted uranium zirconium alloy using adjusted external parameters.
Speaker Change: Over the next year, we plan to continue this fabrication process demonstration work.
Speaker Change: And conduct a serious of additional extrusion is depleted uranium zirconium alloy before proceeding to extrusion of samples with enriched uranium zirconium alloy.
Speaker Change: Asian based China best react to the environment.
Speaker Change: In addition to our ongoing projects that.
Speaker Change: We are working with ICM on an engineering study to assess the compatibility and suitability of flight bridge fuel for use in Canada reactors.
Speaker Change: Scott will provide additional details on this project.
Speaker Change: Finally in October of this year languished presented a technical paper at the top fuel 2024 conference in Grenoble, France, providing an overview of some of the companies previous fuel development activities.
Speaker Change: There are two other independent technical studies about Lionbridge fueled presented technical conference.
Wireless produced by Massachusetts Institute of technology or the.
Speaker Change: And the other one by structural integrity of associates or as I E.
Speaker Change: <unk> study supported by U S Department of energy nuclear Energy University programs Grant simulated the performance of Lionbridge fuel Aneel scales Voyager small modular reactor.
Speaker Change: This <unk>.
Study conducted under a <unk> gain regulatory research grant evaluated language fuel in the pressurized water reactor kw are under both normal and axiom conditions.
Speaker Change: These U S government funded studies further validate the enhanced safety and performance of Flatbush fuel, particularly its improved performance under extreme conditions.
Speaker Change: Now ask Scott Hawkes, Vice President of engineering to give us additional details on some of these ongoing projects and the initiatives Scott.
Scott Hawkes: Thank you Andre.
Scott Hawkes: The Rotten ICL Nuclear Research Institute in Romania has been conducting an engineering study to assess the initial feasibility of using <unk> fuel and candor reactors.
Scott Hawkes: Results, so far indicate that using our fuel enrichment below 5% uranium 235.
Can provide double the discharge of BARDA of correct Andrew fuel.
Scott Hawkes: The initial engineering study is expected to be completed this year and we expect to perform additional evaluations of <unk> fuel for use in candy reactors in 2025 in future years.
Speaker Change: As Andre mentioned the top fuel 'twenty 'twenty four operates recently Hogan Grenoble, France three papers on Lionbridge few were presented.
Speaker Change: We're just paper and gave an overview of some of the companies previous fuel development activities, including results from an experimental test previously conducted in an overseas test reactor.
Speaker Change: And this test a library of <unk> metallic fuel rod lift endured approximately 24 hours and drought conditions during the radiation and still maintained its structural integrity and global geometry.
Two other papers presented independent studies conducted by MRI T NSA and comprise stimulations of library fuel at our new scale SLR and the PW are respectively.
Speaker Change: According to the MRI study the main advantages of lionbridge over conventional fuel or.
Fuels increased heat transfer area slower operating temperature.
Speaker Change: The higher margins of critical heat flux or CHF.
Speaker Change: The shelf spacing design reduce the radiation induced swelling and lower potential for formation of crowd on the fuel rod cladding.
Speaker Change: According to the study performed by FAA library fueled demonstrate several advantages over conventional fuel and accident conditions.
These advantages include lower peak cladding temperature shorter duration at high temperatures reduced cladding oxidation cladding expresses and sufficient to damage the cladding and enhanced safety margins.
Speaker Change: These studies have confirmed the expected performance of <unk> fuel and provide a basis for continued development in future regulatory licensing efforts.
Speaker Change: I'll turn the call back over to Seth.
Seth Gray: Well, thank you Scott.
Seth Gray: Nuclear power is no longer just an option there.
Seth Gray: There is a growing recognition that nuclear power should play an essential role for meeting the worlds growing power demands.
There have been recent developments in major industries, particularly those in the technology sector that are driving unprecedented demand for energy.
Seth Gray: In particular is fueling this surge datacenters are becoming some of the largest energy consumers in the world.
Seth Gray: To give you an example.
Seth Gray: Some AI data center complex as they're being client they could consume nearly as much electricity as a city the size of New York.
Seth Gray: This demand requires a stable round the clock power source that can scale sustainably and remain carbon free nuclear energy, particularly next generation nuclear technologies could play an important role.
Seth Gray: In the next few months in the past few months, we've seen tech Giants like Amazon, Google and Microsoft make landmark investments in nuclear power, including in the development of small modular reactors for these tech companies. The goal is clear they.
Seth Gray: They need massive uninterrupted power supplies.
Seth Gray: Stain AI workloads.
Seth Gray: <unk> energy is a promising option for meeting those needs in the future renewables alone can meet this demand because they are intermittent.
Nuclear provides the reliable clean and effective power required for these massive projects.
Seth Gray: This resurgence in nuclear power isn't just happening in the United States.
Seth Gray: In recent global forums, such as the United Nations Cop 28 in Dubai last year nuclear Energy took center stage as a critical solution to the climate crisis, many nations, including the United States pledged to Triple global nuclear capacity by 2050.
Seth Gray: These pledges signal a clear recognition that nuclear is essential for reaching net zero emissions and meeting with goals of the Paris agreement.
Speaker Change: Like Rage is active in the international meetings, Scott mentioned his recent paper and presentation at the top fuel conference in France.
Seth Gray: I'm in London today for meetings, and we will go from here to Geneva for the World Economic Forum Advanced Energy solutions, CEO meeting and from their tobacco for Cop 29.
Seth Gray: We believe <unk> is well positioned to support reactors currently in operation and future large and small water cooled reactors by providing the next generation nuclear fuel solution to make those reactors more efficiency.
I'll now turn the call over to Larry Goldman Chief Financial Officer to summarize the company's financial results Alright.
Larry Goldman: Thank you Seth and good morning, everyone for further information regarding our third quarter 2024 financial results and disclosures. Please refer to our earnings release that we filed yesterday as well as our quarterly report on Form 10-Q that we will file later today with the secure.
Larry Goldman: <unk> and Exchange Commission.
Larry Goldman: The company's working capital position was $25 9 million at September 32024 versus $28 3 million at December 31, 2023.
Larry Goldman: Total assets were $27 6 million and total liabilities were $1 2 million at September 32024.
Larry Goldman: Today, we have ample working capital and financial flexibility to support our near term fuel development expenditures.
Larry Goldman: This is very important to like bridge and our stockholders as well as there are 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 to conduct our R&D activities.
Larry Goldman: Total cash and cash equivalents were $26 6 million as compared to $28 6 million at December 31, 2023.
Larry Goldman: A decrease of $2 million for the first nine months ended September 32024.
Larry Goldman: Total cash used in operating activities for the nine months ended September 32024 was $5 7 million, an increase of $1 5 million compared to the $4 2 million for the nine months ended September 32023.
Larry Goldman: This increase was primarily due to increased spending on R&D and G&A expenses and changes in working capital.
Larry Goldman: Total cash provided by financing activities for the nine months ended September 32024, with $3 7 million a decrease of <unk> 8 million compared to the $4 5 million in the nine months ended September 32023.
Larry Goldman: This decrease was due to a decrease in net proceeds from the issuance of common stock by our at the market or ATM facility.
Larry Goldman: We anticipate that our long term fuel development and commercialization timeline.
We remain generally consistent with what we have disclosed in our SEC filings.
Larry Goldman: In support of our long term business and future financing requirements with respect to our fuel development, we expect to continue to see government funding in the future.
Larry Goldman: Along with new strategic alliances that may contain cost sharing contributions and additional funding from others to help fund our R&D activity, leading to the commercialization of <unk> fuel.
Speaker Change: I will now turn the call over to Sherri haul away, our controller, who will go over our P&L financial information for the third quarter 2020 for Sherri.
Sherri: Thank you Larry.
Sherri Haul: Net loss was $2 $7 million for the third quarter ended September 32024, compared to $1 8 million for the third quarter ended September 32023.
Sherri Haul: Total R&D expenses amounted to one $3 million.
Sherri Haul: Three months ended September 32024.
Sherri Haul: <unk> $2.5 million.
Sherri Haul: Third months, ending September 32023, an increase of $8 million.
Sherri Haul: This increase primarily consisted of an increase in I know project labor costs.
R&D expenses a point.
Sherri Haul: $2 million, an increase and centrist energy feed study.
Sherri Haul: $1 million, an increase in allocated employee compensation and employee benefits of <unk> $3 million.
Sherri Haul: Due to an increase in R&D employees.
Sherri Haul: An increase in consulting fees of $1 million and an increase in R&D expenses of $1 million.
Sherri Haul: Total G&A expenses amounted to $1 $7 million for three months ended September 32024, compared to $1 $6 million for three months ended September 32023.
Sherri Haul: The increase of $1 million was primarily due to an increase in employee compensation of <unk>.
Sherri Haul: $1 million and an increase in stock based compensation of $1 million.
Sherri Haul: Offset by a decrease in professional fees of <unk> $1 million.
Sherri Haul: Total other income was <unk> $3 million for the three months ended September 32024 unchanged compared to the three months ended September 32023.
Sherri Haul: The company's interest income earned from the purchase of Treasury bills and from our bank savings account.
Sherri Haul: Three months ended September 32020 for Wisconsin.
Sherri Haul: Compared to the three months ended September 32023.
Seth Gray: Back to you Seth.
Seth Gray: Thank you Sherri I.
Seth Gray: I would like to thank everybody for participating on today's call.
Not received questions submitted by E Mail, we're looking forward to providing additional updates in the meantime, we can be reached at IR at <unk> Dot com stay safe and well goodbye.
Speaker Change: This concludes today's conference call you may now disconnect.
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