Lightbridge Corporation, a management consulting services provider, has expanded its collaborative agreement with Battelle Energy Alliance, LLC, the operator of the Idaho National Laboratory. The modification, announced today, increases the funds payable by Lightbridge for Battelle's expenses and staff time by approximately $294,416, raising the total estimated project cost to $2,003,048.
This modification, known as Modification No. 3, is part of a Strategic Partnership Project Agreement that originated on December 9, 2022, and was subsequently amended on May 23, 2023, and March 26, 2024. The partnership is designed to advance Lightbridge's proprietary nuclear fuel technology, Lightbridge Fuel™, which involves the fabrication of a delta-phase enriched uranium/zirconium alloy ingot and its extrusion into fuel coupon specimens.
Under the agreement, Battelle will also construct irradiation capsule hardware, assemble the experiment with the fuel coupons, and conduct the irradiation in the Advanced Test Reactor (ATR). The Department of Energy (DOE) is contributing feedstock materials for the fabrication and extrusion processes.
The initial term of the agreement spans seven years from its effective date, with Lightbridge responsible for most expenses. Including this latest modification, Lightbridge's cash payments to Battelle under both the Strategic Partnership Project Agreement and the Cooperative Research and Development Agreement are estimated at around $4.6 million, on a cost-reimbursable basis, excluding project contingencies.
In other recent news, Lightbridge Corporation reported a net loss of $2.4 million in its second quarter 2024 financial results, mainly attributed to increased Research and Development (R&D) and General and Administrative (G&A) expenses. Despite the loss, the company made significant progress in its nuclear fuel development program. The company also amended its at-the-market equity offering sales agreement, a move that pertains to the sale of common stock.
Lightbridge is looking forward to the ADVANCE Act's potential to expedite regulatory reviews, which could benefit its nuclear fuel technologies. The company plans to invest approximately $8.3 million in R&D over the next 12 to 15 months, with financing expected from government support and strategic alliances.
InvestingPro Insights
Lightbridge Corporation's recent expansion of its collaborative agreement with Battelle Energy Alliance reflects the company's commitment to advancing its nuclear fuel technology. This strategic move aligns with several key insights from InvestingPro.
According to InvestingPro data, Lightbridge has a market capitalization of $106.46 million, indicating its relatively small size in the industry. This could suggest potential for growth as the company develops its proprietary technology. InvestingPro Tips highlight that Lightbridge holds more cash than debt on its balance sheet, which may provide financial flexibility for research and development initiatives like the one described in the article.
The company's stock has shown strong performance recently, with InvestingPro reporting a 105.9% price return over the last month and a 126.34% return over the past six months. This positive momentum could reflect investor optimism about Lightbridge's strategic partnerships and technological advancements.
However, it's important to note that Lightbridge is not currently profitable, with a negative operating income of $10.68 million over the last twelve months. This aligns with the InvestingPro Tip indicating that the company is not profitable over this period, which is not uncommon for firms heavily invested in research and development.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Lightbridge Corporation, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.