Lightbridge Corporation (LTBR) Earnings Call Transcript

I will start with the sample removal at the Advanced Test Reactor, which is the milestone Seth opened with. On May 6, the first batch of our fuel material samples was removed from the ATR. Twenty-four Lightbridge personnel were on site for it, including our full-time fuel engineering team and senior management. The following day, we met with the Idaho National Laboratory personnel leading the project, including Laboratory Director John Wagner and Associate Laboratory Director Jess Gien, to review progress and the path forward across the multiple LightBridge projects underway at the Laboratory. These samples were irradiated under the fission-accelerated steady-state testing method, or FAST, an accelerated irradiation technique that uses highly enriched uranium to reach high burn-up conditions faster than conventional test methods. AST was conceived and developed at Idaho National Laboratory and Boone Beausoleil, our Director of Materials, played a key role on the IML team that originated the concept and developed the underlying methodology during his prior tenure there. The samples are now cooling down, a process that takes several months, and post-radiation examination is expected to begin later this year. The examination will collect data on fundamental material properties at various burn-up levels. Practically, this is what is required to validate and verify our fuel performance models. The framework Kyle Perrin presented at TMS 2026 earlier this year was built on measured data from our own coupon samples. The post-radiation examination data extends that framework into the burn-up regime that matters for commercial fuel cycle. and becomes part of the basis of our licensing work. The second item I want to cover is our partnership with Students with ScanPower, announced in May. Together, we're developing an extension of the Studsvig CMS5 core management suite to model the light bridge fuel design. The significance here is practical. Utilities plan their cores, load their fuel, and manage their fuel cycles using established software. Sudsvig has over 75 years of experience in nuclear technology, employs approximately 540 people across seven countries, and its core monitoring and fuel optimization software is already adopted by customers worldwide. A utility evaluating lightbridge fuel needs to be able to model it in the tools its engineers already operate, and its regulator needs to see results from codes with an established pedigree. This partnership puts our fuel inside that ecosystem rather than asking the industry to adopt something bespoke, and it supports our licensing work in parallel.

Back to you Seth. Thank you very much Scott and congratulations to Scott for as of today being Senior Vice President and Chief Technology Officer. In June, I represented Lightbridge at the White House for the launch of UPRISE, the Utility Power Reactor Incremental Scaling Effort at the Eisenhower Executive Office Building. U.S. Department of Energy initiative targeting approximately 5 gigawatts of additional nuclear capacity from reactors that are already operating. And it advances the executive orders the President issued in May of last year, directing the Department to facilitate up rates across the existing fleet. That initiative recognizes something straightforward. The fastest and least expensive nuclear-generated megawatts this country can add to the grid are the ones we will draw from reactors that are already operating. Lightbridge fuel is being designed to deliver among the largest power uprates of available to the operating pressurized water reactor fleet. The federal government has now put an explicit target on the commercial pathway we have been building toward for years. To make sure we are building toward what utilities actually need, we launched a reconstituted nuclear utility fuel advisory board in June. The Board provides us with direct input from utility industry representatives on fuel development priorities, light licensing considerations, deployment strategies, operational requirements, and commercialization planning, I want to be clear that the Board serves in an advisory capacity only and does not constitute a commitment by any participant to purchase, license, or deploy our fuel. What it does is put experts from companies that operate nuclear power plants in the room while decisions are still being made, rather than after decisions are made. Commercial deployment also requires fuel material, and that supply must be arranged for years in advance. In July, we took steps in that direction by signing a memorandum of understanding with Quadrant Nuclear Industries, QNI, to establish a framework for collaboration on the long-term supply of high assay, low enriched uranium, halo. Under the MOU, we will engage in discussions regarding potential supply and long-term offtake of HALU produced at Q&I's planned Vanguard facility at Idaho National Laboratory, which is designed to produce up to 18 metric tons of HALU annually when it reaches full capacity. The companies intend to collaborate on fuel supply planning, technical interface requirements, commercial structuring, regulatory coordination, and logistics. The MOU is non-binding and does not establish pricing, quantity, or exclusivity commitments into any binding terms would be subject to a definitive agreement. It is the beginning of that work, and beginning it now is the point. We continue to believe the prospects for growth in nuclear power are the strongest they have ever been. There are approximately 440 operating power reactors worldwide today. To triple nuclear power globally and quadruple it in the United States by 2050, the world will need more power from reactors already operating, not only from those still to be built. Lightbridge Fuel is designed to deliver exactly that within the same time. same-sized cores of new reactors and plants that exist today, with even greater efficiency. One final note to our shareholders, earlier this week, Lightbridge was added to the Selective Global Uranium and Nuclear Components Total Return Index, the benchmark tracked by the Global X Uranium ETF. broadening the investor base with exposure to the nuclear supply chain. I'll now turn the call over to Larry Goldman, Chief Financial Officer, for a summary of the company's results. Larry? Thank you.

Thank you, Seth, and good afternoon, everyone. I'd like to remind listeners that our detailed financial results are included in our earnings release issued yesterday after market close and in our Form 10-Q that will be filed with the Securities and Exchange Commission this week. Those materials are available on the investor relations section of the Lightbridge Corporation website and on the U.S. Security and Exchange Commission website. I encourage everyone to review those documents for a full discussion of our financial statements, risk factors, and related disclosures. AS OF JUNE 30, 2026, WE HELD APPROXIMATELY $237.5 MILLION IN CASH AND CASH EQUIVALENTS, compared to approximately $201.9 million at December 31st, 2025. This positions us with substantial financial resources sufficient to fund our operations for an extended period of time. LOOKING AT OUR CASH FLOWS FOR THE FIRST HALF OF 2026, WE USED APPROXIMATELY $8.3 MILLION IN OPERATIONS, REFLECTING THE CONTINUED INVESTMENT IN OUR FUEL DEVELOPMENT PROGRAM AND EXPANDED TEAM. ON THE FINANCING SIDE, WE GENERATED APPROXIMATELY $43.9 MILLION IN NET CASH, A DECREASE OF $19.6 MILLION FROM THE 63.5 MILLION WE RAISED FROM FINANCING ACTIVITIES FOR THE SAME PERIOD LAST YEAR. THIS YEAR'S FINANCING ACTIVITIES WERE DRIVEN BY 44.4 MILLION AND NET PROCEEDS FROM THE ISSUANCE OF APPROXIMATELY 3.8 MILLION SHARES OF COMMON STOCK UNDER OUR AT THE MARKET OR ATM FACILITY. PARCELY OFFSET BY .5 MILLION OF TAX WITHHOLDING PAYMENTS ON THE VESTING OF EQUITY AWARDS. We continue to evaluate funding opportunities to support our long-term fuel development activities. These include potential strategic partnerships, government grants, and contracts, and as appropriate, additional capital market transactions. Our capital allocation strategy remains disciplined and milestone driven. We direct resources toward the activities that advance our fuel towards regulatory licensing and commercialization, expansion of our in-house team, radiation testing, post-irradiation examination, computational infrastructure, and safety analysis development, while maintaining a strong balance sheet that gives us flexibility to pursue opportunities as they arise. I will now turn the call over to Leslie Mills, our controller, who will review our P&L for the first half of 2026. Leslie? LESLIE MILLS, P.N.: Hi, everyone.

Thank you, Larry. Net loss was $12.1 million for the first half of 2026 compared to $8.3 million for the first half of 2025. R&D expenses amounted to $7.3 million for the six months ended June 30, 2026, compared to $3.3 million for the six months ended June 30, 2025, an increase of $4 million. The increase The increase was primarily due to a $2.4 million increase in employee compensation and stock-based compensation, reflecting an increase in new hires, increased employee bonuses, and several new stock-based awards, including performance stock awards. A $.7 million increase in IT expenses, which included additional computer hardware, software and operating expenses related to the company's high performance computer. A $0.4 million increase in R&D project development costs related to cladding, critical heat flux testing, safety analysis, and feasibility studies. And a $0.2 million increase in INL project labor costs as we entered into additional agreement modifications and new PTSs. Total stock-based compensation. included in research and development expenses was $1.1 million and $0.4 million for the six months into June 30, 2026 and 2025, respectively. Total G&A expenses were $8 million for the six months ended June 30, 2026, compared to $6 million for the six months ended June 30, 2025. The $2 million increase was primarily due to a $1.5 million increase in employee compensation and stock-based compensation. compensation for employees, contractors, and directors, reflecting new hires, increased bonuses, and several new stock-based awards, including performance stock awards. Total stock-based compensation included in G&A expenses was $2.8 million and $1.6 million for the six months into June 30, 2026 and June 30, 2025, respectively. Total other income was $3.2 million for the six months into June 30, 2026, compared to $1 million for the six months into June 30, 2025. income consisted of interest income earned from Treasury bills and our bank savings account, driven by higher average cash balances.

back to you, Seth. Thank you, Leslie. No questions have been submitted for the call. I want to thank everyone for participating in today's call and standing by during our bit of technical difficulties with the We appreciate the continued support of our shareholders and the dedication of our growing team and partners. We look forward to updating you on our progress in the coming quarters. In the meantime you can reach us at ir at ltbridge.com Stay safe and well. Goodbye.

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect. This live transcript is auto-generated without human intervention or review. [Call has ended.]