Published on March 26, 2009
FOR
IMMEDIATE RELEASE
Contact:
Peter
Charles
Thorium
Power, Ltd.
Tel:
(571) 730-1200
Email:
pcharles@thoriumpower.com
Thorium
Power Reports Fourth Quarter and Full Year 2008 Financial Results
and
Provides
Business Update
Achieves
Full Year 2008 Adjusted Net Income of $3.7 million
McLEAN, VA — March 26, 2009 — Thorium
Power, Ltd. (OTCBB:THPW), the leading developer of non-proliferative
nuclear fuel technology and provider of comprehensive advisory services for
emerging nuclear programs, today announced financial results for the fourth
quarter and year ended December 31, 2008.
Revenue
for the three months ended December 31, 2008 was $7.4 million. Operating loss
for the three months ended December 31, 2008 was $2.4 million. Operating loss
for the fourth quarter included approximately $2.0 million of non-cash items.
Net loss for the three months ended December 31, 2008 was $1.9 million.
Excluding the impact of non-cash items, adjusted net income for the three months
ended December 31, 2008 would have been $0.1 million (see “About Non-GAAP
Financial Measures” near the end of this release).
Revenue
for the twelve months ended December 31, 2008 was $22.2 million. Operating loss
for the twelve months ended December 31, 2008 was $3.0 million. Operating loss
for the twelve months ended December 31, 2008 included approximately $6.6
million of non-cash items. Net loss for the twelve months ended December 31,
2008 was $2.9 million. Excluding the impact of non-cash items,
adjusted net income for the twelve months ended December 31, 2008 would have
been $3.7 million (see “About Non-GAAP Financial Measures” near the end of this
release).
As of
December 31, 2008, the company had approximately $5.6 million of cash and cash
equivalents and $6.8 million of working capital.
Seth
Grae, Chief Executive Officer, commented: “It is clear to us that nuclear power
is gaining favor globally as a viable, cost-effective, carbon-emissions-free
alternative to fossil fuels. We have assembled an industry-leading
team that includes the top talent from within the nuclear industry, and we look
to play an important role as nuclear power is developed and deployed
worldwide.”
“Since
launching our nuclear advisory services in early 2008, the practice has provided
over $22 million in revenues. Our proprietary, nuclear fuel designs are also
progressing. We are moving forward with preparations of preliminary licensing
documentation for our VVER fuel assembly design required for regulatory approval
of our lead-test assembly testing in a VVER-1000 reactor. As part of these
activities, we plan to conduct mechanical tests of certain key fuel assembly
components as well as perform additional thermal-hydraulic experiments on a fuel
assembly model. The critical technological activities now underway comprise key
elements of the pre-commercialization, fuel qualification and verification
process.”
Further,
as we seek to expand the scope of our technology development towards
western-style reactor fuel designs, we are encouraged by the positive
developments regarding the use of thorium as the basis for non-proliferative,
low-waste fuel designs both in the U.S. and abroad. In October 2008,
Senator Orrin Hatch (R-UT) and Senate Majority Leader Harry Reid (D-NV)
introduced the ‘2008 Thorium Energy Independence and Security Act’ to strengthen
the technical capability of the United States to assess thorium-based nuclear
fuels for commercial purposes. The introduction of this legislation illustrates
increased awareness of and growing support for thorium as an alternative to
traditional nuclear fuel designs for the generation of
electricity.”
Mr. Grae
concluded: “From a strategic and long-term perspective, we believe the future of
nuclear power lies in timely, essential and viable solutions. That is why we are
playing a leading role in providing the world with an advanced blueprint for
clean nuclear power generation as well as innovative nuclear fuel
designs.”
About
Non-GAAP Financial Measures
This
press release contains non-GAAP financial measures for earnings that exclude
non-cash items. Net income excluding non-cash items is not a measure of
performance calculated in accordance with generally accepted accounting
principles in the United States (“GAAP”). The Company believes the presentation
of net income excluding non-cash expense is relevant and useful by enhancing the
readers’ ability to understand the Company’s operating performance. The
Company’s management utilizes net income excluding non-cash expense as
a means to measure operating performance. The table below reconciles adjusted
net income excluding non-cash expense, a
non-GAAP measure, to GAAP net income for the three months and year ended
December 31, 2008.
|
(in thousands)
|
||||||||
|
Year Ended
|
Three Months
Ended
|
|||||||
|
December 31,
|
December 31,
|
|||||||
|
2008
|
2008
|
|||||||
|
GAAP
Net loss
|
$ | (2,859 | ) | $ | (1,927 | ) | ||
|
Adjustments:
|
||||||||
|
Cost
of Sales – non-cash employee compensation
|
856 | 548 | ||||||
|
Operating
Expenses – non-cash employee compensation
|
5,690 | 1,498 | ||||||
|
Adjusted
Net Income
|
$ | 3,687 | $ | 119 | ||||
About
Thorium Power, Ltd.
Thorium
Power is a pioneering U.S. nuclear energy company based in McLean, VA. The
Company develops non-proliferative nuclear fuel technology and provides
comprehensive advisory services for emerging nuclear programs based on a
philosophy of transparency, non-proliferation, safety and operational
excellence. Thorium Power’s technologies, which are aimed at both existing and
future reactors, include nuclear fuel designs optimized to address key concerns
regarding traditional nuclear power, including proliferation of weapons usable
nuclear materials and reduction of nuclear waste. The Company maintains a
seasoned team with unparalleled experience from the nuclear energy industry,
regulatory and government affairs, non-proliferation and diplomacy. It leverages
those broad and integrated capabilities by offering consulting and strategic
advisory services to commercial entities and governments with a need to
establish or expand nuclear industry capabilities and infrastructure. Thorium
Power also maintains long-standing relationships with leading Russian nuclear
entities, providing expert resources and facilities for its nuclear fuel
development activities. The Company seeks and forms partnerships with
participants in the global nuclear industry, allowing it to address a wide range
of international opportunities.
DISCLAIMER
This
press release may include certain statements that are not descriptions of
historical facts, but are forward-looking statements. These forward-looking
statements may include the description of our plans and objectives for future
operations, assumptions underlying such plans and objectives, statements
regarding revenues in the range of $22 million to $27 million and other
statements identified by forward-looking terminology such as "may," "expects,"
"believes," "anticipates," "intends," "expects," "projects" or similar terms,
variations of such terms or the negative of such terms. There are a number of
risks and uncertainties that could cause actual results to differ materially
from the forward-looking statements made herein. Such information is based upon
various assumptions made by, and expectations of, our management that were
reasonable when made but may prove to be incorrect. All of such assumptions are
inherently subject to significant economic and competitive uncertainties and
contingencies beyond our control and upon assumptions with respect to the future
business decisions which are subject to change. Accordingly, there can be no
assurance that actual results will meet expectations and actual results may vary
(perhaps materially) from certain of the results anticipated
herein. Reference is made to the risk factors contained in our
latest annual report as filed with the Securities and Exchange Commission. These
factors may cause actual results to vary from the forward-looking statements
contained in this release.
Further
information is available on Thorium Power, Ltd.'s website at http://www.thoriumpower.com
(tables
follow)
Thorium
Power Ltd.
Condensed
Consolidated Balance Sheets
|
December
31
|
||||||||
|
2008
|
2007
|
|||||||
|
ASSETS
|
||||||||
|
Current
Assets
|
||||||||
|
Cash
and cash equivalents
|
$ | 5,580,244 | $ | 9,907,691 | ||||
|
Restricted
cash
|
650,000 | 0 | ||||||
|
Accounts
receivable - project revenue and reimbursable project
costs
|
5,357,804 | 0 | ||||||
|
Prepaid
expenses & other current assets
|
394,315 | 204,035 | ||||||
|
Deferred
project costs
|
0 | 371,631 | ||||||
|
Total
Current Assets
|
11,982,363 | 10,483,357 | ||||||
|
Property
Plant and Equipment -net
|
108,121 | 30,676 | ||||||
|
Other
Assets
|
||||||||
|
Patent
costs - net
|
217,875 | 217,875 | ||||||
|
Security
deposits
|
138,418 | 2,049 | ||||||
|
Total
Other Assets
|
356,293 | 219,924 | ||||||
|
Total
Assets
|
$ | 12,446,777 | $ | 10,733,957 | ||||
|
LIABILITIES
AND STOCKHOLDERS EQUITY
|
||||||||
|
Current
Liabilities
|
||||||||
|
Accounts
payable and accrued liabilities
|
$ | 5,138,979 | $ | 2,122,649 | ||||
|
Current
portion long term debt
|
0 | 4,651 | ||||||
|
Customer
deposit
|
0 | 1,206,875 | ||||||
|
Deferred
revenue
|
0 | 3,793,125 | ||||||
|
Total
Current Liabilities
|
5,138,979 | 7,127,300 | ||||||
|
Notes
Payable - long term
|
0 | 5,782 | ||||||
|
Total
Liabilities
|
5,138,979 | 7,133,082 | ||||||
|
Commitments
and contingencies
|
||||||||
|
Stockholders'
Equity
|
||||||||
|
Preferred
stock, $0.001 par value, 50,000,000 authorized shares, no shares issued
and outstanding
|
- | - | ||||||
|
Common
stock, $0.001par value, 500,000,000 authorized, 301,493,084 shares issued
and outstanding at December 31, 2008 and 299,014,182 shares
issued and outstanding at December 31, 2007
|
301,493 | 299,014 | ||||||
|
Additional
paid in capital - stock and stock equivalents
|
48,607,451 | 41,791,735 | ||||||
|
Deficit
|
(41,489,974 | ) | (38,630,572 | ) | ||||
|
Common
stock reserved for issuance, 484,055 shares and 2,000,000 shares at
December 31, 2008 and 2007, respectively
|
114,787 | 590,000 | ||||||
|
Accumulated
other comprehensive income
|
0 | 30,143 | ||||||
|
Deferred
stock compensation
|
(225,959 | ) | (479,445 | ) | ||||
|
Total
Stockholders' Equity
|
7,307,798 | 3,600,875 | ||||||
|
Total
Liabilities and Stockholders' Equity
|
$ | 12,446,777 | $ | 10,733,957 | ||||
The
accompanying notes are an integral part of these consolidated financial
statements
Thorium
Power Ltd.
Consolidated
Statements of Operations and Comprehensive Loss
|
For the Years Ended
|
||||||||
|
December 31,
|
||||||||
|
2008
|
2007
|
|||||||
|
Revenue:
|
||||||||
|
Consulting
revenue
|
$ | 22,219,905 | $ | 0 | ||||
|
Total
Revenue
|
22,219,905 | 0 | ||||||
|
Cost
of Consulting Services Provided
|
11,088,723 | 0 | ||||||
|
Gross
Margin
|
11,131,182 | 0 | ||||||
|
Operating
Expenses
|
||||||||
|
General
and administrative
|
6,958,165 | 6,259,317 | ||||||
|
Research
and development expenses
|
1,565,594 | 756,755 | ||||||
|
Stock-based
compensation
|
5,649,835 | 4,745,098 | ||||||
|
Total
Operating Expenses
|
14,173,594 | 11,761,170 | ||||||
|
Operating
loss
|
(3,042,412 | ) | (11,761,170 | ) | ||||
|
Other
Income and (Expenses)
|
||||||||
|
Interest
income
|
162,893 | 367,187 | ||||||
|
Other
income and expenses
|
30,143 | (58,600 | ) | |||||
|
Total
Other Income and Expenses
|
193,036 | 308,587 | ||||||
|
Net
loss before income taxes
|
(2,849,376 | ) | (11,452,583 | ) | ||||
|
Income
taxes
|
10,026 | 0 | ||||||
|
Net loss
|
(2,859,402 | ) | (11,452,583 | ) | ||||
|
Other
Comprehensive Income (Loss)
|
||||||||
|
Unrealized
gain on marketable securities
|
0 | 11,282 | ||||||
|
Total
Comprehensive Loss
|
$ | (2,859,402 | ) | $ | (11,441,301 | ) | ||
|
Net
Loss Per Common Share, Basic and diluted
|
$ | (0.01 | ) | $ | (0.04 | ) | ||
|
Weighted
Average Number of shares outstanding for the period used to compute per
share data
|
300,070,925 | 296,666,502 | ||||||
The
accompanying notes are an integral part of these consolidated financial
statements
Thorium
Power Ltd.
Consolidated
Statements of Cash Flows
|
For the Years Ended
|
||||||||
|
December 31,
|
||||||||
|
2008
|
2007
|
|||||||
|
Operating
Activities:
|
||||||||
|
Net
Loss
|
$ | (2,859,402 | ) | $ | (11,452,583 | ) | ||
|
Adjustments
to reconcile net loss from operations to net cash used in operating
activities:
|
||||||||
|
Stock
based compensation
|
6,546,493 | 4,978,981 | ||||||
|
Depreciation
and amortization
|
24,668 | 8,582 | ||||||
|
Realized
gain on sale of securities
|
(30,143 | ) | 0 | |||||
|
Settlement
Expense
|
0 | 58,601 | ||||||
|
Changes
in non-cash operating working capital items:
|
||||||||
|
Accounts
receivable - fees and reimburseable project costs
|
(5,357,804 | ) | 0 | |||||
|
Prepaid
expenses and other current assets
|
(190,280 | ) | 321,966 | |||||
|
Security
deposits
|
(136,369 | ) | 0 | |||||
|
Accounts
payable, accrued liabilities and other current liabilities
|
1,809,455 | 1,293,951 | ||||||
|
Deferred
revenue
|
(3,793,125 | ) | 3,793,125 | |||||
|
Deferred
project costs - net
|
371,631 | 0 | ||||||
|
Net
Cash Used In Operating Activities
|
(3,614,876 | ) | (997,377 | ) | ||||
|
Investing
Activities:
|
||||||||
|
Purchase
of office equipment
|
(102,113 | ) | (17,968 | ) | ||||
|
Net
Cash Used In Investing Activities
|
(102,113 | ) | (17,968 | ) | ||||
|
Financing
Activities:
|
||||||||
|
Proceeds
from issue of common shares
|
49,975 | 0 | ||||||
|
Payments
on notes payable and other
|
(10,433 | ) | (4,739 | ) | ||||
|
Restricted
cash
|
(650,000 | ) | 0 | |||||
|
Net
Cash Used In Financing Activities
|
(610,458 | ) | (4,739 | ) | ||||
|
Net
Decrease In Cash and Cash Equivalents
|
(4,327,447 | ) | (1,020,084 | ) | ||||
|
Cash
and Cash Equivalents, Beginning of Year
|
9,907,691 | 10,927,775 | ||||||
|
Cash
and Cash Equivalents, End of Year
|
$ | 5,580,244 | $ | 9,907,691 | ||||
|
Supplemental
Disclosure of Cash Flow Information
|
||||||||
|
Cash
paid during the year:
|
||||||||
|
Interest
paid
|
$ | 0 | $ | 876 | ||||
|
Income
taxes paid
|
$ | 10,026 | $ | 0 | ||||
|
Non-cash
transactions
|
||||||||
|
Conversion
of liabilities to equity
|
$ | 0 | $ | 278,441 | ||||
The
accompanying notes are an integral part of these consolidated financial
statements
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