Published on May 12, 2009
Exhibit
99.1
FOR
IMMEDIATE RELEASE
Contact:
Peter
Charles
Thorium
Power, Ltd.
Tel:
(571) 730-1213
Email:
pcharles@thoriumpower.com
Thorium
Power Reports First Quarter 2009 Financial Results
and
Provides Business Update
McLEAN, VA — May 12, 2009 — Thorium
Power, Ltd. (OTCBB: THPW), the leading developer of non-proliferative
nuclear fuel technology and provider of comprehensive advisory services for
civil nuclear energy programs, today announced financial results for the first
quarter ended March 31, 2009.
Revenue
for the three months ended March 31, 2009 was $2.9 million compared to $3.8
million for the first quarter of 2008. Revenues for the three months
ended March 31, 2009 and March 31, 2008 were generated by the Company’s
consulting and strategic advisory services business segment. The
variation in revenue reflects the uneven nature of consulting projects and the
timing of revenues recognized on the respective projects. Operating
loss for the three months ended March 31, 2009 was $1.5 million compared to an
operating loss of $846,389 for the same period in 2008. Operating
loss for the first quarter included approximately $1.3 million of non-cash items
versus $1.4 in the comparable period last year. Net loss for the
three months ended March 31, 2009 was $1.5 million compared to a loss of
$787,935 in the first quarter of 2008. Excluding the impact of
non-cash items, adjusted net loss for the three months ended March 31, 2009
would have been $243,486 compared to adjusted net income of $578,879 for the
same period in 2008 (see “About Non-GAAP Financial Measures” near the end of
this release).
As of
March 31, 2009, the company had approximately $4.4 million of cash and cash
equivalents and $6.6 million of working capital.
Seth
Grae, Chief Executive Officer, commented: “We are pleased with the continued
progress of our fuel technology development and our consulting and strategic
advisory services. On the technology front, we continue to make
strides in our fuel research and development program. We have now entered the
fuel qualification/pre-commercialization phase and the post-irradiation testing
currently being conducted will provide additional verification of the safety,
efficiency and proliferation resistance of our proprietary fuel designs.
Completion of this test phase will be a significant step forward toward
commercial reactor demonstrations and the subsequent regulatory licensing of our
fuel designs for pressurized water reactors.
Regarding
our consulting and strategic advisory services, we are pleased with the
continued confidence that the United Arab Emirates (UAE) has placed in Thorium
Power, as well as the positive reception that the program is generating across
the region and the globe.”
Mr. Grae
concluded: “We are confident that nuclear power will play a major role in global
power generation and that our vision of delivering safe, transparent, and
commercially viable non-proliferative civil nuclear power to the market will be
realized.”
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 (loss) for
the three months ended March 31, 2009 and March 31, 2008.
|
|
||||||||
|
Three
Months
Ended
|
Three
Months
Ended
|
|||||||
|
March 31,
|
March 31,
|
|||||||
|
2009
|
2008
|
|||||||
|
GAAP
Net loss
|
$
|
(1,522,461
|
)
|
$
|
(787,935
|
)
|
||
|
Adjustments:
|
||||||||
|
Expense
- non-cash employee compensation
|
1,272,971
|
1,363,803
|
||||||
|
Expense
- depreciation
|
6,004
|
3,011
|
||||||
|
Adjusted
Net Income (Loss)
|
$
|
(243,486)
|
$
|
578,879
|
||||
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, 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
|
March
31,
|
December
31,
|
|||||||
|
2009
|
2008
|
|||||||
|
(Unaudited)
|
||||||||
|
ASSETS
|
||||||||
|
Current
Assets
|
||||||||
|
Cash
and cash equivalents
|
$ | 4,375,361 | $ | 5,580,244 | ||||
|
Restricted
cash
|
650,000 | 650,000 | ||||||
|
Accounts
receivable - project revenue and reimbursable project
costs
|
4,319,212 | 5,357,804 | ||||||
|
Prepaid
expenses & other current assets
|
797,097 | 394,315 | ||||||
|
Total
Current Assets
|
10,141,670 | 11,982,363 | ||||||
|
Property
Plant and Equipment –net
|
102,117 | 108,121 | ||||||
|
Other
Assets
|
||||||||
|
Patent
costs – net
|
234,277 | 217,875 | ||||||
|
Security
deposits
|
122,825 | 138,418 | ||||||
|
Total
Other Assets
|
357,102 | 356,293 | ||||||
|
Total
Assets
|
$ | 10,600,889 | $ | 12,446,777 | ||||
|
LIABILITIES
AND STOCKHOLDERS EQUITY
|
||||||||
|
Current
Liabilities
|
||||||||
|
Accounts
payable and accrued liabilities
|
$ | 3,542,581 | $ | 5,138,979 | ||||
|
Total
Liabilities
|
3,542,581 | 5,138,979 | ||||||
|
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, 301,841,722 shares issued
and outstanding at March 31, 2009 and 301,493,084 issued and
outstanding at December 31, 2008
|
301,842 | 301,493 | ||||||
|
Additional
paid in capital - stock and stock equivalents
|
49,902,488 | 48,607,451 | ||||||
|
Deficit
|
(43,012,435 | ) | (41,489,974 | ) | ||||
|
Common
stock reserved for issuance, 152,174 shares and 484,055 shares at March
31, 2009 and December 31, 2008, respectively
|
35,000 | 114,787 | ||||||
|
Deferred
stock compensation
|
(168,587 | ) | (225,959 | ) | ||||
|
Total
Stockholders' Equity
|
7,058,308 | 7,307,798 | ||||||
|
Total
Liabilities and Stockholders' Equity
|
$ | 10,600,889 | $ | 12,446,777 | ||||
Thorium
Power Ltd.
Consolidated
Statements of Operations and Comprehensive Loss
(Unaudited)
|
Three
Months Ended
|
||||||||
|
March
31,
|
||||||||
|
2009
|
2008
|
|||||||
|
Revenue:
|
||||||||
|
Consulting
Revenue
|
$ | 2,944,053 | $ | 3,815,125 | ||||
|
Cost
of Consulting Services Provided
|
1,748,518 | 1,648,004 | ||||||
|
Gross
Margin
|
1,195,535 | 2,167,121 | ||||||
|
Operating
Expenses
|
||||||||
|
General
and administrative
|
1,037,495 | 1,260,186 | ||||||
|
Research
and development expenses
|
453,805 | 389,521 | ||||||
|
Stock-based
compensation
|
1,225,186 | 1,363,803 | ||||||
|
Total
Operating Expenses
|
2,716,486 | 3,013,510 | ||||||
|
Operating
Loss
|
(1,520,951 | ) | (846,389 | ) | ||||
|
Other
Income and (Expenses)
|
||||||||
|
Interest
income
|
3,028 | 89,282 | ||||||
|
Other
income and expenses
|
(4,538 | ) | 0 | |||||
|
Total
Other Income and Expenses
|
(1,510 | ) | 89,282 | |||||
|
Net
Loss before Income Taxes
|
(1,522,461 | ) | (757,107 | ) | ||||
|
Income
taxes
|
0 | 30,828 | ||||||
|
Net Loss
|
(1,522,461 | ) | (787,935 | ) | ||||
|
Other
Comprehensive Income (Loss)
|
||||||||
|
Unrealized
loss on marketable securities
|
0 | (131,723 | ) | |||||
|
Total
Comprehensive Loss
|
$ | (1,522,461 | ) | $ | (919,658 | ) | ||
|
Net
Loss Per Common Share, Basic and diluted
|
$ | (0.01 | ) | $ | (0.00 | ) | ||
|
Weighted
Average Number of Shares Outstanding For The Period Used To Compute Per
Share Data
|
301,667,403 | 299,064,014 | ||||||
Thorium
Power Ltd.
Consolidated
Statements of Cash Flows
(Unaudited)
|
Three
months ended
|
||||||||
|
March
31,
|
||||||||
|
2009
|
2008
|
|||||||
|
Operating
Activities:
|
||||||||
|
Net
Loss
|
$ | (1,522,461 | ) | $ | (787,935 | ) | ||
|
Adjustments
to reconcile net loss from operations to net cash used in operating
activities:
|
||||||||
|
Stock
based compensation
|
1,272,971 | 1,363,803 | ||||||
|
Depreciation
and amortization
|
6,004 | 3,011 | ||||||
|
Loss
on marketable securities - available for sale
|
0 | (131,723 | ) | |||||
|
Changes
in non-cash operating working capital items:
|
||||||||
|
Accounts
receivable - fees and reimbursable project costs
|
1,038,592 | 0 | ||||||
|
Prepaid
expenses and other current assets
|
(387,189 | ) | (28,123 | ) | ||||
|
Accounts
payable, accrued liabilities and other current liabilities
|
(1,596,398 | ) | (190,541 | ) | ||||
|
Deferred
revenue
|
0 | (3,793,125 | ) | |||||
|
Deferred
project costs – net
|
0 | 319,902 | ||||||
|
Net
Cash Used In Operating Activities
|
(1,188,481 | ) | (3,244,731 | ) | ||||
|
Investing
Activities:
|
||||||||
|
Patent
costs
|
(16,402 | ) | 0 | |||||
|
Net
Cash Used In Investing Activities
|
(16,402 | ) | 0 | |||||
|
Financing
Activities:
Proceeds
from issue of common shares
|
0 | 49,975 | ||||||
|
Payments
on notes payable and other
|
0 | (10,433 | ) | |||||
|
Net
Cash Used In Financing Activities
|
0 | 39,542 | ||||||
|
Net
Decrease In Cash and Cash Equivalents
|
(1,204,883 | ) | (3,205,189 | ) | ||||
|
Cash
and Cash Equivalents, Beginning of Period
|
5,580,244 | 7,910,766 | ||||||
|
Cash
and Cash Equivalents, End of Period
|
$ | 4,375,361 | $ | 4,705,577 | ||||
|
Supplemental
Disclosure of Cash Flow Information
|
||||||||
|
Cash
paid during the year:
|
||||||||
|
Interest
paid
|
$ | 0 | $ | 183 | ||||
|
Income
taxes paid
|
$ | 266,000 | $ | 30,828 | ||||
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