Published on August 10, 2009
Exhibit 99.1
FOR
IMMEDIATE RELEASE
Contact:
Peter
Charles
Thorium
Power, Ltd.
Tel:
(571) 730-1213
Email:
pcharles@thoriumpower.com
Thorium
Power Reports Second Quarter 2009 Financial Results
and
Provides Business Update
McLEAN, VA — August 10, 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 second quarter and six months ended June 30, 2009.
Revenue
for the three months ended June 30, 2009 was $3.4 million compared to $4.3
million for the second quarter of 2008. Revenues for the three months
ended June 30, 2009 and June 30, 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 June 30, 2009 was approximately $1.4 million compared to
an operating loss of $611,000 for the same period in 2008. Operating
loss for the second quarter included approximately $1.3 million of non-cash
items versus $1.4 million in the comparable period last year. Net
loss for the three months ended June 30, 2009 was approximately $1.3 million
compared to a loss of $997,000 in the second quarter of
2008. Excluding the impact of non-cash items, adjusted net loss for
the three months ended June 30, 2009 would have been $93,786 compared to
adjusted net income of $429,256 for the same period in 2008 (see “About Non-GAAP
Financial Measures” near the end of this release).
As of
June 30, 2009, the company had approximately $4.9 million of cash and cash
equivalents and approximately $6.5 million of working capital.
Seth
Grae, Chief Executive Officer, commented: “Our consulting services division
continues to operate on solid footing while providing a platform to foster
relationships and raise our profile as a leading provider of civilian nuclear
advisory services. Our consulting services have also helped to offset the costs
related to the development of our thorium-based nuclear fuel
designs. Heading into the second half of 2009, our revenue may
weaken, due to normal variations in billable hours, coupled with recent changes
in our billing rates implemented to further enhance the competitiveness of our
advisory services. Furthermore, we remain active in discussing our services and
capabilities with a number of government and foreign entities seeking
comprehensive advisory services for civil nuclear energy programs.”
Mr. Grae
continued: “Our technology development program, which has always been at the
core of Thorium Power, continues to advance according to plan. The VVER
development program now operates under the aegis of our wholly-owned operating
unit, Lightbridge International Moscow. Also according to plan, we continue to
expand the scope of our technology development and enhance our capabilities for
Western-style nuclear reactor fuels.”
Mr. Grae
concluded: “The prospects for both nuclear power and thorium-based nuclear fuel
designs continue to gain momentum. Foremost, we believe there is
support in Congress for the Reid-Hatch “Thorium Energy Security
Act.” This legislation would appropriate $250 million over five years
to help fund thorium fuel research and development. Additionally, the
Organization for Economic Cooperation and Development recently stated that its
member countries will boost official backing for exports of renewable energy and
nuclear power equipment to address growing demand. These
developments, among many others, provide a fertile environment to forge
substantive relationships and afford us receptive clientele for our advisory
services and non-proliferative, low waste 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
(loss) excluding non-cash expense, a non-GAAP measure, to GAAP net income (loss)
for the three months ended June 30, 2009 and June 30, 2008.
|
Three
Months Ended
|
Three Months
Ended
|
|||||||
|
June
30, 2009
|
June
30, 2008
|
|||||||
|
GAAP
Net loss
|
$ | (1,346,950 | ) | $ | (997,130 | ) | ||
|
Adjustments:
|
||||||||
|
Expense
- non-cash employee compensation
|
1,246,128 | 1,423,376 | ||||||
|
Expense
- depreciation
|
7,036 | 3,010 | ||||||
|
Adjusted
Net Income (Loss)
|
$ | (93,786 | ) | 429,256 | ||||
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.
Conference
Call
Thorium
Power will host a conference call at 11:00 AM ET on Tuesday, August 25, 2009.
The call will be available on the Company’s website at www.thoriumpower.com, or
by calling (866) 900-0797 for U.S. callers, or (706) 679 -6787 for international
callers, and entering conference ID: 24405225. A webcast will also be
archived on the Company’s website and a telephone replay of the call will be
available approximately one hour following the call, through midnight September
1, 2009, and can be accessed by calling: (800) 642-1687 (U.S. callers) or (706)
645-9291 (international callers) and entering conference ID:
24405225.
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
Thorium
Power Ltd.
Condensed
Consolidated Balance Sheets
|
June
30,
|
December
31,
|
|||||||
|
2009
|
2008
|
|||||||
|
(Unaudited)
|
||||||||
|
ASSETS
|
||||||||
|
Current
Assets
|
||||||||
|
Cash
and cash equivalents
|
$ | 4,910,717 | $ | 5,580,244 | ||||
|
Restricted
cash
|
650,000 | 650,000 | ||||||
|
Accounts
receivable - project revenue and reimbursable project
costs
|
3,898,475 | 5,357,804 | ||||||
|
Prepaid
expenses & other current assets
|
667,407 | 394,315 | ||||||
|
Total
Current Assets
|
10,126,599 | 11,982,363 | ||||||
|
Property,
Plant and Equipment -net
|
107,120 | 108,121 | ||||||
|
Other
Assets
|
||||||||
|
Patent
costs - net
|
236,215 | 217,875 | ||||||
|
Security
deposits
|
125,548 | 138,418 | ||||||
|
Total
Other Assets
|
361,763 | 356,293 | ||||||
|
Total
Assets
|
$ | 10,595,482 | $ | 12,446,777 | ||||
|
LIABILITIES
AND STOCKHOLDERS EQUITY
|
||||||||
|
Current
Liabilities
|
||||||||
|
Accounts
payable and accrued liabilities
|
$ | 3,637,997 | $ | 5,138,979 | ||||
|
Total
Liabilities
|
3,637,997 | 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, $0.001 par value, 500,000,000 authorized, 301,841,722 shares issued
and outstanding at June 30, 2009 and 301,493,084 issued and outstanding at
December 31, 2008
|
301,842 | 301,493 | ||||||
|
Additional
paid in capital - stock and stock equivalents
|
51,086,020 | 48,607,451 | ||||||
|
Accumulated
Deficit
|
(44,359,385 | ) | (41,489,974 | ) | ||||
|
Common
stock reserved for issuance, 505,972 shares and 484,055 shares at June 30,
2009 and December 31, 2008, respectively
|
109,297 | 114,787 | ||||||
|
Deferred
stock compensation
|
(180,289 | ) | (225,959 | ) | ||||
|
Total
Stockholders' Equity
|
6,957,485 | 7,307,798 | ||||||
|
Total
Liabilities and Stockholders' Equity
|
$ | 10,595,482 | $ | 12,446,777 | ||||
Thorium
Power Ltd.
Unaudited
Condensed Consolidated Statements of Operations and Comprehensive
Loss
|
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
|
June
30,
|
June
30,
|
|||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||
|
Revenue:
|
||||||||||||||||
|
Consulting
Revenue
|
$ | 3,430,485 | $ | 4,301,500 | $ | 6,374,538 | $ | 8,116,625 | ||||||||
|
Cost
of Consulting Services Provided
|
1,888,846 | 1,736,562 | 3,637,364 | 3,384,566 | ||||||||||||
|
Gross
Margin
|
1,541,639 | 2,564,938 | 2,737,174 | 4,732,059 | ||||||||||||
|
Operating
Expenses
|
||||||||||||||||
|
General
and administrative
|
1,140,223 | 1,597,941 | 2,107,717 | 3,116,987 | ||||||||||||
|
Research
and development expenses
|
559,112 | 154,788 | 1,012,917 | 285,449 | ||||||||||||
|
Stock-based
compensation
|
1,202,357 | 1,423,376 | 2,497,544 | 2,787,179 | ||||||||||||
|
Total
Operating Expenses
|
2,901,692 | 3,176,105 | 5,618,178 | 6,189,615 | ||||||||||||
|
Operating
loss
|
(1,360,053 | ) | (611,167 | ) | (2,881,004 | ) | (1,457,556 | ) | ||||||||
|
Other
Income and (Expenses)
|
||||||||||||||||
|
Interest
income
|
13,492 | 53,898 | 16,520 | 143,180 | ||||||||||||
|
Realized
loss on marketable securities and other
|
(389 | ) | (438,750 | ) | (4,927 | ) | (438,750 | ) | ||||||||
|
Total
Other Income and Expenses
|
13,103 | (384,852 | ) | 11,593 | (295,570 | ) | ||||||||||
|
Net
loss before income taxes
|
(1,346,950 | ) | (996,019 | ) | (2,869,411 | ) | (1,753,126 | ) | ||||||||
|
Income
taxes
|
— | 1,111 | — | 31,939 | ||||||||||||
|
Net
loss
|
(1,346,950 | ) | (997,130 | ) | (2,869,411 | ) | (1,785,065 | ) | ||||||||
|
Other
Comprehensive Income (Loss)
|
||||||||||||||||
|
Unrealized
loss on marketable securities
|
— | 128,208 | — | (3,515 | ) | |||||||||||
|
Total
Comprehensive Loss
|
$ | (1,346,950 | ) | $ | (868,922 | ) | $ | (2,869,411 | ) | $ | (1,788,580 | ) | ||||
|
Net
Loss Per Common Share, Basic and diluted
|
$ | (0.00 | ) | $ | (0.00 | ) | $ | (0.01 | ) | $ | (0.01 | ) | ||||
|
Weighted
Average Number of shares outstanding for the period (used to compute per
share data)
|
301,841,722 | 299,366,947 | 301,754,563 | 299,215,481 | ||||||||||||
Thorium
Power Ltd.
Unaudited
Condensed Consolidated Statements of Cash Flows
|
Six
months ended
|
||||||||
|
June
30,
|
||||||||
|
2009
|
2008
|
|||||||
|
Operating
Activities:
|
||||||||
|
Net
Loss
|
$ | (2,869,411 | ) | $ | (1,785,065 | ) | ||
|
Adjustments
to reconcile net loss from operations to net cash used in operating
activities:
|
||||||||
|
Stock
based compensation
|
2,519,098 | 2,787,178 | ||||||
|
Depreciation
and amortization
|
13,040 | 3,467 | ||||||
|
Changes
in non-cash operating working capital items:
|
||||||||
|
Accounts
receivable - fees and reimburseable project costs
|
1,459,329 | — | ||||||
|
Prepaid
expenses and other current assets
|
(260,222 | ) | (150,514 | ) | ||||
|
Accounts
payable, accrued liabilities and other current liabilities
|
(1,500,982 | ) | (520,359 | ) | ||||
|
Deferred
revenue
|
— | (3,793,125 | ) | |||||
|
Deferred
project costs – net
|
— | 371,631 | ||||||
|
Net
Cash Used In Operating Activities
|
(639,148 | ) | (3,086,787 | ) | ||||
|
Investing
Activities:
|
||||||||
|
Property
and equipment
|
(12,039 | ) | — | |||||
|
Patent
costs
|
(18,340 | ) | — | |||||
|
Net
Cash Used In Investing Activities
|
(30,379 | ) | — | |||||
|
Financing
Activities:
|
||||||||
|
Proceeds
from issuance of common shares
|
— | 49,975 | ||||||
|
Payments
on notes payable and other
|
— | (10,433 | ) | |||||
|
Net
Cash Provided by Financing Activities
|
— | 39,542 | ||||||
|
Net
Decrease In Cash and Cash Equivalents
|
(669,527 | ) | (3,047,245 | ) | ||||
|
Cash
and Cash Equivalents, Beginning of Period
|
5,580,244 | 9,907,691 | ||||||
|
Reclassification
of cash equivalents to marketable securities - available for
sale
|
— | (1,674,849 | ) | |||||
|
Cash
and Cash Equivalents, End of Period
|
$ | 4,910,717 | $ | 5,185,597 | ||||
|
Supplemental
Disclosure of Cash Flow Information
|
||||||||
|
Cash
paid during the period for:
|
||||||||
|
Interest
paid
|
$ | — | $ | 183 | ||||
|
Income
taxes paid
|
$ | 266,000 | $ | 31,939 | ||||