Annual report pursuant to Section 13 and 15(d)

Research and Development Costs

Research and Development Costs
12 Months Ended
Dec. 31, 2012
Research and Development Costs [Text Block]

Note 10. Research and Development Costs

Research and Development Costs

Research and development costs, included in the accompanying consolidated statements of operations amounted to approximately $2.1 million and $2.3 million for the years ended December 31, 2012 and 2011, respectively.

On September 19, 2012, Lightbridge issued Task Order No. 1 (the “TO”) under our Master Research Services Agreement with Texas A&M University. The scope of the TO includes certain neutronic modeling work to be performed by Texas A&M University for Lightbridge. The results of this work will be used to enhance our neutronic modeling capability using industry standard computer codes. All of the work under this TO is expected to be completed by March 1, 2013. The TO has a fixed total price of $46,666, of which $23,333 is due upon execution of the TO and receipt of invoice, $11,667 due on December 15, 2012, and the remaining $11,666 due the later of March 1, 2013 or delivery of the final report. As of the date hereof, $35,000 of the total amount of $46,666 due to Texas A&M University under the TO has already been paid by Lightbridge.

In addition, we have consulting agreements with several consultants working on various projects for us, which total approximately $10,000 per month.