Lightbridge Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2018

	September 30,		December 31,
*Outstanding Warrants*	2018		2017
Issued to Investors on October 25, 2013, entitling the holders to purchase 250,000 common shares in the Company at an exercise price of $11.50 per common share up to and including April 24, 2021. In 2016, 59,450 of these warrants were exchanged for common stock, and all remaining warrant holders agreed to new warrant terms, which excluded any potential net cash settlement provisions in exchange for a reduced exercise price of $6.25 per share.		163,986		163,986

Issued to Investors on November 17, 2014, entitling the holders to purchase 546,919 common shares in the Company at an exercise price of $11.55 per common share up to and including May 16, 2022. On June 30, 2016, the warrant holders agreed to new warrant terms, which excluded any potential net cash settlement provisions in order to classify them as equity in exchange for a reduced exercise price of $6.25 per share.		546,919		546,919

Issued to an investor on August 10, 2016, entitling the holders to purchase 500,000 common shares in the Company at an exercise price of price of $0.01 per share, up to and including December 31, 2019. These warrants were exercised in January 2018.		-		500,000

Issued to an investment bank and subsequently transferred to a principal of the investment bank regarding the Series B Preferred Stock investment on January 30, 2018, entitling the holder to purchase 133,432 common shares in the Company at an exercise price of $1.50 per share, up to and including January 30, 2021.		133,432		-

		844,337		1,210,905

Schedule of share-based compensation, stock options activity

	Three months ended September 30				Nine months ended September 30
	2018		2017		2018		2017

Research and development expenses	$	162,000	$	94,000	$	728,000	$	280,000
General and administrative expenses		368,000		77,000		1,223,000		318,000

Total stock-based compensation expense	$	530,000	$	171,000	$	1,951,000	$	598,000

Schedule of weighted average years remaining of expected life activity

Expected volatility		90	%
Risk free interest rate		2.84	%
Dividend yield rate		0	%
Weighted average years		9.8 months
Closing price per share – common stock	$	0.88

Schedule of Stock option transactions of the employees

Stock option transactions of the employees, directors, and consultants are summarized as follows for the nine months ended September 30, 2018:

	Options Outstanding			Weighted Average Exercise Price		Weighted Average Grant Date Fair Value
Beginning of the period		3,976,884		$	3.58	$	2.49
Granted		1,784,455			0.90		0.70
Exercised		-			-		-
Forfeited		-			-		-
Expired		(8,845	)		42.60		30.86
End of the period		5,752,494		$	2.69	$	1.93

Options exercisable		3,598,133		$	3.57	$	2.57

Stock option transactions of the employees, directors, and consultants are summarized as follows for the year ended December 31, 2017:

	Options Outstanding			Weighted Average Exercise Price		Weighted Average Grant Date Fair Value
Beginning of the year		2,172,581		$	6.70	$	4.83
Granted		1,854,277			1.05		0.77
Exercised		-			-		-
Forfeited		-			-		-
Expired		(49,974	)		45.53		38.70
End of the year		3,976,884		$	3.58	$	2.49

Options exercisable		2,434,148		$	4.84	$	3.36

Schedule of non-vested options, activity

	Shares			Weighted- Average Fair Value Grant Date		Weighted Average Exercise Price
Non-vested – December 31, 2016		450,476		$	3.60	$	5.40

Granted		1,854,277			0.77		1.05
Vested		(762,017	)		1.67		2.54
Forfeited		-			-		-
Non-vested – December 31, 2017		1,542,736		$	1.10	$	1.58

Granted		1,784,455			0.70		0.90
Vested		(1,172,830	)	$	1.14	$	1.24
Forfeited		-			-		-
Non-vested – September 30, 2018		2,154,361		$	0.87	$	1.21

Schedule of disclosure of share-based compensation arrangements by share-based payment award

The following table provides certain information with respect to the above-referenced stock options that were outstanding and exercisable at September 30, 2018:

		Stock Options Outstanding						Stock Options Vested
		Weighted						Weighted
		Average						Average
		Remaining				Weighted		Remaining				Weighted
		Contractual		Number		Average		Contractual		Number		Average
		Life		of		Exercise		Life		of		Exercise
Exercise Prices		-Years		Awards		Price		-Years		Awards		Price

$	0.90-$1.05		9.46		3,607,307	$	0.98		9.07		1,643,641	$	1.05
$	1.06-$2.00		8.15		705,814	$	1.52		8.12		684,864	$	1.53
$	2.01-$6.00		7.11		821,174	$	4.59		7.10		651,429	$	4.58
$	6.01-$20.00		4.38		505,694	$	7.47		4.38		505,694	$	7.47
$	20.01-$43.25		0.97		112,505	$	29.46		0.97		112,505	$	29.46
	Total		8.35		5,752,494	$	2.69		7.62		3,598,133	$	3.57

The following table provides certain information with respect to the above-referenced stock options that were outstanding and exercisable at December 31, 2017:

		Stock Options Outstanding						Stock Options Vested
		Weighted						Weighted
		Average						Average
		Remaining				Weighted		Remaining				Weighted
		Contractual		Number		Average		Contractual		Number		Average
		Life		of		Exercise		Life		of		Exercise
Exercise Prices		-Years		Awards		Price		-Years		Awards		Price

$	1.05-$2.00		9.56		2,528,666	$	1.18		9.28		1,197,708	$	1.33
$	2.01-$6.00		7.86		821,174	$	4.59		7.86		651,429	$	4.58
$	6.01-$20.00		5.12		505,694	$	7.47		4.93		463,661	$	7.58
$	20.01-$45.00		1.66		118,016	$	29.85		1.66		118,016	$	29.85
$	45.01-$72.00		0.18		3,334	$	50.25		0.18		3,334	$	50.25
	Total		8.40		3,976,884	$	3.58		7.70		2,434,148	$	4.84

Schedule of service-based payment award, stock options, valuation assumptions

Weighted average assumptions used in the Black Scholes option-pricing model for the nine months ended September 30, 2017, were as follows:

	Nine Months ended
	September 30,
	2017

Average risk-free interest rate		1.85	%
Average expected life- years		6.0
Expected volatility		88.5	%
Expected dividends		0.0

In accordance with ASC 718, the market-based and performance-based long-term non-qualified option grants awards issued in 2017 were assigned a fair value of $0.80 per option share (total value of $0.9 million) on the date of grant using a Monte Carlo simulation. The following assumptions were used in the Monte Carlo simulation model:

Expected volatility		87.5% to 91
Risk free interest rate		2.24% to 2.42
Dividend yield rate		0
Weighted average remaining expected life		4.2 years
Closing price per share – common stock	$	1.05

- Definition

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

+ References + Details