|12 Months Ended|
Dec. 31, 2019
|Note 11. Subsequent Events||
The Company has evaluated subsequent events from December 31, 2019 to the date the financial statements were issued and has determined the following items to disclose.
Conversion of Series A Preferred Shares to Common Shares
On February 10, 2020, the holder of the Series A Preferred Shares converted 11,875 preferred shares into 1,254 common shares.
Filing of Arbitration - Framatome
On February 7, 2020, the Company has filed a request for arbitration (the “Arbitration Request”) in the International Court of Arbitration of the International Chamber of Commerce against Framatome. The Company has undertaken this action in order to obtain, inter alia, a declaration that the RDSA dated November 14, 2017, by and among Framatome, Enfission and the Company (as amended by Amendment Number One, dated January 25, 2018, and Amendment Number Two, dated June 20, 2018, the RDSA was validly terminated and is no longer in force, and to obtain compensation for the damages incurred.
As disclosed at Note 3. Investment in Joint Venture (Investee Losses in Excess of Investment), on November 18, 2019, the Company delivered a notice of termination of the RDSA to Framatome, thereby terminating the RDSA, based on the Company’s assertion that Framatome materially breached certain material terms of the RDSA, relating to its invoicing obligations, as well as a failure of the escalation process under the RDSA to agree to a budget commitment for 2019-2020. Framatome has contested the Company’s right to terminate the RDSA, raised questions as to the Company’s rights relating to their co-owned intellectual property and the Company’s right to conduct certain research and development activities, and reserved its right to seek compensation from the Company. On this basis and based on the Company’s assertion that the conduct of Framatome prevented Enfission from functioning and progressing towards its goals, the Company filed a request for arbitration against Framatome on February 7, 2020. Lightbridge has reduced its research and development activities as it presently focuses on research and development outside the scope of operations of Enfission. The Company is currently evaluating various research and development options.
Adoption of 2020 Stock Plan
On March 9, 2020, the Board of Directors adopted the Company’s 2020 Equity Incentive Plan (the “2020 Plan”). The 2020 Plan will become effective upon adoption of the 2020 Plan by the Shareholders at the Annual Shareholder Meeting in 2020.
Sales under the 2019 ATM that were made from February 24, 2020 to March 13, 2020 were approximately 0.1 million shares that totaled net proceeds of approximately $0.4 million.
The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef