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Research and Development Costs
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6 Months Ended |
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Jun. 30, 2011
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| Research and Development Costs [Text Block] |
Note 7. Research and Development Costs Research Costs Research and development costs, included in the accompanying consolidated statement of operations amounted to approximately $0.5 million and $0.2 million for the three months ended June 30, 2011 and 2010, respectively and approximately $1.1 million and $0.4 million for the six months ended June 30, 2011 and 2010, respectively. Total cumulative research and development expenses amounted to approximately $10.5 million from January 8, 1992 (date of inception of Lightbridge) to June 30, 2011. Research Agreements In October 2009 we entered into an umbrella agreement, or the SOSNY Agreement, with Russian Limited Liability Research and Development Company, or SOSNY. SOSNY will serve as our prime contractor in Russia to manage the research and development activities related to the lead test assembly, or LTA, program for Russian designed VVER-1000 reactors. SOSNY is a leading Russian commercial nuclear entity specializing in front-end and back-end nuclear fuel cycle management and logistics services. Specific work will be carried out under individual task orders to be issued under the SOSNY Agreement. The scope, deliverables, and costs are to be agreed to between the parties for each individual task order. On June 17, 2010, Thorium Power Inc. (TPI, wholly owned subsidiary of Lightbridge Corporation) entered into Task Order No. 1 with SOSNY whereby TPI is obligated to pay to SOSNY a total of $234,161 (accrued liability of $117,000 at June 30, 2011) for certain R&D work to be completed and all deliverables to be submitted to TPI by July 31, 2011. As of June 30, 2011, a total of 2,832,000 Rubles (approximately $94,000 at the June 30, 2011 exchange rate) worth of work was completed by SOSNY and its subcontractors and paid. The remaining portion will be paid upon completion of the remaining milestones stipulated in the Task Order No. 1. In addition to the above agreements, there are consulting agreements with several consultants working on various projects for us, which total approximately $10,000 per month. |