Thorium Power Announces $4.3 Million of Revenue for the Second Quarter of 2008; Affirms Full-Year 2008 Revenue Guidance
SOURCE:
Thorium Power
2008-08-14 08:00:00
MCLEAN, VA–(EMWNews – August 14, 2008) – Thorium Power Ltd. (
developer of non-proliferative nuclear fuel technology and provider of
comprehensive advisory services for emerging nuclear programs, today
provided a quarterly update for the three months ended June 30, 2008.
Revenue for the three months ended June 30, 2008 was $4.3 million.
Operating loss for the three months ended June 30, 2008 was $0.6 million.
Operating loss for the second quarter included approximately $1.4 million
of stock-based compensation. Net loss for the three months ended June 30,
2008 was $1 million. Net loss for the second quarter of 2008 included a
markdown of approximately $0.4 million on auction-rate securities to fair
value. As of June 30, 2008, the company had approximately $5.2 million of
cash and cash equivalents and $2.6 million of working capital.
2008 Revenue Outlook — For fiscal year 2008, the company anticipates
revenues in the range of $22 million to $27 million.
Seth Grae, CEO of Thorium Power, stated, “We are pleased to report that
Thorium Power recorded an increase in revenues to $4.3 million for the
second quarter of 2008 from our consulting business, up from $3.8 million
in the first quarter. Most of the quarter’s revenues were derived from a
follow-on agreement for consulting and strategic advisory services in the
United Arab Emirates. Thorium Power is currently providing strategic advice
for the structuring and launch of Emirates Nuclear Energy Corporation
(ENEC), and for the development and launch of an independent nuclear
regulatory agency in the UAE – Federal Authority for Nuclear Regulation
(FANR).”
Subsequent to the end of the second quarter, Thorium Power entered into two
five-year agreements with the UAE whereby the clients will make a total
prepayment of $17 million to Thorium Power covering the first six-month
period ending in December 2008 for strategic advisory services. The
services provided are consistent with, and a result of, the UAE policy
published in April 2008, for the evaluation and potential implementation of
peaceful nuclear energy.
Mr. Grae continued, “Growing our business from a pre-revenue company in the
second quarter of 2007 to a company now generating $8.1 million for the
first six months of 2008 alone, is a major milestone. We have built a solid
foundation consisting of recurring revenue and strong cash flow. We also
continue to make significant progress in commercializing and licensing our
proliferation resistant, low-waste fuel designs to commercial and
government owned reactor operators and nuclear fuel fabricators. Our fuel
designs have been operating successfully in a research reactor for
approximately five years and we continue to move toward additional fuel
designs for western reactor-types including the Westinghouse AP-1000 and
the AREVA EPR. We have recently expanded our US technology team to enhance
our internal capabilities in support of an increased scope of our R&D
activities.”
Mr. Grae concluded, “Worldwide concerns over energy prices and the
environmental harm caused by greenhouse gases have put nuclear power back
on the agenda across the globe. The International Atomic Energy Agency has
significantly increased its projection of world nuclear generating capacity
and now anticipates at least 60 new plants in the next 15 years, making 430
GWe in place in 2020, which is 130 GWe more than projected in 2000. We
certainly believe nuclear power generation will play a significant role in
meeting growing global energy demand. With that, we have managed to build a
team that is complementary of, and positioned to benefit from, the growing
trends in the industry.”
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.
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, statements regarding revenues in the range of $22 million to
$27 million 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
Thorium Power Ltd.
Condensed Consolidated Balance Sheets
June 30 December 31
2008, 2007,
(Unaudited)
------------ ------------
ASSETS
Current Assets
Cash and cash equivalents $ 5,185,597 $ 9,907,691
Prepaid expenses & other current assets 216,131 204,035
Deferred project costs - 371,631
------------ ------------
Total Current Assets 5,401,728 10,483,357
Property Plant and Equipment - net 27,209 30,676
Other Assets
Marketable securities - available for sale 1,674,849 -
Patent costs - net 217,875 217,875
Security deposits 140,467 2,049
------------ ------------
Total Other Assets 2,033,191 219,924
------------ ------------
Total Assets $ 7,462,128 $ 10,733,957
============ ============
Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable and accrued liabilities $ 2,799,489 $ 2,122,649
Current portion long term debt - 4,651
Customer deposit and other current liabilities 13,191 1,206,875
Deferred revenue - 3,793,125
------------ ------------
Total Current Liabilities 2,812,680 7,127,300
Notes Payable - long term - 5,782
------------ ------------
Total Liabilities 2,812,680 7,133,082
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, 299,395,310 shares issued and
outstanding at June 30, 2008 and 299,014,182
shares issued and outstanding at
December 31, 2007 299,395 299,014
Additional paid in capital - stock and stock
equivalents 44,530,174 41,791,735
Accumulated deficit (40,415,637) (38,630,572)
Common stock reserved for issuance, 2,127,626
shares and 2,000,000 shares at June 30, 2008
and December 31, 2007, respectively 626,373 590,000
Accumulated other comprehensive income 26,628 30,143
Deferred stock compensation (417,485) (479,445)
------------ ------------
Total Stockholders' Equity 4,649,448 3,600,875
------------ ------------
Total Liabilities and Stockholders' Equity $ 7,462,128 $ 10,733,957
============ ============
Thorium Power Ltd.
Condensed Consolidated Statements of Operations and Comprehensive Loss
Six Months Ended Three Months Ended
June 30, June 30,
(Unaudited) (Unaudited)
-------------------------- --------------------------
2008 2007 2008 2007
------------ ------------ ------------ ------------
Revenue:
Consulting revenue $ 8,116,625 $ - $ 4,301,500 $ -
------------ ------------ ------------ ------------
Total Revenue 8,116,625 - 4,301,500 -
Cost of Consulting
Services Provided 3,384,566 - 1,736,562 -
------------ ------------ ------------ ------------
Gross Margin 4,732,059 - 2,564,938 -
Operating Expenses
General and
administrative 3,116,988 2,793,733 1,597,941 1,265,340
Research and
development
expenses 285,449 155,471 154,788 129,402
Stock-based
compensation 2,787,178 2,454,734 1,423,376 1,119,217
------------ ------------ ------------ ------------
Total Operating
Expenses 6,189,615 5,403,938 3,176,105 2,513,959
------------ ------------ ------------ ------------
Operating loss (1,457,556) (5,403,938) (611,167) (2,513,959)
Other Income and
(Expenses)
Interest income 143,180 216,936 53,898 104,350
Realized loss on
marketable
securities (438,750) - (438,750) -
Other expenses - (58,600) - (58,600)
------------ ------------ ------------ ------------
Total Other Income
and Expenses (295,570) 158,336 (384,852) 45,750
------------ ------------ ------------ ------------
Net loss before
income taxes (1,753,126) (5,245,602) (996,019) (2,468,209)
Income taxes 31,939 - 1,111 -
------------ ------------ ------------ ------------
Net loss (1,785,065) (5,245,602) (997,130) (2,468,209)
Other Comprehensive
Income (Loss)
Unrealized gain
(loss) marketable
securities (3,515) (657) 128,208 (8,063)
------------ ------------ ------------ ------------
Total Comprehensive
Loss $ (1,788,580) $ (5,246,259) $ (899,750) $ (2,476,272)
============ ============ ============ ============
Net Loss Per Common
Share, Basic and
diluted $ (0.01) $ (0.02) $ (0.00) $ (0.01)
============ ============ ============ ============
Weighted Average
Number of shares
outstanding for
the period used to
compute per share
data 299,215,481 295,979,377 299,366,947 296,784,409
============ ============ ============ ============
Thorium Power Ltd.
Condensed Consolidated Statements of Cash Flows
Six Months Ended
June 30
(Unaudited)
---------------------------
2008 2007
------------ ------------
Operating Activities:
Net Loss $ (1,785,065) $ (5,245,602)
Adjustments to reconcile net loss from
operations to net cash used in operating
activities:
Shares issued for other than cash for payment
of expenses 2,787,178 2,645,051
Depreciation and amortization 3,467 4,142
Amortization of deferred revenue (3,793,125) -
Amortization of deferred project costs 3,384,566 -
Changes in non-cash operating working capital
items:
Prepaid expenses and other current assets (12,096) 287,776
Security deposits (138,418) -
Accounts payable, accrued liabilities and
other current liabilities 673,325 (941,672)
Other current liabilities (1,193,684) -
Deferred project costs (3,012,935) -
------------ ------------
Net Cash Used In Operating Activities (3,086,787) (3,250,305)
Investing Activities:
Net Cash Used In Investing Activities - -
Financing Activities:
Proceeds from issue of common shares 49,975 -
Payments on notes payable and other (10,433) (2,515)
------------ ------------
Net Cash Provided By (Used In) Financing
Activities 39,542 (2,515)
------------ ------------
Net Decrease In Cash and Cash Equivalents (3,047,245) (3,252,820)
Cash and Cash Equivalents, Beginning of Period 9,907,691 10,927,775
Reclassification of cash equivalents to
marketable securities - available for sale (1,674,849) -
------------ ------------
Cash and Cash Equivalents, End of Period $ 5,185,597 $ 7,674,955
============ ============
Supplemental Disclosure of Cash Flow
Information
Cash paid during the year:
Interest paid $ 183 $ 524
============ ============
Income taxes paid $ 31,939 $ 0
============ ============
Non-cash transactions
Conversion of liabilities to equity $ - $ 1,410,884
============ ============
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