SOURCE:
Thorium Power
2008-03-28 06:00:00
Thorium Power Provides Business Update and 2007 Year-End Financial Results
MCLEAN, VA–( EMWNews – March 28, 2008) – Thorium Power, Ltd. (
developer of non-proliferative nuclear fuel technology and provider of
comprehensive advisory services for emerging nuclear programs, today
provided a business update for the twelve months ended December 31, 2007.
Seth Grae, CEO of Thorium Power, stated, “We are quite pleased with the
tremendous strides we have made in building awareness for our patented
non-proliferative, low waste nuclear fuel designs. In December 2007,
Thorium Power reached a major milestone as we entered into our first
strategic advisory contract with a foreign government-owned entity
generating professional fees totaling $3.7 million USD with a pre-payment
of $5 million USD. We subsequently entered into a follow-on agreement,
totaling a pre-payment of $4.3 million USD for a project covering an
estimated
three-month period. In our capacity as advisor, we have developed a
comprehensive roadmap as the first phase of a feasibility study for the
deployment of civilian nuclear power plants. This landmark agreement
provides validation for our business model, where strategic advisory
services are early revenue drivers as well as important elements that
create awareness for our broader offering. We are confident that this is
the beginning of a trend toward cleaner and safer nuclear fuels, and safer,
transparent and compliant nuclear program development. Thorium Power is
ideally suited for the ensuing nuclear renaissance.”
Mr. Grae continued, “We continue to attract accomplished leaders from
across the industry to join our experienced team. James D. Guerra, formerly
of Exelon Corporation, the largest generator of nuclear energy in the
United States, was appointed Chief Financial Officer, Executive Vice
President and Treasurer of Thorium Power. Dr. Hans Blix, a leading
international authority on nuclear safety, joined us as a senior advisor,
bringing his valuable global experience to support our mission. And most
recently, we appointed Robert Ihde, a veteran nuclear industry executive
and fuel expert who headed U.S. subsidiaries of Areva, to our Technical
Advisory Board. We are pleased to have such high-caliber individuals join
Thorium Power and we will benefit from their valuable expertise, collective
experience and business acumen in the nuclear field.”
Mr. Grae concluded, “During the fourth quarter, we completed a new formal
agreement with Russia’s Kurchatov Institute relating to the irradiation
testing program for the company’s fuel designs, a process that provides an
important step towards the demonstration of our fuel designs in a full
scale commercial reactor. The agreement assigned to Thorium Power Inc., a
wholly owned subsidiary of Thorium Power, Ltd., the worldwide rights, title
and interest in and to the technical data generated from the ampoule
irradiation testing of seed and blanket fuel samples in the Kurchatov
research reactor from the past two years. Equally vital to the development
of our technology, the agreement allowed us to enter an international
patent application relating to our seed and blanket fuel, further
bolstering our strong patent portfolio. Our proprietary fuel designs bring
a unique and innovative approach to the generation of nuclear power, one
that clearly differentiates Thorium Power from all other fuel technologies.
We firmly believe the future of the nuclear renaissance will depend on
viable solutions to significant concerns such as proliferation, waste, and
operating economics.”
Operating loss for the twelve months ended December 31, 2007 was $11.8
million, compared to operating loss of $12.3 million for the same period
last year. Net loss for the twelve months ended December 31, 2007 was $11.5
million, or $0.04 per share, compared to net loss of $11.7 million or $0.08
per share, for 2006. As of December 31, 2007, the company had approximately
$9.9 million of cash and cash equivalents and $3.4 million of working
capital. Due to our revenue recognition policy, the contracts signed during
this period will be reflected as revenues starting in Q1 2008.
About Thorium Power, Ltd.
Thorium Power (
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 benefits of the new agreement with
Kurchatov 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.
CONSOLIDATED BALANCE SHEETS
December 31, December 31,
2007 2006
ASSETS
Current Assets
Cash and cash equivalents $ 9,907,691 $ 10,927,775
Prepaid expenses & other current assets 204,035 394,443
Deferred project costs 371,631 0
Total Current Assets 10,483,357 11,322,218
Property Plant and Equipment - net 30,676 21,290
Other Assets
Patent costs - net 217,875 217,875
Security deposits 2,049 2,049
Total Other Assets 219,924 219,924
Total Assets $ 10,733,957 $ 11,563,432
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Current portion long term debt $ 4,651 $ 4,739
Accounts payable and accrued liabilities 2,122,649 1,121,083
Customer deposit and other current liabilities 1,206,875 347,690
Deferred revenue 3,793,125 0
Warrant liability 0 1,132,440
Total Current Liabilities 7,127,300 2,605,952
Notes Payable - long term 5,782 10,433
Total Liabilities 7,133,082 2,616,385
Common Stock with Registration Rights
Common Stock subject to continuing
registration, $0.001 par value, 36,659,837
shares issued and outstanding at December 31,
2006 0 12,041,373
Stockholders' Equity (Deficiency)
Preferred stock, $0.001 par value, 50,000,000
authorized shares, no shares issued and
outstanding 0 0
Common stock, $0.001 par value, 500,000,000
authorized, 299,014,182 shares issued and
outstanding at December 31, 2007 and
257,291,709 shares outstanding at December
31, 2006 299,014 257,292
Additional paid in capital - stock and stock
equivalents 41,791,735 23,148,560
Deficit accumulated during the development
stage (38,630,572) (27,177,989)
Common stock reserved for issuance, 2,000,000
shares at December 31, 2007 and 4,000,000
shares at December 31, 2006 590,000 1,200,000
Accumulated other comprehensive income 30,143 18,861
Deferred stock compensation (479,445) (285,200)
Treasury stock - 850,000 shares outstanding at
December 31, 2006 0 (255,850)
Total Stockholders' Equity (Deficiency) 3,600,875 (3,094,326)
Total Liabilities and Stockholders' Equity
(Deficiency) $ 10,733,957 $ 11,563,432
THORIUM POWER, LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
Years Ended December 31,
2007 2006
Revenue:
License revenue $ 0 $ 0
Total Revenue 0 0
Operating Expenses
General and administrative 6,259,317 3,150,243
Research and development expenses 756,755 34,400
Stock-based compensation 4,745,098 9,131,746
Total Operating Loss 11,761,170 12,316,389
Other Income and (Expenses)
Gain on fair value of warrant derivatives 0 1,902,286
Interest income/expense, other 367,187 115,128
Stock settlement expense (37,160) (92,260)
Registration right expense 0 (353,706)
Warrant expense (21,440) (963,387)
Total Other Income and Expenses 308,587 608,061
Net Loss (11,452,583) (11,708,328)
Other Comprehensive Income (Loss)
Unrealized Gain Marketable Securities 11,282 18,861
Total Comprehensive Loss $ (11,441,301) $ (11,689,467)
Net Loss Per Common Share, Basic and diluted $ (0.04) $ (0.08)
Weighted Average Number of shares
outstanding for the period used to compute
per share data 296,666,502 153,733,780
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