Thorium Power Provides Business Update for the Second Quarter of 2007
(Table appear in proper format on url, Note that they have burned through 3 million in cash and assets. )
earthtimes.org
MCLEAN, VA -- 08/09/07 -- Thorium Power Ltd. (OTCBB: THPW), the leading developer of low-waste, non-proliferative nuclear fuel technology for existing and future reactors, today provided a business update for the second quarter ended June 30, 2007.
Seth Grae, CEO of Thorium Power, stated, "We are making strides in bringing our thorium-based fuel designs to the forefront as a viable solution to nuclear proliferation concerns and environmental issues around the world. Specific to Thorium Power, in recent communications we have indicated we are actively engaged in very high level discussions with foreign governments and global commercial entities regarding the utilization of Thorium Power's fuel designs in existing and new reactors that are slated to be built or are in the planning stage. These discussions, confidential as they are, continue to progress diligently. We continue to be both confident and encouraged by the level of interest in our fuel designs."
In general, interest in thorium-based fuels continues to gain momentum as a number of countries publicly state their interest in the fuel source. Dr. A.P.J. Abdul Kalam, India's ex-president and one of the country's foremost scientists, continues to reiterate his steadfast support for a thorium-based nuclear industry. Furthermore, India's Cabinet recently approved the US-India nuclear cooperation agreement, bringing both countries ever closer to completing the landmark deal. Elsewhere, there have been positive developments in Scandinavia with Sweden and Norway now actively seeking to utilize thorium fuel designs. All of these notable developments are closely aligned with the publication of major research reports (OECD, PricewaterhouseCoopers, BP) marking the global resurgence of nuclear energy and growing interest from "new nuclear" nations such as India.
Mr. Grae continued, "It is quite important for both investors and industry to recognize the significant uniqueness of our fuel designs. Most importantly, Thorium Power's proprietary technology is proliferation resistant. Quite simply, Thorium Power's fuel designs do not produce weapons-usable materials in spent fuel. Additionally, our fuels significantly reduce nuclear waste, yielding approximately fifty percent reduction by volume, seventy percent reduction by weight, and ninety percent reduction in long-term radio-toxicity."
"Changing the status quo is not an easy task, but we took on the challenge in 1991 when Dr. Alvin Radkowsky, a co-founder of Thorium Power and a pioneer designer of nuclear fuels and reactors, approached us to transform his latest fuel designs into a commercially viable solution to nuclear proliferation and the increasing burdens of nuclear waste. We have since moved beyond the science phase, and our fuels have been undergoing a demonstration process in a research reactor and test facilities in Russia for over three years. We have built a very strong patent portfolio and look forward to filing additional patents that we expect to provide patent protection for an additional 20 years from the date of filing."
Mr. Grae concluded, "Overall, we are extremely encouraged by the outlook for the business heading into the second half of 2007 with a diverse portfolio of market opportunities and a marked increase in interest for thorium-based nuclear fuels around the world. In the months ahead, we will pursue these opportunities with the help of our technical and international advisory boards, both of which are comprised of key industry leaders, including former executives of both Westinghouse and GE Nuclear that have successfully and profitably deployed nuclear fuels and nuclear reactors around the world."
Total revenue for the three months ended June 30, 2007 was $0, compared to $0 for the same period in 2006. Operating loss for the three months ended June 30, 2007 was $2.5 million, compared to operating loss of $26,000 for the same period last year. Net loss for the three months ended June 30, 2007 was $2.5 million, or $0.01 per share, compared to net loss of $581,000 or $0.01 per share, for the same period in 2006. As of June 30, 2007, the company had approximately $7.7 million of cash and cash equivalents and $7.2 million of working capital.
About Thorium Power, Ltd.
Based in McLean, VA, Thorium Power, Ltd. is a nuclear energy pioneer and the leading developer of thorium-based nuclear fuel designs. The Company's technologies include nuclear fuel designs optimized to address key concerns about traditional nuclear power, including nuclear proliferation and nuclear waste. Thorium Power plans to license its technologies to commercial and government owned reactor operators and nuclear fuel fabricators aiming to benefit from thorium-based fuels. The Company is targeting new reactors in countries without a nuclear industry today, as well as currently operating and new reactors in countries with an established industry. Thorium Power is also leveraging its nuclear technology, business and regulatory expertise and relationships by offering services to commercial entities and governments looking to establish or expand nuclear industry capabilities and infrastructure. In addition to leveraging its International and Technical Advisory Boards comprised of key national and international leaders in the fields of nuclear energy, finance, government affairs, non-proliferation and diplomacy, the Company maintains long-standing relationships with leading Russian nuclear entities, providing expert resources and facilities for its nuclear fuel development activities. To support the implementation of its business model, Thorium Power has plans to form partnerships with various types of participants in the nuclear industry, allowing the Company to address multiple nuclear reactor types internationally.
Further information is available on Thorium Power Ltd's website at thoriumpower.com
Forward-Looking Statement
This press release may include certain statements that are not descriptions of historical facts, but are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. 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 proposed merger and other 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. These risks, as well as other risks associated with the merger, will be more fully discussed in any joint proxy statement or prospectus or other relevant document filed with the Securities and Exchange Commission in connection with the proposed merger. 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.
Consolidated Balance Sheets
(unaudited)
(Unaudited) (Audited)
June 30, December 31
2007 2006
============ ============
ASSETS
Current Assets
Cash and cash equivalents $ 7,674,955 $ 10,927,775
Prepaid expenses & other current assets 106,667 394,443
------------ ------------
Total Current Assets 7,781,622 11,322,218
------------ ------------
Property Plant and Equipment -net 17,148 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 $ 8,018,694 $ 11,563,432
============ ============
Liabilities and Stockholders' Equity
Current Liabilities
Current portion long term debt $ 4,516 $ 4,739
Accounts payable and accrued liabilities 571,999 1,121,083
Other current liabilities 0 347,690
Warrant liability 0 1,132,440
------------ ------------
Total Current Liabilities 576,515 2,605,952
Notes Payable - long term 8,142 10,433
------------ ------------
Total Liabilites 584,656 2,616,385
------------ ------------
Commitments and contingencies - note 9
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 - note 6 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, 297,945,650 shares issued and
297,095,650 shares outstanding at June 30,
2007 and 257,292,000 shares oustanding at
December 31, 2005 297,946 257,292
Additional paid in capital - stock and stock
equivalents 39,754,503 23,148,560
Deficit accumulated during the development
stage (32,423,591) (27,177,989)
Common stock reserved for issuance, 1,000,000
shares at June 30, 2007 and 4,000,000 shares
at December 31, 2006 350,000 1,200,000
Accumulated other comprehensive income 19,518 18,861
Deferred stock compensation (308,489) (285,200)
Treasury stock - 850,000 shares (255,850) (255,850)
------------ ------------
Total Stockholders' Equity (Deficiency) 7,434,038 (3,094,326)
------------ ------------
Total Liabilities and Stockholders' Equity
(Deficiency) $ 8,018,694 $ 11,563,432
============ ============
Consolidated Statements of Operations and Comprehensive Loss
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2007 2006 2007 2006
Revenue: $ $ $ $
License revenue 0 0 0 0
----------- ------------ ----------- ------------
Total Revenue 0 0 0 0
----------- ------------ ----------- ------------
Operating Expenses
General and
administrative 1,265,340 15,822 2,793,733 346,795
Research and
development expenses 129,402 10,000 155,471 10,000
Stock-based
compensation 1,119,217 0 2,454,734 0
----------- ------------ ----------- ------------
Total Operating Loss 2,513,959 25,822 5,403,938 356,795
----------- ------------ ----------- ------------
Other (Income) and
Expenses
Gain on fair value of
warrant derivatives 0 0 0 0
Other income/expense (104,350) 4,687 (216,936) 5,553
Stock settlement
expense 37,160 0 37,160 0
Registration right
expense 21,440 0 21,440 0
Warrant expense 0 0 0 0
Contribution 0 550,000 0 550,000
----------- ------------ ----------- ------------
Total Other Income and
Expenses (45,750) 554,687 (158,336) 555,553
----------- ------------ ----------- ------------
Net Loss $ 2,468,209 580,509 $ 5,245,602 $ 912,348
Other Comprehensive
Income (Loss)
Unrealized Gain
Marketable Securities (8,063) 0 657 0
----------- ------------ ----------- ------------
Total Comphensive Loss $ 2,476,272 580,509 $ 5,246,259 $ 912,348
=========== ============ =========== ============
Net Loss Per Common
Share, Basic and
diluted $ 0.01 0.01 $ 0.02 $ 0.01
=========== ============ =========== ============
Weighted Average Number
of shares outstanding
for the period used to
compute per share data 296,784,409 115,718,996 295,979,377 113,079,179
For more information:
Peter Charles
Thorium Power Ltd.
Ph: (703) 918-4932
Email: Email Contact
earthtimes.org |
