SOURCE: Thorium Power

November 13, 2008 09:15 ET

Thorium Power Announces $6.7 Million of Revenue for the Third Quarter of 2008; Affirms Full-Year 2008 Revenue Guidance

MCLEAN, VA--(Marketwire - November 13, 2008) - Thorium Power, Ltd. (OTCBB: THPW), the 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 September 30, 2008.

Revenue for the three months ended September 30, 2008 was $6.7 million. Operating income for the three months ended September 30, 2008 was $809,000. Operating income for the third quarter included approximately $1.4 million of stock-based compensation. Net income for the three months ended September 30, 2008 was $853,000. As of September 30, 2008, the company had approximately $10.4 million of cash and cash equivalents and $5.0 million of working capital.

2008 Revenue Outlook -- For fiscal year 2008, the company reaffirms a revenue range of $22 to $27 million.

Seth Grae, CEO of Thorium Power, stated, "We are pleased to report that Thorium Power recorded an increase in revenues to $6.7 million for the third quarter of 2008 from our consulting business, up from the $4.3 million of revenue reported in the second quarter. We are encouraged by our recent 5-year contracts with governmental entities in the United Arab Emirates (UAE).

"Additionally, in recent months we witnessed significant U.S. legislative activity," continued Mr. Grae. "The U.S. Senate's introduction of the 'Thorium Energy Independence and Security Act of 2008' announced in October is a major industry milestone for the use of thorium as the basis for non-proliferative, low waste nuclear fuel designs. At the same time, the U.S. approval of the U.S.-India Civilian Nuclear Cooperation Agreement provides us with a broadened market for our advisory services and future opportunities to license our technology."

Mr. Grae concluded, "Lastly, we are pleased with the progress of our consulting business as it illustrates our ability to leverage our technical base to develop an emerging leader in the nuclear services market. As planned, our consulting services are providing meaningful cash flow to support our long-term goal of licensing and deploying our low-waste, non-proliferative nuclear fuel designs."

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 http://www.thoriumpower.com

                            Thorium Power Ltd.
  Condensed Consolidated Statements of Operations and Comprehensive Loss


                        Nine Months Ended           Three Months Ended
                           September 30,              September 30,
                           (Unaudited)                 (Unaudited)
                        2008          2007          2008          2007
                    ------------  ------------  ------------  ------------
Revenue:
Consulting revenue  $ 14,863,125  $         --  $  6,746,500  $         --

Cost of  Consulting
 Services Provided     5,246,875            --     1,862,309            --
                    ------------  ------------  ------------  ------------

Gross Margin           9,616,250            --     4,884,191            --

Operating Expenses
  General and
   administrative      5,595,881     3,907,464     2,478,894     1,113,731
  Research and
   development
   expenses              497,228       297,064       211,779       141,593
  Stock-based
   compensation        4,172,007     3,582,344     1,384,828     1,127,610
                    ------------  ------------  ------------  ------------
Total Operating
 Expenses             10,265,116     7,786,872     4,075,501     2,382,934
                    ------------  ------------  ------------  ------------

Operating income
 (loss)                 (648,866)   (7,786,872)      808,690    (2,382,934)

Other Income and
  (Expenses)
  Interest income        162,293       301,824        19,113        84,888
  Realized loss on
   marketable
   securities           (438,750)           --            --            --
  Other expenses              --       (58,600)           --            --
                    ------------  ------------  ------------  ------------
Total Other Income
 and Expenses           (276,457)      243,224        19,113        84,888
                    ------------  ------------  ------------  ------------

Net income (loss)
 before income
 taxes                  (925,323)   (7,543,648)      827,803    (2,298,046)

Income taxes               7,140            --       (24,799)           --
                    ------------  ------------  ------------  ------------

Net income (loss)       (932,463)   (7,543,648)      852,602    (2,298,046)

Other Comprehensive
 Income                  433,719         3,274       437,234         3,931
Unrealized gain
 marketable
 securities
                    ------------  ------------  ------------  ------------

Total Comprehensive
 Income (Loss)      $   (498,744) $ (7,540,374) $  1,289,836  $ (2,294,115)
                    ============  ============  ============  ============

Net Income (Loss)
 Per Common Share,
 Basic and diluted  $       0.00  $      (0.03) $       0.00  $      (0.01)
                    ============  ============  ============  ============
Weighted Average
 Number of shares
 outstanding for
 the period used to
 compute per share
 data                300,406,299   296,297,409   299,615,349   296,170,196
                    ============  ============  ============  ============




                            Thorium Power Ltd.
              Condensed Consolidated Statements of Cash Flows


                                                     Nine Months Ended
                                                       September 30,
                                                       (Unaudited)
                                                --------------------------
                                                    2008          2007
                                                ------------  ------------
Operating Activities:
Net Loss                                        $   (932,463) $ (7,543,648)
Adjustments to reconcile net loss from
 operations to net cash used in operating
 activities:
Shares issued for other than cash for payment
 of expenses                                       4,500,411     3,735,500
Depreciation and amortization                         11,593         6,213
Amortization of deferred revenue - net              (523,125)            0
Amortization of deferred project costs             5,246,875             0
Realized loss on marketable securities               433,719             0
Settlement Expense                                         0        37,161
Changes in non-cash operating working capital
 items:
Accounts receivable - reimburseable project
 costs                                              (759,929)            0
Prepaid expenses and other current assets             88,449       307,013
Security deposits                                   (138,418)            0
Accounts payable, accrued liabilities and other
 current liabilities                                (319,406)     (999,311)
Deferred project costs                            (4,875,244)            0
                                                ------------  ------------
Net Cash Provided By (Used In) Operating
 Activities                                        2,732,462    (4,457,072)
                                                ------------  ------------

Investing Activities:
Purchase of office equipment                        (192,198)           --
Other                                                     --         3,274
                                                ------------  ------------
Net Cash Provided By (Used In) Investing
 Activities                                         (192,198)        3,274
                                                ------------  ------------

Financing Activities:
Proceeds from issue of common shares                  49,975            --
Payments on notes payable and other                  (10,433)       (3,685)
                                                ------------  ------------
Net Cash Provided By (Used In) Financing
 Activities                                           39,542        (3,685)
                                                ------------  ------------

Net Increase (Decrease) In Cash and Cash
 Equivalents                                       2,579,806    (4,457,483)

Cash and Cash Equivalents, Beginning of Period     9,907,691    10,927,775
Reclassification of cash equivalents to
 marketable securities - available for sale       (2,127,429)           --
                                                ------------  ------------

Cash and Cash Equivalents, End of Period        $ 10,360,068  $  6,470,292
                                                ============  ============

Supplemental Disclosure of Cash Flow
 Information
Cash paid during the year:
Interest paid                                   $         40  $        524
                                                ============  ============
Income taxes paid                               $     31,939  $         --
                                                ============  ============
Non-cash transactions:
Conversion of liabilities to equity             $          0  $  1,410,884
                                                ============  ============




                           Thorium Power Ltd.
                  Condensed Consolidated Balance Sheets


                                              September 30,  December 31,
                                                  2008           2007
                                               (Unaudited)
                                              -------------  -------------
                   ASSETS

   Current Assets
Cash and cash equivalents                     $  10,360,068  $   9,907,691
Accounts receivable - reimbursable project
 costs                                              759,929             --
Prepaid expenses & other current assets             115,586        204,035
Deferred project costs                                   --        371,631
                                              -------------  -------------
   Total Current Assets                          11,235,583     10,483,357

Property Plant and Equipment -net                   211,281         30,676

   Other Assets
Marketable securities - available for sale        2,127,429              0
Patent costs - net                                  217,875        217,875
Security deposits                                   140,467          2,049
                                              -------------  -------------
   Total Other Assets                             2,485,771        219,924
                                              -------------  -------------

Total Assets                                  $  13,932,635  $  10,733,957
                                              =============  =============

     Liabilities and Stockholders' Equity

   Current Liabilities
Accounts payable and accrued liabilities      $   3,010,118  $   2,122,649
Current portion long term debt                           --          4,651
Customer deposit and other current
 liabilities                                             --      1,206,875
Deferred revenue                                  3,270,000      3,793,125
                                              -------------  -------------
   Total Current Liabilities                      6,280,118      7,127,300

Notes Payable - long term                                --          5,782
                                              -------------  -------------

Total Liabilities                                 6,280,118      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, 301,395,310 shares issued and
 outstanding at September 30, 2008 and
 299,014,182 shares issued and outstanding at
 December 31, 2007                                  301,395        299,014
Additional paid in capital - stock and stock
 equivalents                                     46,744,676     41,791,735
Accumulated Deficit                             (39,563,035)   (38,630,572)

Common stock reserved for issuance, 484,055
 shares and 2,000,000 shares at September 30,
 2008 and December 31, 2007, respectively           114,787        590,000
Accumulated other comprehensive income              463,862         30,143
Deferred stock compensation                        (409,168)      (479,445)
                                              -------------  -------------
Total Stockholders' Equity                        7,652,517      3,600,875
                                              -------------  -------------

Total Liabilities and Stockholders' Equity    $  13,932,635  $  10,733,957
                                              =============  =============

Contact Information

  • Contact:
    For more information:
    Peter Charles
    Thorium Power, Ltd.
    Tel: (703) 918-4932
    Email: Email Contact