Note 3. Prepaids and Other Assets

Prepaid expenses and other current assets consist of the following (in millions):

Prepaid project costs and other long-term assets consist of the following (in millions):

In 2022, the Company entered into two agreements with Battelle Energy Alliance, LLC (BEA), the U.S. Department of Energy’s (DOE) operating contractor for INL, to support the development of Lightbridge Fuel™. Under these agreements, as modified from time to time, the Company may make advance payments to support specific contracted project work. These advance payments are recorded as prepaid assets on the balance sheet, and classified as short-term or long-term, depending on the associated performance period remaining. As of June 30, 2026 and December 31, 2025, we had total short-term and long-term advance payments to BEA of $1.9 million and $1.2 million, respectively.

As of June 30, 2026, we had an additional $0.2 million of total short-term and long-term prepaid R&D project development costs related to cladding, critical heat flux testing, and a feasibility study for an expandable fuel facility, which are each classified on the balance sheet as short-term or long-term depending on their estimated project completion date.