Q2 2022 Nuscale Power Corp Earnings Call

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Good afternoon, and welcome to your new scale power second quarter 2022 earnings results Conference call. Today's call is being recorded all participants are in a listen only mode. After management's prepared remarks, there will be a question and answer session. If you would like to ask a question.

Speaker 2: Good afternoon, and welcome to New Scale Power second quarter 2022 earnings results conference call. Today's call is being recorded. All participants are in a listen only mode. After management's prepared remarks, there will be a question and answer session. If you would like to ask a question on the telephone, press star 1 on your telephone keypad.

Good afternoon and welcome to New Scale Power second quarter 2022 earnings results conference call. Today's call is being recorded. All participants are in a listen-only mode. After management's prepared remarks there will be a question and answer session. If you would like to ask a question on the telephone, please press star 1 on your telephone keypad.ada confidentass Children's bec Apo

On the telephone please press star one on your telephone keypad.

Speaker 2: A replay of today's conference will be available and accessible on New Scale's website at ir.newscalepower.com.

A replay of today's conference will be available and accessible on new skills website, and I are thought to new scale power Dot com.

A replay of today's conference will be available and accessible on New Scale's website at ir.newscalepower.com.

Speaker 2: The web replay will be available for 30 days following the earnings call.

The web replay will be available for 30 days following the earnings call.

A telephone replay a replay will also be available for seven days through a registration link also accessible on your skills website.

Speaker 2: A telephone replay will also be available for seven days through a registration link also accessible on New Skills' website. At this time for opening remarks, I would like to turn the call over to Diane Hughes, Vice President of Marketing and Communications. Please go ahead, Mr. Hughes.

The web replay will be available for 30 days following the earnings call.

A telephone replay will also be available for seven days through a registration link also accessible on New Skills' website. At this time for opening remarks, I would like to turn the call over to Diane Hughes, Vice President of Marketing and Communications. Please go ahead, Ms. Hughes.

At this time for opening remarks, I would like to turn the call over to Diane He was vice president of marketing and Communications. Please go ahead Ms use.

Speaker 3: Thank you. Welcome to new skills 2022 second quarter earnings results conference call with us today. Our president and chief executive officer, John Hopkins and she financial officer Chris Culver. Please note that, although the merger with spring valley closed on May 2nd this report and our 10-Q will cover the entire 3 and 6 months ended June 30th. The income statement includes only new scale expenses.

Thank you welcome to Newschannel 2022 second quarter earnings results conference call with US today are president and Chief Executive Officer, John Hopkins, and Chief Financial Officer, Chris Colbert.

Thank you. Welcome to New Scale's 2022 second quarter earnings results conference call. With us today are President and Chief Executive Officer John Hopkins and Chief Financial Officer Chris Kolberg. Please note that although the merger with Spring Valley closed on May 2nd, this report and our 10Q will cover the entire three and six months ended June 30th. The income statement includes only New Scale expenses.

Please note that although the merger with spring Valley closed on May 2nd. This report in our 10-Q will cover the entire three and six months ended June 30th.

Income statement includes only new scale expenses.

We are not including spring valleys expenses prior to the merger and they had no expenses subsequently.

Speaker 3: We are not including spring valleys expenses prior to the merger, and they had no expenses subsequently.

We are not including Spring Valley's expenses prior to the merger and they had no expenses subsequently. We issued the earnings release earlier today which can be found in the investor relations section of our website at IR.newscalepower.com. We will reference the release while conducting today's call. Before getting started I'd like to refer you to our Safe Harbor disclaimer regarding forward-looking statements which is included in the press release. During today's call we'll be making forward-looking statements which reflect our current views.

We issued the earnings released earlier today, which can be found in the Investor Relations section of our website at IR Dot Newsgirl power Dot com.

Speaker 3: We issued the earnings release earlier today, which can be found in the investor relations section of our website at IR.newscalepower.com. We will reference the release while conducting the analysis.

All reference to release, while conducting today's call.

Speaker 3: Before getting started, I'd like to refer you to our Safe Harbor disclaimer regarding forward-looking statements, which is included in the press release.

Before getting started I'd like to refer you to our safe Harbor disclaimer regarding forward looking statements, which is included in the press release during today's call, we'll be making forward looking statements, which reflect our current views of existing trends and information. There is an inherent risk that actual results and experience could differ materially.

Speaker 3: During today's call, we'll be making forward-looking statements, which reflect our current views of existing trends and information. There is an inherent risk that actual results and experience could differ materially. You can find a discussion of our risk factors, which could potentially contribute to such differences in our S1 and other filings with the SEC.

You can find a discussion of our risk factors, which could potentially contribute to such differences in our S. One and other filings with the SEC.

Also during this call we may discuss certain non-GAAP financial measures reconciliations of these amounts to the comparable GAAP measures are included in the earnings release and SEC filings.

Speaker 3: Also during this call, we may discuss certain non-GAAP financial measures. Reconciliations of these amounts to the comparable GAAP measures are included in the earnings release and SEC filings.

Speaker 3: I'll now turn the call over to John Hopkins, New Skills President and Chief Executive Officer. John .

I'll now turn the call over to John Hopkins, New skills, President and Chief Executive Officer John .

filings. I'll now turn the call over to John Hopkins, New Skills President and Chief Executive Officer. John ?

Thank you Diane and good afternoon, everyone.

Speaker 4: We're excited to be reporting second quarter results in inaugural quarterly report as a publicly traded company.

Cited to be reporting second quarter results and inaugural quarterly report as a publicly traded company.

Thank you, Diane, and good afternoon, everyone.

We are excited to be reporting second quarter results and inaugural quarterly report as a publicly traded company.

Speaker 4: I will cover our accomplishments, both in terms of visit development and in spreading our message about nuclear energy's compelling role in a clean energy transition.

I will cover our accomplishments both in terms of visits of element and then spreading that message about nuclear energy is compelling role in the clean energy transition.

I will cover our accomplishments both in terms of visit development and in spreading our message about nuclear energy's compelling role in a clean energy transition.

Speaker 4: I will also highlight recent business developments in the context of a five key near-term strategic objective.

I will also highlight recent business developments in the context of our five key a key near term strategic objectives.

I will also highlight recent business developments in the context of our five key near-term strategic objectives.

Speaker 4: Then my colleague, NuScale CFO Chris Colbert, will provide a detailed update on our financial results and reaffirm our outlook.

And my colleague New scale CFO , Chris Colbert will provide a detailed update on our financial results and reaffirmed our outlook.

Then my colleague, NuScale CFO Chris Colbert, will provide a detailed update on our financial results and reaffirm our outlook.

We are enthusiastic about the future of nuclear power and specifically the role new scale will play in that future.

Speaker 4: We are enthusiastic about the future of nuclear power, and specifically the role NuScale will play in that future.

We are enthusiastic about the future of nuclear power and specifically the role NuScale will play in that future.

Speaker 4: We reached an important milestone on May 2nd when we closed our merger with Spring Valley Acquisition Corp. becoming the first next generation nuclear energy technology company to list our shares in the U.S. market.

We reached an important milestone in may when we closed our merger with Spring Valley acquisition Corp.

Coming to <unk> next generation nuclear energy Technology company to list our shares in the U S market.

an important milestone on May 2nd when we closed our merger with Spring Valley Acquisition Corp., becoming the first next generation nuclear energy technology company to list our shares in the U.S. market.

Speaker 4: As the first publicly traded SMR technology provider, we have even more opportunities and venues to make our case for nuclear. Especially modern small-scale nuclear as a safe, clean, and economic source of cost effective 100% carbon-free baseload power.

As the first publicly traded <unk> technology provider, we have even more opportunities and venues to make our case for nuclear.

As the first publicly traded SMR technology provider, we have even more opportunities and venues to make our case for nuclear.

Especially modern small scale nuclear as a safe clean and economic source of cost effective 100% carbon free Baseload power.

Especially modern small-scale nuclear has a safe, clean, and economic source of cost-effective, 100% carbon-free baseload power.

Speaker 4: We believe New Scale is a pure play on a critical emerging trends in clean energy, specifically zero carbon base load and next generation nuclear technology. We appreciate theisms we've here today and are among others into new year Horotide 2030. We appreciate that... just in time for

We believe new scale as a pure play on a critical emerging trends in clean energy, specifically zero carbon Baseload and next generation nuclear technology.

We believe New Scale is a pure play on critical emerging trends in clean energy.

We appreciate the strong interest from investors.

Specifically, zero-carbon baseload in next generation nuclear technology.

Speaker 4: We intend to keep working aggressively to meet our operational and financial health care Jessica,

We intend to keep working aggressively to meet our operational and financial milestones build their business and change the landscape of clean energy.

We appreciate the strong interest from investors.

Speaker 4: build our business, and change the landscape of clean energy.

We intend to keep working aggressively to meet our operational and financial milestones.

Speaker 4: Now, more than ever, the world needs more clean energy sources, and we believe new skill is primed to fulfill this need in a disproportionate way.

Now more than ever the world needs more clean energy sources, and we believe new scale is primed to fulfill this need in a disproportionate way.

build our business, and change the landscape of clean energy.

Now, more than ever, the world needs more clean energy sources, and we believe new skill is primed to fulfill this need in a disproportionate way.

Speaker 4: With the tripling of natural gas prices in some areas and a rising threat to energy security around the world, the need is even more urgent for reliable, clean electricity produced from nuclear.

With the tripling of natural price gas prices in some areas and a rising threat to energy security around the world. The need is even more urgent for reliable electricity produced from nuclear.

With the tripling of natural gas prices in some areas and a rising threat to energy security around the world, the need is even more urgent for reliable, clean electricity produced from nuclear.

Let me give you some examples.

Speaker 4: Faced with a fragile electrical grid and the prospect of summertime blackouts, California agreed to earmark hundreds of millions of dollars to buy power from fossil fuel plants that are scheduled to shut down as soon as next year.

Faced with a fragile electrical grid and the prospect of summer time, blackouts, California agreed to earmark hundreds of millions of dollars to buy power from fossil fuel plants that are scheduled to shut down as soon as next year.

Just let me give you some examples.

Faced with a fragile electrical grid and the prospect of summertime blackouts, California agreed to earmark hundreds of millions of dollars to buy power from fossil fuel plants that are scheduled to shut down as soon as next year.

Tesla is telling its customers in ERCOT, the Texas grid, operator to charge their cars only at night.

Speaker 4: Tesla is telling its customers in ERCOT, the Texas grid operator, to charge their cars only at night.

Tesla is telling its customers in ERCOT, the Texas grid operator, to charge their cars only at night.

Russia is reduced natural glass gas flowing to Europe , and the Nordstrom, one pipeline down to 20% of capacity.

Speaker 4: Russia has reduced natural gas flowing to Europe in a Nordstrom 1 pipeline down to 20% of capacity.

Russia has reduced natural gas flowing to Europe in the Nordstrom 1 pipeline down to 20% of capacity.

Speaker 4: In Japan, it's facing brutal heat waves without efficient energy to meet demand.

And Japan is facing brutal heatwaves without efficient energy to meet demand.

In Japan, it is facing brutal heat waves without efficient energy to meet demand.

Speaker 4: Renewables such as solar and wind are important to our energy future, but they're not the whole story. Every day more people are realizing the necessity of nuclear power. To combat climate change, we must replace greenhouse gas intensive fossil fuels with emissions-free energy. Nuclear is the only key minus the energy... Curiosity on the Team

Renewables, such as solar and wind are important to our energy future.

Not the whole story every day more people are realizing the necessity of nuclear power.

Renewables, such as solar and wind, are important to our energy future, but they are not the whole story. Every day more people are realizing the necessity of nuclear power.

Combat climate change, we must replace greenhouse gas intensive fossil fuels with emissions free energy nuclear.

To combat climate change, we must replace greenhouse gas intensive fossil fuels with emissions-free energy.

Nuclear is the only baseload solution.

These scales as the Mark and deliver base load power and load following better supporting grids that are reliant on intermittent solar and wind generation.

Speaker 4: NuScale's SMR can deliver base load power and load follow, better supporting grids that are reliant on intermittent solar and wind generation.

Nuclear is the only baseload solution.

New Scale's SMR can deliver base load power and load follow, better supporting grids that are reliant on intermittent solar and wind generation.

Speaker 4: Now I will discuss our Q2 accomplishments and what we foresee for the months ahead.

Now I will discuss our Q2 accomplishments and what we foresee for the months ahead.

Now I will discuss our Q2 accomplishments and what we have received from the months ahead.

Speaker 4: Best way to do this is to use the context of our five key strategic objectives for 2022, which we shared on our June business update call.

Best way to do this is to use a context of our five key strategic objectives for 2022.

The best way to do this is to use the context of our five key strategic objectives for 2022, which we shared on our June Business Update Call.

Which we shared on our June business update call.

As a reminder, our five year near term objectives are one we intend to secure our next committed customer by year end.

Speaker 4: As a reminder, our five-year near-term objectives are, one, we intend to secure our next committed customer by year end.

As a reminder, our five-year near-term objectives are, one, we intend to secure our next committed customer by year-end. For more information, visit www.fema.gov

Speaker 4: Two, we intend to issue long lead material specifications for the nuclear reactor pressure vessel.

Two we intend to issue long lead materials specifications for the nuclear reactor pressure vessel.

2. We intend to issue long lead material specifications for the nuclear reactor pressure vessel.

Three we intend to complete the reactor building design for.

Speaker 4: Three, we intend to complete the reactor building design.

Speaker 4: Four, we intend to submit a standard design approval application to the US Nuclear Regulatory Commission for the Voyager 6 module power plant that UAMPS plans deploy. Five, we intend to complete our standard plan design, which I'll also refer to as SPD throughout my review.

We intend to submit a standard design approval application to the U S nuclear regulatory commission for the Voyager six module power plants that you have plans to deploy.

Three, we intend to complete the reactor building design.

Four, we intend to submit a standard design approval application to the US Nuclear Regulatory Commission for the Voyager 6 module power plant that UAMPS plans to deploy. Five, we intend to complete our standard plan design, which I'll also refer to as SPD throughout my remarks.

We intend to complete our standard plan design, which you'll also referred to as SPD throughout my remarks.

Speaker 4: Now let's look at the progress we made in Q2 towards each of these goals.

Now, let's look at the progress we've made in Q2 towards each of these goals.

Speaker 4: First, we continue to build a potential customer pipeline.

First we continue to build a potential customer pipeline.

Now let's look at the progress we made in Q2 towards each of these goals.

Speaker 4: The progress is solid at our anchor customer UAMPs in the US, and we continue to strengthen our six relationships around the world.

The progress is solid at our anchor customer you asked in the U S and we continue to strengthen our six relationships around the world.

First, we continue to build a potential customer pipeline.

The progress is solid at our anchor customer UAMPs in the US and we continue to strengthen our six relationships around the world.

Moreover, we have 18 sign an active <unk> in 11 countries and nine strategic relationships some of which I'll discuss in a moment.

Speaker 4: Moreover, we have 18 signed and active MOUs in 11 countries and nine strategic relationships, some of which I'll discuss in a moment.

Moreover, we have 18 signed and active MOUs in 11 countries and 9 strategic relationships, some of which I will discuss in a moment.

Speaker 4: Customer opportunities in a pipeline are now at over 100, and we're happy at the level of discussions we're having across the board.

Customer opportunities in our pipeline are now at over 100, and we're happy with the level of discussions we're having across the board.

Customer opportunities in a pipeline are now at over 100, and we are happy to level the discussions we are having across the board.

Speaker 4: Looking overseas, we have highly concerted efforts in Romania. On June 26, the US government committed $14 million towards a front-end engineering design study in Romania that could lead to the deployment of our Voyager 6 nuclear power colony.

Looking overseas, we have highly concerted efforts in Romania by.

By June 26, the U S government committed 14 million towards the front end engineering design study in Romania that could lead to the deployment of our Voyager six nuclear power plant.

Looking overseas, we have highly concerted efforts in Romania.

On June 26th, the U.S. government committed $14 million towards a front-end engineering design study in Romania that could lead to the deployment of our Voyager 6 nuclear power plant.

Speaker 4: This eight-month effort, which is expected to cost $28 million in total, will include contributions from Romania, ESSI, and Nuclear Electrica in other industry participants.

Save months effort, which is expected to cost $28 million in total will include contributions from Romania assay nuclear electric and.

This eight-month effort, which is expected to cost $28 million in total, will include contributions from Romania, ESSI, and Nuclelelectrica and other industry participants.

Other industry participants.

Speaker 4: The project will provide the Romanians with key site-specific data needed for the deployment of our power plant.

The project will provide the Romanians with key site specific data needed for the deployment of our power plant.

The project will provide the Romanians with key site-specific data needed for the deployment of our power plant.

Speaker 4: such as cost, construction, schedule, and licensing detail.

Cost construction schedule and licensing details.

Speaker 4: In Bredemir, on May 23rd, the United States announced it would provide Romania with a new scale small module reactor, SMR, simulator for Romania to establish an E2 center at Universi Politecnica in Bucharest.

Britta mirror on May 23rd United States analysis, It would provide Romania with a new scale small module reactor <unk> stimulator for Romania to establish an <unk> center at University of Polytechnic in Bucharest.

such as cost, construction, schedule, and licensing details.

On May 23rd, the United States announced it will provide Romania with a new scale small module reactor, SMR, simulator for Romania to establish an E2 center at Universite Politecnica in Bucharest.

<unk> Centre will further romania's goals of becoming a leader in secure and safe <unk> deployment, and an S tomorrow educational and training hub in the region.

Speaker 4: The E2 Center will further Romania's goals of becoming a leader in secure and safe SMR deployment in an SMR educational and training hub in the region.

The E2 Center will further Romania's goals of becoming a leader in secure and safe SMR deployment in an SMR educational and training hub in the region.

This project is already underway, we are working with the University on planning coordination and infrastructure needs.

Speaker 4: This project is already underway. We are working with the university on planning, coordination, and infrastructure needs.

This project is already underway.

Speaker 4: We're also currently working to organize a supplier day event in September to further support our efforts in Romania. During the quarter

We're also currently working to organize a supplier day event in September to further support our efforts in Romania.

We are working with the University on planning, coordination, and infrastructure needs.

We are also currently working to organize a Supplier Day event in September to further support our efforts in Romania.

During the quarter, we also made great progress in Poland.

On July eight our Polish partner, <unk>, a leading copper and silver mining conglomerate at large industrial energy user submitted to their regulators and application to assess new scales technology.

Speaker 4: On July 8th, our Polish partner KGHM, a leading copper and silver mining conglomerate and large industrial energy user, submitted to their regulators an application to assess new skills technology.

During the quarter, we also made great progress in Poland.

On July 8th, our Polish partner KGHM, a leading copper and silver mining conglomerate and large industrial energy user, submitted to their regulators an application to assess new skills technology.

Speaker 4: Meanwhile, our proposal for the full scope of work has been issued to KGHM and is now under review.

Meanwhile, our proposal for the full scope of work has been issued U K G. H M. It is now under review.

Meanwhile, our proposal for the full scope of work has been issued to KGHM and is now under review.

Speaker 4: In early August , we expect to receive the tender offer and statement of commencement for the licensing work and start negotiations on the full scope.

In early August we expect to receive the tender offer and statement of commencement for the licensing work and start negotiations on the full scope.

In early August , we expect to receive the tender offer and statement of commencement for the licensing work and start negotiations on the full scope.

To support the licensing process <unk> intends to provide Polish regulators with updated licensing and safety reports by the end of October .

Speaker 4: To support the licensing process, KTHEM intends to provide Polish regulators with updated licensing and safety reports by the end of October .

To support the licensing process, KTHM intends to provide Polish regulators with updated licensing and safety reports by the end of October .

We remain on track with this goal to choose a potential site by the end of the current year.

Speaker 4: to remain on track with its goal to choose a potential site for the end of the current year.

to remain on track with this goal to choose a potential site for the end of the current year.

All in all we are pleased with our progress toward security that second committed customer by year end.

Speaker 4: All in all, we are pleased with our progress towards securing that second committed customer by year end.

All in all, we are pleased with our progress toward securing that second committed customer by year end.

Second is the long lead material specification for the reactor pressure vessel one of the major components of the new scale power module, which was completed in may and.

Speaker 4: Second is the long lead material specification for the reactor pressure vessel, one of the major components of the NuScale power module.

Second is the long lead material specification for the reactor pressure vessel.

Speaker 4: In addition to supporting our ability to place long-lead material on our orders, this also represents early completion of another milestone in the DOE development program.

In addition to supporting our ability to place long lead material orders. This also represents early completion of another milestone in the development program.

One of the major components to the NuScale Power Module.

which was completed in May.

In addition to supporting our ability to place long-lead material orders, this also represents early completion of another milestone in the DOE Development Program.

In addition to material specs, we have initiated certain pre manufacturing activities to ensure that we can support client manufacturing schedules.

Speaker 4: In addition to material specs, we have initiated certain pre-manufacturing activities to ensure that we can support client manufacturing schedules.

In addition to material specs, we have initiated certain pre-manufacturing activities to ensure that we can support client manufacturing schedules.

We executed the upper or PV forging die purchase with <unk> in April of 2022 to prepare for the start of manufacturing.

Speaker 4: We executed the upper RPV forging dye purchase with Doosan in April of 2022 to prepare for the start of manufacturing.

We executed the upper RPV forging dye purchase with Doosan in April of 2022 to prepare for the start of manufacturing.

Speaker 4: We also completed physical testing of the steam generator tube insulation, demonstrating progress on our manufacturing readiness.

We also completed physical testing of the steam generator tube installation demonstrating progress on our manufacturing readiness.

We also completed physical testing of the steam generator tube insulation.

Speaker 4: We have completed negotiations with PAR systems on term sheet for manufacturing procurement of the reactor building crate.

We have completed negotiations with power systems on term sheet for manufacturing and procurement of the reactor building crane.

Demonstrating progress on our manufacturing readiness.

We have completed negotiations with PAR systems on term sheet for manufacturing and procurement of the reactor building crane.

Speaker 4: In late July , we announced an agreement with National Technical Systems to establish an equipment qualification test chain.

In late July we announced an agreement with National technical systems to establish an equipment qualification test chamber.

In late July , we announced an agreement with National Technical Systems to establish an equipment qualification test chamber.

Speaker 4: which will allow us to qualify components that meet US Nuclear Regulatory Commission in plant specific requirements.

Which will allow us to qualify components that made us nuclear regulatory commission and plant specific requirements.

which will allow us to qualify components that meet U.S. Nuclear Regulatory Commission and plant-specific requirements.

Speaker 4: The initial FXM19 trial foraging was completed this July , and an additional foraging manufacturing trial is currently underway.

<unk> FX them 19 trial <unk> was completed this July and an additional four gene manufacturing trial is currently underway.

The initial FXM19 trial foraging was completed this July , and an additional foraging manufacturing trial is currently underway.

We also completed pressure sensitive proof of concept testing.

Speaker 4: We also completed pressure sensor proof of concept tests.

The key takeaway from all of this activity is that new scale is extensively focused on readiness.

Speaker 4: The key takeaway from all of this activity is that New Skill is extensively focused on ready-

We also completed pressure sensor proof of concept testing.

The key takeaway from all of this activity is that NewSkill is extensively focused on readiness.

By actively engaging with our manufacturing partners and completed fabrication test for first of a kind components.

Speaker 4: by actively engaging with our manufacturing partners in completing fabrication tests for first of a kind.

by actively engaging with our manufacturing partners in completing fabrication tests for first-of-a-kind components.

Speaker 4: I would go so far as to contend that no other Western SMR developer is better prepared to start planned construction than New Scale.

I would go so far as to contend that no other western SLR developer is better prepared to start plant construction the new scale.

I would go so far as to contend that no other western SMR developer is better prepared to start planned construction than New Scale.

Moving along to our third objective, we completed some key elements of reactor building design.

Speaker 4: Moving along to our third objective, we completed some key elements of reactor building design.

Moving along to our third objective.

Speaker 4: We issued the Revision Zero Reactor Building Structural Design on July 1st.

We issued the revision zero reactor building structural design on July one.

We completed some key elements of reactor building design.

Speaker 4: And another milestone completion for DOE Development Program.

And another milestone completion for a development program.

We issued the Revision Zero reactor building structural design on July 1st.

Speaker 4: Fourth, we made progress on critical activities that support the Stand Design Approval Application, or SDAA. This included delivery of reactor-building crane design.

Fourth we made progress on critical activities that support our standard design approval application or SDA. A this included delivery of reactor building Crane design inputs completion of reactor building seismic inputs for fuels analysis and emergency core cooling system valve design deliverables.

and another milestone completion for DOE Development Program.

Fourth, we made progress on critical activities that support the Stand Design Approval Application, or SDAA. This included delivery of reactor-building crane design inputs, completion of reactor-building seismic inputs for fuels analysis, and emergency car cooling system valve design deliverables.

Speaker 4: completion of reactor building seismic inputs for fuels analysis, an emergency car cooling system valve design delivery

We also submitted revision three of our method by which the emergency planning zone size will be established.

Speaker 4: We also submitted revision three, a method by which the emergency planning zone size will be established.

We also submitted Revision 3, a method by which the Emergency Planning Zone size will be established.

Speaker 4: Testing support of the SDAA is ongoing at the New Scale Integral System Test Facility in Oregon.

Testing in support of the SDA is ongoing at the new scale integral system test facility in Oregon.

Testing support of the SDAA is ongoing at the New Scale Integral System Test Facility in Oregon.

I want to underscore an important facet of our test efforts.

Speaker 4: I want to underscore an important facet of our test.

Speaker 4: The fact that NuScale has reached test mode shows that our efforts are real and are moving quickly toward manufacturing and commercialization.

Fact that new scale is reached test mode shows that our efforts are real and they are moving quickly towards manufacturing and commercialization.

I want to underscore an important facet of our test efforts.

The fact that NuScale has reached test mode shows that our efforts are real and they are moving quickly toward manufacturing and commercialization.

Speaker 4: This is a huge differentiator via the other advanced technology

As a huge differentiator via the other advanced technology providers.

This is a huge differentiator via the other advanced technology providers.

Finally, the SPD is well underway with completion still projected for year end.

Speaker 4: Finally, the SPD is well underway with completion still projected for year end.

Finally, the SPD is well underway with completion still projected for year end.

Speaker 4: By completing the SPD in advance of any construction activities, our customers can be confident that we have thought through the challenges of deploying all aspects of a new scale.

By completing the SPD in advance of any construction activities our customers can be confident that we have thought through the challenges of deploying all aspects of a new scale new scale plant.

By completing the SBD in advance of any construction activities, our customers can be confident that we have thought through the challenges of deploying all aspects of a new scale plant.

Leading this SPD at our expense saves our customers money that they can then allocate precise specific design changes as opposed to helping foot the bill for the design of a plant.

Speaker 4: Bleeding this SBD at our expense saves our customers money that they can then allocate for site-specific design changes, as opposed to helping foot the bill for the design of a plant.

Pleading this SBD at our expense saves our customers money that they can then allocate precise specific design changes.

We are pleased with our progress on these near term objectives.

as opposed to helping foot the bill for the design of a plant.

Speaker 4: Furthermore, we attain important accomplishments outside of these five priorities.

Furthermore, we obtained important accomplishments outside of these five priorities, let me elaborate.

We are pleased with our progress on these near-term objectives.

Furthermore, we attained important accomplishments outside of these five priorities.

Most importantly, we formed a new Voyager service and delivery business unit or VSP. This unit will be comprised of services supply chain and client management functions.

Speaker 4: Most importantly, we formed the new Voyager Service and Delivery Business Unit, or VSD. This unit will be comprised of services, supply chain, and client management functions.

Let me elaborate.

Most importantly, we formed the new Voyager Service and Delivery Business Unit, or VSD. This unit will be comprised of services, supply chain, and client management functions.

The BSD will help us to more effectively deliver our voyager plants and services, which in turn.

Speaker 4: The VSD will help us to more effectively deliver our Voyager plants and services, which in turn, help us to more effectively deliver our Voyager plants and services, which in turn,

The VSD will help us to more effectively deliver our Voyager plants and services, which in turn,

We will help our customers more easily operate and maintain a voyager plant.

Speaker 4: will help our customers more easily operate and maintain a Voyager plan.

Speaker 4: This unit is a key step in our maturization from an R&D organization to a product services and delivery enterprise.

This unit is a key step in our maturation from an R&D organization to a product services and delivery enterprise.

will help our customers more easily operate and maintain a Voyager plant.

This unit is a key step in our maturization from an R&D organization to a product services and delivery enterprise.

The BSD will be led by Tom Monday, who previously served as Chief commercial officer, managing director for the United Kingdom, and Europe , and a vice President of program management.

Speaker 4: who previously served as Chief Commercial Officer, Managing Director for the United Kingdom and Europe , and the Vice President, Program Manager.

The VSD will be led by Tom Mundey.

who previously served as Chief Commercial Officer, Managing Director for the United Kingdom and Europe , and a Vice President of Program Management.

Speaker 4: Prior to joining New Scale, Tom served as founding CEO and president of Exelon Nuclear Partners LLC.

Prior to joining new scale com served as founding CEO and president of Exelon nuclear partners LLC.

Prior to joining NuScale, Tom served as founding CEO and President of Exelon Nuclear Partners LLC.

Speaker 4: the operating and services arm of a well-established nuclear-generating

The operating and services arm of a well established nuclear generating company.

Speaker 4: I believe Tom's skill and expertise will lead VSD to a great

Believe timescale and expertly expertise will evs D to a great success.

the operating and services arm of a well-established nuclear generating company.

I believe Tom's skill and expertise will lead VSD to a great success.

During Q2, we also made some significant progress and partnerships.

Speaker 4: During Q2, we also made some significant progress in partnership with the

Most importantly is the license agreement with our partner Paragon.

During Q2, we also made some significant progress in partnerships.

Speaker 4: Most importantly is the license agreement with our partnerwald.

Speaker 4: which will enable widespread use of our NRC-approved highly integrated protection system or HIPS.

Which will enable widespread use of our NRC approved highly integrated protection system or <unk> platform.

Most importantly is the license agreement with our partner Paragon.

which will enable widespread use of our NRC-approved Highly Integrated Protection System, or HIPS, platform.

Paragon has a great partner for us for over 30 years. They have provided the nuclear sector with established technology solutions, such as instrumentation and control systems.

Speaker 4: Paragon is a great partner for us. For over 30 years, they have provided the nuclear sector with established technology solutions, such as instrumentation and control systems. The sophisticated technology that has been developed to ensure that the nuclear system is able to control the nuclear system, and to ensure that the nuclear system is able to control the nuclear system, and to ensure that the nuclear system is able to control the nuclear system. We are very proud to have the opportunity to talk about the new technology that

Paragon is a great partner for us. For over 30 years they have provided the nuclear sector with established technology solutions.

Sophisticated and repair programs.

Speaker 4: The HIPS platform is the latest iteration of this track record of.

such as instrumentation and control systems.

<unk> platform is the latest iteration of this track record of success.

sophisticated and repair programs. The HIPPS platform is the latest iteration of this track record of success.

<unk> platform is an efficient cost effective and cyber secure reactor protection solution.

Speaker 4: The HIPS platform is an efficient, cost-effective, and cyber-secure reactor protection solution.

NIBs platform is an efficient, cost-effective, and cyber-secure reactor protection solution.

Speaker 4: We developed the HISS platform with Paragon's Rock Creek Innovation subsidiary, which develops safe.

Develop the his prep platform with paradigms Rock Creek innovation subsidiary.

Which developed safety critical applications. Our objective is to make the hips technology available to the entire nuclear power industry.

We developed the HIPS platform with Paragon's Rock Creek Innovation subsidiary.

Speaker 4: Our objective is to make the HIPS technology available to the entire nuclear power industry.

which develops safety critical applications.

Our objective is to make the HIPPS technology available to the entire nuclear power industry.

Enhancing the safety of all nuclear plants improves public perception of nuclear power, that's supporting our own marketing efforts.

Speaker 4: Enhancing the safety of all nuclear plants improves public perception of nuclear power, thus supporting our own marketing.

Enhancing the safety of all nuclear plants improves public perception of nuclear power, thus supporting our own marketing efforts.

Speaker 4: We also announced a collaboration with Lightbridge Fuel, an advanced nuclear fuel technology...

We also announced a collaboration with light bridge fuel and advanced nuclear fuel technology company the deal.

We also announced a collaboration with Lightbridge Fuel, an advanced nuclear fuel technology Company.

Speaker 4: The DOE awarded MIT $800,000 to study the use of excellent tolerant fuels in our SMR.

Awarded M. I T $800000 to study the use of accident tolerant fuels and our <unk>.

The DOE awarded MIT $800,000 to study the use of excellent tolerant fuels in our SMR.

Speaker 4: By studying and stimulating the usage and safety performance of their fuel, we have the potential to improve the safety profile of nuclear energy even further beyond the substantial improvements offered by our SMR design.

By studying and stimulating the usage and safety performance of their fuel we have the potential to improve the safety profile of nuclear energy, even further be honest substantial improvements offered by rest tomorrow design.

By studying and simulating the usage and safety performance of their fuel, we have the potential to improve the safety profile of nuclear energy even further beyond the substantial improvements offered by ASMR Design.

Now, let's move to the latest regulatory developments.

Speaker 4: Two weeks ago, the NRC voted unanimously to approve the design certification of our SMR.

Two weeks ago, the NRC voted unanimously to approve the design certification of our SME.

Now, let's move to the latest regulatory developments.

Two weeks ago, the NRC voted unanimously to approve the design certification of our SMR.

Speaker 4: The vote represents the final NRC approval of our design.

The vote represents the final NRC approval of our design.

Speaker 4: We are the only SMR vendor to submit an application for design approval and the only SMR design approval so far by the NRC.

We are the only <unk> vendor to submit an application for design approval and the only ask Lamar design approval, so far by the NRC.

The vote represents the final NRC approval of our design.

We are the only SMR vendor to submit an application for design approval and the only SMR design approval so far by the NRC.

We anticipated this approval in large part because of the NRC had already issued a standard design approval for a 50 megawatt design back in 2020.

Speaker 4: We anticipated this approval in large part because the NRC had already issued a standard design approval for a 50 megawatt design back in 2020.

We anticipated this approval in large part because the NRC had already issued a standard design approval for a 50 megawatt design back in 2020.

Speaker 4: Once an SDA is issued, the final rule is overwhelmingly likely to be awarded. To avoid confusion, keep in mind that our fourth near-term objective, the SDAA, is to

Once an SBA has issued the final rule is overwhelmingly likely to be awarded to avoid confusion keep in mind that our fourth near term objective the FTAA.

Once an SDA is issued, the final rule is overwhelmingly

likely to be awarded. To avoid confusion, keep in mind that our fourth near-term objective, the SDAA,

Felicia refers to our newer 77 megawatts six module design.

Speaker 4: completion refers to our newer 77 megawatt 6 module.

The honest development, which applies directly to us the general support for nuclear continues to grow.

completion refers to our newer 77 megawatt 6 module design.

Speaker 4: Beyond this development, which applies directly to us, the general support for nuclear continues to grow.

Beyond its development, which applies directly to us, the general support for nuclear continues to grow.

For example at.

Speaker 4: At this year's G7 Global Infrastructure Partnership Summit, President Biden reaffirmed our country's pledge to combat climate change in part by supporting our SMR deployment in Romania.

This year's G. Seven global infrastructure partnership Summit, President Biden reaffirmed our countries pledged to combat climate change in part by supporting our SLR deployment in Romania.

For example,

At this year's G7 Global Infrastructure Partnership Summit, President Biden reaffirmed our country's pledge to combat climate change in part by supporting our SMR deployment in Romania.

Speaker 4: This is a key demonstration of the White House partnership for global infrastructure and investment and a major accomplishment for our business.

This is a key demonstration of the White house partnership for global infrastructure investment and a major accomplishment for our business.

This is a key demonstration of the White House partnership for global infrastructure and investment in a major accomplishment for our business.

Furthermore, on your member countries are advancing to reduce greenhouse gas emissions based on their nation's energy portfolios and infrastructure.

Speaker 4: Furthermore, in Europe , member countries are advancing to reduce greenhouse gas emissions based on their nations energy portfolios and infrastructure.

Furthermore, in Europe , member countries are advancing to reduce greenhouse gas emissions based on their nation's energy portfolios and infrastructure.

Speaker 4: We applaud the EU latest decision to rightfully include nuclear technologies, a form of green investment under the EU taxonomy.

We applaud the EU latest decision to rightfully include nuclear technologies, a form of green investment under the EU taxonomy.

We applaud the EU latest decision to rightfully include nuclear technologies as a form of green investment under the EU taxonomy.

Speaker 4: The Europeans are starting to realize that nuclear is critical to their future.

The Europeans are starting to realize that nuclear is critical to their future. In fact, it's somewhat surprisingly given their their stated stamps on nuclear Germany recently decided not to retire the remaining three nuclear power plants due to the dire need for this clean source of power.

Speaker 4: fact that, somewhat surprisingly, given their stated stance on nuclear, Germany recently decided not to retire the remaining three nuclear power plants due to the dire need for this clean source of power.

The Europeans are starting to realize that nuclear is critical to their future.

In fact, and somewhat surprisingly given their stated stance on nuclear, Germanly, RISA decided not to retire the remaining three nuclear power plants due to the dire need for this clean source of power.

Speaker 4: Now I'd like to turn the call over to Chris Colbert to cover our financial results. Chris? Thank you, John . And good afternoon, everyone.

Now I'd like to turn the call over to Chris Colbert to cover our financial results Chris.

Now I'd like to turn the call over to Chris Colbert to cover our financial results. Chris?

Thank you John and good afternoon, everyone.

I will discuss our second quarter financial performance update you on our strong capital structure and financial position.

Thank you, John , and good afternoon, everyone.

Speaker 5: update you on our strong capital structure and financial position, then wrap up with reaffirming our outlook for the balance of 2022.

I will discuss our second quarter financial performance.

And then wrap up with reaffirming our outlook for the balance of 2022.

update you on our strong capital structure and financial position, then wrap up with reaffirming our outlook for the balance of 2022.

Speaker 5: You can find all the detailed figures and numbers in our earnings release, so I will focus on the primary drivers of performance.

You can find all the detailed figures and numbers in our earnings release, So I will focus on the primary drivers of performance.

You can find all the detailed figures and numbers in our earnings release, so I will focus on the primary drivers of performance.

Speaker 5: All the figures I referred to will be for the second quarter of 2022 unless I note otherwise.

All the figures I referred to will be for the second quarter of 2022, unless I note otherwise.

All the figures I referred to will be for the second quarter of 2022 unless I know it otherwise.

Speaker 5: As Diane noted at the start of the call, this earnings release in our 10Q will report new scale results for the entire three and six months ended June 30.

As Diane noted at the start of the call. This earnings release, and our 10-Q report <unk> results for the entire three and six months ended June 30th.

As Diane noted at the start of the call, this earnings release in our 10Q will report new scale results for the entire three and six months ended June 30th.

Speaker 5: Note that our income statement includes only new skill expenses.

Note that our income statement includes only new skill expenses.

Speaker 5: You're not including spring valley expenses prior to the merger, and they had no expenses.

We're not including spring valley expenses prior to the merger and they had no expenses subsequently.

Note that our income statement includes only new skill expenses.

We are not including Spring Valley expenses prior to the merger and they had no expenses subsequently. We are not including Spring Valley expenses prior to the merger and they had no expenses

Speaker 5: Since revenue is still small, our focus is on effectively applying our operating expense budget.

Since revenue is still small our focus is on effectively applying our operating expense budget.

Since revenue is still small, our focus is on effectively applying our operating expense budget.

As you would expect with funding in place and a opex grew versus Q1, as we ramped our commercialization plan R&D.

Speaker 5: As you would expect with funding in place in May, OPEX grew versus Q1 as we ramped our commercialization.

As you would expect, with funding in place in May, OPEX grew versus Q1 as we ramped our commercialization plan.

R&D expenses increased due to higher professional fees associated with the standard plant design.

Speaker 5: R&D expenses increased due to higher professional fees associated with the standard plant design. We also increased headcount.

R&D expenses increased due to higher professional fees associated with the standard plant design.

We also increased head count to support our licensing team.

Speaker 5: The increase in G&A resulted from new hires across the organization, partially offset by lower accounting and finance fees.

The increase in G&A resulted from new hires across the organization.

We also increased headcount to support our licensing team.

Actually offset by lower accounting and finance fees.

The increase in G&A resulted from new hires across the organization.

Speaker 5: We spent more on sales and marketing as we built our sales teams and incurred travel expenses as our team worked secure contracts around the world.

We spent more on sales and marketing as we built our sales teams and incurred travel expenses as our team worked to secure contracts around the world.

partially offset by lower accounting and finance fees.

We spent more on sales and marketing as we built our sales teams and incurred travel expenses as our team worked secure contracts around the world.

Joey cost share increased as we incurred higher qualified costs.

Speaker 5: DOE cost share increased as we incurred higher qualifying.

Having covered that we did generate revenue in the quarter and it was somewhat higher than the first quarter.

Speaker 5: Having covered that, we did generate revenue in a quarter, and it was somewhat higher than the first quarter.

The DOE cost share increased as we incurred higher qualifying costs.

Having covered that, we did generate revenue in a quarter and it was somewhat higher than the first quarter.

Speaker 5: The better top line was due to higher procurement and construction activities supporting U-amps, which is cost shared with DOE, more customer early works agreements launching, and more consulting services.

Better top line was due to higher procurement and construction activities.

<unk>, which is cost shared with Doe.

The better top line was due to higher procurement and construction activities supporting UAMPs, which is cost shared with DOE, more customer early works agreements launching, and more consulting services.

More customer early works agreements launching in more consulting services.

Speaker 5: All in, our loss in Q2 was a couple of million less than the loss in Q1.

All in our loss in Q2 was a couple million dollars less than the loss in Q1.

All in, our loss in Q2 was a couple of minutes less than the loss in Q1.

Speaker 5: Looking at other uses of cash, CapEx was minimal, consistent with our asset light model.

Looking at other uses of cash Capex was minimal consistent with our asset light model.

Looking at other uses of cash, CapEx was minimal, consistent with our Asset Light model.

Capex was mostly for software and computer hardware to support R&D.

Speaker 5: CapEx was mostly for software and computer hardware to support R&D.

Speaker 5: Looking ahead, we are well-funded to meet our financial projections over the next several years.

Looking ahead, we are well funded to meet our financial projections over the next several years.

Catabex was mostly for software and computer hardware to support R&D.

<unk> hundred $51 million in cash and no debt gives us substantial financial flexibility and years of runway.

Speaker 5: are $351 million in cash and no debt gives us substantial financial flexibility in years of runway. Let me move now to consider the

Looking ahead, we are well funded to meet our financial projections over the next several years.

Our $351 million in cash and no debt gives us substantial financial flexibility in years of runway.

Let me move now to considerations around our share count.

Speaker 5: Not surprisingly, there is some confusion, which is a natural result of the complexity associated with our transition to being publicly traded.

Not surprisingly there is some confusion, which is a natural result of the complexity associated with our transition to being publicly traded.

Let me move now to considerations around our share count.

Not surprisingly, there is some confusion, which is a natural result of the complexity associated with our transition to being publicly traded.

The slide deck accompanying this call includes a breakout of the share count and how it is determined let.

Speaker 5: slide deck accompanying this call includes a breakout of the share count and how it is determined. Let me walk you through some of the

Let me walk you through some of the key calculations.

The slide deck accompanying this call includes a breakout of the share count and how it is determined.

Speaker 5: At quarter end, there are over 42 million shares of Class A common stock outstanding and over 178 million shares of Class A common stock issueable upon the exchange of New Scale LLC Class B.

At quarter end, there were over 42 million shares of class a common stock outstanding and over 178 million shares of class a common stock issuable upon the exchange of new scale LLC class B units.

Let me walk you through some of the key calculations.

At quarter end, there are over 42 million shares of Class A common stock outstanding and over 178 million shares of Class A common stock issueable upon the exchange of new scale LLC Class B units.

Speaker 5: Class A common stock represents the equity raised during the merger with Spring Valley acquisition.

The class a common stock represents the equity raise during the merger with Spring Valley acquisition Corp.

The Class A common stock represents the equity raised during the merger with Spring Valley Acquisition Corp.

Speaker 5: It is comprised of 14.4 million shares from Spring Valley Class A shareholders, 3.9 million shares from Spring Valley Pound.

It is comprised of $14 4 million shares from spring Valley class a shareholders three 9 million shares from the spring Valley powders and $23 7 million shares from pipe shareholders.

It is comprised of 14.4 million shares from Spring Valley Class A shareholders.

Speaker 5: and 23.7 million shares from PIPE Shareholders.

3.9 million shares from Spring Valley founders.

Speaker 5: The NuScale LLC Class B units represent the legacy shareholders of NuScale Power.

New scale LLC class B units represent the legacy shareholders of new scale power.

and 23.7 million shares from pipe shareholders.

The NuScale LLC Class B units represent the legacy shareholders of NuScale Power.

These legacy class B units are exchangeable into class a shares.

Speaker 5: legacy class B units are exchangeable into class A share.

Speaker 5: In the coming quarters, we expect that shareholders not subject to lockups will elect to exchange their Class B units to Class A share.

In the coming quarters, we expect that shareholders not subject to lock ups will elect to exchange their class B units the class a shares.

These legacy class B units are exchangeable into class A shares.

In the coming quarters, we expect that shareholders not subject to lockups will elect to exchange their Class B units to Class A shares.

There are also more than 35 million shares of class a common stock issuable upon the exercise of outstanding stock options and warrants and $1 6 million shares subject to earn out.

Speaker 5: There are also more than 35 million shares of Class A common stock issueable upon the exercise of outstanding stock options and warrants, and 1.6 million shares subject to earn.

There are also more than 35 million shares of Class A common stock issueable upon the exercise of outstanding stock options and warrants, and 1.6 million shares subject to urno.

Outstanding stock options totaled $14 7 million public warrants comprised of $11 $5 million in private placement warrants amount to $8 9 million.

Speaker 5: Outstanding stock options total $14.7 million. Public warrants comprise $11.5 million. And private placement warrants amount to $8.9 million.

Outstanding stock options total $14.7 million, public warrants comprise $11.5 million, and private placement warrants amount to $8.9 million.

Speaker 5: All warrants are eligible to be exercised over the next five years at a strike price of $11.50.

All warrants are eligible to be exercised over the next five years at a strike price of $11 50.

All warrants are eligible to be exercised over the next five years at a strike price of $11.50.

Speaker 5: Given that the market value of new scale common shares has turned nicely above the strike price level, we have assumed the full exercise of all warrants and related earnouts in our calculation of fully diluted shares.

Given that the market value of new skill common shares is trending nicely above the strike price level, we have assumed the full exercise of all warrants and related earn outs in our calculation of fully diluted shares.

Given that the market value of new scale common shares has turned nicely above the strike price level, we have assumed the full exercise of all warrants and related earnouts in our calculation of fully diluted shares.

Speaker 5: So adding it up on a fully diluted basis, we have 257.2 million shares.

So adding it up on a fully diluted basis, we have $257 2 million shares.

Speaker 5: If any of you need further color on the share count, please reach out to our IR team. We are happy to walk through the calculation.

So adding it up on a fully diluted basis, we have 257.2 million shares.

Any of you need further color on the share count please reach out to our IR team we.

We are happy to walk through the calculations in more detail.

If any of you need further color on the share count.

Speaker 5: We understand the level of complexity around the multiple transactions and want to ensure that everyone following us fully understands how we arrive at our ownership structure.

please reach out to our IR team.

We understand the level of complexity around the multiple transactions and want to ensure that everyone. Following us fully understands how we arrive at our ownership structure.

We are happy to walk through the calculations in more detail.

We understand the level of complexity around the multiple transactions and want to ensure that everyone following us.

Speaker 5: Finally, a quick reminder, we are reaffirming our projections for 2022. This is the same outlook for a shared in December of last year and blessed again in early June on our business update call.

Finally, a quick reminder, we are reaffirming our projections for 2022 this.

fully understands how we arrive at our ownership structure.

This is the same outlook for shared in December of last year and.

Finally, a quick reminder, we are reaffirming our projections for 2022.

And Blessed again in early June on our business update call.

This is the same outlook for a shared in December of last year and blessed again in early June on our business update call

Speaker 5: We are confident in our business plan and happy to see progress as anticipated.

We are confident in our business plan and happy to see progress as anticipated.

Let me turn the call back to John to conclude John .

Speaker 5: Let me turn the call back to John to conclude. John ?

We are confident in our business plan and happy to see progress as anticipated.

Thanks, Chris before we go to Q&A I want to leave you with a few observations to reinforce why I'm, so confident about our future.

Speaker 4: Thanks, Chris. Before we go to Q&A, I want to leave you with a few observations to reinforce why I'm so confident on our future.

Let me turn the call back to John to conclude. John ?

Thanks, Chris. Before we go to Q&A, I want to leave you with a few observations to reinforce why I'm so confident on our future.

First demand for clean safe nuclear power is building all over the world.

Speaker 4: First, demand for clean, safe nuclear power is building all over the world.

Speaker 4: Our industry-leading technology will enable us to supply the world with a carbon-free baseload power it needs to fight climate change.

Our industry, leading technology will enable us to supply the world with a carbon free baseload power it needs to fight climate change.

First, demand for clean, safe nuclear power is building all over the world.

Our industry-leading technology will enable us to supply the world with a carbon-free, baseload power it needs to fight climate change.

Speaker 4: Second, the industry is increasingly recognized that a new scale's next generation nuclear technology is safer, more versatile, and more cost efficient than ever.

Second the industry is increasingly recognize that a new scales next generation nuclear technology is safer more versatile and more cost efficient than ever.

Second, the industry is increasingly recognized that a NuScale's next generation nuclear technology is safer, more versatile, and more cost efficient than ever.

Speaker 4: Our level of safety far exceeds the already high standards of currently operating plans, which uses decades of

Our level of safety Faruk feeds via our already high standards are currently operating plants, which uses decades old technology.

Our level of safety far exceeds the already high standards of currently operating plans.

Speaker 4: And finally, we are making great progress on our five near-term goals, which are securing additional committed customers, issuing long lead material specifications,

And finally, we are making great progress on our five near term goals.

which uses decades-old technology.

Which are securing additional committed customers issuing long lead material specifications.

And finally, we are making great progress on our five near-term goals.

which are securing additional committed customers,

Completing the reactor building design.

issuing long lead material specifications,

And our standard plan designs and advancing our standard design approval application with the NRC.

Speaker 4: in advancing our standard design approval application with the NRC.

Completing the reactor building design.

Pleading our standard plan designs.

We are highly confident we can achieve these goals by year end.

Speaker 4: We are highly confident we can achieve these goals by year end.

in advancing our standard design approval application with the NRC.

With that I will turn to questions. So operator, we're ready to begin the question and answer portion of the call. Please.

Speaker 4: With that, we'll turn to questions. Operator, we're ready to begin the question and answer portion of the Tobii Lab International.

We are highly confident we can achieve these goals by year end.

With that, we'll turn to questions. Operator, we're ready to begin the question and answer portion of the call, please.

Thank you if you would like to ask a question on the phone lines. Today, you can press star one on your telephone keypad. Once again, everyone that is star one to ask a question.

Speaker 2: Thank you. If you would like to ask a question on the phone lines today, you can press star one on your telephone keypad. Once again, everyone that is star one to ask a question. We'll take our first question from Mark Bianchi with cow.

Thank you. If you would like to ask a question on the phone lines today, you can press star one on your telephone keypad. Once again everyone, that is star one to ask a question.

We'll take our first question from Marc Bianchi with Cowen.

Speaker 6: Hey, thank you. I guess starting with maybe for Chris, you've got the revenue outlook that you're reaffirming here for the year. I'm curious how we should be thinking about cash use in the third and the fourth quarter. Should that be something that's sort of shrinking closer towards a break even level or maybe any help on where cash balance is expected to end the year?

Hey, Thank you.

I guess, starting with maybe for Chris.

We'll take our first question from Mark Bianchi with Cowan.

The.

Hey, thank you. I guess starting with maybe for Chris, you've got the revenue outlook that you're reaffirming here for the year. I'm curious how we should be thinking about cash use in the third and the fourth quarter. Should that be something that's sort of shrinking closer towards a break-even level or maybe any help on where cash balance is expected to end the year? Chris, any interest?

You you've got the revenue outlook that you're reaffirming here for the year I'm curious, how we should be thinking about cash use in the third and the fourth quarter.

Should that be something that's that's sort of shrinking closer towards a breakeven level or.

Maybe any help on where cash balance is expected to end the year.

Okay.

Yes.

Speaker 5: Yeah, so in our projections we did in December of last year, we showed a use of I think of $155 million of free cash flow of this year. And so we're still tracking to that. So when you look at what, you know, we had in hand, bless what we had for the first half of the year, you should be able to come to a cash number at the end of the year. We didn't break that out separately and project it, but I believe you can derive it from the information I just cited.

Sections, we did in December of last year, we shared with you so think about $155 million of free cash flow.

Yeah, so in our projections we did in December of last year, we showed a use of I think of 155 million in free cash flow this year. And so we're still tracking that. So when you look at what we had in hand, plus what we had for the first half of the year, you should be able to come to a cash number at the end of the year. We didn't break that out separately or project it, but I believe you can derive it from the information I just cited.

This year, so we're still tracking to that so when you look at what.

We had in hand, plus what we had for the first half of the year.

Should be able to come to a cash number at the end of the year.

Didn't break that out separately, a projected but I believe you can derive it from the information I just cited.

Speaker 6: Mark. Yep. No, that's super helpful. Thanks. I'm curious with the most recent announcement here in the industry with Dow and X-Energy, which I thought was kind of interesting, how do prospects like that look for new scale? Are there industrial applications that you're discussing with customers that could be...

Mark.

No that's super helpful. Thanks.

I'm curious.

Mark? Yep. No, that's super helpful. Thanks. I'm curious with the most recent announcement here in the industry with Dow and X-Energy, which I thought was kind of interesting, how do prospects like that look for new scale? Are there industrial applications that you're discussing with customers that could be – I'm curious about these kind of questions. I have a question. I think it's a good question. It was about the.....................................

With the most recent announcement here in the industry with it.

Dow and ex energy.

Which I thought was kind of interesting.

How do prospects like that look for new scale.

Are there industrial applications that you're discussing with customers.

That could be.

Speaker 6: something that happens this year in terms of an announcement or are those sort of further afield for you.

Something that happens this year in terms of an announcement or.

Are those are there.

Further afield.

something that happens this year in terms of an announcement or are those sort of further afield for you.

Speaker 4: Yeah, Mark, this is John . First, I applaud X Energy in that we don't want to be a monopoly. We don't want to see other technologies advance. Dallas is a – in fact, I was at the –

Yes, Mark just John .

I applaud ex synergy and that we don't want to be a monopoly, we don't want to see other technologies advance.

Mark, this is John . First, I applaud X-Energy in that we don't want to be a monopoly. We don't want to see other technologies advance. Dallas is a – in fact, I was at the –

Now as a.

In fact I was at the.

The conference in Houston.

During the discussion with the Dallas CEO commented that they were looking at <unk> potentially for process heat.

Speaker 4: during a discussion with the Dow CEO commented that they were looking at SMR is potentially for process heat.

the conference in Houston and during a discussion with the Dow CEO commented that they were looking at SMRs potentially for process heat, which we believe is a suite for us as well. I mean, as you know, NuScale doesn't have to be tied to a grid for safety purposes as proven to the NRC. So at the end of the day, having companies like Dow and others who are looking at process heat, perhaps hydrogen or ammonia production,

Speaker 4: and which we believe is a sweet for us as well. I mean, as you know.

And which we believe is a suite for us as well.

As you know he was scale doesn't have to be tied to a grid for safety purposes has proven to the NRC. So at the end of the day, having companies like Dow and others, who are looking at processes for.

Speaker 4: New scale doesn't have to be tied to a grid for safety purposes as proven to the NRC.

Speaker 4: So at the end of the day, having companies like Dow and others who are looking at processed heat, perhaps hydrogen or ammonia production.

Perhaps hydrogen or ammonia production, we can be right next to the end users. So companies like Dow are I think are pretty forward thinking and looking at and they've been doing this for quite some time it wasn't just blues so.

Speaker 4: we can be right next to the end user. So companies like Dow I think are pretty forward thinking and looking and they've been doing this for quite some time. It wasn't just, that was the blues.

we can be right next to the end user. So companies like Dow I think are pretty forward thinking and looking and they've been doing this for quite some time. It wasn't just thousands of blues. So the answer is absolutely. We have abilities to have others similar to Dow utilize our technology.

The answer is absolutely we have abilities to have other similar to dal utilize our technology.

Speaker 4: The answer is absolutely. We have abilities to have others similar to Dow utilize our technology.

Okay, Great maybe just one more on the.

Speaker 6: One more on the U-amps and carbon-free power project.

On the you amps and carbon free power project.

Okay great.

Just one more on the U-amps and carbon-free power project.

Speaker 6: I think there's some cost estimates that Flora's working through there. Can you maybe talk to the next milestones associated with that and how investors should think about that?

I think theres some cost estimates at floors working through there.

Can you maybe talk to the next milestones associated with that and how investors should think about.

I think there's some cost estimates that Flora's working through there. Can you maybe talk to the next milestones associated with that and how investors should think about...

Speaker 6: I've gotten the question a few times like what's the possibility of costs coming in higher than expected and and kind of risking the project viability. I'm just curious for what you guys can share on that.

I've gotten that question a few times like what's the possibility of costs coming in higher than expected and kind of risking the project viability I'm just curious for what you guys can share on that.

I've gotten a question a few times like what's the possibility of costs coming in higher than expected and and kind of risking the project viability. I'm just curious for what you guys can share on that.

Speaker 4: Yeah, Mark, John again. I was actually at a project review a couple weeks ago, which was with

Yeah, Mark John again, I was actually at a project review a couple of weeks ago, which was with.

Mark John again. I was actually at a project review a couple weeks ago which was with

Speaker 4: The UAMPs management team from CFPP, Flora attended. Also we had a Japanese manufacturer. We went through the numbers. You know, as anything, there is some escalation in commodities, which is across industry. However, you know, having...

You amps.

Management team from CFPB, Florida attended also we had a Japanese manufacturer we went through the numbers.

The UAMPs management team from CFPP, Flora attended. Also we had a Japanese manufacturer. We went through the numbers. As anything, there is some escalation in commodities, which is across industry. However, having suppliers such as the Doosan's in the same sense of the world is also...

As anything there is some escalation in commodities, which is across the industry.

However, you know having suppliers such as the do songs and a Samsung or the World is also.

Speaker 4: such as the Doosan's in the Samsens of the world is also

Speaker 4: minority shareholders, they're willing to really sharpen a pencil. So they all, our supply chain anticipates, you know, there will be some increases, but at the end of the day,

Minority shareholders are willing to really sharpen the pencil so they all our supply chain anticipates no there will be some increases but at the end of the day.

minority shareholders, they're willing to really sharpen the pencils. So they all, our supply chain anticipates there will be some increases. But at the end of the day, we've all got to ensure that this project's successful. So the meeting went well. There are a lot of pluses in terms of what was announced and things that are getting done on that project. So I feel, again, as I said, with gas prices where they are, around $8 million per BTU.

Speaker 4: you know, we've all got to ensure that this project's successful. So the meeting went well. There are a lot of pluses in terms of what was announced and things that are getting done on that project. So I feel, again, as I said, you know, if with gas prices where they are, you know, around $8 million per BTU, I feel pretty comfortable we're going to come at a target price that's going to be well received by the community.

No. We've all got to ensure that this project successful. So the meeting went well there are a lot of pluses in terms of what was announced and things that are getting done on that project. So I feel again as I said, you know if with gas prices, where they are you know around $8 million per Btu I.

I feel pretty comfortable we're going to come in and it's hard to price that's going to be well received by the customer.

I feel pretty comfortable we're going to come at a target price that's going to be well received by the customer.

Speaker 6: And what's the timing on sort of the next update on that? Is that something we should be looking to floor for an announcement or or would that come from you guys?

And what's the timing on sort of the next update on that is that something we should be looking to floor for an announcement or or would that come from you guys.

And what's the timing on sort of the next update on that? Is that something we should be looking to floor for an announcement or would that come from you guys?

No that would come from Florida or in the process of finalizing their class III as you know there's five classifications of estimating so there's there'll be working towards their class III up to class one so I suspect here within the next months or so there should be an announcement coming out from the customer.

Speaker 4: Now that would come from FLOR. They're in the process of finalizing their class three. As you know, there's five classifications of estimating. So they'll be working towards their class two up to class one. So I suspect here within the next month or so, there should be an announcement coming out from the customer.

Now that would come from FLOR. They're in the process of finalizing their class III. As you know, there's five classifications of estimating, so they'll be working towards their class II up to class I. So I suspect here within the next month or so there should be an announcement coming out from the customer.sh

Super Thanks, so much I'll turn it back.

Speaker 2: As a reminder, everyone, that is star one to ask a question. We'll take our next question from Char Perouza with Guggenheim Partners.

As a reminder, everyone that is star one to ask a question.

Super. Thanks so much. I'll turn it back.

Our next question from Shar <unk> with Guggenheim partners.

As a reminder, everyone that is star one to ask a question. We'll take our next question from Char Perouza with Guggenheim Partners.

Hey, guys How're you doing.

Okay.

Thank you.

Hey guys, how you doing?

Can you guys just sorry, just another topical item just around the inflation reduction.

Speaker 7: Hey, guys, just another topical item just around the inflation reduction act. Just curious, is there any sort of benefits that we should be thinking about to SMRs and new scale in general? Or do you guys kind of view it for your internal planning purposes as neutral? Just trying to get a bit of a sense at the potential implications there. That's a great question. As you can well imagine, we're all around this as well as others. And Chris probably better serve for you to answer. You've been closer to it than any.

Thank you.

Just curious is there any sort of benefits that we should be thinking about to ask tomorrow is a new scale in general or do you guys kind of view it for your internal planning purposes as neutral just kind of just trying to get a bit of a sense at the potential implications. There. That's a great question, yeah. As you can well imagine we're all around this as well as others.

Just another topical item just around the inflation reduction act. Just curious, is there any sort of benefits that we should be thinking about to SMRs and new scale in general or do you guys kind of view it for your internal planning purposes as neutral? Just trying to get a bit of a sense at the potential implications there. That's a great question. As you can well imagine, we're all around this as well as others and Chris probably better serve for you to answer, you've been closer to it than anybody.

And Chris probably better served for you to answer you've been closer to it than anybody.

Speaker 5: Yeah, so, um, uh, part of what I do is just include, uh, chief financial officer role as I manage our government relations and there's been a lot of discussion about the inflation reduction act. Um, one, it was a big surprise to everybody. Um, two, it's taken a while for people to get their heads around it.

Yes.

So.

Alright.

Yeah, so, what I do is just include Chief Financial Officer role as I manage our government relations and… St You back

Group, Chief Financial Officer role as I manage our government relations.

There's been a lot of discussion about the inflation reduction that.

One was a big surprise to everybody.

There's been a lot of discussion about the inflation reduction act. One, it was a big surprise to everybody. Two, it's taken a while for people to get their heads around it.

It's taken a while for people to get their heads around it.

Speaker 5: Three, our general assessment is that it does provide benefits for customers who would invest in clean energy technology above and beyond what they currently enjoy. We think that our customers would indeed benefit from that.

We are.

Our general assessment is that it does provide benefits for.

Customers, who would invest in clean energy technology.

Three, our general assessment is that it does provide benefits for customers who would invest in clean energy technology above and beyond what they currently enjoy. We think that our customers would indeed benefit from that.

Above and beyond what they currently enjoy and we think that our customers would indeed benefit from that.

Speaker 5: But we have asked our customers, you know, what it specifically means to them because there are a number of

But we have asked our customers what specifically means to them because there are a number of.

Speaker 5: requirements, other carve-outs and factors that come into play. So we're kind of waiting to hear, one, see it pass on Friday, we hope. And second, to hear from our customers how that factors into them and how we can make sure that we get the greatest benefit out of that act for them in terms of how we structure our contracts and deliver the project.

But we have asked our customers what it specifically means to them because there are a number of

No requirement.

The carve outs and factors that come into play so we're kind of waiting to hear.

requirements, other carve-outs and factors that come into play. So we're kind of waiting to hear, one, see it pass on Friday, we hope. And second, to hear from our customers how that factors into them and how we can make sure that we get the greatest benefit that acts for them in terms of how we structure our contracts and deliver the project.

See you pass on Friday, we hope.

Second to hear from our customers how that fab.

Factors into them and how we can make sure that we get the greatest benefit.

That act for them in terms of how we structure our contracts and deliver the project.

Speaker 5: But generally speaking, it certainly, you think, should be a positive if passed.

But generally speaking.

It certainly.

It should be a positive in the past.

But you know generally speaking It certainly you think should be a positive if passed.

Refer to our customers to help us interpret the benefit there.

Speaker 5: we would defer to our customers to help us interpret the benefit there. But if it does have that benefit, we would expect to see that flow into our really customer action as we go forward in the year as they evaluate and rethink about what they may do investment wise and clean energy.

But if it does have that benefit we would expect to see that flow into our.

We would defer to our customers to help us interpret the benefit there, but if it does have that benefit, we would expect to see that flow into our really customer action as we go forward in the year as they evaluate and rethink about what they may do investment-wise and clean energy. Thank you, Mr. Chairman, for having, indeed, this around doable, for the last two weeks.

Really customer action as we go forward.

And the year as they evaluate and rethink about what they may do investment wise in clean energy.

Got it so no concerns I guess internally around sort of the fact that it's.

Speaker 5: Got it. So no concerns, I guess, internally around sort of the fact that it's, you know, I guess trying to incent other technologies as well under the legislation, assuming it passed. Yeah, we don't see that, Mark.

Got it, so no concerns, I guess, internally around sort of the fact that it's, you know, I guess trying to incent other technologies as well under the legislation, assuming it passed. Let's see that mark.

I guess trying to incent other technologies as well under that legislation, assuming we don't see that mark.

Speaker 5: Yeah, and in particular, Mark, there's one section that goes in specifically, it was a concern of Senator Manchin's was to make sure that it was a technology neutral. And so for technologies going into construction after 2024, I think it is, it's really measured based upon what they output in terms of carbon dioxide. And, you know, we don't even met in the production of megawatt hours, carbon dioxide, so we're in this equal footing with your wind and solar.

Yeah, and then particular markers one section that goes and specifically it was a concern of senator managing whereas that make sure that it was a technology neutral.

Yeah, and in particular, Mark, there's one section that goes in specifically it was a concern of Senator Manchin's was to make sure that it was a technology neutral. And so for technologies going into construction after 2024, I think it is, it's really measured based upon what they output in terms of carbon dioxide and, you know, and we don't even met in the production of megawatt hours carbon dioxide. So we're in a sequel footing with your wind and solar.

So for technology is going into construction and after 2024 I think it is it's really measured based upon what the output in terms of carbon dioxide.

And we don't eat met the production of megawatt hours carbon dioxide, so were in equal footing with your wind and solar.

Got it okay. I appreciate that and then I think you sort of touched a little bit around some of the pressure points from an LCR perspective.

Speaker 5: Got it. Okay. Appreciate that. And then I think you sort of touched a little bit around some of the pressure points from an LCOE perspective on UAMPs. But just maybe on the business itself, are you seeing any areas of maybe above planned drags on cash at this point?

Got it. Okay, appreciate that. And then I think you sort of touched a little bit around some of the pressure points from an LCOE perspective on UAMPs. But just maybe on the business itself, are you seeing any areas of maybe above plan drags on cash at this point?

<unk>, our new amps.

But just maybe on the business itself are you seeing any areas.

[noise] above planned drags on cash at this point.

Okay.

So you want me to take that one John .

So, you want me to take that one, John ? You can start, please.

Yes.

Speaker 5: Yeah, so, you know, and reaffirming our outlook for 2022 that includes.

So and reaffirming our outlook for 2022 that includes.

Speaker 5: what we saw for use of cash and we monitor very tightly where our spend is.

What we saw for use of cash and we monitored very tightly where our spend is.

Yeah, so you know, in reaffirming our outlook for 2022, that includes what we saw for use of cash and you know, we monitor very tightly where our spend is. We haven't yet seen any negative impact in terms of an increased drag on cash for 2022. You know, that said, we'll be continuing to monitor it. But most of our, you know, spending is in costs for labor for employees and staff and then for labor that's provided by

Speaker 5: we haven't yet seen any negative impact in terms of an increased drag on cash for 2022. You know, that said, we'll be continuing to monitor it, but most of our spending is in cost.

We haven't yet seen any negative impact in terms of the increased drag on cash for 2022.

That said, we will be continuing to monitor it but most of our spending is on costs.

Speaker 5: for labor for employees and staff and then for labor that's provided by our contractors such as floor and sergeant at Lundy and You know as you see, you know, perhaps some labor pressures flowing through there you may see some of that come through but as of now We're still you know tracking to what we projected at the end of last year in terms of cash usage for what we need to get done

For labor for employees and staff and then tour labor that's provided by contractors.

Contractors, such as floor Sargent <unk> lundy.

And as we see perhaps some labor pressures flowing through there you may see some of that come through but as of now.

our contractors such as floor and sergeant at Lundy. And as we see, perhaps some labor pressures flowing through there, you may see some of that come through, but as of now, we're still tracking to what we projected at the end of last year in terms of cash usage for what we need to get done.

We're still tracking to what we projected at the end of last year in terms of.

Cash usage for what we need to get done.

Speaker 4: Yeah, Mark, as you know, cash is king for us, so being a good steward of that cash is critically important. All our vendors who submit their invoices to us go through a rigorous process to prove competitiveness so we feel pretty comfortable right now.

Yes Barton.

Cash is king for us so being good stewards of that cash is critically important in all of our vendors who.

Mark, as you know, cash is king for us, so being a good steward of that cash is critically important. All our vendors who submit their invoices to us go through a rigorous process to prove competitiveness. We feel pretty comfortable right now. Because we're doing that today, and we're doing that now.

Smith of invoices to us go through a rigorous process to approve competitiveness. So we.

We feel pretty comfortable right now.

Speaker 4: Okay, got it. And then just lastly the process obviously with Romania appears to be I guess one of the more advanced next to you amps You've got the you Mo you you're building simulator. I guess just what's next in the process What should we be looking for out timing? You?

Okay got it and then just lastly, the process, obviously with the Romania appears to be I guess, one of the more advanced next day you Amps you got the Mou you're building simulator I guess just what's next in the process what should we be looking for out timing.

Okay, got it. And then just lastly the process obviously with the Romania appears to be I guess one of the more advanced next to You amps and you've got the you mo you you're building simulator. I guess just what's next in the process What should we be looking for out timing? Thank you

Yeah. This is John Hopkins I was in Romania about three weeks ago and met with their Prime Minister and the energy Minister.

Speaker 4: Yeah, this is John Hopkins. I was in Romania about three weeks ago. I met with their Prime Minister and their Energy Minister.

Yeah, this is John Hopkins. I was in Romania about three weeks ago. I met with their prime minister and their energy minister. And they, again, indicated the importance of this project to the country of Romania for, you know, predominantly energy security as well as climate disruption. But the next process is the schedule towards the end of August . The CEO of Neutro Electrica is coming with his team to Corvallis to we're going to sit down. And then from there, they'll go out to the project.

Speaker 4: again, indicated the importance of this project to the country of Romania for, you know, predominantly energy security as well as climate disruption. But the next process is the...

Again indicated the importance of this project to the country of Romania for you know predominantly energy security as well as his climate disruption, but the next processes the.

Speaker 4: scheduled towards the end of August , the CEO of Neutral Electrica is coming with his team to Corvallis to sit down and from there they'll go out to the project.

Scheduled towards the end of August the CEO of nuclear electric.

Is coming with his team to Corvallis, two we're going to sit down.

From there they will go out to the project to and sit down with us to go through the project sequencing and scheduling.

Speaker 4: to sit down with us to go through the project sequencing and scheduling. They're excited to move this as soon as they can. Another good plus in this is we know their regulators are in communications with the Nuclear Regulatory Commission, having gone through the rigor of that NRC. They don't want to have to reinvent the wheel. They will, in fact, put their solvent stamp as some normal mania that they're more than willing to utilize data from the NRC, which is very important.

They're excited to move this as soon as they can. Another good plus in this is we know their regulators are in communications with the Nuclear Regulatory Commission, having gone through the rigor of that NRC. They don't want to have to reinvent the wheel. They will, in fact, put their solvent stamp as some normal mania that they're more than willing to utilize data from the NRC, which is very important. For more information, visit www.nrc.gov.

They're excited to move this as soon as they can another good question. This is we know their regulators are in communications with the nuclear regulatory Commission, having gone through the rigor of that NRC. They don't want to have to reinvent the wheel. They will in fact, but theyre solving stamp of cement, Romania that theyre more than willing to utilize data from the <unk>.

C, which is very important.

Speaker 8: Perfect, I appreciate it guys, by the way, it's Charron for Mark. Thank you so much, appreciate it. Thank you.

Perfect I appreciate it guys by the way it's shar in for Mark. Thanks, So much I appreciate it.

Perfect. I appreciate it guys. By the way, it's Charin for Mark. Thank you so much. Appreciate it.

Thank you Sir.

Okay.

Speaker 2: As a reminder, everyone that is star one to ask a question will take a follow up question from Mark Pionki with Cowan.

As a reminder, everyone that is star one to ask a question, we'll take a follow up question from Marc Bianchi with Cowen.

Thank you, sir.

As a reminder everyone that is star one to ask a question. We'll take a follow-up

Hey, thanks.

Maybe a couple of other points that were updated in this quarter. So you have the <unk>.

Speaker 6: Maybe a couple other points that were updated in this quarter. So you have the

Hey thanks.

Maybe a couple other points that were updated in this quarter. So you have the the Lightbridge announcement there. How does that compare to some of these other fuels that we've heard like Triso that's out there? Is how is it different? What is it looking to do that might be similar or different? And then is the thought that if successful you could drop this fuel into your existing reactor design? Or would there need to be

Speaker 6: the Lightbridge announcement there, how does that compare to some of these other fuels that we've heard, like TRISO that's out there? How is it different? What is it looking to do that might be similar or different? And then is the thought that if successful, you could drop this fuel into your existing reactor design, or would there need to be a lot of change to how the reactors put together?

White bridge.

Announcement there.

How does that compare to some of these other fuels that we've heard like try so.

That's out there is how is it different what is it looking to do that might be similar or different and then.

Is the thought that if successful you could drop this fuel into your existing reactor design or would there need to be you know a lot.

A lot of change to how the reactors put together.

Speaker 4: You know, I've asked Dr. Jose Reyes that same question, and we don't need excellent, tolerant fuels because of our safety design basis of this design. It's not required. However, we are working with him. In maybe future state in years to come, there could be an opportunity to use excellent, tolerant fuels, but nothing near term. Chris, do you have anything to add?

I've asked Dr. Jose Reyes that same question and you know, we don't need an accident tolerant fuels because of our safety design basis of this design is not required. However, we are working with him and maybe future state in years to come there could be an opportunity to use excellent tolerant fuels, so but nothing near term.

you know, a lot of change to how the reactors put together.

You know, I've asked Dr. Jose Reyes that same question, and we don't need excellent, tolerant fuels because of our safety design basis of this design. It's not required. However, we are working with him. In maybe future state in years to come, there could be an opportunity to use excellent, tolerant fuels, but nothing near term. Chris, do you have anything to add?

Do you have anything to add.

It doesn't really represent an opportunity for us to improve upon potentially the performance of our design.

Speaker 5: It does really represent an opportunity for us to improve upon potentially the performance of our design and as well as providing added benefit in terms of the accident tolerant aspect which does figure into some way in the EU taxonomy. So it could be helpful in both those areas but it's not required for what we're currently doing and we see it as being truly a benefit if it comes out the way that we think it would.

It does really represent an opportunity for us to improve upon potentially the performance of our design and as well as providing added benefit in terms of the accident-tolerant aspect which does figure into some way in the EU taxonomy. So it could be helpful in both those areas but it's not required for what we're currently doing and, you know, we see it as being truly a benefit if it comes out the way that we think it would.

And as well as providing added benefit in terms of the accident tolerant aspect, which.

Does figure into some way in the.

EU taxonomy.

So it could be helpful. In both those areas, but it's not required for what we're currently doing.

We see it as being truly a benefit if it comes out the way that we think it would.

Got you okay.

Speaker 6: Gotcha. Okay. And then the other one was just on the Paragon agreement. This, my understanding, was not part of the business plan that you had put together and presented, so it would be incremental. One, I guess, correct me if that understanding is wrong. And then the next part of the question is, what is the addressable market there for you? How big of a revenue and cash flow contributor could this become?

And then the other one was just on the on the Paragon agreement.

Gotcha. Okay. And then the other one was just on the Paragon agreement.

This my understanding was not part of the business plan that you would have put together and presented so it would be incremental.

this

my understanding was not part of the business plan that you had put together and presented, so it would be incremental. One, I guess, correct me if that understanding is wrong, and then the next part of the question is what is the addressable market there for you? How big of a revenue and cash flow contributor could this become?

One I guess correct me if that understanding is wrong and then the next part of the question is.

What is the addressable market there for you how big of a revenue and cash flow contributor could this become.

Speaker 4: Yeah, Mark, this is John . You know, we worked with Rock Creek for many years that was acquired by Paragon in development of the HIPPS program, and we've entered into an agreement, a revenue sharing agreement with Paragon. However, I don't know necessarily that in terms of

Yeah. Mark. This is John you know, we worked with Rock Creek for many years that was acquired by Paragon and development of the <unk> program and we've entered into an agreement. It's a revenue sharing agreement with Paragon. However, I don't know necessarily that in terms of you know near term that revenues being derived is gonna be.

Yeah, Mark, this is John . You know, we worked with Rock Creek for many years that was acquired by Paragon in development of the PIPSC program, and we've entered into an agreement, a revenue sharing agreement with Paragon. However, I don't know necessarily that in terms of, you know, near term that revenue's being derived is gonna be really material, but it's just, you know, one that is a pretty innovative process, and...

Speaker 4: you know, near term that revenue is being derived is going to be really material. But it's just, you know, one that it's a pretty innovative process. And having gone through it, we talked with Paragon and we felt that it should be opened up to the marketplace and not just limited to new skill level.

Really material, but it's it's just you know one that it's a pretty innovative process and and having gone through it we talked with Paragon and we felt that it should be opened up to the marketplace and not just limited to new scale alone.

And having gone through it, we talked with Farraghan, we felt that it should be opened up to the marketplace and not just limited to new scale alone. Charims of the Industrial Market, Mark, you know, really could be used for retrofit of existing reactors that they wanted to replace their analog systems. And any new reactor design coming through if they wanted to take advantage of it, could use it. And it has the benefit of being approved by the NRC in terms of, as a safety platform. So that has...

In terms of the addressable market Mark.

Speaker 5: In terms of the addressable market, Mark, it really could be used to retrofit existing reactors if they wanted to replace their analog systems. Any new reactor design coming through, if they wanted to take advantage of it, could use it. It has the benefit of being approved by the NRC in terms of as a safety platform. It has the benefit of being approved by the NRC in terms of as a safety platform.

It really could be used for retrofit of existing reactors that they wanted to replace their analogue systems and any new reactor design coming through if they wanted to take advantage of it could you use it and it has a <unk>.

Benefit of being approved by the NRC in terms of safety.

Safety platform. So it has.

Speaker 5: great attraction to people. So really, you know, whatever we're not able to, even though John doesn't want to be monopolist, whatever we don't monopolize in the market out there, potentially could be these systems providing the safety function for those other designs that do get in the market.

Great attraction to people. So really you know whatever we're not able to even though John doesn't wanna be monopolist wherever we don't monopolize in the market out there potentially could be the systems providing.

great attraction to people. So really, you know, whatever we're not able to, even though John doesn't want to be monopolist, whatever we don't monopolize in the market out there potentially could be these systems providing the safety function for those other designs that do get in the market.

Providing the safety function for those other designs that are due.

Get into the market.

Speaker 6: Yep. And is it something that would be sold as a service more likely than a than sort of a one and done equipment or sort of application sale?

And it's something that would be sold as a service more likely than a than sort of a one and done.

Yep. And is it something that would be sold as a service more likely than a than sort of a one-and-done...

Equipment or or sort of application sale.

Speaker 5: Yeah, it's tied to revenues that they gain off the sale of the, what they embed in the overall product. Okay, super. Thanks so much guys. I'll turn it back.

Yeah, it's tied to revenues that they gain on the sale of the.

equipment or sort of application sale.

What would be embedded in the overall product.

Yeah, it's the types of revenues that they gain off the sale of what they invent in the overall product.

Okay Super Thanks, So much guys I'll turn it back.

Okay.

Okay, super. Thanks so much guys. I'll turn it back.

Just to remind everyone that is star one to ask a question.

This reminds everyone that is star one to ask a question.

Alright, and at this time there are no further questions I'd now like to turn the call back over to John Hopkins for any additional or closing remarks well.

Speaker 2: All right, and at this time, there are no further questions. I'd now like to turn the call back over to John Hopkins for any additional or closing remarks.

All right, and at this time there are no further questions. I'd now like to turn the call back over to John Hopkins for any additional or closing remarks.

Speaker 4: Well thank you operator and thanks to all of you for participating in our call today. Before we conclude, again I'll turn it back over to Diane who will discuss upcoming investor events at which we will be present and we're looking forward to our next earnings call. Thank you very much.

Well, thank you operator, and thanks to all for your participating on our call today before we conclude again I'll turn it back over to Diane who will discuss upcoming investor events.

Well, thank you, operator, and thanks to all of you for participating in our call today. Before we conclude, again, I'll turn it back over to Diane, who will discuss upcoming investor events at which we will be present. And we're looking forward to our next earnings call. Thank you very much.

and thanks to all of you who participated in our call today. Before we conclude, again, I'll turn it back over to Diane, who will discuss upcoming investor events at which we will be present. And we're looking forward to our next earnings call. Thank you very much. Diane?

It will be present, and we're looking forward to our next earnings.

Earnings call. Thank you very much Dan.

Dan.

Speaker 3: Thanks, Jen. We currently have three investor conference appearances scheduled for August and September . Please note attendance at these conferences is by invitation only for clients of each respective firm. So interested investors, please contact your respective sales representative to register and schedule one-on-one meetings with us.

We currently have three Investor conference appearances scheduled for August and September . Please note attendance at these conferences is by invitation only for clients of each respective firms interested investors. Please contact your respective sales representative to register and schedule one on one meetings with us.

We currently have three investor conference appearances scheduled for August and September . Please note attendance at these conferences is by invitation only for clients of each respective firm. So interested investors, please contact your respective sales representative to register and schedule one-on-one meetings with us. Tomorrow August 11th we'll participate in the Raymond James Aspen Energy Summit in Aspen, Colorado. In mid-September we plan to present at the UBS Global Energy Transition Conference in London.

August 11th will participate in the Raymond James.

<unk> summit in Aspen, Colorado.

In September we plan to present at the UBS Global Energy transition conference in London in September 14th.

Im asking virtual energy and utilities access day hosted by the New York Stock Exchange.

On September 14th, we'll present at the Virtual Energy and Utilities Access Day hosted by the New York Stock Exchange.

With that we'll conclude today's call I am actually we will make a press announcement I'm going to share more specifics around our planned Investor conference appearances with that we'll conclude today's call. Thank you for your participation you may now disconnect.

With that, we will conclude today's call. Oh, actually, we will make a press announcement soon to share more specifics around our planned investor conference appearances. With that, we will conclude today's call. Thank you for your participation. You may now disconnect.

Okay.

Thank you and that does conclude todays presentation. Thank you for your participation you may now disconnect.

Thank you and that does conclude today's presentation. Thank you for your participation. You may now disconnect.

Okay.

[music].

Okay.

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