Q3 2023 NuScale Power Corp Earnings Call
Good afternoon, and welcome to new skills third quarter 2023 earnings results Conference call today's call is being recorded.
All participants are in a listen only mode.
After management's prepared remarks, there'll be a question and answer session.
If you would like to ask a question. During this time simply press star followed by the number one on your telephone keypad.
If you would like to withdraw your question. Please press star one again.
A replay of today's conference call will be available and accessible on new skills website at IR Dot new scale power Dot com on the.
The web replay will be available for 30 days following the earnings call.
At this time for opening remarks, I would like to turn the call over to Scott Kozak Director of Investor Relations. Please go ahead Mr. Kozak.
Thanks, Operator, welcome to discuss third quarter 2023 earnings results conference call with US today are John Hopkins, President and Chief Executive Officer, and Ramsey Hamady, New skills, Chief Financial Officer.
On today's call new scale will provide an update on our business, including our continued progress toward commercializing new scale similar technology, both with current and new customers. Following we will provide an update on the decision to terminate the carbon free power project and conclude the call by discussing financial results and outlook.
We will then open up the phone lines for questions.
Afternoon, we posted a set of supplemental slides on our Investor Relations website, that's reflected in the safe Harbor on slide two the information set forth in the presentation to discuss during the course of our remarks and the subsequent Q&A session includes forward looking statements.
Which reflect our current views of existing trends and are subject to a variety of risks and uncertainties.
You can find a discussion of our risk factors, which could potentially contribute to such differences in our SEC filings on form S. One and Form 10-Q.
I'll now turn the call over to John Hopkins, Liam Kelly, President and Chief Executive Officer John.
Thank you Scott and good afternoon, everyone.
Our industry, leading position in the S Tomorrow space continues to grow.
Our pipeline is stronger than ever and we are nearing the realization of commitment to deliver reliable clean energy at scale.
We're looking forward to speaking with you about our announcement with standard power. It will also provide an update on the decision to terminate work on the CFPB.
A decade long partnership, which despite commercial challenges achieved numerous successes that I will discuss later.
Now to begin as Youll see on slide three we have invested more than one 8 billion to build sustainable competitive advantages and technology.
Tori approvals supply chain and manufacturing readiness.
All of which brings tremendous credibility to our business development pipeline.
Ooh scales advanced stage of development has de risked nuclear energy for our customers well.
While establishing a first mover leadership position that supports our near term commercialization efforts.
Next on slide four I'll provide an overview of our strategy.
We are advancing our technology and supply chain readiness, new comprehensive manufacturing trials and other measures.
New scale is focused on deploying our S tomorrow modules and are poised to expand into new markets applications and capabilities.
Over the last year, we have taken important steps to commercialize our <unk> technology.
A key step with forming a strategic partnership with <unk> energy.
An independent energy transition platform backed by a highly capable team with significant energy and infrastructure experience.
Importantly, <unk> supports our vision for wide scale deployment of new <unk> through this partnership enter wind will develop and manage our own and operate a portfolio of energy plants powered by new scale <unk> technology approved by the U S nuclear regulatory commission or NRC.
As detailed on slide five this relationship enables a business model, which is transformational for new scale and it is important to the success of our commercialization efforts.
Let me take a moment to explain the structure of our industry and the profound impact of this relationship.
Utilities Industrials technology companies U S States and the international sovereigns.
Looking to support their 2015 net zero commitments.
By purchasing power or building non greenhouse gas emitting power plants.
New scale does not sell power and we're not in the business of building power plants.
Rather we are in an original equipment designer of a U S NRC approved technology.
We oversee the manufacturer of the equipment that we design and provide that to our customer already planned constructor.
Enter one serves as a project developer and brings together the total package consisting of our technology with their construction financing operation and ownership.
This is what many of our customers want it.
And the level of interest in our technology has never been higher.
As shown on slide six.
<unk> six we were pleased to announce an early milestone in its business development relationships.
Standard power a provider of infrastructure as a service to advanced data processing companies in partnership with Andrew wide announced its plans to develop two new scale Voyager 12 power plants that will together produced nearly two gigawatts of clean carbon free energy.
The facilities relocated in Ohio, and Pennsylvania.
These projects will power nearby Datacenters and represent a significant economic boost for their respective communities.
We're delighted with this partnership as it will serve as a model to be considered by other data center operators as our customers increasingly demand at these facilities rely on reliable and resilient clean energy.
New scale scope of supply for standard power project will be to provide 24 modules 12 per plant and other nuclear equipment.
Collectively produced nearly two gigawatts of clean energy standards powers Datacenters. These.
These projects will be located alongside existing power generation infrastructure with access to a skilled workforce.
Accessible to navigable waterways and other site features favorable to realize reduced construction costs.
The economics of the Voya 12 generating facility are improved in comparison to the voyage of six facility and the economies of scale perspective.
And while one of these early task will be to form a cost estimate for these projects. We are confident economics will be cost competitive compared with other baseload statutes energy auctions.
I want to pause here and set the record straight on reset and irresponsible speculation.
Many on our team myself included as well as enter one I've worked in power and infrastructure development for decades.
We've spoken with hundreds of potential customers in each case, we spend time and resources vetting the individuals and organizations, we speak with including standard power and our stakeholders.
We are delighted to have been selected as standard Power's technology of choice.
It is important for the investment community to understand that these projects are complex.
While many partners and significant capital investment.
No customer that you amps not Roe power.
Our standard power no major utility industrial or data center player.
The customer walks in the door with a blank check and orders a nuclear power plant.
That's just not the way. This industry operates these are multi year and multi billion dollar projects on which regional economies Japan.
Discussions amongst serious responsible parties are detailed.
Deliberated and staged in their progression.
Well. This is the first collaboration resulted from a commercial partnership with <unk>, we expect to replicate this delivery commercial model going forward.
We are incredibly proud to developers and customers are selecting new scale modules as their technology of choice to power their projects and meet their carbon free energy objectives.
There is a growing demand for safe reliable 24, seven and carbon free Baseload energy.
This comprehensive and bespoke financing and development solution can more effectively and more quickly address the full suite of customer needs.
Accelerating the realization of the tremendous opportunities in our pipeline.
With regard to ROE power, we are advancing into the next stage of development.
<unk> phase one included more than 23 activities and a contract valued at almost $28 million.
This laid a solid foundation for the next contract phase.
As a result of feed phase one work, we received approval from the Romanian regulator from the licensing basis documents and support of the ROE Power project, a key milestone that will facilitate the implementation of the licensing process for all stages of new scale project in Romania.
In addition, the global public private funding commitments announced in May including planned commitments from new scale strategic partners are expected to support procurement of long lead items.
<unk> Friday in engineering design work in the near future.
As proposed phase II feed work will include site characterization and regulatory analysis and the development of site specific schedule and budget estimates for project execution.
Feed phase II and release of long lead materials position that project for final notice to proceed with plant deployment.
Looking at the progress of new skills business development more broadly at slide seven the breadth and scale of our domestic and international pipeline is substantial.
Potential customers are coming to new scale, because <unk> technology remains the only one to have received design approval and certification from the U S Nuclear regulatory Commission.
We are ready for near term deployment and currently produce a new scale power modules, which provide customers with unmatched flexibility for a variety of applications, our strategic partnership with <unk> and bridges to development cap and many customers who wanted to integrate <unk> and their energy portfolio without develop.
<unk> power plant projects now have the means to do so.
No one in the market offers today.
And our nearest competitors are many years behind us.
And while we're certainly talking with traditional utilities, our pipeline extends far beyond that it's data centers, it's coal plant repurposing and ammonia production and its hydrogen production steel producers and industrial heat.
It's the communities across America network clean energy and they want jobs.
It's American allies around the world seek the security of reliable Green energy.
The interest we have received is considerable and we are laser focused on converting those opportunities do cash generating contracts.
In addition to advancing dialogue with U S perspective U S customers. We've also been talking to potential customers globally, including in France, Turkey, Morocco, Eastern Europe, and the far East for example.
In October new scale with <unk> to participate in next stage of evaluation by the UK government a fast track measure could result in a government contract within the next 10 months as part of a strategy deliver operational SM ours by the mid 2000 Thirty's.
We're also continuing to establish new scale energy exploration incentives or <unk> centers, both in the U S and abroad. These.
These control room stimulators serve as a workforce training and development tools and.
And provided an important opportunity to demonstrate a socialized the advanced safety and reliability of new scale depth of our technology.
Currently we have established our planned two centers in the U S, Romania and Korea.
Moving on to slide eight.
I want to highlight a few additional updates in the context of our key 2023 milestones Andrew.
In July we announced a new scale standard design approval application was accepted for review by the U S. NRC.
The NRC provided us with a schedule for an anticipated 24 month review process for obtaining approval for a power upgrade to a 77 megawatt new scale power module, which will support the capacity needs of a wider range of customers. The design reflected in this application includes the same random.
<unk> safety case and features approved by the NRC in 2020.
Which should expedite the review process.
With regard to manufacturing as you recall, we placed their first long lead material orders with our partner <unk> ability in March.
<unk> continues to produce forgings and materials associated with manufacturing the first do scale power modules.
We are positioned to begin manufacturing our first modules later this year.
When <unk> will be assembled and machine to their final dimensions.
We are not aware of another north American SMB vendor that has progressed through the manufacturing phase.
And we are excited to continue leading the way for the industry.
We are also tracking to our commercialization program advancement expectations, completing four key milestones under our U S Department of energy cost share award, including a plant protection system design and completion of the intermediate decide for a reactor vessel internals.
We continue to consistently deliver on our milestones in this area demonstrating our team's ability to effectively execute the progress made here will benefit all of our future customers.
Now on slide nine I will discuss new scale in Utah associated municipal power systems or UAS.
A mutual agreement to terminate the carbon free power project or CFP.
Let me start by saying that CFPB unequivocally as it has been a tremendous success for new scale.
Through our work with <unk> in partnership with the U S Department of energy New scale successfully developed a detailed level III deployment schedules.
Prepared and submitted a limited work authorization.
Repaired and ready for submission a combined operating license based on new skills SLR technology of.
Of which approximately 50% of that application is generic.
And we developed our input to a detailed and comprehensive level two project cost estimate.
During this time, we also completed the Voyager expanded plant design.
Submitted our standard design approval application for a six module plant with a power up rate and received NRC approval for a means to get to a site boundary emergency planning cells.
Currently we are in our fabrication phase of our first six modules.
Through our participation with CFPB, new scale successfully advanced our new scale power modules to the point that utilities governments in industrials, we now rely on a proven small module reactor technology that has regulatory approval is in an active production and is ready for commercial.
Climate.
It is new skills view the project would achieve the milestone related to project economic competitiveness.
Despite elevated levels of inflation rising financing costs and supply chain disruptions that have impacted all infrastructure projects capital costs of the CFPB have not increased between the class III and the current class II estimates when adjusted for inflation.
I want to emphasize that point because not only.
<unk> overall capital cost remains stable the costume new scales <unk> technology, which is just one component of the CFPB have remained steady as well.
Our ability to control costs, even in challenging economic conditions is a testament to the hard work of our engineering and supply chain teams and our partners at floor.
CFPB targeted 80% subscription for the project by year end.
On our last earnings call, we shared the three waves as target might be achieved first by existing CFPB participants decreasing their current subscription levels second by <unk> members, who are not CFPB participants signing onto the project and third by CFPB, bringing in additional western public.
Our utilities investor owned utilities, and data center operators and industrial customers. Despite.
Significant efforts by both parties to advance the CFPB. It appeared unlikely that the project would have enough subscription to support deployment.
Therefore, you amps and new scale mutually determined that in in the project was the most prudent decision for both parties.
Importantly, we are working to ensure a successful transfer of long lead materials for the next six new scale power modules currently under development to be used by another customer.
New scale has established our industry leading position in large part based on our work with the CFPB.
Despite not reaching our subscription levels required for this phase of the project continue toward deployment.
<unk> was a tremendous success for our business and I couldnt be prouder of our team and their accomplishments.
We remain bullish on the future.
Cremant with venture one instead of power does not even scratched the surface so to speak of demand we see around the world.
Looking ahead, we believe our partnership with Android de risk future projects for many of the commercial challenges we experienced with the CFPB.
And we look forward to committed our efforts and resources to a productive new business development opportunities Central standard power.
In summary, our competitive position is stronger than ever.
Continued world class technology, and IP operation of our regulatory excellence deep new to experience a highly capable partner and a de risk supplier ecosystem will continue to support our ability to generate long term value for shareholders.
Now I'll hand, it over to Ramzi to provide our financial update Ramsey.
Thank you John.
Hello, everyone.
Our financial results will be available in our filings. It's my focus will be on expanding major line items or cost cutting efforts and the basis of presentation of our third quarter financials.
All figures following certainly discuss third quarter 2022 results unless I say otherwise.
First as recently announced new scale and <unk> have agreed to terminate the CFPB.
While this occurred subsequent to the September 30th close our third quarter financials have been presented to account for the significant events.
As I discuss our financial results I will highlight key items impacted by the termination of CFPB and discussed our treatment of those items.
<unk> generates cash and revenue from three sources.
Sale and delivery of new scale power modules or NPM and other equipment, we have developed.
<unk> of our technology and services.
Most of our revenue received to date is from licensing of our technology and services for our customers.
In the early phases of project development <unk> generates revenue by supporting a number of project development activities, such as fighting licensing and front end engineering design.
Design work and project plan.
As seen on slide 10 revenue for the third quarter of 2023 was $7 million research and development costs. During the third quarter of $63 7 million increase compared to the same period in the prior year due to new scale incurring a $35 $4 million additional expense, resulting from the anticipated termination of the <unk> agreement.
Otherwise third quarter research and development costs were decreased $6 1 million from the same period in the prior year consistent with our plan to share financial resources to sales and commercialization as we pivot from our R&D phase.
Loss for the quarter at $38 3 million was larger than for the same period in the prior year due to the tanker charge, partially offset by lower compensation costs and an unrealized gain on the value of our warrants.
<unk> ended third quarter with cash of $197 million and no debt.
Approximately $79 million of that is restricted cash used as collateral for our letters of credit and $118 million unrestricted cash.
Investors will note CMP liability of $34 5 million recorded on our balance sheet, which reflects our estimate of amounts owed to CFPB in relation to net development cost at September 30.
A more nuance notes in the second quarter asset long term contract work in process is now identified as long lead materials work in process.
To reflect the nature of the assets in anticipation of the termination of the contract.
We believe that the restricted cash under a letter of credit is in excess of our anticipated termination and the mobilization expenses and the unwinding of CFPB will have a net positive impact on unrestricted cash.
We expect our fourth quarter financials will reflect the final disposition of amounts pay TV apps as part of closing out CFPB and remaining cash flow lease to the company from our letters of credit.
During the nine months period, ending September 30, our operating cash flow was negative $110 million.
Management remains committed to conserving cash were additionally, research and development expenses and administrative overhead and focusing on sales and revenue generating activities.
During our fourth quarter earnings call, we expect the detailed work agreements terrapower as well as provide 2024 financial guidance.
Apart from our ATM facility.
We realized proceeds of $7 9 million on share sales, we're not currently considering any other public offering of debt financing as.
As we work diligently to advance through development stages of our current contracts and secure new ones, we will maintain our financial discipline and selectively consider capital raising to sustain a conservative liquidity reserves.
It is well established that there is an urgent need for advanced clean energy solutions that can help meet climate goals, while bolstering energy security <unk>.
<unk> is well positioned to meet this need through the sale and licensing of our power plant and supplying NPS and other equipment services in connection with these sales.
We are pleased with our progress and the steps were taking towards program commercialization, especially relative to the competition.
With that I'd like to thank you again for joining today and for your continued support of new scale.
We will now take questions operator.
Thank you at this time I would like to remind everyone in order to ask a question Press Star then the number one on your telephone keypad again that is star one to ask questions and we'll pause for just a moment to compile the Q&A roster.
And your first question comes from the line of Marc Bianchi from TD Cowen Your line is open.
Hey, Thank you.
Maybe ramzi start with you because you were just talking about.
Some of these items related to the U apps project and the.
Development cost Reimbursable agreement.
The 70 $579 million of restricted cash how much would you anticipate.
<unk> back into unrestricted cash in.
My understanding from this previously was that you would be taking ownership of some long lead items and some some other things from <unk>.
<unk>, but then you would sell those to another project does that need to happen.
To really get to that net.
Cash balance to the.
To the unrestricted cash.
This is ramsey, it's great to hear from you.
Thank you very much for that question.
<unk> been working very hard to come to a lease agreement.
Between ourselves and <unk> in relation to CFPB.
As you'll note, we've had $79 2 million of restricted cash.
On our balance sheet, approximately 77, six and real credit commitment.
The rest related to fees for the LC.
We expect now.
As a condition of the release agreement that we will make a payment to you amps.
A $49 8 million.
It covers costs relation to the KOL development EPC long lead materials.
We also anticipate.
And we will open a new letter of credit and the amount of $5 1 million.
$5 million effective credit commitment.
Therefore of the $79 2 million, we expect that we'll have about claimed $4 3 million released as cash.
Mark we anticipate that there'll be some demobilization costs and other costs, which we may realize most likely actually quarter one towards the end of quarter four but the near term impact of $24 $3 million release of cash.
Got it and of that $49 eight is there any netting of that if you are able to sell long lead items into Roe power or something like that or whats the dynamic there.
We're still working with CFPB and <unk> I think it's a bit early for us to comment, but our intent. Most certainly is to take these long lead materials.
<unk> and CPP in the theory of invest a lot of money in and employ them as they are they are meant to be employed until new projects.
Yes.
Okay great.
Z.
Another one on cash so you reiterated your reiterated guidance for cash use this year.
Which could imply that the.
The cash consumption in fourth quarter at least at the midpoint would be similar to what you did in the third.
Im sure Youre not ready to talk about 'twenty four in terms of cash use but maybe if we just think about this run rate right now if you consumed $18 million in the third quarter.
Excluding these items with <unk> that we were just talking about and talking about sort of the go forward business.
What would.
The cash flow profile look like should it be getting better or should it be getting worse and under what circumstances.
Sure, let me answer that in two ways.
For Q4.
As we are heading in.
I'll use a round number here the real numbers 197.
We're hanging with about 200 million as at the end of September 30th.
We believe that we should take in about $50 million worth of cash.
<unk> from work that we do.
We imagine that we will spend about $50 million and about $50 million will be consumed within that $49 million payment of $49 8 million payment I mentioned in relation to that release agreement. So we think fourth quarter will be down from the 197 to about.
One.
47, $1 50.
In relation to 2024.
Be clear on something.
New scale has.
A lot toggles that we're able to employ to manage our cash flow decision just a fixed expense business.
Variable expense and Theres a lot of discretionary spending.
We spend more as we have contracts and we pull in our spending as contracts either get pushed out or delayed or whether we want to focus more on.
Discretionary spend are non discretionary spend.
So I think that just as a general comment market and really important here is we feel we're in a very good cash position.
Our reiterate something I mentioned in the earlier comments, we're not in position to raise cash and we're not out right now with a public offering.
We will selectively look at it.
Being prudent of our use of capital.
And we understand that preserving value for our investors is our utmost priority.
So we feel we're in a very good position.
Okay. That's helpful.
Other one I had just related to to standard power natural one is it seems like a great opportunity but.
Lot of investors.
<unk> had mentioned that.
These two entities are very unknown and when you go to their websites theres not a whole lot. There if you try to Google them.
Isn't appear that there's a lot of reference out there that at least we can find as outsiders.
So investors are wondering how capable.
They are.
Really getting these projects across the finish line. So maybe you could.
Sure a little bit March the extent you are able to about who these counterparties are and why they should be viewed as.
Strong strong developers of these projects.
Mark.
Maybe go back to some of the comments that John made earlier.
Since that as a management team, we spend a lot of time getting potential clients to.
We spent a lot of time getting in Taiwan as a development partner this.
This is what we do for a living.
And we feel strongly that the business model that <unk> has developed has been a great enabler.
That business model has resonated with customers utilities industrials and others.
This resulted in a very significant pipeline for us.
Centered parallel been speaking to for over a year.
We said them well.
And we feel that Terrapower is a great customer for us.
And we know that the sites that they're developing our real sites we've.
We funded those as well.
It is unfortunate that we can't release too much information to the market at this stage, but we expected in the very near term.
Yes, Mark this is John.
We have been in discussion of standard power for quite some time, it's just coincidentally that.
The enter one also knew those same players engaged in the process and standard power, mainly gravitated to the model.
They are offering so.
Discussions are going on right now in the development of a phase.
Arguably you can say.
Should the announcement had been made back in October 6th.
The announcement said essentially that that standard power of the customer elected and chose new skills technology as a technology of choice going forward. So we're in the process right now with ensure one standard power in developing that deal and hopefully in the near term as Ramzi mentioned, we'll be able to bring forth more data to the.
The market.
Great. Thanks, gentlemen, I'll turn it back.
Yeah.
And your next question comes from the line of Brian. Thanks.
From B Riley your line is open.
Hey, Thanks for taking my questions guys.
So I was just wondering when do you expect to complete a project cost estimate for the standard power projects is at a near term for.
For now or.
Even before we get there could you give a very early stage estimate of the project costs that we're looking at for those two.
Ryan This is Ramsey again.
Thank you. Thank you for joining us thank you for the questions.
It's still a little bit early for us to comment on the structure and the nature of.
The contract with Terrapower.
Something that we're actively working with our mentioned here that really the customer is in Taiwan and this relationship.
And quite and Scott I think we have our.
Our chief commercial officer on the line he may be better position to comment on.
What we have coming down the line just from a timing perspective.
Thanks Ramsey.
Yes, so thank you.
Thank you Anthony and thank you for the question Yeah as everybody has stated those.
Those discussions and those contractual alignments are still being worked.
We're in a 90 day period to put it.
Definitive agreements together, so it'll be sometime early in the first Q1, where we will have.
A more firm.
Vision on this if we are in a position to be able to release something sooner. Then that's something we will certainly address but right now I don't think we're in a place to kind of outline where those are going to lie.
I will say directionally.
It's in a much better direction than what we've seen in other and other projects.
Ryan again this is ramzi.
I want to remind our analysts and our investor community.
Sam power enter one announced new scale.
As their technology provider of choice.
And that was a great announcement for us and we know that there have been doubts in the market and.
And we can't we.
We look forward to dispelling those doubts.
Working very hard to get the agreements in place where we can show.
We can show revenue coming we can show the structure of the agreements and we can push forward.
Speed up our stock price and we understand that.
And.
Let me assure you that management is working very very hard to come forward with more information as we're able to.
To support the deal that we have.
Got it that's helpful and then.
Turning to <unk>.
Two to CFPB.
Obviously, the learnings are very positive.
The development process for new scale going forward.
But can you talk about the key headwinds a little bit more between the subscription model and the side and maybe some others that ultimately didn't lead to that project getting built that you don't expect to face and subsequent projects from here.
Yes.
I'm sorry, this is John.
If you look at the tenure of that project over the years.
A lot of great successes came from that project, new scale was able to get through the rigor of the nuclear regulatory Commission.
Can we put together a standard plan design.
We've got our Colo submission that was going in January and probably 60% to 70% of that construction operation license license agreement can be moved to another customer.
The four genes that are ongoing currently with our partner <unk> are key supplier those are fungible assets vacant and we're in discussions with Doe and the odor currently about moving those assets to another customer. So if you look at.
What I would call sunk cost most of the achievements are going to benefit our next customer. There is some direct site specific engineering, obviously that won't but.
And the totality of it that was really minimal.
There's a site characterization and news, putting up fencing and doing some volcanic.
Our geological assessments for seismic, but the majority will move elsewhere.
Yes.
Maybe to further articulate on this.
Yes.
One of the reasons or the reason that.
We mutually decided to terminate CFPB was subscriptions and.
Yes.
Both new scale and <unk> and the <unk> of work very hard to keep this project moving along.
And ultimately subscriptions are something that were not in our control.
I think in future projects, we learn.
CFPB, we learned from some of the hurdles we learned from some of the development risks that come along with that.
I think that the model that we have now with central one.
We step away from the development role and focus on what this business is designed to do which is sell new scale power modules licensed the technology and sell services associated with those.
As long as we focus on that I think we can steer clear of some of the pitfalls that we had previously.
Yeah, a lot of the issues. We face are at sea of VP of really unique to CFPB, such as an issue a subscription the customer had made it very clear.
They had to achieve 80% of their total for this project to move forward and with all of the hard work that went into it. It was just not achievable. So looking at ongoing costs, we mutually determined.
It's probably the best thing to where collectively we move on.
<unk>.
Dakota, Indiana.
Youre on a dead horse, just now quickly and move on to others and that's where we are here. So.
I am very proud of the cost accomplishments over the years that we've had with our customer and that project in.
That business is business.
And Joe just to buttress John's earlier points.
We anticipate.
Half approximately.
The costs that we incurred in development that card is generic development.
So thats the other projects that informs our future business.
<unk> made a lot of great accomplishments with <unk> I think everyone is really very proud. Despite the fact that we didn't get to the finish line I think we're all very proud of where we got and what it means for the business overall I think what's critically important is if you look at the dynamics of the industry right now.
The market trends continue we we do have another customer in Romania Roe power.
<unk> been in discussions with their CEO in this weekend and that project continues to progress are keenly interested and continue will be with new scale is the technology of choice for that project, we continue to get great support from our government.
So all the indicators the industrials that we talked before.
Jose Reyes, Dr Ray as in <unk>.
17% to 20 industrials have approaches for different areas of either be it hydrogen or ammonia or process heat. So we're not seeing any slowdown in the market.
I think I've seen.
Anybody off from this project, we're reallocating resources. So we've just got to get our next couple of customers in the door get some firm contracts.
I think John just to add around the demand profile and the exciting thing around standard power in the data centers is that the demand profile is extremely different it's very robust needs the need for reliable available power is extremely important in the demand value.
For what they need in order to provide there.
And to the market into the market space of AI is far different. So so we anticipate that that profile and that need is a much different.
And what we're seeing with the subscription model of UV lamps.
Thank you got it.
That all makes a lot of sense and thank you for all that detail.
If I can just sneak one last one and John you started to talk about it a little bit, but if I'm thinking about the customer pipeline.
In the near term, maybe what geographic regions or customer types. Do you think have the best shot of converting into committed customers from the pipeline today.
Yes, I still believe with.
Particularly with our.
Coal plant refurbishment requirements within this country and you know how many coal plants are forecasted to come offline just by 2030.
It's still a very good model our ability from a scalability, where we can offer $4 six up to 924 megawatts.
That whole coal refurbishment overseas is still pretty much the same heavily driven by energy security needs, particularly central and eastern Europe.
One thing we are doing with the limited resources. Its the vetting of the opportunities is pretty important to get them into the class one.
It is heavily oriented to what's the regulatory framework and whereas a finding coming from.
No.
The lack of activity, albeit cop 28, I'm looking forward to it I've been to the last three.
Comps and I think this is going to be interesting to hear because you're going to hear a lot more about nuclear coming out of cop 28 next year.
Advanced nuclear.
Awesome. Thank you guys I'll turn it back.
Your next question comes from the line of sharp freezer.
<unk> partners your line is open.
Hey, guys, it's actually James for sure. Thanks for taking the question.
Got a quick follow up.
I would just want to come back to some of Randy's comments.
Showing more detail.
Can you give us any more color on what you expect to be able to provide with regards to the guidance on the coking coal.
The revenue and expense data points, there will just be cash from ops like yourself this year. Thanks.
Yes, I'm, sorry, I didn't hear that very well.
So the you had indicated that you will be able to give some more guidance on the <unk> call. I guess can you just give us any more color on what you expect to be able to provide is it is it just another year of cash from ops is it revenue and expense data points. Just how are you thinking about updating us with the next cycle.
I think there is yes. There is there is two points on this.
I have engaged our analyst community.
With more qualitative feedback then heart forecasts I think in the early stage of development of our business.
We rely on.
A handful of major contracts as we get moving I think because of the variability in star timings.
The work that's involved in early stage it is a bit difficult to stick to.
Prediction on.
On an on future earnings our future revenue.
That being said I would like to engage that for 2024 I think on the Q4 call. We'll look to do that my preference has been really to focus on cash because I think that accounting treatment for some of the work that we do skews the numbers, a little bit and Thats why youll notice that as I.
I discussed I think with Mark <unk> question XI discuss what Q4 looks like I really focused on cash and I think thats whats important for US now cash management Conservative cash management being responsible to our investors and bringing cash in from contracts and so it's likely I'll stick with a strong cash SKU as I.
Engage the analyst community.
Like to help people build out their models and build a proper comp GAAP revenue model as well so we'll be doing both but my focus really is on the cash management and cash flow.
Yes.
Got it thanks guys.
Thank you.
Thank you and that is all the time, we do have today for Q&A I will now turn the call back over to <unk> CEO John Hopkins for final comments, John Yes. Thank you operator again as we stated before our new scale. We believe is well positioned and we are a first mover in the SME space.
We are opposed poised to commercialize and deliver clean energy at scale.
And our technology is essential to powering the global energy transition.
And we believe we are at the forefront of that effort and we will work to deliver safe scalable and reliable calgon carbon free nuclear power going forward. So I do appreciate everybody's time. Thank you.
Thank you and this does conclude today's conference call you may now disconnect.
Good day.
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