Q2 2024 NuScale Power Corp Earnings Call

Operator: Good afternoon, and welcome to NuScale's second quarter 2024 earnings results conference call. Today's call is being recorded. All participants are in listen-only mode.

Operator: Good afternoon and welcome to NuScale's second quarter 2024 earnings results conference call. Today's call is being recorded. All participants are in listen-only mode. After management's prepared remarks, there will 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, press star one again. A replay of today's conference call will be available and accessible on NuScale's website at IR. NuScalePower.com. The web replay will be available for 30 days following the earnings call.

Speaker Change: Good afternoon and welcome to NuScale's second quarter 2024 Earnings Results Conference Call. Today's call is being recorded.

Scott Kozak: At this time, for opening remarks, I'd like to turn the call over to Scott Kozak, Director of Investor Relations.

Operator: After management's prepared remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press the star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star 1 again. A replay of today's conference call will be available and accessible on NuScale's website at ir.nuscalepower.com. The web replay will be available for 30 days following the earnings call. At this time, for opening remarks, I'd like to turn the call over to Scott Kozak, Director of Investor Relations. Please go ahead, Mr. Kozak.

Speaker Change: <unk> of Investor Relations.

Scott Kozak: Please go ahead, Mr. Kozak. Thank you, operator.

Speaker Change: Please go ahead Mr Kozak.

Scott Kozak: Thank you, Operator. Welcome to NuScale's second quarter 2024 earnings results conference call. With us today are John Hopkins, President and Chief Executive Officer, and Ramsey Hamady, Chief Financial Officer. On today's call, NuScale will provide an update on our business and discuss financial results. We will then open the phone lines for questions. This afternoon, we posted a set of supplemental slides on our Investor Relations website, as reflected in the Safe Harbor Statements on slide two, the information set forth in the presentation we discussed during the course of our remarks.

Speaker Change: Thank you operator, welcome to need scale second quarter 2024 earnings results conference call with US today are John Hopkins, President and Chief Executive Officer, Ramzi M D Chief Financial Officer on today's call just killed provide an update on our business and discuss financial results.

Scott Kozak: Welcome to NuScale's second quarter, 2024, earnings results conference call. With us today are John Hopkins, President and Chief Executive Officer, and Ramsay Hamady, Chief Financial Officer. On today's call, NuScale will provide an update on our business and discuss financial results.

Scott Kozak: We will then open the phone lines for questions. This afternoon, we posted a set of supplemental slides on our Investor Relations website. As reflected in the statement, some slide to the information set towards the presentation we discussed during the course of our remarks and the subsequent Q&A session includes school-looking statements which reflect our current views and existing trends in our 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 at 410K for our fiscal year 2023 and in our prior SEC filings.

Speaker Change: Open the phone lines for questions. This afternoon, we posted a set of supplemental slides on our Investor Relations website as reflected in the safe Harbor statements on slide two the information set forth in the presentation and discussed during the course of our remarks and the subsequent Q&A session includes forward looking statements, which reflect our current views and existing trends.

Speaker Change: Subject to a variety of risks and uncertainties you.

Speaker Change: You can find a discussion of our risk factors, which could potentially contribute to such differences in our SEC filings on Form 10-K for our fiscal year 2023 and in our prior SEC filings.

Scott Kozak: I'll now turn the call over to John Hopkins, NuScale's President and Chief Executive Officer.

Scott Kozak: And the subsequent Q&A session includes four forward-looking statements that 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 10-K for our fiscal year 2023 and in our prior SEC filings. I'll now turn the call over to John Hopkins, NuScale's President and Chief Executive Officer. John.

Speaker Change: I'll now turn the call over to John Hopkins These scales, President and Chief Executive Officer John.

John Hopkins: John? Thank you, Scott, and good afternoon, everyone. To begin, I'll give an update on recent developments with the Roe Power Project, as outlined on slide 3. In mid-July, SNN and Roe Power were authorized to proceed with Phase 2 front-end engineering design or FEED. Later that month, NuScale attended a Roe Powered Floor Science ceremony in Romania to announce the authorization to proceed on the contracting of Phase 2 feed with the Dorchester site between Floor and Roe Power. Along with the representatives from SNN, the Romanian government, and the U.S. Secretary of Energy Jennifer Grant Hall. We are working as a subcontractor under floor to provide NuScale SMR power modules.

John Hopkins: Thank you, Scott, and good afternoon, everyone. To begin, I'll give an update on recent developments with the Row Power Project, as outlined on slide three. In mid-July, S&N and Row Power were authorized to proceed with Phase II front-end engineering design, or FEED. Later that month, NuScale attended a row-powered floor signing ceremony in Romania to announce the authorization to proceed on the contracting of Phase 2 feed with the Dorchester site between floor and row power, along with representatives from SNN, the Romanian government, and the U.S. Secretary of Energy, Jennifer Granhol

John Hopkins: Thank you Scott and good afternoon, everyone to begin I will give an update on recent developments with the ROE power project as outlined on slide three.

Speaker Change: July yesterday, Dan in real power, we're authorized to proceed with phase II front end engineering design or feed.

John Hopkins: Later that month, new scale attended a road powered floor signing ceremony in Romania.

Speaker Change: The authorization to proceed on the contract you know phase two feed with the door chess site between floor and ROE power.

Speaker Change: Along with Representatives from Amsterdam.

Jennifer Granholm: The Romanian government in the U S Secretary of energy Jennifer Granholm.

John Hopkins: We are working as a subcontractor underfloor to provide NuScale SMR power. Next, we'll consider the current nuclear landscape and why we believe SMRs, especially NuScale, are well-positioned. As depicted on slide four, today's environment is experiencing a surge in electricity demand, while companies and governments seek to mitigate the production of emissions contributing to climate change. Nuclear energy is increasingly considered a secure energy solution to meet growing demand and achieve ambitious climate goals.

Speaker Change: We are working as a subcontractor on your floor to provide new scale as smart power modules.

John Hopkins: Next, let's consider the current nuclear landscape and why we believe SMRs, especially NuScale, are well positioned. As depicted on slide 4, today's environment is experiencing a surge in electricity demand while companies and governments seek to mitigate the production of emissions contributing to climate change. Nuclear energy is increasingly considered a secure energy solution to meet growing demand and achieve ambitious climate goals. Companies are pressured to source reliable energy while fulfilling their commitments to reduce emissions. They are concerned with having the energy to power their facilities and where that energy comes from. Placing greater emphasis on decarbonized base-load energy.

Speaker Change: Yes, let's consider the current nuclear landscape.

Speaker Change: Why do we believe asked them ours, especially new scale are well positioned.

Speaker Change: As depicted on slide four today's environment has experienced a surge in electricity demand while companies and governments seek to mitigate the production of emissions contributing to climate change.

Speaker Change: Nuclear energy is increasingly considered a secure energy solution can meet growing demand and achieve ambitious climate goals.

John Hopkins: Companies are pressured to source reliable energy while fulfilling their commitments to reduce emissions. They are concerned with having the energy to power their facilities and where that energy comes from, placing greater emphasis on decarbonized base load energy. For instance, last month, Google reported that increased electricity demand driven by AI in its growing fleet of data centers caused the company's greenhouse gas emissions to grow 48 percent above its 2019 baseline, posing a challenge in meeting its carbon neutrality goals by 2030.

Speaker Change: Companies are pressured you source reliable energy, while fulfilling their commitments to reduce emissions.

Speaker Change: They are concerned with have any energy to power their facilities and where that energy comes from.

Speaker Change: Placing greater emphasis on Decarbonize Baseload energy.

John Hopkins: For instance, last month, Google reported that increased electricity demand driven by AI and its growing fleet of data centers caused the company's greenhouse gas emissions to grow 48% above its 2019 baseline, posing a challenge in meeting its carbon neutrality goals by 2030. The U.S. Department of Energy aims to triple mutual capacity, adding 200 gigawatts to meet net zero emission goals by 2050. Nuclear energy is a valuable asset in the context of a global energy transition because it is a sustainable solution that operates reliably. This combination does not exist with other current energy solutions like wind or solar, which are intermittent and weather-dependent.

Speaker Change: For instance, last month, Google reported that increased electricity demand driven by AI and its growing fleet of data centers caused the company's greenhouse gas emissions to grow 48% above its 2019 baseline.

Speaker Change: Posing a challenge in meeting its carbon neutrality goals by 2030.

John Hopkins: The U.S. Department of Energy aims to triple nuclear capacity, adding 200 gigawatts, to meet net-zero admission goals by 2050. Nuclear energy is a valuable asset in the context of a global energy transition because it is a sustainable solution that operates reliably. This combination does not exist with other current energy solutions like wind or solar, which are intermittent and weather-dependent.

Speaker Change: The U S Department of energy AMC Triple nuclear capacity, adding 200, gigawatts to meet net zero emission goals by 2050.

Speaker Change: Nuclear energy is a valuable asset in the context of the global energy transition.

Speaker Change: It is a sustainable solution that operates reliably.

Speaker Change: This combination does not exist with other current energy solutions like wind or solar which are intermittent and weather dependent.

John Hopkins: NuScale's growth potential in the U.S. is significant as the need for a nuclear energy transition becomes clearer. Another opportunity for advanced nuclear power is to decarbonize industrial processes. As you may recall, NuScale can provide process heat for industrial customers by offering a safe, clean, reliable base load energy source with a limited land footprint. Additionally, its compact emergency planning zone allows us to co-locate with production facilities. This positions us favorably when engaging with potential manufacturing customers, many of which are thriving due to onshoring trends in the U.S., and we are having numerous productive discussions in this area. The most exciting source of new demand is the rapid growth of data centers to support AI. These facilities are projected to consume more than 9% of domestic electricity by 2030.

John Hopkins: New scale growth potential in the U.S. is significant as the need for nuclear energy transition becomes clearer. Another opportunity for advanced nuclear power is the decarbonized industrial processes. As you may recall, NuScale can provide process heat for industrial customers by offering a safe, clean, reliable, base-load energy source with a limited land footprint. NuScale's compact emergency plan and zone allows us to co-locate with production facilities. This positions us favorably when engaging with potential manufacturing customers, many of which are thriving due to ensuring trends in the U.S., and we are having numerous productive discussions in this area.

Speaker Change: New scales growth potential in the U S as significant as the need for nuclear energy transition becomes clearer.

Speaker Change: Another opportunity for advanced nuclear power is to Decarbonize industrial processes.

Speaker Change: You may recall, new scale can provide processes for industrial customers by offering a safe clean reliable baseload energy source with a limited land footprint.

Speaker Change: New scales compact emergency plan in itself allows us to co locate with production facilities.

Speaker Change: This positions us favorably when engaging with potential manufacturing customers.

Speaker Change: Many of which are thriving due to I'm showing trends in the U S and we are having numerous productive discussions in this area.

John Hopkins: The most exciting source of new demand is the rapid growth of data centers to support AI. These facilities are projected to consume more than 9 percent of domestic electricity by 2030. By producing uninterrupted power, advanced nuclear is the ideal solution to meet these energy needs.

Speaker Change: The most exciting source of new demand is the rapid growth of data centers to support AI. These.

Speaker Change: These facilities are projected to consume more than 9% of domestic electricity by 2030.

John Hopkins: Slide five highlights the data center and AI landscape. Our developer partner, Intrawin Energy, is working diligently with us on deploying NuScale SMRs globally. With a combination of Inter1 Energy and NuScale, we have originated opportunities and projects in relationships with numerous potential end users, including some of the world's largest tech companies. These tech companies' related opportunities emerged over the last several months, mainly driven by significant demand for hyperscale and AI infrastructure growth. Considering the evolution of tech companies' electricity needs, their current sense of urgency is justified. Data centers, AI, and cloud storage are 24-7 power consumers that require an uninterrupted, reliable power supply.

Speaker Change: By producing uninterrupted power advanced nuclear is the ideal solution to meet these energy needs.

John Hopkins: Flight 5 highlights the data center and AI landscape. Our developer partner, Interwin Energy, is working diligently with us and deploying NuScale SMRs globally. With a combination of Interwin Energy and NuScale, we have originated opportunities, projects in relationship with numerous potential end users, including some of the world's largest tech companies. These tech companies related opportunities emerged over the last several months, mainly driven by significant demand for hyper-scale and AI infrastructure growth. Considering the evolution of tech companies' electricity needs, their current system of urgency is justified. Data centers, AI, and cloud storage are 24-7 power consumers that require an uninterrupted, reliable power supply.

Speaker Change: Slide five highlights the data center and AI landscape.

Speaker Change: Our developer partner <unk> energy is working diligently with us and deploy new scale asset large globally.

Speaker Change: With a combination of excellent energy and new scale, we have originated opportunities projects in relationship with numerous potential end users, including some of the world's largest tech companies.

Speaker Change: These tech companies related opportunities emerged over the last several months, mainly driven by significant demand for hyper scale and AI infrastructure growth.

Speaker Change: Considering the evolution of tech companies electricity needs their current sense of urgency is justified.

Speaker Change: Data centers, AI and cloud storage are $24 seven power consumers that required uninterrupted reliable power supply and are critical for many tech companies looking to compete in today's market.

John Hopkins: And they are critical for many tech companies looking to compete in today's market. Goldman Sachs forecast a 15% compound annual growth rate, and U.S. data set power demand for 2030. The speed of demand growth is evident in Virginia, for example, where data centers are consuming one quarter of the state's electricity. Several of the country's most populous regions, including Dallas-Fort Worth, Silicon Valley, Chicago, New York, and Atlanta, have construction activity projected to lead to a significant 50% or higher increase.

John Hopkins: They are critical for many tech companies looking to compete in today's market. Goldman Sachs forecast their 15 percent compound annual growth rate, and US data center power demand through 2030. The speed of demand growth is evident in Virginia, for example, where data centers are consuming one quarter of the state's electricity. Several of the country's most populous regions, including Dallas-Fort Worth, Silicon Valley, Chicago, New York, and Greater Atlanta, have construction activity projected to lead to a significant 50 percent or higher increase.

Speaker Change: Goldman Sachs forecast is 15% compound annual growth rate in U S data center power demand through 2030.

Speaker Change: The speed of demand growth is evident in Virginia for example, where data centers are consuming one quarter the state's electricity.

Speaker Change: Several of the country's most populous regions, including Dallas Fort Worth Silicon Valley, Chicago, New York, and Greater Atlanta have construction activity projected to lead to a significant 50% or higher increase.

John Hopkins: This is where NuScale comes in. NuScale is an SMR technology provider and will grow by focusing solely on installing our technology inside power plant projects. Our SMR technology resonates strongly in areas that can reliable, decarbonize energy because our solution is clean and always on 24-7. Our SMR is scalable, reliable, and near-term deployable, aligning with clean energy commitments. Our global development partner, Inter-1 Energy, has creatively engineered a flexible and bespoke business model that provides utilities and commercial consumers with a solution to get SMR-generated energy off-take without the need to capitalize, own, or operate a nuclear energy power plant.

John Hopkins: This is where NuScale comes in. NuScale is an SMR technology provider and will grow by focusing solely on installing its technology inside power plant projects. Our SMR technology resonates strongly in areas seeking reliable decarbonized energy because our solution is clean and always on 24-7. Our SMRs are scalable, reliable, and near-term deployable, aligning with the Clean Energy Commitment. Our global development partner, Inter1 Energy, has creatively engineered a flexible and bespoke business model that provides utilities and commercial consumers with a solution to get SMR-generated energy offtake without the need to capitalize, own, or operate a nuclear energy power plant.

Speaker Change: This is where new scale come soon new scale is an <unk> technology provider and will grow by focusing solely on installing our technology inside power plant projects.

Speaker Change: Our <unk> technology resonates strongly in area seeking reliable decarbonize energy because our solution is clean and always on 24 seven.

Speaker Change: Our SLR as a scalable reliable and near term deployable.

Speaker Change: Lining with clean energy commitments, our global development partner <unk> energy has creatively engineered a flexible and bespoke business model that provides utilities and commercial consumers with a solution to get asked them are generated energy offtake without the need to capitalize one or.

Speaker Change: Right, a nuclear energy power plant.

John Hopkins: On slide 6, we examine strong bipartisan support in the US for advanced SMR and nuclear energy and NuScale technology specifically. And today's ever-changing political environment, the fact that both sides of the aisle agree on the importance of advanced nuclear is a testament to the unmet need for decarbonized space flow of the energy and the strength of our offering.

John Hopkins: On slide six, we examine strong bipartisan support in the U.S. for advanced SMR and nuclear energy and NuScale technology specifically. In today's ever-changing political environment, the fact that both sides of the aisle agree on the importance of advanced nuclear is a testament to the unmet need for decarbonized base-loaded energy and the strength of our, Looking ahead, there are two new funding opportunities in the energy and water fiscal year 2024 appropriations that NuScale and its customers can pursue. The precise objectives of these appropriations are near-term deployability.

Speaker Change: On slide six we examine strong bipartisan support in the U S for advanced as Tomorrow nuclear energy, a new scale technology specifically in.

Speaker Change: In today's ever changing political environment. The fact that both sides of the Isle agree on the importance of advanced nuclear is a testament to the unmet need for Decarbonize Baseload energy and the strength of our offering.

John Hopkins: Looking ahead, there are two new signing opportunities in the Energy and Water fiscal year 2024 appropriations. The NuScale and its customers can pursue. The precise objectives of these appropriations are near-term deployability, building a fleet, and adding power generation. This includes $800 million through a competitive cost share award just poured up to two near-term utility commercial deployments of Lightwater Reactor SMR technology in the US. In addition, a hundred million will be devoted to supporting grid scale generation 3-plus reactor design, licensing, supplier development, and site preparation to be deployed by 2030. The Department of Energy intends to announce final selections in Men 2025, and we believe NuScale is well-positioned for consideration to be a recipient or a recipient partner under both of these awards.

Speaker Change: Looking ahead, there are two new funding opportunities in the energy and water fiscal year 2024 appropriations, the new scale and its customers can pursue.

Speaker Change: The precise objectives of these appropriations are near term deploy ability.

John Hopkins: Building a Fleet and Adding Power Generation. This includes $800 million through a competitive cost share award to support up to two near-term utility commercial deployments of light water reactor SMR technology in the U.S. In addition, $100 million will be devoted to supporting grid-scale Generation 3 plus reactor design, licensing, supplier development, and site preparation to be deployed by 2030. The Department of Energy intends to announce final selections in mid 2025, and we believe NuScale is well positioned for consideration to be a recipient or a recipient partner under both of these awards.

Speaker Change: Building, a fleet and adding power generation.

Speaker Change: This includes $800 million through a competitive cost share award to support up to two near term utility commercial deployments of light water reactor <unk> technology in the U S.

Speaker Change: In addition, 100 may and will be devoted to supporting grid scale generation III Plas reactor design licensing supplier development and site preparation and deployed by 2030.

Speaker Change: The department of energy intends to announce final selections in mid 2025, and we believe new scale is well position for consideration to be a recipient or recipient partner under both of these awards.

John Hopkins: In addition, the bipartisan Advanced Act was signed in July 2024, which seeks to streamline the nuclear energy regulatory process by allowing the U.S. Nuclear Regulatory Commission, or NRC, to hire more staff, reduce licensing fees, speed application processing, and ease the burden of environmental reviews. For example, the act directs the NRC to complete reviews of combined license applications for new reactors and existing or adjacent sites on an expedited schedule, which should result in fewer delays or limit the cost to receiving a final decision on the license. The NRC was also directed to rely upon existing licensing information when a new reactor is built at an existing site, ensuring a more predictable and timely decision.

John Hopkins: In addition, the Bipartisan Advance Act was signed in July 2024, which seeks to streamline the nuclear energy regulatory process by allowing the U.S. Nuclear Regulatory Commission, or NRC, to hire more staff, reduce licensing fees, speed application processing, and ease the burden of environmental reviews. For example, the Act directs the NRC to complete reviews of combined license applications for new reactors at existing or adjacent sites on an expedited schedule, which should result in fewer delays and limit the cost of receiving a final decision on the license.

Speaker Change: In addition, the bipartisan Advanced Act was signed in July 2024.

Speaker Change: Which seeks to streamline the nuclear energy regulatory process by allowing the U S nuclear regulatory commission or NRC to hire more staff reduced licensing fees speed application processing and eases the burden of environmental reviews.

Speaker Change: For example, the act directs the NRC to complete reviews of combined license applications for new reactors at existing or adjacent sites on an expedited schedule.

Speaker Change: Which should result in fewer delays and limit the costs in receiving a final decision on the license fee.

John Hopkins: The NRC was also directed to rely upon existing licensing information when a new reactor is built at an existing site, ensuring a more predictable and timely decision. The Act includes several crucial provisions that could have a significant impact on NuScale. One provision aims to streamline the conversion of retired fossil fuel plants into nuclear facilities, potentially reducing costs in mid-infancy regions of the United States that might otherwise struggle during the energy transition.

Speaker Change: The NRC was also directed to rely upon existing licensing information when a new reactor is built at an existing site, ensuring a more predictable and timely decision.

John Hopkins: The act includes several crucial provisions that could have a significant impact for new skills. One provision aims to streamline the conversion of retired fossil fuel plants into nuclear facilities. Police. Potentially reducing costs in bid-infidine regions in the United States that might otherwise struggle during the energy transition. Another provision seeks to encourage increased foreign investment in the American nuclear sector by removing restriction on foreign entities' ability to seek certain licenses. Thus, potentially attracting foreign capital to support the domestic deployment of NuScale. Additionally, the act supports international harmonization efforts to enhance the global regulatory process and promote more efficient licensing approaches with international customers.

Speaker Change: The act includes several crucial provisions that could have a significant impact for new scale.

Speaker Change: <unk> provision aims to streamline that conversion of retired fossil fuel plants and two nuclear facilities.

Speaker Change: Retention really reducing costs embedded kunene region, instead of United States that might otherwise struggle during the energy transition.

John Hopkins: Another provision seeks to encourage increased foreign investment in the American nuclear sector by removing restrictions on foreign entities' ability to seek certain licenses, thus potentially attracting foreign capital to support the domestic deployment of NuScale. Additionally, the Act supports international harmonization efforts to enhance the global regulatory process and promote more efficient licensing approaches with international customers.

Speaker Change: Another provision seeks to encourage increased foreign investment in the American nuclear sector by removing restriction on foreign entities' ability to seek certain licenses.

Speaker Change: Thus potentially attracting foreign capital to support the domestic deployment of new scale.

Speaker Change: Additionally, the active sports international harmonization efforts to enhance the global regulatory process and promote more efficient licensing approaches with international customers.

John Hopkins: The impact for NuScale could potentially facilitate NuScale's collaboration with international customers and partners for strong backing from the U.S. State Department to ensure timely compliance with foreign regulations.

John Hopkins: The impact for NuScale could potentially facilitate NuScale's collaboration with international customers and partners, and for strong backing from the U.S. State Department to ensure timely compliance with foreign regulations. Moving on to slide 7, our readiness for deployment is far more advanced than our SMR technology peers, and the gap continues to widen. We are the only SMR technology with design certification from the Internet, while our SMR competitors remain early in the process of working towards approval. Our standard design approval application for a 77-megawatt uprate is scheduled to conclude by mid-2025.

Speaker Change: The impact for new scale could potentially facilitate new skills collaboration with international customers and partners with strong backing from the U S State department to ensure timely compliance with foreign regulations.

John Hopkins: Moving on to slide 7, our readiness for deployment has far more advanced than our SMR technology peers, and the gap continues to widen. We are the only SMR technology with design certification from the Intercede, while our SMR competitors remain early in the process of working towards approval. Our standard design approval application for a 77-megawatt operate is scheduled to conclude by mid-2025s. The design is based on our same fundamental safety case and features approved by the Intercede in 2020, and we believe the 77-megawatt NuScale Power Module supports an even more comprehensive range of customers. We are also leading a path on the manufacturing side.

Speaker Change: Moving on to slide seven our readiness for deployment as far more advanced in our <unk> technology peers and the gap continues to widen.

Speaker Change: We are the only <unk> technology with design certification from the NRC.

Speaker Change: While our SM our competitors remain early in the process of working towards approval.

Speaker Change: Our standard design approval application for a 77 megawatt operate is scheduled to conclude by mid 2025.

John Hopkins: The design is based on our same fundamental safety case and features approved by the NRC in 2020, and we believe the 77-megawatt NuScale power module supports an even more comprehensive range of customers. We're also leading the path on the manufacturing side. Doosan, our SMR manufacturer, continues to make progress in producing the first NuScale power module and all the forgings needed to support the start of fabrication for our upper reactor pressure valve. This continued work provides advantages for our next project deployment, shortening delivery times.

Speaker Change: The design is based on our same fundamental safety case and features approved by the NRC in 2020.

Speaker Change: We believe the 77 megawatt scale power module supports an even more comprehensive range of customers.

Speaker Change: We're also leading the pack on the manufacturing side.

John Hopkins: NuSON, our SMR manufacturer, continues making progress in producing the first NuScale Power Modules, and all the forgings needed to support the start of fabrication for upper reactor pressure vessels. This continued work provides advantages to our next project deployment, shortening delivery significantly. When it comes to manufacturing our modules, NuScale's relationship with our long-term supply chain partners, many of which are strategic investors, is one of our most significant sources of strength. Our robust supply chain has positioned NuScale as a clear manufacturing readiness leader in the SMR space. NuScale's ongoing efforts to cultivate these essential relationships set us apart from our peers.

Speaker Change: <unk>, our SMA manufacturer continued making progress in producing our first new scale power modules and all of the forgings needed to support the startup of fabrication for upper reactor pressure vessels.

Speaker Change: With continued work provides advantages to our next project deployment shortening delivery significantly.

John Hopkins: When it comes to manufacturing, our margin, NuScale's relationship with our long-term supply chain partners, many of which are strategic investors, is one of our most significant sources of strength. Our robust supply chain has positioned NuScale as a clear manufacturing readiness leader in the SMR space. NuScale's ongoing efforts to cultivate these essential relationships set us apart from our peers. In June, we hosted our third annual supplier working group in Fort Worth, TX, where we engaged with 43 representatives from 22 supplier organizations, sharing our significant accomplishments, providing updates on our deployment progress, and collaborating on supply-ready. These partnerships are crucial for the long-term delivery of high-quality, cost-competitive components.

Speaker Change: When it comes to manufacturing our modules new scales relationship with our long term supply chain partners, many of which are strategic investors.

Speaker Change: One of our most significant sources of streams.

Speaker Change: A robust supply chain has positioned new scale is a clear manufacturing readiness leader in the <unk> space.

Speaker Change: New scales ongoing efforts to cultivate these essentially relationship.

Speaker Change: Set us apart from our peers in June we hosted our third annual supplier working group in Fort Worth, Texas, where we engaged with 43 representatives from 'twenty two supplier organizations sharing our significant accomplishments providing updates on our deployment progress and collaborated on supply readiness.

John Hopkins: In June, we hosted our third annual supplier working group in Fort Worth, Texas, where we engaged with 43 representatives from 22 supplier organizations, sharing our significant accomplishments, providing updates on our deployment progress, and collaborating on supply readiness. These partnerships are crucial for the long-term delivery of high-quality, cost-competitive components. We remain devoted to working closely with our partners to develop a global supply chain that addresses a demand for NuScale's technology as it grows.

Speaker Change: These partnerships are crucial for the long term delivery of high quality cost competitive components.

John Hopkins: We remain devoted to working closely with our partners to develop a global supply chain that addresses the demand for NuScale's technology as it grows. I also want to touch on the request for proposal recently submitted by NuScale and Inter1 Energy to the Great British Nuclear SMR Competition. Given our regulatory head start and manufacturing readiness, we are uniquely prepared to deploy dependable, carbon-free nuclear power across the United Kingdom. Before I turn the call over to Ramsey, I want to acknowledge that 17 years ago, Chief Technology Officer and Co-Founder Dr. Jose Reyes-Stream's dream of designing a smaller, safer, and more cost-competitive alternative to conventional nuclear power became a reality as NuScale Power opened its doors.

Speaker Change: We remain devoted to working closely with our partners to develop a global supply chain that addresses the demand for new scale technology as it grows.

John Hopkins: I also want to touch on the request for proposal recently submitted by NuScale in Interwon Energy to the Great British Nuclear SMR competition. Given our regulatory hit start and manufacturing readiness, we are uniquely prepared to deploy dependable carbon-free NuScale power across the United Kingdom.

Speaker Change: I also want to touch on the request for proposal recently submitted by new scale and enter wind energy to the great British nuclear <unk> competition.

Speaker Change: Given our regulatory headstart in manufacturing revenues, we are uniquely prepared to deploy dependable carbon free nuclear power across the United Kingdom.

John Hopkins: DeFarture and a call over to Ramsey. I want to acknowledge that 17 years ago, Chief Technology Officer and co-founder Dr. Jose Reyes-Stream of designing a smaller, safer, and more cost-competitive alternative to conventional nuclear power became a reality as NuScale Power opened its source. As we celebrate 17 years of memories, we remain committed to improving the quality of life for people worldwide through the advancement of SMR nuclear technology. I could say with confidence, the exciting momentum building right now is remarkable. Whether it's industrial electrification, process heat, or the rapidly escalating demand of the data economy, NuScale's SMR technology is part of the energy solution for the future.

Ramzi: Before I turn the call over to Ramzi I want to acknowledge that 17 years ago, Chief Technology Officer, and co founder Dr. Jose Reyes stream of design, a smaller safer and more cost competitive alternative to conventional nuclear power became a reality as new skill power opened its stores.

John Hopkins: As we celebrate 17 years of memories, we remain committed to improving the quality of life for people worldwide through the advancement of SMR nuclear technology. I can say with confidence that the exciting momentum building right now is remarkable. Whether it's industrial electrification, process heat, or the rapidly increasing demand of the data economy, NuScale's SMR technology is part of the energy solution for the future, given our ability to produce clean, reliable energy, reach end-users, and help them achieve their sustainability goals.

Speaker Change: As we celebrate 17 years with memories, we remain committed to improving the quality of life for people worldwide due to the advancement of <unk> nuclear technology.

Ramzi: I can say with confidence the exciting momentum building right now is remarkable.

Speaker Change: Whether it's industrial electrification.

Ramzi: <unk> for the rapidly escalating demand of the data economy, new scales <unk> technology as part of the energy solution for the future.

John Hopkins: Given our ability to produce clean, reliable energy, reach end users, and help them achieve their sustainability goals. We maintain competitive advantages of technology, safety, manufacturing readiness, sighting, and regulatory success, and are prepared to produce and deliver. So 2024 continues, we are pleased with where we are and look forward to updating you in our progress.

Speaker Change: Given our ability to produce clean reliable energy reach end users and help them achieve their sustainability goals.

John Hopkins: We maintain competitive advantages of technology, safety, manufacturing readiness, siting, and regulatory success and are prepared to produce and deliver. So, as 2024 continues, we are pleased with where we are and look forward to updating you on our progress. Now I'll turn it over to Ramsey to provide our financial update.

Speaker Change: We maintain competitive advantages with technology safety manufacturing readiness sighting and regulatory success and are prepared to produce and deliver.

Speaker Change: So as 2024 continues we are pleased with where we are and look forward to updating you on our progress now I'll turn it over to Ramzi to provide our financial update Ramsey.

Ramsay Hamady: Now turn it over to Ramsey to provide our financial update. Ramsey, thank you, John, and hello everyone. Our financial results are available in our filings, so my focus will be on explaining major line items. These slide eight for second quarter results and relevant factors impacting our financial position. All figures following are for Q2-2024, and less I say otherwise. NuScale's overall cash position was virtually unchanged during the period and in the second quarter, with cash and equivalents of 136 million, 5.1 of which is restricted and no debt. This compares the cash and equivalents of 137.1 million, 5.1 of which was restricted, and no debt at the end of the prior quarter.

Ramsey Hamady: Thank you, John, and hello everyone. Our financial results are available in our filings, so my focus will be on explaining major line items; please see slide 8 for second quarter results and relevant factors impacting our financial position. All figures following are for Q2 2024 unless I stay otherwise. NuScale's overall cash position was virtually unchanged during the period, ending the second quarter with cash and equivalents of $136 million, $5.1 of which is restricted, and no debt. This compares the cash and equivalents of $137.1 million, 5.1 of which was restricted, and note that at the end of the prior quarter.

Ramzi: Thank you John and Hello, everyone.

Ramsey Hamady: For the quarter ending June 30, 2024, NuScale reported revenue of $1 million and a net loss of $74.4 million. This includes a non-cash expense of $36.7 million related to an increase in the fair value of warrants outstanding. During the same period in the prior year, the company reported revenue of $5.8 million and a net loss of $29.7 million. During the current quarter, we reported an operating loss of $41.9 million, compared to an operating loss of $56.1 million in the second quarter of 2023.

Ramzi: Results are available in our filings. So my focus will be on explaining major line items.

Ramzi: The slide eight our second quarter results and relevant factors impacting our financial position.

Ramzi: All figures following our Q2 2024, unless I state otherwise.

Ramzi: <unk> overall cash position was virtually unchanged during the period and in the second quarter with cash and equivalents of $136 million.

Ramzi: <unk>, one of which is restricted and no debt.

Ramzi: This compares to cash and equivalents of $137 1 million.

Ramzi: $5, one of which was restricted and note that at the end of the prior quarter.

Ramsay Hamady: For the quarter ending June 30th, 2024, NuScale reported revenue of 1 million and a loss of 74.4 million. This includes non-cash expense of 36.7 million related to an increase in the fair value of warrant outstanding. During the same period in the prior year, the company reported revenue of 5.8 million and that loss of 29.7 million. During the current quarter, we reported an operating loss of 41.9 million, compared to an operating loss of 56.1 million in the second quarter of 2023. This year-over-year reduction in quarterly operating expense of 14.2 million reflects the company's successful efforts to reduce expenses and operate more efficiently.

Ramzi: For the quarter ending June 32024, <unk> reported revenue of $1 million and net loss of $74 4 billion.

Ramzi: This includes a noncash expense of $36 $7 million related to an increase in the fair value warrants outstanding.

Ramzi: During the same period in the prior year the company reported revenue of $5 8 million and net loss of $29 7 billion.

Ramzi: During the current quarter.

Ramzi: Reported operating loss of $41 9 million.

Ramzi: Pair to an operating loss of $56 1 million in the second quarter of 2023.

Operator: Good afternoon and welcome to NuScale's second quarter, 2024, earning the results conference call. Today's call is being recorded. All participants are in listen only mode.

Ramsey Hamady: This year-over-year reduction in quarterly operating expense of $14.2 million reflects the company's successful efforts to reduce expenses and operate more efficiently. Subsequent to the second quarter of 2024, the company executed a revenue-generating agreement in relation to the advancement of the Dorgest Project, Phase 2. Over the next 12 months, we anticipate additional revenue from Fleur Corporation in respect of our continued contributions to this project. Looking forward, we will continue to be focused on managing liquidity and risk and remaining good stewards of shareholder capital.

Ramzi: This year over year reduction in quarterly operating expense of $14 2 million reflects the companys successful efforts to reduce expenses and operate more efficiently.

Operator: After management's prepared remarks, there will 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, press star one again. A replay of today's conference call will be available and accessible on NuScale's website at ir. NuScalePower.com. The web replay will be available for 30 days following the earnings call.

Ramsay Hamady: NuScale into the second quarter of 2024, the company executed a revenue-generating agreement in relation to the advancement of the Durgest Project V Phase 2. Over the next 12 months, we anticipate the additional revenue from Floor Corporation and respect of our continued contributions towards this project. Looking forward, we continue to be focused on managing liquidity and risk and remaining good stewards of shareholder accounts.

Ramzi: Subsequent to the second quarter of 2024, the company executed a revenue generating agreement in relation to the advancement that the drug test project phase two.

Ramzi: Over the next 12 months, we anticipate additional revenue from FERC Corporation in respect of our continued contributions towards this project.

Ramzi: Looking forward, we continue to be focused on managing liquidity and risk and remaining good stewards of shareholder capital.

Scott Kozak: At this time, for opening remarks, I'd like to turn the call over to Scott Kozak, Director of Investor Relations. Please go ahead, Mr. Kozak. Thank you operator. Welcome to NuScale's second quarter, 2024, earnings results conference call. With us today are John Hopkins, President and Chief Executive Officer, and Ramsay Hamady, Chief Financial Officer. On today's call, NuScale will provide an update on our business and discuss financial results. We will then open the phone lines for questions.

Ramsay Hamady: I will conclude my remarks with a brief view of our capitalization summary on slide 9. Additional information may be found in our SEC Form 10-Q and earnings release. With that, I'd like to thank you again for joining today and for your continued support of us, Gail.

Ramsey Hamady: I will conclude my remarks with a brief view of our capitalization summary on slide nine. Additional information may be found in our SEC Form 10-Q and earnings release. With that, I'd like to thank you again for joining us today and for your continued support of NuScale. We'll now take questions. Operator?

Ramzi: I will conclude my remarks with a brief view of our capitalization summary on slide nine.

Ramzi: Additional information may be found in our.

Ramzi: SEC Form 10-Q and earnings release.

Speaker Change: 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.

Operator: We'll now take questions. Operator? At this time, I would like to remind everyone that in order to ask a question, please press the star followed by the number one on your telephone keypad.

Operator: At this time, I would like to remind everyone, in order to ask a question, please press star followed by the number one on your telephone key. Your first question comes from the line of George Gianarikas with Canaccord Genuity.

Speaker Change: At this time I would like to remind everyone in order to ask a question. Please press star followed by the number one on your telephone keypad.

George Gianarikas: Your first question comes from the line of George Gianarikas with Cana Horde's New Beauty. Please go ahead. Hi, everyone. Thank you for taking my questions. Maybe you could provide us a little bit more color on your discussions with some of the data center companies, the hyperscalers.

Speaker Change: Your first question comes from the line of.

Scott Kozak: This afternoon, we posted a set of supplemental slides on our Investor Relations website. As reflected in the statement, some slide to the information set towards the presentation we discussed during the course of our remarks and the subsequent Q&A session includes school-looking statements which reflect our current views and existing trends in our subject to a variety of risks and uncertainties.

Speaker Change: Towards the.

Speaker Change: <unk> with Canaccord Genuity.

George Gianarikas: Hi, everyone. Thank you for taking the time to answer my questions. Maybe you could provide us with a little bit more color on your discussions with some of the data center companies, the hyperscalers. To the extent there are bottlenecks in the deployment of your reactors, is it possibly due to the fact that there aren't independent third parties who are willing to provide the risk capital and maybe own the reactor, and to what extent can Entro-1 sort of play a role in helping to fill that void?

Speaker Change: Please go having one thank you. Thank you for taking my questions.

Speaker Change: Maybe if you could provide us a little bit more color on your discussions with some of the data center companies the hyperscale.

John Hopkins: To the extent there are bottlenecks in the deployment of your reactors, is it possibly due to the fact that there aren't independent third parties who are willing to provide the risk capital and maybe own the reactor? And to what extent can enter one sort of play a role in helping to fill that void?

Speaker Change: To the extent there are bottlenecks.

Scott Kozak: You can find a discussion of our risk factors which could potentially contribute to such differences in our SEC filings at 410K for our fiscal year 2023 and in our prior SEC filings.

Speaker Change: In the deployment of your reactors as it possibly due to the fact that there arent from independent third parties, who are willing to provide the risk capital that may be one the reactor to what extent can enter one sort of play a role in helping to to fill that void.

John Hopkins: I'll now turn the call over to John Hopkins, NuScale's president and Chief Executive Officer. John? Thank you Scott, and good afternoon everyone.

John Hopkins: Thank you.

John Hopkins: Thank you.

John Hopkins: Yeah, this is Sean. It's, you know, I often stated in your spot on in your comment, you know, we have a technology we have the capacity to execute in what's been missing in this industry is the so-called developer you just mentioned. We've been working both the two years now with EnterOne and the development of a model of how to approach customers that you commented on, like the AI centers and data centers and industrials. These particular industries, they need 24-7 clean energy. They just don't necessarily want to own the nuclear asset. What they would like to do is have somebody provide them a build-on transfer or a build-on model where they provide the long-term PPAs required and our global developer partner helps bring the financing and the ability to do that, that build-on or build-on transfer.

John Hopkins: To begin, I'll give an update on recent developments with the Roe Power Project, as outlined on slide 3. In mid-July, SNN and Roe Power, we're authorized to proceed with Phase 2 front-end engineering design or feed. Later that month, NuScale attended a Roe Powered Floor Science ceremony in Romania to announce the authorization to proceed on the contracting of Phase 2 feed with the Dorchester site between Floor and Roe Power. Along with the representatives from SNN, the Romanian government and the U.S. Secretary of Energy Jennifer Grant Hall. We are working as a subcontractor underfloor to provide NuScale SMR power modules.

John Hopkins: Yeah, this is John. It's... You know, I've often stated, and you're spot on in your comment, we have the technology, we have the capacity to execute, and what's been missing in this industry is the so-called developer you just mentioned. We've been working close to two years now with EnterOne on the development of a model of how to approach customers that you commented on, like the AI centers and data centers and industrials.

Sean: Yes. This is Sean.

Sean: Okay.

Speaker Change: <unk> stated youre spot on in your comment we have the technology, we have the capacity to execute.

Speaker Change: And what's been missing in this industry is the so-called developer you just mentioned we've been working close to two years now with venture one in the development of our model.

Speaker Change: Of how to approach customers, which you commented on the.

John Hopkins: These particular industries need 24-7 clean energy; they just don't necessarily want to own the nuclear asset. What they would like to do is have somebody provide them with a build-own transfer or a build-own model where they provide the long-term PPAs required, and our global developer partner helps bring the financing and the ability to do that build-own or build-own transfer.

Speaker Change: AI centers and data centers and industrials These particular industries.

Speaker Change: The $24 seven clean energy.

Speaker Change: Don't necessarily want to own the nuclear asset what they would like to do is have somebody provide them a build own transfer build own model, where they provide the long term ppas required.

John Hopkins: Next, let's consider the current nuclear landscape and why we believe SMRs, especially NuScale, are well positioned. As depicted on slide 4, today's environment is experiencing surge and electricity demand while companies and governments seek to mitigate the production of emissions contributing to climate change. Nuclear energy is increasingly considered a secure energy solution to meet growing demand and achieve ambitious climate goals. Companies are pressured to source reliable energy while fulfilling their commitments to reduce emissions.

Speaker Change: And our global developer partner.

John Hopkins: They are concerned with having the energy to power their facilities and where that energy comes from. Placing greater emphasis on decarbonized base-load energy. For instance, last month, Google reported that increased electricity demand driven by AI and its growing fleet of data centers caused the company's greenhouse gas emissions to grow 48% above its 2019 baseline, posing a challenge in meeting its carbon neutrality goals by 2030. The U.S. Department of Energy aims to triple mutual capacity adding 200 gigawatts to meet net zero emission goals by 2050.

Speaker Change: Spring the financing and the ability to do that that build on or build on traps.

Speaker Change: Okay got it thank you.

George Gianarikas: Got it.

John Hopkins: Got it. Thank you. And maybe as a follow-up, can you maybe comment on any momentum, you did make some comments on what's happening in the UK, but outside of the UK, any highlights, any momentum, maybe in other geographies in Europe and Asia? Thank you. Yeah, we're seeing significant

John Hopkins: Thank you.

John Hopkins: And maybe as a follow-up, can you just, maybe as a follow-up, can you maybe comment on any momentum? You did make some comments on what's happening in the UK, but outside of the UK, any highlights, any momentum, maybe in other geographies in Europe and Asia. Thank you. Yeah, we're seeing significant interest in, you know, a lot of it in Central Eastern Europe is driven by inner security as well as climate destruction. Romania is a good case in point. You know, the Romanian project we've been working with the Romanian government for quite some time as they commented, you know, Flow Corporation will be the prime contractor where the subcontractor for that project, which we'll bring in our power modules to the road power project, but that's the one that's most further slum in Eastern Europe or Central Europe, but we also in discussions with other countries.

Speaker Change: And maybe as a follow up can you just.

Speaker Change: Maybe as a follow up can you maybe comment on any momentum you did make some comments on what's happening in the U K, but outside of the UK any any highlights any momentum.

Speaker Change: Maybe in other geographies in Europe and Asia. Thank you.

John Hopkins: Yeah, we're seeing significant interest in, you know, a lot of it in Central Eastern Europe is driven by inner security, as well as climate disruption. Romania is a good case in point. You know, the Romanian project; we've been working with the Romanian government for quite some time. As I commented, Floor Corporation will be the prime Contractor or the subcontractor for that project, which will bring our power modules to the real power project.

Speaker Change: Yes, we are seeing significant interest in a lot of it in central Eastern Europe is driven by <unk> security as well as climate disruption, Romania is a good case in point.

Speaker Change: <unk> project, we've been working with the Romanian government for quite some time as I commented.

Fluor Corporation: Fluor Corporation will be the prime contractor.

Fluor Corporation: The sub contractor for that project, which will bring our power modules to the role power project, but that's the one that's most furthest along in eastern Europe or Central Europe, but we're also in discussions with other countries because again, it's the same comment as I said before they need clean $24 seven rely.

John Hopkins: But that's the one that's the furthest along in Eastern Europe or Central Europe. But we're also in discussions with other countries. Because again, it's the same comment, as I said before, they need clean, 24-7 reliable energy. So the whole market is starting to reverberate, you know, after COP 28, COP 29. With the advanced stack that we hear, you know, on urbanization, that's a very key piece because it allows regulatory cooperation between a country's regulatory, you know, entity working with our NRC. So we're pretty bullish on what we're seeing in the market, overall. Thank you.

John Hopkins: Because again, it's the same common, as I said before; they need clean 24-7 reliable energy. So, the whole market is starting to resonate, you know, after COP 28, COP 29, with the advanced act that we hear, you know, on urbanization. That's a very key piece because it allows a regulatory operation between a country's regulatory, you know, entity working with our NRC. So, we're pretty bullish on what we're seeing in the market. Overall. Thank you. Thanks.

John Hopkins: Nuclear energy is a valuable asset in the context of a global energy transition because it is a sustainable solution that operates reliably. This combination does not exist with other current energy solutions like wind or solar, which are intermittent and weather dependent.

Fluor Corporation: <unk> energy so the whole market is starting to resonate.

Fluor Corporation: After top 28 <unk> 29.

Fluor Corporation: With the advanced stack that we here urbanization thats, a very key piece because it allows our regulatory.

John Hopkins: New scale growth potential in the U.S, is significant as the need for nuclear energy transition becomes clearer. Another opportunity for advanced nuclear power is the decarbonized industrial processes. As you may recall, NuScale can provide process heat for industrial customers by offering a safe, clean, reliable, base-load energy source with a limited land footprint. NuScale's compact emergency plan and zone allows us to co-locate with production facilities. This positions us favorably when engaging with potential manufacturing customers, many of which are thriving due to ensuring trends in the U.S., and we are having numerous productive discussions in this area.

Fluor Corporation: Operate cooperation between our countries regulatory.

Fluor Corporation: Entity working with our NRC. So we're.

Fluor Corporation: We're pretty bullish on what we're seeing in the market.

Fluor Corporation: Overall, thank you.

Fluor Corporation: Thanks.

Operator: As a reminder, should you have a question? Please press star, followed by the number one, under telephone key path.

Operator: As a reminder, should you have a question, please press star followed by the number one on your telephone keypad. Your next question comes from the line of Mark Bianchi with TD Cowan. Please go ahead.

Speaker Change: As a reminder, since you have a question. Please press star followed by the number one on your telephone keypad.

Marc Bianchi: The next question comes from the line of Marc Bianchi with TD County. Please go ahead. Thank you. I want to talk about data centers. We'll ask a couple of quarters here, not just from you guys. But we hear it kind of everywhere you look in the market. What's the timeline to get something, you know, a project announced?

Fluor Corporation: The next question comes from the line of Marc Bianchi with TD Cowen.

Speaker Change: Please go ahead.

Mark Bianchi: Thank you. I've heard a lot of talk about data centers in the last couple quarters here, not just from you guys, but we hear it, you know, kind of everywhere you look in the market. What's the timeline to get something, you know, a project announced?

Marc Bianchi: Thank you.

Marc Bianchi: Hi.

Marc Bianchi: A lot of talk about data centers. The last couple of quarters here not just from you guys, but we hear it.

Marc Bianchi: Where you look in the market, what's the timeline to get something a project announced.

John Hopkins: The most exciting source of new demand is the rapid growth of data centers to support AI. These facilities are projected to consume more than 9 percent of domestic electricity by 2030. By producing uninterrupted power, advanced nuclear is the ideal solution to meet these energy needs. Flight 5 highlights the data center and AI landscape. Our developer partner, Interwin Energy, is working diligently with us, and deploying NuScale SMRs globally. With a combination of interwin energy and NuScale, we have originated opportunities, projects in relationship with numerous potential end users, including some of the world's largest tech companies.

John Hopkins: Marc, this is John. We're working it hard with our both our customer and our developer. As you know, these are these are pretty complicated transactions, and they just take time that we're in almost daily, not weekly communications.

John Hopkins: Mark, this is John. We're working hard with both our customer and our developer. As you know, these are pretty complicated transactions, and they just take time. We're in almost daily, if not weekly, communication, trying to drive closure on some of these projects. We're as anxious as you are.

Marc Bianchi: Mark This is John we're working it hard with our with our both our customer and.

Mark: Our developer as you know these are these are pretty complicated transactions and they just take time.

Mark: We're in almost.

Speaker Change: Daily if not weekly communications trying to drive closer to some of these projects were as anxious as you are.

John Hopkins: Trying to drive closure to some of these projects, whereas anxious as you are. Okay.

Marc Bianchi: Okay.

John Hopkins: Okay. On Romania, nice to see it moving to phase two feed here. What's the timeline for that process, and when would we expect to hear more about that?

Marc Bianchi: Okay.

Marc Bianchi: On Romania, nice to see moving to phase two feet here. What's the timeline for that process and, you know, what would we expect to hear more about that? Yeah, we actually kick off our initial alignment section next week with the customer Floor Corporation and NuScale to start the process. And as you said, the scheduling of starting and commencing that the overall effort for the feed phase two will take approximately 12 months to complete. So, you know, we're really looking forward to working with both our customer and Floor Corporation on advancing this project. And the revenue that you talked about in the slides and in the comments is related specifically to the phase two feet.

Speaker Change: In Romania, nice to see moving to phase two feed here what's the.

Marc Bianchi: The timeline for that for that process and.

Speaker Change: When would we expect to hear more about that.

John Hopkins: Yeah, we actually kick off our initial alignment section next week with the customer floor corporation and NuScale to start the process, and as you said, the scheduling of starting and commencing that. The overall effort for feed phase 2 will take approximately 12 months to complete. So, you know, we're really looking forward to working with both our customer and Flora Corporation on advancing this project.

John Hopkins: These tech companies related opportunities emerged over the last several months, mainly driven by significant demand for hyper-scale and AI infrastructure growth. Considering the evolution of tech companies' electricity needs, their current system of urgency is justified. Data centers, AI and cloud storage are 24-7 power consumers that require an uninterrupted, reliable power supply. They are critical for many tech companies looking to compete in today's market. Goldman Sachs forecast their 15 percent compound annual growth rate, and US data center power demand through 2030.

Fluor Corporation: Yes, we actually kicked off our our initial alignment section next week with the customer Fluor Corporation, a new scale.

Speaker Change: Start the process and as you said the scheduling of starting and commencing that.

Marc Bianchi: The overall effort for the feed phase II will take approximately 12 months to complete so we're really looking forward to working with both our customer and floor Corporation on advancing this project.

John Hopkins: And the revenue that you talked about in the slides and in the comments is related specifically to the phase two feed. It would seem that way if you're talking about the next 12 months. And then any guidance you can give us on, you know, the magnitude of opportunity there.

Speaker Change: And the revenue that you talked about in the slides and in our comments is is related specifically to the phase two feed it would seem that way if youre talking about the next 12 months and then any any steer you can give us on the magnitude of opportunity there.

Marc Bianchi: It would seem that way for talking about the next 12 months. And then any steer you can give us on, you know, the magnitude of opportunity there?

John Hopkins: The speed of demand growth is evident in Virginia, for example, where data centers are consuming one quarter of the state's electricity. Several of the country's most populous regions, including Dallas-Fore Worth, Silicon Valley, Chicago, New York, and Greater Atlanta, have construction activity projected to lead to a significant 50 percent or higher increase.

Ramsay Hamady: Mark, this is, this is Ramsey. How are you doing? Good, thank you. Good to meet you. Very well, thanks.

Ramsey Hamady: Mark, this is this is Ramsey. How are you doing? Good, thank you. Good. Very well. Thanks.

Mark: Mark This is ray.

Speaker Change: Hey, How're you doing.

Mark: Good thank you.

Ramsey Hamady: Yeah, I'm glad you're asking about this because, yeah, I remember when we first met in October last year and talked about it during our investor day in New York and talked about the business model, and I think you know what this highlights very importantly is that our business models, as we outlined them, included revenues from services and technology, and pre-COD revenues, and not just from the hardware of the reactors. And so, this is a great example of the fact that we're generating revenue pre-COD.

Speaker Change: Got it.

Speaker Change: Very well thanks.

Ramsay Hamady: You know, I'm glad you're asking about this because, you know, I remember back in, I think we first met in October last year and talked about during our Investor Day in New York and talked about the business model. And I think, you know, what this highlights very importantly is that our business models, we outlined it included revenues from services and technology, how please COD revenues and not just from the hardware of the reactors. And so this, this is a great example of the fact that we're generating revenue. I think that's important for us to note in terms of the magnitude, Mark.

Speaker Change: I'm glad you're asking about this because I remember.

Speaker Change: Back in I think we first made in October last year and talked about during our Investor Day in New York and talked about the business model I think.

John Hopkins: This is where NuScale comes in. NuScale is an SMR technology provider and will grow by focus solely on installing our technology inside power plant projects. Our SMR technology resonates strongly in areas that can reliable, decarbonize energy because our solution is clean and always on 24-7. Our SMR is scalable, reliable, and near-term deployable, aligning with clean energy commitments. Our global development partner, Inter-1 Energy, has creatively engineered flexible and bespoke business model that provide utilities and commercial consumers with a solution to get SMR-generated energy off-take without the need to capitalize, own, or operate a nuclear energy power plant.

Speaker Change: What this highlights very importantly is that.

Speaker Change: Our business model as we outline that included no revenues from services and technology have placed CRD revenues not just from the hardware of the reactors and so this is it.

Speaker Change: A great example of the fact that we're generating revenue ratio D. I think that's important for us to note in terms of the magnitude Mark Yes, I know.

Ramsey Hamady: I think that's important for us to note. In terms of the magnitude, Mark, I know it's been tough for me not providing guidance on earnings or on the magnitude of revenues, and we're still not doing that yet. I think once we have a couple more projects in the pocket, and we have more visibility, we're going to start doing that. But for right now, we're going to stay away from providing guidance.

Marc Bianchi: You know, I know it's been tough with me not providing guidance on unearnings or magnitude of revenues. And we're still not doing that yet. I think once we have a couple more projects in the pocket and we have more visibility, we're going to start doing that. But right now we're going to stay away from providing guidance. Yep, okay.

Speaker Change: It's been a it's been.

Speaker Change: <unk> topped with me not providing guidance on our earnings or the magnitude of revenues and we're still not doing that yet I think once we have a couple more projects in the pockets and we have more visibility we're going to start doing that but right now we're going to stay away from providing guidance.

Ramsey Hamady: Yep, okay. Maybe to ask you another number question: can you say what cash from operations was in the quarter? I mean, I know we'll get it in the queue, but just so that we could frame kind of a discussion about where that might go.

Speaker Change: Yes, okay.

John Hopkins: On slide 6, we examine strong bipartisan support in the US for advanced SMR and nuclear energy and NuScale technology specifically. And today's ever-changing political environment, the fact that both sides of the aisle agree on the importance of advanced nuclear is a testament to the unmet need for decarbonized space flow of the energy and the strength of our offering. Looking ahead, there are two new signing opportunities in the Energy and Water Fiscal Year 2024 appropriations.

Ramsay Hamady: Maybe to ask you another number question on. Can you stay with cash from operations was in the quarter. I mean, I know we'll get it in the queue, but just so that we could frame kind of a discussion about where that might go. Yeah, absolutely.

Speaker Change: Okay. If I could ask you another number question.

Speaker Change: Can you say what cash from operations was in the quarter I mean, I know, we'll get it in the Q, but just so that we could frame kind of.

Speaker Change: Discussion about where that might go.

Ramsey Hamady: Yeah, yeah, absolutely. Yeah, look, I'll focus on OPEX because, you know, and I'm going to go on a look-back basis, Mark, versus a look-forward basis, but here's some guidance I can offer. Over the three quarters, let's say Q2-23 to Q4-23, NuScale was averaging about, you know, let's say $74 million in OPEX. And if I take out CFPP, it's probably around $56-57 million. When we did our RIF back in January, we announced in a press release that we were realizing savings of $50-$60 million, and I just had my team doing the analysis, and we started to realize those savings.

Speaker Change: Yes, absolutely.

Ramsay Hamady: I'll focus on OPEX because I'm going to go on a look-back basis, Marc. First-person look-forward basis, but here's some guidance I think I can offer over the three quarters. Let's take Q2, 23 to Q4, 23. NuScale was averaging about, let's say, 74 million in OPEX. If I take out CFPP, it was probably around 56, 57 million. When we did our rip back in January, we announced the press release; we said we're realizing savings of 50, 60 million, and I just had my team doing the analysis, and we've started to realize those savings. So we've gone down from the office around 55 million to OPEX, the average 43 million over the last two quarters.

Speaker Change: Yes look I'll focus on the Opex.

Speaker Change: Yes.

Mark Purcell: Go on a look back basis, Mark Purcell look forward basis, but here's some guidance I think it can offer.

John Hopkins: The NuScale and its customers can pursue. The precise objectives of these appropriations are near-term deployability, building a fleet and adding power generation. This includes $800 million through a competitive cost share award just poured up to two near-term utility commercial deployments of Lightwater Reactor SMR technology in the US. In addition, a hundred million will be devoted to supporting grid scale generation 3-plus reactor design, licensing, supplier development, and site preparation to be deployed by 2030. The Department of Energy intends to announce final selections in men 2025, and we believe NuScale is well-positioned for consideration to be a recipient or a recipient partner under both of these awards.

Speaker Change: Over the three quarters, let's say Q3 to Q4 2003. These scale was averaging about let's say $74 million and Opex and if I take out <unk>. It was probably around 50 $657 million. When we did our rep back in January we announced.

Mark Purcell: Our press release, we said, we're realizing savings of $50 million to $60 million and I just had my team doing the analysis and we start to realize those savings.

Ramsey Hamady: So, we've gone down from, you know, off X of around $55 million to off X of an average $43 million over the last two quarters. So, I think that's a great achievement for us. That's delivering on what we said we were going to deliver, which is real prudence in terms of our expenses and cost savings to our shareholders. Yeah.

Speaker Change: We've gone down from Opex around $55 million to Opex that average.

Mark Purcell: $3 billion over the last two quarters. So I think that's a great great achievement for us that's delivering on what we said we're that deliver which is real prudence in terms of our expenses and cost savings to our shareholders.

Ramsay Hamady: So I think that's a great achievement for us. That's delivering on what we said we're going to deliver, which is real prudence in terms of our expenses and cost savings to our shareholders. Yep. Okay, that makes sense. Thanks, Ramsey. Thanks.

Ramsey Hamady: Yep. Okay. That makes sense. Thanks, Ramsey.

Speaker Change: Yep, Okay that makes sense, thanks very much.

John Hopkins: In addition, the bipartisan Advanced Act was signed in July 2024, which seeks to streamline the nuclear energy regulatory process by allowing the US nuclear regulatory commission or NRC to hire more staff, reduce licensing fees, speed application processing, and ease the burden of environmental reviews. For example, the act directs the NRC to complete reviews of combined license applications for new reactors and existing or adjacent sites on an expedited schedule, which should result in fewer delays of limit the cost to receiving a final decision on the license.

Ramsay Hamady: That's a lot.

Speaker Change: Turning it back to Michael.

Ryan Pfingst: Your next question comes from one of Ryan Finst with BeReilly's Securities. Please go ahead. Yeah, hey guys, thanks for taking my questions. Just to follow up on row power, could you remind us what the next steps are beyond feed phase two, and the potential timing around those next steps?

Operator: Your next question comes from the line of Ryan Pfingst, with B. Reilly Securities. Please go ahead. Yeah, hey guys, thanks for taking the time...

Speaker Change: And next question comes from the line of Ryan <unk> with.

Ryan: B Riley Securities.

Speaker Change: Please go ahead.

Ryan Pfingst: Hey guys, thanks for taking my question. Just to follow up on row power, could you remind us what the next steps are beyond feed phase 2, and do you know the potential timing around those next steps?

Ryan: Yeah, Hey, guys. Thanks for taking my questions.

Speaker Change: Just to follow up on ROE power could you remind us what the next steps are beyond feed phase II.

Speaker Change: The potential timing around those next steps.

John Hopkins: I'm sorry, I'm mute.

John Hopkins: I'm sorry, I was on mute. This is John again.

Ryan: Okay, sorry, I was on mute. This is John again as I commented that we.

John Hopkins: This is John again. As I commented, we completed the preliminary feed. You know, and it was very successful. This next phase, as we said, is the Front End Engineering Design. And it's the engineering design approach used to control our project expenses and go through this next year to finalize to go into the final improvement by the Romanian government for the next phase of the project would be, which would be to move forward on the complete project itself. So, you know, the feed package for us is in for Floor Corporation. As we stated, we're providing the engineering deliverables for our piece of it to Floor. Floor is the designated APC on the project to that helps.

John Hopkins: The NRC was also directed to rely upon existing licensing information when a new reactor is built at an existing site, ensuring a more predictable and timely decision. The act includes several crucial provisions that could have a significant impact for new skills. One provision aims to streamline the conversion of retired fossil fuel plants into nuclear facilities. Police. Potentially reducing costs in bid-infidine regions in the United States that might otherwise struggle during the energy transition.

Ryan: We completed.

Ryan: Preliminary feeds.

John Hopkins: As I commented, we completed the preliminary feed, you know, and it was very successful. This next phase, as we said, is the front-end engineering design. And it's the engineering design approach used to control our project expenses and go through this next year to finalize, to go into the final approval by the Romanian government for the next phase of the project, which would be to move forward on the complete project itself. So, you know, the fee package for us is, and for FLOR Corporation, as we stated, we're providing the engineering deliverables for our piece of it to FLOR. FLOR is the designated APC on the project.

Ryan: And it was very successful. This next phase as we said is the front end engineering design.

Speaker Change: The engineering design approaches the controller project expenses and go through this next year to finalize to go into the final approval by the Romanian government for the next phase of the project would be which would be to move forward on the complete project itself.

Ryan: No.

Speaker Change: Feed package for us and for Fluor Corporation. As we stated we are providing the engineering deliverables for our piece of it too floor floor as the designated APC on the project.

John Hopkins: Another provision seeks to encourage increased foreign investment in the American nuclear sector by removing restriction on foreign entities' ability to seek certain licenses. Thus, potentially attracting foreign capital to support the domestic deployment of NuScale. Additionally, the act supports international harmonization efforts to enhance the global regulatory process and promote more efficient licensing approaches with international customers. The impact for NuScale could potentially facilitate NuScale's collaboration with international customers and partners for strong backing from the U.S. State Department to ensure timely compliance with foreign regulations.

Speaker Change: Okay that helps.

John Hopkins: Okay, thanks, John. The duration of this, we kick off hopefully next week. It's about a 12-month program. Would you expect revenue to start contributing in 3Q?

John Hopkins: Okay, thanks, John. But the duration of this, we kick off hopefully next week. It's about a 12-month program. Would you expect revenue to start contributing in 3Q related here?

John Hopkins: Okay. Thanks, John.

John Hopkins: Better duration the duration of this we kickoff hopefully next week.

John Hopkins: It's about a 12 month program.

Speaker Change: Would you expect revenue to start contributing and three Q.

Ryan: Related here.

John Hopkins: I'll let you do that, Ryan. Yeah, we signed a revenue-generating contract. I don't want to make any statements around gap revenue, just in terms of recognition, until we actually book that. But we did try a revenue-generating concept. Okay, thanks for having me. And then... Just one more, I guess.

John Hopkins: All right. Yeah, we signed a revenue engineering contract.

Speaker Change: I'll add to that Ryan.

Ryan: Yes.

Ryan: Signed that we signed revenue generating contract.

John Hopkins: I don't want to make any statements around, you know, gap revenue, just in terms of recognition until we actually booked that. But we did sign a revenue engineering contract. Okay, thanks, revenue.

Speaker Change: Want to make any statements around.

Speaker Change: GAAP revenue just in terms of recognition until until we actually book that.

John Hopkins: Moving on to slide 7, our readiness for deployment has far more advanced than our SMR technology peers, and the gap continues to widen. We are the only SMR technology with design certification from the intercede, while our SMR competitors remain early in the process of working towards approval. Our standard design approval application for a 77-megawatt operate is scheduled to conclude by mid-2025s. The design is based on our same fundamental safety case and features approved by the intercede in 2020, and we believe the 77-megawatt NuScale Power Module supports an even more comprehensive range of customers.

Speaker Change: But we did Thai revenue generating contract.

Speaker Change: Okay. Thanks, Robin and then.

Ryan Pfingst: And then just one more, I guess. Can you talk about the competitive landscape today? Not only, you know, on the SMR and nuclear side, but when you're talking to data center customers and others, are you also competing against all their types of technologies? And the customers who we're talking with right now, some of them will probably put out an RFP that would involve, you know, other technologies. It depends on what they're asking for.

John Hopkins: Can you talk about the competitive landscape today, not only on the SMR and nuclear side, but when you're talking to data center customers and others, are you also competing against other types of technology?

Speaker Change: Just one more I guess can you talk about the competitive landscape today, not only on the <unk> and nuclear side, but when Youre talking to data center customers and others are you also competing against other types of technologies.

John Hopkins: And the customers who we're talking with right now, some of them will probably put out an RFP that would involve other technologies. It depends on what they're asking for, but a lot of the conversations that we are engaged in right now are really about, as I commented before, the ability to bring.

Speaker Change: The customers, who were talking with right now some of them will probably put out an RFP that was involved.

Speaker Change: Other technologies that depends on the on what they are asking for but a lot of the conversations that we are engaged with right now it's really about.

John Hopkins: But a lot of conversations that we are engaged with right now, it's really about, as I commented before, the ability to bring the BLT model and the BLT model. We've yet to see another developer of the magnitude that we're seeing here with the Tier 1 banks that we're working with coming forward with that similar type model. We hear discussion about it that at this point, you know, the competition, as you know, is in a comment before we are going through our power upgrade, but we did get through the licensing process, and as far as I know, no other US-based technology, anyway, has completed the design certification application for the Nuclear Regulatory Commission.

John Hopkins: We are also leading a path on the manufacturing side. NuSON, our SMR manufacturer, continues making progress in producing the first NuScale Power Modules, and all the forgians needed to support the start of fabrication for upper reactor pressure vessels. This continued work provides advantages to our next project deployment, shortening delivery significantly. When it comes to manufacturing our modules, NuScale's relationship with our long-term supply chain partners, many of which are strategic investors, are one of our most significant sources of strength.

Speaker Change: As I commented before.

Ryan: So the ability to bring the.

John Hopkins: The BOT model and the BO model; we've yet to see another developer of the magnitude that we're seeing here with the tier one banks that we're working with coming forward with that similar type model. We hear discussions about it at this point. You know, the competition, as you know, as I commented before, we are going through our power upgrade, but we did get through the licensing process. And as far as I know, no other U.S.-based technology, anyway, has completed the design certification application for the Nuclear Regulatory Commission.

Ryan: The BLT model and the model, we've yet to see another developer of the magnitude that we're seeing here with the.

Ryan: The tier one banks that we're working with coming forward with.

Ryan: That's similar type.

Ryan: Model, we hear discussion about it.

Ryan: At this point.

Ryan: The competition as you know as I commented before we are going through our power up rate, but we did get through the licensing process and as far as I know.

Ryan: No other U S based technology anyway has completed the design certification application for the nuclear regulatory Commission.

John Hopkins: Our robust supply chain has positioned NuScale as a clear manufacturing readiness leader in the SMR space. NuScale's ongoing efforts to cultivate these essential relationships set us apart from our peers. In June, we hosted our third annual supplier working group in Fort Worth, Texas, where we engaged with 43 representatives from 22 supplier organizations, sharing our significant accomplishments, providing updates on our deployment progress, and collaborating on supply readiness. These partnerships are crucial for the long-term delivery of high-quality cost-competitive components. We remain devoted to working closely with our partners to develop a global supply chain that addresses a demand for NuScale's technology as it grows.

Ryan Pfingst: Great.

John Hopkins: Great. Thanks for that color, guys. I'll turn it back.

Ryan: Great. Thanks for that color guys I'll turn it back.

Ryan Pfingst: Thanks for that color, guys.

Ryan Pfingst: I'll turn it back. Hey, thank you, Ryan.

Ryan: Hey, Thank you Ryan.

Operator: Ladies and gentlemen, that completes the question-and-answer session.

Operator: Ladies and gentlemen, that concludes the question and answer session. I'll now turn the call back over to NuScale CEO John Hopkins for closing remarks. Please go ahead. Thank you. Thank you, operator.

Speaker Change: Ladies and gentlemen that completes the question and answer session.

John Hopkins: I'll now turn the call back over to New Scale CEO, John Hopkins, for closing up the remarks. Please go ahead. Thank you. Thank you, operator. New Scale, again, was our strategic partner Inter-1 Energy is executing. We believe a very robust project development pipeline in a prepared to deliver with industry leading manufacturing readiness. We believe a well positioned to commercialize the new scale SMR technology. You know, we're very pleased with our progress and remain steadfastly focused on our goals.

Speaker Change: I will now turn the call back over to new scale CEO John Hopkins for closing remarks. Please go ahead.

John Hopkins: NuScale, again, with our strategic partner, Enter One. Energy is executing, we believe, a very robust project development pipeline and is prepared to deliver with industry-leading manufacturing readiness. And we believe we're well-positioned to commercialize the NuScale SMR technology. You know, we're very pleased with our progress and remain steadfastly focused on our goals. And I'd like to thank everybody for participating today. Thank you. Ladies and gentlemen, that concludes today's call. Thank you all for joining, and you may now disconnect.

John Hopkins: Thank you operator.

Speaker Change: New scale again with our strategic partner <unk>.

Speaker Change: Energy is executing we believe a very robust project development pipeline and are prepared to deliver with industry, leading manufacturing readiness.

John Hopkins: And we believe we are well positioned to commercialize the new skill as similar technology.

Speaker Change: We're very pleased with our progress and remain steadfastly focused on our goals and I would like to thank everybody for participating today. Thank you.

John Hopkins: And I'd like to thank everybody for participating today. Thank you.

John Hopkins: I also want to touch on the request for proposal recently submitted by NuScale in Interwon Energy to the Great British Nuclear SMR competition. Given our regulatory hit start and manufacturing readiness, we are uniquely prepared to deploy dependable carbon-free NuScale power across the United Kingdom.

Speaker Change: Yeah.

Operator: Ladies and gentlemen, that concludes today's call. Thank you all for joining, and we'll be now disconnect.

Speaker Change: Ladies and gentlemen that concludes today's call. Thank you all for joining and you may now disconnect.

Speaker Change: [music].

John Hopkins: DeFarture and a call over to Ramsey.

John Hopkins: I want to acknowledge that 17 years ago, Chief Technology Officer and co-founder Dr. Jose Reyes-Stream of designing a smaller, safer, and more cost-competitive alternative to conventional nuclear power became a reality as NuScale power opened its source. As we celebrate 17 years of memories, we remain committed to improving the quality of life for people worldwide through the advancement of SMR nuclear technology. I could say with confidence, the exciting momentum building right now is remarkable.

Speaker Change: Yes.

Speaker Change: [music].

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: [music].

John Hopkins: Whether it's industrial electrification, process heat, or the rapidly escalating man of the data economy, NuScale's SMR technology is part of the energy solution for the future. Given our ability to produce clean, reliable energy, reach end users, and help them achieve their sustainability goals. We maintain competitive advantages of technology, safety, manufacturing readiness, sighting, and regulatory success, and are prepared to produce and deliver.

John Hopkins: Okay.

John Hopkins: Yes.

John Hopkins: [music].

John Hopkins: So as 2024 continues, we are pleased with where we are and look forward to updating you in our progress.

Ramsey Hamady: Now turn it over to Ramsey to provide our financial update.

Ramsey Hamady: Ramsey, thank you John and hello everyone. Our financial results are available in our filings, so my focus will be on explaining major line items. These slide eight for second quarter results and relevant factors impacting our financial position. All figures following are for Q2-2024 and less I say otherwise. NuScale's overall cash position was virtually unchanged during the period and in the second quarter with cash and equivalents of 136 million, 5.1 of which is restricted and no debt.

John Hopkins: Okay.

John Hopkins: [music].

John Hopkins: Yes.

John Hopkins: Okay.

John Hopkins: Thank you.

Ramsey Hamady: This compares the cash and equivalents of 137.1 million, 5.1 of which was restricted, and no debt at the end of the prior quarter. For the quarter ending June 30th, 2024, NuScale reported revenue of 1 million, and that loss of 74.4 million. This includes non-cash expense of 36.7 million related to an increase in the fair value of warrant outstanding. During the same period in the prior year, the company reported revenue of 5.8 million and that loss of 29.7 million.

John Hopkins: Thank you.

John Hopkins: [music].

Ramsey Hamady: During the current quarter, we reported an operating loss of 41.9 million, compared to an operating loss of 56.1 million and the second quarter of 2023. This year over year reduction in quarterly operating expense of 14.2 million reflects the company's successful efforts to reduce expenses and operate more efficiently. NuScale into the second quarter of 2024, the company executed a revenue-generating agreement in relation to the advancement of the Durgest Project V Phase 2. Over the next 12 months, we anticipate the additional revenue from floor corporation and respect of our continued contributions towards this project.

Ramsey Hamady: Looking forward, we continue to be focused on managing liquidity and risk and remaining good stewards of shareholder accounts. I will conclude my remarks with a brief view of our capitalization summary on slide 9. Additional information may be found in our SEC form 10Q and earnings release.

Ramsey Hamady: With that, I'd like to thank you again for joining today and for your continued support of use, Gail.

Operator: We'll now take questions. Operator? At this time, I would like to remind everyone in order to ask a question, please press the star followed by the number one on your telephone keypad.

George Gianarikas: Your first question comes from the line of George Gianarikas with Cana Horde's New Beauty. Please go ahead. Hi, everyone. Thank you for taking my questions. Maybe you could provide us a little bit more color on your discussions with some of the data center companies, the hyperscalers. To the extent there are bottlenecks in the deployment of your reactors, is it possibly due to the fact that there aren't independent third parties who are willing to provide the risk capital and maybe own the reactor and to what extent can enter one sort of play a role in helping to fill that void? Thank you. Yeah, this is Sean.

John Hopkins: It's, you know, I often stated in your spot on in your comment, you know, we have a technology we have the capacity to execute in what's been missing in this industry is the so-called developer you just mentioned. We've been working both the two years now with EnterOne and the development of a model of how to approach customers that you commented on like the AI centers and data centers and industrials. These particular industries, they need 24-7 clean energy.

John Hopkins: They just don't necessarily want to own the nuclear asset. What they would like to do is have somebody provide them a build-on transfer or a build-on model where they provide the long-term PPAs required and our global developer partner helps bring the financing and the ability to do that, that build-on or build-on transfer. Got it. Thank you.

Marc Bianchi: And maybe as a follow-up, can you just, maybe as a follow-up, can you maybe comment on any momentum, you did make some comments on what's happening in the UK, but outside of the UK, any highlights, any momentum, maybe in other geographies in Europe and Asia, thank you. Yeah, we're seeing significant interest in, you know, a lot of it in Central Eastern Europe is driven by inner security as well as climate destruction.

Marc Bianchi: Romania is a good case in point. You know, the Romanian project we've been working with the Romanian government for quite some time as they commented, you know, flow corporation will be the prime contractor where the subcontractor for that project, which we'll bring in our power modules to the road power project, but that's the one that's most further slum in Eastern Europe or Central Europe, but we also in discussions with other countries.

Marc Bianchi: Because again, it's the same common as I said before, they need clean 24-7 reliable energy. So, the whole market is starting to resonate, you know, after COP 28, COP 29, with the advanced act that we hear, you know, on urbanization, that's a very key piece because it allows a regulatory operation between a country's regulatory, you know, entity working with our NRC. So, we're pretty bullish on what we're seeing in the market. Overall. Thank you. Thanks. As a reminder, should you have a question? Please press star, followed by the number one, under telephone key path.

Marc Bianchi: The next question comes from the line of Marc Bianchi with TD County. Please go ahead. Thank you.

John Hopkins: I want to talk about data centers. We'll ask a couple of quarters here, not just from you guys. But we hear it kind of everywhere you look in the market. What's the timeline to get something, you know, a project announced? Marc, this is John. We're working it hard with our both our customer and our developer. As you know, these are these are pretty complicated transactions and they just take time that we're in almost daily, not weekly communications. Trying to drive closure to some of these projects, whereas anxious as you are. Okay.

Marc Bianchi: On Romania, nice to see moving to phase two feet here. What's the timeline for that for that process and, you know, what would we expect to hear more about that? Yeah, we actually kick off our initial alignment section next week with the customer floor corporation and NuScale to start the process. And as you said, the scheduling of starting and commencing that the overall effort for the feed phase two will take approximately 12 months to complete.

Marc Bianchi: So, you know, we're really looking forward to working with both our customer and floor corporation on advancing this project. And the revenue that you talked about in the slides and in the comments is related specifically to the phase two feet. It would seem that way for talking about the next 12 months. And then any steer you can give us on, you know, the magnitude of opportunity there?

Ramsey Hamady: Mark, this is, this is Ramsey, how are you doing? Good, thank you. Good to meet you. Very well, thanks. You know, I'm glad you're asking about this because, you know, I remember back in, I think we first met in October last year and talked about during our investor day in New York and talked about the business model. And I think, you know, what this highlights very importantly is that our business models, we outlined it included revenues from services and technology, how please COD revenues and not just from the hardware of the reactors.

Ramsey Hamady: And so this, this is a great example of the fact that we're generating revenue. I think that's important for us to note in terms of the magnitude, Mark. You know, I know it's been, it's been tough with me not providing guidance on unearnings or magnitude of revenues. And we're still not doing that yet. I think once we have a couple more projects in the pocket and we have more visibility, we're going to start doing that. But right now we're going to stay away from providing guidance. Yep, okay.

Ramsey Hamady: Maybe to ask you another number question on. Can you stay with cash from operations was in the quarter. I mean, I know we'll get it in the queue, but just so that we could frame kind of a discussion about where that might go. Yeah, absolutely. I'll focus on OPEX because I'm going to go on a look-back basis, Marc, first-person look-forward basis, but here's some guidance I think I can offer over the three-quarters.

Ramsey Hamady: Let's take Q2, 23 to Q4, 23. NuScale was averaging about, let's say, 74 million in OPEX. If I take out CFPP, it was probably around 56, 57 million. When we did our rip back in January, we announced the press release, we said we're realizing savings of 50, 60 million, and I just had my team doing the analysis, and we've started to realize those savings. So we've gone down from the office around 55 million to OPEX, the average 43 million over the last two quarters.

Ramsey Hamady: So I think that's a great achievement for us. That's delivering on what we said we're going to deliver, which is real prudence in terms of our expenses and cost savings to our shareholders. Yep. Okay, that makes sense. Thanks, Ramsey. Thanks.

Speaker: That's a lot.

Ryan Pfingst: Your next question comes from one of Ryan Finst with BeReilly's securities. Please go ahead. Yeah, hey guys, thanks for taking my questions.

John Hopkins: Just to follow up on row power, could you remind us what the next steps are beyond feed phase two, and the potential timing around those next steps? I'm sorry, I'm mute. This is John again. As I commented, we completed the preliminary feed, you know, and it was very successful. This next phase, as we said, is the front end engineering design. And it's the engineering design approach used to control our project expenses and go through this next year to finalize to go into the final improvement by the Romanian government for the next phase of the project would be, which would be to move forward on the complete project itself.

John Hopkins: So, you know, the feed package for us is in for floor corporation. As we stated, we're providing the engineering deliverables for our piece of it to floor floor is the designated APC on the project to that helps. Okay, thanks, John. But the duration of this, we kick off hopefully next week. It's about a 12-month program. Would you expect revenue to start contributing in 3Q related here? All right. Yeah, we signed a revenue engineering contract. I don't want to make any statements around, you know, gap revenue just in terms of recognition until we actually booked that. But we did sign a revenue engineering contract. Okay, thanks, revenue.

John Hopkins: And then just one more, I guess. Can you talk about the competitive landscape today? Not only, you know, on the SMR and nuclear side, but when you're talking to data center customers and others, are you also competing against all their types of technologies? The customers who we're talking with right now, some of them will probably put out an RFP that would involve other technologies, it depends on what they're asking for, but a lot of conversations that we are engaged with right now, it's really about, as I commented before, the ability to bring the BLT model and the BLT model, we've yet to see another developer of the magnitude that we're seeing here with the Tier 1 banks that we're working with coming forward with that similar type model, we hear discussion about it at this point, the competition, as you know, is in a comment before we are going through our power upgrade, but we did get through the licensing process, and as far as I know, no other U.S, based technology, anyway, has completed the design certification application for the Nuclear Regatory Commission. Great, thanks for that color, guys, I'll turn it back.

Ryan Pfingst: Hey, thank you, Ryan.

John Hopkins: Please, I'm gentlemen, that completes the question and answer session, I'll now turn the call back over to new scale CEO, John Hopkins, for closing remarks. Please go ahead. Thank you. Thank you, operator. A new scale, again, was our strategic partner entry 1 energy is executing, we believe a very robust project development pipeline, and a prepared to deliver with industry leading manufacturing readiness, and we believe we're well positioned to commercialize the new scale as a more technology, you know, we're very pleased with our progress and remain steadfastly focused on our goals, and I'd like to thank everybody for participating today, thank you.

Operator: Ladies and gentlemen, that concludes today's call, thank you all for joining, and we[inaudible] for joining us today, thank you all[inaudible]