Q2 2024 Oklo Inc Earnings Call

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Sam Doane: Good day, everyone, and welcome to Oklo's second quarter 2024 Earnings and Business Update Webcast. At this time, all participants are in a listen-only mode. Later, you have the opportunity to ask questions during the question-and-answer session. You may register to ask a question at any time by pressing star one on your telephone keypad. You may withdraw yourself from the key by pressing star two.

Speaker Change: If you need assistance during the conference today, please press star zero.

Operator: Oklo. Stand by, your program is about to begin. If you need assistance during the conference today, please press star zero. Good day, everyone, and welcome to Oklo's second quarter 2024 earnings and business update webinar. At this time, all participants are in a listen-only mode.

Speaker Change: Good day, everyone, and welcome to OCLO's second quarter 2024 Earnings and Business Update webcast.

Operator: Later, you will have the opportunity to ask questions during the question and answer session. You may register to ask a question at any time by pressing star 1 on your telephone key. You may withdraw yourself from the queue by pressing start.

Speaker Change: At this time, all participants are in a listen-only mode. Later you will have the opportunity to ask questions during the question and answer session. You may register to ask a question at any time by pressing star 1 on your telephone keypad. You may withdraw yourself from the queue by pressing star 2.

Operator: Please note this call may be recorded, and what I will be standing by if you should need any assistance.

Operator: Please note this call may be recorded, and I will be standing by if you should need any assistance. It is now my pleasure to turn the conference over to Mr. Sam Doan, Director of Investor Relations. Please go ahead, sir. Thank you, operator. Good day, everyone, and welcome to Oklo's inaugural company update and earnings. Joining us today are Jake DeWitt, co-founder and chief executive officer, and Craig Belmer, chief financial officer. Oklo's Q2 earnings were announced after the market closed today.

Speaker Change: Please note this call may be recorded and I will be standing by if you should need any assistance. It is now my pleasure to turn the conference over to Mr. Sam Doane, Director of Investor Relations. Please go ahead, sir.

Sam Doane: It is now my pleasure to turn the conference over to Mr. Sam Doane, Director of Investor Relations. Please go ahead, sir.

Sam Doane: Thank you, operator. Good day, everyone, and welcome to Oklo's inaugural company update and earnings. Joining us today are Jake Dewitte, co-founder and Chief Executive Officer, and Craig Belmer, Chief Financial Officer.

Sam Doane: Thank you, Operator. Good day, everyone, and welcome to Oklahoma's Inaugural Company Update and Earnings.

Speaker Change: Joining us today are Jake DeWitt, co-founder and chief executive officer, and Craig Bellmer, chief financial officer. Oklahoma's Q2 earnings were announced after market close today. You can find a shareholder letter and supplemental slides on the investor relations page of our website.

Sam Doane: Oklo's Q2 earnings were announced after market closed today. You can find a shareholder letter and supplemental slides on the Investor Relations page of our website.

Sam Doan: You can find a shareholder letter and supplemental slides on the investor relations page of our website. The information discussed during the course of our remarks and the subsequent Q&A session includes four forward-looking statements, which reflect our current views of existing trends and are subject to a variety of risks, assumptions, estimates, uncertainties, and other factors that could cause actual results to differ materially from such statements. You are urged to carefully read the forward-looking statements language in our shareholder letter and supplemental slides.

Sam Doane: The information discussed during the course of our remarks and the subsequent Q&A session includes four looking statements, which reflect our current views of existing trends and are subject to a variety of risks, assumptions, estimates, uncertainties, and other factors that could cause actual results to differ materially from such statements. You are urged to carefully read the forward-looking statements language in our shareholder letter and supplemental slides. You can find a discussion of our risk factors, which could potentially contribute to such differences, in our most recent filings with the SEC.

Speaker Change: The information discussed during the course of our remarks and the subsequent Q&A session includes four looking statements, which reflect our current views of existing trends and are subject to a variety of risks, assumptions, estimates, uncertainties, and other factors that could cause actual results to differ materially from such statements.

Speaker Change: You are urged to carefully read the forward-looking statements language in our shareholder letter and supplemental slides.

Speaker Change: You can find a discussion of our risk factors which could potentially contribute to such differences in our most recent filings with the SEC.

Sam Doane: Oklo assumes no obligation to update these statements, whether as a result of new information, future events, or otherwise, except as required by law.

Sam Doan: You can find a discussion of our risk factors, which could potentially contribute to such differences, in our most recent filings with the SEC. OCLA assumes no obligation to update these statements, whether as a result of new information, future events, or otherwise, except as required by law. I'll now turn the call over to Jake DeWitt, OCLA's co-founder and chief executive officer.

Speaker Change: OCWL assumes no obligation to update these statements, whether as a result of new information, future events, or otherwise, except as required by law. I'll now turn the call over to Jake DeWitt, OCWL's co-founder and chief executive officer. Jake. Thank you. Thank you.

Jacob Dewitte: I'll now turn the call over to Jake Dewitte, co-founder and Chief Executive Officer. Jake. Thanks, Sam, and thank you all for joining us today. I'm excited to share a quarterly update and provide some insight into the progress we've made over the past quarter.

Jake DeWitt: Thanks, Sam. And thank you all for joining us today. I'm excited to share our quarterly update and provide some insight into the progress we've made over the past quarter. By way of introduction and a little bit of background and history on Oklo, the company was born largely out of a view that there was a significant amount of opportunity with advanced nuclear technology. Personally, I grew up in New Mexico; I was born and raised there, and I was born and raised around technology accordingly, and that's where I fell in love with it from a very young age.

Jake DeWitt: Thanks, Sam, and thank you all for joining us today. I'm excited to share our quarterly update and provide some insight into the progress we've made over the past quarter.

Jacob Dewitte: By way of introduction and a little bit of background in history and Oklo, the company was born largely out of a view that there was a significant amount of opportunity with advanced nuclear technologies. Personally, I grew up in New Mexico. I was born and raised there and born and raised around the technology, according to them, and that's where I fell in love with it from a very young age. It was something that felt like it was from science fiction, but it was actually real. The fact that you can take an atom and split it and harness the strong nuclear force and produce 50 million times more energy than a conventional hydrogen.

Jake DeWitt: By way of introduction and a little bit of background and history on Oklo, the company was born largely out of the view that there was a significant amount of opportunity with advanced nuclear technology.

Speaker Change: Personally, I grew up in New Mexico, I was born and raised there, and born and raised around the technology accordingly, and that's where I fell in love with it, from a very young age. It was something that felt like it was from science fiction, but it was actually real.

Jake DeWitt: It was something that felt like it was from science fiction, but it was actually real. The fact that you can take an atom and split it and harness the strong nuclear force and produce 50 million times more energy than a conventional hydrocarbon oxidation reaction is crazy to me. It's always been crazy to me, and it still is today, but it's real.

Speaker Change: The fact that you can take an atom and split it.

Speaker Change: and harness the strong nuclear force and produce 50 million times more energy than a conventional hydrocarbon oxidation reaction is crazy to me. It's always been crazy to me. It still is today.

Jacob Dewitte: It's always been crazy to me. It's still as today, but it's real. This is real technology, and it's been with us for over 80 years at this point. So I knew I wanted to work on it from a young age, and I had a unique set of experiences to be around the technology. In high school, I got hired into the nuclear weapons program and I got a chance to learn a lot about it from that point, and from there got a chance to springboard into a number of different facets to the industry. From academic and government R&D to licensing and procurement on the fuel enrichment side to reactor commercial reactor design and R&D, as well as research projects on the academic side touching conventional large light water reactors as well as next generation advanced reactors.

Jake DeWitt: This is real technology, and it's been with us for over 80 years at this point. So I knew I wanted to work on it from a young age, and I had a unique set of experiences to be around the technology. In high school, I got hired into the nuclear weapons program, and I got a chance to learn a lot about it from that point, and from there, I got a chance to springboard into a number of different facets of the industry, from academic and government R&D to licensing and procurement on the fuel enrichment side to commercial reactor design and R&D.

Speaker Change: but it's real, this is real technology, and it's been with us for over 80 years at this point. So I knew I wanted to work on it from a young age, and I had a unique set of experiences to be around the technology.

Speaker Change: In high school, I got hired into the nuclear weapons program, and I got a chance to learn a lot about it from that point. And from there, I got a chance to springboard into a number of different facets of the industry, from academic and government R&D to licensing and procurement on the fuel enrichment side to commercial reactor design and R&D.

Jake DeWitt: As well as research projects on the academic side touching conventional large light water reactors, as well as next generation advanced reactors along this path, I started to see a clear picture of what I thought was the case when I went into it, which was new technologies. We're going to be what ushered in some of these new areas of growth for nuclear energy, but that was only part of the story. In fact, it was much more oriented to fundamentally needing to do some new things in space. What I observed was an industry that had fairly radically stagnated in how it did things and approached things.

Speaker Change: as well as research projects on the academic side, touching conventional large light water reactors, as well as next-generation advanced reactors. Along this path,

Jacob Dewitte: Along this path, I started to see a clear picture of what I thought was the case when I went into it, which was new technologies. We're going to be what ushered in some of these new areas of growth for nuclear. But that was only part of the story. In fact, it was much more oriented to fundamentally needing to do some new things in the space. What I observed was an industry that had fairly radically stagnated and how it did things and approached things. And there was a ton of opportunity to rethink about how you could approach taking new nuclear technologies to market.

Speaker Change: I started to see a clear picture of what I thought was the case when I went into it, which was new technologies.

Speaker Change: were going to be what ushered in some of these new areas of growth for nuclear. But that was only part of the story. In fact, it was much more oriented

Speaker Change: to fundamentally needing to do some new things in the space. What I observed was an industry that had fairly radically stagnated in how it did things and approached things. And there was a ton of opportunity to rethink about how you could approach taking new nuclear technologies to market.

Jake DeWitt: And there was a ton of opportunity to rethink how you could approach taking new nuclear technologies to market. So that led my co-founder Caroline and I to think about and ultimately start a company centering around three major pillars that we saw were really important to catalyzing significant changes and opportunities in the industry. Those centered around taking first a different approach to the business model, second a different approach around the size of the reactor, and third a different approach to the technology.

Jacob Dewitte: So, that led my co-founder Caroline and I to think about and ultimately start a company sintering around three major pillars that we saw were really important to catalyzing significant changes and opportunities in the industry. Those centered around taking first a different approach on the business model, second a different approach around the size of the reactor, and third a different approach around technology. So, to kind of pick at those things really quickly, first on the business model side, this is a really important differentiation point for us from how things have been done and are done generally speaking across the industry.

Caroline: So that led my co-founder, Caroline, and I to think about and ultimately start a company centering around three major pillars that we saw were really important to catalyzing significant changes and opportunities in the industry.

Caroline: Those centered around taking first a different approach on the business model, second a different approach around the size of the reactor, and third a different approach around technology.

Jake DeWitt: So to kind of pick at those things really quickly, first on the business model side, this is a really important differentiation point for us from how things have been done and are done, generally speaking, across the industry. Typically, the nuclear business model, from a reactor design perspective, has involved designing a reactor to about 80% or so completion, maybe designing the power plant to something between 50 and 80% completion, and then going off and trying to license out that design to your customers, asking them to then take the baton, to then complete the design, to then permit it, to site it, to build it, to own it, and to operate the plant. That puts all of the burden on the customers, and it's a highly frictional process.

Caroline: So to kind of pick at those things really quickly, first on the business model side, this is a really important differentiation point for us from how things have been done and are done, generally speaking, across the industry.

Jacob Dewitte: Typically, the nuclear business model from a reactor design perspective has involved designing a reactor to about 80% or so completion, maybe designing the power plant to something between 50 and 80% completion, and then going off and trying to license out that design to your customers, asking them to then take the baton to then complete the design and permit it to site it to build its own and to operate the plant. That puts all of the burden on the customers, and it's a highly frictional process. We found that people really wanted the wonderful attributes that nuclear power afford.

Caroline: Typically, the nuclear...

Caroline: business model from a reactor design perspective has involved designing a reactor to about 80% or so completion. Maybe designing the power plant to something between 50 and 80% completion.

Caroline: and then going off and trying to license out that design to your customers, asking them to then take the baton.

Caroline: to then complete the design, to then permit it, to site it, to build it, to own it, and to operate the plant. That puts all of the burden on the customers, and it's a highly frictional process.

Jake DeWitt: We saw that people really wanted the wonderful attributes that nuclear power affords, so we decided to take a different approach. So early on, we took the view of asking the question, what would make it easier for people to buy what they really like about nuclear technology? In other words, how could we make it easier for people to buy what they want?

Caroline: We saw that people really wanted

Jacob Dewitte: So we decided to take a different approach. So early on we took a view of asking the question: what would make it easier for people to buy what they really like about nuclear technology. In other words, how could we make it easier for people to buy what they wanted, and so that led us to ultimately follow into an opportunity that built on what renewables had done very well for a long time, which was designed, build, and operate the plant ourselves and then just sell the power through power purchase agreements. That has significant benefits because it's aligned with what customers want. Perhaps invest the most important thing, and we see that reflected in how our customer interest and customer order book has grown and is growing.

Caroline: the wonderful attributes that nuclear power affords.

Caroline: So we decided to take a different approach. So early on, we took.

Speaker Change: of you asking the question, what would make it?

Speaker Change: easier for people to buy what they really like about nuclear technology. In other words,

Jake DeWitt: And so that led us to ultimately follow through on an opportunity that's built on what renewables have done very well for a long time, which is to design, build, and operate the plant ourselves, and then just sell the power through a power purchase agreement. That has significant benefits because it's aligned with what customers want. Perhaps that's the most important thing.

Speaker Change: How could we make it easier for people to buy what they wanted? And so that led us to ultimately follow into an opportunity that's built on what renewables had done very well for a long time, which was to design, build, and operate the plant ourselves and then just sell the power through power purchase agreements.

Speaker Change: That has significant benefits because it's aligned with what customers want, perhaps that's the most important thing, and we see that reflected in how our customer interest and customer order book has grown and is growing. Additionally, we also see reflected in the significant benefits that come to the company with this recurring revenue model.

Jake DeWitt: And we see that reflected in how our customer interest and customer order book has grown and is growing. Additionally, we also see that reflected in the significant benefits that come to the company with this kind of recurring revenue model. And so those things are significantly enabling and accelerative to us as we think about how the future of nuclear needs to ultimately evolve. Additionally, we wanted to take a different angle on the side.

Jacob Dewitte: Additionally, we also see reflected in the significant benefits that come to the company with this kind of recurring revenue model. And so those things are significantly enabling an accelerated to us as we think about how the future of nuclear needs to ultimately evolve.

Speaker Change: And so those things are significantly enabling and accelerative to us as we think about how the future of nuclear needs to ultimately evolve.

Jacob Dewitte: Additionally, we wanted to take a different angle on size. We didn't want to start at bigger size ranges like a few hundred megawatts or even a big a lot like today's plant. Instead, we wanted to start as small as we reasonably could so that we could have a technology that could service a market of reasonable size and grow into. So not so small that it's kind of like a toy or niche system, like a few hundred kilowatts or so, but actually big enough so that you could service a large market and grow into it. So we found a sweet spot at about 15 megawatt, and that's a lot of us to change the paradigm from needing billions of dollars to capitalize the plant and get it operational to only needing a few hundred million dollars.

Jake DeWitt: We didn't want to start at bigger size ranges, like a few hundred megawatts or even a gigawatt, like today's plant. Instead, we wanted to start as small as we reasonably could, so that we could have a technology that could service a market of reasonable size and grow into. So not so small that it's kind of like a toy or a niche system, like a few hundred kilowatts or so, but actually big enough so that you could service a large market and grow into it.

Speaker Change: Additionally, we wanted to take a different angle on size.

Speaker Change: We didn't want to start at bigger size ranges like a few hundred megawatts or even a gigawatt like today's plan

Speaker Change: Instead, we wanted to start as small as we reasonably could, so that we could have a technology that could service a market of reasonable size and grow into. So not so small that it's kind of like a toy or niche system, like a few hundred kilowatts or so, but actually big enough so that you could service a large market and grow into it.

Jake DeWitt: So we found a sweet spot at about 15 megawatts, and that's allowed us to change the paradigm from needing billions of dollars to capitalize a plant and get it operational to only needing a few hundred million dollars. So that's allowed us to significantly change the paradigm of how you take new technologies to market. And finally, we took the approach of pursuing what we see as the best-in-class economic potential from a technological perspective. Specifically, we're working on what's called liquid-sodium-cooled fast reactor technology. That means we use liquid sodium as the coolant.

Speaker Change: So, we found a sweet spot at about 15 megawatts, and that's allowed us to change the paradigm from needing billions of dollars to capitalize the plant and get it operational to only needing a few hundred million dollars. So, that's allowed us to significantly change the paradigm to how you take new technologies to market.

Jacob Dewitte: So that's a lot of just to significantly change the paradigm to how you take new technologies to market.

Jacob Dewitte: And finally, we took the approach on pursuing what we see as the best-in-class economic potential from a technological perspective. Specifically, we're working on what's called a liquid sodium-cooled fast reactor technology. That means we use liquid sodium as a coolant. We do that because it's technology that has a huge amount of potential with a really rich history of development behind it. As a society, we built and operated more than 25 of these plants around the world. We've gained over 400 combined reactor years of operational experience. We've learned what works, what doesn't work, and we know how to take the technology ultimately into the market.

Speaker Change: And finally, we took the approach on pursuing what we see as the best in class economic potential from a technological perspective.

Speaker Change: Specifically, we're working on what's called a liquid-sodium-cooled fast reactor technology. That means we use liquid sodium as the coolant. We do that because it's a technology that has a huge amount of potential with a really rich history of development behind it.

Jake DeWitt: We do that because it's a technology that has a huge amount of potential and a really rich history of development. As a society, we've built and operated more than 25 of these plants around the world. We've gained over 400 combined reactor years of operational experience. We've learned what works, and what doesn't work, and we know how to take this technology ultimately into the market. In the U.S., we notably pursued a pathway of ultimately developing and demonstrating this technology in two meaningful ways, so in two plants. One was a plant in Washington state called the Fast Flex Test Facility, and the other was a plant in Idaho called EBR2.

Speaker Change: As a society, we've built and operated more than 25 of these plants around the world. We've gained over 400 combined reactor years of operational experience. We've learned what works, what doesn't work, and we know how to take this technology ultimately into the market.

Jacob Dewitte: In the US, we notably pursued a pathway of ultimately developing and demonstrating this technology in two meaningful ways, so in two plants. One was a plant in Washington State called the FastBooks Test Facility, and the other was a plant in Idaho called EBR2. At Oakville, we must directly build our lineage and legacy of the EBR2 plant, which was just under 20 megawatt fast reactor that sold power to the grid, ran for about 30 years, demonstrated to peer your operating characteristic. to its temporary commercial light water plants of the plant, while also demonstrating the amazing features it had from an inherent and passive safety perspective, like in a Fort Plant design simplification and therefore cost reduction as well as the ability to recycle fuel.

Speaker Change: In the U.S., we notably pursued a pathway of ultimately developing and demonstrating this technology in two meaningful ways, so in two plants. One was a plant in Washington State called the Fast Flux Test Facility, and the other was a plant in Idaho called EBR2.

Jake DeWitt: At Oklo, we most directly build our lineage and legacy on the EBR2 plant, which was a just under 20 megawatt fast reactor that sold power to the grid, ran for about 30 years, demonstrated superior operating characteristics to its temporary commercial light water plant at the time, while also demonstrating the amazing features it had from an inherent and passive safety perspective that could afford plant design simplification and therefore cost reduction, as well as the ability to recycle fuel. Altogether, these are significant enabling benefits. We like sodium because it operates at high temperatures without being pressurized, it's compatible with common alloys, and it allows us to tap into existing value and supply chains.

Speaker Change: At Oakville, we most directly build our lineage and legacy off the EBR2 plant, which was a just under 20-megawatt fast reactor that sold power to the grid, ran for about 30 years, demonstrated superior operating characteristics.

Speaker Change: to its temporary commercial light water plants at the time, while also demonstrating the amazing features it had from an inherent and passive safety perspective that can afford plant design simplification, and therefore cost reduction, as well as the ability to recycle fuel. Altogether, these are significant enabling benefits.

Jacob Dewitte: All together, these are significant enabling benefits. We like sodium because it operates at high temperatures without being pressurized. It's compatible with common alloys. It allows us to tap into existing value and supply chains. And from there, we have the ability to leverage the technology that ultimately has best-to-breed economic potential in our eyes. Not only are we building on a mature technology base that's behind it, the Nuclear Regulatory Commission has had experience with sodium fast reactors. We also have peers in this space that are developing sodium fast reactors, like TerraPower, who's developing a sodium fast reactor but at a larger size.

Speaker Change: We like sodium because it operates at high temperatures without being pressurized, it's compatible with common alloys, it allows us to tap into existing value and supply chains.

Jake DeWitt: And from there, we have the ability to leverage a technology that ultimately has best-of-breed economic potential in our eyes. Not only are we building on a mature technology base that's behind it, but the Nuclear Regulatory Commission has experience with sodium fast reactors. We also have peers in this space that are developing sodium fast reactors, like TerraPower, who's developing a sodium fast reactor, but at a larger size.

Speaker Change: And from there, we have the ability to leverage the technology.

Speaker Change: that ultimately has best-of-breed economic potential in our eyes.

Speaker Change: Not only are we building on a mature technology base that's behind it.

Speaker Change: The Nuclear Regulatory Commission has had experience with sodium cross-reactors.

Speaker Change: We also have peers in the space that are developing sodium fast reactors, like TerraPower, who's developing a sodium fast reactor but at a larger size. The progress made by them, the progress made by us, all gives us a pretty clear line of sight for how the NRC can review and evaluate sodium fast reactor technologies.

Jake DeWitt: The progress made by them, and the progress made by us, all gives us a pretty clear line of sight for how the NRC can review and evaluate sodium fast reactor technologies, and it has a long history of technology development and technological maturity behind it. A fun little fact is that most people often talk about advanced reactors or Gen 4 reactors as going to be, you know, milestones or the first one to do some milestone coming up.

Jacob Dewitte: The progress made by them, the progress made by us all, gives us a pretty clear line of sight for how the NRC can review and evaluate sodium fast reactor technologies. And it has a long history, technology development, and technology maturity behind it.

Speaker Change: And it has a long history.

Jacob Dewitte: A fun little fact is most people often talk about advanced reactors or Gen4 reactors that's going to be the milestones of the first one to do some milestone coming up. The reality is the first reactor that actually produced usable electricity in the United States was a liquid metal cold fast reactor named EBR-1. It was the earlier predecessor of EBR-2. And it first produced usable electric power back in 1951.

Speaker Change: technology development and technology maturity behind it.

Speaker Change: A fun little fact is most people often talk about advanced reactors or Gen 4 reactors as going to be milestones, or the first one to do some milestone coming up.

Jake DeWitt: The reality is, the first reactor that actually produced usable electricity in the United States was a liquid metal cooled fast reactor named EBR-1. It was an earlier predecessor, EBR-2, and it first produced usable electric power back in 1951.

Speaker Change: The reality is, the first reactor that actually produced usable electricity in the United States was a liquid metal cooled fast reactor named EBR-1. It was the earlier predecessor, EBR-2, and it first produced usable electric power back in 1951.

Jake DeWitt: So we're ultimately at Oklo very excited to build on the legacy of this technology and stand on the shoulders of the giants who came before us that developed it to the point where we can now move this technology forward. So, specifically, we're implementing this in what we refer to as our product offering, the Aurora. The Aurora product line is designed to scale to 15 and 50 megawatt offerings today, and we're also evaluating a 100 megawatt or larger offering that we're developing. The core focus of the business at this point is developing the 15 and 50 megawatt plants. They both look very similar.

Jacob Dewitte: So we're ultimately at Oakville, very excited to build up on the legacy of this technology and stand on the shoulders of the giants who came before us that developed it to the spot where we can now move this technology forward. So specifically we're implementing this, and what we refer to is our product offering of the Aurora. The Aurora product line is designed to scale to 15 and 50 megawatt offerings today. And we're also evaluating a hundred megawatts or larger offering that we're developing. The core focus of the business at this point is developing the 15 and 50 megawatt plants.

Speaker Change: So, we're ultimately at Oak Grove very excited to build up on the legacy of this technology and stand on the shoulders of the giants who came before us that developed it to the spot where we can now move this technology forward.

Speaker Change: So, specifically, we're implementing this in what we refer to as our product offering of the Aurora. The Aurora product line is designed to scale to 15 and 50-megawatt offerings today, and we're also evaluating a 100-megawatt or larger offering that we're developing.

Jake DeWitt: They share the same fuel types and materials and coolant types, just slightly different sizes and packaging. And we do that because we've been focused on being responsive to where customer interest and demand have been, and that's led us to these two size points to start. This technology is basically a way to make heat, so when you split an atom, you're ultimately just producing heat that then conducts through the fuel, through the structure, and then is convectively removed by the coolant.

Jacob Dewitte: They look very similar. They share the same fuel types and materials and coolant types, just slightly different sizes and packaging. And we do that because we've been focused on being responsive to where customer interest in the band has been. And that led us to these two size points to start. This technology is basically a way to make heat. So when you split an atom, you're ultimately just producing heat that then conducts through the fuel, through the structure, and then is conductively removed by the coolant. So we use sodium as that way to move the coolant from the fuel, then up to ultimately boil water.

Speaker Change: The core focus of the business at this point is developing the 15 and 50 megawatt plant.

Speaker Change: They look very similar, they share the same fuel types and materials and coolant types, just slightly different sizes and packaging. And we do that because we've been focused on being responsive to where customer interest and demand has been. And that's led us to these.

Speaker Change: two size points to start. This technology is basically a way to make heat. So when you split an atom, you're ultimately just producing heat that then conducts through the fuel, through the structure, and then is convectively removed by the coolant.

Jake DeWitt: So we use sodium in that way to move the coolant from the fuel then up to ultimately boil water. You can also use this heat product directly, which often opens the door to industrial heat processes, and we operate in a temperature range that allows us to service the vast majority of heat markets that are available today. It also has some interesting connection points for advanced cooling technology, which sounds funny, but thermal-driven cooling technology has a lot of promise, especially for scaling data centers.

Speaker Change: So we use sodium as that way to move the coolant from the fuel then up to ultimately boil water.

Jacob Dewitte: You can also use this heat product directly, which often opens the door for industrial heat processes, and we operate in a temperature range which allows us to serve as the vast majority of heat markets that are available today. It also has some interesting connection points for advanced cooling technology, which I know sounds funny, but thermal driven cooling technology has a lot of promise, especially for scaling data centers. Technology like Azure from Chilling has some significant upside in the data center markets, and we're pretty excited about how that can integrate with our system. Aurora powerhouses are designed to maximize the use of materials, parts, and labor from non-nuclear supply chains.

Speaker Change: You can also use this heat product directly.

Speaker Change: which often opens the door for industrial heat processes, and we operate in a temperature range which allows us to service the vast majority of heat markets that are available today.

Speaker Change: It also has some interesting connection points for advanced cooling technologies, which I know sounds funny, but thermal-driven cooling technology has a lot of promise, especially for scaling data centers. Technologies like absorption shilling has some significant upside in the data center markets, and we're pretty excited about how that can integrate with our system.

Jake DeWitt: Technologies like absorption chilling have some significant upside in the data center markets, and we're pretty excited about how that can integrate with our system. Aurora powerhouses are designed to maximize the use of materials, parts, and labor from non-nuclear supply chains. We develop and design this technology in a way to take advantage of these benefits because sodium gives us the ability to operate at high temperatures without being pressurized. It's compatible with commonly available alloys like stainless steel alloys such as 316L and 304L in form factors that are similar or identical to components available in other industries such as oil and gas or food and beverage or chemical.

Speaker Change: Aurora powerhouses are designed to maximize the use of materials, parts, and labor from non-nuclear supply chains.

Jacob Dewitte: We develop and design this technology in a way to take advantage of these benefits because sodium gives us the ability to operate at high temperatures without being pressurized. It's compatible with commonly available alloys like stainless steel alloys, such as 316L and 304L, informed factors that are similar or identical to components available in other industries such as oil and gas, or food and beverage, or chemical. That's great because we can then tap into existing value and supply chains to ultimately deliver these. The ability to utilize existing supply chain components allows us to leverage non-nuclear supply chains, which operate at much higher volumes and offer more diverse options that come at lower cost.

Speaker Change: We develop and design this technology in a way to take advantage of these benefits.

Speaker Change: because sodium gives us the ability to operate at high temperatures without being pressurized. It's compatible with commonly available alloys like stainless steel alloys such as 316L and 304L in form factors that are similar or identical to components available in other industries such as oil and gas or food and beverage or chemical.

Jake DeWitt: That's great because we can then tap into existing value and supply chains to ultimately deliver these. The ability to utilize existing supply chain components allows us to leverage non-nuclear supply chains, which operate at much higher volumes and offer more diverse options that come at lower costs. This approach significantly enhances the economic scalability of our technology, and that's one of the reasons we're so excited about its economic potential. By leveraging the energy density of fission, Oklahoma's rural powerhouses have immense environmental benefits.

Speaker Change: That's great because we can then tap into existing value and supply chains to ultimately deliver these systems.

Speaker Change: The ability to utilize existing supply chain components allows us to leverage non-nuclear supply chains, which operate at much higher volumes, and offer more diverse options that come at lower costs. This approach significantly enhances the economic scalability of our technology, and that's one of the reasons we're so excited about its economic potential.

Jacob Dewitte: This approach significantly enhances the economic scalability of our technology. And that's one of the reasons we're so excited about is economic potential. And that was a big focus of ours.

Speaker Change: By leveraging the energy density of fission, Oklahoma's aurora powerhouses have immense environmental benefits. It creates a pretty favorable technology platform.

Jake DeWitt: It creates a pretty favorable technology platform that looks quite a bit different than what nuclear has been used to looking like, if you will, and that was a big focus of ours. We wanted to focus on something that has aesthetic appeal, while also offering something that has functional benefits from a constructability perspective. So because of those benefits, the nuclear sector is receiving unprecedented support from all levels of government. This quarter has seen some pretty exciting developments, including the signing of the ADVANCE Act.

Speaker Change: that looks quite a bit different than what nuclear has been used to looking like, if you will, and that was a big focus of ours. We wanted to focus on something that has aesthetic appeal while also offering something that has functional benefits from a constructability perspective.

Jacob Dewitte: We wanted to focus on something that has aesthetic appeal while also offering something that has functional benefits from a constructability perspective. So, because of those benefits, the nuclear sector is receiving unprecedented support from all levels of government. This quarter has seen some pretty exciting developments, including the signing of the advance acts, but this builds on years of significant support at a federal, at a state and an international level. One of the big benefits legislatively for nuclear, frankly one of the biggest in the last few decades, was the passage in signing of the Advance Act. And that just happened within the last few months.

Speaker Change: So because of those benefits, the nuclear sector is receiving unprecedented support from all levels of government. This quarter has seen some pretty exciting developments, including the signing of the ADVANCE Act. So this builds on years of significant support at a federal, at a state, and an international level.

Jake DeWitt: But this builds on years of significant support at a federal, at a state, and an international level. One of the big benefits legislatively for nuclear energy, frankly, one of the biggest in the last few decades, was the passage and signing of the ADVANCE Act, and that just happened within the last few months. This is a significant piece of legislation that drives forward support for Congress and also support from this administration that has clearly been in favor of nuclear energy, propelling and advancing nuclear technology.

Speaker Change: One of the big benefits legislatively for nuclear, frankly, one of the biggest in the last few decades, was the passage and signing of the ADVANCE Act, and that just happened within the last few months. This is a significant piece of legislation that drives forward support for Congress and also support from this administration that has clearly been in favor of nuclear.

Jacob Dewitte: This is a significant piece of legislation that drives forward support for Congress and also support from this administration that has clearly been in favor of propelling and advancing nuclear technology. It brings forward several major legislative developments and policy support levels to basically support and scale the deployment of nuclear. This includes enhancing and modernizing NRC licensing and review timelines, as well as fee structures. It also supports driving forward accelerated deployment models, creating opportunities to enhance demand signals and demand indicators from the government, as well as aligning the NRC mission towards more successful and efficient scaling of nuclear technology.

Jake DeWitt: It brings forward several major legislative developments and policy support levels to basically support and scale the deployment of nuclear power. This includes enhancing and modernizing NRC licensing and review timelines, as well as fee structures. It also supports driving forward accelerated deployment models.

Speaker Change: propelling and advancing nuclear technology.

Speaker Change: It brings forward several major legislative developments and policy support levels to basically support and scale the deployment of nuclear. This includes enhancing and modernizing NRC licensing and review timelines as well as fee structures. It also supports driving forward accelerated deployment models.

Jake DeWitt: Creating opportunities to enhance demand signals and demand indicators from the government, as well as aligning the NRC mission towards more successful and efficient scaling of nuclear technology. There's a lot more we can talk about with the advance the act does, and we will continue to do so, but we're quite excited about what this positions the industry to be able to actually do and drive forward the deployment of new technologies going forward. Oklahoma has one of the most extensive regulatory engagement histories with the Nuclear Regulatory Commission, or the NRC.

Speaker Change: creating opportunities to enhance demand signals and demand indicators from the government, as well as aligning the NRC mission towards more successful and efficient scaling of nuclear technology.

Jacob Dewitte: There's a lot more we can talk about with the Advance Act does and we will continue to do so, but we're quite excited about what this positions the industry to be able to actually do and drive forward the deployment of new technologies going forward.

Speaker Change: There's a lot more we can talk about with the advance that ACT does and we will continue to do so. But we're quite excited about what this positions the industry to be able to actually do and drive forward the deployment of new technologies going forward.

Jacob Dewitte: Oh cool, it's one of the most extensive regulatory engagement histories with the Nuclear Regulatory Commission or the NRC. Accordingly, we find ourselves very well positioned to benefit as an early mover with the regulatory side. We've been the longest engaged non light water reactor company with the NRC, sitting back to starting to work with them back in 2016. We fit several significant milestones along the path there and are positioning ourselves to do a pre-application readiness assessment later this year, spanning into submitting our next application early in the next year. Followed by subsequent applications thereafter. Oak close integrated build own and operate business model and able to integrate it and streamline licensing pathway that's a bit different from what the industry does otherwise.

Speaker Change: Oklahoma is one of the most extensive regulatory engagement histories with the Nuclear Regulatory Commission, or the NRC. Accordingly, we find ourselves very well positioned to benefit

Jake DeWitt: Accordingly, we find ourselves very well positioned to benefit as an early mover on the regulatory side. We've been the longest engaged non-light water reactor company with the NRC, dating back to starting to work with them back in 2016. We've hit several significant milestones along the path there and are positioning ourselves to do a pre-application readiness assessment later this year, leading to submitting our next application early in the next year, followed by subsequent applications thereafter. Oklo's integrated Build, Own, and Operate business model enables an integrated and streamlined licensing pathway that's a bit different from what the industry does otherwise.

Speaker Change: as an early mover with the regulatory side.

Speaker Change: We've been the longest engaged non-light water reactor company with the NRC dating back to starting to work with them back in 2016.

Speaker Change: We've had several significant milestones along the path there and are positioning ourselves to do a pre-application readiness assessment later this year, spanning into submitting our next application early in the next year, followed by subsequent applications thereafter.

Speaker Change: OPA's integrated build, own, and operate business model enables an integrated and streamlined licensing pathway that's a bit different from what the industry does otherwise. An important feature for our business model as well as our licensing plan is taking advantage of a regulatory approach that allows us to do all the licensing we need to do to get a commercial operating license in one step.

Jake DeWitt: An important feature of our business model, as well as our licensing plan, is taking advantage of a regulatory approach that allows us to do all the licensing we need to do to get a commercial operating license in one step. In other words, you can take a lot of steps to get to what you ultimately need, which is a commercial operating license. And some of our peers are taking a process where they go apply for and get a construction permit.

Jacob Dewitte: An important feature for our business model as well as our licensing plan is taking advantage of a regulatory approach that allows us to do all the licensing we need to do to get a commercial operating license in one step. In other words, you can take a lot of steps to get to what you ultimately need, which is a commercial operating license. And some of her peers are taking a process where they go apply and get a construction permit. After that, they can go build the plan and then apply to get an operating license, after which, if they get the operating license, they can commercially operate the plan.

Speaker Change: In other words, you can take a lot of steps to get to what you ultimately need, which is a commercial operating license, and some of our peers are taking a process where they go apply and get a construction permit. After that, they can go build the plant and then apply to get an operating license, after which, if they get the operating license, they can then commercially operate the plant. Others are taking an approach where, instead of being the owner-operator, they're designing the plants to get a design certification or something similar to that, like a standard design approval. For more information, visit www.fema.gov

Jake DeWitt: After that, they can go build the plant and then apply to get an operating license, after which, if they get the operating license, they can then commercially operate the plant. Others are taking an approach where, instead of being the owner-operator, they're designing the plants to get a design certification or something similar to that, like a standard design approval.

Jacob Dewitte: Others are taking an approach where, instead of being the owner operator, they're designing the plans to get a design certification or something similar to that, like a standard design approval. Then after that, going out and then working with their potential customers who then need to go through the actual licensing process to get a commercial operating license themselves. So that means their customers still have to go get a commercial operating license even if a reactor design company has a design certification because that's only a piece of what you ultimately need to get a commercial license and it's not needed to get a commercial license.

Jake DeWitt: Then, after that, going out and working with potential customers, who then need to go through the actual licensing process to get a commercial operating license themselves. So that means their customers still have to get a commercial operating license, even if a reactor design company has a design certification, because that's only a piece of what you ultimately need to get a commercial license, and it's not needed to get a commercial license. So, The design certification is not regulatory approval, but it's a step towards ultimately submitting an application that you're asking your customers to do to get that license. For us, we don't do any of that.

Speaker Change: Then after that, going out and then working with their potential customers who then need to go through the actual licensing process to get a commercial operating license themselves.

Speaker Change: So, that means their customers still have to go get a commercial operating license even if a reactor design company has a design certification, because that's only a piece of what you ultimately need to get a commercial license, and it's not needed to get a commercial license.

Jacob Dewitte: So the design certification is not regulatory approval, but it's a step towards ultimately submitting an application that you're asking your customers to do to get that license. For us, we don't do any of that. We just go straight to the combined license approach. This is larger because of what we're doing on a business model side. We're owning these plans. We're not just trying to sell the designs or license off the design. So that means you go straight into licensing and allows us to build an operator plans which then says to stage for us to then pursue this one step licensing process and have the benefits of repeatability that this framework allows.

Speaker Change: So...

Speaker Change: A design certification is not regulatory approval, but it's a step towards ultimately submitting an application that you're asking your customers to do to get that license. For us, we don't do any of that. We just go straight to the combined license approach. This is largely because of what we're doing on a business model side. We're owning these plants. We're not just trying to sell the designs or license off the design.

Jake DeWitt: We just go straight to the combined license approach. This is largely because of what we're doing on the business model side. We're owning these plants. We're not just trying to sell the designs or license them out. So that means we go straight into licensing and allows us to build and operate our plans, which then sets the stage for us to then pursue this one-step licensing process and have the benefits of repeatability that this framework allows.

Speaker Change: So, that means we go straight into licensing and allows us to build an operator plan, which then sets the stage for us to then pursue this one-step licensing process and have the benefits of repeatability that this framework allows.

Jacob Dewitte: One really important thing that's been developed in the past when they were developing these regulatory frameworks was the ability to subsequently license additional plans and then expedited in a more efficient manner. What that means is that after you've licensed your first plan, you get a combined license for that first plan that becomes your reference license. Then every license you submit thereafter becomes a subsequent license. Another term is your reference license becomes your reference combined license and then your subsequent license because you're subsequent combined licenses. That benefits us because those subsequent reviews on the subsequent license applications are only focusing on the things that have changed from the reference application.

Jake DeWitt: One really important thing that was developed in the past when they were developing these regulatory frameworks was the ability to subsequently license additional plants in an expedited and more efficient manner. What that means is that after you license your first plant, you get a combined license for that first plant. That becomes your reference license.

Speaker Change: One really important thing that's been developed in the past when they were developing these regulatory frameworks was the ability to subsequently license additional plants in an expedited and more efficient manner.

Jake DeWitt: Then every license you submit thereafter becomes a subsequent license, and under other terms, your reference license becomes your reference combined license, and then your subsequent license becomes your subsequent combined license. That benefits us because the subsequent reviews on the subsequent license applications are only focusing on the things that have changed from the reference application. That has significant benefits in terms of accelerating and reducing review timelines while also allowing us to scale rapidly and to follow on plan.

Speaker Change: What that means is that after you've licensed your first plant, you get a combined license for that first plant, that becomes your reference license. Then every license you submit thereafter becomes a subsequent license.

Speaker Change: In other terms, your reference license becomes your reference combined license, and then your subsequent license becomes your subsequent combined license.

Speaker Change: That benefits us because the subsequent reviews on the subsequent license applications are only focusing on the things that have changed from the reference application. That has significant benefits in terms of accelerating and reducing review timelines while also allowing us to scale rapidly into follow-on plans.

Jacob Dewitte: That has significant benefits in terms of accelerating and reducing review timelines, while also allowing us to scale rapidly into follow-on plans.

Jacob Dewitte: So on the design side, our product roadmap includes three reactor sizes to meet customer needs based on what we're seeing in the customer market and that span megawatt to gigawatt scale deployments. What's really about this is it also positions us to have the benefits of spanning across a bunch of different markets according to these size offerings. We've long known that there's not a one size fits all divine in the space. Instead, we wanted to start as small as we could for the aforementioned benefits, but then have a pathway to scale using the same technology. So we are currently offering a 15 megawatt and a 50 megawatt plan and are also developing a hundred to 200 megawatt plan as well.

Jake DeWitt: So on the design side, our product roadmap includes three reactor sizes to meet customer needs based on what we're seeing in the customer market, and that spans megawatt to gigawatt scale deployment. What's great about this is it also positions us to have the benefit of spanning across a bunch of different markets. As for the size offerings, we've long known that there's not a one-size-fits-all design in this space.

Speaker Change: So, on the design side, our product roadmap includes three reactor sizes to meet customer needs based on what we're seeing in the customer market, and that spans megawatt to gigawatt scale deployments.

Speaker Change: What's great about this is it also positions us to have the benefit of spanning across a bunch of different markets.

Jake DeWitt: Instead, we wanted to start as small as we could for the aforementioned benefits, but then have a pathway to scale using the same technology. So we are currently offering a 15 megawatt and a 50 megawatt plant, and are also developing a 100 to 200 megawatt plant as well. These are all very similar looking technologies as we scale up. It's just slightly bigger from a physical footprint.

Speaker Change: according to these size offerings. We've long known that there's not a one-size-fits-all design in this space. Instead, we wanted to start as small as we could for the aforementioned benefits, but then have a pathway to scale using the same technology. So we are currently offering a 15 megawatt and a 50 megawatt plant.

Jacob Dewitte: These are all very similar looking technologies as we scale up. It is just slightly bigger from a physical footprint. We are targeting 15 and 50 megawatt ranges to start because, based on the feedback we've seen from our customers, that's a really great size range to be in to meet their needs. The numbers are very large around the opportunities to service some of these customers in these markets, especially with what our business model is, which is designing and owning and operating these plants and selling power to the direct customers. So when we talk about providing power directly to energy users, these sizes offer a good entry point to a number of different markets.

Speaker Change: and are also developing a 100 to 200 megawatt plant as well. These are all very similar looking technologies as we scale up.

Jake DeWitt: We are targeting 15 and 50 megawatt ranges to start because, based on the feedback we've seen from our customers, that's a really great size range to be in to meet their needs. The numbers are very large around the opportunities to service some of these customers in these markets, especially with what our business model is, which is designing, owning, and operating these plants and selling power to direct customers. So when we talk about providing power directly to energy users, these sizes offer a good entry point to a number of different markets, and these projects can be quite large when they are aggregated together.

Speaker Change: It's just slightly bigger from a physical footprint.

Speaker Change: We are targeting 15 and 50 megawatt ranges to start because based on the feedback we've seen from our customers, that's a really great size range to be in to meet their needs.

Speaker Change: The numbers are very large around the opportunities to service some of these customers in these markets, especially with what our business model is, which is designing and owning and operating these plants and selling power to the direct customers.

Speaker Change: So, when we talk about providing power directly to energy users, these sizes offer a good entry point to a number of different markets, and these projects can be quite large when they aggregate together.

Jacob Dewitte: And these projects can be quite large when they aggregate together.

Jacob Dewitte: The reality too is that data centers are making up a vast majority of the market opportunity we see in front of us. While the numbers are very large around those opportunities, especially around the larger scale AI purpose data centers, these projects are not being deployed all at once at a one gigawatt or multi gigawatt scale; instead, they're ramping into it. It's phased growth through development process. When you're talking about these facilities as they grow up, they also need to have the ability to have power that meets their needs; that which, in other words, is something that is always on with a high availability and high reliability.

Jake DeWitt: The reality, too, is that data centers are making up a vast majority of the market opportunity we see in front of us. And while the numbers are very large around those opportunities, especially around, you know, the larger-scale AI purpose data centers, these projects are not being deployed all at once at a one gigawatt or multi-gigawatt scale. Instead, they're ramping into it.

Speaker Change: The reality, too, is that data centers are making up a vast majority of the market opportunity we see in front of us. While the numbers are very large around those opportunities,

Speaker Change: especially around the larger scale AI purpose data centers. These projects are not being deployed all at once at a one gigawatt or multi-gigawatt scale. Instead, they're ramping into it. It's phased growth through development process.

Jake DeWitt: It's a phased growth through development process. And when you're talking about these facilities as they grow up, they also need to have the ability to have more power. Which is a really exciting thing for us; given our size, we're uniquely positioned to do it, but it also allows us to grow with them as they build out their overall footprints and meet their customer needs and, therefore, need more energy as that goes forward.

Speaker Change: And when you're talking about these facilities as they grow up, they also need to have the ability to.

Speaker Change: have power that meets their need set, which in other words is something that is always on and with a high availability and high reliability. That means they need to have something that offers them that kind of in plus one generation footprint so that they are more or less confident to get the energy when they need it and how they need it.

Jacob Dewitte: That means they need to have something that offers them that kind of in plus one generation footprint so that they are more or less confident to get the energy when they need it and how they need it. In other words, you're going to build more power capacity as you ramp up with your customers. which is a really exciting thing for us given our size where you need to be positioned to do it, but it also allows us to grow with them as they build out their overall footprints and they need their customer needs and therefore need more energy that goes forward.

Speaker Change: In other words, you're going to build more power capacity as you ramp up with your customers.

Speaker Change: which is a really exciting thing for us given our size, we're uniquely positioned to do it, but it also allows us to grow with them as they build out their overall footprints and they meet their customer needs and therefore need more energy as that goes forward.

Jacob Dewitte: The important thing about this too, just to emphasize this one more time, is that we can build up to match where our customers are going as they grow their order book and their demand in a phased way. While also building an extra reactor that is providing power on standby for them, when they need it because, at the end of the day, we have to take some of our plants offline every once in a while to service them or refuel them. That means we can deliver that full freight power solution for our customers and do so in a way that the economic will be attractive because we're not too large to do so.

Jake DeWitt: The important thing about this, too, just to emphasize this one more time, is that we can build up to match where our customers are going as they grow their order book and their demand in a phased way, while also building an extra reactor that is providing power on standby for them when they need it. Because at the end of the day, we have to take some of our plants offline every once in a while to service them or refuel them.

Speaker Change: The important thing about this, too, just to emphasize this one more time.

Speaker Change: Is that we can build up to match where our customers are going as they grow their order book and their demand?

Speaker Change: in a phased way while also building

Speaker Change: extra reactor that is providing power on standby for them when they need it because at the end of the day we have to take some of our plants offline every once in a while to service them or refuel them.

Jake DeWitt: That means we can deliver that full freight power solution for our customers and do so in a way that's economically attractive because we're not too large to do so. So our size is really in that sweet spot that matches very well with both the growth and the N plus one requirements that our data center customers have. And to dive a bit deeper on the data center side, one of the things that stood out to us in our engagement with potential customers was learning about what their energy needs really are.

Speaker Change: That means we can deliver that full freight power solution for our customers and do so in a way that's economically attractive because we're not too large to do so. So, our size is really in that sweet spot that matches very well with both the growth and the N plus one requirements that our data center customers have.

Jacob Dewitte: So our size is really in that sweet spot that matches very well with both the growth and the in-plus-one requirements that our data center customers have.

Jacob Dewitte: And to dive a bit deeper on the data center side, one of the things that stood out to us in our engagement with potential customers is learning about what their energy needs really look like. We're finding that a data center or data center campus is often made up of a number of data halls, as we like to call them. Those data halls are what are built out, kind of in building block fashion, to fill out an ultimate facility or campus. We're finding that most of the data halls today that are being planned are planned to consume between 35 and maybe 50 megawatts each.

Speaker Change: And to dive a bit deeper on the data center side, one of the things that stood out to us in our engagement with potential customers is learning about what their energy needs really look like. We're finding that a data center or data center campus is often made up of a number of data halls, as we like to call them.

Jake DeWitt: We're finding that, you know, a data center, a data center campus is often made up of a number of data halls, as we like to call them. Those data halls are what are built out kind of in a building block fashion to fill out an ultimate facility or a campus.

Speaker Change: Those data halls are what are built out kind of in building block fashion to fill out an ultimate facility or campus.

Jake DeWitt: We're finding that most of the data halls today that are being planned are planned to consume between 35 and maybe 50 megawatts each. So each company has its different architectures and different approaches, but we're seeing that there's a significant amount of upside and opportunity around where those data halls are. We also see some development that's on the smaller size, power chunks between 10 and 20 megawatts. So at the end of the day, that gives us a really good position in the market to service a different range of power levels.

Speaker Change: We're finding that most of the data hauled today that are being planned.

Jacob Dewitte: So each company has a different architectures and different approaches, but we're seeing that there's a significant amount of upside and opportunity around where those data halls are. We also see some development that's on the smaller size; power times between 10 and 20 megawatts. So, at the end of the day, that gives us a really good position in the market to service a different range of power levels.

Speaker Change: plan to consume between 35 and maybe 50 megawatts each. So each company has their different architectures and different approaches, but we're seeing that there's a significant amount of upside and opportunity around where those data halls are.

Speaker Change: We also see some development that's on the smaller size, power chunks between 10 and 20 megawatts. So, at the end of the day, that gives us a really good position in the market to service a different range of power levels.

Jacob Dewitte: So, in summary, when we think about our sites and our project opportunities, we're managing very well with how we see data center markets and other industrial markets developing. As we look at the market today, based on the conversations we have with our partners and customers, we see that the ranges of power needed on a site-by-site or project-by-project or even sort of data center phase development project basis. They're typically looking at needing power between 10 and 20 or between 30 and 50 megawatts, while also needing that high reliability power. Our ability to scale with them means we're really well positioned to build up.

Jake DeWitt: So, in summary, when we think about our sites and our project opportunities, we're aligned very well with how we see data center markets and other industrial markets develop. As we look at the market today, based on the conversations we have with our partners and customers, we see that the ranges of power needed on a site-by-site or project-by-project or even sort of data-centered phase development project basis. They're typically looking at needing power between 10 and 20 or between 30 and 50 megawatts, while also needing that high reliability of power.

Speaker Change: So, in summary, when we think about our sites and our project opportunities,

Speaker Change: we're matching very well with how we see data center markets and other industrial markets developing.

Speaker Change: As we look at the market today, based on the conversations we have with our partners and customers, we see that the ranges of power needed on a site-by-site or project-by-project or even sort of data-centered phase development project basis.

Speaker Change: They're typically looking at needing power between 10 and 20 or between 30 and 50 megawatt chunks while also needing that high reliability of power. Our ability to scale with them means we're really well positioned to build up. This positions us quite differently than if you were to go in and say, let's build one plant to provide all the power for a facility.

Jake DeWitt: Our ability to scale with them means we're really well positioned to build up. This positions us quite differently than if you were to go in and say, let's build one plant to provide all the power for a facility. That's hard to offer an N plus one dynamic because you would significantly have to overbuild your capacity.

Jacob Dewitte: This position is quite differently than if you were to go in and say, let's build one plant to provide all the power for facility. That's been hard to offer an in plus one dynamic because you would significantly have to over build your capacity. So, in this illustration, if you had a 500 megawatt project to build 200 megawatt projects to provide in plus one, that would be a lot of stranded capacity. Whereas for 500 megawatt projects, we could build 10 50 megawatt plants within an additional 50 megawatt plant to 11 total to offer that in plus one reliability while also offering the same amount of power.

Speaker Change: That's been hard to offer an N plus one dynamic because you would significantly have to overbuild your capacity. So, in this illustration, if you had a 500-megawatt project, to build two 500-megawatt projects to provide N plus one, that would be a lot of stranded capacity.

Jake DeWitt: So in this illustration, if you had a 500 megawatt project to build two 500 megawatt projects to provide N plus one, that would be a lot of stranded capacity. Whereas for 500-megawatt projects, we could build 10 50-megawatt plants with then an additional 50-megawatt plant, so 11 total, to offer that N plus 1 reliability while also offering the same amount of power. Additionally, as customers build out, they're probably going to need 500 megawatts all at once.

Speaker Change: Whereas, for a 500-megawatt project, we could build 10 50-megawatt plants with then an additional 50-megawatt plant, so 11 total, to offer that N plus one reliability while also offering the same amount of power.

Jacob Dewitte: Additionally, as customers build out, they're probably going to need 500 megawatts all at once. They're going to need it over time, and that's that time might be a ramp up of two or five or more years. So they might start by needing 50, and then 100, and then 250, and then 500 megawatts in total as they scale forward. Well, that's great because we can build up and match that with them. That also gives us the benefits of ordering parts for the reactor and components to the reactor in volume just to meet one project. Very different dynamic and building one plant to purposely build that.

Jake DeWitt: They're going to need it over time, and that time might be a ramp-up of two or five or more years. So they might start by needing 50 and then 100 and then 250 and then 500 megawatts in total as they scale forward. Well, that's great because we can build up and match that with. That also gives us the benefits of ordering parts for the reactor and components for the reactor in volume just to meet one project. A very different dynamic than building one plant to purposely fill it.

Speaker Change: Additionally, as customers build out, they're probably going to need 500 megawatts all at once. They're going to need it over time. And that time might be a ramp-up of two or five or more years.

Speaker Change: So, they might start by needing 50, and then 100, and then 250, and then 500 megawatts in total as they scale forward. Well, that's great, because we can build up and match that with them.

Speaker Change: That also gives us the benefits of ordering parts for the reactor and components for the reactor in volume just to meet one project. Very different dynamic than building one plant to purposely fill that.

Jacob Dewitte: And if you built that 500 megawatt plant to fill that demand, you have a lot of stranded capacity while your customer ramp up that challenges some of the economics accordingly. So our model really works well to match where we see data center development moving as well as other industrial users and other power users.

Jake DeWitt: And if you built that 500 megawatt plant to fill that demand, you'd have a lot of stranded capacity while your customer would ramp up. That challenges some of the economics accordingly. So our model really works well to match where we see data center development moving, as well as other industrial users and other power users. So with that, I'll go ahead and hand off to our CFO, Craig, who's going to take it over and talk to you about our business model. Thanks, Jake.

Speaker Change: And if you built that 500 megawatt plant to fill that demand, you'd have a lot of stranded capacity while your customer would ramp up. That challenges some of the economics accordingly. So our model really works well to match where we see data center development moving, as well as other industrial users and other power users.

Operator: If you need assistance during the conference today, please press star zero.

Operator: Good day everyone and welcome to Oklo's second quarter, 2024 Earnings and Business Update Webcast. At this time, all participants are in a listen only mode.

Craig Belmer: So, with that, I'll go ahead and hand off to our CFO, Craig, who's going to take it over and talk to you about our business model. Craig?

Operator: Later you have the opportunity to ask questions during the question and answer session. You may register to ask a question at any time by pressing star one on your telephone keypad. You may withdraw yourself from the key by pressing star two. Please note this call may be recorded and what I will be standing by if you should need any assistance.

Craig: So, with that, I'll go ahead and hand off to our CFO, Craig, who's going to take it over and talk to you about our business model. Craig?

Craig Belmer: Thanks, Jake. As we highlighted at our investor-day presentation back in February of this year, slide 15 shows how we have developed and are implementing a business model with five key attributes that can be seen on the right-hand portion of this slide. Namely, the current cash flow from Power Purchase Agreements. We expect these contracts to be at least 20 years in duration, which support our build, own, and operate business model. Second, capital-efficient approach to asset deployment, enabled by the size and technology foundational pillars, Jake discussed earlier. Over time, this should allow us to reduce cost and asset construction time through purchasing economies of scale, as well as efficiencies that should come from deploying essentially the same asset over time.

Craig Belmer: As we highlighted at our Investor Day presentation back in February of this year, slide 15 shows how we have developed and are implementing a business model with five key attributes that can be seen on the right-hand portion of this slide. Namely, recurring cash flow from power purchase agreements. We expect these contracts to be at least 20 years in duration, which supports our build, own, and operate business model. Second, a capital efficient approach to asset deployment, enabled by the size and technology foundational pillars Jake discussed earlier.

Craig: Thanks, Jake.

Craig: we highlighted at our investor day presentation back in February of this year.

Craig: Slide 15 shows how we have developed and are implementing a business model with five key attributes that can be seen on the right-hand portion of this slide.

Sam Doane: It is now my pleasure to turn the conference over to Mr. Sam Doane, Director of Investor Relations. Please go ahead sir. Thank you operator.

Craig: Namely, recurring cash flow from power purchase agreements.

Sam Doane: Good day everyone and welcome to Oklo's inaugural company update and earnings. Joining us today are Jake Dewitte, co-founder and chief executive officer and Craig Belmer, chief financial officer. Oklo's Q2 earnings were announced after market closed today. You can find a shareholder letter and supplemental slides on the investor relations page of our website.

Speaker Change: We expect these contracts to be at least 20 years in duration, which supports our build, own, and operate business model. Second, capital efficient approach to asset deployment, enabled by the size and technology foundational pillars Jake discussed earlier.

Craig Belmer: Over time, this should allow us to reduce cost and asset construction time through purchasing economies of scale, as well as efficiencies that should come from deploying essentially the same asset over time. Third, these two factors should generate attractive asset returns on their own.

Jake DeWitt: Over time, this should allow us to reduce cost and asset construction time through purchasing economies of scale, as well as efficiencies that should come from deploying essentially the same asset over time.

Sam Doane: The information discussed during the course of our remarks and the subsequent Q&A session includes four looking statements which reflect our current views of existing trends and our subject to a variety of risks, assumptions, estimates, uncertainties and other factors that could cause actual results to differ materially from such statements. You are urged to carefully read the forward looking statements language in our shareholder letter and supplemental slides. You can find a discussion of our risk factors which could potentially contribute to such differences in our most recent filings with the SEC. Oklo assumes no obligation to update these statements whether as a result of new information, future events or otherwise except as required by law.

Craig Belmer: Third, these two factors should generate attractive asset returns on their own. In addition, we look to deliver up sides to those returns by accessing investment tax credits or ITCs and utilizing project financing against the long-duration PPAs. Fourth, longer-term, we are working to deploy fuel recycling technology, which should have the dual benefit of providing enhanced security to our fuel supply chain and potentially reduce our fuel cost by over 80% versus the cost of fresh fuel. And finally, a strong balance sheet to enable growth.

Speaker Change: Third, these two factors should generate attractive asset returns on their own. In addition, we look to deliver upsides to those returns by accessing investment tax credits or ITCs and utilizing project financing against the long-duration PPAs.

Craig Belmer: In addition, we look to deliver upsides to those returns by accessing investment tax credits or ITCs and utilizing project financing against the long-duration PPA. Fourth, longer term, we are working to deploy fuel recycling technology, which should have the dual benefit of providing enhanced security to our fuel supply chain and potentially reduce our fuel cost by over 80% versus the cost of fresh fuel. And finally, a strong balance sheet to enable growth.

Speaker Change: Fourth, longer term we are working to deploy fuel recycling technology, which should have the dual benefit of providing enhanced security to our fuel supply chain and potentially reduce our fuel cost by over 80% versus the cost of fresh fuel.

Craig Belmer: What is the completion of our merger with Alt-C? We believe that we are now well-capitalized to execute our business plans, which should be a significant competitive advantage. Slide 16 reflects that we expect this approach to asset and capital efficiency to create a strong position for our business in terms of our overall delivered levelized cost of energy, or LCOE. Initially, we expect our first-of-a-kind or FOAC LCOE to be approximately $90 for megawatt. This figure should improve as investment tax credits, scale economies, and improve project execution capabilities are utilized across our business. The overall ability to produce power 24 hours per day and at a high capacity factor should make our overall LCOE very competitive versus other clean energy alternatives.

Craig Belmer: Post the completion of our merger with Alt-C, we believe that we are now well capitalized to execute our business plans, which should be a significant competitive advantage. Slide 16 shows that we expect this approach to asset and capital efficiency to create a strong position for our business in terms of our overall delivered levelized cost of energy, or LCOE. Initially, we expect our first-of-a-kind, or FOAC, LCOE to be approximately $90 per megawatt hour.

Speaker Change: And, finally, a strong balance sheet to enable growth. Post the completion of our merger with Alt-C, we believe that we are now well capitalized to execute our business plans, which should be a significant competitive advantage.

Jacob Dewitte: I'll now turn the call over to Jake Dewitte, co-founder and chief executive officer Jake. Thanks Sam and thank you all for joining us today. I'm excited to share a quarterly update and provide some insight into the progress we've made over the past quarter.

Speaker Change: Slide 16 reflects that we expect this approach to asset and capital efficiency to create a strong position for our business in terms of our overall delivered levelized cost of energy, or LCOE.

Jacob Dewitte: By way of introduction and a little bit of background in history and Oklo, the company was born largely out of a view that there was a significant amount of opportunity with advanced nuclear technologies. Personally, I grew up in New Mexico. I was born and raised there and born and raised around the technology according to them and that's where I fell in love with it from a very young age. It was something that felt like it was from science fiction but it was actually real.

Speaker Change: Initially, we expect our first-of-a-kind, or FOAC, LCOE to be approximately $90 per megawatt hour.

Jacob Dewitte: The fact that you can take an atom and split it and harness the strong nuclear force and produce 50 million times more energy than a conventional hydrogen. It's always been crazy to me. It's still as today but it's real. This is real technology and it's been with us for over 80 years at this point. So I knew I wanted to work on it from a young age and I had a unique set of experiences to be around the technology.

Craig Belmer: This figure should improve as investment tax credits, scale economies, and improved project execution capabilities are utilized across our business. The overall ability to produce power 24 hours per day and at a high capacity factor should make our overall LCOE very competitive versus other clean energy alternatives. Finally, I would note that this chart does not reflect the potential upside that can be achieved through the deployment of fuel recycling technology.

Speaker Change: This figure should improve as investment tax credits, scale economies, and improved project execution capabilities are utilized across our business.

Speaker Change: The overall ability to produce power 24 hours per day and at a high capacity factor should make our overall LCOE very competitive versus other clean energy alternatives.

Craig Belmer: Finally, I would note that this chart does not reflect the potential upsides that can be achieved to the deployment of fuel recycling technology.

Speaker Change: Finally, I would note that this chart does not reflect the potential upsides that can be achieved through the deployment of fuel recycling technology.

Craig Belmer: Moving on, one question we've been asked is how we plan to capitalize the business going forward. One of the benefits of the extremely low level of redemptions from our merger with Alt-C is that not only does it put us in a great position to execute our business plan, but also means we can be strategic as we develop and implement a go-forward financing strategy. Moving left to right on chart 17, you can see that over time we expect to utilize OCLOS equity in the form of cash on the balance sheet to finance anywhere from 25% to 35% of our projects, with the remaining 65% to 75% being financed potentially through a mix of project financing, tax equity structures, and the DOE's Loan Program Office.

Craig Belmer: Moving on, one question we've been asked is how we plan to capitalize the business going forward. One of the benefits of the extremely low level of redemptions from our merger with Alt-C is that not only does it put us in a great position to execute our business plan, but it also means we can be strategic as we develop and implement a go-forward financing strategy. Moving left to right on chart 17, you can see that over time we expect to utilize Oklo's equity in the form of cash on the balance sheet to finance anywhere from 25% to 35% of our projects, with the remaining 65% to 75% being financed potentially through a mix of project financing, tax equity structures, and the DOE's loan program office. We are currently assessing each of these options across a number of lenses, and we'll provide further updates as our plans mature.

Jacob Dewitte: In high school, I got hired into the nuclear weapons program and I got a chance to learn a lot about it from that point and from there got a chance to springboard into a number of different facets to the industry. From academic and government R&D to licensing and procurement on the fuel enrichment side to reactor commercial reactor design and R&D as well as research projects on the academic side touching conventional large light water reactors as well as next generation advanced reactors.

Speaker Change: Moving on, one question we've been asked is how we plan to capitalize the business going forward.

Speaker Change: One of the benefits of the extremely low level of redemptions from our merger with Alt-C is that not only does it put us in a great position to execute our business plan, but it also means we can be strategic as we develop and implement a go-forward financing strategy.

Speaker Change: Moving left to right on chart 17, you can see that over time we expect to utilize Oklahoma's equity in the form of cash on the balance sheet to finance anywhere from 25% to 35% of our projects.

Jacob Dewitte: Along this path, I started to see a clear picture of what I thought was the case when I went into it, which was new technologies. We're going to be what ushered in some of these new areas of growth for nuclear. But that was only part of the story. In fact, it was much more oriented to fundamentally needing to do some new things in the space. What I observed was an industry that had fairly radically stagnated and how it did things and approach things. And there was a ton of opportunity to rethink about how you could approach taking new nuclear technologies to market.

Speaker Change: with the remaining 65% to 75% being financed potentially through a mix of project financing, tax equity structures, and the DOE's Loan Program Office.

Craig Belmer: We are currently assessing each of these options across a number of lenses and will provide further updates as our plans mature. As we have discussed numerous investor and analyst meetings, we believe it is clear that there is significant untapped demand for the clean, affordable, and reliable power that nuclear and general plan deliver and that is ideally suited for Oklo's build, own, and operate business model. On flight 18, we see four macro trends that are providing tailwinds to our industry, which include increasing electricity demand, decreasing electricity capacity, grid reliability challenges, and decarbonization targets. Moving to the next slide, the impact of this growth at the macro level is providing increased demand for Oklo's clean, reliable, affordable offer, as reflected on flight 18.

Speaker Change: We are currently assessing each of these options across a number of lenses and will provide further updates as our plans mature.

Craig Belmer: As we have discussed at numerous investor and analyst meetings, we believe it is clear that there is significant untapped demand for the clean, affordable, and reliable power that nuclear in general can deliver and that is ideally suited for Oklahoma's build, own, and operate business model. On slide 18, we see four macro trends that are providing tailwinds to our industry, which include increasing electricity demand and decreasing electricity capacity.

Speaker Change: [inaudible]

Jacob Dewitte: So, that led my co-founder Caroline and I to think about and ultimately start a company sintering around three major pillars that we saw were really important to catalyzing significant changes and opportunities in the industry. Those centered around taking first a different approach on the business model, second a different approach around the size of the reactor, and third a different approach around technology. So to kind of pick at those things really quickly first on the business model side this is a really important differentiation point for us from how things have been done and are done generally speaking across the industry.

Speaker Change: As we have discussed at numerous investor and analyst meetings, we believe it is clear that there is significant untapped demand for the clean, affordable, and reliable power that nuclear in general can deliver, and that is ideally suited for Oklahoma's build, own, and operate business model.

Speaker Change: On slide 18, we see four macro trends that are providing tailwinds to our industry.

Speaker Change: Which include increasing electricity demand, decreasing electricity capacity, grid reliability challenges, and decarbonization targets.

Craig Belmer: Reliability challenges and decarbonization target. Moving to the next slide, the impact of this growth at the macro level is providing increased demand for Oklo's clean, reliable, affordable offer, as reflected on slide 18. As we have previously discussed, we are targeting customers across the six market sectors reflected on this slide. In the past 12 months, we have made announcements across each of these sectors with the exception of master plan communities, but we do have commercial discussions underway with customers in this sector as well.

Speaker Change: Moving to the next slide, the impact of this growth at the macro level is providing increased demand for Oklahoma's clean, reliable, affordable offer as reflected on slide 18.

Jacob Dewitte: Typically the nuclear business model from a reactor design perspective has involved designing a reactor to about 80% or so completion maybe designing the power plant to something between 50 and 80% completion and then going off and trying to license out that design to your customers asking them to then take the baton to then complete the design and then permit it to site it to build its own it and to operate the plant. That puts all of the burden on the customers and it's a highly frictional process.

Craig Belmer: As we have previously discussed, we are targeting customers across the six market sectors reflected on this slide. In the 12 months, we have made announcements across each of these sectors, with the exception of master plan communities, but we do have commercial discussions underway with customers in this sector as well. Overall, we believe the strong level of customer interest and traction demonstrates the applicability for our raw car houses across a variety of use cases and should create a very strong pipeline of business to underpin sizeable revenue growth. As reflected on the left bar on slide 19, at the time of our announcement of our merger with ALT-C, we noted that we had over 700 megawatts of business that had been signed to a combination of memorandum of understanding and letters of intent.

Speaker Change: As we've previously discussed, we are targeting customers across the six market sectors reflected on this slide.

Speaker Change: In the 12 months, we have made announcements across each of these sectors with the exception of master plan communities, but we do have commercial discussions underway with customers in this sector as well.

Craig Belmer: Overall, we believe the strong level of customer interest and traction demonstrates the applicability of our Aurora powerhouses across a variety of use cases and should create a very strong pipeline of business to underpin sizable revenue growth. As reflected in the left bar on slide 19, at the time of our announcement of our merger with Alt-C, we noted that we had over 700 megawatts of business that had been signed on a combination of memorandums of understanding and letters of intent.

Speaker Change: Overall, we believe the strong level of customer interest and traction demonstrates the applicability for our Aurora powerhouses across a variety of use cases and should create a very strong pipeline of business to underpin sizable revenue growth.

Jacob Dewitte: We found that people really wanted the wonderful attributes that nuclear power afford. So we decided to take a different approach. So early on we took a view of asking the question what would make it easier for people to buy what they really like about nuclear technology. In other words how could we make it easier for people to buy what they wanted and so that led us to ultimately follow into an opportunity that built on what renewables had done very well for a long time which was designed, build and operate the plant ourselves and then just sell the power through power purchase agreements.

Speaker Change: As reflected on the left bar on slide 19, at the time of our announcement of our merger with Alt-C, we noted that we had over 700 megawatts of business that had been signed to a combination of memorandum of understanding and letters of intent.

Craig Belmer: Since that time, we have made new announcements in the data center market sector with Equinix and Wyoming hyperscale, as well as an announcement with Diamondback Energy in the oil and gas sector. These more recent announcements have also served to demonstrate our customer-oriented approach, whereby we looked to deploy 50 megawatt powerhouses to meet the needs of those customers. I would also like to point out that this customer momentum is continuing.

Craig Belmer: Since that time, we've made new announcements in the data center market sector with Equinix and Wyoming Hyperscale, as well as an announcement with Diamondback Energy in the oil and gas sector. These more recent announcements have also served to demonstrate our customer-oriented approach, whereby we look to deploy 50 megawatt powerhouses to meet the needs of those customers. I would also like to point out that this customer momentum is continuing. Maintenance was not only our first day of trading on the New York stock exchange but also a day where we saw sizable inbound inquiries from customers looking for power from Oklahoma. As such, we expect to make more customer announcements during the remainder of 2024. I would now like to turn back over to Jim.

Speaker Change: Since that time, we've made new announcements in the data center market sector with Equinix and Wyoming Hyperscale, as well as an announcement with Diamondback Energy in the oil and gas sector.

Jacob Dewitte: That has significant benefits because it's aligned with what customers want perhaps invest the most important thing and we see that reflected in how our customer interest and customer order book has grown and is growing. Additionally we also see reflected in the significant benefits that come to the company with this kind of recurring revenue model. And so those things are significantly enabling an accelerated to us as we think about how the future of nuclear needs to ultimately evolve.

Speaker Change: These more recent announcements have also served to demonstrate our customer-oriented approach whereby we look to deploy 50-megawatt powerhouses to meet the needs of those customers.

Craig Belmer: May 10th was not only Oakland's first day of trading on the New York Stock Exchange, but also a day where we saw sizable inbound inquiries from customers looking to buy our power from Oakland. As such, we expect to make more customer announcements during the remainder of 2024.

Speaker Change: I would also like to point out that this customer momentum is continuing. May 10th was not only Oklahoma's first day of trading on the New York Stock Exchange, but also a day where we saw sizable inbound inquiries from customers looking to buy our power from Oklahoma.

Jacob Dewitte: Additionally we wanted to take a different angle on size. We didn't want to start at bigger size ranges like a few hundred megawatts or even a big a lot like today's plant. Instead we wanted to start as small as we reasonably could so that we could have a technology that could service a market of reasonable size and grow into. So not so small that it's kind of like a toy or niche system like a few hundred kilowatts or so but actually big enough so that you could service a large market and grow into it.

Jacob Dewitte: So we found a sweet spot at about 15 megawatt and that's a lot of us to change the paradigm from needing billions of dollars to capitalize the plant and get it operational to only needing a few hundred million dollars. So that's a lot of just to significantly change the paradigm to how you take new technologies to market.

Speaker Change: As such, we expect to make more customer announcements during the remainder of 2024.

Jacob Dewitte: I would now like to turn back over to Jake. Thank you, Craig.

Craig Belmer: Thank you, Craig. As we talked about a bit earlier, we have some significant advantages with respect to our timing in the market, as well as our product offering. After closing the business combination with AltE, we raised a significant amount of capital through that process, leading to a well-capitalized balance sheet to now execute against our plan. We are uniquely positioned in the advanced nuclear industry with respect to being the only company that has a site use permit to build our first plant at Idaho National Laboratory. The site use permit from the Department of Energy and fuel that was competitively awarded to us from Idaho National Laboratory, both received in 2019,

Jacob Dewitte: As we talked about a bit before, we have some significant advantages with respect to our timing in the market as well as our product offering. After closing the business combination with ALT, we raised the significant amount of capital through that process, leading to a well-capitalized balance sheet to now execute against our plans.

Speaker Change: I would now like to turn back over to Jake.

Jake DeWitt: Thank you, Craig. As we talked about a bit before, we have some significant advantages with respect to our timing in the market as well as our product offering. After closing the business combination with AltE, we raised a significant amount of capital through that process, leading to a well-capitalized balance sheet to now execute against our plans.

Jacob Dewitte: We are uniquely positioned in the advanced nuclear industry with respect to being the only company that has the site use permit to build our first plan and our national laboratory, the site use permit from the Department of Energy and having fuel that was competitively awarded to us from Idaho National Laboratory, both received in 2019. That's on top of the significant regulatory traction we have today. Additionally, the differentiation with respect to our business model, our size and our technology may get well positioned to capitalize on the significant amount of opportunity in the market space building up today.

Jake DeWitt: We are uniquely positioned in the advanced nuclear industry with respect to being the only company that has a site use permit to build our first plant at Idaho National Laboratory, the site use permit from the Department of Energy, and having fuel that was competitively awarded to us from Idaho National Laboratory, both received in 2019.

Jacob Dewitte: And finally we took the approach on pursuing what we see as the best in class economic potential from a technological perspective. Specifically we're working on what's called a liquid sodium cool fast reactor technology. That means we use liquid sodium as a coolant. We do that because it's technology that has a huge amount of potential with a really rich history of development behind it. As a society we built an operated more than 25 of these plants around the world. We've gained over 400 combined reactor years of operational experience. We've learned what works, what doesn't work and we know how to take the technology ultimately into the market.

Jake DeWitt: That's on top of the significant regulatory traction we have to date. Additionally, the differentiation with respect to our business model, our size, and our technology makes us well-positioned to capitalize on the significant amount of opportunity in the market space building today. Over the course of the next few years, we have a couple of exciting milestones to look forward to. And as we think about the growth of the company, we're excited about the transition from turning our first plant on into growth and scale from there.

Jake DeWitt: That's on top of the significant regulatory traction we have to date.

Jake DeWitt: Additionally, the differentiation with respect to our business model, our size, and our technology make us well-positioned to capitalize on the significant amount of opportunity in the market space building up today.

Jacob Dewitte: Over the course of the next few years, we have a couple of exciting milestones to look out for. And as we think about the growth of the company, we're excited about the transition from turning our first plant on into growth and scale from there. Between now and 2027, we'll be working to deploy our first plant at Idaho National Laboratory. This is a fully commercial plant, and it's a plant that we have site use permit for, we have fuel for, and we have significant regulatory traction around. In parallel to this, we'll also be developing plants in other areas and other sites to meet our growing customer needs, and looking forward to ramping up our growth after 2027.

Jake DeWitt: Over the course of the next few years, we have a couple of exciting milestones to look out through. And as we think about the growth of the company, we're excited about the transition from turning our first plant on into growth and scale from there.

Jake DeWitt: Between now and 2027, we'll be working to deploy our first plant at Idaho National Laboratory. This is a fully commercial plant, and it's a plant that we have a site use permit for, we have fuel for, and we have significant regulatory traction around. In parallel to this, we'll also be developing plants in other areas and other sites to meet our growing customer needs and looking forward to ramping up our growth after 2027. Over the course of the first and second quarters of this year, we achieved several major milestones. We closed the business combination and started trading on the New York Stock Exchange.

Jacob Dewitte: In the US we notably pursued a pathway of ultimately developing and demonstrating this technology in two meaningful ways, so in two plants. One was a plant in Washington State called the FastBooks Test Facility and the other was a plant Idaho called EBR2. At Oakville we must directly build our lineage and legacy of the EBR2 plant which was just under 20 megawatt fast reactor that sold power to the grid ran for about 30 years demonstrated to peer your operating characteristic.

Jake DeWitt: Between now and 2027, we'll be working to deploy our first plant in Idaho National Laboratory. This is a fully commercial plant, and it's a plant that we have a site use permit for, we have fuel for, and we have significant regulatory traction around.

Jake DeWitt: In parallel to this, we'll also be developing plants in other areas and other sites to meet our growing customer needs, and looking forward to ramping up our growth after 2027.

Jacob Dewitte: Over the course of the first and second quarters of this year, we had several major milestones. We closed the business combination and started trading on the New York Stock Exchange. We achieved a significant regulatory milestone with the Department of Energy with respect to our first fuel fabrication facility. We continued to advance our project in southern Ohio and entered into land agreements to deploy two plants there. We signed an L.O.Y. to supply 50 megawatts of power to Diamond Back Energy in the Permian Basin in Texas. We signed an MOU with Atomic Alchemy, a radioisotope production company, to collaborate on isotope production, particularly with the use of our fast neutrons, as well as the radioisotopes that are code products from our recycling facilities.

Jake DeWitt: Over the course of the first and second quarters of this year, we hit several major milestones.

Jake DeWitt: We achieved a significant regulatory milestone with the Department of Energy with respect to our first fuel fabrication facility. We continued to advance our project in Southern Ohio and entered into land agreements to deploy two plants there. We signed an LOI to supply 50 megawatts of power to Diamondback Energy in the Permian Basin in Texas. We also signed an MOU with Atomic Alchemy, a radioisotope production company, to collaborate on isotope production, particularly with the use of our fast neutrons, as well as the radioisotopes that are co-products from our recycling facility.

Jake DeWitt: We closed the business combination and started trading on the New York Stock Exchange. We achieved a significant regulatory milestone with the Department of Energy with respect to our first fuel fabrication facility.

Jacob Dewitte: Dr. Richard Bealmear, Unknown Executive, Vikram Vikram Bagri Dr. Richard Richard Bealmear, Unknown Executive, Vikram Bagri Dr. Richard Bealmear, Unknown Executive Dr. Richard Bealmear, Unknown Executive, Vikram Dr. Richard Bealmear, Unknown Executive The ability to utilize existing supply chain components allows us to leverage non-nuclear supply chains which operate at much higher volumes and offer more diverse options that come at lower cost. This approach significantly enhances the economic scalability of our technology. And that's one of the reasons we're so excited about is economic potential. And that was a big focus of ours. We wanted to focus on something that has aesthetic appeal while also offering something that has functional benefits from a constructability perspective.

Jake DeWitt: We continued to advance our project in Southern Ohio and entered into land agreements to deploy two plants there. We signed an LOI to supply 50 megawatts of power to Diamondback Energy in the Permian Basin in Texas. We signed an MOU with Atomic Alchemy.

Jake DeWitt: a radioisotope production company to collaborate on isotope production, particularly with the use of our fast neutrons as well as the radioisotopes that are co-products from our recycling facilities.

Jacob Dewitte: We partnered with our Wyoming hyper scale to deliver 100 megawatts to its data centers. We achieved significant milestones with our Dawn National Laboratory, one of the leading experts in sodium and liquid metal fast reactor technologies, involving the use of their state-of-the-art thermal hydraulic testing facilities. We also established what we announced earlier today, our preferred supply agreement for steam turbine generator products and services with SEMA's Energy. We're very excited about this partnership because it is validation of our business model and our approach that we can leverage suppliers that make components for other purposes that we can directly use in our system.

Jake DeWitt: Partnering with Wyoming Hyperscale to deliver 100 megawatts to its data centers, we achieved significant milestones with Argonne National Laboratory, one of the leading experts in sodium and liquid metal fast reactor technologies, involving the use of their state-of-the-art thermo-hydraulic testing facilities.

Jake DeWitt: We partnered with Wyoming Hyperscale to deliver 100 megawatts to its data centers. We achieved significant milestones with Argonne National Laboratory, one of the leading experts in sodium and liquid metal fast reactor technologies, involving the use of their state-of-the-art thermohydraulic testing facilities.

Jake DeWitt: We also established, as we announced earlier today, our preferred supplier agreement for steam turbine generator products and services with Siemens Energy. We're very excited about this partnership because it is validation of our business model and our approach. That we can leverage suppliers that make components for other purposes that we can directly use in our system. What we're buying from Siemens looks very similar to what they make for fossil fuel power plants, and we're very excited about our partnership with them going forward.

Jake DeWitt: We also established what we announced earlier today, our preferred supplier agreement for steam turbine generator products and services with Siemens Energy.

Speaker Change: We're very excited about this partnership because it is validation of our business model and our approach. That we can leverage suppliers that make components for other purposes that we can directly use in our system. What we're buying from Siemens looks very similar to what they make for fossil fire plants, and we're very excited about our partnership with them going forward.

Jacob Dewitte: What we're buying from SEMA's looks very similar to what they make for fossil fire plants, and we're very excited about our partnership with them going forward. We also continue to make progress to put in place numerous supplier contracts that would be critical to the deployment of our first Aurora plant at Idaho National Advertors, and for our supply chain that will be required to deploy a fleet of powerhouses. Contracting is underway for site preparation and fuel fabrication at INL, which we expect to ramp up during the remainder of 2024 and beyond. In most cases, we're at the commercial negotiation stage with key vendors, and hence are limited to the details we can provide at this time.

Jake DeWitt: We also continue to make progress to put in place numerous supplier contracts that would be critical to the deployment of our first Aurora plant at Idaho National Laboratories and for our supply chain that will be required to deploy a fleet of powerhouses. Contracting is underway for site preparation and fuel fabrication at INL, which we expect to ramp up during the remainder of 2024 and beyond. In most cases, we're at the commercial negotiation stage with key vendors and hence are limited to the details we can provide at this time. In addition, we recently announced that we have finalized our preferred supplier agreement with Siemens Energy, who will be providing steam turbine and generator technologies as well as services for our fleet of powerhouses.

Speaker Change: We also continue to make progress to put in place numerous supplier contracts that would be critical to the deployment of our first Aurora plant at Idaho National Laboratories, and for our supply chain that will be required to deploy a fleet of powerhouses.

Speaker Change: Contracting is underway for site preparation and fuel fabrication at INL, which we expect to ramp up during the remainder of 2024 and beyond. In most cases, we're at the commercial negotiation stage with key vendors and hence are limited to the details we can provide at this time.

Jacob Dewitte: In addition, we recently announced that we have finalized our preferred supplier agreement with SEMA's Energy, who will be providing steam turbine and generator technology as well as services for our fleet of powerhouses. We believe having an agreement with such a recognized name and SEMA's energy is unique for our industry and a testament to the type of partnership or agent that our business model unlocks, not only for Oakville but for our key suppliers.

Speaker Change: In addition, we recently announced that we have finalized our preferred supplier agreement with Siemens Energy, who will be providing steam turbine and generator technology as well as services for our fleet of powerhouses.

Jake DeWitt: We believe having an agreement with such a recognized name as Siemens Energy is unique for our industry and a testament to the type of partnership arrangement that our business model unlocks, not only for Oklo but for our key suppliers. Additionally, one of the exciting parts of this business is what we can do on the recycling front. Fast reactors have a unique ability to recycle used fuel, and we've been actively pursuing this to diversify our fuel supplies and capitalize on the benefits of fuel recycling.

Speaker Change: We believe having an agreement with such a recognized name as Siemens Energy is unique for our industry and a testament to the type of partnership arrangement that our business model unlocks, not only for Oklahoma but for our key suppliers.

Jacob Dewitte: Additionally, one of the exciting parts of this business is what we can do on the recycling front. Fast reactors have unique ability to recycle use fuel, and we've been actively pursuing this to diversify our fuel supplies and capitalize in the benefits of fuel recycling. This approach not only improves fuel economics, but also opens up additional revenue streams from the sale of co-products generated during the recycling process. This is the technology that has been demonstrated before, and that is in fact already operating at a small scale at national laboratories. Our work with Argonne and our Department of Energy partners has been focused on furthering the development of this technology to prepare for industrialization and scaling up operations. We had several milestones in the last quarter, notably demonstrating the successful end-to-end recycling process with Argonne National Laboratory.

Speaker Change: Additionally, one of the exciting parts of this business is what we can do on the recycling front. Fast reactors have the unique ability to recycle used fuel, and we've been actively pursuing this to diversify our fuel supplies and capitalize on the benefits of fuel recycling.

Jake DeWitt: This approach not only improves fuel economics but also opens up additional revenue streams from the sale of co-products generated during the recycling process. This technology has been demonstrated before and is, in fact, already operating at a small scale at national laboratories.

Speaker Change: This approach not only improves fuel economics, but also opens up additional revenue streams from the sale of co-products generated during the recycling process.

Speaker Change: This is the technology that has been demonstrated before and that is in fact already operating at a small scale at national laboratories. Our work with Argonne and our Department of Energy partners has been focused on furthering the development of this technology to prepare for industrialization and scaling up operations.

Jake DeWitt: Our work with Argonne and our Department of Energy partners has been focused on furthering the development of this technology to prepare for industrialization and scaling up operations. We hit several milestones in the last quarter, notably demonstrating the successful end-to-end recycling process with Argonne National Laboratory. We also continue to advance our regulatory engagement with the NRC and are submitting white papers and holding pre-application meetings on several key topic areas. Finally, I mentioned this before, but we were also excited to advance and announce our strategic partnership with Atomic Alchemy, a company working on producing radioisotopes.

Speaker Change: We hit several milestones in the last quarter, notably demonstrating the successful end-to-end recycling process with Argonne National Laboratory. We also continue to advance our regulatory engagement with the NRC and are submitting white papers and holding pre-application meetings on several key topic areas.

Jacob Dewitte: We also continue to advance our regulatory engagement with the intersemitting white papers and holding pre-application meetings on several key topic areas.

Jacob Dewitte: Finally, I mentioned this before, but we were also excited to advance and announce our strategic partnership with Atomic Alcoming. The company working on producing radio isotems. Our partnership entails work on using the fast new trends we produce for radio isotope production, as well as partnering with them to process code products from the recycling facility that can be packaged and sold into various industrial, medical, and other markets.

Speaker Change: Finally, I mentioned this before, but we were also excited to advance and announce our strategic partnership with Atomic Outcoming.

Jake DeWitt: Our partnership entails work on using the fast neutrons we produce for radioisotope production, as well as partnering with them to process co-products from the recycling facility that can be packaged and sold into various industrial, medical, and other markets. So going forward, we look forward to keeping the market up to date on our progress in six major areas, reactor licensing progress, customer pipeline development, project execution, the development of fuel recycling, strategic partnerships, as well as financial uptake. So with that, I'll hand it over to our CFO, Craig, again. Thanks, Jake.

Speaker Change: the company working on producing radioisotopes. Our partnership entails work on using the fast neutrons we produce for radioisotope production, as well as partnering with them to process co-products from the recycling facility that can be packaged and sold into various industrial, medical, and other markets.

Jacob Dewitte: So going forward, we look forward to keeping the market up to date on our progress in six major areas. Reactor licensing progress, customer pipeline development, project execution, the development of fuel recycling, strategic partnerships, as well as financial updates.

Speaker Change: So, going forward, we look forward to keeping the market up-to-date on our progress in six major areas – reactor licensing progress, customer pipeline development, project execution, the development of fuel recycling, strategic partnerships, as well as financial updates.

Craig Belmer: So, with that, I'll hand it over to our CFO, Craig, again. Craig.

Craig Belmer: Thanks, Jake. Both Oklo and Alcy are very pleased with the outcome of our merger, which closed on May 9, 2024. Slide 27 demonstrates several of the key outcomes of this transaction, whereby a record 0.002 percent of redemptions translated into gross proceeds of over 300 million dollars. After associated fees, over 276 million dollars in cash moved on to Oklo's balance sheet that is being used to fund our business. We believe the attractive pre-money valuation of 875 million, which also included the Equinix pre-payment for power, as well as the straightforward nature of the deal that resulted in one class of common stock with no wars or pipe, were also critical drivers of this successful outcome.

Craig Belmer: Both Oklo and Alt-C are very pleased with the outcome of our merger, which closed on May 9th, 2024. Slide 27 demonstrates several of the key outcomes of this transaction, whereby a record 0.002% of redemptions translated into gross proceeds of over $300 million. After associated fees, over $276 million in cash moved on to Oklo's balance sheet, which is being used to fund our business. We believe the attractive pre-money valuation of $875 million, which also included the Equinix prepayment for power, as well as the straightforward nature of the deal that resulted in one class of common stock with no warrants or pipe, were also critical drivers of this successful outcome.

Speaker Change: So, with that, I'll hand it over to our CFO, Craig, again. Craig?

Craig: Thanks, Jake. Both OCLO and ALTSEA are very pleased with the outcome of our merger, which closed on May 9th, 2024.

Craig: Slide 27 demonstrates several of the key outcomes of this transaction, whereby a record 0.002% of redemptions translated into gross proceeds of over $300 million.

Speaker Change: After associated fees, over $276 million in cash moved on to Oklahoma's balance sheet that is being used to fund our business.

Speaker Change: We believe the attractive pre-money valuation of $875 million, which also included the Equinix prepayment for power, as well as the straightforward nature of the deal that resulted in one class of common stock with no warrant or pipe were also critical drivers of this successful outcome.

Jacob Dewitte: So because of those benefits, the nuclear sector is receiving unprecedented support from all levels of government. This quarter has seen some pretty exciting developments, including the signing of the advance acts, but this builds on years of significant support at a federal, at a state and an international level. One of the big benefits legislatively for nuclear, frankly one of the biggest in the last few decades, was the passage in signing of the advance act.

Craig Belmer: As part of our public offering, as seen on slide 28, Oklo established a new world-class board of directors with individuals with backgrounds in defense, oil and gas, power generation, capital markets, and artificial intelligence. This deep expertise will benefit Oklo as the company executes on its business plan to deliver its vision. Oklo is also lucky to have an experienced management team with a broad spectrum of backgrounds from large Fortune 500 companies, as well as relevant government agencies, including the U.S. Department of Energy and Nuclear Focus Research Institutions, such as the Idaho National Laboratory.

Craig Belmer: As part of our public offering, as seen on slide 28, Oklo established a new world-class board of directors with individuals with backgrounds in defense, oil and gas, power generation, capital markets, and artificial intelligence. This deep expertise will benefit Oklo as the company executes on its business plan to deliver its vision. Oklo is also lucky to have an experienced management team with a broad spectrum of backgrounds from large Fortune 500 companies, as well as relevant government agencies, including the US Department of Energy and nuclear-focused research institutions, such as the Idaho National Laboratory.

Speaker Change: As part of our public offering as seen on slide 28, OAKLAND established a new world-class board of directors with individuals with backgrounds in defense, oil and gas, power generation, capital markets, and artificial intelligence.

Jacob Dewitte: And that just happened within the last few months. This is a significant piece of legislation that drives forward support for Congress and also support from this administration that has clearly been in favor of propelling and advancing nuclear technology. It brings forward several major legislative development and policy support levels to basically support and scale the deployment of nuclear. This includes enhancing and modernizing NRC licensing and review timelines as well as fee structures.

Speaker Change: This deep expertise will benefit Oklo as the company executes on its business plan to deliver its vision.

Speaker Change: Oklahoma is also lucky to have an experienced management team with a broad spectrum of backgrounds from large Fortune 500 companies, as well as relevant government agencies, including the U.S. Department of Energy and nuclear-focused research institutions such as the Idaho National Laboratory.

Jacob Dewitte: It also supports driving forward accelerated deployment models, creating opportunities to enhance demand signals and demand indicators from the government, as well as aligning the NRC mission towards more successful and efficient scaling of nuclear technology. There's a lot more we can talk about with the advance act does and we will continue to do so, but we're quite excited about what this positions, the industry to be able to actually do and drive forward the deployment of new technologies going forward.

Craig Belmer: Moving to slide number 30, we know that there have been some questions posed to close of our transaction regarding shareholder lockups. Post-deal completion, our total outstanding share account is slightly over 122 million shares. Of those outstanding shares, our co-founders, as well as our chairman, and the alt C sponsor, are under multi-year lockups that include an early release mechanism for share price appreciation, with triggers at $12, $14, and $16 per share. These lockups represent approximately 34% of total shares outstanding. In addition, we have a few early stage investors who are subject to a 180-day lockup from the transaction date that equate to roughly 11% of shares outstanding.

Craig Belmer: Moving to slide number 30, we know that there have been some questions post the close of our transaction regarding shareholder lockups. Post-deal completion, our total outstanding share count is slightly over 122 million shares. Of those outstanding shares, our co-founders, as well as our chairman and the Alt-C sponsor, are under multi-year lockups that include an early release mechanism for share price appreciation with triggers set at $12, $14, and $16 per share. These lockups represent approximately 34% of total shares outstanding.

Speaker Change: and

Speaker Change: Moving to slide number 30, we know that there have been some questions post the close of our transaction regarding shareholder lockups.

Speaker Change: Post-deal completion, our total outstanding share count is slightly over 122 million shares.

Speaker Change: Of those outstanding shares, our co-founders, as well as our chairman and the Alt-C sponsor are under multi-year lockups that include an early release mechanism for share price appreciation with trigger set at $12, $14, and $16 per share.

Jacob Dewitte: Oh cool, it's one of the most extensive regulatory engagement histories with the nuclear regulatory commission or the NRC. Accordingly, we find ourselves very well positioned to benefit as an early mover with the regulatory side. We've been the longest engaged non light water reactor company with the NRC sitting back to starting to work with them back in 2016. We fit several significant milestones along the path there and are positioning ourselves to do a pre application readiness assessment later this year, spanning into submitting our next application early in the next year.

Speaker Change: These lockups represent approximately 34% of total shares outstanding.

Craig Belmer: In addition, we have a few early stage investors who are subject to a 180 day lockup from the transaction date, which equates to roughly 11% of shares outstanding. All other original investors did not have lockups, and their shares were therefore freely tradable on May 10th, which resulted in no sizable overhang on the stock.

Speaker Change: In addition, we have a few early-stage investors who are subject to 180-day lockup from the transaction date that equate to roughly 11% of shares outstanding.

Craig Belmer: All other original investors did not have lockups, which were therefore freely tradable on May 10th, which resulted in no sizable overhang on the stock.

Speaker Change: All other original investors did not have lockups, which were therefore freely tradable on May 10th, which resulted in no sizable overhang on the stock.

Jacob Dewitte: Followed by subsequent applications thereafter. Oak close integrated build own and operate business model and able to integrate it and streamline licensing pathway that's a bit different from what the industry does otherwise. An important feature for our business model as well as our licensing plan is taking advantage of a regulatory approach that allows us to do all the licensing we need to do to get a commercial operating license in one step. In other words, you can take a lot of steps to get to what you ultimately need, which is a commercial operating license.

Craig Belmer: Moving on to our financial highlights. Year-to-date, Oakland's cash use and operations, $17 million, made up of a net loss of $53.3 million, offset by $38.9 million in non-cash impacts, the main drivers of which I will highlight momentarily. At the end of second quarter, cash and marketable securities were 294.6 million, primarily driven by the 276 million in proceeds, net fees received the closures. Year-to-date are operating loss of 25.1 million, included $9.2 million of non-tash, stock-based compensation expenses, which was primarily driven by a one-time, fair market value adjustment of 7.8 million related earn-out shares that would be payable to Oklo staff who have vested options at the time of deal closures.

Craig Belmer: Moving on to our financial highlights. Year-to-date, Oklahoma's cash used in operations sits at $17 million, made up of a net loss of $53.3 million, offset by $38.9 million in non-cash impacts, the main drivers of which I will highlight momentarily. At the end of the second quarter, cash and marketable securities were $294.6 million.

Speaker Change: Moving on to our financial highlights.

Speaker Change: Year-to-date, Oklahoma's cash used in operations sits at $17 million, made up of a net loss of $53.3 million offset by $38.9 million in non-cash impacts, the main drivers of which I will highlight momentarily.

Jacob Dewitte: And some of her peers are taking a process where they go apply and get a construction permit. After that, they can go build the plan and then apply to get an operating license after which if they get the operating license, they can they commercially operate the plan. Others are taking an approach where instead of being the owner operator, they're designing the plans to get a design certification or something similar to that like a standard design approval.

Speaker Change: At the end of second quarter, cash and marketable securities were $294.6 million. Primarily driven by the $276 million in proceeds, NETA fees received at deal closure.

Craig Belmer: Primarily driven by the $276 million in proceeds, net-a-fees received at deal closure. Year-to-date, our operating loss of $25.1 million included $9.2 million of non-cash stock-based compensation expenses, which was primarily driven by a one-time fair market value adjustment of $7.8 million related to earn-out shares that would be payable to Oklo staff who have vested options at the time of deal Full year 2024, our operating loss expectations are still in line with our prior guidance of 40 to 50 million. That was noted in our super A case file. Our year-to-date net loss of $53.3 million includes non-cash fair market losses of $30 million associated with a safe note revaluation and $7.8 million losses on stock-based compensation.

Speaker Change: Year-to-date, our operating loss of $25.1 million included $9.2 million of non-cash

Jacob Dewitte: Then after that, going out and then working with their potential customers who then need to go through the actual licensing process to get a commercial operating license themselves. So that means their customers still have to go get a commercial operating license even if a reactor design company has a design certification because that's only a piece of what you ultimately need to get a commercial license and it's not needed to get a commercial license.

Speaker Change: stock-based compensation expenses, which was primarily driven by a one-time fair market value adjustment of $7.8 million related to earn-out shares that would be payable to Oakland staff who have vested options at the time of deal closure.

Craig Belmer: Full year 2024, our operating loss expectations are still in line with our prior guidance of 40 to 50 million that was noted in our Super 8-K file. Our year-to-date net loss of 53.3 million, including non-cash, fair market losses of 30 million associated with a safe note revaluation and 7.8 million losses in stock-based compensation. Both of these non-tash adjustments will require these back closing interest.

Speaker Change: Full year 2024, our operating loss expectations are still in line with our prior guidance of $40 to $50 million that was noted in our Super 8K filing.

Jacob Dewitte: So the design certification is not regulatory approval, but it's a step towards ultimately submitting an application that you're asking your customers to do to get that license. For us, we don't do any of that. We just go straight to the combined license approach. This is larger because of what we're doing on a business model side. We're owning these plans. We're not just trying to sell the designs or license off the design.

Speaker Change: Our year-to-date net loss of $53.3 million, including non-cash fair market losses of $30 million associated with a safe note revaluation, and $7.8 million losses in stock-based compensation.

Jacob Dewitte: So that means you go straight into licensing and allows us to build an operator plans which then says to stage for us to then pursue this one step licensing process and have the benefits of repeatability that this framework allows.

Craig Belmer: Both of these non-cash adjustments will require DSPAC's closing interest. Further details on our second quarter and year-to-date results can be found at the end of these materials and in our 10-Q, which will be posted to the investor section of Oklo's website. After the filing of our 10Q for the second quarter, we are looking forward to several upcoming investor events, including Canaccord Genuity's annual growth conference and Citi's one-on-one midstream and new energy infrastructure conference, both of which will occur later this week.

Speaker Change: Both of these non-cash adjustments will require DSPAC closing entries.

Craig Belmer: Further details on our second quarter and year-to-date results can be found at the end of these materials and in our 10-Q that will be posted to the Investors section of Oklo's website. Both the filing of our 10-Q for second quarter, we are looking forward to several upcoming investor events, including Canacorn Genewy's annual growth conference and Cities One-on-One Midstream and New Energy Infrastructure Conference, both which will occur later this week.

Speaker Change: Further details on our second quarter and year-to-date results can be found at the end of these materials and in our 10-Q that will be posted to the investor section of ONCLO's website.

Jacob Dewitte: One really important thing that's been developed in the past when they were developing these regulatory frameworks was the ability to subsequently license additional plans and then expedited in more efficient manner. What that means is that after you've licensed your first plan, you get a combined license for that first plan that becomes your reference license. Then every license you submit thereafter becomes a subsequent license. Another term is your reference license becomes your reference combined license and then your subsequent license because you're subsequent combined licenses.

Speaker Change: Post the filing of our 10Q for second quarter, we are looking forward to several upcoming investor events, including Canaccord Genuity's annual growth conference and Citi's one-on-one midstream and new energy infrastructure conference, both of which will occur later this week.

Jacob Dewitte: That benefits us because those subsequent reviews on the subsequent license applications are only focusing on the things that have changed from the reference application. That has significant benefits in terms of accelerating and reducing review timelines while also allowing us to scale rapidly into follow on plans.

Craig Belmer: In addition, we are scheduling an Ask Me Anything session with our executive team for later in the month of August.

Craig Belmer: In addition, we are scheduling an ask me anything session with our executive team for later in the month of August. So, finally, to close and emphasize the points made during this conversation, We believe there are six factors that make Oklo such a compelling investment proposition. First, technology and size, which is based on a proven fast reactor approach that we look to deploy at scale to reduce complexity, cost, and time to deliver. Second, an attractive business model that is customer-oriented and enables recurring revenue and profit.

Speaker Change: In addition, we are scheduling an Ask Me Anything session with our executive team for later in the month of August.

Craig Belmer: To finally close and emphasize the points made during this conversation, we believe there are six factors that make Oklo's such a compelling investment proposition. First, technology in size that is based on a proven, fast reactor approach that we look to deploy at scale to reduce complexity, cost, and time to delivery. Second, an attractive business model that is customer-oriented and enables recurring revenue and profits. Third, superior economics that look to deliver power and very competitive, levelized cost of energy. Fourth, a diverse and growing customer base with interests across six market sectors. Fifth, a streamlined approach to regulatory approval underpinned by our combined license application process that leverages years of experience in our work with the NRC.

Speaker Change: Finally, to close and emphasize the points made during this conversation.

Speaker Change: We believe there are six factors that make Oklahoma such a compelling investment proposition.

Speaker Change: First, technology and size that is based on a proven fast reactor approach that we look to deploy at scale to reduce complexity, cost, and time to delivery.

Speaker Change: Second, an attractive business model that is customer-oriented and enables recurring revenue and profits.

Jacob Dewitte: So on the design side, our product roadmap includes three reactor sizes to meet customer needs based on what we're seeing in the customer market and that span megawatt to gigawatt scale deployments. What's really about this is it also positions us to have the benefits of spanning across a bunch of different markets according to these size offerings. We've long known that there's not a one size fits all divine in the space. Instead, we wanted to start a small as we could for the aforementioned benefits, but then have a pathway to scale using the same technology.

Speaker Change: Third, superior economics that look to deliver power and very competitive levelized cost of energy.

Speaker Change: Fourth, a diverse and growing customer base with interest across six market sectors.

Speaker Change: Fifth, a streamlined approach to regulatory approval underpinned by our combined license application process that leverages years of experience in our work with the NRC.

Craig Belmer: And finally, a well-capitalized balance sheet that positions us well for the implementation of our business strategy.

Speaker Change: And finally, a well-capitalized balance sheet that positions us well for the implementation of our business strategy.

Jacob Dewitte: So we are currently offering a 15 megawatt and a 50 megawatt plan and are also developing a hundred to 200 megawatt plan as well. These are all very similar looking technologies as we scale up. It just slightly bigger from a physical footprint. We are targeting 15 and 50 megawatt ranges to start because based on the feedback we've seen from our customers, that's a really great size range to be in to meet their needs.

Operator: With that, I would like to thank you for your time, and Jake and I will now open the call for questions.

Craig Belmer: Third, superior economics that look to deliver power at a very competitive levelized cost of energy. Fourth, a diverse and growing customer base with interest across six market sectors. Fifth, a streamlined approach to regulatory approval underpinned by our combined license application process that leverages years of experience in our work with the NRC. And finally, a well-capitalized balance sheet that positions us well for the implementation of our business strategy. With that, I would like to thank you for your time, and Jake and I will now open the call to questions. Thank you. At this time, if you would like to ask a question, please press star 1 on your telephone keypad. You may remove yourself from the queue at any time by pressing star 2.

Speaker Change: With that, I would like to thank you for your time, and Jake and I will now open the call for questions.

Operator: Thank you. At this time, if you would like to ask a question, please press star one on your telephone keypad. You may remove yourself from the queue at any time by pressing star two. Once again, that is star one to ask a question. We'll pause for a moment to allow questions to queue.

Speaker Change: Thank you. At this time, if you would like to ask a question, please press star 1 on your telephone keypad. You may remove yourself from the queue at any time by pressing star 2. Once again, that is star 1 to ask a question. We'll pause for a moment to allow questions to queue.

Operator: Once again, that is Star 1 to ask a question. We'll pause for a moment to allow questions, and we'll go first to Vikram Bagri with Citi. Your line is open. Please go ahead. Hi, good afternoon, everyone. Very thorough update on the letter presentation release and prepared comments. Appreciate the color.

Jacob Dewitte: The numbers are very large around the opportunities to service some of these customers in these market, especially with what our business model is which is designing and owning and operating these plants and selling power to the direct customers. So when we talk about providing power directly to energy users, these sizes offer a good entry point to a number of different markets. And these projects can be quite large when they aggregate together.

Vikram Bagri: And we'll go first to Vikram Bagry with City. Your line is open. Please go ahead.

Speaker Change: And we'll go first to Vikram Bagri with Citi. Your line is open. Please go ahead.

Craig Belmer: Good afternoon, everyone. A very thorough update from the letter of presentation, release, and prepared comments; appreciate the color. To start off, very impressive increase in pipeline from 700 megawatts to 1.35 gigawatts now. The letter sites on the old sea merger as one of the drivers of the increase. I was wondering, like, what led to this meaningful increase in the pipeline? Is it due to more visibility from the merger, is it driven by data center AI power needs, or more liquidity now that you have to actively engage the customers and our progress on the regulatory front? If you can identify what sort of like driving this level of interest and what sectors are majorly contributing to this demand.

Vikram Bagri: Hi. Good afternoon, everyone. Very thorough update from the letter presentation release and prepared comments. Appreciate the color.

Vikram Bagri: To start off, a very impressive increase in the pipeline from 700 megawatts to 1.35 gigawatts now. The letter cites the Alt-C merger as one of the drivers of the increase. I was wondering what led to this meaningful increase in the pipeline. Is it due to more visibility from the merger? Is it driven by data center AI power needs or more liquidity now that you have to actively engage customers and our progress on the regulatory front? If you can identify what's sort of driving this level of interest. And what sectors are majorly contributing to this demand? Sure, Vic, it's Craig.

Jacob Dewitte: The reality too is that data centers are making up a vast majority of the market opportunity we see in front of us. While the numbers are very large around those opportunities, especially around the larger scale AI purpose data centers, these projects are not being deployed all at once at a one gigawatt or multi gigawatt scale instead they're ramping into it. It's phased growth through development process. When you're talking about these facilities as they grow up, they also need to have the ability to have power that meets their needs that which in other words is something that is always on with a high availability and high reliability.

Vikram Bagri: To start off, a very impressive increase in pipeline from 700 megawatts to 1.35 gigawatts now. The latter side, the Alt-C merger, as one of the drivers of the increase, I was wondering what led to this meaningful increase in the pipeline? Is it due to...

Speaker Change: more visibility from the merger? Is it driven by data center AI power needs or more liquidity now that you have to actively engage the customers and or progress on regulatory front? If you can identify what's sort of like driving this level of interest.

Jacob Dewitte: That means they need to have something that offers them that kind of in plus one generation footprint so that they are more or less confident to get the energy when they need it and how they need it. In other words, you're going to build more power capacity as you ramp up with your customers, which is a really exciting thing for us given our size where you need to be positioned to do it, but it also allows us to grow with them as they build out their overall footprints and they need their customer needs and therefore need more energy that goes forward.

Speaker Change: and what sectors are majorly contributing to this demand?

Craig Belmer: Sure, Vikram, it's Craig; I can take that. So the growth from 700 megawatts to the 1.31.4 megawatts was really the result of the things that we announced between deal announcement and deal closure. So that would be the Equinix transaction, Wyoming hyperscale, Diamondback Energy.

Craig Belmer: I can take that. So the growth from 700 megawatts to 1.3, and 1.4 gigawatts was really the result of the things that we announced between the deal announcement and deal closure. So that would be the Equinix transaction, Wyoming Hyperscale Diamondback Energy. But what we did see on May 10th was Jake, Jake's phone started to ring off the hook, and Brian's phone started to ring off the hook, with even more customers expressing interest.

Speaker Change: Sure, Vic. It's Craig. I can take that.

Craig: The growth from 700 megawatts to the 1.3, 1.4 gigawatts was really the result of the things that we announced between

Craig: deal announcement and deal closure. So that would be the Equinix transaction, Wyoming hyperscale, Diamondback Energy.

Jake Dewitte: But what we did see on May 10th is Jake's phone started to ring off the hook, and Brian's phone started to ring off the hook with even more customers expressing interest. But I think there probably was an element of some of those customers wanting to see if the deal would close and at what level the deal would close. And once it did, I think that gave them confidence to progress business development conversation. So I would actually think that as those conversations progress and when we do an update in the third quarter, that 1.3 to 1.4 gigawatt, we could be in a world where that figure could be higher, and we'll continue to work on those announcements or those deals with customers, and we hope to have more to announce in the coming month.

Jacob Dewitte: The important thing about this too, just to emphasize this one more time, is that we can build up to match where our customers are going as they grow their order book and their demand in a phased way. While also building an extra reactor that is providing power on standby for them, when they need it because at the end of the day, we have to take some of our plants offline every once in a while to service them or refuel them. That means we can deliver that full freight power solution for our customers and do so in a way that the economic will be attractive because we're not too large to do so.

Craig: But what we did see on May 10th is

Speaker Change: Jake, Jake's phone started to ring off the hook and Brian gets phone started to ring off the hook.

Craig Belmer: And I think there probably was an element of some of those customers wanting to see if the deal would close and at what level the deal would close. And once it did, I think that gave them confidence to progress business development conversations. So I think that as those conversations progress and when we do an update in the third quarter, you know, that 1.3 to 1.4 gigawatt, you know, we could be in a world where that figure could be higher, and we'll continue to work on those announcements or those deals with customers.

Speaker Change: with even more customers expressing interest. But I think there probably was an element of some of those customers wanting to see if the deal would close and at what level the deal would close. And once it did, I think that gave them confidence to progress business development conversation. So I would actually...

Speaker Change: I think that as those conversations progress.

Speaker Change: And when we do an update in the third quarter, you know, that 1.3 to 1.4 gigawatt, you know, we could be in a world where that figure could be higher, and we'll continue to work on those announcements or those deals with customers, and we hope to have more to announce in the coming months.

Jacob Dewitte: So our size is really in that sweet spot that matches very well with both the growth and the in-plus-one requirements that our data center customers have. And to dive a bit deeper on the data center side, one of the things that stood out to us in our engagement with potential customers is learning about what their energy needs really look like. We're finding that a data center or data center campus is often made up of a number of data halls as we like to call them.

Craig Belmer: And we hope to have more to announce in the coming month. Thanks, Greg, and then on a related note, the slides mentioned that you're looking at converting a lot of these letters of intent into PTAs later this year and next year. I was wondering if you could talk about how many of these cases you are doing site evaluations on?

Jake Dewitte: Thanks, Greg.

Jake Dewitte: And then, on the related note, the slides mentioned that you're looking at converting a lot of these later off intends into PPAs later this year, next year. I was wondering if you can talk about how many of these cases are you doing site evaluations? How are you thinking about doing site evaluations? And then how are you incorporating fuel costs in your PPAs when you convert these LOIs into PPAs? Will fuel costs be passed through?

Speaker Change: Thanks, Craig. And then on the relative note, the slides mentioned that you're looking at converting a lot of these letter of intents into PPAs.

Jacob Dewitte: Those data halls are what are built out kind of in building block fashion to fill out an ultimate facility or campus. We're finding that most of the data halls today that are being planned are planned to consume between 35 and maybe 50 megawatts each. So each company has a different architectures and different approaches, but we're seeing that there's a significant amount of upside and opportunity around where those data halls are. We also see some development that's on the smaller size power times between 10 and 20 megawatts. So at the end of the day, that gives us a really good position in the market to service a different range of power levels.

Vikram Bagri: How are you thinking about doing site evaluations? And then, how are you incorporating fuel costs in your PPAs when you convert these LOIs into PPAs? Will fuel costs be passed through?

Speaker Change: later this year, next year. I was wondering if you can talk about how many of these cases are you doing site evaluations? How are you thinking about doing site evaluations?

Speaker Change: And then, how are you incorporating fuel costs in your PPAs when you convert these LOIs into PPAs? Will fuel costs be...

Vikram Bagri: And then, finally, we've seen, you know, a significant increase in capacity prices in recent auctions. If you can also talk about the PPA rates that you're seeing in the market, it seems like those should be higher, much, meaningfully higher than what you had indicated at the time of the merger. Yeah, thanks Vikram. This is Jake.

Jake Dewitte: And then finally, we've seen a significant increase in capacity prices in recent auctions. If you can also talk about the PPA rates that you're seeing in the market, it seems like those should be higher, more uniquely higher than what you had indicated at the time of the merger.

Speaker Change: be passed through, and then finally.

Speaker Change: We've seen, you know, significant increase in capacity prices in recent auctions. If you can also talk about the PPA rates that you're seeing in the market, it seems like those should be higher, much meaningfully higher than what you had indicated at the time of the merger.

Jacob Dewitte: So in summary, when we think about our sites and our project opportunities, we're managing very well with how we see data center markets and other industrial markets developing. As we look at the market today based on the conversations we have with our partners and customers, we see that the ranges of power needed on a site by site or project by project or even sort of data center phase development project basis. They're typically looking at needing power between 10 and 20 or between 30 and 50 megawatts, while also needing that high reliability power, our ability to scale with them means we're really well positioned to build up.

Jake Dewitte: Yeah, thank you. From this is Jake. It's a good set of questions and a good, thoughtful set of questions. I think from a matriculation perspective, what we're excited about seeing is kind of a pool of LOIs that then set the days for us to start working with each of those customers as well as others in the pipeline that you know are coming forward and then identify basically site-specific considerations that move into the PPA negotiation process. So right now, we are actively looking at site exploration around several of the partners we've announced about where not just where to go, but where on their specific sites of land that they already have make the most sense to deploy.

Jake DeWitt: It's a good set of questions and a good thoughtful set of questions. I think from a matriculation perspective, what we're excited about seeing is kind of a pool of LOIs that then set the stage for us to start working with each of those customers, as well as others in the pipeline that, you know, are coming forward to then identify basically site-specific considerations that move into the PPA negotiation process. So right now, we are actively looking at, you know, site exploration around several of the partners we've announced about where to, not just where to go, but where on their specific sites of land that they already have makes the most sense to deploy.

Speaker Change: Yeah. Thank you, Kim. This is Jake.

Jake DeWitt: It's a good set of questions and a good, thoughtful set of questions. I think from a

Speaker Change: matriculation perspective, what we're excited about seeing is kind of a pool of LOIs that then set the stage for us to start working with each of those customers, as well as others in the pipeline that, you know, are coming forward to then identify basically site-specific considerations that move into the PPA negotiation process.

Jacob Dewitte: This position is quite differently than if you were to go in and say let's build one plant to provide all the power for facility. That's been hard to offer an in plus one dynamic because you would significantly have to over build your capacity. So in this illustration, if you had a 500 megawatt project to build 200 megawatt projects to provide in plus one, that would be a lot of stranded capacity. Whereas for 500 megawatt projects, we could build 10 50 megawatt plants within an additional 50 megawatt plant to 11 total to offer that in plus one reliability while also offering the same amount of power.

Speaker Change: So right now we are actively looking at site exploration around several of the partners we've announced.

Speaker Change: About where to where not just where to go but where on their specific sites of land that they already have make the most sense to to to deploy. So we're going through characterization process there. We have a methodology we've developed and we've been working on and.

Jake DeWitt: So we're going through a characterization process there. We have a methodology we've developed and we've been working on and basically executing against with our partners to identify what makes the most sense for their needs and for our needs. So those things all then play into the specific PPA terms and pricing development, and the LOIs; we try to set those forward at least at that stage to make sure we're all working in the same direction. But then that will help sort of fine-tune what's to be expected based on the specifics that evolved during the actual PPA negotiation process. PPA negotiations take a long time.

Jake Dewitte: So we're going through the characterization process there. We have a methodology we've developed, and we've been working on and basically executing again with our partners to identify what makes the most sense for their needs and for our needs. So those things all then play into them the specific PPA terms and pricing development, and the otherwise we try to set this forward, at least at that stage, to make sure we're all working in the same same direction, but then that will help sort of fine tune what's to be expected based on the specifics that evolved during the actual PPA negotiation process.

Speaker Change: Basically, executing against with our partners to identify what makes the most sense for their needs and for our needs. So, those things all then play into them the specific terms and pricing development.

Jacob Dewitte: Additionally, as customers build out, they're probably going to need 500 megawatts all at once. They're going to need it over time and that's that time might be a ramp up of two or five or more years. So they might start by needing 50 and then 100 and then 250 and then 500 megawatts in total as they scale forward. Well, that's great because we can build up and match that with them. That also gives us the benefits of ordering parts for the reactor and components to the reactor in volume just to meet one project.

Speaker Change: Otherwise, we try to set those forward at least at that stage to make sure we're all working in the same direction, but then that will help sort of fine-tune what's to be expected based on the specifics that evolved during the actual PPA negotiation process.

Jake Dewitte: PPA negotiation takes a long time. So we're excited to be in those discussions with several groups, and we're excited about more continuing to migrate into that space. That said, in terms of the question around fuel costs, I think what we're seeing in this pie is to the other part of your question, which is, you know, right now energy pricing is quite constructive to what we're doing because there's a significant demand uptake, of course, for a lot of reasons. You know, to your earlier question, if you look at the 650 megawatts we brought forward and announced here over the quarter second quarter, 600 of those megawatts were for data centers.

Vikram Bagri: So, you know, we're excited to be in those discussions with several groups, and we're excited about more kind of continuing to migrate into that space. That said, in terms of the question around fuel costs, I think what we're seeing, and this ties to the other part of your question, which is, you know, right now, energy pricing is quite constructive to what we're doing because there's a significant demand uptick, of course, for a lot of reasons. You know, to your earlier question, if you look at the 650 megawatts we brought forward and announced here in the second quarter, 600 of those megawatts were for data centers.

Speaker Change: PPA negotiations take a long time. So, you know, we're excited to be, you know, in those discussions with several groups and we're excited about more kind of continuing to integrate into that space.

Speaker Change: That said, in terms of the question around fuel costs.

Speaker Change: I think what we're seeing, and this ties to the other part of your question, which is right now energy pricing is quite constructive to what we're doing because there's a significant demand uptick, of course, for a lot of reasons.

Jacob Dewitte: Very different dynamic and building one plant to purposely build that. And if you built that 500 megawatt plant to fill that demand, you have a lot of stranded capacity while your customer ramp up that challenges some of the economics accordingly. So our model really works well to match where we see data center development moving as well as other industrial users and other power users.

Speaker Change: So, to your earlier question, if you look at the 650 megawatts we brought forward and announced here over the second quarter –

Jake DeWitt: So that is, I think, a somewhat reasonable approximation for the breakdown in customer input or engagement that we're seeing by sector. But accordingly, we're seeing obviously demand limited supply for power that's constructive to us. Of course, it allows us to monetize those benefits, you know, and have some leverage in that case, which is great. But since fuel is a scarce item for everybody on the nuclear side, scarcity is the wrong word.

Jake Dewitte: So that is, I think, a somewhat reasonable approximation for the breakdown in customer and engagement that we're seeing by sector. But, accordingly, we're seeing, obviously, demand limited supply for power that's constructive to us, of course. It allows us to monetize the benefits, you know, and have some leverage in that case, which is great. But since fuel is a scarce item for everybody in the nuclear side, scarcity is the wrong word. Since fuel is a pricing, I would say, volatile pricing input for everything in the nuclear side, right now, especially for new advanced plants. You know, we found that there's an openness to fuel cost pass-throughs.

Speaker Change: 600 of those megawatts were for data centers. So, that is, I think, a somewhat reasonable approximation for the breakdown in customer input – or, engagement that we're seeing by sector.

Craig Belmer: So with that, I'll go ahead and hand off to our CFO Craig who's going to take it over and talk to you about our business model. Craig? Thanks, Jake.

Speaker Change: But accordingly, we're seeing obviously demand limited supply for power that's constructive to us, of course.

Craig Belmer: As we highlighted at our investor-day presentation back in February of this year, slide 15 shows how we have developed and are implementing a business model with five key attributes that can be seen on the right-hand portion of this slide. Namely, the current cash flow from Power Purchase Agreements. We expect these contracts to be at least 20 years in duration, which support our build, own and operate business model. Second, capital-efficient approach to asset deployment, enabled by the size and technology foundational pillars, Jake discussed earlier.

Speaker Change: It allows us to monetize those benefits and have some leverage in that case, which is great.

Jake DeWitt: Since fuel is a pricing input, I would say volatile pricing input for everything on the nuclear side right now, especially for new advanced plants. You know, we found that there's an openness to fuel cost pass-throughs, and we have a unique advantage in the fact that, as we pursue recycling, it also opens the door for our customers to be quite open to having the discussion of fuel cost pass-through. If they can also then get the benefit of the fuel cost savings if recycling comes online when and if recycling comes online.

Speaker Change: But since fuel is a scarce item for everybody in the nuclear side, scarcity is the wrong word. Since fuel is a pricing, I would say a volatile pricing input for everything in the nuclear side right now, especially for new advanced plants.

Jake Dewitte: And we have a unique advantage in the fact that, you know, as we pursue recycling, it also opens the door for our customers to be quite open to having the discussion of fuel cost pass-through. If they can also then get the benefit of the fuel cost savings, if recycling comes on mine, when an effort cycling comes on mine. And so that creates a pretty, I think, favorable dynamic for us, so that we can, you know, not get hung up early on necessarily with some fuel pricing volatility, but have a pathway to get to market. And then, you know, that helps us drive the case for the recycling even tuner, which then helps us deploy more reactors and more cost altogether.

Speaker Change: we found that there's an openness to fuel cost pass-throughs. We have a unique advantage in the fact that as we pursue recycling, it also opens the door for our customers to be quite open to having the discussion of fuel cost pass-through, if they can also then get the benefit of the fuel cost savings, if recycling comes online, when and if recycling comes online. So that creates a pretty, I think, favorable dynamic for us.

Craig Belmer: Over time, this should allow us to reduce cost and asset construction time through purchasing economies of scale, as well as efficiencies that should come from deploying essentially the same asset over time. Third, these two factors should generate attractive asset returns on their own. In addition, we look to deliver up sides to those returns by accessing investment tax credits or ITCs and utilizing project financing against the long-duration PPAs. Fourth, longer-term, we are working to deploy fuel recycling technology, which should have the dual benefit of providing enhanced security to our fuel supply chain and potentially reduce our fuel cost by over 80% versus the cost of fresh fuel. And finally, a strong balance sheet to enable growth.

Jake DeWitt: So that creates a pretty, I think, favorable dynamic for us so that we can, you know, not get hung up early on necessarily with some fuel pricing volatility but have a pathway to get to market. And then, you know, that helps us drive the case for deploying your recycling even sooner, which then helps us deploy more reactors and lower costs altogether. Thanks, Jake. I have I have a couple more, and then I can jump back into the queue.

Speaker Change: So that we can, you know, not get hung up early on necessarily with some fuel pricing volatility, but have a pathway to get to market. And then, you know, that helps us drive the case for deploying your recycling even sooner, which then helps us deploy more reactors and lower costs altogether.

Jake Dewitte: Thanks, Jake. I have a couple more. And then I can jump back in with you.

Vikram Bagri: I was wondering if you can share, Jake, how many pre-filing discussions you've had so far and the letter indicates the 1st plant will be by 2027 versus the previous expectations of, you know, in 2026 or 27. See if I'm reading too much into the language or, you know, there is, you know, a slight delay in the timeline. And if you can just share how those conversations are going and how many hours of conversations you've had so far.

Speaker Change: Thanks, Jake. I have a couple more and then I can jump back into the queue.

Jake Dewitte: I was wondering if you can share, Jake, how many pre-filing discussions you've had so far. And the letter indicates the first plant will be by 2027 versus the previous expectations of, you know, in 2026 or 27. I was wondering if I'm reading too much into the language or, you know, there is, you know, a slight delay in the timeline. And if you can just share how those conversations are going and how many hours of conversations you've had so far. Yeah, and lots of conversations with the NRC. I think the latest tally in our slides is, you know, we've had, we've submitted about 55 draft and technical reports in the NRC, dating back through our engagement starting since 2016.

Speaker Change: I was wondering if you can share, Jake, how many pre-filing discussions you've had so far.

Craig Belmer: What is the completion of our merger with Alt-C? We believe that we are now well-capitalized to execute our business plans, which should be a significant competitive advantage. Slide 16 reflects that we expect this approach to asset and capital efficiency to create a strong position for our business in terms of our overall delivered levelized cost of energy or LCOE. Initially, we expect our first-of-a-kind or FOAC LCOE to be approximately $90 for megawatt This figure should improve as investment tax credits, scale economies, and improve project execution capabilities are utilized across our business. The overall ability to produce power 24 hours per day and at a high capacity factor should make our overall LCOE very competitive versus other clean energy alternatives.

Speaker Change: And the letter indicates the first plant will be by 2027 versus the previous expectations of, you know, in 2026 or 27. I was wondering if I'm reading too much into the language or...

Speaker Change: There is slight delay in the timeline, and if you can just share how those conversations are going and how many hours of conversations you've had so far.

Vikram Bagri: Yeah, lots of conversations with the NRC. I think the latest tally on our slides is, you know, we've had, we've submitted about 55 draft and technical reports to the NRC dating back to our engagement starting in 2016. We've had over 500 technical and planning meetings, so there is a lot of engagement. We continue at a pretty regular pace. I would say we're meeting on average for a few hours once every couple weeks right now as we ramp into the pre-application readiness assessment to then go forward.

Speaker Change: Yeah, lots of conversations with the NRC.

Speaker Change: I think the latest tally in our slides is, you know, we've had, we've submitted about 55 draft and technical reports to the NRC dating back through our engagement starting since 2016. We've had over 500 technical and planning meetings.

Jake Dewitte: We've had over 500 technical and planning meetings. It's a lot of engagement. We continue at a pretty regular pace through a meeting on average for a few hours once every couple of weeks right now as we ramp into pre-application readiness assessment to then go forward. That's helping us in the NRC make sure we define the scope of what we expect out of the readiness assessment appropriately and move forward from there. One really significant feature, but puts a lot more work on companies. But again, I think it's a significant feature is the flexibility that the NRC has in terms of how you can ultimately get a commercial license from pre-application all the way through licensing.

Speaker Change: It's a lot of engagement. We continue at a pretty regular pace.

Speaker Change: They were meeting on average for a few hours once every couple weeks right now as we ramp into the pre-application readiness assessment to then go forward. That's helping us in the NRC make sure we define the scope of what we expect out of the readiness assessment appropriately and move forward from there.

Jake DeWitt: That's helping us in the NRC make sure we define the scope of what we expect out of the readiness assessment appropriately and move forward from there. One really significant feature, but it puts a lot more work on companies, but again, I think it's a significant feature, is the flexibility that the NRC has in terms of how you can ultimately get a commercial license from pre-application all the way through licensing. So there's a huge menu of items you can choose from.

Craig Belmer: Finally, I would note that this chart does not reflect the potential upsides that can be achieved to the deployment of fuel recycling technology.

Craig Belmer: Moving on, one question we've been asked is how we plan to capitalize the business going forward. One of the benefits of the extremely low level of redemptions from our merger with Alt-C is that not only does it put us in a great position to execute our business plan, but also means we can be strategic as we develop and implement a go-forward financing strategy. Moving left to right on chart 17, you can see that over time we expect to utilize OCLOS equity in the form of cash on the balance sheet to finance anywhere from 25% to 35% of our projects with the remaining 65% to 75% being financed potentially through a mix of project financing, tax equity structures, and the DOE's loan program office.

Speaker Change: One really significant feature, but puts a lot more work on companies, but again, I think it's a significant feature, is the flexibility that the NRC has in terms of how you can ultimately get a commercial license from pre-application all the way through licensing.

Jake Dewitte: So there's a huge menu of items you can choose from. And what's nice then is each company can kind of pursue the path that makes the most sense for them. And for us, that works very favorably because of our business model, we're going straight to build on operate. We go straight to the license to actually build and operate the plan. As opposed to taking steps to get like a design certification and then have to go through the process we're going through, or take the steps to get a construction permit and then get an operating license.

Jake DeWitt: And what's nice then is each company can kind of pursue the path that makes the most sense for them. And for us, that works very favorably because, because of our business model, we're going straight to build and operate. We go straight to the, you know, license to actually build and operate the plant as opposed to taking steps to get like a design certification and then have to go through the process we're going through or take the steps to, you know, get a construction permit and then get an operating license.

Speaker Change: So, there's a huge menu of items you can choose from. And what's nice then is each company can kind of pursue the path that makes the most sense for them. And for us, that works very favorably, because of our business model, we're going straight to build and operate. We go straight to the license to actually build and operate the plant, as opposed to taking steps to get like a design certification.

Speaker Change: and then have to go through the process we're going through, or take the steps to get a construction permit, and then get an operating license.

Jake Dewitte: Instead, we do it all once, which has some significant efficiencies for us. Then similarly, on the pre-application side, as we ramp into preparing for submitting the application, you know, you can do all sorts of things in that pre-application practice to make sure you're moving forward. You're sort of retiring the risk of the company engaging as the pre-applicant accordingly and getting the right feedback with the NRC and helping the NRC accordingly prepare for review. So it's highly iterative. It's highly dynamic. We're engaging with them on the reactor front as well as now on that fuel recycling front and the larger scale fresh fuel fabrication front.

Jake DeWitt: Instead, we do it all at once, which has some significant efficiency benefits for us. And then similarly, on the pre-application side, as we ramp into preparing for submitting the application, you know, you can do all sorts of things in that pre-application process to make sure you're moving forward, you're sort of retiring the risk as the company engaging as the pre-applicant accordingly, and getting the right feedback with the NRC and helping the NRC accordingly prepare for a review. So it's highly iterative; it's highly dynamic.

Speaker Change: Instead, we do it all at once, which has some significant efficiencies for us.

Speaker Change: And then, similarly, on the pre-application side, as we ramp into preparing for submitting the application, you can do all sorts of things in that pre-application process to make sure you're moving forward, you're sort of retiring the risk as the company engaging as the pre-applicant accordingly, and getting the right feedback with the NRC, and helping the NRC accordingly prepare for review. So, it's highly iterative. It's highly dynamic. We're engaging with them on the reactor front, as well as now on the fuel recycling front and the larger scale fuel fabrication front. So, a lot of activity there. But at the end of the day, we're working to basically be in a position to submit an application as soon as we reasonably think we can get to, which is in next year.

Craig Belmer: We are currently assessing each of these options across a number of lenses and will provide further updates as our plans mature. As we have discussed numerous investor and analyst meetings, we believe it is clear that there is significant untapped demand for the clean, affordable and reliable power that nuclear and general plan deliver and that is ideally suited for Oklo's build own and operate business model.

Jake DeWitt: You know, we're engaging with them on the reactor front as well as now on the, you know, fuel recycling front and the larger scale, fresh, you know, fuel fabrication front. So a lot of activity there, but at the end of the day, you know, we're working to, you know, basically be in a position to submit an application as soon as we reasonably think we can get to, which is next year.

Jake Dewitte: So a lot of activity there, but at the end of the day, we're working to basically be in a position to submit an application. As soon as we reasonably think we can get to, which is the next year. So we're looking at having that application go in next year, followed by subsequent applications that come in in the latter part of next year. Depending on the timelines of how those PPAs and other things develop, to then have several and staggered review, and that's a big feature for model as well as the benefits that come from having multiple kind of in a staggered parallel review path.

Craig Belmer: On flight 18, we see four macro trends that are providing tailwinds to our industry which include increasing electricity demand, decreasing electricity capacity, grid reliability challenges and decarbonization targets. Moving to the next slide, the impact of this growth at the macro level is providing increased demand for Oklo's clean, reliable, affordable offer as reflected on flight 18. As we have previously discussed, we are targeting customers across the six market sectors reflected on this slide.

Jake DeWitt: Sort of looking at having that application go in next year, followed by subsequent applications to come in in the latter part of next year, depending on the timelines of how those PPAs and other things develop to then have several and staggered reviews.

Speaker Change: Sort of looking at having that application go in.

Speaker Change: Next year, followed by subsequent applications to come in in the latter part of next year, depending on the timelines of how those PPAs and other things develop to then have several and staggered review. And that's a big feature for our model as well as the benefits that come from having multiple kind of in a.

Jake DeWitt: And that's a big feature for our model as well as the benefits that come from having multiple kinds of in a staggered parallel review path. In terms of the timeline, I would say, you know, when we announced the deal, we were looking at 26, 2027. Kind of that was built somewhat under the context of us closing the deal and, you know, with the possibility that we could close the deal in 2023 because that ended up happening closer to the midpoint of 2024. I think that kind of delayed some of the deployment of the full capital to then start executing fully against that. So it kind of fully shifted us towards the 2027 date.

Jake Dewitte: In terms of the timeline, I would say, you know, when we announced the deal, we were looking at 26, 20, 20, 27. Kind of that was built somewhat under the context of us closing the deal and, you know, with the possibility that we could close the deal in 2023, because that ended up happening closer to the midpoint of 2024. I think that's where it kind of delayed some of the deployment of the full capital to then start executing fully against that. So it kind of fully shifted us towards the 2027 date. Additionally, there are some other factors that, you know, are on hand with respect to, you know, how we're working through on the supply chain and the site development and all those other pieces. But so far, those have largely been moving forward.

Speaker Change: Staggered Parallel Review Path.

Speaker Change: Bye.

Craig Belmer: In the 12 months, we have made announcements across each of these sectors with the exception of master plan communities, but we do have commercial discussions underway with customers in this sector as well. Overall, we believe the strong level of customer interest and traction demonstrates the applicability for our raw car houses across a variety of use cases and should create a very strong pipeline of business to underpin sizeable revenue growth.

Speaker Change: In terms of the timeline, I would say, you know, when we announced the deal, we were looking at 26, 20, 27.

Speaker Change: kind of that was built somewhat under the context of us closing the deal and, you know,

Speaker Change: With the possibility that we could close the deal in 2023, because that ended up happening closer to the midpoint of 2024, I think that's where it delayed some of the deployment of the full capital to then start executing fully against that. So it fully shifted us towards the 2027 date. Additionally, there are some other factors that are on hand with respect to.

Jake DeWitt: Additionally, there are some other factors that, you know, are on hand with respect to how we're working through the supply chain and the site development and all those other pieces. But so far, those have largely been moving forward reasonably well. You know, it's nice for our first plant that we have fuel awarded and allocated to us. We're not subject to some of the supply limitations for that first plant.

Craig Belmer: As reflected on the left bar on the slide 19, at the time of our announcement of our merger with ALT-C, we noted that we had over 700 megawatts of business that had been signed to a combination of memorandum of understanding and letters of intent. Since that time, we have made new announcements in the data center market sector with Equinix and Wyoming hyperscale as well as an announcement with Diamondback Energy in the oil and gas sector.

Speaker Change: You know, how we're working through on the supply chain and the site development and all those other pieces. But so far, those have largely been moving forward. Reasonably well, you know, it's nice for our 1st plant that we have fuel awarded and allocated to us. We're not subject to some of the supply limitations for that 1st plant.

Operator: Reasonably well, you know, it's nice for our first plan that we have fuel awarded and allocated to us. We're not subject to some of the supply limitations for that first plan. Of course, we will be for our subsequent plan. So that's why we partner this interest and others to actively work through that. But it's nice to take some of that risk for your first plan off the table, which is a big deal for us. So that's how that's kind of why the timeline is pretty firm up on the 27 date, and 26 is really just really achievable from the perspective of when the deal closed in 24 versus when there was a possibility of closing in 23.

Thomas Merrick: Of course, we will be for our subsequent plans. So that's why we partnered with Centrist and others to actively work through that. But it's nice to take some of that risk for your first plan off the table, which is a big deal for us. So that's kind of why the timeline is pretty firm on the 27 date, and 26 is really just isn't really achievable from the perspective of when the deal closed in 24 versus when there was a possibility of it closing in 23.

Speaker Change: Of course we will be for our subsequent plans so that's why we partnered with Centrist and others to actively work through that. But it's nice to take some of that risk for your first plan off the table which is a big deal for us.

Speaker Change: So that's how that's kind of why the timeline is pretty firm up on the 27 date and 26 is really just isn't really achievable from the perspective of when the deal closed in 24 versus when there was a possibility of it closing in 23.

Craig Belmer: These more recent announcements have also served to demonstrate our customer-oriented approach whereby we looked to deploy 50 megawatt powerhouses to meet the needs of those customers. I would also like to point out that this customer momentum is continuing.

Ryan Finks: Once again, if you would like to ask a question, please press star one on your telephone keypad now.

Thomas Merrick: Once again, if you would like to ask a question, please press star 1 on your telephone keypad now. We ask that you please limit yourself to one question and one follow-up, rejoining the queue for any additional questions. We'll move next to Thomas Merrick with Janie Montgomery. Good afternoon.

Craig Belmer: May 10th was not only Oakland's first day of trading on the New York Stock Exchange, but also a day where we saw sizable inbound inquiries from customers looking to buy our power from Oakland. As such, we expect to make more customer announcements during the remainder of 2024.

Speaker Change: Once again, if you would like to ask a question, please press star 1 on your telephone keypad now. We ask that you please limit yourself to one question and one follow-up, rejoining the queue for any additional questions.

Ryan Finks: We ask that you please limit yourself to one question and one follow-up, rejoining the queue for any additional questions.

Thomas Merrick: We'll move next to Thomas Merrick, with JD Montgomery. Good afternoon, congratulations on all the success there. Just wanted to start out on EBR2, and the question's really around capacity factor of sodium cool fast reactors, and what is the data suggest as you reviewed it that sodium cool fast reactor can hit on a real world capacity factor basis. And I'm asking just kind of with the perspective of we have a long deep history of operating large-ly water reactors at 90 and 92 percent capacity factor, and it took us a while to get there. How should I think about the time it'll take for your Gen 4 reactor to get to capacity factors in the 90s?

Thomas Merrick: Congratulations on all the success there. Just wanted to start out on EBR2. The question is really around the capacity factor of sodium-cooled fast reactors.

Speaker Change: We'll move next to Thomas Merrick with Janie Montgomery.

Jacob Dewitte: I would now like to turn back over to Jake. Thank you, Craig. As we talked about a bit before, we have some significant advantages with respect to our timing in the market as well as our product offering. After closing the business combination with ALT, we raised the significant amount of capital through that process, leading to a well-capitalized balance sheet to now execute against our plans. We are uniquely positioned in the advanced nuclear industry with respect to being the only company that has the site use permit to build our first plan and our national laboratory, the site use permit from the Department of Energy and having fuel that was competitively awarded to us from Idaho National Laboratory, both received in 2019.

Thomas Merrick: Good afternoon. Congratulations on all the success there. Just wanted to start out on EBR2. The question is really around the capacity factor of sodium-cooled fast reactors. And what does the data suggest as you've reviewed it that

Thomas Merrick: And what does the data suggest, as you've reviewed it, that... A sodium-cooled gas reactor can hit on a real world capacity factor basis. And I'm asking just kind of with the perspective that we have a long, deep history of operating large light water reactors at 90 and 92% capacity factor, and it took us a while to get there. How should I think about the time it'll take for your Gen 4 reactor to get to capacity factors in the future? Yeah, it's a great question and actually a really fun little nugget of information. That's not the easiest thing to pull out.

Speaker Change: a sodium-cooled gas reactor can hit on a real-world capacity factor basis.

Speaker Change: And I'm asking just kind of with the perspective of we have a long, deep history of operating large high water reactors at 90 and 92 percent capacity factor, and it took us a while to get there.

Speaker Change: And how should I think about the time it'll take for your Gen 4 reactor to get to capacity factors in the 90s?

Jacob Dewitte: That's on top of the significant regulatory traction we have today. Additionally, the differentiation with respect to our business model, our size and our technology may get well positioned to capitalize on the significant amount of opportunity in the market space building up today.

Jake Dewitte: Yeah, that's a great question and actually a real fun little nugget of information that's not the easiest thing to pull out. We developed all these amazing things in the nuclear industry that came out starting back in the 50s and 60s, of course, on paper. All of the great records of history and operations and all these things were largely paper-based for EBR-2 and for prior fast reactors as well as the Fast Flux Test Facility and FFTF. But FFTF and EBR2 are the plants we kind of most directly derive technical legacy and learning. Strong is kind of the latest iterations, if you will, from prior development in the U.S.

Speaker Change: Yeah, it's a great question and actually a real fun little nugget of information. That's not the easiest thing to pull out. We developed all of these amazing things in the nuclear industry that came out.

Jake DeWitt: We developed all these amazing things in the nuclear industry that came out starting, you know, back in the 50s and 60s, of course, on paper. So all of the great records of history and operations and all these things were largely paper-based for UBR-2 and for prior fast reactors as well as the Fast Flux Test Facility, FFTF. But FFTF and UBR-2 are the plants we kind of most directly derive technical legacy and learnings from as kind of the latest iterations, if you will, from prior development in the U.S.

Jacob Dewitte: Over the course of the next few years, we have a couple of exciting milestones to look out through. And as we think about the growth of the company, we're excited about the transition from turning our first plant on into growth and scale from there. Between now in 2027, we'll be working to deploy our first plant at Idaho National Laboratory. This is a fully commercial plant, and it's a plant that we have site use permit for, we have fuel for, and we have significant regulatory traction around. In parallel to this, we'll also be developing plants in other areas and other sites to meet our growing customer needs, and looking forward to ramping up our growth after 2027.

Speaker Change: Starting, you know, back in the 50s and 60s, of course, on paper, so all of the great records of history and operations and all these things were largely paper-based for EBR-2 and for

Speaker Change: prior fast reactors as well as the Fast Flux Test Facility, FFTF.

Speaker Change: But FFTF and EBR2 are the plants we kind of most directly derive technical legacy and learnings from. It's kind of the latest iterations, if you will, from prior development in the U.S.

Jake DeWitt: The reason I point out that they were on paper is it makes accessing that less scalable. Historically speaking, there's been a big effort to digitize all those records, which has been great. We've been pushing forward on that. We've been working, you know, and very thankful for the work that the National Labs and the Department of Energy have done to do that because that stuff is a treasure trove of information and data.

Jake Dewitte: The reason I point out that they were on paper is it makes accessing that less scalable, historical speaking. There's been a big effort to digitize all those records, which have been great. We've been pushing forward on that. We've been working in very thankful for the work that the National Labs and the Department of Energy is done to do that because that stuff is a treasure trove of information and data. But one of the great things that kind of stood out to this and one of the things that when I learned it back around the formation of the company was kind of mind blowing and the positive sense was EBR2 and FFTF both liquid sodium cool fast reactors actually achieved superior operating capacity factors and operating characteristics then commercial light water plants at the time achieved we're achieving.

Speaker Change: The reason I point out that they were on paper is it made accessing that less scalable. Historically speaking, there's been a big effort to digitize all those records, which has been great. We've been pushing forward on that. We've been working.

Jacob Dewitte: Over the course of the first and second quarters of this year, we had several major milestones. We closed the business combination and started trading on the New York Stock Exchange. We achieved a significant regulatory milestone with the Department of Energy with respect to our first fuel fabrication facility. We continued to advance our project in southern Ohio and entered into land agreements to deploy two plants there. We signed an L.O.Y, to supply 50 megawatts of power to diamond back energy in the Permian Basin in Texas.

Speaker Change: You know, and very thankful for the work that the National Labs and the Department of Energy has done to do that, because that stuff is a treasure trove of information and data. But one of the great things that kind of stood out to this, and one of the things that when I learned it,

Jake DeWitt: But one of the great things that kind of stood out about this and one of the things that when I learned about it, you know, back around the formation of the company, was kind of mind-blowing in a positive sense was EPR2 and FFTF, both liquid sodium fast reactors, actually achieved superior operating capacity factors and operating characteristics than commercial light water plants at the time were achieving. And to me, the thing that's great, you know, and there are reasons why, but what was even more incredible to me was that both of those reactors, their job was not to produce power; their job was actually to test materials and fuel.

Speaker Change: back around the formation of the company was kind of mind-blowing in a positive sense, was EBR2 and FFTF, both liquid sodium-cooled fast reactors, actually achieved superior operating capacity factors and operating characteristics than commercial light water plants at the time were achieving.

Jacob Dewitte: We signed an MOU with atomic alchemy, a radioisoto production company to collaborate on isotope production, particularly with the use of our fast neutrons, as well as the radioisotopes that are code products from our recycling facilities. We partnered with our Wyoming hyper scale to deliver 100 megawatts to its data centers. We achieved significant milestones with our Dawn National Laboratory, one of the leading experts in sodium and liquid metal fast reactor technologies, involving the use of their state-of-the-art thermal hydraulic testing facilities.

Jake Dewitte: And to me the thing that's great, you know, and there's reasons why, but what was even more like incredible about that to me was that both of those reactors, their job was not to produce power. Their job was actually to test materials and fuel. So they're moving stuff in and out of the reactor at a high cadence and a high frequency means you're shutting it down, turning it back on, turning it, intentionally doing all of that and they still be what was going on on the light water side. And they were contributing factors. You can pull out more information from occupational dose rates, other things like that that can affect and dictate sort of operational timing and maintenance timing and how you work around the plan on what you can service in the plan while operating and then having to take the plan offline.

Speaker Change: And to me, the thing that's great, you know, and there's reasons why, but what was even more like

Speaker Change: And what was incredible about that to me was that both of those reactors, their job was not to produce power, their job was actually to test materials and fuel. So they're moving stuff in and out of the reactor at a high cadence at a high frequency means you're shutting it down turning back on showing it intentionally doing all that, and they still be.

Jake DeWitt: So they're moving stuff in and out of the reactor at a high cadence at a high frequency, which means you're shutting it down, turning it back on, shutting it, intentionally doing all that, and they still beat what was going on on the light water side.

Jacob Dewitte: We also established what we announced earlier today, our preferred supply agreement for steam turbine generator products and services with SEMA's energy. We're very excited about this partnership because it is validation of our business model and our approach that we can leverage suppliers that make components for other purposes that we can directly use in our system. What we're buying from SEMA's looks very similar to what they make for fossil fire plants, and we're very excited about our partnership with them going forward.

Jake DeWitt: And they were contributing factors; you can pull out more information from occupational dose rates, other things like that that can affect and dictate sort of operational timing and maintenance timing and how you work around the plant and what you can service in the plant while it is operating and without having to take the plant offline. All of those things were actually, generally speaking, lower than what you were seeing commensurately at commercial light water plants.

Speaker Change: what was going on on the light water side. And there were computing factors, you can pull out more information from.

Speaker Change: Occupational dose rates, other things like that, that can affect and dictate sort of operational timing and maintenance timing and how you work around the plan and what you can service in the plan.

Jake DeWitt: And a lot of that was the inherent kind of design and, I would say, benefits of sodium fast reactor technology. The fact that it showed you could do those things was a huge validation point that you could achieve commensurate, if not superior, operating capacity factors. At the end of the day, I think we can slightly beat them, we can get up into the, you know, mid 90s. I think that is a trajectory we can get to potentially as we build out and get a lot of experience.

Jake Dewitte: And all of those things were actually, generally speaking, lower than what you were seeing commensurately at commercial light water plants. And a lot of I just see inherent kind of design and I would say benefits of sodium fast reactor technology. The fact that it showed you could do those things was a huge validation point that you could achieve commensurate, if not superior, operating capacity factors. At the end of the day, I think we can slightly be we can get up into the, you know, mid 90s. I think as a trajectory we can get to potentially as we build out and get a lot of experience.

Speaker Change: while operating and without having to take the plane offline. All of those things were actually generally speaking lower than what you were seeing commensurately at commercial light water planes.

Jacob Dewitte: We also continue to make progress to put in place numerous supplier contracts that would be critical to the deployment of our first Aurora plant at Idaho National Advertors, and for our supply chain that will be required to deploy a fleet of powerhouses. Contracting is underway for site preparation and fuel fabrication at INL, which we expect to ramp up during the remainder of 2024 and beyond. In most cases, we're at the commercial negotiation stage with key vendors, and hence are limited to the details we can provide at this time.

Speaker Change: And a lot of it is the inherent kind of design and, I would say, benefits of sodium fast reactor technology.

Speaker Change: The fact that it showed you could do those things was a huge validation point that you could achieve commensurate, if not superior, operating capacity factors. At the end of the day, I think we can slightly beat – we can get up into the mid-'90s, I think is a trajectory we can get to, potentially, as we build out and get a lot of experience.

Thomas Merrick: It's going to take some time to get there, though, because, like you pointed out, we have tons of operational experience with light water reactors. And a lot of that is directly applicable to us, but not all of it is. But luckily, there's experience with what we're doing in the past that was quite successful that we can draw from accordingly, and then benefit from that. So the fact that we're already starting at a better place than light water plants were, you know, 40, 50 years ago gives me a lot of confidence that we have a pretty good trajectory to actually, you know, outperform those technologies, at least match those technologies, if not outperform those technologies.

Jacob Dewitte: In addition, we recently announced that we have finalized our preferred supplier agreement with SEMA's energy, who will be providing steam turbine and generator technology as well as services for our fleet of powerhouses. We believe having an agreement with such a recognized name and SEMA's energy is unique for our industry and a testament to the type of partnership or agent that our business model unlocks not only for Oakville but for our key suppliers.

Jake Dewitte: It's going to take some time to get there though because, like you pointed out, we have tons of operational experience with light water reactors. And a lot of that is directly applicable to us, but not all of it is. But thankfully there's experience with what we're doing in the past. That was quite successful, that we can draw from accordingly and then benefit from that. So the fact that we're already starting at a better place than sort of light water plants were, you know, 40-50 years ago, to me, gives me a lot of confidence that we have a pretty good trajectory to actually, you know, outperform that those technologies, at least match the technology that's not outperform the technology.

Speaker Change: It's going to take some time to get there, though, because.

Speaker Change: Like you pointed out we have

Speaker Change: tons of operational experience with light water reactors. And a lot of that is directly applicable to us, but not all of it is. But thankfully there's experience with what we're doing in the past that was quite successful that we can draw from accordingly and then benefit from that.

Jacob Dewitte: Additionally, one of the exciting parts of this business is what we can do on the recycling front. Fast reactors have unique ability to recycle use fuel, and we've been actively pursuing this to diversify our fuel supplies and capitalize in the benefits of fuel recycling. This approach not only improves fuel economics, but also opens up additional revenue streams from the sale of co-products generated during the recycling process. This is the technology that has been demonstrated before, and that is in fact already operating at a small scale at national laboratories.

Speaker Change: So the fact that we're already starting at a better place than sort of light water plants were, you know, 40, 50 years ago, to me, gives me a lot of confidence that we have a pretty good trajectory to actually, you know, outperform those technologies, at least match those technologies, if not outperform those technologies.

Jake Dewitte: And as we work with potential customers, you know we generally build in some flexibility in how we want to scope what our early plants are going to be operating out from a capacity factor perspective. Just so we can obviously get through those sort of initial learning courage to get these things going into the higher end of the range of capacity factor that we can achieve. But it is the only technology that, in the meaningful way, actually outperform light water plants; everything else has actually been pretty significantly worse than light water. It's because light water is a great technology that's just happens to have some features that make it generally operable, or operator friendly, I should say.

Speaker Change: And as we work with potential customers, we generally build in some flexibility in how we want to scope what our early plants are going to be operating at from a capacity factor perspective, just so we can obviously get through those sort of initial learning curves to get these things going into the higher end ranges of capacity factors that we can achieve. But it is the only technology that, in a meaningful way, actually outperformed light water plants. Everything else has actually been pretty significantly worse than light water, because light water is a great technology. It just happens to have some features that make it fairly operable, or operator-friendly, I should say.

Jacob Dewitte: Our work with Argonne and our Department of Energy Partners has been focused on furthering the development of this technology to prepare for industrialization and scaling up operations We had several milestones in the last quarter, notably demonstrating the successful end-to-end recycling process with Argonne National Laboratory. We also continue to advance our regulatory engagement with the intersemitting white papers and holding pre-application meetings on several key topic areas.

Thomas Merrick: And as we work with potential customers, you know, we generally build in some flexibility in how we want to scope what our early plants are going to be operating at from a capacity factor perspective, just so we can obviously get through those sort of initial learning curves to get these things going into the higher end ranges of capacity factors that we can achieve. But it is the only technology that, in a meaningful way, actually outperforms light water plants.

Jake Dewitte: All super helpful. Thank you.

Jacob Dewitte: Finally, I mentioned this before, but we were also excited to advance and announce our strategic partnership with Atomic Alcoming. The company working on producing radio isotems. Our partnership entails work on using the fast new trends we produce for radio isotope production, as well as partnering with them to process code products from the recycling facility that can be packaged and sold into various industrial medical and other markets.

Jake Dewitte: Then on the demand side, just curious your thoughts around your defense applications, you know, just thinking of defense innovation solicitation promoted in the summer, thoughts around that, just microreactors that depends generally speaking, and then just kind of sneaking the last one in here, kind of an administrative question.

Speaker Change: All super helpful. Thank you. Then on the demand side, just curious your thoughts around.

Speaker Change: in defense applications, just thinking of defense innovation solicitation from earlier this summer, thoughts around that, just micro-reactors at defense generally speaking, and then just kind of sneaking the last one in here.

Jake Dewitte: But how do I think about programs with the DOD and our sea life and thing, and is there like a cross lock there that makes, you know, one more easier than the other, just generally how to think about those licensing programs, and that's it for me.

Speaker Change: It's kind of an administrative question, but.

Jacob Dewitte: So going forward, we look forward to keeping the market up to date on our progress in six major areas. Reactor licensing progress, customer pipeline development, project execution, the development of fuel recycling, strategic partnerships, as well as financial updates.

Speaker Change: How do I think about –

Speaker Change: programs with the DOD and NRC licensing and is there like a crosswalk there that makes

Speaker Change: one more easier than the other, just generally how to think about those licensing.

Craig Belmer: So with that, I'll hand it over to our CFO Craig again. Craig. Thanks, Jake.

Jake Dewitte: Yeah, yeah, of course, and great questions. I'm the sort of on the defense engagement. You know, we've been actively working obviously with the different departments or the different branches. The Department of Defense for some time. You know, a year ago, we were awarded the first round, or awarded initially for the House and project up in Alaska as the threat of a protest, the kind of conservative cautious procurement actions that there's, you know, very common today in terms of the protest cycle, the Defense Department that was then pulled back to then update the review. It was then re-awarded to us in February.

Thomas Merrick: Everything else has actually been pretty significantly worse than light water because light water is a great technology. This just happens to have some features that make it fairly operable, or operator-friendly, I should say. All super helpful, thank you.

Speaker Change: new programs.

Speaker Change: And that's it for me, thanks. Yeah.

Craig Belmer: Both Oklo and Alcy are very pleased with the outcome of our merger, which close on May 9, 2024. Slide 27 demonstrates several of the key outcomes of this transaction, whereby a record 0.002 percent of redemptions translated into gross proceeds of over 300 million dollars. After associated fees over 276 million dollars in cash moved on to Oklo's balance sheet that is being used to fund our business. We believe the attractive pre-money valuation of 875 million, which also included the Equinix pre-payment for power, as well as the straightforward nature of the deal that resulted in one class of common stock with no wars or pipe were also critical drivers of this successful outcome.

Thomas Merrick: And then on the demand side, just curious about your thoughts around defense applications, just thinking of the defense innovation solicitation from earlier this summer, thoughts around that, just micro reactors at defense, generally speaking, and then just kind of sneaking the last one in here, kind of an administrative question, but how do I think about... Programs with the D. O. D, and NRC licensing, and is there like a crosswalk there that, one more easier than the other, just generally how to think about those licenses and programs? And that's it for me.

Thomas Merrick: Thanks. Yeah, of course. Great questions on the sort of defense engagement. You know, we've been actively working, obviously, with the different departments and the different branches in the Department of Defense for some time. A year ago, we were awarded the first round on the initially awarded for the house and project up in Alaska. That had been a threat of a protest against that kind of conservative, cautious procurement actions that is very common today. And in terms of the protest cycle, the Department that was then pulled back to then update the review. It was then reawarded to us in February.

Speaker Change: Department of Defense for some time.

Speaker Change: A year ago, we were awarded the first round, or awarded initially, for the Iowasan project up in Alaska, as that had been a threat of a protest, the kind of conservative, cautious

Speaker Change: Procurement actions that is very common today and in terms of the protest cycle of the Department that was then pulled back to then update the review, it was then re awarded to us in February. Then there was a protest file that was pulled in March it's going through the next updates there, given the cadence before was about 6 months, you know, we expect, you know, hopefully that will be entering into kind of an update on that front as well. The fact we were awarded it twice.

Jake DeWitt: Then there was a protest file that was pulled in March. It's going through the next updates there, given the cadence before was about six months. You know, we expect, you know, hopefully that we'll be entering into kind of an update on that front as well. The fact we were awarded it twice gives us some confidence.

Jake Dewitte: Then there was a protest file that was pulled in March. It's going through the next updates there. Given the cadence before, it was about six months. You know, we expect, you know, hopefully that will be entering into kind of an update on that front as well. The fact we were awarded it twice gives us some confidence, but of course, we'll see kind of where that moves.

Craig Belmer: As part of our public offering as seen on slide 28, Oklo established a new world class board of directors with individuals with backgrounds in defense, oil and gas, power generation, capital markets, and artificial intelligence. This deep expertise will benefit Oklo as the company executes on its business plan to deliver its vision. Oklo is also lucky to have an experienced management team with a broad spectrum of backgrounds from large Fortune 500 companies, as well as relevant government agencies, including the U.S. Department of Energy and Nuclear Focus Research institutions, such as the Idaho National Laboratory.

Jake DeWitt: But of course, we'll see kind of where that moves. The thing is, is we're offering something based on that call. And then if you look at the Defense Innovation Unit kind of call, it's pretty well aligned with what they're looking for, in terms of business model, and we have some flexibility to get down into the size ranges they want, they want to be looking at, we're not going to be serving the one megawatt and kind of small scale, we see a lot more opportunity, obviously, at the higher ends of those ranges, but we can, we can definitely perform and deliver a very competitive and attractive solution.

Jake Dewitte: The thing is, is we're offering something based on that call, and then if you look at the Defense Innovation Unit kind of call, it's pretty well aligned with what they're looking for. In terms of business model, and we have some flexibility to get down into the size ranges they want to be looking at. We're not going to be serving the one megawatt and kind of small scale. We see a lot more opportunity, obviously, with the higher end of those ranges, but we can definitely perform and deliver a very competitive and attractive solution. So, you know, we're good to see how those projects and those things develop.

Speaker Change: It gives us some confidence.

Speaker Change: But of course, we'll see kind of where that moves.

Speaker Change: The thing is, is we're offering something based on that call, and then if you look at the Defense Innovation Unit kind of call, it's pretty well aligned with what they're looking for in terms of business model, and we have some flexibility to get down into the size ranges they want to be looking at. We're not going to be serving the one megawatt in kind of small scale. We see a lot more opportunity, obviously, at the higher ends of those ranges, but we can definitely perform and deliver a very competitive and attractive solution. So we're going to see how those projects and those things develop. At the end of the day, the energy needs that we've learned from the Defense Department and what they project forward is quite diverse in offerings. So there's going to be, I think, multiple solutions that can offer – well, multiple companies that can offer different solutions that are successful for them, and we see ourselves being positioned to take advantage of that.

Jake DeWitt: So, you know, we're going to see how those projects and those things develop at the end of the day, the, the energy needs that we've learned from the Defense Department, and what they project forward is quite diverse in offerings. So there's going to be, I think, multiple solutions that can that can, you know, offer what multiple companies that can offer different solutions that are successful for them. And if we see ourselves being positioned potentially to be one of those, especially given our sort of prior success there.

Jake Dewitte: At the end of the day, the energy needs that we've learned from the Defense Department and what they project for it is quite diverse and offerings. So there's going to be, I think, multiple solutions that can, you know, offer, well, multiple companies that can offer different solutions that are successful for them.

Craig Belmer: Moving to slide number 30, we know that there have been some questions posed to close of our transaction regarding shareholder lockups. Post-deal completion, our total outstanding share account is slightly over 122 million shares. Of those outstanding shares, our co-founders, as well as our chairman, and the alt C sponsor, are under multi-year lockups that include an early release mechanism for share price appreciation, with triggers at $12, $14, and $16 per share. These lockups represent approximately 34% of total shares outstanding.

Jake Dewitte: And if we see ourselves being positioned potentially to be one of those, especially given our sort of prior success there, one of the things that was part of the Air Force call was they wanted it to be licensed with the Nuclear Regulatory Commission. But generally speaking, and there's a lot of new ones here, but generally speaking, the Defense Department can actually authorize their own, you know, nuclear plans. So that is a pathway some are looking at pursuing; some of the branches and some deployment cases are looking at, as well as the potentiality. The thing we like about that is it provides sort of a, in our perspective, a backup option to the NRC, but it also provides a good sort of motivation that, hey, look, this is something that can be done, but the preference is that the NRC does it, and the preference isn't based on just wishing and hopeful thinking. You know, the Air Force has been around some of the NRC meetings dating back to 2018, maybe even earlier, but like they've been engaging there to know that this is something that they have confidence that can be done, right?

Jake DeWitt: One of the things that was part of the Air Force call was they wanted it to be licensed with the Nuclear Regulatory Commission, but generally speaking, and there are a lot of new ones here, but generally speaking, the Defense Department can actually authorize its own, you know, nuclear plans.

Speaker Change: potentially to be one of those, especially given our.

Speaker Change: sort of prior success there. One of the things that was part of the Air Force call was they wanted it to be licensed with the Nuclear Regulatory Commission, but.

Speaker Change: Generally speaking, and there's a lot of new ones here, but generally speaking, the Defense Department can actually authorize their own.

Jake DeWitt: So that is a pathway some are looking at pursuing some of the branches, and some deployment cases are looking at as well as the potential. The thing we like about that is it provides sort of, in our perspective, a backup option to the NRC, but it also provides a good sort of motivation that, hey, look, this is something that can be done, but their preference is that the NRC does it. And their preference isn't based on just wishing and hopeful thinking; the Air Force has been around some of these NRC meetings dating back to 2018.

Speaker Change: Nuclear plans. So that is a pathway. Some are looking at pursuing some of the branches and some deployment cases are looking at as well as the potentiality.

Craig Belmer: In addition, we have a few early stage investors who are subject to 180-day lockup from the transaction date that equate to roughly 11% of shares outstanding. All other original investors did not have lockups, which were therefore freely tradable on May 10th, which resulted in no sizable overhang on the stock.

Speaker Change: The thing we like about that is it provides sort of a, in our perspective, a backup option to the NRC, but it also provides a good sort of motivation that, hey, look, this is something that can be done, but their preference.

Speaker Change: is that the NRC does it, and their preference isn't based on just wishing and hopeful thinking. You know, the Air Force has been around some of these NRC meetings dating back to 20-

Jake DeWitt: Maybe even earlier, but they've been engaging there to know that this is something that they have confidence that can be done, right? I can't speak fully for them, but from what we've seen, you know, what they've identified is what's important about what they're offering. Empowering these bases is mission critical for them, so they aren't going to be sort of jeopardizing that with some hopeful thinking about what a regulator can do instead. I think they made those decisions intentionally based on what they expected to be able to do.

Craig Belmer: Moving on to our financial highlights. Year-to-day, Oakland's cash use and operations, $17 million, made up of a net loss of $53.3 million, offset by $38.9 million in non-cash impacts, the main drivers of which I will highlight momentarily. At the end of second quarter, cash and marketable securities were 294.6 million, primarily driven by the 276 million in proceeds, net affees received the closures. Year-to-date are operating loss of 25.1 million, included $9.2 million of non-tash, stock-based compensation expenses, which was primarily driven by a one-time, fair market value adjustment of 7.8 million related earn-out shares that would be payable to Oklo staff who have vested options at the time of deal closures.

Speaker Change: 18, maybe even earlier, but they've been engaging there to know that this is something that they have confidence that can be done, right? I can't speak fully for them, but from what we've seen, what they've identified is what's important about what they're offering.

Jake Dewitte: I can't speak fully for them, but from what we've seen, are, you know, what they've identified is what's important about what they're offering. These, you know, powering these bases is mission critical for them. So they aren't going to be sort of jeopardizing that with some hopeful thinking about what a regulator can do, and I think they made the decision intentionally based on what they expect to be able to be done. That said, they also have optionality, which gives them great positioning, and we see that as, generally speaking, a broad benefit for everybody. That's included as well as others.

Speaker Change: Empowering these bases is mission critical for them. So they aren't gonna be sort of jeopardizing that with some hopeful thinking about what a regulator can do. Instead, I think they made those decisions intentionally based on what they expect to be able to be done.

Jake DeWitt: That said, they also have optionality, which gives them great positioning, and we see that as, generally speaking, a broad benefit for everybody, us included, as well as others. So that's kind of how we see that playing out. The nice thing for us, in general, it's sometimes very nice to work with government-owned land because it's well understood. It can also be a challenge, obviously, because it comes with the fact that it might have other things around it on it, but at the end of the day, there are some benefits there.

Speaker Change: That said, they also have optionality, which gives them great positioning, and we see that as, generally speaking, a broad benefit for everybody, us included, as well as others. So that's kind of how we see that playing out. The nice thing for us in general, it's sometimes very nice to work with government-owned land because it's well understood.

Jake Dewitte: So that's kind of how we see that playing out.

Jake Dewitte: The nice thing for us, in general, it's sometimes very nice to work with government-owned land, because it's well understood. It can also be challenged, obviously, because it comes with the fact that it might have other things around and on it. But at the end of the day, there are some benefits there. So our model of being able to cite where a customer wants us, including on their lands, worked pretty favorably for us and for the off-pickers.

Speaker Change: It can also be challenged, obviously, because it comes with the fact that it might have other things around it on it, but at the end of the day, there are some benefits there. So our model of being able to site where a customer wants us, including on their land, works pretty favorably for us and for the off takers.

Jake DeWitt: So our model of being able to site where a customer wants us, including on their land, works pretty favorably for us and for the offtakers. Jake, it's also one of the reasons why we were really glad to get somebody like retired General Jansen on our board to get insights into that market sector. I would also note that, you know, I think this call was scheduled to end at p.m. Eastern Standard Time, but Jake and I are more than happy to stay on and continue answering questions. We'll move next to Ryan Finks with B. Reilly.

Craig Belmer: Full year 2024, our operating loss expectations are still in line with our prior guidance of 40 to 50 million that was noted in our Super 8K file. Our year-to-date net loss of 53.3 million, including non-tash, fair market losses of 30 million associated with a safe note revaluation and 7.8 million losses in stock-based compensation. Both of these non-tash adjustments will require these back closing interest.

Jake Dewitte: Jacob is also one of the reasons why we were really glad to get somebody like retired General Janssen on our board to get insights around that market sector.

Jake DeWitt: Jake, it's also one of the reasons why we were really glad to get somebody like retired General Janssen on our board to get insights around that market sector. I would also note that, you know, I think this call was scheduled to end at 7.

Operator: I would also note that, you know, I think this call the scheduled end of XPM Eastern Standard Time, but Jake and I are more than happy to stay on and continue answering questions.

Jake DeWitt: 6 p.m. Eastern Standard Time but Jake and I are more than happy to stay on and continue answering questions.

Ryan Finks: We'll move next to Ryan Finks with B.

Ryan Finks: Riley. Hey guys, thanks for taking my questions. Just curious, are you seeing a difference in demand between the 15 and 50 megawatt plants? You know, maybe if we're looking at the pipeline, how would that break down between the two? Yeah, so it's a great question, Ryan. So I think if you actually look at, you know, the things that were announced when I started with the company back in August of last year, so the projects in Ohio, the project in Idaho, the project at Ellison, those were all in the 15 megawatt size range, but most of the things that we've announced, subsequent to that, it's really caused that growth in the order book is more in the 50-50 megawatt size range.

Craig Belmer: Further details on our second quarter and year-to-date results can be found at the end of these materials and in our 10Q that will be posted to the Investors section of Oklo's website. Both the filing of our 10Q for second quarter, we are looking forward to several upcoming investor events, including Canacorn Genewy's annual growth conference and cities one-on-one midstream and new energy infrastructure conference, both which will occur later this week. In addition, we are scheduling an Ask Me Anything session with our executive team for later in the month of August.

Speaker Change: We'll move next to Ryan Finks with B. Reilly.

Ryan Finks: Hey guys, thanks for taking my question. Just curious, are you seeing a difference in demand between the 15 and 50 megawatt plants? Maybe if we're looking at the pipeline, how would that break down between the two? Yeah, so it's a great question, right?

Ryan Finks: Hey guys, thanks for taking my questions.

Ryan Finks: Just curious, are you seeing a difference in demand between the 15 and 50 megawatt plants? You know, maybe if we're looking at the pipeline, how would that break down between the two? I don't know. We'll see.

Craig Belmer: So I think if you actually look at the things that were announced when I started with the company back in August, this is last year. So the projects in Ohio, the project in Idaho, the project at Allison, those were all in the 15 megawatt size range. But most of the things that we've announced subsequent to that, that's really caused the growth in the order book to be more in the 50-50.

Speaker Change: Yeah, so it's a great question, right? So I think if you actually look at, you know, the things that were announced when I started with the company back in August.

Speaker Change: I guess of last year, so the projects in Ohio, the project in Idaho, the project at Allison, those were all in the 15 megawatt size range, but most of the things that we've announced.

Craig Belmer: To finally to close and emphasize the points made during this conversation, we believe there are six factors that make Oklo's such a compelling investment proposition. First, technology in size that is based on a proven, fast reactor approach that we look to deploy at scale to reduce complexity, cost, and time to delivery. Second, an attractive business model that is customer-oriented and enables recurring revenue and profits. Third, superior economics that look to deliver power and very competitive, levelized cost of energy.

Craig Belmer: Fourth, a diverse and growing customer base with interests across six market sectors. Fifth, a streamlined approach to regulatory approval underpinned by our combined license application process that leverages years of experience in our work with the NRC. And finally, a well-capitalized balance sheet that positions us well for the implementation of our business strategy.

Speaker Change: Subsequent to that, that's really caused that growth in the order book is more in the 50-50.

Craig Belmer: I go in the wide size range, Jake, and I were also in a meeting a couple of weeks ago at our headquarters with a potential data center customer. You know, and 1 of the things that was great about that conversation was getting into the details.

Craig Belmer: Jake and I were also in a meeting a couple of weeks ago in our headquarters with a potential data center customer. You know, one of the things that was great about that conversation is getting into the details of how they are thinking about deploying data centers at a greenfield site and how might we match up a deployment schedule of 50 megawatt powerhouses to support that. So I think it's just also an example of, you know, we're trying to be customer-oriented and customer responsive, you know, and I think now our order book kind of reflects that with probably more things in the 50 megawatt size than the 15.

Speaker Change: I go out of size range.

Speaker Change: Jake and I were also in a meeting a couple of weeks ago at our headquarters with a potential data center customer. One of the things that was great about that conversation is getting into the details of

Craig Belmer: How are they thinking about deploying data centers at a greenfield site and how might we match up a deployment schedule of 50 megawatt powerhouses to support that? So, I think it's just also an example of, you know, we're trying to be customer-oriented and customer responsive, you know, and I think now our order book kind of reflects that with probably more things in the 50 megawatt size in the 15. Got to appreciate that color, Craig. What about any update on how you're thinking about the estimated construction and fuel costs for your plants? I know we've spoken about 70 million ish dollars being a good target for the 15 megawatt version, but wondering if you have an update there.

Speaker Change: How are they thinking about, um.

Speaker Change: Deploying data centers that a greenfield site and how might we match up a deployment schedule of 50 megawatt powerhouses to support that. So I think it's just also an example of, you know, we're trying to be.

Speaker Change: customer-oriented and customer-responsive. I think now our order book reflects that with probably more things in the 50 megawatt size than the 15.

Craig Belmer: Got to appreciate that color, Craig.

Craig Belmer: What about any update on how you're thinking about the estimated construction and fuel costs for your plants? I know we've spoken about 70 million-ish dollars being a good target for the 15 megawatt version, but wondering if you have an update there. You know, so if you looked at our investor-day material, I don't have it right in front of me, but you know, the 50 megawatt size is, I think, at first of a kind of about $145 million. It decreases, you know, when we apply some of those economies of scale. Fuel costs have gone up since that time, so I think we would see an increase on that number. But also, as we were speaking earlier, just the overall demand and power and the pricing around PPAs is also going up to help offset.

Sam Doane: With that, I would like to thank you for your time and Jake and I will now open the call for questions. Thank you.

Speaker Change: Got to appreciate that color Craig. What about any update on how you're thinking about the estimated construction and fuel costs for your plants? I know we've spoken about 70 million ish dollars being a good target for the 15 megawatt version but wondering if if you have an update there.

Operator: At this time, if you would like to ask a question, please press star one on your telephone keypad. You may remove yourself from the queue at any time by pressing star two. Once again, that is star one to ask a question.

Craig Belmer: You know, so if you look at our Investor Day materials, I don't have it right in front of me, but you know, the 50 megawatt size is I think our first of a kind with about a hundred and forty five million dollars. It decreases when we apply some of those economies of scale. He'll costs have gone up since back in time.

Operator: We'll pause for a moment to allow questions to queue.

Speaker Change: [inaudible]

Speaker Change: So if you looked at our investor day materials, I don't have it right in front of me, but the 50 megawatt.

Vikram Bagri: And we'll go first to Vikram Bagry with City. Your line is open. Please go ahead.

Speaker Change: Size is, I think our 1st of a kind was about 145M dollars. It decreases, you know, when we apply some of those economies of scale, he'll cost have gone up since that.

Craig Belmer: Good afternoon, everyone. A very thorough update from the letter of presentation, release and prepared comments, appreciate the color. To start off, very impressive increase in pipeline from 700 megawatts to 1.35 gigawatts now. The letter sites on the old sea merger as one of the drivers of the increase, I was wondering like what led to this meaningful increase in the pipeline is it due to more visibility from the merger, is it driven by data center AI power needs or more liquidity now that you have to actively engage the customers and our progress on regulatory front if you can identify what sort of like driving this level of interest and what sectors are majorly contributing to this demand.

Ryan Finks: So I think we would see, you know, an increase in that number. But also, as we were speaking earlier, just the overall demand and power and the pricing around PPAs is also going up to help offset it. The other thing that does help us a bit is in all of those financials that we showed back at investor day. We were not assuming any benefit from ITCs, but the ITC actually goes against both the asset cost and the fuel cost.

Speaker Change: At times, so I think we would see an increase on that number, but also as we were speaking earlier, just the overall demand and power and.

Speaker Change: And the pricing around PPAs is also going up to help offset. The other thing that does help us a bit is, in all of those financials that we showed back in the investor day.

Craig Belmer: The other thing that does help us a bit is in all of those financials that we showed back in the investor day. We were not assuming any benefit from ITCs, but the ITC actually goes against both the asset cost and the fuel cost, so there is a little bit of an element of the ITC bid in that 30-40% range that can act as a hedge against those inflationary pressures.

Speaker Change: We were not assuming any benefit from ITCs, but the ITC actually goes against both the asset cost and the fuel cost, so there is a little bit of an element of the ITC, be it in that 30 to 40 percent range that can act as a hedge against those inflationary pressures.

Craig Belmer: So there is a little bit of an element of the ITC bid in that 30 to 40 percent range that can act as a hedge against inflationary pressures. We'll go to our next question from Jeffrey Campbell with Seaport Research Partners. Good evening, and thank you for all the color.

Jeffrey Campbell: We'll go to our next question from Jeffrey Campbell with Seaport Research Parts. Good evening, and thank you for all the color.

Speaker Change: We'll go to our next question from Jeffrey Campbell with Seaport Research Partners.

Craig Belmer: Sure, Vikram, it's Craig, I can take that. So the growth from 700 megawatts to the 1.31.4 megawatts was really the result of the things that we announced between deal announcement and deal closure. So that would be the Equinix Transaction, Wyoming Hyperscale, Diamondback Energy. But what we did see on May 10th is Jake's phone started to ring off the hook and Brian gets phone started to ring off the hook with even more customers expressing interest.

Jeffrey Campbell: As you think about possible Title 17 loan applications, does this effort aim more toward installations after the announcement? National Laboratory installations, and if so, Are you thinking more about a project-by-project type of financing or perhaps multiple projects in one effort? I think, Jeff, at this point, we're probably looking at both of those scenarios. And there's probably a middle ground that if we do have a project that is made up of more than one powerhouse, you could actually bundle that up as well as we look at exploring financing strategies.

Jeffrey Campbell: Good evening and thank you for all the color. As you think about possible Title 17 loan applications,

Jeffrey Campbell: As you think about possible Title 17 loan applications, is this effort aimed more toward installations after the initial, I don't know, national laboratory installation, and so are you thinking more about a project-by-project type of financing or perhaps multiple projects and one application? I think Jeff at this point were probably looking at both of those scenarios, and there's probably a middle ground that if we do have a project that is made up of more than one powerhouse, you could actually bundle that up as well as we look at exploring financing strategies. The other thing I try to call out in the fly that looked at that mix of, you know, for each project how much is coming from cash off the balance sheet versus financing structures.

Jeffrey Campbell: Is this effort aimed more toward installations after the initial Idaho National Laboratory installation? And if so, are you thinking more about a project-by-project type of financing or perhaps multiple projects in one application? Thank you.

Jeffrey Campbell: I think, Jeff, at this point, we're probably looking at both of those scenarios.

Craig Belmer: But I think there probably was an element of some of those customers wanting to see if the deal would close and at what level the deal would close. And once it did, I think that gave them confidence to progress business development conversation.

Speaker Change: And there's probably a middle ground that if we do have a project that is made up of more than one powerhouse, you know, you could actually bundle that up as well as we look at exploring.

Jake Dewitte: So I would actually think that as those conversations progress and when we do an update in the third quarter, that 1.3 to 1.4 gigawatt, we could be in a world where that figure could be higher and we'll continue to work on those announcements or those deals with customers and we hope to have more to announce in the coming month. Thanks, Greg. And then on the related note, the slides mentioned that you're looking at converting a lot of these later off intends into PPAs later this year, next year.

Jeffrey Campbell: The other thing I tried to call out on the slide that looked at that mix of Now, for each project, how much is coming from cash off the balance sheet versus financing structures? You know, 1 of the things that Graham Johnson, who's our treasurer, and I are starting to look at is overall what would be the right mix around tax financing structures, things like the loan program office as well as project management.

Speaker Change: financing strategies. The other thing I tried to call out in the slide that looked at that mix of

Graham Johnson: You know, for each project, how much is coming from cash off the balance sheet versus financing structures, you know, 1 of the things that Graham Johnson, who's our treasurer and I are starting to look at.

Jeffrey Campbell: You know, one of the things that Graham Johnson is our treasure and I are starting to look at is overall what would be the right mix around tax financing structures, things like the loan program office as well as project financing structures just so we can get both the right mix of cost of capital. But you know, not all financing structures are created equal in terms of the effort it is going to take to put one of those in place.

Graham Johnson: is overall, what would be the right mix around.

Graham Johnson: tax financing structures, things like the Loan Program Office, as well as projects.

Jeffrey Campbell: The financing structures, just so we can get both the right mix of cost of capital, but, you know, not all financing structures are created equal in terms of the effort it's going to take to put 1 of those in place. Okay, thanks. As you look ahead to a time when you have multiple installation projects operating simultaneously, do you imagine that the work will accrue to a handful of EPCs who will be aligned to your work, or is it going to be more of a separate EPC aligned to each separate project? Yes, it's a thoughtful question, and I think it's more the former.

Graham Johnson: The financing structures just so we can get both the right mix of cost of capital, but, you know, not all financing structures are created equal in terms of the effort. It's going to take to put 1 of those in place.

Jake Dewitte: I was wondering if you can talk about how many of these cases are you doing site evaluations? How are you thinking about doing site evaluations? And then how are you incorporating fuel costs in your PPAs when you convert these LOIs into PPAs? Will fuel costs be passed through? And then finally, we've seen significant increase in capacity prices, in recent auctions. If you can also talk about the PPA rates that you're seeing in the market, it seems like those should be higher, more uniquely higher than what you had indicated at the time of the merger.

Jeffrey Campbell: Okay, thank you. If you look ahead to a time when you have multiple installation projects operating simultaneously, do you imagine that the work will accrue to a handful of EPCs who will have aligned to your work, or is it going to be more of an EPC separate EPC aligned to each separate project? Yes, it's a thoughtful question, and it's more the former review strongly has been to, you know, create and maintain a competitive environment amongst the EPCs and work with a number of different ones based on sort of regional and maybe site specific experience characteristics or preferences.

Speaker Change: As you look ahead to a time when you have multiple installation projects operating simultaneously, do you imagine that the work will accrue to a handful of EPCs who will have aligned to your work, or is it going to be more of a separate EPC aligned to each separate project? For more information, visit www.fema.gov

Craig Belmer: Our view has been to, you know, create and maintain a competitive environment amongst the EPCs and work with a number of different ones based on sort of regional and maybe site-specific experience, characteristics, or preferences. But that way, we have, you know, diversity in our sort of EPC bench while also having flexibility and also having, I would say, competitiveness from a cost perspective. And that's, I think, quite constructive for what we're trying to do.

Speaker Change: Yes, it's a thoughtful question and it's more the former. Our view strongly has been to

Jake Dewitte: Yeah, thank you from this is Jake. It's a good set of questions and a good thoughtful set of questions. I think from a matriculation perspective, what we're excited about seeing is kind of a pool of LOIs that then set the days for us to start working with each of those customers as well as others in the pipeline that you know are coming forward and then identify basically site specific considerations that move into the PPA negotiation process.

Speaker Change: Create and maintain a competitive environment amongst the EPCs and work with a number of different ones based on regional and maybe site-specific experience, characteristics, or preferences. But that way we have diversity in our EPC bench while also having flexibility and also having, I would say, competitiveness from a cost perspective.

Jeffrey Campbell: But that way we have, you know, diversity in our sort of EPC bench, while also having flexibility and also having arts a, you know, competitiveness from a cost perspective.

Jeffrey Campbell: And that's, I think, quite, quite constructive for what we're trying to do. That said, you know, it does, like, some of this does get specialized as we look at certain specific deployment scenarios or, for example, certain defense projects. There's likely a narrower sense of EPCs we've been wanting to work with just given what would probably be preferred for prior experience. But generally speaking, an average week or on average, we expect to have, you know, kind of a relatively deep bench of folks that we can work with accordingly to get these things built out and scaled out accordingly.

Speaker Change: And that's, I think, quite constructive for what we're trying to do. That said...

Craig Belmer: That said, um... You know, it does seem that some of this does get specialized as we look at certain specific deployment scenarios or, for example, certain defense projects. There's likely a narrower set of VPCs we'd end up wanting to work with just given what would probably be preferred for prior experience.

Jake Dewitte: So right now, we are actively looking at site exploration around several of the partners we've announced about where not just where to go, but where on their specific sites of land that they already have make the most sense to deploy. So we're going through characterization process there. We have a methodology we've developed and we've been working on and basically executing again with our partners to identify what makes the most sense for their needs and for our needs.

Speaker Change: You know, it does like some of this does get specialized as we look at certain specific deployment scenarios or, for example, certain defense projects.

Speaker Change: There's likely a narrower set of EPCs we'd end up wanting to work with, just given what would probably be preferred for prior experience, but generally speaking, on average, we expect to have, you know, kind of a

Jeffrey Campbell: But generally speaking, on average, we expect to have, you know, kind of a relatively deep bench of folks that we can work with accordingly to get these things built out and scaled out accordingly. We'll take our next question from Graham Price with Raymond James. Hi, good afternoon.

Jake Dewitte: So those things all then play into them the specific PPA terms and pricing development and the otherwise we try to set this forward, at least at that stage, to make sure we're all working in the same same direction, but then that will help sort of fine tune what's to be expected based on the specifics that evolved during the actual PPA negotiation process. PPA negotiation take a long time.

Speaker Change: a relatively deep bench of folks that we can work with accordingly to get these things built out and scaled out accordingly.

Graham Price: We'll take our next question from Graham Price with Raymond James. Hi, good afternoon. Thanks for taking my question and for fitting me in just one on my end.

Speaker Change: We'll take our next question from Graham Price with Raymond James.

Jake DeWitt: Thanks for taking my question and for fitting me in. Just one on my end, I was wondering if we could get an update on the project with Diamondback Energy, specifically, you know, what's a realistic timetable for deployment there? Yeah, so basically, we announced the partnership with them, which largely stemmed from, you know, the engagement we started having with them towards the end of 2023. So we're going through the process of identifying the specific sites they want us to be on. I'm sorry, the specific site of the number of sites we're looking at, they want us to be on.

Graham Price: Hi. Good afternoon. Thanks for taking my question and for fitting me in. Just one on my end, I was wondering if we could get an update on the project with Diamondback Energy, specifically, you know, what's the realistic timetable for deployment there?

Graham Price: I guess wondering if we could get an update on the project with Diamondback Energy, specifically, you know, what's the real list, the timetable for deployment there. Yeah, so basically, you know, we announced the partnership with them, largely STEM STEM from, you know, engagement we started having with them towards the end of 2023. So we're going through the process of identifying the specific sites they want us to be on. Sorry, the specific site of the number of sites are looking at they want us to be on. You know, from our perspective, we do this as a kind of an initial project.

Jake Dewitte: So we're excited to be in those discussions with several groups and we're excited about more continuing to migrate into that space. That said, in terms of the question around fuel costs, I think what we're seeing in this pie is to the other part of your question, which is, you know, right now energy pricing is quite constructive to what we're doing because there's a significant demand uptake, of course, for a lot of reasons.

Speaker Change: Yeah, um, so...

Speaker Change: Basically, we announced the partnership with them, largely stemmed from engagement we started having with them towards the end of 2023. We're going through the process of identifying the specific sites they want us to be on. I'm sorry, the specific site of the number of sites they're looking at they want us to be on.

Jake Dewitte: You know, to your earlier question, if you look at the 650 megawatts we brought forward and announced here over the quarter second quarter, 600 of those megawatts were for data centers. So that is, I think, a somewhat reasonable approximation for the breakdown in customer and engagement that we're seeing by sector. But, accordingly, we're seeing, obviously, demand limited supply for power that's constructive to us, of course. It allows us to monetize the benefits, you know, and have some leverage in that case, which is great.

Graham Price: From our perspective, we view this as a kind of initial project. I think, given what we see as sort of the demand projections for electrification in the Permian, this is just like, you know, a toe in the water, so to speak. So an exciting one, but wanting to obviously make sure it's impactful and also something that positions things for more successful scalability. So as we go through that effort, I think we're targeting, you know, developing out the specific site, developing out the specific PPA, with all those factors in mind toward, you know, the potentiality for future expansion, possibly. So it takes a good amount of work to go through those efforts. There's also a lot of grid constraints down there, broadly speaking, in the Permian, but not everywhere.

Graham Price: I think given the what we see is sort of the demand projections for electrification and the Permian. This is just like, you know, a toe in the water, so to speak. So an exciting one, but wanting to obviously make sure it's impactful and also something that positions things for more successful scalability. So, as we go through that effort, I think we're targeting, you know, developing out the specific site, developing up into the PTA with all those factors in mind to towards, you know, potentiality for future expansion possibly. So it takes a good amount of work to go through those efforts.

Speaker Change: you know, from our perspective, we view this as a.

Speaker Change: kind of an initial project. I think given the, what we see is the sort of the demand.

Speaker Change: projections for electrification in the Permian. This is just like a toe in the water, so to speak. So an exciting one, but wanting to obviously make sure it's impactful, and also something that positions things for more successful scalability.

Jake Dewitte: But since fuel is a scarce item for everybody in the nuclear side, scarcity is the wrong word. Since fuel is a pricing, I would say, volatile pricing input for everything in the nuclear side, right now, especially for new advanced plants. You know, we found that there's an openness to fuel cost pass-throughs. And we have a unique advantage in the fact that, you know, as we pursue recycling, it also opens the door for our customers to be quite open to having the discussion of fuel cost pass-through.

Speaker Change: So, as we go through that effort, I think we're targeting, you know, developing out the specific site, developing out the specific PPA, with all those factors in mind to, towards, you know, potentiality for future expansion, possibly. So, it takes a good amount of work to go through those efforts.

Graham Price: There's also a lot of great constraints down there, and just broadly speaking in the Permian, but not everywhere. So obviously mindful of that kind of changes how we think about the site selection processes and down selection processes. And then, you know, I think depending on timelines, we'd expect something in the 2028 to 2029 window for initial power generation. At this point, but some of that's going to be largely dependent on sort of where and how Diamond Back is going to want to proceed with the times with those specific location selection process.

Jake Dewitte: If they can also then get the benefit of the fuel cost savings, if recycling comes on mine, when an effort cycling comes on mine. And so that creates a pretty, I think, favorable dynamic for us, so that we can, you know, not get hung up early on necessarily with some fuel pricing volatility, but have a pathway to get to market.

Jake DeWitt: So obviously, mindful of that kind of changes how we think about the site selection processes and down selection processes. And then, you know, depending on timelines, we'd expect something in the 2028 to 2029 window for initial power generation at this point. But some of that's going to be largely dependent on sort of where and how Diamondback is going to want to proceed with the times with those specific location selection processes.

Speaker Change: There's also a lot of grid constraints down there and just broadly speaking in the Permian but not everywhere so obviously mindful that kind of changes how we think about the

Speaker Change: the site selection processes and down selection processes.

Speaker Change: And then I think depending on timelines, we'd expect something in the 2028 to 2029 window for initial power generation at this point, but some of that's going to be largely dependent on sort of where and how Diamondback is going to want to proceed with those specific location selection process. Thank you. Thank you. Thank you.

Graham Price: But that's, that's kind of how we're marching forward on our end. Got it.

Jake Dewitte: And then, you know, that helps us drive the case for the recycling even tuner, which then helps us deploy more reactors and more cost altogether. Thanks, Jake.

Jake DeWitt: But that's kind of how we're marching forward on our end. Got it. I guess, just broadly, how does the opportunity set look for the oil and gas space in the Permian and other basins as well? You know, it's.

Speaker Change: But that's kind of how we're marching forward on our end.

Graham Price: I guess just probably how does the opportunity set look for the oil and gas space in the Permian and other basins as well? You know, it's pretty; it's very exciting. It's very large. I think as we see what we've been learning about, or should say we, myself personally, been learning about the opportunities around electrification and the benefits that gives the operator in the region, that's pretty promising. You know, I think we see, you know, we see a pretty large order of potential down there. And our model is well positioned to kind of provide into that.

Speaker Change: Got it. I guess just broadly, how does the opportunity set look for the oil and gas space in the Permian and other basins as well?

Jake Dewitte: I have a couple more. And then I can jump back in with you. I was wondering if you can share, Jake, how many pre-filing discussions you've had so far. And the letter indicates the first plant will be by 2027 versus the previous expectations of, you know, in 2026 or 27. I was wondering if I'm reading too much into the language or, you know, there is, you know, slight delay in the timeline.

Graham Price: Pretty, it's very exciting. It's very large. I think, as we see what we've been learning about, or I should say, we, myself, personally, have been learning about the opportunities around electrification and the benefits that it gives the operators in the region. It's pretty promising. You know, I think we, we see, you know, we see a pretty large order book potential down there, and our models are well positioned to kind of provide for that. Um, you know, the numbers are going to be, it depends on a number of factors, but We've seen people talk externally on the, you know, like, high hundreds of megawatts to a couple gigawatts of power would be needed for electrification.

Speaker Change: You know, it's...

Speaker Change: It's pretty, it's very exciting. It's very large, I think as we see what we've been learning about, or I should say we, myself personally, have been learning about the opportunities around electrification and the benefits that it gives.

Speaker Change: It's operating in the region. It's pretty promising. I think we see a pretty large order book potential down there, and our model is well-positioned to provide into that. The numbers are going to be – it depends on a number of factors.

Jake Dewitte: And if you can just share how those conversations are going and how many hours of conversations you've had so far. Yeah, and lots of conversations with the NRC. I think the latest tally in our slides is, you know, we've had, we've submitted about 55 draft and technical reports in the NRC dating back through our engagement starting since 2016. We've had over 500 technical and planning meetings. It's a lot of engagement. We continue at a pretty regular pace through a meeting on average for a few hours once every couple of weeks right now as we ramp into pre-application readiness assessment to then go forward.

Graham Price: You know, the numbers are going to be, you know, it depends on a number of factors, but we've seen people talk externally on the, you know, hundreds of megawatts to a couple of gigawatts of power that would be needed for electrification. And so, so I think as you kind of think about how about part size that I think that's a reasonable starting point. That said, you know, part of our view and part of the sort of strategic developments we've taken here. You know, last year we raised capital before the transaction course of last year from Liberty Energy Services and through the process got to know Chris Wright has enjoyed our board here.

Speaker Change: We've seen people talk externally on the, you know, like, high hundreds of megawatts to a couple gigawatts of power would be needed for electrification. And so, so I think as you kind of,

Jake DeWitt: And so, I think, as you kind of think about how to ballpark size, and I think that's a reasonable starting point. Um, that said, you know, part of our view, and part of the sort of strategic developments we've taken here, last year, we raised capital before the transaction for so last year from Liberty energy services. And through that process, I got to know Chris, right?

Speaker Change: just to think about how to ballpark size it. I think that's a reasonable starting point. That said, part of our view and part of the strategic developments we've taken here, last year we raised capital before the transaction, of course, so last year from Liberty Energy Services.

Craig Belmer: And then joined our board here after we closed the transaction and given his position and expertise in the field. Part of his conviction about this was, obviously, he loves the story around nuclear and energy abundance, but also some of the potentiality for the market development side on the oil and gas piece of things. So, I see quite a bit of upside on there. I just was the 1 that rambled while our CFO actually spent a good amount of time in the oil and gas industry.

Jake Dewitte: That's helping us in the NRC make sure we define the scope of what we expect out of the readiness assessment appropriately and move forward from there. One really significant feature, but puts a lot more work on companies. But again, I think it's a significant feature is the flexibility that the NRC has in terms of how you can ultimately get a commercial license from pre-application all the way through licensing. So there's a huge menu of items you can choose from.

Graham Price: We closed the transaction and given his position and expertise in the field. Part of his conviction about this was obviously he loves the story around nuclear and energy abundance, but also some of the potentiality for the market development side on the oil and gas piece and things. So, so I see quite a bit of upside on there. I just was the one that rambled while I see if I actually spent a good amount of time in the oil and gas industry, so very good. And if you want to add anything on that, but I would just say, you know, 30 years in the oil and gas sector.

Speaker Change: Through that process, got to know Chris Wright, who then joined our board here after we closed the transaction.

Speaker Change: and given his position and expertise in the field.

Speaker Change: Part of his conviction about this was obviously he loves the story around nuclear and energy abundance, but also some of the potentiality for the market development side.

Ivan Tygris: So Greg, I don't know if you want to add anything to that, but I would just say, you know, 30 years in the oil and gas sector and most of the operations. Um, need to operate 24 7, they want reliability, and most, if not all, of the majors have got some form of carbon reduction targets that they're trying to meet too. So I think our offer works. It works very well to meet those needs. We'll move to our next question from Ivan. Tygris, your line is open, please.

Craig: on the oil and gas piece of things, so I see quite a bit of upside on there. I just was the one that rambled while our CFO actually spent a good amount of time in the oil and gas industry, so Craig, I don't know if you want to add anything on that. I would just say 30 years in the oil and gas sector and most of the operations

Jake Dewitte: And what's nice then is each company can kind of pursue the path that makes the most sense for them. And for us, that works very favorably because because of our business model, we're going straight to build on operate. We go straight to the license to actually build an and operate the plan. As opposed to taking steps to get like a design certification and then then have to go through the process we're going through or take the steps to get a construction permit and then get an operating license.

Graham Price: And most of the operations need to operate 24 seven; they want reliability. And most of the majors have got some form of carbon reduction targets that they're trying to meet to. So I think our offer works.

Craig: Need to operate 24 7 they want reliability and most most of the majors have got some form of carbon reduction targets that they're trying to meet too. So, I think our offer works.

Jake Dewitte: Instead, we do it all once, which has some significant efficiencies for us. Then similarly, on the pre-application side, as we ramp into preparing for submitting the application, you know, you can do all sorts of things in that pre-application practice to make sure you're moving forward. You're sort of retiring the risk of the company engaging as the pre-applicant accordingly and getting the right feedback with the NRC and helping the NRC accordingly prepare for review.

Ivan Feinsatz: We'll move to our next question from Ivan Feinsatz with Tigress. Your line is open. Please go ahead. Thank you. Congratulations on the progress and the first public call, and thanks for taking my questions.

Craig: Works very well to meet those needs.

Craig: We'll move to our next question from Ivan Feinsath with TIGRIS. Your line is open. Please go ahead.

Ivan Tygris: Thank you. Congratulations on the progress and the first public call, and thanks for taking my questions. On slide 20 with your pipeline, can you give us some, like, outline of the steps from signing the initial letter to going through the process? Yeah.

Ivan Feinsath: Thank you. Congratulations on the progress and the first public call and thanks for taking my questions. On slide 20 with your pipeline, can you give us some like outline of the steps from signing the initial letter to going through the process to getting a final power reactor?

Ivan Feinsatz: On slide 20 with your pipeline, can you give us some like outline of the steps from signing the initial letter to going through the process to getting a final power? Yes, so basically, you know, the way this works for us, kind of from a process perspective, as we start engaging with customers, is to sort of progress it through that relationship because each site, each consideration around the market, each customer, when I say the market, I mean the local market consideration. Each customer, everything is variable. So we go through a process of sort of, you know, marching through progression as we engage with customers and they're interested to move forward, often starting with either a memorandum of understanding, which is kind of set a broad scope to survey things and figure out where we want to go.

Jake Dewitte: So it's highly iterative. It's highly dynamic. We're engaging with them on the reactor front as well as now on that fuel recycling front and the larger scale fresh fuel fabrication front. So a lot of activity there, but at the end of the day, we're working to basically be in a position to submit an application. As soon as we reasonably think we can get to, which is the next year. So we're looking at having that application go in next year followed by subsequent applications that come in in the latter part of next year.

Jake DeWitt: So basically, you know, the way this works for us, kind of from a process perspective, as we start engaging with customers, is to sort of progress them through that relationship because each site, each consideration in the market, each customer, when I say the market, I mean the local market consideration, each customer, everything is variable. So we go through a process of sort of, you know, marching through progression as we engage with customers and they're interested in moving forward, often starting with either a memorandum of understanding, which can kind of set a broad scope to survey things and figure out where we want to go.

Speaker Change: Yeah, so basically, you know, the way this works for us.

Speaker Change: kind of from a process perspective as we start engaging with customers is to sort of progress it through that relationship because.

Speaker Change: each site, each consideration around the market, each customer, when I say the market, I mean the local market consideration, each customer, everything is variable. So we go through a process of sort of.

Jake Dewitte: Depending on the timelines of how those PPAs and other things develop to then have several and staggered review, and that's a big feature for model as well as the benefits that come from having multiple kind of in a staggered parallel review path. In terms of the timeline, I would say, you know, when we announced the deal, we were looking at 26, 20, 20, 27. Kind of that was built somewhat under the context of us closing the deal and, you know, with the possibility that we could close the deal in 2023, because that ended up happening closer to the midpoint of 2024.

Jake DeWitt: And then that often kind of goes into a letter of intent to effectively, you know, purchase power from us that outline the site and size and, you know, price ranges. Sometimes customers know enough, so they kind of leapfrog the MOU, and they get straight to the LOI. Actually, that's been more often the case for us.

Speaker Change: you know, marching through progression as we engage with customers and they're interested to move forward.

Jake Dewitte: I think that's where it kind of delayed some of the deployment of the full capital to then start executing fully against that. So it kind of fully shifted us towards the 2027 date. Additionally, there are some other factors that, you know, are on hand with respect to, you know, how we're working through on the supply chain and the site development and all those other pieces, but so far, those have largely been moving forward.

Speaker Change: often starting with either a memorandum of understanding, which can set a broad scope to survey things and figure out where we want to go, and then that often goes into a letter of intent.

Jake DeWitt: And then from there, we go through a process of working with them to determine the site, determine where we want to, like, where it makes the most sense to go. Oftentimes, these projects or these kinds of, you know, these LOIs would entail multiple plans being built. So you want to be mindful about how the growth plan works there too, as we go through the site selection process. And then once those things are identified and determined, you know, you're going through that; you're doing the PPA development and then detailed negotiations accordingly in parallel. And then in subsequent, you know, to develop finalizing on site, at which point, once you have the PPA signed, we kind of transition into execution.

Ivan Feinsatz: And then that often kind of goes into a letter of intent to effectively, you know, purchase power from us that outline site and size and price ranges. Yeah, sometimes customers know enough, so they kind of leap forward the MAU, and they get straight to the ROI. Actually, that's been more often the case for us. And then from there, we go through a process of working with them to determine site, determine where we want to like where makes the most sense to go. Oftentimes, these projects or these, these kind of, you know, these yellow eyes would entail multiple plans being built.

Speaker Change: To effectively, you know, purchase power from us that outline site and size and price ranges.

Speaker Change: Yeah, sometimes customers know enough so they kind of leapfrog the MOU and they go straight to the LOI. Actually, that's been more often the case for us. And then from there, we go through the process of working with them to determine the site.

Speaker Change: Determine where we want to, like, where makes the most sense to go. Oftentimes these projects or these, these kind of, you know, these would entail multiple plans being built. So, you want to be mindful about how the growth plan works there too, as we go through site selection process.

Ivan Feinsatz: So you want to be mindful about how the growth plan works there too, as we go through site selection for your process. And then, once those things are identified and determined, you know, you're going through that. You're doing the PPA development and detailed negotiation accordingly in parallel and then subsequent to develop finalizing on site. At which point, then, once you have a PPA sign, we kind of transition into execution. But right now it's in our advantage not to just rush into PPA's, given there's so much demand up there, and they're going to constrain our opportunities or our ability to, you know, let me say that.

Jake Dewitte: Reasonably well, you know, it's nice for our first plan that we have fuel awarded and allocated to us. We're not subject to some of the supply limitations for that first plan. Of course, we will be for our subsequent plan. So that's why we partner this interest and others to actively work through that. But it's nice to take some of that risk for your first plan off the table, which is a big deal for us.

Speaker Change: And then once those things are identified and determined, you know, you're going through that, you're doing the PTA development and then detailed negotiation accordingly in parallel and then in subsequent, you know, to develop finalizing on site.

Jake Dewitte: So that's how that's kind of why the timeline is pretty firm up on the 27 date and 26 is really just really achievable from the perspective of when the deal closed in 24 versus when there was a possibility of closing in 23.

Jake DeWitt: But right now, it's in our advantage not to just rush into PPAs, given there's so much demand out there and they're going to constrain our opportunities or our ability to, you know, as we look at what the demand, you know, curves are and the indications out there, and when you look more high level at what the projections are, right, for what people are talking about meeting and all of these factors that are very good for us, it does create, you know, a situation where we might be oversubscribed in our, you know, our ability to deliver for a couple of years, just given that there's so much interest. Now, there's a lot of interest on the back end for that timing.

Speaker Change: At which point, then, once you have the PPA signed, we kind of transition into execution.

Speaker Change: But right now it's in our advantage not to just rush into PPAs given there's so much demand out there and they're going to constrain.

Ivan Feinsatz: As we look at what the demand, you know, occurs are and the indications out there and we look more high level at what the projections are right for what people are talking about needing and all of these factors are very good for us. It does, it does create, you know, a situation where we might be over subscribed in our, you know, our ability to deliver for a couple of years just given that there's so much interest. Now there's a lot of interest on the back end for that timing. So we want to work with customers to see what makes the most sense that the days of those things.

Operator: Once again, if you would like to ask a question, please press star one on your telephone keypad now. We ask that you please limit yourself to one question and one follow-up, rejoining the queue for any additional questions.

Speaker Change: our opportunities or our ability to, let me rephrase that.

Speaker Change: As we look at what the demand, you know, curves are and the indications out there and we look more high level at what the projections are, right, for what people are talking about needing.

Thomas Merrick: We'll move next to Thomas Merrick, with JD Montgomery.

Speaker Change: all of these factors that are very good for us.

Speaker Change: It does create a situation where we might be oversubscribed in our ability to deliver for a couple of years just given that there's so much interest.

Jake Dewitte: Good afternoon, congratulations on all the success there. Just wanted to start out on EBR2 and the question's really around capacity factor of sodium cool fast reactors and what is the data suggest as you reviewed it that sodium cool fast reactor can hit on a real world capacity factor basis. And I'm asking just kind of with the perspective of we have a long deep history of operating large-ly water reactors at 90 and 92 percent capacity factor and it took us a while to get there.

Jake DeWitt: So we want to work with customers to see what makes the most sense at the stage of those things. But it's a great place to be because it gives us a good position in terms of how we think about, you know, prioritization and execution accordingly. And Ivan, it's Craig.

Speaker Change: Now, there's a lot of interest on the back end for that timing, so we want to work with customers to see what makes the most sense to stage those things. But it's a great place to be because it gives us a good position in terms of how we think about prioritization and execution accordingly.

Ivan Feinsatz: But it's a great place to be because it gives us a good position in terms of how we think about the improvisation and execution accordingly.

Craig Belmer: And Ivan, it's Craig. I know one of the challenges on a day like today is we put a lot of materials out there, and there's only an hour to look at them. But I think it's page eight of our shareholder letter actually has a nice little visualization of the steps from that MOU stage that Jake mentioned until actually getting a PPA place.

Craig Belmer: I know one of the challenges on a day like today is that we put a lot of materials out there, and there's only an hour to look at them. But I think page 8 of our shareholder letter actually has a nice little visualization of the steps from that stage that Jake mentioned until actually getting a PPM. But now... One of my questions, let's say you have a potential customer that's already running a data center, they have land, and they want just to contract with you, would they be able to streamline the licensing, you know, the approval process? I would believe that you'd have tremendous.

Craig: And Ivan, it's Craig. I know one of the challenges on a day like today is we put a lot of materials out there and there's only an hour to look at them, but I think it's page 8 of our shareholder letter actually has a nice little visualization of the steps from that stage that Jake mentioned until actually getting a P. P. M.

Jake Dewitte: How should I think about the time it'll take for your Gen 4 reactor to get to capacity factors in the 90s? Yeah, that's a great question and actually a real fun, little nugget of information that's not the easiest thing to pull out. We developed all these amazing things in the nuclear industry that came out starting back in the 50s and 60s, of course, on paper. All of the great records of history and operations and all these things were largely paper-based for EBR2 and for prior fast reactors as well as the fast flux test facility and FFTF.

Jake Dewitte: Okay, but now one of my questions: let's say you have a potential customer that's already running a data center. They have land and they want just to contract with you with they be able to streamline the licensing perm, you know, the approval process. I would believe that you have tremendous demand and probably the bottleneck is the ability to get regulatory approval all the way down to, you know, permits to build and eventually implement. So do you have customers in the pipeline that would fit like that outline that could streamline the process?

Speaker Change: Okay, but now.

Speaker Change: One of my questions, let's say you have a potential customer that's already running a data center, they have land and they want just to contract with you, would they be able to streamline the licensing, you know, the approval process?

Ivan Tygris: Probably the bottom, get regulatory approval all the way down to, you know, permits to build and eventually implement. You have customers in the pipeline that would fit like that outline that could stream. Also, what is the process of, let's say, taking the pods. Yeah, I'll just start on the citation, and Greg, feel free to chime in.

Speaker Change: I mean, I would believe that you have tremendous demand and probably the bottleneck is the ability to get regulatory approval.

Speaker Change: all the way down to, you know, permits to build and eventually implement. So...

Jake Dewitte: But FFTF and EBR2 are the plants we kind of most directly derive technical legacy and learning strong is kind of the latest iterations if you will from prior development in the U.S. The reason I point out that they were on paper is it makes accessing that less scalable historical speaking. There's been a big effort to digitize all those records which have been great. We've been pushing forward on that. We've been working in very thankful for the work that the National Labs and the Department of Energy is done to do that because that stuff is a treasure trove of information and data.

Speaker Change: Do you have customers in the pipeline that would fit like that outline that could streamline the process? And also, what is the process of, let's say, taking deposits or financial commitments that also could help finance the, you know, the build-out?

Jake Dewitte: And also, what is the process of, let's say, taking deposits of goods or financial commitments that also could help finance the, you know, the build out of the reactors? Yeah, I'll just start on the siding, and Craig, feel free to join in. So, there are some benefits when they have a site and you know, where we want to go for, for various reasons. I think they have infrastructure in hand and everything else, so that does just have some benefits. But most of those benefits are going to be realized on the actual, like, construction and installation phase. The permitting process itself, you know, at the local level might benefit some, but that's largely wrapped up in the federal side.

Speaker Change: of the reactors.

Speaker Change: Yeah, I'll just start on the siding and Craig, feel free to chime in.

Jake DeWitt: So there are some benefits when they have a site and you know where we want to go for various reasons; often times, they have the infrastructure in hand and everything else. So that does just have some benefits, but most of those benefits are going to be realized during the actual construction and installation phase. The permitting process itself, you know, at the local level might benefit some, but that's largely wrapped up on the federal side.

Craig: So there are some benefits when they have a site and you know where we want to go for various reasons often times they have infrastructure in hand and everything else so that does just have some benefits but most of those benefits are going to be realized.

Jake Dewitte: But one of the great things that kind of stood out to this and one of the things that when I learned it back around the formation of the company was kind of mind blowing and the positive sense was EBR2 and FFTF both liquid sodium cool fast reactors actually achieved superior operating capacity factors and operating characteristics then commercial light water plants at the time achieved we're achieving. And to me the thing that's great you know and there's reasons why but what was even more like incredible about that to me was that both of those reactors their job was not to produce power.

Craig: on the actual like construction and installation phase.

Craig: the permitting process itself.

Jake Dewitte: So, so you most are going to see the benefits kind of on the construction side. That said, it helps drive the process forward, and it makes things clear and simpler, which is a good thing when you do have a customer who's like that. And, you know, in, I would say, you know, of several, like, of the customers we've announced and been talking quite a bit about, on the data center side, it's a mix of some of the site they very specifically know and want power at. Others have, you know, a variety of sites that they're kind of exploring and trying to prioritize where, you know, they're going to see the demand go and then where we can go.

Craig: You know, at the local level might benefit some, but that's largely wrapped up in the federal side. So, so you're mostly going to see those benefits kind of on the construction side. That said, it helps drive the process forward and it makes things clear and simpler, which is a good thing when you do have a customer who's like that. And, you know, and I would say, you know.

Jake DeWitt: So you mostly are going to see those benefits kind of on the construction side. That said, it helps drive the process forward, and it makes things clearer and simpler, which is a good thing when you do have a customer who's like that. And, you know, I would say, you know, several of the customers we've announced and been talking quite a bit about on the data center side, it's a mix of some of the sites.

Jake DeWitt: They very specifically know and want power at others. They have a variety of sites that they're kind of exploring, Uh, and trying to prioritize where, you know, they're going to see the demand go and then where we can go. So it's a co-iterative process. Um, so it just depends, you know, kind of on a case by case basis, but I do think, in general, places that have sites.

Craig: Bye-bye.

Jake Dewitte: Their job was actually to test materials and fuel. So they're moving stuff in and out of the reactor at a high cadence and a high frequency means you're shutting it down, turning it back on, turning it intentionally doing all of that and they still be what was going on on the light water side. And they were contributing factors. You can pull out more information from occupational dose rates, other things like that that can affect and dictate sort of operational timing and maintenance timing and how you work around the plan on what you can service in the plan while operating and then having to take the plan offline.

Craig: several of the customers we've announced and been talking quite a bit about.

Craig: on the data center side.

Craig: It's a mix of some have a site they very specifically know and want power at others have

Craig: You know, a variety of sites that they're kind of exploring and trying to prioritize where, you know.

Jake Dewitte: So it's co-iterative. So, just depend, you know, kind of on a case by case basis, but I do think in general places that have sites and have the area and land for us to be able to go build with them. Have a strong advantage when it comes to, you know, the overall speed of deployment, if it exists.

Craig: they're going to see the demand go and then where we can go. So it's co-iterative.

Craig: So it just depends, you know, kind of on a case-by-case basis.

Ivan Tygris: Uh, and have the area on land for us to be able to go build with them, have a strong advantage when it comes to the overall speed of deployment. And I would say, you know. The question of financing, we've already got one great example of Equinix investing in the company, and, you know, every customer is going to look at those sorts of things differently. It made me more than happy to have those sorts of conversations with some of our other customers. Thank you.

Jake Dewitte: And all of those things were actually generally speaking lower than what you were seeing commensurately at commercial light water plants. And a lot of I just see inherent kind of design and I would say benefits of sodium fast reactor technology. The fact that it showed you could do those things was a huge validation point that you could achieve commensurate if not superior operating capacity factors. At the end of the day I think we can slightly be we can get up into the you know mid 90s I think as a trajectory we can get to potentially as we build out and get a lot of experience.

Craig: But I do think in general, places that have sites and have the area and land for us to be able to go build with them have a strong advantage when it comes to the overall speed of deployment, if that makes sense.

Jake Dewitte: And I would say, you know, the question on financing that we've already got one great example of Equinix investment in the company and. Now, every customer is going to look at those sorts of things differently. Me, me more than happy to entertain those sorts of conversations with some of our other customers that. Thank you.

Craig: And I would say, you know.

Craig: The question on financing, we've already got one great example of Equinix investing in the company, and every customer is going to look at those sorts of things differently. It made me more than happy to entertain those sorts of conversations with some of our other customers.

Jake Dewitte: It's going to take some time to get there though because like you pointed out we have tons of operational experience with light water reactors. And a lot of that is directly applicable to us, but not all of it is. But thankfully there's experience with what we're doing in the past. That was quite successful that we can draw from accordingly and then benefit from that. So the fact that we're already starting at a better place than sort of light water plants were you know 40-50 years ago to me puts gives me a lot of confidence that we have a pretty good trajectory to actually you know outperform that those technologies at least match the technology that's not outperform the technology.

Operator: That will conclude the analyst Q and A portion.

Operator: That will conclude the Analyst Q&A portion. I will now turn the call back to Sam Doan to address the questions. Thanks, Jess.

Sam Doane: I will now turn the call back to Sam Don to address retail questions.

Craig: Thank you. That will conclude the analyst Q&A portion. I will now turn the call back to Sam Doan to address retail questions.

Jake Dewitte: Thanks, Jess. Our first question from our retail investors is A.I. has been a big buzzword, but where else is the focus for oak low and what goes beyond powering just that facet of the future. Yeah, I think it's definitely getting a lot of attention in terms of, you know, growth, opportunity, energy needs, all these things. I think we see it's quite constructive and driving, obviously like data center development and growth, but there were a couple of big macro factors in hand, even before, sort of, I would say A.I. kind of came storming on the scene from an energy perspective.

Sam Doan: Our first question from our retail investors is, AI has been a big buzzword, but where else is the focus for Oklo, and what goes beyond powering just that facet of the future? Yeah, I think it's definitely getting a lot of attention in terms of, you know, growth, opportunity, energy needs, all those things. I think we see it's quite constructive in driving, obviously, like data center development and growth. But there were a couple of big macro factors in hand, even before sort of, I would say, AI came storming out of the scene from an energy perspective.

Sam Doan: Thanks, Jess. Our first question from our retail investors are AI has been a big buzzword, but where else is the focus for Oklo, and what goes beyond powering just that facet of the future?

Sam Doan: i

Sam Doan: Yeah, I think, um...

Speaker Change: It's definitely getting a lot of attention in terms of growth, opportunity, energy needs, all those things.

Jake Dewitte: And as we work with potential customers, you know we generally build in some flexibility and how we want to scope what our early plants are going to be operating out from a capacity factor perspective. Just so we can obviously get through those sort of initial learning courage to get these things going into the higher end of the range of capacity factor that we can achieve. But it is the only technology that in the meaningful way actually outperform light water plants, everything else has actually been pretty significantly worse than light water. It's because light water is a great technology that's just happens to have some features that make it generally operable or operator friendly I should say.

Speaker Change: I think we see it's quite constructive in driving, obviously, like data center development and growth.

Speaker Change: But there were a couple of big macro factors in hand, even before I would say AI came storming onto the scene from an energy perspective. Obviously, given our chairman has a pretty unique insight in the future of AI, we've been excited about what could be in the data center side for some time. But the reality is there's been several dynamics here that are favorable for us. One is

Jake DeWitt: Obviously, given our chairman has a pretty unique insight into the future of AI, we've kind of been excited about what to be on the data center side for some time. But the reality is, there are several dynamics here that are favorable for us. You know, we have the energy transition perspective in hand in the process; I would almost call it that way. That's, that's, that is, I think, moving at a pace. You know, that was kind of, you know, I think we're coming up on the two-year anniversary of the Inflation Reduction Act, obviously a big piece of legislation and policy to move forward and try to accelerate the energy transition.

Jake Dewitte: Obviously, given our chairman has a pretty unique insight in the future of AI. We've kind of been excited about what to be in the data center side for some time, but the reality is there's been several dynamics here that are favorable for us. One is, you know, we have the energy transition perspective in hand. In process, I would almost call it that was that's that is I think moving at pace. You know, that was kind of, you know, I think we're coming up right around now is the two-year anniversary of the Inflation Reduction. Obviously, a big piece of legislation and policy to move forward and try to accelerate the energy transition.

Speaker Change: You know, we have the energy transition perspective in hand, in process, I would almost call it that way. That is, I think, moving at pace.

Jake Dewitte: All super helpful. Thank you.

Jake Dewitte: Then on the demand side, just curious your thoughts around your defense applications, you know, just thinking of defense innovation solicitation promoted in the summer, thoughts around that, just microreactors that depends generally speaking, and then just kind of sneaking the last one in here, kind of an administrative question.

Speaker Change: You know, that was kind of, you know, I think we're coming up right around now is the two year anniversary of the Inflation Reduction Act. Obviously, a big piece of legislation and policy to move forward and try to accelerate the energy transition.

Jake Dewitte: That is creating a huge amount of demand for electrification, and that that number might take time to fully realize. But if you look at what's on hand for that in front of the nation for that, the numbers are staggeringly large and not the huge amount of opportunity just there. Additionally, we also have this other big map or factor occurring, which is, you know, let me just add some concept on energy transition. This is just generalize electrification and sustainable and actually scalable electrification and a meaningful way, which means, you know, we need to have a whole portfolio or a whole grid as perspective.

Jake DeWitt: That is creating a huge amount of demand for electrification, and that number might take time to fully realize, but if you look at what's on hand for that and for incentivization for that, the numbers are staggeringly large. And that's a huge amount of opportunities just there. Additionally, we also have this other big macro factor occurring, which is, you know, let me just add some context to the energy transition. It's such a generalized electrification and sustainable and actually scalable electrification in a meaningful way, which means, you know, we need to have a whole portfolio, a whole grid perspective.

Jake Dewitte: But how do I think about programs with the DOD and our sea life and thing, and is there like a cross lock there that makes, you know, one more easier than the other, just generally how to think about those licensing programs, and that's it for me. Yeah, yeah, of course, and great questions. I'm the sort of on the defense engagement. You know, we've been actively working obviously with the different departments or the different branches.

Speaker Change: that is creating a huge amount of demand for electrification. That number might take time to fully realize, but if you look at what's on hand for that and for incentivization for that, the numbers are staggeringly large, and that's a huge amount of opportunity just there.

Speaker Change: Additionally, we also have this other big macro factor occurring, which is – let me just add some context on energy transition. It's such as generalized electrification and sustainable and actually scalable electrification in a meaningful way, which means we need to have a whole portfolio, a whole grid perspective on energy transition.

Jake Dewitte: And nuclear is going to play a really important part of that, which is why, you know, a year over a year ago, the Department of Energy had reports that projected nuclear capacity would something really triple or so in terms of, you know, just meeting energy transitioning. That's a huge right opportunity alone, though, and you see capacity markets recently reflecting that the topic capacity markets pricing and PJ and went, you know, factor nine ups or something like that, a significant increase that reflects sort of the obviously capacity factor for new capacity value that you plan forward.

Jake DeWitt: And nuclear energy is going to play a really important part in that, which is why, you know, a year, more than a year ago, the Department of Energy had a report that projected nuclear capacity would triple or so in terms of, you know, just meeting energy transition needs. That's a huge opportunity alone.

Speaker Change: And nuclear is going to play a really important part of that.

Jake Dewitte: The Department of Defense for some time. You know, a year ago, we were awarded the first round, or awarded initially for the House and project up in Alaska as the threat of a protest, the kind of conservative cautious procurement actions that there's, you know, very common today in terms of the protest cycle, the defense department that was then pulled back to then update the review. It was then re-awarded to us in February.

Speaker Change: Which is why, you know, a year, over a year ago, the Department of Energy had reported that projected nuclear capacity would triple or so in terms of just meeting energy transition needs. That's a huge opportunity alone there. And you see capacity markets recently reflecting that, the fact that capacity markets.

Jake Dewitte: Then there was a protest file that was pulled in March. It's going through the next updates there. Given the cadence before, it was about six months, you know, we expect, you know, hopefully that will be entering into kind of an update on that front as well. The fact we were awarded it twice gives us some confidence, but of course, we'll see kind of where that moves. The thing is, is we're offering something based on that call, and then if you look at the defense innovation unit kind of call, it's pretty well aligned with what they're looking for.

Jake DeWitt: And you see capacity markets recently reflecting that, the fact that capacity markets, pricing, and PJN went, you know, factor 9x or something like that, a significant increase that reflects sort of the, obviously, capacity value that a nuclear plant affords. And some of the shortfalls that some of the deployment of clean energy technology has had in terms of what it drains on the grid and how to make sure pricing reflects all those things.

Speaker Change #100: Pricing and PJN went, you know.

Speaker Change #101: Thank you.

Speaker Change #101: factor 9x or something like that, a significant increase, that reflects sort of the obviously capacity value that a nuclear plant affords.

Jake Dewitte: And some of the shortfalls that some of the deployment of clean energy technology has had in terms of what it's drained on the grid and how to make sure pricing reflects all the things. So all in all, the energy transition is one of the big pillars here for growth. It's that, you know, massive scale. The other is then, and why me massive scale is, you know, you look at the numbers and it's, you know, tens to hundreds of gigawatts and total size for that.

Jake DeWitt: So, all in all, the energy transition is one of the big pillars here for growth that's, you know, massive in scale. The other is, and when I mean massive in scale, you look at those numbers, and it's, you know, tens to hundreds of gigawatts in total size for that. Additionally, as we look at this massive reindustrialization occurring in the US, the CHIP Act is a good example of that as we're trying to bring manufacturing back into the United States. That needs energy.

Speaker Change #101: And some of the shortfalls that some of the deployment of clean energy technology has had in terms of what it's drained on the grid and how to make sure pricing reflects all the things. So, all in all, the energy transition is one of the big pillars here for growth that's massive in scale.

Speaker Change #101: The other is then – and when I mean massive in scale is you look at those numbers and it's tens to hundreds of gigawatts in total size for that. Additionally, as we look at this massive re-industrialization occurring in the US, the CHIPS Act is a good example of that as we're trying to drive bringing manufacturing back into the United States. That needs energy. A lot of those facilities need 24-7 reliable energy, frankly, to run.

Jake Dewitte: Additionally, we look at this massive reindustrialization occurring in the US. The chipback is a good example of that as we're trying to drive bringing manufacturing back into the United States. That needs energy. A lot of those facilities need 24/7 reliable energy, frankly, to run. An energy cost can be sizable for the input on that. And so I think you're going to see that increasingly play a role in as, you know, companies are looking at citing manufacturing capacity somewhere in the US. If power availability or access or reliability is a challenge, which it increasingly is, they're going to be turning to bring your power solution, which is a win-win for kind of everybody in many ways.

Jake DeWitt: A lot of those facilities need 24-7 reliable energy, frankly, to run, and energy costs can be sizable for the input on that. And so I think you're going to see that increasingly play a role, and as, you know, companies are looking at locating manufacturing capacity somewhere in the US, if power availability or access or reliability is a challenge, which it increasingly is, they're going to be turning to bring their own power solution, which is a win-win for kind of everybody in many ways. And that's pretty constructive to us as well. So that's a big factor there. And then, of course, you have, you know, the AI side. I think those three also capture things in between.

Jake Dewitte: In terms of business model, and we have some flexibility to get down into the size ranges they want to be looking at. We're not going to be serving the one megawatt and kind of small scale. We see a lot more opportunity, obviously, with the higher end of those ranges, but we can definitely perform and deliver a very competitive and attractive solution. So, you know, we're good to see how those projects and those things develop.

Speaker Change #101: And energy costs can be sizable for the input on that. And so, I think you're going to see that increasingly play a role in

Jake Dewitte: At the end of the day, the energy needs that we've learned from the defense department and what they project for it is quite diverse and offerings. So there's going to be, I think, multiple solutions that can, you know, offer, well, multiple companies that can offer different solutions that are successful for them. And if we see ourselves being positioned potentially to be one of those, especially given our sort of prior success there, one of the things that was part of the Air Force call was they wanted it to be licensed with the Nuclear Regulatory Commission, but generally speaking, and there's a lot of new ones here, but generally speaking, the defense department can actually authorize their own, you know, nuclear plans.

Speaker Change #101: out

Speaker Change #101: you know, companies are looking at siting manufacturing capacity somewhere in the U.S.

Speaker Change #101: If power availability or access or reliability is a challenge, which it increasingly is, they're going to be turning to bring your own power solution, which is a win-win for everybody in many ways, and that's pretty constructive to us as well. So that's a big factor there. Then of course, you have the AI side.

Jake Dewitte: And that's pretty constructive to us as well, so that's a big factor there. And then, of course, you have, you know, the AI side. I think those three also then capture things in between the depends up, you know, opportunities are in resilience. There's opportunities for just replacing retiring assets on the power generation time. So there's a lot of things here that are kind of driving forward on this. So at the end of the day, I think, I think, you know, AI is a big piece here, but there's a lot of other demand drivers at this point. But we see AI right now moving faster than everything else.

Jake DeWitt: There are the defense opportunities around resilience. There are opportunities for just replacing retiring assets on the power generation side. So there's a lot of things here that are kind of driving forward on that. So at the end of the day, I think AI is a big piece here, but there are a lot of other demand drivers at this point. But we see AI right now moving faster than everything else. Thanks, Jake.

Speaker Change #101: I think those three also then capture things in between the defense opportunities around resilience. There's opportunities for just replacing retiring assets on the power generation side. So there's a lot of things here that are kind of driving forward on this.

Speaker Change #101: So, at the end of the day, I think AI is a big piece here, but there's a lot of other demand drivers at this point, but we see AI right now moving faster than everything else.

Jake Dewitte: So that is a pathway some are looking at pursuing some of the branches and some deployment cases are looking at as well as the potentiality. The thing we like about that is it provides sort of a, in our perspective, a backup option to the NRC, but it also provides a good sort of motivation that hey, look, this is something that can be done, but the preference is that the NRC does it, and the preference isn't based on just wishing and hopeful thinking, you know, the Air Force has been around some of the NRC meetings dating back to 2018, maybe even earlier, but like they've been engaging there to know that this is something that they have confidence that can be done, right?

Jake Dewitte: Thanks, Jake. Our next question is, could you provide an update on the expected completion timeline for your waste recycling facility? And once operational, what percentage of fuel in your powerhouses do you anticipate will come from this recycled source?

Jake DeWitt: Our next question is, could you provide an update on the expected completion timeline for your waste recycling facility? And once operational, what percentage of fuel in your powerhouses do you anticipate will come from this recycled source? Yeah, so fuel recycling is one of the things I'm really excited about. I could probably take way too long to answer all sorts of fun questions about this.

Speaker Change #101: [inaudible]

Speaker Change #101: Thanks, Jake. Our next question is, could you provide an update on the expected completion timeline for your waste recycling facility? And once operational, what percentage of fuel in your powerhouses do you anticipate will come from this recycled source?

Jake Dewitte: Yeah, so fuel recycling is one of the things I'm really excited about. I could probably take way too long to answer all sorts of fun things about this, so try to be concise on this. So recycling provides a pretty important way to diversify fuel streams for us, as well as the opportunity to reduce fuel costs in a pretty meaningful way, while also enhancing and diversifying revenue streams for the business from so-co-product sales. All in all, pretty exciting; something that we're then pursuing as quickly as we reasonably can, accordingly.

Speaker Change #102: Yeah, so fuel recycling is one of the things I'm really excited about. I could probably take way too long to answer all sorts of fun things about this, so try to be concise on this.

Jake DeWitt: So try to be concise on this. Recycling provides a pretty important way to diversify fuel streams for us, as well as the opportunity to reduce fuel costs in a pretty meaningful way, while also enhancing and diversifying revenue streams for the business. So co-product sales are all pretty exciting, something that we're then pursuing as quickly as we reasonably can accordingly. I think we aim to have a facility operational at the start of the decade, basically, so getting something built out in the late 2020s to be operational come 2029, 2030, and then starting to ramp operations from there. The way this process works, so like refining specifically, is it's modular, or it's a batch-wise process. So it's inherently modular.

Speaker Change #102: Recycling provides a pretty important way to diversify fuel streams for us, as well as the opportunity to reduce fuel costs in a pretty meaningful way, while also enhancing and diversifying revenue streams for the business from code product sales. All in all, pretty exciting, something that we're then pursuing.

Jake Dewitte: I can't speak fully for them, but from what we've seen are, you know, what they've identified is what's important about what they're offering. These, you know, powering these bases is mission critical for them. So they aren't going to be sort of jeopardizing that with some hopeful thinking about what a regulator can do, and I think they made the decision intentionally based on what they expect to be able to be done. That said, they also have optionality, which gives them great positioning, and we see that as generally speaking, a broad benefit for everybody.

Jake Dewitte: I think we aim to have a facility operational at the start of the decade, basically, so giving something built up in the late 2020s could be operational, come 2029, 2030, and then starting to ramp operations from there. The way this process works or like we're finding specifically is it's modular or it's batch wise process, so it's inherent in modular. So, as a result, we anticipate having sort of like a scale up and ramp up of modules in the larger scale facility to deliver as we scale. You know, our goal will be to move as quickly as we can to take up as much of the recycling capacity as we can, but we still see a need that will have fresh fuel input on largely because of sort of the order book and what we're anticipating the growth scenarios, like we're just talking about driving sort of the demand for our ability to deliver, which is going to inherently be hard for us to keep up with on the recycling side.

Speaker Change #102: as quickly as we reasonably can accordingly. I think we aim to have a facility operational at the start of the decade basically, so getting something built out in the late 2020s could be operational come 2029, 2030, and then starting to ramp operations from there. The way this process works, so like refining specifically, is it's modular or it's batch-wise process, so it's inherently modular.

Jake Dewitte: That's included as well as others. So that's kind of how we see that playing out. The nice thing for us, in general, it's sometimes very nice to work with government owned land, because it's well understood. It can also be challenged, obviously, because it comes with the fact that it might have other things around and on it. But at the end of the day, there are some benefits there. So our model of being able to cite where a customer wants us, including on their lands, worked pretty favorably for us and for the off-pickers.

Jake DeWitt: So as a result, we anticipate having sort of a scale up and ramp up of modules in the larger scale facility to deliver as we scale. You know, our goal will be to move as quickly as we can to take up as much of the recycling capacity as we can. But we still see a need that we'll have fresh fuel input on, largely because of the order book and what we're anticipating in the growth scenarios.

Speaker Change #102: So as a result, we anticipate having sort of like a scale-up and ramp-up of modules in the larger scale facility to deliver as we scale.

Speaker Change #102: You know.

Speaker Change #102: Our goal will be to move as quickly as we can to take up as much of the recycling capacity as we can, but we still see a need that will have fresh fuel input on largely because of sort of the order book and what we're anticipating the growth scenarios. Like we're just talking about driving sort of the demand for our ability to deliver, which is going to inherently, you know, be hard for us to keep up with on the recycling side.

Jake Dewitte: Jacob is also one of the reasons why we were really glad to get somebody like retired General Janssen on our board to get insights around that market sector. I would also note that, you know, I think this call the scheduled end of XPM Eastern Standard Time, but Jake and I are more than happy to stay on and continue answering questions.

Jake DeWitt: Like we're just talking about driving sort of the demand for our ability to deliver, which is going to inherently, you know, be hard for us to keep up with on the recycling side. So I think we target that, you know. Sometimes when I talk about this, you hear me say, we think in scales of very long time frames here. But I think it would take us, you know, frankly.

Jake Dewitte: So I think we target that, you know, I talked about this sometimes you hear me say we think and skills a very long time friends here, but I think it would take us, you know, frankly, you know, out for maybe 100 to 200 years to fully hit like a higher than maybe 85 or 90% full reliance on recycling. But in the near term, we try to get those numbers close to 50 50 as soon as we can. And a lot of that's just going to be dictated by growth on the recycling front as well, you know, growth on the order book.

Speaker Change #102: So I think we target that, you know, I talked about this sometimes you hear me say we think in scales of very long timeframes here, but I think it would take us, you know, frankly.

Jake Dewitte: We'll move next to Ryan Finks with B. Riley. Hey guys, thanks for taking my questions. Just curious, are you seeing a difference in demand between the 15 and 50 megawatt plants, you know, maybe if we're looking at the pipeline, how would that break down between the two? Yeah, so it's a great question, Ryan. So I think if you actually look at, you know, the things that were announced when I started with the company back in August of last year, so the projects in Ohio, the project in Idaho, the project at Ellison, those were all in the 15 megawatt size range, but most of the things that we've announced, subsequent to that, it's really caused that growth in the order book is more in the 5050 megawatt size range.

Jake DeWitt: You know, it will take maybe 100 or 200 years to fully hit a higher than maybe 85 or 90% full reliance on recycling. But in the near term, we try to get those numbers close to 5050 as soon as we can. A lot of that's just going to be dictated by growth on the recycling front as well as, you know, growth in the order book. And Jake, just to prove I'm listening when you talk about it, the other thing that excites me about recycling is, you know, not only what it can do around our supply chain for fuel and our and our price a few tools, but that process itself throws off some great co-products, some iso So there's potential. We have a business within that business as we develop it. And that will conclude the questions altogether.

Speaker Change #102: you know, out for maybe 100 or 200 years to fully hit like a higher than maybe 85 or 90% full reliance on recycling, but in the near term, we try to get those numbers close to 5050 as soon as we can. A lot of that's just going to be dictated by growth on the recycling front as well as, you know, growth on the order book.

Craig Belmer: And Jake, just to prove I'm listening when you talk about it, you know, the other thing that excites me about recycling is not only the what it can do around our supply chain for fuel and in our price a few.

Speaker Change #102: And Jake, just to prove I'm listening when you talk about it, you know, the other thing that excites me about recycling is, you know, not only the, what it can do around our supply chain for fuel and our, and our price a few.

Craig Belmer: But you know that process itself throws out throws off some great co products some isotopes that are under very high and ever increasing demand in the in the medical industry in the aerospace industry, so there's potentially a business within that business as we develop it.

Speaker Change #103: tool, but that process itself throws off some great co-products, some isotopes.

Speaker Change #103: that are under very high and ever-increasing demand in the medical industry, in the aerospace industry.

Jake Dewitte: Jake and I were also in a meeting a couple of weeks ago in our headquarters with a potential data center customer. You know, one of the things was great about that conversation is getting into the details of how are they thinking about deploying data centers at a greenfield site and how might we match up a deployment schedule of 50 megawatt powerhouses to support that. So I think it's just also an example of, you know, we're trying to be customer-oriented and customer responsive, you know, and I think now our order book kind of reflects that with probably more things in the 50 megawatt size than the 15.

Speaker Change #103: We have business within that business as we develop it.

Speaker Change #103: I'm sorry, I'm sorry, I'm sorry.

Operator: And that will conclude questions altogether.

Jake DeWitt: I'll turn the conference back to Jake for any additional or closing remarks. Great. Well, thank you, everyone, for joining us today. We appreciate your attention, your time, and your thoughtfulness around the questions. We're excited about keeping you guys up to date as we proceed forward on executing against our plans and march forward, getting our first plant built, getting recycling scaled up, delivering and growing our order book, and all the cool things that are going to be coming for us at the end of the day.

Jake Dewitte: I'll turn the conference back to Jake for any additional or closing comments. Great.

Speaker Change #103: And that will conclude questions altogether. I'll turn the conference back to Jake for any additional or closing comments.

Jake Dewitte: Well, thank you everyone for joining us today. We appreciate the attention, the time, the populist around the questions. We're excited about these continuing keeping you guys up to date as we proceed forward executing against our plans and march forward getting our first plant builds, getting recycling. We've scaled up delivering and growing our order book, all the cool things that are going to be coming for us. At the end of the day, one of the things that motivates us here and me, specifically, I don't know what's pretty easy to get really excited about is what the fundamental technology afforded the ability to do.

Jake DeWitt: Great, well thank you everyone for joining us today.

Jake DeWitt: We appreciate the attention, the time, and thoughtfulness around the questions. We're excited about these continuing, keeping you guys up to date as we proceed forward on executing against our plans and march forward getting our first plant built, getting recycling scaled up, delivering and growing our order book, all the cool things that are going to be coming for us. At the end of the day, one of the things that motivates us here, and me specifically at Oak Grove, it's pretty easy to get really excited about.

Craig Belmer: Got to appreciate that color, Craig. What about any update on how you're thinking about the estimated construction and fuel costs for your plants? I know we've spoken about 70 million-ish dollars being a good target for the 15 megawatt version, but wondering if you have an update there. You know, so if you looked at our investor-day material, I don't have a right in front of me, but you know, the 50 megawatt size is, I think, at first of a kind of about $145 million.

Jake DeWitt: One of the things that motivates us here, and me specifically, it's pretty easy to get really excited about what the fundamental technology affords us the ability to do. Fast reactors have significant economic upside, significant fuel efficiency benefits that, coupled with recycling, all of which demonstrate that all of which is demonstrated technology truly has the potential to be a terminal energy and climate solution. In other words, you have a technology set that's been demonstrated and proven that we now have the opportunity to scale forward with, that can tap into known reserves of heavy metals on this planet and power the entire planet's energy needs for the rest of the planet's durable lifetime.

Jake Dewitte: You know, fast reactors have significant economic upside, significant fuel efficiency benefits that, coupled with recycling, all which demonstrated all which demonstrated technology. You truly have the potential to be a terminal energy and climate solution. In other words, you have a technology set that's been demonstrated and proven that we now have the opportunity to scale forward that can tap into many reserves of heavy metals on this planet and power the entire planet's energy needs for the rest of the planet's durable lifetime. That's a pretty exciting thing to be motivated to work on or exciting thing because the work on pretty easy to get motivated to work on.

Jake DeWitt: is what the fundamental technology affords us the ability to do.

Jake DeWitt: You know, fast reactors have significant economic upside, significant fuel efficiency benefits that coupled with recycling, all of which is demonstrated technology, truly has the potential to be a terminal energy and climate solution. In other words, you have a technology set that's been demonstrated and proven that we now have the opportunity to scale forward.

Craig Belmer: It decreases, you know, when we apply some of those economies of scale, fuel costs have gone up since that time, so I think we would see an increase on that number, but also as we were speaking earlier, just the overall demand and power and the pricing around PPAs is also going up to help offset. The other thing that does help us a bit is in all of those financials that we showed back in the investor day, we were not assuming any benefit from ITCs, but the ITC actually goes against both the asset cost and the fuel cost, so there is a little bit of an element of the ITC bid in that 30-40% range that can act as a hedge against those inflationary pressures.

Jake DeWitt: that can tap into known reserves of heavy metals on this planet and power the entire planet's energy needs for the rest of the planet's durable lifetime.

Jake DeWitt: That's a pretty exciting thing to be motivated to work on, an exciting thing to get to work on, pretty easy to get motivated to work on. So we're very excited about being a public company now. I look forward to keeping you all up to date as we progress towards our goal and our mission here and look forward to the next one. Thank you all. Thank you. That does conclude today's program. Thank you for your participation. You may disconnect at this time. I know!

Jake DeWitt: That's a pretty exciting thing to be motivated to work, or exciting thing to get to work on, pretty easy to get motivated to work on.

Jake Dewitte: So we're very excited about, you know, being a public company now. I'm looking forward to keeping you all up to date as we progress towards our goal and our mission here and look forward to the next one of these.

Jake DeWitt: So, we're very excited about, you know, being a public company now, looking forward to keeping you all up to date as we progress towards our goal and our mission here, and look forward to the next one of these. Thank you all.

Operator: Thank you all.

Operator: Thank you.

Operator: That does conclude today's program. Thank you for your participation. You may.

Speaker Change #104: Thank you. That does conclude today's program. Thank you for your participation. You may disconnect at this time.

Craig Belmer: We'll go to our next question from Jeffrey Campbell with Seaport Research Parts. Good evening and thank you for all the color. As you think about possible Title 17 loan applications, is this effort aimed more toward installations after the initial, I don't know, national laboratory installation and so are you thinking more about a project by project type of financing or perhaps multiple projects and one application? I think Jeff at this point were probably looking at both of those scenarios and there's probably a middle ground that if we do have a project that is made up of more than one powerhouse, you could actually bundle that up as well as we look at exploring financing strategies.

Craig Belmer: The other thing I try to call out in the fly that looked at that mix of, you know, for each project how much is coming from cash off the balance sheet versus financing structures. You know, one of the things that Graham Johnson is our treasure and I are starting to look at is overall what would be the right mix around tax financing structures, things like the loan program office as well as project financing structures just so we can get both the right mix of cost of capital. But you know, not all financing structures are created equal in terms of the effort is going to take to put one of those in place.

Craig Belmer: Okay, thank you. If you look ahead to a time when you have multiple installation projects operating simultaneously, do you imagine that the work will accrue to a handful of EPCs who will have aligned to your work or is it going to be more of an EPC separate EPC aligned to each separate project? Yes, it's a thoughtful question and it's more the former review strongly has been to, you know, create and maintain a competitive environment amongst the EPCs and work with a number of different ones based on sort of regional and maybe site specific experience characteristics or preferences.

Craig Belmer: But that way we have, you know, diversity in our in our sort of EPC bench, while also having flexibility and also having arts a, you know, competitiveness from a cost perspective. And that's I think quite, quite constructive for what we're trying to do that that said, you know, it does like some of this does get specialized as we look at certain specific deployment scenarios or, for example, certain defense projects. There's likely a narrower sense of EPCs we've been wanting to work with just given what would probably be preferred for prior experience.

Craig Belmer: But generally speaking, an average week or on average, we expect to have, you know, kind of a relatively deep bench of folks that we can work with accordingly to get these things built out and scaled out accordingly.

Graham Price: We'll take our next question from Graham Price with Raymond James. Hi, good afternoon. Thanks for taking my question and for fitting me in just one on my end.

Jake Dewitte: I guess wondering if we could get an update on the project with diamondback energy, specifically, you know, what's the real list, the timetable for deployment there. Yeah, so basically, you know, we announced the partnership with them, largely STEM STEM from, you know, engagement we started having with them towards the end of 2023. So we're going through the process of identifying the specific sites they want us to be on. Sorry, the specific site of the number of sites are looking at they want us to be on.

Jake Dewitte: You know, from our perspective, we do this as a kind of an initial project. I think given the what we see is sort of the demand projections for electrification and the Permian. This is just like, you know, a toe in the water, so to speak. So an exciting one, but wanting to obviously make sure it's impactful and also something that position thing for more successful scalability. So as we go through that effort, I think we're targeting, you know, developing out the specific site, developing up into the PTA with all those factors in mind to towards, you know, potentiality for future expansion possibly.

Jake Dewitte: So it takes takes a good amount of work to go through those efforts. There's also a lot of great constraints down there and just broadly speaking in the Permian, but not everywhere. So obviously mindful of that kind of changes how we think about the site selection processes and down selection processes. And then, you know, I think depending on timelines, we'd expect something in the 2028 to 2029 window for initial power generation.

Jake Dewitte: At this point, but some of that's going to be largely dependent on sort of where and how diamond back is going to want to proceed with the times with those specific location selection process. But that's that's kind of how we're marching forward on our end.

Jake Dewitte: Got it. I guess just probably how does the opportunity set look for the oil and gas space in the Permian and other basins as well? You know, it's pretty, it's very exciting. It's very large. I think as we see what we've been learning about or should say we myself personally been learning about the opportunities around electrification and the benefits that gives the operator in the region that's pretty promising. You know, I think we, we see, you know, we see a pretty large order of potential down there.

Jake Dewitte: And our model is well positioned to kind of provide into that. You know, the numbers are going to be, you know, it depends on a number of factors, but we've seen people talk externally on the, you know, hundreds of megawatts to a couple of gigawatts of power would be needed for electrification. And so, so I think as you kind of think about how about part size that I think that's a reasonable starting point.

Jake Dewitte: That said, you know, part of our view and part of the sort of strategic developments we've taken here. You know, last year we raised capital before the transaction course of last year from from Liberty Energy Services and through the process got to know Chris Wright has enjoyed our board here. We closed the transaction and given his position and expertise in the field. Part of his conviction about this was obviously he loves the story around nuclear and energy abundance, but also some of the potentiality for the market development side on the oil and gas piece and things.

Jake Dewitte: So, so I see quite a bit of upside on there. I just was the one that rambled while I see if I actually spent a good amount of time in the oil and gas industry, so very good. And if you want to add anything on that, but I would just say, you know, 30 years in the oil and gas sector. And most of the operations need to operate 24 seven, they want reliability. And most of most of the majors have got some form of carbon reduction targets that they're trying to meet to. So I think our offer works.

Ivan Feinsatz: We'll move to our next question from Ivan Feinsatz with Tigress. Your line is open. Please go ahead. Thank you. Congratulations on the progress and the first public call and thanks for taking my questions. On slide 20 with your pipeline, can you give us some like outline of the steps from signing the initial letter to going through the process to getting a final power? Yes, so basically, you know, the way this works for us, kind of from a process perspective, as we start engaging with customers is to sort of progress it through that relationship because each site, each consideration around the market, each customer, when I say the market, I mean the local market consideration.

Ivan Feinsatz: Each customer, everything is variable. So we go through a process of sort of, you know, marching through progression as we as we engage with customers and they're interested to move forward, often starting with either a memorandum of understanding, which is kind of set a broad scope to survey things and figure out where we want to go. And then that often kind of goes into a letter of intent to effectively, you know, purchase power from us, that outline site and size and price ranges.

Ivan Feinsatz: Yeah, sometimes customers know enough, so they kind of leap forward the MAU and they get straight to the ROI. Actually, that's been more often the case for us. And then from there, we go through a process of working with them to determine site, determine where we want to like where makes the most sense to go. Oftentimes these projects or these these kind of, you know, these yellow eyes would entail multiple plans being built.

Ivan Feinsatz: So you want to be mindful about how the growth plan works there too, as we go through site selection for your process. And then once those things are identified and determined, you know, you're going through that. You're doing the PPA development and detailed negotiation accordingly in parallel and then subsequent to develop finalizing on site. At which point then once you have a PPA sign, we kind of transition into execution. But right now it's in our advantage not to just rush into PPA's given there's so much demand up there and they're going to constrain our opportunities or our ability to, you know, let me say that.

Ivan Feinsatz: As we look at what the demand, you know, occurs are and the indications out there and we look more high level at what the projections are right for what people are talking about needing and all of these factors are very good for us. It does, it does create, you know, a situation where we might be over subscribed in our, you know, our ability to deliver for a couple of years just given that there's so much interest.

Ivan Feinsatz: Now there's a lot of interest on the back end for that timing. So we want to work with customers to see what makes the most sense that the days of those things. But it's a great place to be because it gives us a good position in terms of how we think about the improvisation and execution accordingly. And Ivan, it's Craig. I know one of the challenges on a day like today is we put a lot of materials out there and there's only an hour to look at them.

Jake Dewitte: But I think it's page eight of our shareholder letter actually has a nice little visualization of the steps from that MOU stage that Jake mentioned until actually get in a PPA place. Okay, but now one of my questions, let's say you have a potential customer that's already running a data center. They have land and they want just to contract with you with they be able to streamline the licensing perm, you know, the approval process.

Jake Dewitte: I would believe that you have tremendous demand and probably the bottleneck is the ability to get regulatory approval all the way down to, you know, permits to build and eventually implement. So do you have customers in the pipeline that would fit like that outline that could streamline the process? And also, what is the process of, let's say, taking deposits of goods or financial commitments that also could help finance the, you know, the build out of the, of the reactors?

Jake Dewitte: Yeah, I'll just start on the siding and Craig, feel free to join in. So, there are some benefits when they have a site and you know, where we want to go for, for various reasons, I think they have infrastructure in hand and everything else, so that does just have some benefits. But most of those benefits are going to be realized on the actual, like, construction and installation phase, the permitting process itself, you know, at the local level might benefit some, but that's largely wrapped up in the federal side.

Jake Dewitte: So, so you most are going to see the benefits kind of on the construction side. That said, it helps drive the process forward and it makes things clear and simpler, which is a good thing when you do have a customer who's like that. And, you know, in, I would say, you know, of several, like, of the customers we've announced and been talking quite a bit about, on the data center side, it's a mix of some of the site they very specifically know and want power at others have, you know, a variety of sites that they're kind of exploring and trying to prioritize where, you know, they're going to see the demand go and then where we can go.

Jake Dewitte: So it's co iterative. So, just depend, you know, kind of on a case by case basis, but I do think in general places that have sites and have the area and land for us to be able to go build with them. Have a strong advantage when it comes to, you know, the overall speed of deployment, if it exists. And I would say, you know, the question on financing that we've already got one great example of equinix investment in the company and.

Jake Dewitte: Now, every customer is going to look at those sorts of things differently. Me, me more than happy to entertain those sorts of conversations with some of our other customers that. Thank you. That will conclude the analyst Q and A portion.

Sam Doane: I will now turn the call back to Sam Don to address retail questions. Thanks, Jess. Our first question from our retail investors are A.I, has been a big buzzword, but where else is the focus for oak low and what goes beyond powering just that facet of the future. Yeah, I think it's definitely getting a lot of attention in terms of, you know, growth, opportunity, energy needs, all these things. I think we see it's quite constructive and driving, obviously like data center development and growth, but there were a couple of big macro factors in hand, even before sort of I would say A.I, kind of came storming on the scene from an energy perspective.

Sam Doane: Obviously given our chairman has a pretty unique insight in the future of AI. We've kind of been excited about what to be in the data center side for some time, but the reality is there's been several dynamics here that are favorable for us. One is, you know, we have the energy transition perspective in hand. In process, I would almost call it that was that's that is I think moving at pace. You know, that was kind of, you know, I think we're coming up right around now is the two year anniversary of the inflation reduction.

Sam Doane: Obviously a big piece of legislation and policy to move forward and try to accelerate the energy transition. That is creating a huge amount of demand for electrification and that that number might take time to fully realize. But if you look at what's on hand for that in front of the nation for that, the numbers are staggeringly large and not the huge amount of opportunity just there. Additionally, we also have this other big map or factor occurring, which is, you know, let me just add some concept on energy transition.

Sam Doane: This is just generalize electrification and sustainable and actually scalable electrification and a meaningful way, which means, you know, we need to have a whole portfolio or a whole grid as perspective. And nuclear is going to play really important part of that, which is why, you know, a year over a year ago, the Department of Energy had reports that projected nuclear capacity would something really triple or so in terms of, you know, just meeting energy transitioning.

Sam Doane: That's a huge right opportunity alone, though, and you see capacity markets recently reflecting that the topic capacity markets pricing and PJ and went, you know, factor nine ups or something like that, a significant increase that reflects sort of the obviously capacity factor for new capacity value that you plan forward. And some of the shortfalls that some of the deployment of clean energy technology has had in terms of what it's drained on the grid and how to make sure pricing reflects all the things.

Sam Doane: So all in all, the energy transition is one of the big pillars here for growth. It's that, you know, massive scale. The other is then, and why me massive scale is, you know, you look at the numbers and it's, you know, tens to hundreds of gigawatts and total size for that. Additionally, we look at this massive reindustrialization occurring in the US, the chipback is a good example of that as we're trying to drive bringing manufacturing back into the United States.

Sam Doane: That needs energy. A lot of those facilities need 24 seven reliable energy, frankly, to run an energy cost can be sizable for the input on that. And so I think you're going to see that increasingly play a role in as, you know, companies are looking at citing manufacturing capacity somewhere in the US. If power availability or access or reliability is a challenge, which it increasingly is, they're going to be turning to bring your power solution, which is a win win for kind of everybody in many ways.

Sam Doane: And that's pretty constructive to us as well, so that's a big factor there. And then, of course, you have, you know, the AI side. I think those three also then capture things in between the depends up, you know, opportunities are in resilience. There's opportunities for just replacing retiring assets on the power generation time. So there's a lot of things here that are kind of driving forward on this. So at the end of the day, I think, I think, you know, AI is a big piece here, but there's a lot of other demand drivers at this point, but we see AI right now moving faster than everything else. Thanks, Jake.

Jake Dewitte: Our next question is, could you provide an update on the expected completion timeline for your waste recycling facility? And once operational, what percentage of fuel in your powerhouses do you anticipate will come from this recycled source? Yeah, so fuel recycling is one of the things I'm really excited about. I could probably take way too long to answer all sorts of fun things about this, so try to be concise on this. So recycling provides a pretty important way to diversify fuel streams for us as well as the opportunity to reduce fuel costs in a pretty meaningful way, while also enhancing and diversifying revenue streams for the business from so-co-product sales.

Jake Dewitte: All in all, pretty exciting, something that we're then pursuing as quickly as we reasonably can, accordingly. I think we aim to have a facility operational at the start of the decade, basically, so giving something built up in the late 2020s could be operational, come 20, 29, 20, 30, and then starting to ramp operations from there. The way this process works or like we're finding specifically is it's modular or it's batch wise process so it's inherent in modular.

Jake Dewitte: So as a result, we anticipate having sort of like a scale up and ramp up of modules in the larger scale facility to deliver as we scale. You know, our goal will be to move as quickly as we can to take up as much of the recycling capacity as we can, but we still see a need that will have fresh fuel input on largely because of sort of the order book and what we're anticipating the growth scenarios, like we're just talking about driving sort of the demand for our ability to deliver, which is going to inherently be hard for us to keep up with on the recycling side.

Jake Dewitte: So I think we target that, you know, I talked about this sometimes you hear me say we think and skills a very long time friends here, but I think it would take us, you know, frankly, you know, out for maybe 100 to 200 years to fully hit like a higher than maybe 85 or 90% full reliance on recycling, but in the near term, we try to get those numbers close to 50 50 as soon as we can. And a lot of that's just going to be dictated by growth on the recycling front as well, you know, growth on the order book.

Jake Dewitte: And Jake, just to prove I'm listening when you talk about it, you know, the other thing that excites me about recycling is not only the what it can do around our supply chain for fuel and in our price a few. But you know that process itself throws out throws off some great co products some isotopes that are under very high and ever increasing demand in the in the medical industry in the aerospace industry, so there's potentially a business within that business as we develop it.

Jake Dewitte: And that will conclude questions altogether. I'll turn the conference back to Jake for any additional or closing comments. Great. Well, thank you everyone for joining us today. We appreciate the attention, the time, the populist around the questions. We're excited about these continuing keeping you guys up to date as we proceed forward executing against our plans and March forward getting our first plant builds, getting recycling. We've scaled up delivering and growing our order book, all the cool things that are going to be coming for us.

Jake Dewitte: At the end of the day, one of the things that motivates us here and me, specifically, I don't know what's pretty easy to get really excited about is what the fundamental technology afforded the ability to do. You know, fast reactors have significant economic upside, significant fuel efficiency benefits that coupled with recycling, all which demonstrated all which demonstrated technology. You truly have the potential to be a terminal energy and climate solution. In other words, you have a technology set that's been demonstrated and proven that we now have the opportunity to scale forward that can tap into many reserves of heavy metals on this planet and power the entire planet's energy needs for the rest of the planet's durable lifetime.

Jake Dewitte: That's a pretty exciting thing to be motivated to work or exciting thing because the work on pretty easy to get motivated to work on. So we're very excited about, you know, being a public company now, I'm looking forward to keeping you all up to date as we progress towards our goal and our mission here and look forward to the next one of these. Thank you all. Thank you.

Operator: That does conclude today's program. Thank you for your participation. You may