Q4 2024 Oklo Inc Earnings Call
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Speaker Change: I'll now turn the call over to some dune director of Investor Relations. Please go ahead.
Speaker Change: Thank you operator, and good day, everyone and welcome to <unk> fourth quarter and annual company update and earnings call. Joining me today are <unk> <unk> co founder and Chief Executive Officer, and Craig Delmar, <unk> Chief Financial Officer.
Speaker Change: Earlier today after market close we announced our fourth quarter and full year 2024 earnings you can find our shareholder letter and supplemental slides on the Investor Relations page of our website.
Speaker Change: Before we begin I'd like to remind everyone that our discussion today, including our remarks and the Q&A session will include forward looking statements. These statements reflect our current views on trends assumptions risks uncertainties and other factors that could cause actual results to differ materially from what we discuss today.
Speaker Change: We encourage you to review the forward looking statements language in our shareholder letter and supplemental slides for additional context you.
Speaker Change: You can also find the discussion of relevant risk factors in our most recent SEC filings.
Speaker Change: <unk> assumes no obligation to update these statements as a result of new information future events or otherwise except as required by law.
Thank you for standing by my name is Karen and I will be your conference spirit or today at this time I would like to welcome everyone to the all Clos fourth quarter, China, Jenny for financial results and business update call.
Speaker Change: I'll now turn the call over to <unk> co founder and Chief Executive Officer Jake.
Jake: Thanks, Sam and thank you all for joining US today, we're excited to share our quarterly and full year update and provide insights into <unk> progress over the past 12 months.
Jake: <unk> was founded on the belief that there are significant opportunities for advanced nuclear technology, we saw an industry that had stagnated and recognize the need to rethink how new nuclear technologies can be brought to market. We started <unk> to seize this opportunity and fulfill our mission to deliver clean reliable and affordable energy on a global scale.
All lines have been placed on mute to prevent any background noise.
After todays presentation, there will be and opportunity to ask questions. You ask a question you May press star followed by the number one on your telephone keypad.
Did withdraw your question you May press Star followed by the number one your gap.
Jake: The momentum behind nuclear energy has never been stronger the new administration has made it clear that nuclear power is a cornerstone of America's energy future with direct policy actions to inflict endorsements supporting its expansion key.
Joan: I'll now turn the call over to some Joan <unk> director of Investor Relations.
Please go ahead.
Jake: <unk> always said in government and industry are reinforcing the need for advanced nuclear deployment energy Secretary and former Board member, Chris <unk> stated that the long awaited American nuclear Renaissance must launch now he said were at the start of Manhattan project too.
Speaker Change: Thank you operator, and good day, everyone and welcome to <unk> fourth quarter and annual company update and earnings call. Joining me today are Jay to wait of course, co founder and Chief Executive Officer, and Craig Ballmer, Chief Financial Officer.
Speaker Change: Today after market close we announced our fourth quarter and full year 2024 earnings you can find our shareholder letter and supplemental slides on the Investor Relations page of our website.
Jake: It is critical just like Manhattan project, one for the United States wins. This race and has emphasized the administration's commitment through financial and regulatory support to enable rapid deployment and commercialization of next generation nuclear technology.
Speaker Change: Before we begin I'd like to remind everyone that our discussion today, including our remarks and the Q&A session will include forward looking statements. These statements reflect our current views on trends assumptions risks uncertainties and other factors that could cause actual results to differ materially from what we discuss today.
Speaker Change: President Trump has recently highlighted the advantages of small scalable nuclear plants.
Speaker Change: These statements reflect our growing consensus nuclear is essential for energy abundance and small advanced nuclear reactor provide a practical cost effective path forward.
The demand for power is growing at an unprecedented rate and while AI driven data centers are a major contributor they're not the only source of this growth.
Speaker Change: We encourage you to review the forward looking statements language in our shareholder letter and supplemental slides for additional context.
Speaker Change: Slide shows other sectors residential transportation commercial and industrial are also driving sustained energy needs.
Speaker Change: You can also find the discussion of relevant risk factors in our most recent SEC filings.
Speaker Change: Assumes no obligation to update these statements as a result of new information future events or otherwise except as required by law.
Speaker Change: U S power demand is projected to grow greater than 160% through 2030 with data centers contributing approximately 31% of this increase.
Speaker Change: With that I'll now turn the call over to Jake the weight of those co founder and Chief Executive Officer Jake.
Speaker Change: Demonstrated that <unk> is uniquely positioned to take advantage of the staggering potential growth.
Jake Weight: Thanks, Sam and thank you all for joining US today, we're excited to share our quarterly and full year update and provide insights into who is progress over the past 12 months <unk> was founded on the belief that there are significant opportunities for advanced nuclear technology, we saw an industry that had stagnated and recognize the need to rethink how new nuclear technologies can be brought to market. We started a quota seize this opportunity.
Speaker Change: Our build own operate model and small scalable powerhouse designs are well suited for a broad range of applications, ensuring we can meet growing energy needs across multiple sectors.
Speaker Change: I don't believe our strategy is built on three core pillars that we believe will fundamentally transform how nuclear power is delivered to our customers versus our business model. We've designed a model that simplifies the process for customers to purchase clean power at scale, eliminating traditional complexities and points of friction.
Jake Weight: <unk> and fulfill our mission to deliver clean reliable and affordable energy on a global scale.
Jake Weight: The momentum behind nuclear energy has never been stronger the new administration has made it clear that nuclear power is a cornerstone of America's energy future with direct policy actions and endorsements supporting its expansion key.
Speaker Change: Second is our reactor size or small scale reactors allow us to achieve greater capital efficiency, while meeting customer demand incrementally. This is the first not only optimizes our financial performance by creating a recurring revenue model, but also delivered resilient and redundant power solutions, ensuring operational reliability.
Jake Weight: The voices in government and industry are reinforcing the need for advanced nuclear deployment energy Secretary and former Oakland Board member, Chris Wright's stated that the long awaited American nuclear Renaissance must launch now he said were at the start of Manhattan project too.
Finally, our technology sets us apart by utilizing technology backed by centuries of accumulative reactor operation experience, our use of liquid sodium cool and it provides significant economic and operational advantages. This technology underpins our ability to deploy advanced nuclear solutions that are both efficient and cost effective.
Jake Weight: It is critical just like Manhattan project, one that the United States wins. This race has emphasized the administration's commitment through financial and regulatory support to enable rapid deployment and commercialization of next generation nuclear technology.
Speaker Change: 2024 was a transformative year for <unk> marked by major commercial technological and regulatory milestones. We started the year with a 500 megawatt partnership with Equinix one of the largest Colocation data center companies in the world supported by a $25 million investment through the form of a prepayment.
Jake Weight: President Trump has recently highlighted the advantages of small scalable nuclear plants.
Jake Weight: These statements reflect our growing consensus nuclear is essential for energy abundance and small advanced nuclear reactors provided practical cost effective path forward.
Speaker Change: It's really kicked off a partnership way between nuclear technology companies into AI data center companies.
Jake Weight: The demand for power is growing at an unprecedented rate and while AI driven data centers are a major contributor they're not the only source of this growth. This slide shows other sectors residential transportation commercial and industrial are also driving sustained energy needs.
Speaker Change: Building on this momentum we signed a letter of intent with Diamondback energy for 50 megawatts, demonstrating an emerging demand for nuclear energy in the oil and gas sector as companies seek long term sustainable energy solutions to electrify their operations.
Speaker Change: We also expanded our presence in the data center space by sending a letter of intent with Prometheus Hyperscale to deliver 100 megawatts of clean power to next generation AI infrastructure.
Jake Weight: U S power demand is projected to grow greater than 160% through 2030 with data centers contributing approximately 31% of this increase.
Speaker Change: We ended the year by sending what is potentially the largest corporate clean power agreement ever with switch for 12 Gigawatts of power to put the magnitude of this agreement into perspective that is equivalent to approximately 1% of the U S. Grid. This is a massive opportunity for us not just because of the size of the power needs, but for the multi pronged partnership with switch to work together to bring nuclear market at scale.
Jake Weight: Demonstrated that <unk> is uniquely positioned to take advantage of this staggering potential growth.
Jake Weight: Our build own operate model and small scalable Paris designs are well suited for a broad range of applications and ensuring we can meet growing energy needs across multiple sectors.
Jake Weight: I don't believe our strategy is built on three core pillars that we believe will fundamentally transform how nuclear power is delivered to our customers first as our business model. We've designed a model that simplifies the process for customers to purchase clean power at scale, eliminating traditional complexities and points of friction.
Speaker Change: One highlight to me of this partnership is about building data centers, a significant similarities to building small reactors. If you think about data centers, there are fixed civil assets into which prefabricated and manufactured components and systems are installed and electrical and cooling systems are tied together and the power and heat through the system.
Jake Weight: Second is our reactor size or small scale will reactors allow us to achieve greater capital efficiency, while meeting customer demand incrementally. This approach not only optimizes, our financial performance by creating a recurring revenue model, but also delivered resilient and redundant power solutions, ensuring operational reliability.
Speaker Change: This has similarities to building small reactors.
Speaker Change: Fixed civil facilities into which prefabricated that manufactured components are installed in electrical and cooling systems are integrated and tied together.
Jake Weight: Finally, our technology sets us apart by utilizing technology backed by centuries of accumulative reactor operation experience, our use of lipid sodium couldnt provide significant economic and operational advantages. This technology underpins our ability to deploy advanced nuclear solutions that are both efficient and cost effective.
Speaker Change: Working with switches expertise you will likely be accelerated to us and we're excited about how this will progress.
Speaker Change: In May 2024, we went public on the New York stock exchange under the ticker O K L O a defining step in our growth.
Speaker Change: Beyond our commercial success, we made major progress in our regulatory strategy and in building our nuclear technology platform.
Jake Weight: 'twenty 'twenty four was a transformative year for Oclaro, Mark by major commercial technological and regulatory milestones. We started the year with a 500 megawatt partnership with Equinox, one of the largest co location data center companies in the world supported by a $25 million investment through the form of a prepayment.
Speaker Change: Idaho National lab, or I know powerhouse project remains on track to be the first commercial small nuclear reactor built in the U S with key approvals and an environmental compliance permits secured we also advanced our Aurora fuel fabrication facility receiving approval for its safety design strategy reinforcing our ability to produce advanced reactor fuel domestically.
Jake Weight: This really kicked off the partnership way between the great technology companies and AI data center companies.
Jake Weight: Building on this momentum we signed a letter of intent with Diamondback energy for 50 megawatts, demonstrating an emerging demand for nuclear energy in the oil and gas sector as companies seek long term sustainable energy solutions to electrify their operations.
Speaker Change: <unk>.
Speaker Change: But what was the only advanced nuclear company with high assay low enriched uranium also known as <unk> fuel secured for its first appointment a significant competitive advantage that ensures we can move forward without fuel supply chain delays.
Jake Weight: We also expanded our presence in the data center space by sending a letter of intent with Prometheus Hyperscale to deliver 100 megawatts of clean power to next generation AI infrastructure.
Speaker Change: We also successfully demonstrated our in the infield recycling process proving.
Speaker Change: Proving our ability to close the nuclear fuel cycle and leverage both fresh and recycled fuel for long term sustainability and growth.
Jake Weight: We ended the year by sending what is potentially the largest corporate clean power agreement ever with switch for 12 Gigawatts of power to put the magnitude of this agreement into perspective that is equivalent to approximately 1% of the U S. Grid. This is a massive opportunity for us not just because of the size of the power need but for the multi pronged partnership with switch to work together to bring nuclear market at scale.
Speaker Change: As we continue to execute on our strategy, we remain committed to keeping the market informed as clear and consistent updates on our progress our company updates are structured around six key focus areas.
Speaker Change: Project execution reactor licensing progress fuel fabrication and recycling customer pipeline development strategic partnerships for corporate and business development and financial updates.
Jake Weight: One highlight to me of this partnership is that building data centers had significant similarities to building small reactors. If you think about data centers, there are fixed civil assets into which prefabricated and manufactured components and systems are installed and electrical and cooling systems are tied together with power and heat through the system.
Speaker Change: But last quarter was marked by a major commercial regulatory and technology milestones that drive us toward commercialization.
Speaker Change: To meet increasing customer demand, we extended our powerhouse offering to support up to 75 megawatts of power output building on the same design architecture of the 50 megawatt powerhouse to deliver more power without changing our reactor design footprint or regulatory framework. The scalable platform strengthens our ability to serve energy intensive industries efficiently on the regulatory front, we continue to advance key.
Jake Weight: This has similarities to building small reactors.
Jake Weight: Civil facilities into which prefabricated that manufactured components are installed in electrical and cooling systems are integrated and tied together.
Jake Weight: Working with switches expertise year will likely be accelerated to us and we're excited about how this will progress.
Jake Weight: In May 2024, we went public on the New York stock exchange under the ticker O K L O the defining step in our growth.
Speaker Change: Approvals with the NRC and.
Speaker Change: Sure and steady progress towards deployment, we are working with the NRC through pre application readiness assessment for we're a powerhouse combined license application at Idaho National Laboratory.
Jake Weight: Beyond our commercial success, we made major progress in our regulatory strategy and in building our nuclear technology platform.
Speaker Change: Commercially we signed a landmark 12 gigawatt mastered power agreement with switch underscoring the growing demand for reliable carbon free baseload power and positioning Oklahoma at the forefront of the energy transition.
Jake Weight: Our Idaho National lab, or I know powerhouse project remains on track to be the first commercial small nuclear reactor built in the U S with key Doa approvals and an environmental compliance permits secured we also advanced our Aurora fuel fabrication facility receiving approval for its safety design strategy reinforcing our ability to produce advanced reactor fuel domestically.
Speaker Change: We're also strengthening our capabilities through strategic partnerships, our agreement with our power provide near term natural gas solutions as a bridge to nuclear offering customers flexible energy options that can accelerate timeframes. Additionally, our Mou with light bridge explore as co locating commercial fuel fabrication recycling reinforcing our long term fuel strategy.
Jake Weight: <unk>.
Jake Weight: Because the only advanced nuclear company with high assay low enriched uranium also known as <unk> fuel secured for its first appointment a significant competitive advantage that ensures we can move forward without fuel supply chain delays.
Speaker Change: Beyond power generation, we've expanded into the high value radioisotope market with the completion of our atomic Alka in the acquisition.
Jake Weight: We also successfully demonstrated our in the infield recycling process proving.
Speaker Change: To make progress towards near term radioisotope opportunities and in the regulatory pre exploitation work to deploy their Viper reactor. We're also driving next generation materials innovation through collaborations with the Doe and Oak Ridge National Laboratory.
Jake Weight: Proving our ability to close the nuclear fuel cycle and leverage both fresh and recycled fuel for long term sustainability and growth.
Jake Weight: As we continue to execute on our strategy, we remain committed to keeping the market informed as clear consistent updates on our progress our company updates are structured around six key focus areas.
Speaker Change: With strong financial positioning scalable technology and growing customer demand, we enter 2025 with clear momentum accelerating towards appointment and cementing, Oklahoma as a leader in the advanced nuclear space.
Jake Weight: Project execution reactor licensing progress fuel fabrication and recycling customer pipeline development strategic partnerships for corporate and business development and financial updates.
Speaker Change: Over the years, we've made significant progress in refining our powerhouse platform. We initially developed both 15 megawatts and 50 megawatts designs that are consolidated our approach around a 50 megawatt architecture.
Jake Weight: But last quarter was marked by a major commercial regulatory and technology milestones that drive us toward commercialization.
Speaker Change: This allowed us to scale power output efficiently by simply addressing things like fuel load and heat exchangers with this approach we can flexibly deliver between 15 megawatts and 75 megawatts from the same design platform adapting to different customer needs, while maintaining a streamlined supply chain regulatory approach.
To meet increasing customer demand, we expanded our powerhouse offering to support up to 75 megawatts of power output building on the same design architecture of the 50 megawatt powerhouse to deliver more power without changing our reactor design footprint or regulatory framework.
Jake Weight: The scalable platform strengthens our ability to serve energy intensive industries efficiently on the regulatory front, we continue to advance key approvals with the NRC N. D are we ensuring steady progress towards deployment, we are working with the NRC through pre application readiness assessment for we're a powerhouse combined license application at Idaho National Laboratory.
Speaker Change: The decision to scale up to 75 megawatts is driven by demand characteristics from large energy users, particularly data centers. This power range aligns well with the infrastructure of these customers, including at the data hall level and it reduces the number of reactors needed to support gigawatt scale projects.
Speaker Change: We anticipate the majority of our plants will operate in the 60 to 75 megawatt range.
Jake Weight: Commercially we signed a landmark 12 gigawatt mastered power agreement with switch underscoring the growing demand for reliable carbon free baseload power and positioning <unk> at the forefront of the energy transition.
Speaker Change: Importantly, this update does not introduce new technical regulatory design risk.
Speaker Change: Imaging the same core technology optimizing it to deliver more power, while maintaining the benefits of a compact repeatable system.
Jake Weight: We're also strengthening our capabilities through strategic partnerships our agreement with our power provides near term natural gas solutions as a bridge to nuclear offering customers flexible energy options that can accelerate timeframes. Additionally, our Mou with light bridge exploring co locating commercial fuel fabrication recycling reinforcing our long term fuel strategy.
Speaker Change: By focusing on design flexibility scalability and cost efficiency continues to provide innovative and capital efficient nuclear power solution to meet the evolving needs of our customers.
Speaker Change: <unk> continues to make steady progress on our first commercial Aurora powerhouse at the Idaho National Laboratory or <unk>, we are actively engaging with the U S. Nuclear regulatory commission through a pre application readiness assessment for our Aurora powerhouse combined license application at Idaho National Laboratory.
Jake Weight: Beyond power generation, we've expanded into the high value radioisotope market with the completion of our atomic Alchemy acquisition continues to make progress towards near term radioisotope opportunities and in the regulatory pre explication work to deploy their Viper reactor. We're also driving next generation materials innovation through collaborations with the D E and Oak Ridge National Laboratory.
Speaker Change: This enables NRC theft to review and familiarize themselves with locals licensing materials out of the formal application submission streamlining regulatory review and positioning us for an efficient approval process.
Jake Weight: Strong financial positioning scalable technology and growing customer demand, we entered 2025 with clear momentum accelerating toward deployment and cementing our global as a leader in the advanced nuclear space.
Speaker Change: We have submitted our licensed operator topical report a key step in enabling our fleet based licensing approach. This approach lowers costs accelerates deployment and enhances operational efficiency.
Speaker Change: Beyond licensing, we've begun drilling testing and site characterization efforts that I know critical steps toward construction backed by a D. We site use permit the project remains on track for deployment in late 2027th to early 2028.
Jake Weight: Over the years, we've made significant progress in refining our powerhouse platform. We initially developed both 15 megawatts 50 megawatts designs, but a consolidated our approach around a 50 megawatt architecture.
Jake Weight: This allowed us to scale power output efficiently by simply adjusting things like fuel load and heat exchangers with this approach we can flexibly deliver between 15 megawatts and 75 megawatts from the same design platform adapting to different customer needs, while maintaining a streamlined supply chain and regulatory approach the.
Speaker Change: Our business model and licensing strategy provided more streamlined regulatory pathway compared to conventional nuclear purchase rather than pursuing separate construction and operating licenses or obtaining a design certification or D. C, which is not a license or permit to them later license out to customers, who then have to obtain the actual commercial permits and licenses we take it.
Jake Weight: The decision to scale up to 75 megawatts is driven by demand characteristics from large energy users, particularly data centers. This power range aligns well with the infrastructure of these customers, including at the data hall level and it reduces the number of reactors needed to support gigawatt scale projects.
Speaker Change: Correct path by securing a combined license or C O L.
Speaker Change: The single step approval allows us to build and operate without additional regulatory hurdles. Unlike the D. C process, which requires multiple and separate NRC reviews and unlike the part 50 approach, which requires separate NRC reviews and approvals for construction and operation. The C. O. L includes all key NRC specific reviews upfront. This integrated approach eliminates duplicative reviews and.
Jake Weight: We anticipate the majority of our plants will operate in the 60 to 75 megawatt range.
Jake Weight: Importantly, this update does not introduce new technical regulatory design risk, we're leveraging the same core technology optimizing it to deliver more power, while maintaining the benefit of a compact repeatable system.
Speaker Change: Accelerating deployment.
Speaker Change: Ultimately only after completing these regulatory steps can accompany began construction operated plant and generate power and revenue. It goes approach ensures that we reach those milestones faster and with greater certainty.
Jake Weight: By focusing on design flexibility scalability and cost efficiency will continue to provide innovative and capital efficient nuclear power solutions to meet the evolving needs of our customers.
Speaker Change: As I just alluded to what sets <unk> apart is our direct to C. O L approach, we secure combined license.
<unk> continues to make steady progress on our first commercial Aurora powerhouse at the Idaho National Laboratory or <unk>, we're actively engaging with the U S. Nuclear regulatory commission through a pre application readiness assessment for our Aurora powerhouse combined license application.
Speaker Change: In one streamlined process, whereas others in the industry pursued design certification or construction permits first requiring separate construction and operating approvals. Later, we believe this makes our approach faster more efficient and more aligned with the appointment.
Jake Weight: Idaho National Laboratory. This process enables NRC staff's review and familiarize themselves with OCA licensing materials out of the formal application submission streamlining regulatory review and positioning us for an efficient approval process.
Speaker Change: Because we build own and operate our powerhouses rather than selling designs of licenses streamlining regulatory approval under a single process makes strategic sense, securing our first T. O. L will also serve as a reference of license.
Jake Weight: We have submitted our licensed operator topical report a key step in enabling our fleet based licensing approach. This approach lowers costs accelerates deployment and enhances operational efficiency.
Speaker Change: <unk> C O L <unk>.
Speaker Change: <unk> future applications.
Speaker Change: S C O L to focus only on site specific differences greatly reducing approval timelines.
Jake Weight: Beyond licensing, we've begun drilling testing and site characterization efforts that I know critical steps toward construction backed by a deal we site use permit the project remains on track for deployment in late 2027 to early 2028.
Speaker Change: By minimizing those differences, we can gain faster regulatory approvals for each additional plant, enabling rapid scaling this.
Speaker Change: Approach not only simplifies licensing, but strengthens our ability to bring advanced nuclear power to market faster and more efficiently than traditional models.
Jake Weight: At <unk>, our business model and licensing strategy provide a more streamlined regulatory pathway compared to conventional nuclear purchase rather than pursuing separate construction and operating licenses or obtaining a design certification or D. C, which is not a license or permit to then later license out to customers, who then have to obtain the actual commercial permits Andrew licenses, we take a direct path.
Speaker Change: Our passive I now paves the way for future sites through subsequent combined licenses, reducing review timelines under the advance act and accelerating deployment at scale.
Speaker Change: Locals licensing strategy is not just about getting an approval, it's about getting to multiple powerhouses two deployment operation and revenue generation faster than conventional approaches.
Jake Weight: By securing a combined license or C O L.
The single step approval allows us to build and operate without additional regulatory hurdles.
Speaker Change: Oh glad we've built deep expertise in working with both the NRC and making significant regulatory progress as we move toward deploying our first commercial Aurora powerhouse, we completed key free application work with the NRC, including safety analysis operational programs and environments. Deciding. Additionally, we submitted fleet based licensed operators in staffing methodology topical reports.
Jake Weight: Unlike the D C process, which requires multiple and separate NRC reviews, and unlike the part 50 approach, which require separate NRC reviews and approvals for construction and operation. The C. O. L includes all key NRC specific reviews upfront. This integrated approach eliminates duplicative reviews and accelerates deployment.
Jake Weight: Ultimately only after completing these regulatory steps can accompany began construction operated plant and generate power revenue. It goes approach ensures that we reach those milestones faster and with greater certainty.
Speaker Change: Milestones that enable a standardized fleet wide staffing model, unlike traditional nuclear plants, which require site specific operator licensing our approach improves efficiency reduces costs and accelerates deployment.
Jake Weight: As I just alluded to what sets <unk> apart is our direct to C. O L approach, we secure combined license.
Speaker Change: Outside of our energy progress we are working closely with the <unk> since our first commercial powerhouse will be deployed at the Idaho National Lab.
Jake Weight: In one streamlined process, whereas others in the industry pursued design certification or construction permits first requiring separate construction and operating approvals. Later, we believe this makes our product faster more efficient and more aligned with the appointment.
Speaker Change: We finalized the memorandum of agreement with Doa granting equal access to begin critical site investigations and major step that allows us to conduct a central ground work to prepare for construction with this approval, we have begun site characterization activities, including drilling to study soil and rock conditions.
Jake Weight: Because we build own and operate our powerhouses rather than selling designs of licenses streamlining regulatory approval under a single process makes strategic sense, securing our first D. O L will also serve as a reference license.
Looking ahead, we are advancing the quality assurance program description for design and construction and operations, which is currently in progress. These milestones reinforces our strong regulatory momentum and clear path of deployment <unk>.
Jake Weight: Our C O L <unk>.
Jake Weight: Allowing future applications.
Jake Weight: S C O L to focus only on site specific differences greatly reducing approval timelines.
Speaker Change: That moves us closer to our goal of delivering advanced nuclear power through streamlined efficient regulatory approach.
Jake Weight: By minimizing those differences, we can gain faster regulatory approvals for each additional plants, enabling rapid scaling this approach not only simplifies licensing, but strengthens our ability to bring advanced nuclear power to market faster and more efficiently than traditional models.
Speaker Change: Additionally, the NRC is actively advancing the implementation of the advance act, which is modernizing the regulatory landscape for advanced nuclear a key component of this effort is a significant reduction in licensing fees, making regulatory processes more accessible and cost effective for advanced reactor developers.
Jake Weight: Our paths with INO paves the way for future sites through subsequent combined licenses, reducing review timelines under the advance act and accelerating deployment at scale.
Speaker Change: She has proposed cutting the hourly rate by nearly 55% for advanced reactor applicants. This changed set to take effect on October one 2025 directly lowers the financial burden of licensing.
Jake Weight: <unk> licensing strategy is not just about getting an approval, it's about getting to multiple powerhouses, two deployment operation and revenue generation faster than conventional approaches.
Speaker Change: Securing fuel is a critical priority for Oklahoma and we continued to make strong progress. We have successfully secured fuel for our first correlated I know through a competitive selection process and are expanding access for future deployments, our Mou with interest establishes a long term halo supply ensuring a scalable domestic source. It is important to highlight centrist is already producing haley today and continues to scale their production.
Speaker Change: At Aqua, we build deep expertise in working with both the NRC N D O, making significant regulatory progress as we move toward deploying our first commercial Aurora powerhouse, we completed key pre application work with the NRC, including safety analysis operational programs and environmental fighting. Additionally, we submitted fleet based licensed operators in staffing methodology topical reports import.
Speaker Change: The unsecured and feel we are also collaborating with Lionbridge who's developing next generation light water reactor fuels, we are exploring opportunities where light bridge can manufacturer their fuel at our fuel fabrication facility, given where both fabricating metallic fuel forms. Furthermore, we're working together on our recycling activities and evaluating the benefits of recycling used library fuel into our reactors.
Jake Weight: Milestones that enable a standardized fleet wide staffing model only.
Jake Weight: Traditional nuclear plants, which require site specific operator licensing our approach improves efficiency reduces costs and accelerates deployment.
Jake Weight: Alongside our NRC progress we are working closely with the D reasons, our first commercial powerhouse will be deployed at the Idaho National Lab.
Craig: With that I'll turn it over to Craig for customer development atomic alchemy and financial updates.
Jake Weight: We finalized the memorandum of agreement with Dewey granting equal access to begin critical site investigations and major step that allows us to conduct a central ground work to prepare for construction with this approval, we have begun site characterization activities, including drilling to 30 soil and rock conditions.
Craig: Thank you Jake.
Craig: It was powerhouses are purpose built to meet the growing energy needs of numerous customer segments, including AI data centers.
Craig: As Jason has already highlighted our 50 megawatt design now offers the flexibility to deliver up to 75 megawatts of power demonstrating our modular power offering could scale with customer demand and enabling <unk> to meet higher customer capacity with fewer deployments.
Jake Weight: Looking ahead, we are advancing the quality assurance program description for design construction and operations, which is currently in progress. These milestones reinforces the strong regulatory momentum and clear path to deployment each step moves us closer to our goal of delivering advanced nuclear power through streamlined efficient regulatory approach.
Craig: We expect uncle powerhouses to have construction timeline.
Craig: Less than 18 months, providing a very competitive time to market option for nuclear reactors and our cost oriented design and engineering provides customers with competitive pricing.
Jake Weight: Additionally, the NRC is actively advancing the implementation of the advance act, which is modernizing the regulatory landscape for advanced nuclear the key component of this effort is a significant reduction in licensing fees, making regulatory processes more accessible and cost effective for advanced reactor developers.
Speaker Change: Oh flow is capable of providing data centers with high reliability is the development of redundant powerhouse fulfillment.
Jake Weight: The honesty as proposed cutting the hourly rate by nearly 55% for advanced reactor applicants. This changed set to take effect on October one 2025 directly lowers the financial burden of licensing.
Speaker Change: And can deploy multiple powerhouse facilities to a single site that matches the phased deployment approach of data center campuses.
Speaker Change: Finally, <unk> small land footprint enables the company to pursue a co location model that provides customers with greater site flexibility and competing alternatives.
Speaker Change: Securing fuel is a critical priority for Oklahoma and we continue to make strong progress. We have successfully secured fuel for our first core loaded iron out through a competitive selection process and are expanding access for future deployments, our Mou with interest establishes a long term halo supply ensuring a scalable domestic source. It is important to highlight centrist is already producing halo today and continues to scale there.
Speaker Change: Moving to our next slide I would like to highlight two product features that are really resonating with datacenter customers based deployment Andrew.
Speaker Change: And reliability.
Speaker Change: <unk> be unsecured and fuel we are also collaborating flybridge who's developing next generation light water reactor fuels. We are exploring opportunities were light bridge could manufacture their fuel at our fuel fabrication facility, given where both fabricating metallic fuel forms. Furthermore, we're working together on our recycling activities and evaluating the benefits of recycling used <unk> fuel into our reactors.
Speaker Change: First product feature that our large customers like about Oakland powerhouse approach is the ability to build and deploy multiple small powerhouses in parallel rather than relying on a single large scale player with long lead times.
Speaker Change: This faith and modular expansion capability allows us to better align with specific customer timelines and capacity requirements.
Speaker Change: With that I'll turn it over to Craig for customer development atomic outcome and financial updates.
Speaker Change: Our data center customers, absolutely love the faith scaling capabilities of multiple reactor projects.
Craig: Thank you Jay Portwood powerhouses are purpose built to meet the growing energy needs of numerous customer segments, including AI data centers.
Speaker Change: Moving to the next slide.
Speaker Change: We'll talk about the second product feature that resonates with our datacenter customers, which is our ability to build a redundant powerhouses to achieve greater than 99% reliability.
Craig: As Jason has already highlighted our 50 megawatt design now offers the flexibility to deliver up to 75 megawatts of power demonstrating our modular power offering can scale with customer demand and enabling <unk> to meet higher customer capacity with fewer deployments.
Speaker Change: Reliability is critical for AI, driven data centers, which operate 24, seven and require constant uninterrupted power.
Speaker Change: Even brief outages can result in significant data loss service disruption and financial consequences.
Craig: We expect uncle powerhouses to have construction timelines of less than 18 months, providing a very competitive time to market option for nuclear reactors and our cost oriented design and engineering provides customers with competitive pricing.
Speaker Change: Unlike large scale reactors that can experience complete shutdowns for maintenance or modular powerhouses are designed so that routine our EBIT unexpected maintenance on one unit does not impact overall system performance. When there are more than one facility built onsite.
Craig: Oh closed capable of providing data centers with high reliability through the development of redundant powerhouse the films and can deploy multiple powerhouse facilities to a single site that matches the phased deployment approach of data center campuses.
Speaker Change: It's built in redundancy can enable behind the meter operations as well as reducing the size of the customers interconnect with the grid.
Craig: Finally, Auckland small land footprint enables the company to pursue co location model that provides customers with greater site flexibility than competing alternatives.
Speaker Change: I would now like to talk about our relationship with switch.
Speaker Change: Our product market fit with the data center industry continues to be validated through major customer announcements.
Craig: Moving to our next slide I would like to highlight two product features that are really resonating with data center customers based deployment.
Speaker Change: In December 2020 for Oklahoma out its secured one of the largest corporate power agreements in history.
Speaker Change: 12 gigawatt Master power agreement with switch that can be deployed through 2044.
Craig: And reliability the.
Craig: The first product feature that our large customers like about Oakland powerhouse approach is the ability to build and deploy multiple small powerhouses in parallel rather than relying on a single large scale plant with long lead times.
Speaker Change: <unk> this is equivalent to 1% of the U S grid capacity.
Speaker Change: Which is a leader in designing building and operating cutting edge modular and scalable data Center campus.
Craig: Faith and modular expansion capability allows us to better align with specific customer time lines and capacity requirements.
Speaker Change: There are facilities support the most demanding AI cloud and enterprise clients require reliable and sustainable power solutions.
Craig: Our data center customers, absolutely love, the Feight scaling capabilities of multiple reactor projects.
Speaker Change: Which has been a leader in clean power procurement and believe nuclear is critical to the future of AI data Center development and operations.
Craig: Moving to the next slide.
Craig: We'll talk about the second product feature that resonates with our data center customers, which is our ability to build and redundant powerhouses to achieve greater than 99% reliability.
Speaker Change: This agreement is an example of putting a vascular partnership agreement in place and is the result of extensive collaboration to understand switches needs and tailor our solution to ensure long term energy reliability.
Craig: Reliability is critical for AI, driven data centers, which operate 24, seven and require constant uninterrupted power.
Speaker Change: It underscores <unk> role in powering next generation data infrastructure, while establishing a significant long term revenue stream.
Craig: Even brief outages can result in significant data loss service disruptions and financial consequences.
Craig: Unlike large scale reactors that can experience complete shutdowns for maintenance or modular powerhouses are designed so that routine our EBIT unexpected maintenance on one unit does not impact overall system performance. When there are more than one facility built onsite.
Speaker Change: Beyond just power delivery. This partnership lays the foundation for broader collaboration aligning uploading vessel strategy government and public affairs efforts and supply chain optimization efforts to support large scale deployment with a strategic customer.
Speaker Change: We often get asked why alcohol hasn't filed our purchase agreements or ppas.
Craig: Built in redundancy can enable behind the meter operations as well as reducing the size of the customers interconnect with the grid.
Speaker Change: Answer is that <unk> taken a measured approach to reduce risk to the company and get the most attractive terms for the company and our investors.
Speaker Change: I would now like to talk about our relationship with switch.
Speaker Change: Our product market fit with the data center industry continues to be validated through major customer announcements.
Speaker Change: We are looking to implement a comprehensive risk mitigated strategy customer acquisition and project execution.
Speaker Change: In December 2024, <unk> note, it's secured one of the largest corporate power agreements in history.
Speaker Change: On the previous slide I talked about the master power agreement or NPA that we have in place with switch.
Speaker Change: 12 gigawatt Master power agreement the switch that can be deployed through 2044.
Speaker Change: Today, we are signing npa's with customers that establishes a framework for the overall partnership.
Speaker Change: For context, this is equivalent to 1% of the U S grid capacity.
Speaker Change: Once the Mastercard agreement is established we use it as a platform for multiple partnership elements, which include power sales corporate and asset investment supply chain optimization and public relation and permitting.
Speaker Change: Which is a leader in designing building and operating cutting edge modular and scalable data Center campus.
Speaker Change: There are facilities support the most demanding AI cloud and enterprise clients require reliable and sustainable power solutions.
Speaker Change: The Mastercard agreement also establishes the starting point for PPA negotiation.
Speaker Change: NPA start to define potential target sites our region.
Speaker Change: Which has been a leader in clean power procurement and believe nuclear is critical to the future of AI data Center development and operations.
Speaker Change: Total and face power delivery timing of capacity additions and a pricing range.
Speaker Change: This agreement is an example of putting a master partnership agreement in place and is the result of extensive collaboration to understand switches needs and tailor our solution ensures long term energy reliability.
Speaker Change: With this framework established alcohol can begin site feasibility analysis with customers and start specific PPA negotiations.
Speaker Change: In addition, this structure lives and iterate as the market evolves and is not limited to customers.
Speaker Change: It underscores alcoa's role in powering next generation data infrastructure, while establishing a significant long term revenue stream.
Speaker Change: We are applying this structure with parties across our value chain from fuel supply to component manufacturing create.
Speaker Change: The August power delivery. This partnership lays the foundation for broader collaboration.
Speaker Change: Creating a repeatable and scalable model for asset deployment that should enable <unk> to move quickly while maintaining capital efficiency.
<unk> uploads and vessel strategy government and public affairs efforts and supply chain optimization efforts to support large scale deployment with a strategic customer.
Speaker Change: As a result of our efforts over the last 18 months <unk>.
Speaker Change: <unk> customer pipeline has expanded significantly driven primarily by growing data center demand.
Speaker Change: We often get asked why alcohol hasnt signed power purchase agreements or Ppas.
Speaker Change: The answer is that <unk> taken a measured approach to reduce risk to the company and get the most attractive terms for the company and our investors.
Speaker Change: We have signed agreements across key customer segments with demand shifting towards our 75 megawatt powerhouse offer.
Speaker Change: Large scale AI power needs.
Speaker Change: We are looking to implement a comprehensive risk mitigated strategy customer acquisition and project execution.
Speaker Change: Our pipeline has grown from 700 megawatts at the announcement of our business combination with <unk> to over 14, Gigawatts today supported by major customers like Equinix Prometheus.
Speaker Change: On the previous slide I talked about the master power agreement or M. P. Eight that we have in place with switch.
Speaker Change: And Diamondback energy.
Speaker Change: Today, we are signing npa's with customers that establishes a framework for the overall partnership.
Speaker Change: As demand accelerates, we continue to advance discussions with additional customers to further expand our pipeline.
Speaker Change: Once the Mastercard agreement is established we use it as a platform for multiple partnership elements, which include power sales corporate and asset investment.
Speaker Change: I'd now like to talk about our partnership with Arco.
Speaker Change: <unk> our power are partnering to bridge the gap between today's power needs and the transition to advanced nuclear.
Speaker Change: Fly chain optimization, and public relations and permitting.
Speaker Change: The Mastercard agreement also establishes the starting point for PPA negotiations.
Speaker Change: This phased model insurer datacenters.
Speaker Change: Reliable power now while seamlessly moving towards a clean long term energy solution.
Speaker Change: NPA start to define potential target sites are regions total and face power delivery timing of capacity additions.
Speaker Change: The approach has three phases.
Speaker Change: Phase one immediate power deployment.
Speaker Change: Pricing range.
Speaker Change: With this framework established alcohol can begin site feasibility analysis with customers and start specific PPA negotiations.
Speaker Change: Our powers natural gas generators should be in a position to be deployed within 24 months to meet urgent demand opportunities.
Speaker Change: In addition, this structure lives and iterate as the market evolves and is not limited to customers.
Speaker Change: Phase II transition to advanced nuclear.
Speaker Change: I'll close our raw powerhouses come online they will integrate into these sites delivering new clean Baseload power.
Speaker Change: We are applying this structure with parties across our value chain from fuel supply to component manufacturing create.
Speaker Change: Phase III long term energy resilience.
Speaker Change: Creating a repeatable and scalable model for asset deployment, which should enable <unk> to move quickly while maintaining capital efficiency.
Speaker Change: Overtime Award powerhouses will become the primary energy source with our power generators shifting to an auxiliary power delivery role.
Speaker Change: As a result of our efforts over the last 18 months <unk> customer pipeline has expanded significantly driven primarily by growing data center demand.
Speaker Change: This enhances grid stability, allowing our power to act as a good grid citizen with Oklahoma.
Speaker Change: <unk> surplus power when needed.
Speaker Change: This approach make urgent power needs today, while enabling a clean scalable energy future.
We have signed agreements across key customer segments with demand shifting towards our 75 megawatt powerhouse offer.
Speaker Change: We have successfully closed the $25 million acquisition of atomic alchemy.
Speaker Change: Large scale AI powered needs are.
Speaker Change: Our pipeline has grown from 700 megawatts at the announcement of our business combination with <unk> to over 14 Gigawatts today.
Speaker Change: This transaction marks <unk> strategic expansion into the high growth radio isotope market.
Speaker Change: Supported by major customers like Equinix from EPS, which and Diamondback energy.
Speaker Change: We view this as an extremely attractive bolt on acquisition that enhances <unk> nuclear technology platform and diversify our customer base to include critical industries, such as space defense industrial applications medical diagnostics and semi conductor manufacturer.
Speaker Change: As demand accelerates, we continue to advance discussions with additional customers to further expand our pipeline.
Speaker Change: I would now like to talk about our partnership with Arco.
Speaker Change: Oakwood airpower are partnering to bridge the gap between today's power needs and the transition to advanced nuclear.
Speaker Change: This acquisition is not expected to have material near term operating cost increases for Oklahoma and doesn't have the potential to accelerate revenues to the company through the sale of radioisotopes.
Speaker Change: This phased model insurer datacenters secure reliable power now while seamlessly moving towards a clean long term energy solution.
Speaker Change: This transaction was primarily funded via stock and represented less than 1% of dilution to <unk> shareholders.
Speaker Change: The approach has three phases.
Speaker Change: Phase one immediate power deployment.
Speaker Change: Additionally shares issued to the atomic alchemy founders are subject to multiyear requesting to drive strong long term alignment.
Speaker Change: Power's natural gas generators should be in a position to be deployed within 24 months to meet urgent demand opportunities.
The next slide focuses on some acquisition highlights.
Speaker Change: Phase II transition to advanced nuclear.
Speaker Change: The stomach alchemy will enhance <unk> technology portfolio.
Oh close of raw powerhouses come online they will integrate into these sites delivering new clean Baseload power.
Speaker Change: Third as a standalone radioisotope business with significant market potential.
Speaker Change: Phase III long term energy resilience.
Speaker Change: Acquisition highlights include the following.
Speaker Change: Overtime Award powerhouses will become the primary energy source with our power generators shifting to an auxiliary power delivery role.
Massive market demand with limited supply.
Speaker Change: The radio isotope market is projected to exceed $55 billion by 2020.
Speaker Change: This enhances grid stability, allowing our power to act as a good grid citizen with Oakland supply surplus power when needed.
Speaker Change: With application spanning medical imaging cancer therapies based on defense and next generation semiconductor manufacturing.
Speaker Change: This approach makes urgent power needs today, while enabling a clean scalable energy future.
Speaker Change: Meanwhile, Asia facilities are struggling to keep up with demand, creating a critical supply gap.
Speaker Change: We have successfully closed the $25 million acquisition of atomic alchemy.
Speaker Change: Benefits to outflows energy and fuel business.
Speaker Change: <unk> high value radioisotopes from recycling co products enhances the economics of fuel recycling.
Speaker Change: This transaction marks Oh close strategic expansion into the high growth radio isotope market.
Speaker Change: Third growth opportunities, we are already exploring joint ventures with customers in Radiopharmaceuticals and advanced silicon doping for semiconductor manufacturing positioning <unk> for long term success in high growth industries.
Speaker Change: We view this as an extremely attractive bolt on acquisition that enhances Oakland nuclear technology platform and diversify our customer base to include critical industries, such as space defense industrial applications medical diagnostics and semi conductor manufacturing.
Speaker Change: Fourth and finally revenue and milestone acceleration.
Speaker Change: Radio isotopes are among the most valuable materials on Earth.
Speaker Change: This acquisition is not expected to have material near term operating cost increases for Oklahoma and does have the potential to accelerate revenues to the company through the sale of radio isotopes.
Speaker Change: Hey, Actinium 225 for example, which sells for $400 per nanogram aren't establishing $400 billion program.
Speaker Change: With our recent acquisition of atomic Alchemy, we are positioning <unk> to capitalize on this high margin market.
Speaker Change: This transaction was primarily funded via stock and represented less than 1% of dilution to <unk> shareholders.
Speaker Change: Our radio isotope demonstration project is already underway and we could begin generating revenue as early as the first quarter of 2026, unlocking significant near term value for our business.
Speaker Change: Additionally shares issued to the atomic alchemy founders are subject to multiyear re vesting to drive strong long term alignment.
Speaker Change: The next slide focuses on some acquisition highlights.
Speaker Change: This acquisition is a true force multiplier accelerating our entry into the radio isotopes sector.
Speaker Change: Thomas Alchemy will enhance <unk> technology portfolio and serve as a standalone radioisotope business with significant market potential.
Speaker Change: We are excited about the opportunities ahead and confident in the value. This can create for our shareholders.
Speaker Change: Acquisition highlights include the following.
Speaker Change: I would now like to talk about recent board appointments.
Speaker Change: Massive market demand with limited supply.
Speaker Change: With Chris Wright confirmation as the new U S Secretary of energy alcohol needed to fill an open board seat.
Speaker Change: The radio isotope market is projected to exceed $55 billion by 2026.
Speaker Change: With applications spanning medical imaging cancer therapies based on defense and next generation semiconductor manufacturing.
Speaker Change: In doing so we took the opportunity to strengthen our board by adding not just one or two exceptional leaders, Daniel <unk> and Michael Thompson.
Speaker Change: Meanwhile, aging facilities are struggling to keep up with demand, creating a critical supply gap.
Speaker Change: Daniel <unk> brings decades of experience in nuclear energy and National security.
Speaker Change: Benefits to outflows energy and fuel business.
Speaker Change: Most recently he served as president and Chief Executive Officer of Citrus energy, leading the company to profitability and deploying the first U S based technology uranium enrichment facility since 1954.
Speaker Change: Putting high value radio isotopes from recycling co products enhances the economics of fuel recycled.
Speaker Change: Third growth opportunities, we are already exploring joint ventures with customers in Radiopharmaceuticals and advanced silicon doping for semiconductor manufacturing positioning <unk> for long term success to high growth industries.
Speaker Change: For that bandwidth Deputy Secretary of energy <unk> energy technology, and nuclear security and played a critical role in international nuclear negotiations and U S Energy security policy.
Speaker Change: Fourth and finally revenue and milestone acceleration.
Speaker Change: Michael Thompson add significant experience in capital markets and technology investments.
Speaker Change: Radio isotopes are among the most valuable materials on Earth.
Speaker Change: As managing partner at <unk> capital is work with some of the most innovative technology companies.
Speaker Change: Take actinium 225 for example, which sells for $400 per nanogram or an astonishing $400 billion program.
Honestly, he founded and led EHR capital, a New York based hedge fund and has served as an investor and board advisor across multiple high growth sectors.
Speaker Change: With our recent acquisition of atomic Alchemy, we are positioning <unk> to capitalize on this high margin market.
Speaker Change: With these additions Oakwood forward is well positioned to guide the company through its next phase of growth ensuring strong governance as we execute on our strategy to deliver advanced nuclear power.
Speaker Change: Our radio isotope demonstration project is already underway and we could begin generating revenue as early as the first quarter of 2026, unlocking significant near term value for our business.
Speaker Change: I will now provide a summary of our financials.
Speaker Change: This acquisition is a true force multiplier accelerating our entry into the radio isotopes active.
Speaker Change: <unk> full year operating loss was $52 8 billion.
Speaker Change: We are excited about the opportunities ahead and confident in the value. This can create for our shareholders.
Speaker Change: This included a one time fair market value of expense of $7 $8 million related to earn out shares payable to <unk> staff, who helped dusted option at the time of spec closings as well as $4 7 million of noncash stock based compensation expense.
Speaker Change: I would now like to talk about recent board appointments.
Speaker Change: With Chris Wright confirmation as the new U S Secretary of energy <unk> needed to fill an open board seat.
Speaker Change: When adjusting for these noncash amounts that were not included in our original 2020 for budget you get to $40 $3 million, which is at the low end of our forecasted range of $40 million to $50 million.
Speaker Change: In doing so we took the opportunity to strengthen our board by adding not just one but two exceptional leaders Daniel Parliament and Michael Thompson.
Speaker Change: Daniel <unk> and brings decades of experience in nuclear energy and National security.
Speaker Change: In preparing our year end consolidated financials <unk> made two changes related to the accounting presentation associated with our business combination with <unk> that occurred in the second quarter of 2024.
Speaker Change: Most recently he served as president and Chief Executive Officer of Citrus energy, leading the company to profitability and deploying the first U S based technology uranium enrichment facility since 1954.
Speaker Change: First management received additional guidance that led us to reduce the fair market value of our safe notes at deal closure by $2 $1 billion.
Speaker Change: For that Dan with Deputy Secretary of energy overseeing energy technology, and nuclear security and playing a critical role in international nuclear negotiations and U S Energy security policy.
Speaker Change: Proving our full year net loss to $73 $6 million.
Speaker Change: Second we were directed that the tabular presentation of the deemed dividend on our quarterly income statement for earn out and founder shares was not required but this was already covered in the accompanying footnotes.
Speaker Change: Michael Thompson adds significant experience in capital markets and technology investments as managing partner at <unk> capital is work with some of the most innovative technology companies.
Speaker Change: We elected to reflect this as a material weakness in section 90 other information in our 10-K for 2024 in the area of infrequent and complex accounting.
Speaker Change: Honestly, he founded and led the HR capital a New York based hedge fund and has served as an investor and board advisor across multiple high growth sectors.
Speaker Change: It should be noted that these changes come from our business combination transaction that closed in the second quarter and actual result, an improvement to our financial statements.
Speaker Change: With these additions Oakwood board is well positioned to guide the company through its next phase of growth ensuring strong governance as we execute on our strategy to deliver advanced nuclear power.
Speaker Change: By minimizing our net loss attributable to common stockholders from a loss of $563 million the loss of $73 $6 million.
Speaker Change: I will now provide a summary of our financials.
Speaker Change: We are working to address this material weakness and expect to have it remediated by Europe.
Speaker Change: <unk> full year operating loss was $52 8 billion.
Speaker Change: <unk> full year cash used in operating activities was $38 4 million.
Speaker Change: This included a one time fair market value of expense of $7 $8 million relate.
Speaker Change: This balance is derived from a net loss of $73 $6 million, partially offset by $40 4 million in noncash impacts.
Speaker Change: Related to earn out shares payable to Auckland staff, who held vested option at the time of spec closings as well as $4 7 million of noncash stock based compensation expense.
Speaker Change: Noncash impact included $27 9 million of fair market value charges associated with the previously converted segments as well as noncash stock based compensation charges of $12 5 billion.
Speaker Change: When adjusting for these noncash amounts that were not included in our original 2020 for budget you get to $43 million, which is at the low end of our forecasted range of $40 million to $50 million.
Speaker Change: Finally at the end of the year cash and marketable securities were $275 $3 million.
Speaker Change: In preparing our year end consolidated financials <unk> made two changes related to the accounting presentation associated with our business combination with <unk> that occurred in the second quarter of 2024.
Speaker Change: Primarily driven by the $276 million in proceeds net of fees received at the closing of our business combination.
Speaker Change: First management received additional guidance that led us to reduce the fair market value of our safe notes at deal closure by $2 1 million improving our full year net loss to $73 6 million.
Speaker Change: This cash balance generated approximately $7 7 million and interest income in 2024.
Speaker Change: Looking forward to 2025, we expect our cash used in operations to be in the range of 65 million to $80 million.
Speaker Change: Second we were directed that the tabular presentation of the deemed dividend on our quarterly income statement for earn out and founder shares was not required. If this was already covered in the accompanying footnotes.
Speaker Change: This year on year growth from 2024 is driven by increases in head count.
Speaker Change: Initiation of procurement activities in support of our first powerhouse at the Idaho National Labs.
Speaker Change: We elected to reflect this as a material weakness in section 90 other information in our 10-K for 2024 in the area of infrequent and complex accounting.
Speaker Change: License application fees progressed.
Speaker Change: Progressing activities in support of fuel recycling and a small increase resulting from our recently acquired atomic alchemy business.
Speaker Change: It should be noted that these changes come from our business combination transaction that closed in the second quarter and actual result, an improvement to our financial statements.
Speaker Change: To close we believe there are six factors that made <unk>, such a compelling investment proposition.
Speaker Change: First technology inside that are based on proven fast reactor technology that we look to deploy at scale to reduce complexity cost and time deliberately.
Speaker Change: Minimizing our net loss attributable to common stockholders from a loss of $563 million the loss of $73 $6 million.
We are working to address this material weakness and expect to have it remediated by Europe.
Speaker Change: Second an attractive business model that is customer oriented and enabled recurring revenue and profits.
Speaker Change: <unk> full year cash used in operating activities was $38 4 million.
Speaker Change: Third superior economics that can deliver power at competitive cost.
Speaker Change: This balance is derived from a net loss of $73 $6 million, partially offset by $40 4 million in noncash impacts.
Speaker Change: Fourth a diverse and growing customer base with interest across multiple market sectors.
Speaker Change: These noncash impact included $27 $9 million of fair market value charges associated with the privilege fleets inverted statements as well as noncash stock based compensation charges of $12 5 million.
Speaker Change: Fifth our streamline approach to regulatory approval underpinned by our combined license application process that leverages years of experience in our work with the NRC.
Speaker Change: And finally, our well capitalized balance sheet that positions us well for the implementation of our business strategy.
Speaker Change: Finally at the end of the year cash and marketable securities were $275 3 million.
Speaker Change: With that I would like to thank you for your time.
Speaker Change: Primarily driven by the $276 million in proceeds net of fees received at the closing of our business combination.
Speaker Change: Jake and I will now open up the call for questions.
Speaker Change: Thank you.
Speaker Change: This cash balance generated approximately $7 $7 million in interest income in 2024.
Speaker Change: At this time I would like to remind everyone in order to ask a question Press Star then the number one on your telephone keypad.
Speaker Change: Looking forward to 2025, we expect the cash used in operations to be in the range of 65 million to $80 million.
Speaker Change: He asks could you please limit your questions to one and one follow up.
Speaker Change: We will pause for just a moment ago, particularly in Europe.
Speaker Change: This year on year growth from 2024 is driven by increases in head count initiation of procurement activities in support of our first powerhouse at the Idaho National Labs.
Speaker Change: Okay.
Speaker Change: The first question comes from Brian singer from B Riley Your line is open.
Speaker Change: License application fees progressed.
Brian Singer: Hey, guys. Thanks for taking my questions.
Speaker Change: Progressing activities in support of fuel recycling and a small increase resulting from our recently acquired atomic alchemy business.
Speaker Change: First was the decision to go from 50 megawatts to 75, driven by customers you already have in your pipeline or potential customers, you're talking to today and do.
Speaker Change: To close we believe there are six factors that make <unk>, such a compelling investment proposition.
Speaker Change: Do you see obvious benefits for.
Speaker Change: First technology inside that are based on proven fast reactor technology that we look to deploy at scale to reduce complexity cost and time delivery.
Speaker Change: Your economics with the greater output.
Speaker Change: Yeah. Thanks Ryan.
Speaker Change: So a lot of it is built off of you know kind of what we're seeing in the market.
Speaker Change: Second an attractive business model that is customer oriented and enables recurring revenue and profits.
Speaker Change: <unk> come together from the customer interest that that where we see sort of the data center architectures.
Speaker Change: Third superior economics that can deliver power at competitive cost.
Speaker Change: Progressing there's a sweet spot that kind of leaves between 50, and 75 and probably more of a it really between 60 and 72, probably more specifically, but in that range, that's really well targeted at rsi like basically being at that size matches really we're really well, where we see kind of that range existing so it made sense given that we have some latent extra capacity.
Speaker Change: Fourth a diverse and growing customer base with interest across multiple market sectors.
Speaker Change: Fifth our streamline approach to regulatory approval underpinned by our combined license application process that leverages years of experience in our work with the NRC.
Speaker Change: And finally, a well capitalized balance sheet that positions us well for the implementation of our business strategy.
Speaker Change: <unk> just through the design process for margin to be able to go up that high and provide that flexibility and do that now rather than kind of you know sort of distributed like basically keep the system more let's say targeted at 50, and then limits the upside. So we just kind of unlock that in there and the focus on making sure. We can get up all that all the way to that number so very much a customer and four.
Speaker Change: With that I would like to thank you for your time.
Speaker Change: Jake and I will now open up the call for questions.
Speaker Change: Thank you.
Speaker Change: At this time I would like to remind everyone in order to ask a question Press Star then the number one on your telephone keypad.
Speaker Change: <unk> designed kind of I would say decision that makes sense.
Speaker Change: And just to be a little more specifics you might you know people talk about a gigawatt scale data centers and that's awesome and exciting to see how that's going to come together, but many of the actual buildings that make up our campus because it's really going to be campus. It makes up a gigawatt scale.
Speaker Change: We ask that you please limit your questions to one and one follow up we.
Speaker Change: We will pause for just a moment and pause the QE in Europe.
Speaker Change: The first question comes from Brian Chin from B Riley Your line is open.
Speaker Change: None of these kind of building the structures are smaller than that and that sort of sub unit or if you will in those actual like datacenter building by themselves.
Brian Chin: Hey, guys. Thanks for taking my questions.
Brian Chin: First was the decision to go from 50 megawatts to 75, driven by customers you already have in your pipeline or potential customers, you're talking to today and D.
Speaker Change: It was really this kind of data haul architecture, we referred to it is really living in that kind of 50 to 75 megawatt range, which is why we decided to go to that each different customers that have their own design their own approach. So it does kind of have some range on that but given kind of the lower relative in parts of the capex for us on the plant that's non fuel related it gives us a little more flex to accommodate that and then we just.
Brian Chin: Do you see obvious benefits for.
Brian Chin: Your economics with the greater output.
Speaker Change: Size of the core accordingly to make sure we match and live with what we need to do between sort of that 15 75 range, but generally speaking I think we're going to see some general convergence, but increasingly moves that number of exist pretty well between that 60 and sort of just basically 75 megawatt number.
Brian Chin: Yes, Thanks, Brian.
Brian Chin: So a lot of it is bill offered you know kind of what we're seeing in the market.
Brian Chin: Coming together from the customer interest that that where we see sort of the data center architectures.
Speaker Change: But it worked pretty been pretty favorably to tie that into what they need at their core IP as well as heating and cooling loads at the sizes.
Brian Chin: Dressing, there's a sweet spot that kind of lives between 50, and 75 and probably more of it really between 60 and 72, probably more specifically, but in that range thats really well targeted at rsi.
Craig: And Ryan it's Craig there will be some absolute.
Craig: Economic benefits as well because just on.
Brian Chin: Basically being at that size matches really we're really well where are we seeing kind of that range existing.
Craig: On the surface, if we have a customer was the 150 megawatts.
Craig: Power delivered it now move that from three powerhouses that 50 to two powerhouses attempting fine and so there'll be some economies of scale there.
Brian Chin: It made sense given that we had some latent extra capacity through the design process for margin to be able to go up that high and provide that flexibility and to do that now rather than kind of.
Craig: Got it I appreciate that detail.
Brian Chin: Sort of like basically keep the system more targeted.
Craig: I'll stick to the customer side.
Brian Chin: Targeted at 50, and then limits the upside so we just kind of unlock that in there and focus on making sure. We can get up all that all the way to that number so pretty much a customer informed designed kind of I would say decision if that makes sense.
Craig: Now that you have a pipeline of 14 gigawatts.
Craig: Other potential customers see that and think Oh close is pretty full I better seek out empower elsewhere or are your discussions progressing at the same pace. Following your announcement of the switch agreement.
Brian Chin: And just to be a little more specific you might you know people talk about a gigawatt scale data centers and that's awesome and it's exciting to see how thats going to come together, but many of the actual buildings that make up a campus because it's really going to be campus. It makes up a gigawatt scale.
Craig: Yeah, I mean generally speaking I think it is actually in some ways kind of accelerated some because now it's like Oh shoot.
Brian Chin: None of these kind of building these structures are smarter than that and that sort of sub unit or if you will in those actual like datacenter building by themselves.
Craig: We want to we don't want to Miss out on that if you don't want to lose out on that but our our kind of dynamic with customers and our engagement as Craig talked about is the internet based on what makes the most sense to engage folks when when and how and kind of bringing a little bit more to the table accordingly.
Brian Chin: As really this kind of data haul architecture to referred to it as really living in that kind of 50 to 75 megawatt range, which is why we decided to go to that each different customer set has their own design. Their approach. So it does kind of have some range on that but given kind of the lower relative to parts of the capex for us on the plant that's non fuel related it gives us a little more flex to accommodate that and then we decided that.
Craig: So at the end of the day I think there's a bit of a scarcity effect that is that it is existing Alan I imagine will probably increase and generally speaking that's going to be pretty positive to us, but you know.
Core accordingly to make sure we match and live with what we need to do between sort of that 15 75 range, but generally speaking I think we're going to see some general convergence that increasingly moves that number of exist pretty well between that 60 and sort of just basically 75 megawatt number.
Craig: And then accordingly, we'll kind of see how that unfolds as things progress in terms of what there might be an effect on some folks being like Oh, that's pretty much.
Craig: Okay, Okay, it might be pretty full up but I think what we see as more folks being like okay. We want to get in to try to figure how to work with you guys and also what can we do to help expand that bandwidth and capacity. So that you can do you can do more and I think that's a little bit of a more begets more here.
Brian Chin: But it worked pretty be pretty favorably to tie that into what they need at their core IP as well as heating and cooling load that the sizes.
And right, it's Craig there will be some absolute.
Craig: And that's really how we're trying to like structure, you know, how and who we work with.
Brian Chin: Economic benefits as well because just on.
Brian Chin: On the surface, if we have a customer was the 150 megawatts.
Brian Chin: Power delivered it now move that from three powerhouses at $50 to two powerhouses at 75, and so there'll be some economies of scale there.
Craig: The next question comes from Jeffrey Campbell from Seaport Research. Your line is open.
Craig: Yeah.
Craig: Good afternoon, and congratulations on a pretty strong year.
Brian Chin: Got it I appreciate that detail.
Speaker Change: I'll stick to the customer side.
Craig: Regarding the increase in range of the powerhouse for 50 years.
Brian Chin: Now that you have a pipeline of 14 gigawatts.
Brian Chin: Other potential customers see that and think Oh close is pretty full I better seek out empower elsewhere or are your discussions progressing at the same pace. Following your announcement of the switch agreement.
Speaker Change: Does this require any kind of change in your total license approach or.
Craig: Sorry to cover.
Speaker Change: What kind of effect.
Speaker Change: Yeah.
Speaker Change: Really try to keep it so that it's a pretty minimal effect in general like everything.
Yes, I mean generally speaking I think it is actually in some ways kind of accelerated for some because now if I go shoot like.
Speaker Change: Everything we're doing to support kind of go into the 50, yes basically is accommodating to this there are of course, a few things that we need to be mindful of.
Brian Chin: We want to we don't want to Miss out on that if you don't want to lose out on that but our kind of dynamic with customers and our engagement as Greg talked about as the iterative based on what makes the most sense to engage folks win.
Speaker Change: But in general like all the infrastructure and everything we have in all the design and analysis work.
Speaker Change: All of those kinds of things accommodated that's pretty well and if you think about what this has really been doing is giving us a platform that allows us to go between 50 and 75, but its pretty unconventional nuclear because people again typically think of a very fixed heavy capex the plant and dominating the cost profile. So you want to maximize the power output well because of the benefits of what we've presented before do you.
When and how and kind of bringing a little bit more to the table accordingly.
Brian Chin: So at the end of the day I think there is a bit of a scarcity effect that that has existed now and I imagine, we'll probably increase and generally speaking that's going to be pretty positive to us but.
Speaker Change: And kind of our design approach you actually have a little more flex on that side and you become more little bit more sensitive and driven by the fuel side relatively speaking.
Brian Chin: Then accordingly, we'll kind of see how that unfolds as things progress in terms of what there might be an effect on some folks being like Oh, that's pretty good.
Brian Chin: Okay, Okay, it might be pretty full up but I think what we see as more folks being like okay. We want to get and try to figure how to work with you guys and also what can we do to help expand that bandwidth and capacity. So there is you can you can do more and I think thats, a little bit of a more begets more here.
Speaker Change: And that could use some more room, then to say, okay. If I need to be at 50, Here's an umbrella yet if any would be at 75 years, the number will be up because of less fuel in moorefield, respectively.
Speaker Change: That gives you that flexibility then to match customer demand and some of the economic side. That's great set of course, there is some benefits on the 75, just because you kind of get a scaling benefit on fuel efficiency getting a little bit bigger, but at the end of the day, all decided to kind of keep us inside of a nice realm, where the work we're doing on the licensing side carries over that's also a reason why staying at the site.
Brian Chin: And that's really how we're trying to like structure, how and who we work with.
Speaker Change: The next question comes from Jeffrey Campbell from Seaport Research. Your line is open.
Speaker Change: Range is important for us.
Brian Chin: Yes.
Speaker Change: If you didn't get much bigger here you can do start to dip into a world where some of the loss.
Jeffrey Campbell: Good afternoon and congratulations.
Brian Chin: Pretty strong year.
Speaker Change: Jake regarding rate increase range are the powerhouse for 15 years.
Speaker Change: Youll start needing to do more things that kind of go outside of the envelope of what we've been doing on the regulatory front to date does a very intentional to be mindful about those considerations and works out pretty well, but you know we're in this kind of sweet spot in the market right now.
Speaker Change: Does this require any kind of.
Speaker Change: Change in your total license approach.
Speaker Change: Sorry to cover what.
Speaker Change: One of the factors.
Speaker Change: And Jeff we countered to the slides pretty quickly, but if you go back to slide 10. It does talk about no new technical or desirous to achieve a larger power output, which is pretty important.
Speaker Change: Yeah.
Speaker Change: Really try to keep it so that it's a pretty minimal effect in general like.
Speaker Change: Okay great.
Speaker Change: Everything we're doing to support kind of go into the 50, yes basically is accommodating to this there are of course, a few things we need to be mindful of.
Speaker Change: I'll stick with one more a regulatory question.
Speaker Change: Can you describe.
Speaker Change: Broadly what their readiness assessment.
Speaker Change: But in general like all the infrastructure and everything we have in all the design and analysis work all those kinds of things accommodated that's pretty well and if you think about what this has really been doing is giving us a platform that allows us to go between 50 and 75, but its pretty unconventional and nuclear because people again typically think of a very fixed heavy capex the plant and dominating the cost profile.
Speaker Change: And sales and does it de risk your actual cola applications.
Speaker Change: Yeah.
Speaker Change: Yeah, I think it is.
Speaker Change: Great question, So how we're approaching our application in this goal is is it's kind of a structured submission of our first phase in a second phase where youre, putting in sort of this initial work on fighting environmental on some other dynamics that were being evaluated there.
Speaker Change: So you want to maximize the power output well because of the benefits of preventing before do you and kind of our design approach you actually have little more flex on that side and you become more little bit more sensitive and driven by the fuel side relatively speaking.
Speaker Change: But ahead of that we're doing our readiness assessment, which is an optional kind of thing you can do with the NRC to basically do a pre review.
Speaker Change: And that could use some more room, then to say, okay. If I need to be at 50, Here's the number I'll be out of any of your 75 years, the number will be up because of less fuel in moorefield, respectively.
Speaker Change: Something we've intended to do if it's kind of a key takeaway unless and learn from them from a prior prior regulatory experience and leading up to this right because it's continuing on dynamic.
Speaker Change: That gives you that flexibility to match customer demand and some of the economic side as Greg said of course, there is some benefits on the 75, just because you kind of get a scaling benefit on fuel efficiency getting a little bit bigger, but at the end of the day all of these sizes kind of keep us inside of a nice round wear to work we're doing on the licensing side carries over that's also a reason why staying at this size.
Speaker Change: Basically make sure we're all sort of working on the same page at pre converted as us they pre converted to the NRC to kind of have a good efficient review process Accordingly, and that's been a pretty clear point of benefit based on some recent regulatory actions by the NRC that readiness assessment is supportive of that so yeah. It's a it's a way to de risk.
Speaker Change: Range is important for us.
Speaker Change: If you do get much bigger here you start to dip into a world where some of the a lot like Youll start meeting to do more things that kind of go outside of the envelope of what we've been doing on the regulatory front to date, there's a very intentional to be mindful about those considerations.
Speaker Change: Both the content and the timeline of the review and position everyone for not just success, but more efficiency as a result.
Speaker Change: That's how we're approaching this to lead into that review.
Speaker Change: So it's pretty exciting stuff for us to come here next week.
Speaker Change: Works out pretty well, but we're in this kind of a sweet spot in the market right now.
Speaker Change: And Jeff we countered the slides pretty quickly, but if you go back to slide 10. It does talk about no new technical or desirous to achieve the larger power output, which is pretty important.
Speaker Change: The next question comes from Vikram <unk> from Citi Your line.
Speaker Change: Okay.
Speaker Change: Hi, Thanks for taking the question is Pat on for Big.
Speaker Change: Okay great.
Speaker Change: I'll stick with one more regulatory question.
Speaker Change: Just wanted to follow up on that is there any initial feedback you could share on your discussion with the NRC as you work towards that pre application.
Speaker Change: Can you describe.
Speaker Change: Broadly what their readiness assessment.
Speaker Change: And sales.
Speaker Change: And then just in terms of <unk>.
Speaker Change: Does it de risk your actual cola applications.
Speaker Change: How many meetings you've been having what sort of discussions you're having.
Speaker Change: Jim.
Speaker Change: Yeah, I think it's.
Speaker Change: And then in terms of timing I think the letter mentioned that Youre seeing.
Speaker Change: Great question. So how we're approaching our application on this go is kind of a structured submission of a first phase in a second phase where you are putting in sort of this initial work on fighting environmental and some other dynamics that were being evaluated there.
Speaker Change: Expecting the Cobra to be submitted this year.
Speaker Change: Is the plan to do that one.
Speaker Change: Certain aspects of band side.
Speaker Change: <unk> become effective so should we be expecting that sometime in the fourth quarter.
Speaker Change: But ahead of that we're doing the readiness assessment, which is an optional kind of thing you can do with the NRC to basically do a pre review.
Speaker Change: Okay.
Speaker Change: Yeah, so yeah.
Speaker Change: Engaging with the NRC is pretty continual I don't you know I don't actually have the latest number in terms of the total tally of meetings, we've had but it's.
Speaker Change: Something we've intended to do is kind of a key takeaway and lesson learned from our prior prior regulatory experience.
Speaker Change: It's like over a bit.
Speaker Change: And leading up to this right because it's continue on dynamic.
Speaker Change: I mean, you know meetings in May a report commissioned over there there's over 600.
Speaker Change: Basically make sure we're all sort of working on the same page at pre converges us the pre converted of the NRC to kind of a good efficient review process, Accordingly, and thats been a pretty clear point of benefit based on some recent regulatory actions by the NRC that the readiness assessment and supportive of that.
Speaker Change: Since we started working with them back in 2016.
Speaker Change: <unk> almost changing.
Speaker Change: Well it is pretty much by the week.
Speaker Change: So, but yes, I mean basically.
Speaker Change: What all this work for before is right, where we're developing application the content. What that is is really saying, okay. Here's how we're going to meet the regulatory requirements, but I don't mind in the kind of better regulation and then making sure that that is the answer.
Speaker Change: So, yes, it's a way to de risk.
Speaker Change: Both of the content that the timeline of the review and position everyone for not just success, but more efficiency as a result.
Speaker Change: If you're able to spend some time understanding that and then using that to inform how theyre going to do their independent safety analysis. It in their independent review that they have to do.
Speaker Change: That's how we're approaching that is to lead into that review.
Speaker Change: So it's pretty exciting stuff for us to come in here next week.
Speaker Change: And so we're spending some time and kind of work through that I haven't been in readiness assessment.
Speaker Change: I'm in a position where they have they go through the exercise is to be like okay. Here's what we hear is the actual sort of approach we need in the review to make sure that everything is in place until then accordingly.
Speaker Change: The next question comes from Vikram <unk> from Citi.
Speaker Change: Okay.
Ted: Hi, Thanks for taking the question, it's Ted on predict.
Speaker Change: Is incredibly valuable.
Speaker Change: You know hitting Facebook that here is going to be super useful to then move quickly into submitting the application thereafter.
Ted: Just wanted to follow up on that is there any initial feedback you could share on your discussions with the NRC as you work towards that pre application readiness with SaaS and then just in terms of kind of how many meetings you've been having what sort of discussions you're having.
Speaker Change: One reference point that I think is important here is terrapower is construction permit work.
Speaker Change: As you know they did a readiness assessment and relatively quickly thereafter submitted a construction permit and there has been recent news that the NRC has got ahead of schedule on that review. So you can see why that's a very.
Ted: And then in terms of timing I think the letter mentioned that youre expecting the Cobra to be submitted this year.
Speaker Change: Very similar technology, such as ours. So this is why doing this vertical is probably even more valuable.
Ted: Is the plan to do that one.
Speaker Change: Why we're doing it for the rest of your question.
Ted: Certain aspects of the advance side.
Speaker Change: Yeah, well I mean, we're targeting submitting the rest of the full cohort by the end of the year. The timeline is going to depend a bit on sort of the.
Ted: The kind of effective so should we be expecting that sometime in the fourth quarter.
Speaker Change: Other readiness assessment feedback.
Ted: Yeah, so yeah.
Speaker Change: Affect sort of the timing of the phase one submission, but most likely I mean, given that the backpack takes effect on October 1st it's going to.
Ted: Engaging with the NRC is pretty continual.
I don't actually have the latest number in terms of the total tally of meetings, we've had but it's.
Speaker Change: We're targeting Q4, just because the benefits of that are pretty important to be fully scoped Thunder.
Ted: It's like over.
Speaker Change: Yeah meetings and report commissions everything that goes over 600.
Speaker Change: Since we started working with them back in 2016.
Speaker Change: Got it that's that's very helpful and just in terms of the Opex outlook for this year.
Speaker Change: It's almost changing.
Speaker Change: Well it is changing pretty much by the week.
Speaker Change: So, but yes, I mean basically.
Speaker Change: Just kind of curious like what are the main driver has been helping.
Speaker Change: What all this work for before is right, where we're developing application the content. What that is is really saying, okay. Here's how we're going to meet the regulatory requirements that are outlined in the kind of better regulation and then making sure that that is the <unk>.
Speaker Change: How should we be thinking about cash from operations this year relative to the box.
Speaker Change: With that lower hourly fee rates from the NRC is that factored into the sort of opex outlook as well.
Speaker Change: If you're able to spend some time understanding that and then using that to inform how theyre going to do their independent safety analysis in their independent review that they have to do.
Speaker Change: Yeah. So it's Craig So I gave a range of $65 million to $80 million and incorporate it in that range is a potential is the upside that we get from the lower NRC fees, but those really don't go into effect until October. So that's probably more of a next year impact than a this year impact.
Speaker Change: And so we're spending some time to kind of work through that haven't been had readiness assessment.
Speaker Change: With them in a position where they may go through the exercise is to be like okay. Here's what we do or the actual sort of approach we need in the review to make sure that everything is in place until then accordingly.
Speaker Change: It is incredibly valuable so yes.
Speaker Change: In terms of what are going to be the uses of that increase we can continue to bring on more staff.
Speaker Change: Hitting faced thrown up that here is going to be super useful to then move quickly into submitting the application thereafter.
Speaker Change: One reference point that I think is important here is terrapower is construction permit work.
Speaker Change: Jake talked in his portion of the slides around.
Speaker Change: The work, we're doing at <unk> to get the.
Speaker Change: Site ready for deployment.
Speaker Change: They did a readiness assessment and relatively quickly thereafter submitted to construction for a minute and theres been recent news that the initiatives that ahead of schedule on that review. So you can see why that's a very.
Speaker Change: We're continuing to advance.
Speaker Change: Things on the recycled product and seen activity scale up there.
Speaker Change: And I think I said at the last update that we expected.
Speaker Change: It's a very similar technology such as ours. So this is why doing this vertical is probably even more valuable.
Speaker Change: Atomic alchemy to add circa $3 million to $6 million to our overall burn rate and you know and we're still very much within that range post deal completion.
Speaker Change: And which is why we're doing it to the rest of your question, Yes, I mean, we're targeting submitting the rest of the full cohort by the end of the year. The timeline is going to depend a bit on uncertainty how the readiness assessment feedback.
Speaker Change: No affect sort of the timing of the phase one submission, but most likely I mean, given that the advanced that takes effect on October 1st it's going to put it.
Speaker Change: The next question comes from Eric Stine from Craig Hallum. Your line is open.
Eric Stine: Hi, Jack Hi, Craig.
Speaker Change: We're targeting Q4, just because the benefits of that are pretty important to be fully scoped Thunder.
Speaker Change: Okay.
Speaker Change: Hey, So earlier question just talking about scarcity value is your pipeline fills up just wanted to take it a step further I'm curious you know how how is that kind of change discussions are driven discussions around prepayments.
Speaker Change: Alright, that's very helpful and just in terms of the Opex outlook for this year.
Speaker Change: Just kind of curious like what are the main drivers there.
Speaker Change: Such as you've got with Equinix every day is that something that counterparties out there looking at it as a way to potentially.
Speaker Change: How should we be thinking about cash from operations.
Speaker Change: Relative to the box.
Speaker Change: With that lowered our lease fee rates on the NRC is that factored into the sort of opex outlook as well.
Speaker Change: Hmm.
Speaker Change: Get up further in line secure spot I'm, just curious how that's playing out.
Speaker Change: Yes, so it's Craig So I gave a range of $65 million to $80 million and incorporated in that range is the potential is the upside that we get from the lower NRC fees, but those really don't go into effect until October. So that's probably more of a next year impact than a this year impact.
Speaker Change: Yeah. It's a it's a great question I mean, I think what we're learning and it's been interesting as one each customer has different.
Speaker Change: I'd say different things that matter to them and different tools in their toolbox accordingly, and so what Craig like the important thing about what we've learned and how we've adapted our engagement with them as Craig pointed to we definitely good have jumped into finding some ppas and probably left a lot of value for everybody on the table Accordingly, right and so it's important for us to kind of scope out what makes the most sense for everybody.
Speaker Change: In terms of what are going to be the uses of that increase we can continue to bring on more staff.
Speaker Change: Jake talked in his portion of the slides around.
Speaker Change: The work, we're doing at <unk> to get the site ready for deployment.
Speaker Change: Through how we can structure master partnership agreement and find different ways to work with folks and then you know I think the flavor of that as it is.
Speaker Change: We are continuing to advance things.
Speaker Change: Things on the recycling front and feed activity scale up there.
Speaker Change: That kind of prepayment or similar structures are going to take a lot of different well I'm afraid that can have a lot of different flavors.
And I think I said at the last update that we expected.
Speaker Change: Tom Mcgough, Mega add circa 3% to $6 million to our overall burn rate.
And based on what we're learning so far you know everything from prepayment like we saw in directly there too.
Speaker Change: Potential for.
Speaker Change: And we're still very much within that range post deal completion.
Speaker Change: The strategic investment as a possibility if that makes sense for both parties. There's some reasons that may or may not make sense for all of us of course.
Speaker Change: Profitability.
Speaker Change: The next question comes from Eric Stine from Craig Hallum. Your line is open.
Speaker Change: You know sort of off balance sheet and tenant joint venture approaches the possibility of direct supply chain and procurement the possibility of land lease and kind of value kind of work like that even even just the actual income value of doing work like engineering, citing in different work like that I mean, that's one of the things that on a switch deal I'm, particularly excited about that I think is kind of a little bit.
Eric Stine: Hi, Jack Hi, Craig.
Speaker Change: Okay.
Speaker Change: Hey.
Speaker Change: So earlier question just talking about scarcity value is your pipeline fills up just wanted to take it a step further I'm curious.
Speaker Change: Now how is that kind of changed discussions are driven discussions around prepayments.
Speaker Change: Underappreciated because.
Speaker Change: It's a huge opportunity I mean 12 gigawatts at the phone number to get your head around but the reality is like their position for all of its massive growth given kind of their positioning in the industry and that leadership, especially in high density compute but their attention to detail and their focus on how they do design engineering procurement construction and that we.
Speaker Change: Such as you have got with <unk> is that something that.
Speaker Change: Counterparties out there looking at it as a way to potentially.
Speaker Change: Get.
Speaker Change: Get up further in line secure spot just curious how that's playing out.
Speaker Change: I would captivated by the first time I met them.
Speaker Change: Yeah. It's.
Speaker Change: Similar I saw some of what they do is to what we do.
Speaker Change: It's a great question I mean, I think what we're learning and it's been interesting as one each customer has different.
Speaker Change: And as a result, like the ability to kind of I'm going to use your term co accelerate deployment by working with them and tapping into their engineering capabilities resource.
Speaker Change: <unk>.
Speaker Change: I would say different things that matter to them and different tools in a toolbox accordingly, and so while what Craig like the important thing about what we've learned and how we've adapted our engagement with them as Craig pointed to we definitely could have jumped in the findings in ppas and probably left a lot of value for everybody on the table Accordingly, right and so it's important for us to kind of scope out what makes most sense for everybody.
Speaker Change: That sort of pulls back into any particular construction side.
Speaker Change: It is really helpful for us, meaning it's the pre conditioning and acceleration of working with a group of actively already building a lot of facilities that have some direct carryover.
Speaker Change: It can be difficult to overstate the value of that right, so being able to fly to enter some of those pieces and work towards the side, that's very promising and very exciting. So there's a lot of in kind of value that comes off that doesn't show up directly on the balance sheet, but helps accelerate everything across the board.
Speaker Change: Through how we can structure master partnership agreement and find different ways to work with folks and I think the flavor of that.
Speaker Change: That kind of prepayment or similar structures is going to take a lot of different well I'm afraid, they're going to have a lot of different flavors.
Speaker Change: You know in that sense.
Speaker Change: So accordingly, I think theres a lot of flavors and each customer is different you know different tools and tool box in a different appetite accordingly in our view is just working with the ones that kind of help us maximize value for everybody and help us get it.
Speaker Change: And based on what we're learning so far you know everything from prepayment like we saw directly there to the potential for.
Speaker Change: The strategic investment as a possibility if that makes sense for both parties. There's some reasons that may or may not make sense for all of us of course.
Speaker Change: Positioned to do what actually needs to get done which is built.
Speaker Change: On the profitability.
Speaker Change: Build plants produce power and then you know have been used to power. That's what we're ultimately working towards and since there are several different initial steps that can help them get there you know this master power kind of <unk> and.
Speaker Change: Sort of off balance sheet tenant joint venture approaches the possibility of direct supply chain procurement the possibility of land lease and kind of value kind of work like that even even just the actual income value of doing work like engineering exciting and different work like that I mean, thats one of the things that on the switch deal I'm, particularly excited about that I think is kind of a little.
Matthew: Matthew Sorry, Mastercard agreement structure allows us to find out partnerships and structure them and then iteratively grow those things.
Matthew: Because the more you get to know a site and the customer the more you find that certain levers or higher impact on other levers and so you want to work with them to pull those accordingly, so it's kind of a long winded answer, but that's how we're how we're seeing it structure out so definitely the opportunity for that and other types of things that have a similar kind of upside benefit.
Underappreciated because.
Speaker Change: It's a huge opportunity I mean 12 gigawatts at the hard number to get your head around but the reality is like their position for all this massive growth given kind of their positioning in the industry and their leadership, especially in high density compute but their attention to detail and their focus on how they do design engineering procurement construction and that we.
Speaker Change: Yeah, No that's a great great answer thank you for that.
Speaker Change: And maybe just for my follow up just on atomic Alchemy, you mentioned potential that we see revenues initial and first quarter of 2006, and you mentioned that the the demonstration project could you just lay out some of the signposts to look for so we can kind of track. If in fact things are on track for that first quarter of 'twenty.
Speaker Change: I was captivated by the first time I met them in.
Speaker Change: How similar I saw some of what they do is to what we do.
Speaker Change: And as a result, like the ability to kind of I'm going to use the term co accelerate.
Speaker Change: Deployment by working with them and tapping into their engineering capabilities resource.
Speaker Change: Six or any.
Full stack engineering procurement instruction side.
Speaker Change: Many of the factors that might push that out a bit.
Speaker Change: It is really helpful for us.
Speaker Change: Yeah. So.
Speaker Change: The pre conditioning and acceleration of working with a group that actively already building audit facilities that have some direct carryover.
Speaker Change: This is a fun part of the business that's going to have a lot of upside or it's kind of continued elimination occurs here.
Speaker Change: It can be difficult to overstate the value of that right, so being able to fly to enter some of those pieces and work towards the side, that's very promising and very exciting. So there's a lot of it in kind of value that comes off that didn't ship directly on the balance sheet, but it helps to accelerate everything across the board.
Speaker Change: From the sort of you know just like edification perspective is there anything like that.
Speaker Change: I think.
Speaker Change: You know there are a couple of watch points of how that's going to progress accordingly, with different you know progress at their facilities and capabilities.
Speaker Change: In that sense so.
Speaker Change: So accordingly, I think theres a lot of flavors and each customer is different you know different tools toolbox in a different appetite accordingly in our view is just working with the ones that kind of help us maximize value for everybody and help us get there.
Speaker Change: <unk> build out.
Speaker Change: What they're doing out in Idaho, and potentially other sites and then also the ability to source some of these different materials.
Speaker Change: And tap into that and then couple that with and if you think about what they're doing is a couple of main major kind of points of value accretion. They had right. One is on being able to do the kind of near term work. The other is like.
Speaker Change: Physician to do what actually needs to get done which is built.
Speaker Change: Build plants produce power and then have them use the power that's what we're ultimately working towards and since there are several different initial steps that can help us get there.
Speaker Change: Yeah, well some existing materials from either you know existent sort of reserves of radionuclides that are kind of untapped or like.
Speaker Change: <unk> and <unk>.
Speaker Change: So our Mastercard agreement structure allows us to define those partnerships and structure them and then iteratively grow those things.
Speaker Change: Like you know primary used sources and radio therapy devices than the <unk>.
Speaker Change: Because the more you get to know a site and the customer the more you find that certain levers or higher impact on other levers and so you want to work with them to pull those accordingly, so it's kind of a long winded answer, but that's how we're how we're seeing it structure out so definitely the opportunity for that and other types of things that have a similar kind of upside benefit.
Speaker Change: Other is.
Speaker Change: The opportunity to actually directly produce.
Speaker Change: With their own reactor design and approach is very different than a power reactor in it's very cool.
Speaker Change: To see how this stuff works, but basically you build a reactor that main product is neutral.
Speaker Change: Yes, no that's a great great answer thank you for that.
Speaker Change: And then you put material in that reactor to absorb neutrons and turn it into other elements I mean, it literally is the alchemy images look so cool about neutral and then and that produces an incredibly high value materials. One of the things we really like about their approaches the leveraging very mature technology said, they're not trying to build these hybrid designs on the reactor side that gives you the highest absolute performance.
Speaker Change: And maybe just for my follow up just on atomic Alchemy, you mentioned potential that we see revenues initial and first quarter of 2006, and you mentioned that the demonstration project could you just lay out some of the signposts to look for so.
Speaker Change: So we can kind of track if in fact things are on track for that first quarter 'twenty six or any.
Speaker Change: <unk>, but at a marginally massive cost and that's something that's easy to fall into because you know the marginal.
Speaker Change: Many of the factors that might push that out a bit.
Speaker Change: Economics unit economics on some of these materials are so high it's like Oh why nasal.
Speaker Change: Yeah. So.
Speaker Change: Pay for building out sort of this like Lamborghini or a reactor when really you just need like a Ford F 150.
Speaker Change: This is a fun part of the business that's going to have a lot of upside as kind of continued illumination occurs here.
Speaker Change: Maybe that sort of analogy may be better to take a Toyota camry, but like is it simpler cheaper I'm seeing that gets you to 20% 80% of what need but does it you know in bulk and you could get to build a lot faster and need a lot less capex to get it built.
Speaker Change: From the sort of just like Edification perspective is what I mean with that.
Speaker Change: I think.
Speaker Change: There's a couple of watch points of how that's going to progress accordingly with different progress at their facilities and capabilities there.
Speaker Change: So that's another angle for potential future growth in some of the regulatory development milestones that come there are going to be important.
Speaker Change: Build out.
Speaker Change: What they are doing out in Idaho, and potentially other sites and then also their ability to source some of these differ materials.
Speaker Change: And then additionally.
Speaker Change: They're just going to be sort of the ability to tap into the things we're doing in the recycling side.
Speaker Change: And tap into that and then couple that within if you think about what Theyre doing is a couple of main major kind of points of value accretion. They have one is on being able to do the kind of near term work. The other is like.
Speaker Change: Pull out some of the what would otherwise be byproducts and turn them into co products from ours I bring process and then another thing thats a little bit underappreciated that goes back to the legacy of batch reactors, that's really cool one of the plants, we derive our legacy promise called fast flux test facility in Washington State and that actually was a it was a fast reactor sending five factor a lot of similar attributes to what we're doing.
Speaker Change: Some existing materials from either existent sort of reserves of radionuclides that are kind of untapped or like.
Speaker Change: Primary used sources and radio therapy devices than the other is.
Speaker Change: And it was did a lot of really cool things in terms of isotope production.
Speaker Change: The opportunity to actually directly produce.
Speaker Change: And there are some unique things we can do for high value extra production and fast reactors. So accordingly, we expect that some of our plants the Idaho plant being a very good candidate for this to have some extra flexibility baked into it to actually allow you to produce radio isotopes, they're already doing work at Idaho National Laboratory in Idaho Falls, So it's kind of a natural segue to produce additional revenue streams.
Speaker Change: With their own reactor design and approach is very different than a power reactor that's very cool.
Speaker Change: To see how this stuff works, but basically you build the reactor the main product is neutral.
Speaker Change: And then you put material in that reactor to absorb neutrons and turn into other elements I mean, it literally is the alchemy, which is what circle about neutral and then and that produces incredibly high value materials. One of the things we really liked about their approaches the leveraging very mature technology said, they're not trying to build these hybrid designs on the reactor side that gives you the highest absolute perform.
Speaker Change: That first plant.
Speaker Change: With you know I stopped production in sales from it.
Speaker Change: So like very you know kind of cool combination of different features that come together that way, but I would say like you know there's going to be updated as we go forward on a quarterly side of that sort of where the progress and how that's tracking you know certain things are kind of well on oh, sorry, if certain things are kind of in development on the facility side. Other things have some regulatory permitting milestones that will kind of come forward.
Speaker Change: <unk>, but at a marginally massive cost and thats something thats easy to fall into because.
Speaker Change: The marginal economics of the unit economics on some of these materials are so high it's like Oh, I may as well.
Speaker Change: Is that the kind.
I can pay for building out sort of this like Lamborghini or a reactor when really you just need like a Ford F 150.
Speaker Change: Kind of progress accordingly, and it'll just be a point, where we fold into our normal uptake excuse.
Speaker Change: Excuse me a cadence that we have.
Speaker Change: Maybe that's the best analogy, maybe better to pick a Toyota camry, but like is it simpler cheaper machine. It gets you to 20% 80% of what you need but does it.
Okay.
Speaker Change: The next question comes from Craig Shere from Tuohy advantage. Your line is open.
Speaker Change: And bulk communicated builds a lot faster and need a lot less capex to get it built.
Speaker Change: Good afternoon, thanks for taking the questions.
Speaker Change: Yes.
Speaker Change: So.
Speaker Change: That's another angle for potential future growth in some of the regulatory development milestones that come there are going to be important.
Speaker Change: Did I hear correctly in response to Ryan's opening question.
Speaker Change: And then additionally.
Speaker Change: Our 75 megawatt powerhouse would have similar non fuel capex is.
Speaker Change: They're just going to be sort of the ability to tap into the things we're doing on the recycling side.
Speaker Change: The 50 megawatt design and as to Eric's question.
Speaker Change: Pull out some of the what would otherwise be byproducts and turn them into co products from a recycling process and then another thing thats a little bit underappreciated that goes back to the legacy advanced reactors. Its really cool one of the plants, we drive our legacy promise called fast flux test facility in Washington State and that actually was is.
Speaker Change: Does the more scaled plant design, obviously, increasing.
Speaker Change: Fuel needs and in Capex, including fuel.
Speaker Change: Does that necessitate.
Speaker Change: Is it fast reactors running fast reactor lot of similar attributes to what we're doing.
Speaker Change: Either frontloaded customer payments and our project equity participation, if youre going to implement.
Speaker Change: It did.
Speaker Change: Did a lot of really cool things in terms of isotope production.
Speaker Change: The faster skilled deployments and finally, you know not only with capital and issue in their early years.
Speaker Change: And there are some unique thing you can do for high value extra production and fast reactors. So accordingly, we expect that some of our plants the Idaho plant being a very good candidate for this to have some extra flexibility baked into it to actually allow you to produce radio isotopes Theyre already doing work at Idaho National Laboratory in Idaho Falls, So it's kind of a natural segue to produce additional revenue streams from that.
Speaker Change: Commercialization, but obviously the first two or three years, Hey, Lou fuel as an or limited supply.
Speaker Change: Thoughts of addressing accelerated halo requirements. If you move more quickly to these upsized designs.
Speaker Change: <unk> plant.
Speaker Change: I stopped production in sales from it.
Speaker Change: So like very kind of cool combination of different features that come together that way, but I would say like.
Speaker Change: Yeah, but a bunch of questions. So I'll try to get through impacting each of those accordingly.
Speaker Change: There's going to be updated as we go forward on a quarterly side about sort of where the progress and how thats tracking certain things are kind of well on.
Speaker Change: Theres a bit of a higher capex between 50 and 75 if you.
Speaker Change: Go that way just because you have bigger heat exchangers are bigger turbines. So you do have an increase in the capex across the board there.
Speaker Change: Sorry, if certain things are kind of in development on the sort of facility side. Other things have some regulatory permitting milestones that will kind of come forward is.
Speaker Change: But it's typically something that but with scale favorably for you and similarly, you know the size range, you actually get more power per year.
Speaker Change: Is this the kind of progress accordingly, and that will just be a point, where we fold into our normal update.
Speaker Change: Excuse me cadence that we have.
Speaker Change: Kilogram of fuel accordingly, so there's some benefits accordingly to come that way.
Speaker Change: Okay.
Speaker Change: The next question comes from Craig Shere from Tuohy investors. Your line is open.
Speaker Change: So it gives us some more flexibility, but that that's really just kind of margin improvement part of the name like part of the other driver here I mean, the main drivers is matching that with customers. The other benefit though that happens. This way as you are getting more megawatts you know basically for your fuel and given that fuel supply is constrained this gives us the flex.
Craig Shere: Good afternoon, thanks for taking the questions.
Did I hear correctly in response to Ryan's opening question.
Craig Shere: Our 75 megawatt powerhouse would have similar non fuel capex is.
Speaker Change: The ability to preserve the benefits of tapping into their existing supply chain and capabilities for a lot of the componentry here and live within that realm, and not get too bespoke and all of the upstream and downstream effects on the company. If you do that right, including meeting too.
Craig Shere: The 50 megawatt design and as Eric's question.
Craig Shere: Does the more scaled plant design, obviously, increasing.
Craig Shere: Fuel needs and capex, including fuel.
Craig Shere: Does that necessitate either frontloaded customer payments and our project equity participation, if youre going to implement.
Speaker Change: But a lot more capex in that in the tooling and the upfront manufacturing and all those kinds of things that avoids a lot of that by saying any sizes.
Speaker Change: But also.
Speaker Change: <unk> gives you that benefit of having a little bit more I will call just economic efficiency on the fuel side. So at the end of the day.
Craig Shere: Faster skilled deployments and finally.
Craig Shere: Not only is capital an issue in your early years of commercialization, but obviously the first two or three years, Hey, Loo fuel is in more limited supply any thoughts of addressing accelerated halo requirements. If you move more quickly to these upsized designs.
Speaker Change: You can build more reactor or sorry, you can build more megawatts two really things you can build more gigawatts with less fuel accordingly, and that's a part of it the one of the other drivers that's important here.
Speaker Change: No not for a question that comes as well what if why don't you just go to like Hunter Jerry Maguire.
Speaker Change: Well, we always evaluate kind of different five points, but the reality is there's a lot of an inflection that occurs once you get above kind of a 75 megawatt range.
Craig Shere: Yeah. That's a question so I'll try to get through impacting each of those accordingly.
Speaker Change: It starts to complicate things up and down the stream on supply chain that that do put a lot more cost challenges drivers and uncertainties play.
Craig Shere: A bit of a higher capex between 50 and 75 if you.
Craig Shere: Go that way just because you have bigger heat exchangers bigger.
Speaker Change: So maybe in time that makes sense, that's something we will continue to watch and see as we execute.
Craig Shere: Bigger turbines. So you do have an increase in the capex across the board there.
Speaker Change: What we're doing now to see if there's some insights we get through execution.
Craig Shere: But it's typically something that that with scale favorably for you and similarly.
Speaker Change: Those more either palatable approachable or want to do them.
Craig Shere: The size range do you actually get more power per.
Speaker Change: But we see a pretty favorable.
Craig Shere: Kilogram of fuel accordingly, so there is some benefits accordingly to come that way.
Speaker Change: Favorable sweet spot that matches really well with where we see the bulk of our customer interesting at the size range and giving us the ability to execute against that accordingly.
Craig Shere: So it gives us some more flexibility, but that that's really just kind of margin improvement.
Craig Shere: The main part of the other driver here I mean, the main drivers is matching this with customers. The other benefit though that happens this way as you are getting more megawatts.
Speaker Change: And the talks about kind of a cow tayo.
Speaker Change: Sorry, I feel like I kind of cut cut you off you said that last part again I'm sorry, it was about cat Arctic.
Craig Shere: Basically for your fuel and given that fuel supply is constrained. This gives us the flexibility to preserve the benefits of tapping into their existing supply chain and capabilities for a lot of the componentry here and live within that realm, and not get too bespoke and all of the upstream and downstream effects on the company. If you do that right, including meeting too.
Speaker Change: Yeah.
Speaker Change: Did you have to Frontload Morgan.
Speaker Change: It's economic but you have to come up with the money.
Speaker Change: Yeah. So it's look like it will add more front end capex, but.
Speaker Change: Similar to what we saw when you go from 15 to 50 and materials, we showed at our Investor day deck, but it will improve in terms of.
Craig Shere: But a lot more capex in the tooling and the upfront manufacturing and all those kinds of things that avoids a lot of that by staying in the sizes.
Speaker Change: The dollars per megawatt delivered.
Craig Shere: But also.
Craig Shere: Gives you that benefit of having a little bit more I'll call just economic efficiency on the fuel side. So at the end of the day.
Jack: And as Jack said, it's a much more efficient use of <unk>.
Speaker Change: Fuel and other things.
Craig Shere: You can build more react or sorry, you can build more megawatts to really say that you can build more gigawatts with less fuel accordingly, and that's a part of the one of the other drivers are important here.
Speaker Change: The next question comes from Max Hopkins from CLSA. Your line is open.
Craig Shere: A natural question that covenant as well why don't you just go to the 100 Jeremy.
Max Hopkins: Hello, Thank you for the time.
Craig Shere: Well, we always evaluate kind of different five points, but the reality is there's a lot of an inflection that occurred once you get above the 75 megawatt range.
Speaker Change: On fuel I see Daniel fundamental centers, he kind of.
Speaker Change: Let them and turn them around very well now on our board.
Craig Shere: It starts to complicate things up and downstream on supply chain that do put a lot more.
Speaker Change: I'll see.
Speaker Change: My talks with but with a lot of investors. It all comes down to fuel it seems like in the longer term.
Craig Shere: The challenge with drivers and uncertainties in play.
Craig Shere: So maybe in time that makes sense, that's something we'll continue to watch and see.
Speaker Change: You guys are not part of the E. R. D P. But you know you have.
Craig Shere: We execute.
Louis: Hey, Louis procured and secured.
Craig Shere: What we're doing now to see if there is some of the insights we get them through execution that made those more either palatable approachable or want to do them, but.
Speaker Change: I guess, how does that look going forward with more procurement payload will it be central specifically you guys need to procure with or can you go to other providers.
Craig Shere: But we see a pretty.
Craig Shere: Favorable sweet spot that matches really well with where we see the bulk of our customer interest being at the size range and giving us the ability to execute against that accordingly.
Louis: Providers.
Louis: Or just straight to the Doa.
Louis: I guess, how does the fuel procurement and look going forward.
Louis: Yeah. It's a great question I mean, there's one of the things that's interesting and exciting about this space in this opportunity.
Craig Shere: And look the thoughts about kind of our accounts.
Craig Shere: Yes.
Sorry, I feel like I kind of cut cut you off can you say that last part again I'm sorry, it was about <unk>.
Louis: I love that we have fuel for our first plant for many many reasons.
Louis: And one of the important one as it helps position us to figure out the best ways to find the fuel for the next plants and in a scalable way, it's one of the reasons.
Craig Shere: Yes.
Craig Shere: Did you have to Frontload more.
Craig Shere: It's economic but you have to come up with the money.
Louis: Publicly partnered with interest and.
Craig Shere: Yes, so Craig it will add more front end capex, but.
Louis: We're very excited that they are producing haynesville as we speak we're very excited about what that path looks like to increase I don't want to continue to work with them and find different ways, we can help partner and accelerate accordingly on that front.
Craig Shere: Similar to what we saw when you go from 15% to 50 and materials, we showed at our Investor day deck, but it will improve in terms of.
Louis: We're very pleased that you know obviously, there's been the programs from the U S government to help scale up and spin out what's happening in Hayley sign.
Craig Shere: In the $1 per megawatt delivered.
Louis: And we see those things as all constructive and moving forward. There is you know this kind of multi step downs that are occurring.
Speaker Change: And as Jack said, it's a much more efficient use of fuel and other things.
Louis: Look the part of the reason that these kind of partnership agreements that we sign are so important because it helps fill the order book and then help them build the frameworks accordingly, because everything is adopting and dynamic right now to best accelerated the fuel side jumping forward the DPA.
Max Hopkins: The next question comes from Max Hopkins from CLSA. Your line is open.
Max Hopkins: Hello, Thank you for the time.
Speaker Change: On fuel I see Daniel fundamental centers, he kind of.
Max Hopkins: Let them and turn them around very well.
Louis: Yeah.
Max Hopkins: Now on the board.
Louis: Two two soon and then maybe you can leave some opportunity on the table about how you could position the growth forward because some of these PPA and if even if it's a multi gigawatt potential upside on the whole project or the whole partnership you're probably going to most likely have the PPA signed an incremental chunks.
Speaker Change: I'll see when Mike talks with.
Speaker Change: A lot of investors it all comes down to fuel it seems like in the longer term.
Speaker Change: You guys are not part of the <unk>, but you have.
Speaker Change: Hey, Luke procured and secured.
Louis: <unk> go in as they sell the power and their capacity right on the data center side Accordingly.
Speaker Change: I guess, how does that look going forward with more procurement payload will it be center, specifically you guys need to procure with or can you go to other providers.
Louis: You know if you want to build the framework for sustained production over 20 years, that's much more valuable to everybody then just sort of like alright P. J, we're going to spend to get built in the next five to eight years and therefore bring the order accordingly in a sense and then having the refueling kind of say, let's just go with it those things piece together are even more powerful than standalone.
Speaker Change: Providers.
Speaker Change: Or just straight to the Doe.
Speaker Change: I guess, how does the fuel procurement and look going forward.
Speaker Change: Yeah. It's a great question I mean this is one of the things that's it.
Speaker Change: Interesting and exciting about this space in this opportunity.
Louis: The building that picture out helps in Richard's on capital planning helps us build the right frameworks helped build the right kind of contract structures and even inform the right policy levers is a very important thing to highlight here too I think significant first of all.
Speaker Change: I love that we have fuel for our first plant for many many reasons.
Speaker Change: And one really important one as it helps position us to figure out the best way to find Joe for the next plants and in a scalable way. It's one of the reasons, we publicly partnered with centers.
Louis: I think sometimes people tend to focus well designed doesn't need halo and that's a big benefit that's not really not that accurate.
Speaker Change: We're very excited that they are producing helium as we speak we're very excited about what their path looks like to increase that and continue to work with them and finding different ways. We can help partner and accelerated boringly on that front.
The enrichment market across the western World are pretty tight right. We were importing 18% of our enrichment service from Russia, and that's off the table more a lesson. There are exemptions being made of course I understand that but even if there's changes in that policy. This is being challenged by.
Speaker Change: We're very pleased that obviously theres been the programs from the U S government to help scale up and spin out what's happening in Hayley side.
Speaker Change: And we see those things as all constructive and moving forward. There is this kind of multi step dance those occurring.
Louis: You know I should say challenged stretched by increasing demand for new plant life extension restarting plants, even on just the conventional Leds side. So really the capacity for L. EU is over is basically over boats and so is of course the capacity for Hay Lew now obviously the capacity the production of the value is much larger than the production of daily today.
Speaker Change: Look the part of the reason that these kind of partnership agreements that we signed are so important is because it helps build the order book and then help build the frameworks accordingly, because everything is adopting and dynamic right now to best accelerate the fuel side jumping forward the PPA while it.
Louis: But this is a constraining challenge across the board now what's a feature about that problem, though is the demand signals are clear across the spectrum. Obviously, the hyperscale guys have shown that they're not they've been partnering.
Speaker Change: Too soon and then maybe you leave some opportunity on the table about how you could position the growth forward because some of these ppas if even if it's a multi gigawatt potential upside on the whole project of the whole partnership you're probably going to most likely have the PPA signed an incremental chunks as the phases go in as they sell the power and their capacity right on the data center side Accordingly.
Louis: Most of these announcements that come working with like us and our peers, who are doing reactors that you say lose so clearly there's something as they dig into it. They feel like these are things that help move that forward. It because it's a fundamental problem, but it's important because what all that kind of translates to then is we're stimulating the supply chain for the enrichment industry across the board with.
Speaker Change: You know if you want to build the framework for sustained production over 20 years, that's much more valuable to everybody then just sort of like alright. This PPA, we're going to spend to get built in the next five to eight years and therefore bring the order accordingly in our defense and then having the refueling kind of fit into that go with it those things piece together are even more powerful than standalone, but.
Louis: These different government programs any different sort of commercial assets that are coming together because the centrifuges that you make on the centrifuge technology base to make early you are the same that you're really going to use to make each alien, but youre going to typically see an order book Thats larger on the LTE side, just given the existing fleet and the size of it. So if you spend that into a growth mode.
Speaker Change: Building that picture out helps you and Richard on the capital planning helps us helps build the right frameworks helped build the right kind of contract structures and even inform the right policy levers is a very important thing to highlight here too that's a significant first of all.
Louis: Youre going to see a significant drop in the economies scale production of that equipment, and then that is going to propagate across the entire ecosystem from <unk> to Hayward. So all of this is a silver lining of the tightness today, the significant benefits to be seen tomorrow. So.
Speaker Change: I think sometimes people tend to focus well design doesn't need halo and that's a big benefit that's not really not that accurate.
Speaker Change: The enrichment market across the western World are pretty tight right. We were reporting 18% of our enrichment service from Russia.
Louis: I do worry about sort of the bridge between now and the early 2030, we obviously have a little bit of an Ethan are up our sleeves and the recycling side, it's kind of affiliate way to say it but recycling helps diversify our exposure to that massively and that's part of why we're taking this approach. It also just massively changes the fuel utilization question and economics. It's.
Speaker Change: The table more or less in their adventures being made of course I understand that but even if there's changes in that policy. This is being challenged by.
Speaker Change: I should say challenged stretched by increasing demand for new plant life extension restarting plants, even on just the conventional <unk> side. So really the capacity for <unk> is over is basically over boats and so is of course the capacity for elite now obviously the capacity the production value is much larger than the production of Hayley today.
Louis: Hard to be dropping your fuel cost, which is a big cost item in our plans by over 80% having that potential is pretty exciting.
Speaker Change: Not to mention all the other benefits you get from recycling Budd.
Speaker Change: What we see is you know like there is significant opportunity and there's appetite as we see it coming together on a policy landscape for opening up reserves extra reserves of fuel, but the government.
Speaker Change: But this is a constraining challenged across the board now what's a feature about that problem known is the demand signals are clear across the spectrum. Obviously, the hyperscale is have shown that they're not they've been partnering.
Speaker Change: Has that can be used to bridge us to that point I'm one of the interesting things about that is that's actually preferentially advantages on average.
Speaker Change: Most of these announcements have come working with like us and our peers, who are doing reactors that you say loose. So clearly there was something that they dig into it. They feel like these are things that help move that forward because it's a followup we'll problem, but it's important because what all of that kind of translates to then is we're stimulating the supply chain for the enrichment industry across the board with these.
Speaker Change: Actually fast reactors, because youre accommodating the securities that might exist in some of the government reserves that they can't use for anything else because of impurities that don't matter the batch reactors it already using different sources of this material and therefore opening up totally different opportunities to basically bridge us forward and I will not make this be kind of as a potential.
Speaker Change: Different government programs and the different sort of commercial updates that are coming together because the centrifuges that you make on the centrifuge technology base to make early view are the same that you're really going to use to make each alien, but youre going to typically see an order book Thats larger on the LTE side, just given the existing fleet and the size of it. So if you spin that into a growth mode.
Speaker Change: Sort of couple of kind of timing risk dynamic that does exist today that is growing market forces will work through this and resolve it but we're pretty excited about some of the policy appetite we've already been a beneficiary of what that looks like we've shown that that can be a successful pathway to open up government reserves is the bridging mechanism and we're very excited and eager to see them.
Speaker Change: But basically helped drive forward hopefully more of that to come that helps us and others, but theres a lot of features that actually buy on purpose. How we've designed our system. The features that allow us to recycle and be flexible fuel streams are actually going to help us a lot. If those programs get opened up because of loss, making you just pretty much anything that's out there.
Speaker Change: Youre going to see significant drop in the economy scale production of that equipment, and then that is going to propagate across the entire ecosystem from LTE to Hayward. So all of this is a silver lining of the tightness today, the significant benefits to be seen tomorrow.
Speaker Change: Yes.
Speaker Change: I do worry about sort of the bridge between now and the early 2000 <unk>, we obviously have a little bit of an Ethernet up our sleeve and the recycling side Thats kind of affiliate way to say it but recycling helps diversify our exposure to that massively and thats part of why we're taking this approach. It also just massively changes the fuel utilization question and economics.
Speaker Change: Not everyone else can do that and that's going to obviously help because the material that maybe others can't use is not going to be competitive for it and so it gives us good advantages in that sense. So at the end of the day.
Speaker Change: I feel like you know the markets moving in the right ways to address this in a number of fronts for L. U N H L. You with a problem across the board.
Speaker Change: Catch up on the supply there, but it's happening which is good.
Speaker Change: Hard to beat dropping your fuel costs, which is a big cost item in our plans by over 80% having that potential is pretty exciting.
Speaker Change: I'd love to see it happen faster, obviously, but then I think there's also the bridging piece that can really help and help accelerate that happening by the way that ramp up on the commercial side. Because then you can go build reactors and faster because youre not feel constrained which is going to help you then border more fuel to build more reactive faster after that so.
Speaker Change: Not to mention all the other benefits you get from recycling Budd.
Speaker Change: What we see is.
Speaker Change: There is significant opportunity and there is appetite as we see it coming together on the policy landscape for opening up reserves extra reserves of fuel, but the government.
Speaker Change: Cycle. So that's how I would kind of look at that.
Speaker Change: Has that can be used to bridge us to that point and one of the interesting things about that is that's actually preferentially advantages on average.
Speaker Change: Thank you very clear.
Speaker Change: Okay.
Speaker Change: Actually fast reactors, because youre accommodating of securities that might exist in some of the government reserves that they can't use for anything else because of impurities that don't matter to fast reactors.
Speaker Change: I will now pass the call back to Sam Dhillon director of Investor Relations for a couple of questions.
Speaker Change: Using different sources of this material and therefore opening up totally different opportunities to basically bridge us forward and I will not make this be kind of as a potential sort of coupled kind of timing risk dynamic that does exist today that is growing market forces will work through this and resolve it but were.
Sam Dhillon: Thanks, Karen.
Sam Dhillon: Greg We had a couple of retail questions. The first one is can you give more detail on the switch deal.
Speaker Change: And confirm is this a firm or conditional on what does it mean for Oklahoma.
Sam Dhillon: Yeah happy to.
Sam Dhillon: So.
Sam Dhillon: The Swiss deal.
Sam Dhillon: A pretty exciting opportunity for us given the size right. It's it's a it's a mens in terms of the magnitude of it that 12 gigawatts accordingly.
Speaker Change: Pretty excited about some of the policy appetite, we've already been a beneficiary of what that looks like we've shown that that can be a successful pathway to open up government reserves as a bridging mechanism and we're very excited and eager to see that.
Sam Dhillon: It has conditional elements around it for sure. So it's not a firm PPA, we didn't want to fine affirmed PPA right away around that kind of size. It. It's too early it's much better to do what we did here, which is say okay.
Speaker Change: That basically helped drive forward hopefully more of that to come that helps us and others, but there's a lot of features that actually buy on purpose. How we've designed our system features that allow us to recycle and be flexible fuel streams are actually going to help us a lot. If those programs get opened up because we can use pretty much anything that's out there.
Sam Dhillon: Here's how we're going to work together switch went around and kind of build their tastes and talk to several different company owned companies technologies and.
Speaker Change: Not everyone else can do that and that's going to obviously help because the material that maybe others can't use is not going to be competitive for it and so it gives us good advantages in that sense. So at the end of the day.
Sam Dhillon: Like what we're doing and decided they wanted to work with us and partner with us to power their growth help power their growth and their ambitions accordingly.
Sam Dhillon: And we also really liked working with them you.
Speaker Change: I feel like you know the markets moving in the right ways to address this in a number of fronts for <unk> NHL you is it a problem across the board.
Sam Dhillon: You know theres a lot of people doing work in the space. So we have the benefits of being selected to and we feel like they are really well aligned big vision.
Speaker Change: Catch up on the supply there, but it's happening which is good.
Speaker Change: But do you have a faster obviously, but then I think there is also the bridging piece that can really help and help accelerate that happening by the way that ramp up on the commercial side. Because then you can go build reactors and faster because youre not feel constrained which is going to help you then order more fuel to build more reactor faster after that.
Sam Dhillon: About what they can do incredibly impressive technology for high compute I mean, it's just incredibly impressive and the Guy is a technical guy just from like you know they don't have any tronox in data centers, but they do a thermal hydraulic system are fluid and what they do is awesome and very cool and getting to see that was pretty neat to see and accordingly like the philosophy, there design approach their attention to detail.
Cycle, that's how I would kind of look at that.
Speaker Change: Thank you very clear.
Sam Dhillon: I'll kind of resonated really strongly not as I mentioned kind of the benefits. They have in terms of their plan for scale and growth across a number of different areas. So we were pretty excited to be able to work with them and want to work with them to then frame out this big vision.
I will now pass the call back to Sam Dhillon director of Investor Relations for a couple of detail questions.
Sam Dhillon: Hey, Hey, here's where we see the roadmap being able to go to you and here's how we're gonna start working together as we further refine and define that so this sets the stage to 12 gigawatt.
Speaker Change: Thanks, Karen Jamie Greg We had a couple of retail question. The first one is can you give more detail on the switch deal.
Sam Dhillon: It is one of if not the largest clean power deal in the last say three are in U S history.
And is this a firm or conditional and what does that mean for Oklahoma.
Sam Dhillon: It's great to have the stage set for that but to pick up a lot of time to say, okay. How are we going to execute against this and instead have been spending much time to come up with.
Speaker Change: Yeah happy to.
Speaker Change: So.
Speaker Change: The switch deal.
Speaker Change: Pretty exciting opportunity for us given the size right it's immense.
Sam Dhillon: Grand Master plan that at the end of the day is only going to be you know, 20% accurate because once you start executing against that things change rather it was like let's take this incremental pizza approach of trying to master power agreement that sets the stage of how we're going to work together on five began working together in different areas and government affairs and.
Speaker Change: In terms of the magnitude of it at 12 Gigawatts Accordingly.
Speaker Change: It has conditional elements around it for sure. So it is not a firm PPA, we didn't quantify and affirmed PPA right away around that kind of five it's too early it's much better to do what we did here, which is say okay.
Sam Dhillon: And different aspects around public relations website relations how would you say characterization studies, how we do design scoping sizing, how we actually do site design and integration into the engineering some of the engineering work and therefore, the engineering procurement construction work Accordingly, how does it look.
Speaker Change: Here's how we're going to work together switch went around and kind of build their case and talk to several different company owned companies technologies and <unk>.
Speaker Change: So what we're doing and decided they wanted to work with us and partner with us to power their growth help power their growth and their ambitions accordingly and.
Sam Dhillon: How we can overlap those things happen to what they do really well and find ways to sort of build off of their capabilities. So that there's some economic and timing benefits that way and then use those to define how you actually move to the next stages of contract negotiations for a firm up tick. So this is actually really important and it's the right way to do things if you jump straight to the firm.
Speaker Change: And we also really liked working with them.
Speaker Change: There's a lot of people doing work in the space. So we have the benefits of being selected to and we feel like they are really well aligned big vision.
Speaker Change: About what they can do incredibly impressive technology for high compute I mean, it's just incredibly impressive and the Guy is a technical guy just from like they don't have any tronox in datacenters, but they do a thermal hydraulics, the thermo fluids and what they do is often and very cool and getting to see that was pretty neat to see and accordingly like their philosophy, there design approach their attention to detail all kind.
Sam Dhillon: PPA model again, you might miss the target and get into a bunch of re trading and a bunch of renegotiation and that's just not going to be helpful to building out what we're actually trying to be together, which is much more than just a transactional relationship Brian it's much more about building a very sustainable source of energy to power the future of compute and the I feel like that is pretty problem. So that's how we start.
Speaker Change: It resonated really strongly not to mentioned kind of the benefits. They have in terms of their planned for scale and growth across a number of different areas. So we were pretty excited to be able to work with them and want to work with them to then frame out this big vision.
Sam Dhillon: With that again like just from an engineering kind of Cold Lake.
Speaker Change: I guess I'd almost call it a philosophical alignment like I saw so many parallels what they do to what we need to do from designing a fixed level asset how you route.
Speaker Change: Say, hey, here's where we see the roadmap being able to go to you and here's how we're going to start working together as we further refine and define this so this sets the stage to 12 Gigawatts is it I mean, it is one of if not the largest clean power deal in the U S. With three are in U S history.
Speaker Change: Sort of bringing these prefabricated manufactured componentry and put it together and route typing in rough plumbing and write about power like Theres a lot of similarities it's not again not the same thing, but there's a lot of interesting similarities. So a great example of what that partnership sets the stage for and how we expect that to go and it's also worth noting it spans a very long timeline to deploy to that I mean, it's going to take us a long.
Speaker Change: Until like it it's great to have the stage set for that but that takes a lot of time to say, okay. How are we can execute against this and instead have been spending much time to come up with.
Speaker Change: Time to scale and spoke gigawatt.
Speaker Change: This Grand Master plan that at the end of the day is only going to be 20% accurate because once you start executing against that things change.
Speaker Change: I mean, I'm excited about the opportunity, but it's not something we can just do overnight and it's not something we can do in five years, even or even 10 years right. That's why that span several decades. So.
Speaker Change: Rather it was like let's take this incremental piecemeal approach of trying to master power agreement that sets the stage of how we're going to work together on site being able to go into different areas and government affairs and.
Speaker Change: Anyway, that's how we frame this in scope and size.
Speaker Change: And I think this is kind of the right way to put these things together to help move the ball forward. So there's much more to come here right as these things progress, but it's the right kind of initial steps to move forward.
Speaker Change: And different aspects around public relations insight relations how would you say characterization studies, how we do design scoping advising how we actually do site design and integration into the engineering some of the engineering work and therefore, the engineering procurement construction work Accordingly, how do we look at how we can overlap those things happen to what they do really well and find ways to sort of build off of their capabilities. So that there is some economic.
Speaker Change: Jake I always kind of held it internally that with when we were talking to switch I think back to the meeting you and I and other members of our team had with Rob Roy and his team in Las Vegas to kind of pivot towards the Master partnership agreement because as we were growing deeper cover six patients with the switch team we realized there was more than one.
Speaker Change: And timing benefits that way and then use those to define how you actually move to the next stages of contract negotiations for Fairmount <unk>. So this is actually really important and it's the right way to do things. If you jump straight to dislike firm PPA model again, you might miss the target and get into a bunch of re trading and a bunch of renegotiation and thats just not going to be helpful.
Speaker Change: Avenue, a partnership that we could take with them, which is why we put that over overarching frame in place that we could.
Speaker Change: Floor different things at different points in time and try to find optimized partnership elements between.
Speaker Change: So building out what we are actually trying to do together, which is much more than just a transactional relationship Brian it's much more about building a very sustainable source of energy to power the future of compute and AI. So like that is pre boom. So thats, how we structured that again like this from an engineering kind of late.
Speaker Change: What switch is looking for in their priorities as well as local.
Speaker Change: Great. Thank you both last question for the day, Okay previously face regulatory setbacks with the NRC rejecting this application due to information gaps given those challenges what specific changes are advanced and have you made they now give me confidence in securing approval for your nuclear projects.
Speaker Change: I guess I'd almost call it a philosophical alignment like I saw so many parallels what they do to what we need to do from designing a fixed level asset how you route.
Speaker Change: Sort of bringing these prefabricated manufactured componentry and put it together and wrap by being in rough plumbing and write about power like Theres a lot of similarities it's on again on the same theme, but theres a lot of interesting similarities. So a great example of what that partnership sets the stage for and how we expect that to go and it's also worth noting it spans a very long timeline to deploy to that I mean, it's going to take us a long.
Speaker Change: Yeah, I'm not I'm trying to just like you.
Speaker Change: What's the word like Polish this or put a silver lining on it but like the setbacks. We're also very informative like learning points to gain a lot of information I need them, some way setbacks, but more as learning opportunities important progress and momentum just to recap like you know we submitted our combined license application in the first time around for a while.
Speaker Change: To scale in just 12 Gigawatts.
Speaker Change: I mean, I'm excited about the opportunity, but it's not something we can just do overnight and in fact, when we can do in five years <unk> been or even 10 years right. That's why the span several decades.
Speaker Change: Half megawatt plans out of the Idaho site since the 2020 right.
Speaker Change: Free this boom in AI data centers all of these customer dynamics.
Speaker Change: Anyway, that's how we frame this in scope.
Speaker Change: And much more focused on kind of a smaller incremental piece of reactor development and deployment. Our long term roadmap was always to work our way up into decided right. Now we just wanted to start a small because <unk> reduced the total amount of capital to get built and still have a vibrant market with.
Speaker Change: And I think this is kind of the right way to put these things together to help move the ball forward. So theres much more to come here right as these things progress, but it's the right kind of initial steps to move forward.
Speaker Change: Jake I always kind of held it internally that with.
Speaker Change: Really works well.
Speaker Change: When we were talking to switch I think back to the meeting you and I and other members of our team had with Rob Roy and his team in Las Vegas, and kind of pivot towards the Master partnership agreement because as we were going deeper and covers fixation with the switch team. We realized there were more than one avenue of partnership that we could take with them which is.
Speaker Change: We thought at that time, I've advised the market evolve and move which was good and it's nice because it would have been would have been the best thing for us to build a one five megawatt plant given where the market is today and that license progressed, but also we took a very forward leaning licensing approach and the NRC would work with best in breed applications for four years, leading up to submitting that application including us.
Speaker Change: Why we put that over overarching frame in place that we could.
Speaker Change: Getting an application with them that was very novel and structure in 2018 and that was pretty important because we.
Speaker Change: Splore different things at different points in time and try to find optimized partnership elements between.
Speaker Change: We wanted to try to set up a new framework and a new approach on sort of what a license application will look like I think the tendency in if we try to license. These new reactor types like large conventional light water reactors. It just doesn't really make sense a lot of square peg round boy, there's a lot of waging and do things differently and so.
Speaker Change: Switch is looking for in their priorities as well as local.
Speaker Change: Great. Thank you both last question for the day, Oakland previously face regulatory setbacks with the NRC rejecting it the application due to information gaps given those challenges what specific changes are advanced and have you made they now give me confidence in securing approval for your nuclear projects.
Speaker Change: We leaned into that pretty heavily in the undersea lean back into that heavily and they after they did around.
Speaker Change: Audits on our application pilot application in 2018, and 19 and gave US a clear feedbacks, there's clear feedback that they couldn't have you an application that looks like that that give some feedback about how to approach framing and scoping. It and also took it that okay. You know more or less if you come in or something like that we can find a path to review that and.
Speaker Change: Yeah, I'm not trying to just like you.
Speaker Change: Sure.
Speaker Change: What's the word like Polish this or put a silver lining on it but like the setbacks. We're also very informative like learning points to gain a lot of information I need them, some way setbacks, but more as learning opportunities and forward progress and momentum just to recap we submitted our our combined license application in the first time around for a one.
Speaker Change: And just to put the numbers on it and we went in with an application that was very very forward leaning very very innovative it was like seven major section rather than the 19 difficult chapters. It was only like in less than 600 pages compared to 10, thousands like 10 to 20008 is very different much more lightweight approach and parallel to that the industry was doing some new things that was pretty cool.
Speaker Change: Five megawatt plans out of the Idaho site is in 2020 right.
Speaker Change: Three big boom in AI data centers all of these customer dynamics.
Speaker Change: And much more focused on kind of a smaller incremental piece of the reactor development and deployment. Our long term roadmap was always to work our way up into decided we're at now we just wanted to start a small but good to reduce the total amount of capital to get built and still have a viable market, which really works well.
Speaker Change: And so we were pretty excited about what they were doing in terms of highlighting a very audit heavy review focus rather than kind of a written question and answer approach I mean, they're gonna do both but do a lot more on the orders, which are much more intensive by the way, but they move faster and much more productive for us and for the regulators. Additionally, and that was all based on in person audits and then additionally, they wanted to move forward.
Speaker Change: We thought at that time and advise the market of all the move which was good and it's nice because we would it would have been would have been best thing for us to build a one five megawatt plant given where the market is today and that license progressed, but also we took a very forward leaning licensing approach and the NRC would work with us and breed application for four years, leading up to submitting that application including us.
Speaker Change: Just kind of doing some cool like.
Speaker Change: You know a core team cross functional review team that was working together in person not in a sort of departmental technical silos that they typically would fit in where an application would come in and get shot down out whether they would all be together across different subject matters and working together to kind of develop out there independent safety analysis or do you move forward.
Speaker Change: Getting an application with them that was very novel and structure in 2018, when that was pretty important because we.
Speaker Change: We wanted to try to set up a new framework and a new approach on sort of what a license application will look like I think the tendency.
Speaker Change: Of that we told them Hey, we're going to come in.
Speaker Change: You know very forward leaning we're gonna come in with the we think is justifiable and defensible approach, but it's going to inherently be quite different than what we've seen before so a very you know I would say optimized.
Speaker Change: We try to license these new reactor types like large conventional light water reactors. This doesn't really make sense a lot of square peg ramble. There was a lot of ways you can do things differently and so we leaned into that pretty heavily the NRC lean back into that heavily in the after they did around.
Speaker Change: Safety footprint and how we classified what things are safety related not so as you know is very modern frankly.
Speaker Change: All of that I think it was great.
Speaker Change: Going into 2019 into early 2020, and unfortunately for a much bigger reasons and our application, but obviously the world changed very substantially in March of 2020, which is when we submitted our application literally on the data dependent make with declared and that completely shifted the review dynamics. So that we were no longer doing these in person things, we werent doing.
Speaker Change: Audits on our application pilot application in 2018, and 19 and gave US a clear feedbacks theres clear feedback that it could really be an application. It looks like that that give some feedback about how to approach framing and scoping. It and also took at that okay.
Speaker Change: More or less if you come in or something like that we can find a path to review that.
Speaker Change: And just to put the numbers on it and we went in with an application that was very very forward leaning very very innovative it was like seven major section rather than the 19th difficult chapters. It was only Lincoln's license 600 pages compared to 10, thousands like 10 to 20000 feet is very different much more lightweight approach and parallel to that the NRC was doing some new things that was pretty cool.
Speaker Change: The same approach that we built our application for as far as we knew and we were told by the NRC at that time, we submitted the first application that had ever been submitted online.
Speaker Change: Verified and validated that through the whole change, but we think that's pretty true.
Speaker Change: This is 2020 and just shows you that we were really doing some new things and they were really responding to it ultimately I think it was all too much during an era of Covid and that's where we got set back considerably I think sort of okay. We can't review the application is submitted.
Speaker Change: And so we were pretty excited about what they were doing in terms of highlighting a very audit heavy review focus rather than kind of a written question and answer approach I mean, theyre going to do both but do a lot more on the orders, which are much more intensive by the way, but they moved faster much more productive for us and for the regulators. Additionally, and that was all based on and personal audits and then additionally, they wanted to move forward.
Speaker Change: So they denied it in January.
Speaker Change: 2022.
Speaker Change: After a couple of months later, we're able to engage again in person with them and maybe they got back into pre application. Obviously, we updated the design to be bigger because the market had moved on it that way we had already been talking about that with the NRC and so that gave us the platform to do that move fully into that and then taken approach that allowed us to focus on sort of resolving in answering the open items at the NRC wanted with.
Speaker Change: Just kind of doing some cool like.
Speaker Change: <unk> Cross functional review team that was working together in person not in a sort of departmental technical silos that they typically would sit and where an application will come in and get shaken out whether they would all be together across different subject matters and working together to kind of develop out there independent safety analysis and review and move forward.
Speaker Change: Mostly turned into Hey, how did you do this what was your methodology and then bridging our approach and how we did it to sort of what they're used to seeing and you know what they were comfortable with what we found was a little more time on that and got everyone. A lot more cut it sort of comfortable with the different approaches being taken and saying Oh actually you didn't do these things that we've just done in a way where different from saying it but now spending time together, we see that.
Speaker Change: <unk> of that.
Speaker Change: We told them Hey, we're going to come in.
Speaker Change: You know very forward leaning we're going to come in with me.
Speaker Change: We think is justifiable and defensible approach, but it's going to inherently be quite different than what you've seen before so a very you know I would say optimized.
Speaker Change: It's done in a way that we're kind of used to maybe some extra you know approaches on like if you can help answer questions that we have in these areas that will help US then progressive review for example, do you have many many meetings had been happening from April 22 through now to sort of converge on this to put drive content and application together submit different technical <unk>.
Speaker Change: Safety footprint and how we classified what things are safety related or not so it is very modern frankly.
Speaker Change: All of that I think it was great.
Speaker Change: Going into 2019 into early 2020, and unfortunately for much bigger reasons and our application, but obviously the world changed very substantially in March of 2020, which is when we submitted our application literally on the data dependent make with declared and that completely shifted the review dynamics. So that we were no longer doing these in person things, we werent doing.
Speaker Change: <unk> had meetings and have reviews on that sort of white papers I should say and then also have the top score of course coming out and then also moving into readiness assessment is this the chance to then move forward on all these things at a time.
Speaker Change: The same approach that we built our application for as far as we knew and we were told by the NRC at that time, we submitted the first application that had ever been submitted online.
Speaker Change: Since when we first submitted through now in time looking at these things as well as how we're using them implementing them has actually grown a lot more conversions on the durability of some of the things we were intending to do obviously, there's an update into modernization, but the lessons learned I've been massive because we spent time to actually now I'll go through those things and trying to be a.
Speaker Change: Verified and validated that through the whole change, but we think thats pretty true.
Speaker Change: That was in the 2020 and just showing you that we were really doing some new things and they were really responding to it ultimately I think it was all too much during an era of Covid and that's where we got set back considerably I think sort of okay. We can't review the application is submitted given all of these things.
Speaker Change: The key thing that was different for us compared to other companies as we leaned into that opportunity back at the very beginning of our engagement with the NRC to try to do things in as efficient in the ways, we could see possible and we got some bumps and bruises and scratches and all of that and black eyes, Accordingly, but guess what look at how things have progressed accordingly, and a lot of that stuff and then they are not Mexico, but builds off of some of the thing.
Speaker Change: So they denied in January two.
Speaker Change: 2022.
Speaker Change: After a couple of months later, we're able to engage again in person with them and immediately got back into pre application. Obviously, we update the design to be bigger because the market had moved on it that way we had already been talking about that with the NRC and so that gave us the platform to do that move fully into that and then taken approach that allowed us to focus on sort of resolving in answering the open items at the NRC wanted which.
Speaker Change: As we go forward like some stuff, we tried and before it maybe a bit too different or too much. So that's kind of changed but a lot of things are finding a lot of putting in the different things you know she has done in the last frankly.
Speaker Change: Almost nine years since he started working with them.
Speaker Change: Not because it's like Oh, we did all these things are going to trade. It is more hey, we're trying to do something differently and then other certain echoing that with some time in it and we were obviously ahead of attack and.
Speaker Change: Mostly turned into Hey, how did you do this what was your methodology and then bridging our approach and how we did it to sort of what they're used to seeing and what they were comfortable with and what we found was a little more time on that got everyone. A lot more sort of comfortable with different approaches being taken and saying Oh actually you didn't do these things that we've just done in a way where different from saying it but now spending time together, we see that.
Speaker Change: And so it with other start to kind of digging in and developing our own plans in the space and then they actually looking at it it kind of all come together in a constructive way to say, okay. Yeah, we could do something in this way that's more efficient and right sized and you couple that with the current environment. That's gone from several administration successively of trying to drive forward more modernized regulatory framework and approach to reflect these kind of taper.
Speaker Change: It's done in a way that we're kind of used to maybe some extra.
Speaker Change: Approaches on Mike.
Speaker Change: Can help answer questions. We have in these areas that will help us then.
Speaker Change: Abilities and exchanges.
Speaker Change: Progressive review for example, do you have many many meetings has been happening from April 22 through now to sort of converge on this to put draft content and application together submit different technical reports and have meetings and have reviews on that sort of white papers I should say and then also have the topical reports coming out and then also moving into readiness assessment gives us the chance to then move forward on all of these things.
Speaker Change: It's pretty exciting honestly so at the end of the day like.
Speaker Change: We've applied a lot of lessons learned because nobody else, who has grown its team probably amount to get folks to come in and help us do this but a lot of the things that we put forward are also finding kind of footing with some updates and tweaks with iterations on them.
Speaker Change: Come together over the last couple of years.
Speaker Change: And a time thing.
Speaker Change: These things don't move Super quickly, but we've invested the longest amount of time with anybody to get to the states. So we're in a really good position to go forward in a single application in the next steps thereafter so.
Speaker Change: Since when we first submitted through now in time looking at these things as well as how we're using them implementing them has actually grown a lot more conversions on the durability of some of the things we were intending to do obviously theres some updates into modernization, but the lessons learned I've been massive because we spent time to actually now got through those things and try to be a key thing that was different for us compared to other companies is.
Obviously, theres a lot more work to do.
Speaker Change: We've been very excited about how they are seeing something how we've been doing things that feedback we've gotten has been helpful and constructive here.
Speaker Change: There are some things we've kind of evolved our course on are things that I think actually has as well, but at the end of the day, it's coming together to set the stage for a review unless they have licensed and issued things for other advanced reactor types.
Speaker Change: We leaned into that opportunity back at the very beginning of our engagement with the NRC to try to do things in as efficient in the ways. We can see possible and we got some bumps and bruises and scratches and all of that in black eyes, Accordingly, but guess what look at how things have progressed, accordingly, and a lot of that stuff not mimics but builds off of some of the things we put forward some stuff we tried in before.
Speaker Change: Which are pretty important granted by construction permits or design certifications and those arent the same as the cola, but all of that builds on itself. So that when we go in with the cool application I know theres a lot that we get to stand out and they get to stand up and the success perspective.
Speaker Change: Maybe a bit too different or too much. So it's kind of change, but a lot of things are finding a lot of putting in the different things you know she has done and Alaska frankly right.
Speaker Change: So that's my really long answer, but it's a it's been a journey and one of them I think we will continue to.
Speaker Change: Nine years since we started working with them.
Speaker Change: Not because it's like Oh, we did all these things are calculated as if more hey, we're trying to do something differently and then other certain echoing that with some time in it and we were obviously ahead of the pack.
Jake: I will now hand, the call back to Jake <unk> for closing remarks.
Speaker Change: Great well. Thank you all so much for the time I always fun to talk about the different updates and things that are going on 2024 years with a very exciting year for us for a lot of reasons.
Speaker Change: And so it with other start kind of digging in and developing their own plans in the space and then they actually is looking at it it kind of all come together in a constructive way to say okay. Yes, we can do something in this way that's more efficient and right sized and then you couple that with the current environment. That's gone from several administration successively of trying to drive forward more modernized regulatory framework and approach to reflect these kinds of capabilities.
Speaker Change: But also just a preview of what we're all really excited to go do something I tend to talk about internally is the broad potential of this technology has.
Speaker Change: Really unlocking the energy or <unk>.
Speaker Change: Recognize that we are fortunately blessed with.
Speaker Change: <unk> and exchanges.
Speaker Change: It's pretty exciting honestly so at the end of the day like.
Speaker Change: To have this incredible energy resource that fast reactors are in are cycling are pretty uniquely positioned to play a competency. So thank you for the time and looking forward to the next one.
Speaker Change: We've got.
Speaker Change: Quite a lot of lessons learned as we've done a lot of US who would garner team. We've hired a lot of good folks to come in and help US do this but a lot of the things that we put forward are also finding kind of footing with some updates and tweaks with iterations on them that have come together over the last couple of years.
Speaker Change: Ladies and gentlemen that concludes today's call. Thank all for joining and you may now disconnect.
Speaker Change: These things don't move Super quickly, but we've invested the longest amount of time of anybody to get to the state. So we're in a really good position to go forward into as many applications in the next steps thereafter so.
Obviously, theres a lot more work to do.
Speaker Change: But we've been very excited about how the NRC has done things how we've been doing things in feedback we've gotten has been helpful and constructive here.
Speaker Change: There are some things we've kind of evolved our course on those things that I think actually has as well, but at the end of the day.
Speaker Change: Coming together to set the stage for a review unless they have licensed and issued things for other advanced reactor types, which are pretty important granted by construction permits or design certifications and those arent the same as a cola, but all of that builds on itself. So that when we go in with the core applications. There's a lot that we get to stand out and they get this Dan on from a success perspective.
Speaker Change: So that's my really long answer but.
Speaker Change: It's been a journey and one that we will continue to.
Speaker Change: I will now hand, the call back to Jake <unk> for closing remarks.
Jake Weight: Great well. Thank you all so much for the time I always just want to talk about the different updates and things we have going on 2024 was a very exciting year for us for a lot of reasons.
Jake Weight: But also just a preview of what we're all really excited to go do something I tend to talk about internally is the broad potential that this technology has truly unlocking energy or <unk> that we are fortunately blessed with.
Jake Weight: Is this incredible energy resource that fast reactors around cycling are pretty uniquely positioned to play a fully <unk>. So thank you for the time and looking forward over the next one.
Speaker Change: Ladies and gentlemen that concludes today's call.
Jake Weight: Also joining and you may now disconnect.
Jake Weight: [music].
Jake Weight: Yes.
Jake Weight: Yes.
Jake Weight: [music].