Oklo Q2 2025 Earnings Report

Oklo EPS Results

• Actual EPS: -$0.18
• Consensus EPS: -$0.12
• Beat/Miss: Missed by -$0.06
• One Year Ago EPS: N/A

Oklo Revenue Results

• Actual Revenue: N/A
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Oklo Announcement Details

• Quarter: Q2 2025
• Date: 8/11/2025
• Time: After Market Closes
• Conference Call Date: Monday, August 11, 2025
• Conference Call Time: 5:00PM ET

Oklo (NYSE:OKLO) designs and develops fission power plants to provide reliable and commercial-scale energy to customers in the United States. It also provides used nuclear fuel recycling services. The company was founded in 2013 and is based in Santa Clara, California.

Oklo Q2 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Through sweeping executive orders, the “One Big Beautiful Bill,” and the federal AI Action Plan, federal policy tailwinds now support faster licensing, fuel access, and deployment of Oklo’s advanced nuclear technology.
• Positive Sentiment: Oklo achieved key regulatory milestones, completing Phase 1 of its NRC pre-application readiness for the Aurora reactor, with its license operator topical report accepted for review and an early Q4 combined license application planned.
• Positive Sentiment: To finance its growth agenda, Oklo closed a marketed equity follow-on offering raising $460 million, ending Q2 with approximately $683 million in cash and marketable securities and reaffirming full-year operating cash burn guidance of $65–80 million.
• Positive Sentiment: Oklo broadened its strategic partnerships by naming KeyWit as lead constructor for its first INL powerhouse, signing an MOU with Korea Hydro & Nuclear Power, and launching a joint development agreement with Vertiv for integrated data center solutions.
• Positive Sentiment: Oklo’s differentiated fuel strategy secured 5 metric tons of DOE-awarded HALEU, leverages down-blended plutonium stocks that require no further enrichment, and includes partnerships with Centrus and Hexium to ensure resilient long-term supply.

Presentation

[Operator]

Good day, everyone, and welcome to Oakwood Second Quarter twenty twenty five Financial Results and Business Update Call. At this time, I would like to hand the call over to Mr. Sam Doane, Director of Investor Relations. Please go ahead, sir.

[Sam Doane, Director - IR at Oklo]

Thank you, operator. Good afternoon, and welcome, everyone, to Ocala's second quarter twenty twenty five earnings and company update call. I'm Sam Doan, Ocala's Director of Investor Relations. Joining me today are Jake DeWitt, Ocala's Co Founder and Chief Executive Officer and Craig Delmer, our Chief Financial Officer. Earlier today, following the close of markets, we released our second quarter twenty twenty five financial results.

[Sam Doane, Director - IR at Oklo]

Today's accompanying slide presentation is available on the Investor Relations section of our website. Before we begin, I'd like to remind everyone that today's discussion, including our prepared remarks and the Q and A session that follows, will include forward looking statements. These statements reflect our current views regarding trends, assumptions, risks, uncertainties and other factors that could cause actual results to differ materially from those discussed today. We encourage you to review the forward looking statements disclosure included in our supplemental slides. Additional details on relevant risk factors can also be found in our most recent filings with the SEC.

[Sam Doane, Director - IR at Oklo]

Please note that Ocala assumes no obligation to update any forward looking statements as a result of new information, future events or otherwise, except as required by law. With that, I'll now turn the call over to Jake DeWitt, Ocala's Co Founder and Chief Executive Officer. Jake?

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

Thanks, Sam. We're starting today's update by highlighting a wave of federal actions that are accelerating momentum behind advanced nuclear technologies and how Oclo is extremely well positioned to benefit. Over the past quarter, we've seen exceptional policy movement from sweeping executive orders to major legislation and national infrastructure strategies. Together, these actions reflect a coordinated federal push to speed up deployment of advanced nuclear technologies, strengthen domestic fuel supply chains and enhance U. S.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

Energy independence. For Oklo, this shift is highly beneficial. These aren't just favorable signals, they're concrete steps that support faster licensing, faster deployment and better project economics for first of a kind deployments. The next few slides will impact the most significant drivers, the executive orders, the one big beautiful bill and the federal AI action plan, all of which align directly with Oprah's licensing strategy, customer partnerships and long term cost advantage. The executive orders signed earlier this year mark a historic shift in federal policy toward advanced nuclear.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

These executive orders build on legislation from the last Congress and administration to clearly recognize civil nuclear energy as a national and economic security priority. That designation alone reshapes the policy landscape and unlocks access to key government assets, including alternative fuel materials that do not require further enrichment. When used in advanced reactors like Oglos, these material stockpiles could be made into fuel for more than three gigawatts of powerhouses. Just as important, these orders direct the DOE and NRC to move faster, streamlining regulatory reviews, reforming reactor testing and targeting three operational advanced reactors by July 2026. It's rare to see this level of alignment across permitting, fuel access and deployment.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

The executive orders go beyond signaling support. They include clear directives that align directly with OCOLA strategy. First, they revitalize the domestic nuclear fuel supply chain with a specific emphasis on recycling. OCOLA is one of the few fast reactor companies positioned to use down limited alternative fuel materials, which don't require enrichment. This fuel combined with the industry leading advances we are making in fuel recycling can give us a significant structural advantage.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

Second, the orders prioritize deployment of reactors at national security locations, including AI data centers and defense sites that aligns with where our customers are heading and where our small scalable powerhouse designs excel. Third, the orders mandate licensing reform, capping fees and setting an eighteen month review window for new reactors. That level of regulatory clarity and speed will accelerate OCA's path to market and strongly supports our combined license strategy. And finally, these orders direct DOE to accelerate reactor testing and target three operational advanced reactors by July 2026. That's an aggressive timeline and one OCOLA could qualify to help deliver on.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

The one big beautiful bill signed into law in July delivers a suite of policy wins that are directly aligned with OCOLA's business model. First, it preserves robust investment and production tax credits through 2,033 that then phase out through 02/1936. These credits improve our project economics and offer additional certainty for early stage deployment. Second, the bill strengthens the loan programs office, establishing the energy dominance financing program. This is important because it provides access to long term capital for projects that can't yet tap traditional debt markets like first of a kind deployments.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

Third, it accelerates NEPA, the National Environmental Policy Act reviews by setting strict deadlines for environmental assessments and impact statements. That helps reduce permitting delays and improves timeline confidence across our project portfolio. And finally, the bill allows for 100% bonus depreciation for assets that begin construction by 2029 and are in service by 02/1933. That gives us the ability to capture meaningful tax benefits as we build out fuel and manufacturing capabilities. The federal government's AI action plan also released in July as a major new dimension to the demand landscape for advanced nuclear.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

The plan calls for a rapid expansion of AI infrastructure, including high security data centers and resilient domestic energy systems to support them. It explicitly recognizes that achieving AI dominance requires building new sources of reliable dispatchable power like advanced nuclear reactors. Our powerhouses are uniquely suited for this use case, delivering distributed baseload power that can be colocated with mission critical AI workloads. The policy also calls for streamlining permitting, deregulation and expanded workforce training to support infrastructure deployment. As AI infrastructure scales, we expect both commercial and policy momentum behind advanced nuclear to continue building, and Oclo is focused on delivering power solutions that meet that need.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

With that context, I'll turn it over to Craig to walk through how our mission, model and design choices are translating into real execution advantages.

[R. Craig Bealmear, CFO at Oklo]

Thank you, Jake. Our mission at OPO has always been clear: to deliver clean, reliable and affordable energy at a global scale. Our cofounders started this company with the belief that advanced nuclear could play a transformative role in the world's energy future. That meant rethinking the entire model from how we design reactors to how we license, fuel and operate them. That vision continues to guide us today and is now clearly aligned with where policy, technology and customer demand are headed.

[R. Craig Bealmear, CFO at Oklo]

Moving to the next slide. Oplo's competitive edge comes from the intersection of three key strategies: our business model, our sizing philosophy and our technology. First, we build, own and operate our powerhouses, selling power under long term contracts. That creates recurring revenue and enables us to move more efficiently through the regulatory process. Second, our small scalable design allows us to deploy assets quickly, match customer demand in an incremental fashion and significantly tap into existing supply chains with factory fabrication, which reduces site complexity, cuts cost and supports faster rollout.

[R. Craig Bealmear, CFO at Oklo]

And third, our technology is based on proven liquid metal fast reactor designs with over four hundred reactor years of operating history behind it worldwide. That gives us a deep technical foundation with built in performance and safety benefits. Importantly, it enables us to move directly into commercialization without the need for a costly and time consuming demonstration plant. And finally, I really can't emphasize this point enough. It provides flexibility for Oklo to use fresh HALEU, recycled fuel and down blended alternative fuel for our powerhouses.

[R. Craig Bealmear, CFO at Oklo]

Together, these advantages position us to deploy at speed and scale with a structure built for long term growth. This past quarter, we made meaningful headway across all elements of our milestone framework, from licensing and project execution to field development, customer growth and strategic partnerships. We advanced our NRC engagement, completing Phase one pre application readiness and saw our licensed operator topical report formally accepted for review. We also took another step towards deployment at scale by selecting Queue It as our lead constructor for the first Aurora powerhouse at INL. On the customer front, we expanded our pipeline of commercial opportunities with both the Department of Defense and Liberty Energy and advanced our corporate development efforts through agreements with Korea Hydro and Nuclear Power and Virtis.

[R. Craig Bealmear, CFO at Oklo]

We also remain disciplined on spend, keeping our cash burn in line with expectations and ending the quarter with a strong balance sheet. I'll now hand it back to Jake to walk through the progress we made this quarter across our licensing project and commercial fronts. Jake?

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

Thanks, Craig. We continue to make meaningful progress this quarter across our regulatory priorities. We completed Phase one of the NRC readiness assessment for the AURORA INL combined license application. The NRC found no significant gaps that would bar acceptance for review, reinforcing our readiness to submit phase one of the application, which we expect to file in early q four after incorporating NRC feedback. We also had our license operator topical report accepted for review.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

This is an important part of our repeatable deployment strategy. It proposes licensing operators by Aurora technology rather than by site. Once approved, this report can be referenced in future applications, streamlining regulatory timelines and supporting scalable deployment. We're also seeing continued tailwinds across the regulatory landscape. The NRC recently accelerated TerraPower's review timeline by six months and introduced new fee reforms, reducing licensing costs through waivers and lower hourly rates.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

These changes further reinforce the momentum we're seeing and could benefit Ocla's licensing path going forward. And finally, recognizing that there's a lot to track on the regulatory front, we launched a public regulatory dashboard on our website that provides a transparent view of our progress across POWERHOUSE's fuel and radioisotope licensing, helping keep all stakeholders informed as we move forward. Fuel is one of the most important inputs for Advanced Nuclear, and it's one of the areas where Okwa has built a significant strategic advantage. Our design enables a differentiated fuel strategy built around three complementary sources, access to government stockpiles, commercial supply partnerships, and long term recycling capabilities. This approach provides greater flexibility, cost control and resilience than traditional fuel models.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

First, we were awarded five metric tons of high assay low enriched uranium or HALEU from the Department of Energy in 2019 for our first powerhouse at INL and we're uniquely positioned to utilize additional government fuel stockpiles made available under recent executive orders, including enriched uranium and plutonium based materials that don't require further enrichment. These stockpiles effectively waste materials that would otherwise be destined for costly disposal programs can instead be turned into a productive asset for clean energy by Oclo. Second, we're working with enrichers such as Centrus and Hexium to meet both near term and long term commercial hailing needs. Sentra supports early deployment with available domestic supply, while Hexium's next generation atomic vapor laser isotope separation or ABLAS enrichment technology could enable lower cost scalable production over time. And third, our fast reactors can use recovered nuclear material from both today's nuclear fleet and future advanced reactors, positioning us to recycle fuel over time and build a vertically integrated long term supply model.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

Together, these efforts form a comprehensive and resilient fuel strategy, one that supports near term deployment while building long term supply independence. As mentioned, fuel is a critical enabler for advanced nuclear deployment. That's especially true for HALEU, which comes with its own cost dynamics. Enrichment is measured in SWU or Separative Work Unit and so are its costs. Costs of enrichment are actually driven by both ore and enrichment process efficiency.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

Producing one kilogram of HALEU requires roughly 35 to 60 SWUs plus 30 to 50 kilograms of natural uranium depending on market conditions that can create a wide range of cost outcomes. That said, Oklo's design and business model position us well for this market. We benefit from needing consistent high volume fuel across many small units that matches well with enrichment module capacities and allows us to scale demand over time. Smaller cores also mean more units in the field creating steady annual uptake that supports long term supply agreements. We're also watching next generation enrichment closely.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

Laser based approaches like Atlas could unlock more cost effective batch friendly production over time. Our engagement with Hexium positions us to benefit as that innovation matures. In short, we're managing HALEU cost in the near term while building a supply model that reduces volatility and lowers long term fuel exposure. Oglow's fuel strategy isn't just well designed, it's being executed today to support rapid deployment and long term resilience. We've secured Halu from DOE for our first commercial unit, and our fast reactors are uniquely capable of using down blended uranium and plutonium based fuels, stockpiles that would otherwise be slated for disposal.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

With recent policy changes unlocking access, we can fuel dozens of early units from existing government material. We're We're also executing on commercial partnerships, Centris for long term HALEU and Hexium for long term innovation. Their Atlas technology could materially improve enrichment economics over time. And our fuel strategy doesn't stop at procurement. We're building toward recycling.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

Ocwen's reactors are designed to run on recovered fuel, supporting a closed fuel cycle and long term resilience. This isn't just a vision for the future. We're operationalizing the strategy now with a model designed to scale. There's a growing consensus that nuclear power is fundamental to the country's energy future, but historically, costs and time delays have held it back. Nuclear power is already the most land and material efficient energy source, but decades of legacy design, complex safety systems and custom built construction have driven up both costs and timelines.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

At Oklo, one of the reasons we're in a strong position today is the disciplined approach we've taken to design and cost engineering from the outset. Our liquid metal sodium cooled design enables inherent and passive safety, reducing the number of safety grade systems we need. That simplifies our architecture, streamlines regulatory views and lowers both capital and operating costs. We've also minimized the physical footprint of each powerhouse and designed around supply chain scalability, leveraging conventional components partners. In the next few slides, we'll talk through how these choices translate to faster, more cost effective deployment, starting with our supply chain and system architecture.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

This is where our design and supply chain strategy come together to deliver real execution benefits. Roughly 70% of our POWERHOUSE components are sourced from non nuclear supply chains, industrials, energy and chemicals, for example. These sectors offer mature, scalable manufacturing capability that we can tap into today at lower cost and with shorter lead times than traditional nuclear fabrication. This isn't just about lowering cost, it's about reducing schedule risk as well. By designing around standardized shippable components like the reactor module, steam generators and power conversion system, we simplify installation, support parallel builds and minimize on-site construction complexity.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

We've also reduced the number of safety grade systems by designing for inherent and passive safety that helps streamline procurement and reduces the regulatory burden on our supply chain. Our preferred supply agreement with Siemens Energy is a great example of this strategy in action, and we continue to build out that ecosystem with more partnerships to come as those deals reach commercial readiness. These decisions help us scale faster, deliver sooner and meet the needs of customers who value both certainty and speed. We're also pleased to announce that we selected KeyWit as the lead constructor for the Aurora INL Powerhouse. KeyWit is one of the most experienced engineering and construction firms in the country with deep expertise in complex energy infrastructure, including nuclear projects.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

Their capabilities go beyond construction. They also bring integrated procurement as well as asset and component fabrication capabilities that align well with our modular repeatable design approach. We've entered into a master services agreement with KeyWit intended to support the full scope of design, procurement and construction for the Aurora INL project. Preconstruction activities are scheduled to begin this quarter, including site mobilization, early procurement and groundwork. We're targeting a preconstruction groundbreaking in late Q3.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

This partnership and these efforts help ensure we're positioned to deliver our first powerhouse on a realistic executable schedule with commercial operations targeted between late twenty twenty seven and early twenty twenty eight. In parallel, Atomic Alchemy, our radioisotope business, has also begun site characterization work on its commercial isotope production facility at INL and submitted its materials license application to the NRC for its demonstration facility, continuing momentum on facility development for domestic radioisotope production. The demonstration facility will also produce revenue generating isotopes, marking an early step toward commercial operations. We also signed a Memorandum of Understanding with Korea Hydro and Nuclear Power, one of the largest and most experienced nuclear operators and builders in the world. Agreement The is focused on exploring opportunities to collaborate across a range of areas, including project development, licensing, manufacturing and supply chain coordination.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

This partnership reflects a shared interest in deploying advanced reactors globally and in continuing to drive innovation across the nuclear value chain. It also aligns with our broader strategy of forming international partnerships that can support commercialization and accelerate deployment. As part of our work with data center customers, we also announced a joint development agreement with Vertiv, a leader in data center infrastructure. The partnership focuses on co developing integrated power and cooling solutions that take advantage of our ability to co locate power generation and compute infrastructure. With Vertiv, we're building smarter nuclear power systems for compute intensive infrastructure that could be a huge win for our customers.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

Pertiv will use steam from our powerhouses to drive chillers, improving the overall energy efficiency of the data center. This helps reduce total energy costs and allows customers to streamline infrastructure with a single integrated solution. It's a strong example of how we're working directly with customers and infrastructure partners to deliver tailored solutions at the core of their operations, not just selling power, but operating integrated value where it matters most. We continue to have active discussions with other commercial partners and suppliers to round out our deployment ecosystem, ensuring we can deliver scalable energy infrastructure with speed, reliability and efficiency. With that, I'll hand it over to Craig to expand on our commercial momentum and walk through the financial and customer updates from the quarter.

[R. Craig Bealmear, CFO at Oklo]

Thanks, Jake. One of the partnerships we're very excited to highlight this quarter is our work with Liberty Energy. Liberty was an early investor in Oaklow while we were still a private company, and former CEO, Chris Wright, served on our Board prior to his appointment as The United States Secretary of Energy. We are excited that there continue to be opportunities to collaborate with Liberty in a meaningful way. This partnership is designed to solve a very real customer challenge, how to access reliable power now with a clear path to zero carbon baseload power over time.

[R. Craig Bealmear, CFO at Oklo]

Together, we have the potential to offer a fully integrated solution that starts with Liberty's gas generation and load management platform that can transition to Oclo's nuclear powerhouses as they come online, providing a faster path to clean energy. This is a strong validation of Oclo's business model. It demonstrates how our powerhouses can integrate with existing infrastructure to deliver a phased approach that's flexible, financeable and customer aligned. Customers get the uninterrupted energy today and a long term certainty around clean baseload power. And together, we're building a joint commercial platform designed to scale.

[R. Craig Bealmear, CFO at Oklo]

We are finalizing the commercial structure of the partnership and believe this is a scalable blueprint for high power demand sectors that prioritize reliability and long term energy certainty. We were also selected by the U. S. Air Force as the intended awardee for what would be a first advanced vision deployment at a U. S.

[R. Craig Bealmear, CFO at Oklo]

Military installation. Under the terms of the Notice of Intent to Award, or NODA, Oakla was identified as the successful awardee to design, construct, own and operate a powerhouse that would deliver both electricity and heat under a long term purchase agreement. This represents a major milestone, both for OCLO and for the broader advanced nuclear sector. It reflects growing recognition of the role nuclear power can play in national security and energy resilience, particularly at distributed and remote sites where reliable power is mission critical. OCLO is actively working with the U.

[R. Craig Bealmear, CFO at Oklo]

S. Air Force and Defense Logistics Agency, or DLA, on next steps, and we look forward to providing further updates as the process advances. I will now provide a summary of our financials. Oclo's second quarter operating loss was $28,000,000 inclusive of non cash stock based compensation expense of 11,400,000.0 OCA's loss before income taxes in the second quarter was $24,300,000 which reflects our operating loss adjusted for net interest income of $3,800,000,000 On a year to date basis, when adjusting for noncash stock based compensation charges, changes to working capital and deferred income tax benefits, the cash used in operating activities equates to 30,700,000 We still expect on a full year basis cash used in operating activities to be within the guided range of 65,000,000 to $80,000,000 that we disclosed at the start of this year. In addition, based on our earlier discussion points in this company update, we now see an opportunity to potentially accelerate a modest CapEx investments from 2026 into 2025, which could include advancing deployment activities at INL before year end, progressing fuel supply and fabrication activities in response to the executive orders and other activities to deploy powerhouses beyond INL.

[R. Craig Bealmear, CFO at Oklo]

We also completed a successful marketed first follow on equity transaction on June 12, generating $460,000,000 in gross proceeds, providing the company with additional cash on hand to deliver our enhanced growth agenda. And as a result of the capital raise, we ended second quarter with approximately $683,000,000 in cash and marketable securities on our balance sheet. To wrap up, I want to briefly highlight why we believe Okla is one of the most compelling opportunities in the advanced nuclear industry. We're deploying proven fast reactor technology in a compact, scalable format designed to reduce cost, complexity and deployment timelines. We are vertically integrated across power generation, fuel recycling and radioisotopes, unlocking multiple high value revenue streams.

[R. Craig Bealmear, CFO at Oklo]

Our business model is built around long term power sales, delivering recurring revenue, margin visibility and customer stickiness. We are pursuing superior economics through standardized design, repeatable deployment and recycled fuel that drives long term capital efficiency and competitive levelized cost of energy. Our 14 gigawatt pipeline spans data centers, defense, utility and industrial customers, reflecting strong and growing demand. And we've developed a streamlined licensing strategy aligned with our business model backed by regulatory expertise, a repeatable COLA path and accelerating federal tailwinds. At its core, Oclo is more than a technology company.

[R. Craig Bealmear, CFO at Oklo]

We're building an energy platform to serve the world's next era of growth. Thank you for your time. Operator, we are now ready to take questions.

[Operator]

Thank you, sir. The first question today comes from Jeffrey Campbell from Seaport Research Partners.

[Jeffrey Campbell, Senior Analyst at Seaport Research Partners]

Good evening and congratulations on all the multifaceted progress. Regarding SNP pressurized water reactor fuel, Current law appears to dictate that the DOE cannot take title to utility spent fuel until a permanent disposal site is designated. What's your take on how this might be amended to support OCO's future recycling effort? And I asked this question in the atmosphere of the significant nuclear power push that's been coming from the executive orders and the big deal.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

Yeah. Thanks, Jeff. It's a good question. So as the law stands and the policy stands, you know, there's nothing that gets in the way of us being able to work with, you utilities and the government to take the material, and actually recycle it. The main challenges are generally speaking having the infrastructure facility to do it.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

There are some, you know, logistical dynamics about what's the best and most efficient path, given kind of the nature of the situation, which is that, you know, by definition, the Department of Energy is supposed to be disposing of this material in a repository that is not happening. So the Department of Energy is reimbursing effectively the utilities for holding a material on-site because they failed to meet their duties under the the Nuclear Waste Policy Act. That said, you know, we have a great opportunity to help address a lot of that. And it kinda hits on two fronts. Right?

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

Like, the biggest thing for us is it allows us to deal with fuel supplies. I mean, used fuel is effectively 90 plus percent unused fuel. And with recycling, you can actually tap into and harness that material and use it. That's a massive reserve of material. And very importantly, advanced recycling techniques like what we're doing, coupled with a fast reactor like what we're doing, enable you to enable you to do that in a very cost transformative way.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

The paradigm that has largely existed in the academic sphere has suggested nuclear recycling is economically challenging. That's maybe arguably has some legs to stand on in the era of much lower fuel costs and when you're trying to produce a fuel that today's light water reactors can use, which requires a much higher purity fuel form. That's not the case with the fast reactor. You can tolerate a much lower sort of purity fuel form. In other words, you can have all the transuranics mixed up together and commingled.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

The implication then is therefore a lower cost facility, which then you're amortizing a lower cost over more more fuel throughput, which means the actual fuel produced from recycling will be a much lower cost even, we think, than fresh fuel, like, considerably less. So that's a pretty attractive paradigm for that alone, especially given that when we look at how do you meet the order book and how do you scale into the opportunity, tapping into recycling is a massive upside. But it also helps change the paradigm around waste management considerably. Right? So you're taking the material, you're reducing volume substantially.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

You still produce, no matter what you do, some high level radioactive waste that will need some form of disposition. But you change the characteristics of it radically in recycling. Generally, you shorten the half life to be something that decays away in several hundreds of years, not hundreds of thousands of years. And you change the nature of the form factor because you reduce the volume, but you can also then coalloy these fission products to things that you need to dispose of with things like glasses or metals or things like that, all of which open up much more different well, you have a just a much larger diverse set of opportunities and options for disposal and disposition, which is great because you can create a much more, I would say, a community oriented kind of, consent based citing approach for how you dispose of this, not to mention interim storage becomes a lot more palatable because of nature of the material and having less volume. That said, some utilities have a different push and and pull to get this done sooner than later.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

Others are sort of taking a little bit of a more, you know, I would say, conservative approach, waiting for some of these infrastructure plays to come out to bear. In other words, let us build you know, waiting for us to build and start operating before they're gonna wanna jump into something. But we're finding some constructive engagement with folks to figure out how do you actually find the optimal path to move this material over to us to then be able to fuel it and find the right sort of pathway that manages the different stakeholders, right, and and from a risk and sort of title perspective in the best way. There's a reality that what we're doing is also a pretty considerable service to managing these fuel to the government who has the title to dispose of it for the Nuclear Waste Policy Act, and therefore, has some benefits that are pretty helpful there. Not to mention, there's some other things we can do.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

Right? We can take some of those fission products that will be disposed of. There are some industrial medical applications for some of those. And I think, you know, another kind of key part of this is the fact that really reducing the volume really changes how we think about this stuff. And then I think from the utility side, the most interesting fuel for us to start with is actually the freshest fuel out of the reactor.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

Other words, the stuff that's in the pools today, not the stuff in the cask. That stuff's also interesting, but if we had to pick and choose, we'd pick the tools stuff first, which is great because it's where the most kind of constrained pressure is in storage. So all in all, like, I actually think that on the heels of the executive order, which make it clear that this is going to be a direction that we move into, it builds on work that came from the Biden administration. And before that, from Trump one, we find that we're in a spot, you know, to act you know, to be executing fully and to actually developing out the right sort of plan to site, locate, you know, build this facility and start receiving and and actually recycling material and producing fuel. All that does take time.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

We've been at the, you know, pre application and site selection work for a long time here, it's but all lining up for us to be kind of accelerating to move a little bit faster, especially given how how much it unburdens us on the fuel side.

[Jeffrey Campbell, Senior Analyst at Seaport Research Partners]

No. That's great color. And we could also add that the taxpayers are currently paying for the storage of the seven fields. There might be an argument there as if there's any resistance to moving that waste towards Oklo. I just wanted to ask you, sticking with fuels, can you provide some color on the recently announced Atlas effort?

[Jeffrey Campbell, Senior Analyst at Seaport Research Partners]

It appears Acxiom is most focused on Atlas for lithium to produce tritium at this time. So I was interested to hear how the shift to uranium might be accomplished. I mean, I'm aware of the history of that one.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

Yeah.

[Jeffrey Campbell, Senior Analyst at Seaport Research Partners]

I mean, what specific to Hexane? How how we move them to uranium?

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

Yeah. I'll just give you a little more color for the for everyone's benefit. And just talking about Avolice, it's atomic vapor laser isotope separation. It's one of the more promising techniques for isotope separation using some pretty cool technology. I mean, like, combine lasers, you know, isotope separation.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

It's it's pretty cool stuff. But, it has significant improvements in efficiency, cost, and operational characteristics that, generally speaking, suggest a lower levelized cost of, separate of work unit or levelized cost of enrichment unit, than centrifuges do in the current paradigm, which has significant upside for reducing the overall cost of fuel delivered to our system. The techniques used for Avoleth, can be tuned for a number of different isotopes. And, Hexium, you know, initially was starting to focus on looking at some of the work with lithium just given some of the dynamics that they saw with opportunities for that, But they also saw the opportunities in the part of the reason that bringing them in markets, and help them sort of, you know, move that technology forward. They come out of the same you know, in many ways, the origination of a lot of this technology was focused on investment capabilities for things like uranium.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

So the ability to use it for that, as well as some other, by the way, stable isotopes that are relevant to, the medical isotopes, you know, part of the business that we have. They all kind of are actually complementary. So that's part of how we're looking at these partnerships is the ability to produce isotopes in high purity forms for different use cases. Obviously, the big attractive one is enriched uranium for fuel, but there's also important aspects about producing higher quality targets with enriched isotopes for radiation and atomic alchemy facilities or even just selling the products themselves. So that's an area where we continue to be engaged and focused on and finding the right ways to partner and sell and kind of deepen the partnerships we have in those spaces.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

Again, sort of at the high level, enrichment is, I think, at this place where we're for the first time, being a pretty significant let me rephrase this. First time in a little while, probably in the last twenty years, that we're seeing a pretty significant pressure of new technology coming forward because of, you know, technology r and d, coupling with an opportunity in the market with this massive demand for new enrichment capacity that's bringing forward new and more innovative approaches that have the potential to significantly change cost curves. Atlas has a long history behind it, and I would argue the large largely the reasons it didn't get commercialized on the first go were the market was pretty soft. We were in demand back in the nineties. It wasn't clear if those investments were gonna be worthwhile.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

And then the other factor is we've gotten a lot better at laser techniques, like, lot better technologically in the in the last thirty, you know, forty thirty to forty years. So it's really changed the paradigm to make it an interesting time now for this, which is why we're at opportunity, while also continuing to engage with folks who are, you know, working with more established, centrifuge technologies like Centrus.

[Jeffrey Campbell, Senior Analyst at Seaport Research Partners]

Great. Thank you.

[Operator]

The next question comes from Sharif Almagrabi from BTIG.

[Sherif Elmaghrabi, VP - Equity Research at BTIG]

Hey, thanks for taking my questions. On the deal with Liberty, I imagine some of those customers are members of that 14 gigawatt pipeline that you've got. But it's interesting on the revenue side, could Aqua start recognizing revenues sooner, say, when those projects are seeing gas generating power from gas?

[R. Craig Bealmear, CFO at Oklo]

Yes, Bruce, I can take that. So it's still early days for how we turn that agreement into an actual set of commercial terms and conditions with our customers, and I'm not really at liberty to no pun intended to say who we're progressing those discussions with. But yes, you're correct. If there was a mechanism whereby we participated in early power sales and that could potentially lead to revenue recognition for the company.

[Sherif Elmaghrabi, VP - Equity Research at BTIG]

Okay. Interesting. Thank you for that. And Jake, one more. In your prepared remarks, you mentioned that you guys have one of the only reactors designs that can run on down blended fuel.

[Sherif Elmaghrabi, VP - Equity Research at BTIG]

Can you just speak to why that is? I thought that was pretty interesting.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

Yeah. It's a great question. I I think it's it kind of has a bunch of details into it that, obviously, I can I like to get into? But for time's sake, I'll be a little brief. There's kind of a couple ways to look at it.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

Right? So down blended, high enriched uranium that's fresh, highly enriched uranium, by and large, is probably gonna be useful for most everyone. That said, there's not a lot of that material that's coming available. The material we're seeing is typically stuff that's either going to have been rejected for prior use because of some level of impurity contamination, or because it was already irradiated in reactors. In both cases, especially in the latter, you build up isotopes.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

In in the nuclear space, we call those the isotopic vectors. But, isotopes of uranium that are not conducive to use in reactors that use moderators and slow the neutrons down, think pretty much any reactor that uses triso fuel or graphite moderators or water's equivalent, they can't really use those very well without significant neutron penalties because of the nature of some of those isotopes. Whereas in a fast spectrum reactor, it's really not that significant, if even a penalty at all, so you can handle those materials. Furthermore, the other aspect that's interesting here is another source of this material is the excess plutonium inventories that for the president's executive orders are being made available to industry. That's a sizable opportunity that's honestly, I think, kind of hard to overstate because of the potential implications it has.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

We're talking about, you know, that material could be made into hundreds of thousands of kilograms of HALEU equivalent material. But the nature of that material is heavily biased towards, I would call it, a more streamlined usage and designed to accommodate in fast neutron reactors. And the reality gets into a lot of details, but plutonium based fuels have a long history of sort of their usage in fast reactors. Also have a usage in water cooled reactors and can be used, but there doesn't exist the fuel fabrication infrastructure to support that. And it's a lot more complicated from a reactor design.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

Let me rephrase it. It can be a lot more complicating to the core design and reactor design from what we do today. The French obviously do this. The Japanese have done it. It's solvable, but it introduces a change that isn't exactly the most isn't one that, I'd say, today's operating plans are rushing into necessarily, given that fresh, like, LEU is a is a superior fuel form.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

And and part of the reason is just because plutonium has a very different it's much more absorbing of neutrons, both to fission and to just capture than uranium two thirty five is. It's a slow energy spectrum. It's also in the higher energy spectrum, but that delta causes a lot of localized kind of dynamics that you really have to account for and manage against in a light water reactor. Again, doable. But in a fast reactor, it's just, frankly, easier to achieve and accommodate.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

And also the fuel fabrication for plutonium bearing materials using the tonic fuel, which is like what we use, can just be done in a way that from a facility design and management perspective, generally speaking, has just simpler considerations than around, for for example, fabricating into oxide fuel for light water reactors. So there's a lot of nuance around it, but it's one of the key things that's pretty attractive and differentiating for us. And we see those materials as being, pretty valuable and the opportunity to sort of bridge us. You know, you use those materials in the near term that then help us alleviate the demand needs for HALEU in the very near term, which then gives us a lot more grace as those supply chains build up so that we can start, you know, shipping fuel and reactors more quickly as a result of that. So that's one of the things we're working towards and excited about on the heels of those executive orders.

[Sherif Elmaghrabi, VP - Equity Research at BTIG]

Nuance is helpful. Thanks, Jake.

[Operator]

Jake. Jed Dorsheimer from William Blair has the next question.

[Jed Dorsheimer, Group Head–Energy & Power Technologies at William Blair]

Thanks for all the details and thanks for letting me ask a question. Jake, first question for you is just as you look at your pipeline, and as you look at the opportunities conversations, I'm curious how you're thinking about the opportunities behind the meter versus front of the meter. Is, there seems actually to be almost more excitement behind the meter, you know, around data center build outs. And so I'm just curious how you're how you would think of the power generation, domestically, split between those two? Then I have a follow-up.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

It's a great question. And what we see is it's evolving pretty considerably and kind of just goes at the pace of different opportunities and different announcements of kind of, you know, everything from policy to build out to actual projects. So I think what we're finding is is on paper, I would say the bias is is, you know, majority focused on on behind the meter applications and opportunities. But the practical reality of getting to that seems to focus probably more near term on some front of the meter deployments before that happens. And what I mean by that is I think it it depends.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

Right? Because we are in in conversations, and we're talking about literally have the the nature of both of those happening. It's just that delivering kind of the right suite, which is part of why the partnership with Liberty is so important, delivering the right suite of options to deliver power at that reliability and availability rate, you know, I'm confident that in time, you know, nuclear can demonstrate and validate it and do that. But to start with, like, it's just a little bit more economically challenging to do it on a pure nuclear solution versus having a diversified fuel source. So long story short, you know, I think we're finding that in many ways, the behind the meter is more elegant on paper and makes a lot more sense.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

But in some of the near term actual deployment realities and implications, being grid tied and, you know, connected to it is helpful. Now I'm I'm I I'm sorry, Jed. I'm probably overinterpreting towards more when I say behind the meter, I mean, I'm saying truly behind the meter with, you know, like, minimal expectation of the grid. I think where you're behind the meter and you're connected to the grid, that that is that is kind of a near probably that near midterm sweet spot while all these things evolve. But I do think there's, generally speaking, some degree of preference there, but we also see, in some cases, the front of the meter has some high value in certain markets.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

But I I feel like I'm just kind of giving you a long rambling answer to say we're seeing it's a mix, and it varies heavily by state, by location, by customer. But it does feel like probably the weight of it prefers a behind the meter offering in time.

[Jed Dorsheimer, Group Head–Energy & Power Technologies at William Blair]

Yeah. You hit on it. I mean, I think the hybrid was really what I was getting after. It seems to be where most of the demand is is developing right now around SMR. That's why I was asking.

[Jed Dorsheimer, Group Head–Energy & Power Technologies at William Blair]

As my follow-up, just shifting gears on the radiopharma market, it's about a $30,000,000,000 opportunity. I'm just curious, is there a and growing, I should say. As you look at the isolation of particular isotopes, obviously, small quantities can sell for a tremendous amount of money. Are there specific isotopes that you have an inherent advantage or moat around given your processing capability that you're going to be focused on? I'm just curious as those might you know, be specific to certain drugs or, you know, applications.

[Jed Dorsheimer, Group Head–Energy & Power Technologies at William Blair]

Is it any more details around that would be helpful. Thanks.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

Yeah. I love it. It's awesome. And we have there's so much more that will be unfolding going forward on this because you are you are nailing exactly it, which is how do we prioritize select and where are the ones we have sort of unique advantages into. So starting at a high level, like, what we see is there are some near term opportunities on, a couple sort of isotopes that we're going through looking at what those markets and, like, and kind of the supply chain pieces are to to prioritize as part of some of our pilot efforts that are happening out in Idaho right now.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

But then from there, we see a pretty significant scaling advantage, and we're looking at ways to, you know, get engaged in and possibly even opportunities to maybe invest into the supply chain or at least partner in the supply chain to sort of enhance what we see as some of the most that we we we can build and have, in terms of some of the production, of either sourcing of stable isotopes or just roughly targets. But I think at the at scale so I'm kinda giving you a little bit of an answer of come back again because we're gonna have a lot more as it comes. But I think at scale, the other thing we see is that, you know, part of the angle of why we're attracted to Atomic Alchemy, it it's kind of twofold integration. One is the benefits of being able to pull stuff out from recycling where we do have some isotopes that are gonna be made in bulk quantities, things like strontium 90 in particular. But there's a bunch of others that have, you know, interesting potential industrial applications, that are you know, could be unlocked at scale in a voluminous way based on what recycling can tap into, which is a pretty cool space to be in.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

So there's that kind of piece. And there's some a lot of those isotopes are generally gonna be longer lived isotopes that are held up in the waste because most of this waste has been decaying for some time. It is that part and unlocking some of the things you can do with those that, right now, frankly, don't really exist. And that's one of the hard things the cool things about this is some of the stuff we're gonna pull out I'm gonna be able to pull out. People haven't even bothered to look into the use of it because it's just not available to even research with or study very much, so they don't prioritize it.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

But we expect this first to nucleate an entirely different ecosystem and philosophy around research and development, around different isotopic uses because of all of a sudden it becoming available. And then additionally, there's the direct production kind of on a specific basis of radiating targets and producing that material, which is part of what we were attracted to Atomic Alchemy's Viper reactor design to do given that we see it as one of the sort of most cost attractive options we've ever seen, where it's kind of a I'm gonna use a very blunt kind of analogy. It's not maybe the best, but, like, instead of building designing and building a custom Formula One race car to produce some of these isotopes that's extremely expensive but can produce some these isotopes, And the cost of those isotopes actually can justify doing so. So it's fun from a technical perspective for sure. It makes the deployment development really, really hard on those, which is why a lot of these reactors haven't been built.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

Instead, Atomic Alchemy took an approach saying, hey. Let's just build, a Ford f one fifty version of a reactor that, does the job. Maybe it's not as fast as some of these other things, but it's totally buildable, suppliable today, and you can build a lot more of them and just have a make neutrons more cheaply than, you know, maybe anything else to irradiate these materials and produce them. So that then allows us to tap into those known isotope fields with a potential vector and being more cost competitive than than what exists or just lower cost of production, frankly, than what exists. That said, I think those markets seem to be, in many ways today, in an inelastic state of demand.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

So, you just keep supplying, they're gonna take as much as you get. But there's also the case where having that capacity and that flexibility and that versatility of different isotopes, can actually open the door to do more things. So I'm kinda giving you a non answer, Jed, but it's probably because we we'll have more to talk about there soon. But, also, part of this is actually looking at what this opens the door to incentivize and curate an ecosystem that that seems more broadly out of the mindset of abundance of different isotopes that right now people can't even think about using. So there's the usual players, but I think there's a lot more that could be coming in the horizon because now we can focus on how we can actually produce those, and and not be as scarcity limited as that as we have been.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

So, yeah, I think it's, like you said in your comments, it's that size market and I think growing. I think that's one of the things we see as a way to unlock even more growth is by sort of bolstering production and availability of a much more diverse set of radioisotopes. But then we'll be getting more use cases of them because people will bother to actually invest and use them, which you can think about creates a really cool ecosystem to be a pretty significant part of. So that that's part of how we see that playing out.

[Jed Dorsheimer, Group Head–Energy & Power Technologies at William Blair]

Sounds good. I'll jump back in queue. Thank you.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

You.

[Operator]

The next question is from Ryan Pfingst from B. Riley Securities.

[Ryan Pfingst, Senior Research Analyst at B. Riley Securities]

Hey, guys. Thanks for taking my questions. First, could you give us a sense of potential timing around IELTSON project milestones or maybe just how licensing and development might differ for projects located on military or defense installations like that one?

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

Yeah. It's it's a fascinating question because the, the the reality is all shifted a lot on the heels of the executive orders being signed.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

Obviously, a strong focus on those was, you know, leveraging defense use cases and decorating defense use cases. This is a great one of those. But it does set the stage for some interesting things to be supportive of of either, you know, more streamlined or potentially, you know, I would say more, like, focused and therefore potentially faster reviews on the environmental and citing aspects of this. You know, the air force has pursued through the IELTSON project and, you know, they wanted this. They want us to get an RC license for this plan.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

So that's the general plan. Of course, they also have the capability of the defense department to authorize on their own. So should that be something they wanna do for other deployments or in different cases or even do different things, they they have that optionality, which is kinda cool. That said, the nature of that facility and working in Alaska is, of course, interesting, and unique. And so we're going through the aspects of of actually getting all of that work in motion and the siding work to then sort of come forward with what the timelines and the various details of that are gonna look like, with respect to, like, application submission timelines, when to expect to break ground, do all that kind of stuff.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

Given that, you know, you have a shortened construction window, given all of those factors, it's obviously very seasonal. It's like, we have to kinda play with and and optimize against those. So what we expect at the moment is is going forward, we'll be able to get into the more detailed site work and everything we would need to do really next summer, and then, you know, the schedules are kinda anchoring accordingly from there. But, it's all it's all actively developing as part of this path. And I think the Air Force has said this a couple times in a couple ways, but I think of it as, you know, the pathfinder aspect of this.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

They see huge opportunity for what nuclear can do to bolster their mission capabilities, and I think what they wanna see is how we can, or what they wanna do is be able to work with industry to find ways to deliver that in different models of what that needs to look like. You one of the things you're constrained by anytime you're working with the government is their contracting structures and mechanisms. And so, you know, also, in addition, it's working with those and finding the right pathways for that to do the things that they want to see happen. You know, a heavy amount of focus from Defense Energy in the past has been using defense land to build renewable projects that are effectively shipping off the grid. Maybe the defense department's benefiting some from that, but, this is different.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

Right? This is internal facing and priority. So prioritized, I mean so it's cool. Like, it's it's a little different, but pretty cool, but also opens the door for just the the combination of different approaches of how we how we, how we optimize that. And, additionally, it's not just electricity they're buying.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

There's a lot of steam that they're buying from our plants too. So what that means is if you think about what a nuclear system is, it's primarily producing heat. Typically, you produce that you turn that heat into electricity. But in this case, you you you siphon off some of that heat before it gets turned into electricity and actually use it to heat infrastructure, And that has obviously a lot of value for a lot of reasons. So, especially up in Alaska.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

So it's a it's a little bit of a it's it's it's developing, we're working through all those pieces, and we'll continue to keep sort of, you know, the market updated as that progresses. But that's that's how it's setting basically, it's progressing and how it's setting up now.

[Ryan Pfingst, Senior Research Analyst at B. Riley Securities]

Yeah. I appreciate that, Jake. And and then for my second question, shifting away from the federal side to commercial customers, how should we think about LOI to order conversion at this stage?

[Ryan Pfingst, Senior Research Analyst at B. Riley Securities]

Does the Liberty collaboration and some of the other partnership announcements you've made recently accelerate when we might see a firm order with with one of the data center customers that's in your pipeline today?

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

Yeah. I'll, I'll start with a little bit and then, ask Greg to jump in as well. But, I think in general, it's it's it's it's supportive in opening up different apertures of the conversations. But as we've said, generally in the past, you know, what we find is is is the demand isn't going anywhere.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

The opportunity in the market is pretty significant. The the details are then figuring out the right ways to constructively build long and deep partnerships that really manage kind of the various aspects of these projects and the deployment realities in a much more sustainable and scalable way than just rushing into a PPA to make it sound kind of, you know, a little bit simplistic in how I answer that. But that is kind of the reality, which is, you know, we continue to keep these conversations at pace, we continue to find a lot of enthusiasm and excitement. It really just seems to be, as we kind of progress these things, you know, the the opportunity space of what's possible in terms of deepening and strengthening ties is looking at all parts of sort of ecosystem to be supportive of our success. And also, honestly, candidly, the success of the nuclear industry as a whole.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

And we're, you know, we're we're excited about the positioning we have to kind of help lean into that. But yeah. I mean, on the Liberty side, it does help set the stage for doing some things a little more, I would say, well, it's a little different cadence and tempo in some cases where you have that gas infrastructure. And what we continue to see is that the focus tends towards, you know, nuclear is a long term solution, gas having a lot of opportunity in the near term. And really a cool thing for us is we've been kind of pioneers in that bridging gas and nuclear on a new on a new capacity, new deploy, perspective.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

And, I think we're, you know, seeing how that kind of unlocks thinking about different sites and different cadencing in different ways. But yeah. So I'd say, you know, it does help. It kinda changes some of the how we kind of cadence and tempo some of these customer discussions. But at the same time, we're still kinda focused on the macro, trying to make the most of the opportunity, if that makes sense, through through kind of the right partnerships.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

I talked for a long time, though. Craig can add some more detail on Coe.

[R. Craig Bealmear, CFO at Oklo]

Yeah.

[R. Craig Bealmear, CFO at Oklo]

I would just say, you know, partnerships take time. And because we're trying to do things beyond just, you know, optimizing on a PPA price, you know, I think it'll take us a little bit longer to get things in place, but for all the right reasons. Our business development team stays quite busy and is traveling quite a bit and they're keeping the legal and finance team quite busy as well. So I think we're moving things. And it also a little bit goes back to Jed's earlier question around, I think it's safe to say that the interest in front of the meter feels like it's grown a lot in the last twelve months.

[R. Craig Bealmear, CFO at Oklo]

And I think that's also where we're trying to be customer responsive as we progress those customer discussions. As I think I've said, Ryan probably on earlier calls, you know, we're, you know, we're entertaining, you know, prepayments like what we do with Equinix, things we might do at the asset level investment. And so there's a whole host of avenues of things that we're exploring with our customer base at the moment.

[Ryan Pfingst, Senior Research Analyst at B. Riley Securities]

Great. I appreciate all that detail. I'll turn it back.

[Operator]

The next question comes from Derek Soderbergh from Cantor Fitzgerald.

[Derek Soderberg, Director - Senior Equity Research Analyst at Cantor Fitzgerald]

Yeah. Hey, guys. Thanks for taking the questions. And my congrats as well on the capital raise. I'll just keep it up one question here, Jake.

[Derek Soderberg, Director - Senior Equity Research Analyst at Cantor Fitzgerald]

In the prepared remarks, you mentioned TerraPower's regulatory timeline. I think you said it's set up by six months. I was wondering what the reason for that was? What did that entail? And are you already seeing some tangible benefits from the executive orders on regulatory timelines?

[Derek Soderberg, Director - Senior Equity Research Analyst at Cantor Fitzgerald]

Could OCO see a sizable timeline shift forward as well? Thanks.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

Yes, appreciate the question. I think that's one of the exciting things as we've seen the NRC be quite responsive and and take an approach in lines that reflects clearly what the, policy objectives and goals of this administration are to move those things more quickly based on what they did with Therapower. And we're similar seeing benefits. You know, it's interesting when when we went public, when you kind of had a review path of twenty four to thirty six months, so then you advance that capping things, you know, in in the different contingencies around the twenty five month period to now saying to eighteen months, like, it's, it's pretty great. That's helpful.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

That said, you know, there's still, I think, various things we're and and and what we're seeing in the pre application space, I think, is constructive to those things. I think it's been interesting because we went through phase one readiness that helped the NRC map out, especially in the wake of kind of where things are now, how they would plan to do the review, make sure they have all the information they need to do it, which kind of amplifies, in some ways, the importance of those. We're pretty encouraged as well that we had no, you know, sort of significant gaps that were needed there. That's a big win for for us and for the industry, I think. So at the end of the day, we feel pretty good about where that positions us on that part.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

Still a lot more work to do, but that's good. And then looking at, you know, the next phase and phase two and that progressing, I mean, I think it'll be very clearly aligned to say, okay. Let's make sure we have a very strong, like, angle on how we get through the actual licensing steps and process in that eighteen month window, which is just great for everybody. Right? Because it accelerates things for us.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

There there are other aspects at play, though. We have to be mindful of just the realities, that can perhaps raise the bar a little bit on the front end of what's, you know, on the acceptance side and how the NRC plans. We wanna be mindful of that, obviously, in part of why we're doing readiness assessments is to manage that. But that can be something that affects those timelines and how we think about making sure we're submitting something that's, you know, in the best sort of position for everybody. And then, additionally, one of the things that we're pretty intrigued by is how the EOs are setting the stage for completely different licensing pathways above the enterprise, which is pretty powerful given that there's still a lot of moving parts at the NRC front.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

But opening the door for I think it might be doable under Department of Energy authorization that could accelerate timelines considerably, for a number of things, That's pretty dang exciting too. So we're engaging in those to look at ways that might accelerate our ability to bring something online. There is a path potentially to having a a a regulatory review done under the Department of Energy, build the plant, turn it on, and then after you've kinda done that initial work, you can transition it to the facility. You know, these are things that, you know, haven't really been done before, but that's kind of the beautiful thing about today. We're actually reinvigorating the whole ecosystem to think outside the boxes and the shelves that we as an industry have thought in for the last, candidly, fifty plus years.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

So now there's, like, so much more potential on the table about, hey. What could we do? What could this look like? Like, there's no reason that can't necessarily be done. Maybe that's the faster way to get some first plants built.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

Maybe that's the faster way to get through some like, first time licensing challenges and hurdles. So, you know, there's not a clear answer yet because we're still, you know, not even three months out from those, but we're working through both well, sort of all parallel paths that we can, to sort of optimize against what what makes the most sense, not just to from a time perspective, but from a time and from a scalable and deployable perspective to kind of enable us to to try to get more plants built sooner and faster. And so when I think about things simplistically, the executive orders really drive, you know, more aggressive timeline schedule, which is great. That means you kinda take some of that permitting challenge and risk of timing risk to a different level. Right?

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

So it's a different kind of you get a lot of risk reduced just by that. But then additionally, you have a totally different change of of kind of the fuel side because of tapping on the EOs to make more fuel available from the for being the success with plutonium material that could, you know, support dozens of reactors being built without needing any HALEU. Like, that's huge because that helps set the market for us to then build more plans, have stronger partnerships with Hailey providers to then get to those Hailey kind of production goals at the right pace and scale. So, like, it's a very, very supportive ecosystem right now that's really changed the equation from where we were just three months ago, frankly.

[Derek Soderberg, Director - Senior Equity Research Analyst at Cantor Fitzgerald]

Got it. That's helpful. I'll pass it on. Thanks, guys.

[Operator]

The next question is from Craig Shere, Tuohy Brothers.

[Craig Shere, Director - Research at Tuohy Brothers Investment Research Inc]

Hi. Thanks for the call and taking my questions. Hopefully, quicker ones for me. So do you have a timeline or roadmap for announcing PPAs on your INL plant? Do you have line of sight on sufficient fuel for a full 75 megawatts there at this point?

[Craig Shere, Director - Research at Tuohy Brothers Investment Research Inc]

And given government support with rejected plutonium fuel that you say can support a lot. At this point, once you get past initial regulatory hurdles, could we see multiple powerhouses all announced at once?

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

Yes. Good questions. Yeah. We continue to to move through. We're finding that there is more interest in power from the Idaho plant from different folks and in different ways, not to mention the other benefits we get from it.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

You know, part of what's beautiful about that plan is the benefit to provide fast neutron radiation capabilities. We're continuing to explore different ways that we can, you know, partner with government and other things, other groups and focus in industry and academia, leverage some of the positions we have there, utilize some of that. Additionally, you know, part of the you know, what we're doing with Vertiv is setting the stage to build a pilot, thermal based cooling system, at that plant and demonstrate that, which is great. That's getting some interest from different folks to come in and be part of that. So we're finding it's probably gonna be a mix of of off take and use case, and that's what's been important about how we structure that is to be flexible.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

I guess I would say I've long bet that there would be a lot of demand for that power, and, and we're seeing that that's definitely the case. So how we structure it again gets back to the prior conversation of of of what Craig was saying, you know, looking at the right ways and and and making sure we're doing all the things that get the most for sort of where everyone wants to be and how how to structure it in the right ways. But, you know, the main value to me in that plant is getting it built, but it's obviously great that we can do additional things with it like we're showing. And having a diversity of use cases like we're showing is pretty important too because you find different ways to get different partners to the table in meaningful ways too. Bridging from that to the fuel piece, yep, we are uniquely positioned with those five tons of material.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

That's awesome. We would like to have some more to run that plant in a normal way all the way up to 75 megawatts. And, it's pretty clear that there's a number of sources. It hasn't been finalized what we're gonna do with that, but there is way way more than enough material. So we're working through the different logistics about how and what the right sources and cadencing is gonna be for those.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

With in mind well, I'm gonna rephrase. While maintaining in mind the the other part of what you said, is setting the stage for multiple announcements kind of at once. You know, I I think one of the things that we see that's so exciting about fast reactors and recycling is the ability to effectively tap into known reserves of heavy metals and power the entire planet's energy needs for basically the durable lifetime of the planet. You know, it's a bold aggressive thing to do, but physics in many ways is designed for that. So building out the right pieces and infrastructure to actually realize that is something that we've long been motivated, driven by, dream of.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

So, part of that includes getting the right pieces in place to build a lot more plants a lot faster. Right? And that's what we can do on the in the heels of the EU announcements. So I think what we see is, you know, generally speaking, working towards, you know, what the next plans are gonna be and figuring out the right partners that we can have at the table to make those, platforms to next. And then most of our conversations after the sort of Idaho and Air Force pieces, those become larger campuses with more plants at them.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

So so that's kinda how we explore that. So, yeah, I mean, all of that is set to stage very favorably for that. But, you know, again, we could we could run to announce something more quickly, believe some 10 the significant things off the table, which we think is the less optimal thing to do than, build the right partnerships that help us really be successful in delivering all these things we wanna do, which also, by the way, is what's so exciting about nuclear today. We're building the right kind of dynamics and partnerships to do this. And one of the nice things about our model of, you know, designing, owning, and operating, we have a very clear sense and insight in factors we need to drive and not you know, ends our find partners who can lean in to help us with those can, you know, do so in the most creative ways. It's a lot simpler. This is a crude analogy, but to kinda have a two body problem like that in that sense than it is to have a multi body problem you might have a utility in between or developer or even both or all of those in between and trying to figure out and solve for the different pain points you have. It just kind of complicates the deals in the space of operation. So it's helpful for us that we kinda have this approach.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

I will say another thing we're seeing though, and is a possibility always been the case from onset for the business. I think we've all been convicted utilities aren't really going to be interested nor are they really the right ones to move forward on first of the kind deployments for these kinds of technologies. But they can be very useful partners in some cases where if you build and develop the construction like we're doing, we make this easier. You could turn the put the asset over to them. You could sell the asset to them.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

Right? That is a possible thing that can be done, and something that was kind of baked into some of the story not stories, but conversations that Caroline and I had, before we founded the company way back when. So, you know, I think it's all the stage for some pretty accretive dynamics for how it's all coming together to, would say, make nuclear pretty, like, clearly inevitable is how I would characterize it from my opinion.

[Craig Shere, Director - Research at Tuohy Brothers Investment Research Inc]

Great. Thank you.

[Operator]

Eric Stine from Craig Hallum is next.

[Eric Stine, Senior Research Analyst at Craig-Hallum Capital Group LLC]

Hi, Jake. Hi, Craig. Just want to sneak in a few here at the end.

[Eric Stine, Senior Research Analyst at Craig-Hallum Capital Group LLC]

So the topical report accepted by NRC, I mean, there a way to think about the timing of that process? I know that you're kind of taking a different path, maybe that's a bit of an unknown, but maybe initial thoughts on how that speeds up the time line? And then once you get through that, kind of what percentage of the process would that take care of that you then don't have to replicate, you know, for each, successive deployment?

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

Yeah. I think there's, there's there's an interesting cadence of of tactics and strategy about, you know, pre application and topical reports. I think there's there can be an appeasement strategy where you feed the NRC just top of corpse and don't actually move deep deeply into the licensing space until you spend a lot of time doing all that and be very conciliatory and not be kind of innovative and leaning into the opportunity to to do things, especially now a little bit differently. I think that's been the playbook that is kind of how the industry thought about things before, but hasn't really yielded very many successful results clearly. But what we see is, more important to kind of leverage them in a much more strategic way in terms of targeting and an issue beyond just the first plant.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

So instead of kind of taking some like, and what a topical report is is an ability for, like, you to take it to an issue, regulatory issue to the NRC. I'm being, obviously, a bit simplistic and colloquial, but to the NRC and have them do a review and issue some kind of safety evaluation report typically out of it, which provides a good precedent to be able to reference going forward in future application. In some ways, you're able to do some that's like preseason licensing, but where the score actually counts. So maybe better analogy is early season games. I don't know.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

Anyway, the the score does count, but you don't get the whole thing at once. It's a great way to compart like, compartmentalize or incrementalize certain things you need to do. It's also a really good way to deal with generic broad cross cutting issues that might affect fleet wide considerations. Like, in our case, how we look at licensing operators, where instead of licensing a single operator to run each individual single reactor, which is the typical model or maybe site, which is the typical model. It's actually a trained operator can run any of the plants of that class anywhere wherever they are.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

It looks a lot more like how aviation does type ratings. Right? So instead of having a pilot that can fly one or maybe two tail numbers of a specific plane like a Airbus or Boeing seven thirty seven or a three twenty, like, now you instead have like, that would be insane and really inefficient, which is why they, know, probably why they don't do it. But, you know, when you think about smaller reactors and more of them, going to a model where instead, hey. No.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

I can actually fly all a three twenties or seven three sevens or whatever, or, you know, bigger plane. That kind of type of similarities is at play here where can then do that for the whole fleet of reactors. So there's a lot of scalability benefit to that. You know, I think the general timeline has been about, you know, twelve or so months, from that. That does take some of the operational considerations into that we will be able to reference some of those with our application.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

But what it's really mostly helpful for is actually for the plan second, third, fourth, and beyond. That's where it's a lot more helpful. Always have been building this kind of thing. It's kind of like when I think about licensing, I think about going back when I was younger playing sports, you know, whether it be soccer or golf or base, whatever. You don't swing at the ball or hit at the ball or just kick at the ball.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

You gotta kick through. You gotta swing through. Right? You gotta follow through. And that's the same thing here.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

We're not optimizing for just the first. It's about how we set the stage to hit the things after that. So through the first and beyond. And so that, for example, is a very clear one to do. There's additional things that we're working on, with the NRC from the pre application perspective that helps set the stage for that.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

So we expect I would say it's it's pretty hard to point to a specific point of singular acceleration for the first plant, but it's gonna provide significant acceleration for the plants thereafter, which is part of what's so important about this kind of model and how he's kind of taken that approach. And then, accordingly, on the tactical aspects, those are all strategic implications and how I think about it. There's some tactical aspects too, which is maintaining the right momentum with kind of the right review teams and right reviewers at the NRC on different items of interest. And so making sure you kinda have the right content in the right way and the right order, to sort of deal with setting the stage for successful review is pretty important to focus on getting the right thing, and then that's how we've tried to approach it. So that's kind of how we set the stage for executing into that.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

You know, and I think, like, doing a, you know, doing a custom 52 approach is a lot 50 and, yes, they referenced a design certification, but there's a lot of one offs in between them and even differences in how they kind of looked at the m the actual plant builds on a site by site basis to to some degrees so that, like, given what we're trying to do here, that full approach, we don't see any significant departure from risk. It's not like we're taking a part 53 licensing approach or something like that. This is a part 52 combined license. Just kinda putting those together. But what's nice about that is you don't have to deal with the pains of regulatory rulemaking, which is what a design certification is.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

So from an actual administrative perspective, rulemakings are way harder than license issuances from an evolution and development perspective because of what you have to do for rulemaking or how it's typically been done. So, like, at the end of the day, that's how we saw some of the advantages on that kind of approach. We're trying to combine those things plus the scalability. Like, it's really about, again, like, it's a subsequent licensing. Like, this industry has done a lot, but we haven't had a lot of subsequent license.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

The did a lot of work to get rid of that because we had a hard time getting through the first plants. Right? So now we're looking at seeing that those benefits come to bear, and, I think that's one of the cool things is the industry has spent a lot of effort and time to be ready to do that. Mean, they did do a lot of that. It's just they didn't get built.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

So it's great that we can tap into doing a lot of that as well, from a subsequent license application perspective, from the reference license application perspective.

[Eric Stine, Senior Research Analyst at Craig-Hallum Capital Group LLC]

Okay. I appreciate it. Thanks.

[Operator]

Next up is Max Hopkins, CLSA.

[Max Hopkins, Stock Analyst at CLSA Limited]

Hello. Thanks for the time. Keep it brief. So you guys mentioned that MOU with KHMP, when I touched on the supply chain, I guess, as you guys move forward, you said 70% of materials could be non nuclear. For that 30% of nuclear, required components, Are you guys looking to Korea more to maybe DWST in The US? Or or is there any focus on kind of those nuclear specific materials, coming down the line?

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

Yeah. It's a great question. I'll zoom out a level real quick because I think this is kind of a key narrative piece. There's a whole thing about, you know, nuclear having been expensive and difficult and all these other things for time to build and understand why and where that comes from. The real experience.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

We've also seen success stories through the things that people like to point to for big plants. But there's another whole vector of attack here, which is what we, I think, as a venture, need to think a lot more about, which is how we get back to realizing the true cost potential of nuclear. Look. There's the term I know it's, you know, we've used it before. You know, I think it comes out of SpaceX and from Elon Musk, but was the idea of an idiot index of what's the, you know, ratio of the actual delivered cost of something divided by its actual cost of raw materials.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

And then nuclear, lot of times, are really, really, really high multiples. And a lot of that points to, for a lot of reasons, just kind of how things have been done in the industry, but it's not how they have to be done because, again, nuclear has the fewest material needs per megawatt hour of all energy sources. So there's a lot of room for cost improvement, frankly, just there. And the way I see it and in my experiences, and I think that we've seen at OPALA and what we've tried, you know, designed towards, is there's kind of two main ways you attack that. One is that has, like, passive and inherent safety features that reduce the number of what are, you know, called, quote, unquote, safety related or safety grade or nuclear grade systems and components.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

That's one thing. Right? And sodium fast reactors based on what EBR two showed have a good kind of trajectory in hitting those inherent and passive safety features, but then I have a lot fewer things that are required for the safety kind of functions in the plant. The other aspect is how you deliver how you actually deliver the parts that need to fall under that kind of oversight or or maybe just unique enough because they're only supplied in nuclear. How do you modernize some of that?

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

And there's a whole bunch of opportunity there because in many ways, the nuclear supply chain went out of growth mode by and large in the seventies and eighties. And it has only now started to come back. But when that happened, we're investing in modernizing the actual processes and procedures and protocols and even just methods of manufacture and fabrication as well as quality assurance compliance. It wasn't a big impetus to do that. Well because those changes can be expensive.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

But we actually have a really big benefit and opportunity to take that and do it differently in a more fresh way today because of how you can work with doing sort of meeting those requirements in a more modern way. You think about where the world was when those things happened. We were building a lot of, you know, four Pinto's, to be candid. Right? That was what was going on then.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

You have different level of quality assurance, a different level of expectation at an industrial level. And in fact, I would argue that in many ways, industrial quality assurance has caught up with that leapfrogged kind of what typical nuclear has been, and but done so in a much more efficient and effective way. So you can obviously and and also the pathways by which you achieve the kind of functional outcomes and outputs can be done the same way with, like, you know, with these modern with, you know, I I mean, it's not exactly the same, but you can do commercial grade dedication for these pathways to actually get them to meet what's required in the industry, or or from the regulatory basis and from the quality control basis. So there's actually a lot of opportunity just from those two to drive a total change in cost, which then opens the door for how you think about the suppliers to meet that 30%, you know, mix of who fits into this. And, yes, some are gonna be some legacy, but not a large pressurized water reactor.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

We're not even a small pressure water, you know, pressurized water reactor, which means we have a very different set of what we can buy and use in the plant. We We don't need a pressure vessel because we're not pressurized. Right? We can use common alloys of stainless, you know, that are used in many other industrial applications, that are shown to be compatible in a sodium system. And then put something so you kind of, you know, basically partner up and work with different folks, both legacy as well as some newer entrants who wanna get into this business and help them kinda meet what's required and do so in a, I would say, a more cost effective, way.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

So it's kind of an all in very comprehensive approach on how you attack this problem and do things a bit differently. It's not the best it's not always. It's not the worst always, but it's also not always the best to go to legacy incumbent suppliers because they're used to doing what they've done. Trying to get them to modernize can sometimes be challenging. So you find the right ways to work with them, but sometimes it's just better to work with some others.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

So, you know, a big focus has been, you know, we have opportunities to partner, obviously, with what's been done. You know, we don't need all the full capacity of what the Koreans can do, but, obviously, that means they can definitely do what we need them to do. So there's interesting dynamics there. There's also interesting dynamics about different fabricators and manufacturers to us. And we found that some legacy providers and suppliers are really excited about modernizing, and they see us as a big pathway to do that because it can help them, you know, get experience of doing things in a more modern efficient way.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

So then also apply to the rest of the operations and maybe change their cost curves as well. So, like, at the end of the day, we see it being pretty attractive to do that and kind of push on that angle of attack. So it's a long winded answer that's deeply ingrained in Ogleth philosophy. And another thing is by building a lot of plans, you can kind of find an approach where maybe you find a couple different partners for the same system. Maybe not.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

It just depends. But it gives you that ability to then find the best ways and right ways to partner with folks, to be able to buy things from and do so at the right cost or just partner in a way to help them do it with ourselves or us do it. Right? So it's a full dynamic about how you attack that problem. But at the end of the day, yeah, it's it's quite helpful that we have, as I like to think about it, the physical cost drivers are generally on our side because we have such a material advantage as as a nuclear technology as a whole.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

And I'll just say, like, changing that paradigm from a light water reactor, if you were a light water reactor, has different complications and challenges. And then I would say, in many ways, it can be harder than it is to do it from, an advanced reactor perspective because light water reactors have pretty specific way of doing things. And if you're going to try to do something differently given, you know, that's the bulk of the plants operating today, there's a lot more inertia that's kind of resistant to that change, and or modernization or even just lack of appetite better way to do it than it is if you're a technology that doesn't have that same paradigm and can bridge outside of the sort of incumbent nuclear supply chains effectively. And that's a big feature that sodium fast reactors have. And And in some cases, I think, have a broader on envelope of opportunity than kind of any other type of technology because of the material compatibility and the technology kind of op or the operating temperatures and the history of operation on it.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

It's lot harder to do that also with gas reactors, would contend, just because, again, pressurized, larger scale volumes, nuclear grade graphite, all that. Doesn't mean it can't be done. It's just a different different attack like this.

[Max Hopkins, Stock Analyst at CLSA Limited]

Great. Thank you.

[Operator]

And everyone at this time, there are no further questions. I would like to hand the conference back to Mr. Jake DeWitt, Okla's Chief Financial Officer for any closing or additional remarks.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

Yeah. Thank you so much, and thank you everyone for calling in today. Excited about the last quarter marked for us. Pretty sizable change in the entire nuclear landscape, including, frankly, the art of what's possible, in the wake of, you know, sort of the monumental changes made by president Trump, and his executive orders, build on massive changes already in hand that go back to president Biden and the advance act and work done around the, you know, inflation reduction act to support nuclear, and then go beyond back before that to president Trump's first term with, Nika and Nima and those bills and then additional executive order sending then. And then back before that, even to president Obama.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

I could actually go on for long, but the reality is it's a very exciting time here and that we see a clear set up for a need for what nuclear has to offer, policy support that helps solve some of the biggest challenges or risk factors and true including permitting as well as fuel supplies. So we're excited about watching how those fully unfold. That said, there's still obviously a lot of work to do to capitalize on this. But it's, it's a pretty it's it's frankly, it's a person who grew up in this space and loves this technology and loves this field. It's pretty hard to not find myself sort of pinching myself, to make sure this is the reality that we live in, that we have such a clear, you know, ecosystem of support as and and and support in the most meaningful ways possible to actually go execute on realizing the real promise and potential of the Atom.

[Jacob Dewitte, Co-Founder, CEO & Director at Oklo]

So very excited about that. Very excited about what we accomplished in the last quarter and looking forward to what's ahead because there's a lot more to do. So thank you guys. Thank you all.

[Operator]

Once again everyone that does conclude today's conference. We would like to thank you all for your participation today. You may now disconnect.

Participants

Executives

• Sam Doane, Director - IR
• Jacob Dewitte, Co-Founder, CEO & Director
• R. Craig Bealmear, CFO

Analysts

• Jeffrey Campbell, Senior Analyst at Seaport Research Partners
• Sherif Elmaghrabi, VP - Equity Research at BTIG
• Jed Dorsheimer, Group Head–Energy & Power Technologies at William Blair
• Ryan Pfingst, Senior Research Analyst at B. Riley Securities
• Derek Soderberg, Director - Senior Equity Research Analyst at Cantor Fitzgerald
• Craig Shere, Director - Research at Tuohy Brothers Investment Research Inc
• Eric Stine, Senior Research Analyst at Craig-Hallum Capital Group LLC
• Max Hopkins, Stock Analyst at CLSA Limited