Terra Innovatum Global N.V. (NKLR) Q2 2026 Earnings Call Transcript

Greetings, and welcome to the Terra Innovatum Global 2Q 2026 Business and Operations Update Call. At this time, all participants are in a listen-only mode. A Q&A session will follow the form of presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note that this conference is being recorded. I will now turn the conference over to Giordano Marichi. Thank you, Giordano. You may begin.

Thank you, Operator. Good morning, everyone, and welcome to Terra Novato's second quarter 2026 business update call. I'm Giordano Morichi, founding partner, managing director of Global Business Development and Investor Relations. Joining me today are Alessandro Petruzzi, co-founder and chief executive officer, and Kathy Williams, our chief financial officer. Earlier this month, we timely filed our quarterly report on Form 10Q for the quarter ended June 30, 2026, and issued a new release summarizing our financial results and operating progress. Both are available in the investor relations section of our website. Before we begin, I would like to remind everyone that today's discussion will include forward-looking statements. These statements are based on current expectations and assumptions and involve risk and uncertainties that could cause actual results and differ materially. We undertake no obligation to update forward-looking statements except as required by law. Please refer to our most recent form 10Q and the other SEC filings for discussions of the risk factors that may affect our business. On today's update, we will focus primarily on discussing our execution milestones, and in particular, we will review the progress Terra has made against the priorities outlined in 2025, including NRC engagement and licensing progress, supply chain and operational readiness for first-of-a-kind deployment, commercial deployment, and financial strength. Following our prepared remarks, we will open the line for questions. With that, please turn to slide one, and we'll pass the call over to Alessandro.

Thank you, Giordano, and thank you to everyone joining us today. So moving to slide one, this update is not simply a review of the second quarter. It is for us an opportunity to compare the execution priorities Tera outlined in 2025 with the progress we have made by June 2026. A year ago, we said the company would move solo from completed design into licensing, industrial preparation, off-premium and commercial development. Today, we came on to concrete progress across each of those areas. We have advanced NRC engagement and construction planning preparation, selected and progressed the key industrial suppliers, Moving into physical procurement activity, established a U.S. operating platform, developed many commercial opportunities, and at the same time, maintained a capital base to continue the execution. Our progress is best understood through two connected priorities. First, we are advancing the regulatory, industrial, and organizational capabilities required to to push you first-of-a-kind, or fork, deployment, and prepare for commercialization of initial units. Second, we are developing qualified commercial opportunities for solo in applications where dependable, scalable power can address defined customer needs. The actions completed today provide tangible evidence that Terra is executing against the milestones we laid out in 2025. This year we established our Innovatum core and our Pixboot headquarters and added dedicated leadership in US sales and business development and US strategy and operations. We are also continuing to develop the team required for the next phase of growth. As Terra expands its commercial, regulatory and operational activities across a broader international footprint, we expect to add target capabilities that strengthen our ability to support customers, partners, and execution priorities in the United States and in another key market. Now we can move to slide two. A year ago, TerraSafe used the established nuclear industrial supply chain rather than attempt to build every manufacturing capability internally. This was our plan because we strongly believe it provides the highest likelihood of success to quickly capitalize on the overwhelming demand for electricity generation solution. During 2026, we have begun converting that strategy into a selected focus supplier base, manufacturing and industrialization planning, long-lived equipment relationship, and physical procurement activities. We have established partnerships with some of the most well-established players in nuclear engineering, including nuclear-grade graphite development with Mersin, advanced component manufacturing planning with Conoir, manufacturing and industrialization planning with ATB Riva Calzoni, an air-cooler condenser arrangement with SPG dry cooling, an ion circulatory equipment with Baldrocki, and a long-term procurement relationship with Odin, now a battery-use company for a steam turbine and generator equipment. So we have purchased graphite, turbines, steam generation equipment, and air cooler condense, helium circulation equipment, stainless steel for the reactor pressure vessel, and other important FOC items up to today. From approximately 130 potential suppliers we identified at the beginning of our plan, we have selected approximately 30 for the FOC program, and have issued actual tangible purchase order with real advanced cash payment and prepare technical specification for the Fock component which represents today more than 80 percent of the Fock bill of material. This is how reactor gets from planning to being built and now we are doing this. It is important also to note that one meaningful advantage of building a micro modular reactor is that we can make significant progress on manufacturing and assembly components while we advance through the MRC approval process. In other words, we don't need to wait for a construction permit before beginning much of the physical work required for our perceiving. We went through a rigorous process to identify the best and better solution for all our needs in terms of equipment and material. And now we are rapidly moving forward with these solutions. Moving to slide three. A year ago, TERA outlined a formal NRC licensing pathway based on pre-application engagement and phased application preparation. During 2026, TERA submitted topical reports, submitted defined construction penalty chapters and initiated a NRC pre-application readiness review for the construction permit. An important part of this work is definitely the environmental report. This work is intended to provide the environmental information required for the planning construction permit and support the regulatory preparation for potential FOC deployment. The Regenist review is expected to proceed in phases, beginning with key safety environmental materials. It is an early engagement process intended to help us obtain feedback as we prepare our final application. Our next steps are to continue the Regenist review process, complete and submit the remaining construction planning chapters target for october and begin preparation for the operating licensing application with the target submission in the third quarter of 2022 2022 now turning to slide four we believe credibility is earned by completing the milestones we identified during the first half of 2026 that established its u.s execution platform advanced energy engagement in construction planning preparation, progressed to the industrial and supply chain preparation into procurement activities, developed many commercial opportunities, and maintained 91.1 million of cash and cash equivalents at the end of the quarter. Each of these actions support the next phase of execution. Our next priority is to build directly on that progress, complete the remaining construction planning chapters, continue NRC re-translative engagement, begin operational licensing preparation, advance supply manufacturing and long-lived equipment activities, and mature qualified commercial opportunities towards a definite agreement whenever it is appropriate. We are working towards targeting licensing for and initial commercialization milestones. These objectives remain subject to regulatory review, technical execution, supply chain performance finance financing and other factors our focus is to meet each prerequisite and transparently communicate material progress as it occurs i will now turn the call over caddy for the review of our financial results and financial position so please move to slide five now thank you alessandro and good morning everyone the capital that was raised to support Terra's transition from design into licensing, industrial preparation, and commercial development, it remains the focus on the execution priorities.

And the capital that was raised remains the sole focus of us understanding and very diligently managing this capital so that we can reach the first of a kind and then continue into the execution phases. To give you an example, we began the year with $101 million in cash. By the end of the second quarter, halfway through the year, we have $91.1 million of cash and cash equivalents in the bank. This will support the continued investment in the licensing preparation, the engineering and development, supply chain and industrial readiness, commercial development, organization build-out, and public company infrastructure. For the second quarter, our total operating expenses and loss from operations were each $6.1 million. This includes $4.6 million of general and administrative expenses and $1.5 million of development costs. These costs reflect the practical work of building the team, systems, and technical program required to advance the solo towards the first-of-a-kind readiness. of. The net loss for the quarter was $18 million, or $0.16 per basic and diluted shares. This did include a $13.2 million of non-cash fair value remeasurement expense. Again, non-cash, and that's related to share several contingents and warrant liabilities. Looking ahead, we will continue to allocate capital in a disciplined manner against concrete execute milestones. We are working hard to keep our general and administrative costs at a very low level so that we can deploy the capital that was raised, again, to develop the first-of-a-kind solar reactor. We're working on execution milestones, licensing and environmental report preparation, engineering and development, supply readiness, physical procurement, commercial evaluation, organizational buildout, and public company requirements. We are committed to providing transparent reporting, disciplined capital allocation, and sustained execution against these priorities. So with that, I'll turn it back over to Giordano for a discussion on the commercial development.

Thank you, Kathy. On slide six, a year ago, Tara described early customer interests across data centers, industrial operation, and infrastructure applications. Today, we're working with named counterparties and evaluating specific deployment requirements rather than discussing market interests in the abstract. From a business development perspective, our objective is to identify qualified opportunities where solo can address and define customer power need and where the customer, site, technical, implementation, and regulatory considerations can be evaluated together. The United States remains, of course, our primary focus market, particularly as we progress through the NRC licensing preparation and work with the U.S.-based counterparties. At the same time, Solo is designed as a modular platform that can be relevant to customers in other markets facing reliability, grid capacity, or power growth constraints. However, we believe that by virtue of our enhanced and favorable safety profile, we are uniquely situated amongst next-gen reactor developers to sell internationally in selected key markets where we already are seeing signs of robust demand across many end markets. Like all companies, the electricity generation supply chain, we see data infrastructure as one of the examples of a growing cost-term application. Data centers and other milestone-critical facilities require dependable power facing rising demand and in many locations incurring constraints related to grid availability, transmission capacity, and reliability. SOL is being developed to provide a scalable behind-the-meter option for applications where those factors create a need for dedicated power. During the quarter, we announced an LOI with Waken ILW, contemplating an initial deployment of up to 8 megawatt electric of behind-the-meter SOL capacity, supporting Direct TV and Sky data center facilities in Argentina and Brazil. We also continue to engage with the existing U.S. counterparties, including Amerisco, the Rock City Admiral Park, the site of our planned first to the can reactor, and data center developers such as Uvation, while evaluating additional opportunities across data infrastructure, industrial operations, remote and constrained grid applications, and other energy-intensive sectors. Over the next several months, our focus is to convert the most qualified commercial frameworks into definitive agreements where technical, site, regulatory, and commercial requirements can all be satisfied. At this stage, our priority is quality over headline volume. We look for opportunities with a defined power requirement, a viable route to site evaluation, and deployment planning, and counterparties with the commercial, infrastructure, and implementation capabilities required to progress through technical, regulatory, and commercial evaluation. Terra Innovatum Corp. in our Pittsburgh platform supports this work by aiding a U.S.-based commercial component and operating capacity. The team is focused on customer engagement, partner coordination, and deployment planning that connects commercial opportunities with our licensing and industrial preparation activities. Our objective is to develop a disciplined commercial pipeline and advance the most qualified opportunities toward definitive agreements. We receive some questions now. We can see on the audio side from George from Canaccord and Samir from HC Wainwright and we also are getting other questions from the platform. We've been getting questions from the platform so So perhaps we can take those two for a start, and then we'll continue with the rest.

Sure. You got it. Thank you so much. George, your line is now live.

Hi, everyone. Thank you for taking my questions. I'd like to start with the commercial pipeline and maybe focus a little bit on any discussions you're having internationally, and you can sort of talk about those. And also, to what extent are those other potential international discussions being impacted by the NRC, meaning that they're waiting for a more regulatory clarity, and therefore we'll accelerate those conversations? And how leverageable do you think any potential NRC approval is to getting those commercial deals internationally done?

Thank you, Josh. Definitely the role of the U.S. MRSC is widely known in terms of that. So this is to say that in all international business discussions we had with possible off-takers, the role of the licensing is fundamental because from one side it demonstrated the commitment and the maturity of our project. from the other side give also a sort of confidence to possible different nations and countries to basically follow the same experience and the same activities that is in the US. We talk in Indonesia, we talk in the Philippines, partially in Africa and South America, and And the attention is maximum to the licensing, even, I have to say, sometimes before the design is set. So those countries, sometimes the nuclear understanding is limited, more limited than the U.S., so the attention to what is now occurring there is fundamental for the success in those countries. With some exception, there are, like I mentioned, Indonesia, for instance, or Malaysia, or eventually even Vietnam, where a little more of experience in nuclear is such that they can also look a little forward than the license itself. But definitely I think then our submission now of the construction permit and the following review that USNRC is going to start is fundamental also to increase our capacity to develop those interest in real concrete opportunities.

To implement on what Ali was saying, definitely the target focus again is to tangibly look at companies to where we can deploy. So So geographically speaking, U.S. is the focus with the NRC licensing. There's also other possibilities where the licensing could be potentially streamlined. We're looking at places where the one to three agreements are signed. So along with Asia, we're looking at Saudi, we're looking at different parts of the world. And we're working hand-in-hand between the technical, the regulatory, and the go-to-market strategies on how to truly permeate the countries. And we've been doing this for the past year. So we've been attending conferences, business events, not only in the U.S., but throughout Europe, Asia, and the GCC region. This is extremely important. In terms of industrial verticals, we're looking at hospitals for the radio-assetal productions. We're looking at mining facilities and extraction. So there's plenty of opportunities thanks to the deployability of the technology and the scalability of this technology.

Thank you.

Samir, your line is now live.

Hey, good morning, good afternoon. Alessandro Giordano, thanks for taking my question. In the last call, I think you had mentioned several supply chain agreements agreements that were signed and secured some of the long lead items. Have there been any new named parties that you have signed supply chain agreements with and how is that part of the development process progressing?

All the names that I mentioned during the presentation, so in addition to the graphite You can see the air cooler condenser, you can see the pumps, the circulator with Bordrocki. So basically we did a lot of activities and as I said today we are in the position to say that we prepare the technical specification and discuss with our supplier about a little more than 80 percent of the current bill of material of our reactor. I would take also this question with the possibility to stress another important point in Terra strategy in respect to the supply chain. As we said since the beginning we believe that the current supply chain is fundamental to arrive to a product, to a reactor that is commercial, available soon on the market. And we think today that this was even more the right decision to do. And with each of these suppliers, we started in particular for the long-lead items like like Merck, like ATB, like even, you know, to buy, sometimes might be a very long lead We start really to talk about how to support the commercialization, because we see the FOC as a step for the commercialization. Yes, it is a very fundamental step to build the FOC and to license the FOC, but the commercialization is the real challenge for Terra and the real focus. So that's to say that in all our discussion with the supply chain, so far what you see is the advancement for the fork, but there are a lot of discussion in terms of how to prepare ourselves.

Understood. Thanks for that color. Very helpful. And on the construction permit application process, process you have kept us up to date on all the steps and some of the press releases were really helpful in understanding your process but but the question is I have is this in line with what you had originally planned in terms of expected timing are there any slippages that you have seen some things are taking longer, some of the things that you might not have been prepared to answer the NRC with. Just some color on how the internal dialogue is going between the two parties here.

The dialogue with the USNRC is still good as it was at the beginning, very productive and very communicative with several feedback every week. We still are on our track for the licensing timeline we figured out at the beginning. We have to say that what happens since we started in end of 2024 is basically the part 57. And this is a good positive, obviously, outcome. Why Part 57 may have impacted the work, but in the positive way, is that obviously some of our documentation, some of our even design choice are affected by Part 57. Because we should remember that Part 57 will be the way by which solar will become commercial, because right now the focus is under the Part 57. So, part 57 is covering some aspects which are not even present in part 57, like the transportation of fuel in the reactor. Obviously, in part 50 you cannot find this, in part 57 you can find it. So, now, just to give an example, how you can get benefit of the under, not yet accepted, but, but obviously under discussion of Part 57, now you can get the benefit of this for the current FOC. And obviously this was very important, very important because as I said before, we see the FOC as intermediate steps toward the commercialization. So the fact that the Part 57 is now close to release and has been discussed and we took part of the discussion has obviously a lot of nice feedback on the project. To come to the timeline, we still continue to be on our track. We will extend the last nine chapters of the construction permit by October. In the meantime, in parallel time, we are doing the business review with USMRC, which should facilitate and in some way also expedite the communication between us and USMRC for the final review of the application. And in October, whenever we finish, whenever the engineering and licensing team has finished with the construction permit, and obviously from there on there will be the review of USMRC, our team, engineering team and licensing team will start to devote their full time also for the operating license. So still we are fully on track on what we said one year ago.

Thanks, Alejandro, for that. Really good to see all the progress. Congratulations and good luck. Thanks for taking my question.

I see another NRC related question here, but I think we covered it with Samir regarding the construction permit and next steps. There's another one regarding the LOI for the Waken. Can you expand on the Waken and other commercial agreements. Yes, we did sign the LOI for up to 8 megawatts electric with Waken, which is part of the Verteng group. The aim is to deploy those reactors for directly Latin America and Sky Brazil data center facilities. I think this is really important as we're describing the go-to-market strategy and thanks to the technology of our solo and the deployability within the U.S., but also outside of the U.S. and the demand is starting to grow and this is the first manifestation and we look to further advancing this. The next steps will be of course siding, planning, further good market strategy and discussion and potential amplification through the portfolio of the group. I think a very important concept for investors to retain is that the focus is truly on tangibility and feasibility of the commercial opportunities. We're really looking at quality over quantity. We have signed these agreements and we're progressing to other steps for the ones that are existing and future ones as well. But we really are trying to build a trusted track record of commercial execution similarly to the ones that have been achieving on supply chain and the licensing planning. Another question that I'm getting revolves the attractiveness of data centers, of course, and the applications of SOLO and our combined balance of plan. Maybe Alessandro can take this.

Data center, definitely, today, what to say. Data center represents definitely the reason of the increase of power made for all the world. So data center, like other mission critical facilities, are characterized by challenges and, for instance, dependable power, grid availability, transmission capacity, power growth, rainability of the grid, availability of the water, for instance. So why data centers are attractive for SOLO? Definitely because they represent a huge demand today and because TERRA has developed a reactor which is modular, scalable, behind the meter application that does not need water or the amount of water that needs is very, very limited, thanks to this air cooler condenser and also we are evolving in the future as already announced with the PR towards a supercritical CO2 balance of plant with Becker-Yukes. So data centers are important because they represent an incredible amount of energy demand and possibility, commercial possibility for and Terra has the right product. But from the other side, I would like also to say that Terra has developed a reactor which is very versatile. So, data centers today definitely is the main customer, one of the main customers for Terra. But thanks to our prestatality, we obviously look towards also other applications in different sectors, even in remote areas, even in sectors that are very energy intensive or with constrain the grid ability, even the hospital, as you know, with our capacity to produce radioisotopes. So to conclude, data centers are very attractive, and I think they are attractive for everybody. But at the same time, the modularity, the feature of solo, the behind-the-middle application, all what I say makes solo very interesting for many other applications. And maybe I already said this, if we sum up all those other applications worldwide, I think this market is even larger than the market.

I think there's another question that kind of jumps on these comments from Ale. How does Terra decide which commercial opportunities to pursue? And to answer this, it's exactly what I've been discussing. Real opportunities through headline volume, to say. I think the market has been realizing over the past year a lot of commercial validation has been given by LOIs and MOUs and so forth. and people are slowly starting to really understand what's behind them, right? So the fluctuation of the stock do not interfere with those announcements as much. And we're really trying to focus, mindful of the supply chain, what we can produce, what we can deliver, the timings, commercial and tangible opportunities. So the company evaluates whether there is a definite power requirement, viable site deployment pathway and all of the regulatory of course capacity for the commercial deployment i think this is a the approach to the go-to-market for the company there's another one i think for alessandro regarding the construction permit when you expect to file the construction permit and when solo could be licensed maybe uh yes i think this more or less is going back to the question I received before I can just repeat that today today we have submitted the nine chapters of the construction permit just three weeks ago

we also request the readiness review with USMRC for those chapters by October we will submit the remaining nine chapters what it was also very important in this submission was the environmental assessment report, which is a very, very important document for Rock City and for the deployment of SOLO, because it's not only a safety analysis, and I'm an engineer, so I like safety analysis, but the environmental assessment report also It also implies that SOLO started really to communicate with the site owner, with the people there and start to review what are the features of the site. So it's a real, tangible example of how we advance the application. And as I said before, we are in charge to submit our nine chapters in October and after that we'd like to fully devote to operating license in order to arrive to the final safety analysis report in 2020.

There's another couple of questions regarding the overall status on commercial deployment. I think we fairly covered that in the other questions regarding, again, execution from LOIs into binding orders, considering, of course, citing the different department supply chains and the coordination with the different parties we have one again on what was actually changed in the supply chain beyond citing memorandum of collaboration so i think i let this reverse to the you know we are executing the tangible agreements so the question is sorry giordano is about is about what has actually changed in the supply chain beyond signing memorandum of collaboration agreements?

This was a very, very interesting question because we really experienced in this one year and a half also the change of the supply chain attitudes towards us and I think in reality towards the micronuclear reactor. When we start with several of the suppliers, they have still the idea of nuclear as an elephantiac industry with a lot of long time, long design process, difficult to arrive to the end. So what we really see during this year is not only the progress that I'll point to repeat, but it's almost change also mentality of some of our suppliers, they really start to get the idea, what does it mean, nuclear based on microreactors, and nuclear energy which is more similar to a process of production and manufacturing gas turbines. So they are really challenging, so they are self intense. What we need to do from their side, obviously, intends to support the commercialization. So, what changes since the beginning, changes that we passed from a letter of intent, you know, understanding to real technical specification, followed by orders and followed by advance payment. And as I said before, we have now delivered more than about 80 percent of the technical specification to our supplies. So, this is what has been changed. We have in some cases also done advance payments, so the process of procurement of the real material component is ongoing. I may remember, for instance, the PR we did with Mersen when we received the first block of graphite, and that we start even to manufacture and to try to create some example of how our reactor will at the end look out. So there is an incredible amount of work that has been done, but what I'd like to say is not only from a practical point of view, what I like to say is that in particular we saw that also the mentality of the supply chain has been changed since we started and they are now getting the idea of what does mean to create a series of macronucleal reactor over there.

Supply chain there is one technical and then we'll go to Kathy with some financials.

The technical is why is water independent cooling important for SOLO I believe this is for the SPG dry cooling oh yes you know we were talking before about data center and I think you know much better than me what is now the situation with data center in the U.S. and water is obviously very important element for the accessibility of the data center together with many other features so the possibility that SOLO has to have a balance of plants, keep it with a dry cooling system with a very very very limited amount of water that you needed to refill every every 15 years. It makes a very attractive feature for I think data center for any other facilities that have similar challenges of data center. It's not the only one. there are as I say many others that we think solo can address, but definitely water is fundamental. And we decided also to start with the ranking cycle, the steel turbine, so with the need of water, just because this is part of our philosophy to enter in the market with a product that is, how to say, as soon as possible available, but from the other side we also like to advance and to go to a solution where even there will be no water in the secondary side and that's basically why we signed the agreement with better use for the supercritical CO2 turbine. So water is fundamental and our design is such that we can minimize and that's the reason why we think is an appropriate solution for that.

Now passing on more financial standing, There's a question regarding the Pittsburgh expansion, the value-add of the office intention to expand on the U.S. supply chain, related financial next steps. Maybe Cathy could take this?

Next steps as far as expanding in the U.S. and placing the office there is we're trying to build out the supply chain in the U.S. where appropriate, and it just makes more sense to be closer to that supply chain and to the politicians and the people who have influence in the states to make sure that we are also getting the best deal for locating in a particular state. So we're working towards that and having the office in the U.S. just facilitates that. As far as expanding the supply chain, That is in our, has been in our forecast from the very beginning. I know that we have had people ask, okay, you may have 91 million of cash at the end of June, but how long will that money last? We've discussed this several times. and so I'll just reiterate we are on track for the plan that we put in place at the time of creating and raising the capital and that plan is by the end of 2027. We will have spent everything we need for the first of a kind and we will still have at least 30 million remaining to help with the commercialization. So everything is tracking to that. I mentioned earlier, we are truly keeping our overhead costs as low as possible, even though the business is growing. But we want to use the capital raise to focus on producing the first-of-a-kind solo reactor and getting it to the market.

Thank you, Kathy. We have another one on the 91.1 million cash. What is the real opening burn and how long will the money last? So this is tied to another one on the cash burn and immediate future scale-up.

And again, that goes back to what we had planned at the time of the capital raise, and we are definitely following that, and we've been right on track. We're underrunning in a few areas on the actual cash because of the timing of doing the advanced payments with our suppliers. But again, the plan is by 2027, the capital raise will have gone to support the creation of the organization and the first of a kind by the end of 2027 with approximately 30 million left over to go for commercialization.

Thank you, Kathy.

There's also a question from Ryan, operator. Can you open the audio?

Ryan, your line is now live. Hey, guys.

Thanks for taking my questions.

I just had a couple of quick follow-ups. First was on the LOI in Argentina and Brazil.

Could you talk about what potential timing could look like there or maybe some of the milestones that we should look out for? yes as we said for all the contracts that we're discussing or that we've signed we're getting into a more technical delineation so as per the rock city we have to look at the siding we have to look at the regulator uh the regulatory environment uh all of the technical process and eventually how those relate to our deployment capabilities in terms of timelines so we're doing everything we can we're continuing these conversations this has been an ongoing conversation for several months it reached the signature and the public confirmation we are now again into the next steps to try to consolidate and execute I cannot give you more details in terms of the next steps but this would be again technical internally until potentially there could be in the future further commitments.

Ryan, I may add here that both countries, Brazil and Argentina are nuclear countries, so this is obviously why we look for this agreement as one of very, very positive for us. I can tell you also that the team is also familiar We are with the regulatory environment both in Argentina and Brazil because previously the team years ago works for Atucha II and the Angra reactor in Brazil. I can tell you that we have a very long relation in Argentina as you know with Convash, that is one of our suppliers there. and also that obviously the people of the structure of the regulatory framework, in particular in Argentina, is something that I can tell you as a route in, now here I'm using a little technical point, but the route base of Argentina licensing is in the so-called the dose to the probability so basically is a kind of environment such that is able to accept whatever feedback whatever application of of licensing still keeping the concept of the dose to the public in terms of probability. So it's not so prescriptive like in the US, but it's based on the same concept of the dose to probability. And this is very important because we are not talking about two completely different licensing frameworks. And so those are the elements for which we are very positive in respect to this.

Appreciate that.

And then maybe one on the supply chain. You guys have obviously highlighted a lot of progress there. Just curious what the remaining items are to be ready to actually deploy a reactor on the supply chain.

Basically, all components of the reactor have their own associated supply, and we discussed with the supplier of each of these components. For some reason, about MDA, some of the emails have not been yet made public, and we see from the list what basically has not yet been communicated to the market. We are discussing technical details, but the fact that some of the components have not yet been communicated is because there are obviously relations and communication that are not yet made public. But obviously, given our advancement status with the licensing and the construction, this discussion is occurring every day. So today practically there is no component that has not been identified for which has not been identified the discussion, technical discussion has been already occurring.

I appreciate all the detail guys.

Thanks Ryan for the question. I think we have a last one and this is for Ale. What does the company consider unique about Terra?

I have to say that I like a lot this question. I think the answers to this question might be different during the year and initially we focus a lot on the technical aspects, on the fact that we are using a level, that we are small, low power. But now after one year, let me say I'll say several items. Let me start. For example, commercial of dedication. What I mean? I mean that in all our discussion with the suppliers in particular and even now with the licensing, with Parfisis and as I was saying before, our attention is really more on the commercialization than on the FOG. We see really the FOG as a step in the commercialization. But all our decisions with the suppliers and even with the licensing as far as possible, given that there are two different licensing frameworks, are towards the commercialization. So, we are fully dedicated to these aspects, even though this might imply some effort more for the FOC. A second aspect, I think, is the best strategy we talked before. Data centers are important, but the features of SOLO are such that we can deploy SOLO everywhere, in many parts of the world. We don't need the presence of the water, for instance, or very limited. We can do, as the site is very small, we can bring everywhere the reservoir, and we can apply to any industry, even a small one, where largely, instead a source of power, large nuclear power plant cannot go.

So, we are really versatile.

Another aspect, oh, maybe, yes, is the competitiveness of the product, because, you know, in particular now for the FOG, for the FOG, we have enough money to build what we need, what we want. But if we now select a component which is very expensive for the FOG, and then we go to the NOC, to the commercialization, without taking into account this cost, then we will pay later. So what I mean is, even today, the focus is extremely on what is the best component at minimum cost for the FOG. Because what we think is that the commercialization, this race, will be win by who produced the reactor, the best reactor, but the most cheap reactor, or the most competitive, in particular in respect to gas, to oil and gas industry. So our focus is really on taking the promise that we did in respect to the cost of the reactor for the commercialization. And then the rhythm is the rhythm of our technology. Again, here our strategy is to try to be commercial, and again I say commercial and not folk, and try to position ourselves on the market. And this, even if the solar reactor might not be the first one, might not be so efficient like it would be maybe the version 2 of the reactor, you know, version 2 of the reactor you may think to adopt trisor. We told since the beginning that our reactor is very versatile and can be fueled also with trisor and not only with rich dorenium. We decided to only rich dorenium because today we think it's the only fuel that can support the commercialization. But whenever a trial will be available in, I don't know, 10 years, obviously we can switch because it's a better fuel. Or supercritical CO2, I made it before this example, supercritical CO2 and compounded solution are definitely an improvement in the ranking cycle and to the water use. So our goal anyway now and our uniqueness in our opinion is to try to develop something that can be ready on the market as soon as possible, try to occupy position on the market and then improve the reactive. So I would say those are at least four main items that caratelize the uniqueness of ours.

And that will conclude, I think, the Q&A session. With that, I would like to thank anyone who participated and thank you for all the support so far. I will now turn the call back to Alessandro for his closing remarks and please turn to slide 7.

Thank you, Giordano. So to summarize, the first half of 2026 has been about executing against the Plan Terra outline a year ago. As demonstrated, we have advanced from design stage preparation into construction permit materials and NRC engagement, from supplier discussion into selected supply, purchase order and advanced payment, from broad market interest into mini commercial opportunities, and from capital rate into a funded execution program. Direct TV Sky for up to 8 megawatt electrical potential behind the meter's solo capacity is definitely one example of commercial progress. It provides us with a defined opportunity to evaluate solo against the need of a specific data infrastructure. Looking ahead, we will continue the NLRC readiness review process, complete the remaining construction 10 chapters target for October, begin operating licensing preparation, advanced industrial preparation for FOC deployment, and work with customers and partners to mature qualified opportunities and towards definitive agreement. We know that nuclear deployment requires rigorous discipline and execution across licensing, engineering, manufacturing, supply chain, finance, and customer development. And our task is to continue meeting the next milestone in sequence and to communicate clearly as we do so. So we believe our execution over the past year demonstrates that when Terra establish milestones, we are focusing on delivering against it. And we intend to bring the same disciplines to the milestone side. So with that, I wish to thank you for your continued interest in Terra Innovation, for joining us today, and Operator, this is where I conclude our call today.

Ladies and gentlemen, thank you so much for your participation. This does conclude today's teleconference. Please disconnect your lines at this time and enjoy the rest of your day.