Greetings and welcome to the NET Power Incorporated’s Fourth Quarter and Year End 2023 Earnings Conference Call. At this time all participants are in listen-only mode. A question-and-answer session will follow the formal presentation. As a reminder, this conference is being recorded. At this time, I will turn the conference over to Bryce Mendes, Director of Investor Relations. Mr. Mendes, you may now begin your presentation.

Good morning, everyone, and welcome to NET Power's fourth quarter and year end 2023 earnings conference call. With me on the call today we have our Chief Executive Officer, Danny Rice; our President and Chief Operating Officer, Brian Allen; and our Chief Financial Officer, Akash Patel. Yesterday, we issued our earnings release for the fourth quarter and year end 2023, which can be found on our Investor Relations website, along with this presentation at ir.netpower.com. During this call, our remarks and responses to questions may include forward-looking statements. Actual results may differ materially from those stated or implied by forward-looking statements due to risks and uncertainties associated with our business. These risks and uncertainties are discussed in our SEC filings. Please note that we assume no obligation to update any forward-looking statements. With that, I will now pass it over to Danny Rice, NET Power's Chief Executive Officer.

Thanks, Bryce. Hi everyone. Thanks for joining us today. I'll provide some thoughts on the encouraging macro setup for NET Power and how it plays into our three-pillar corporate strategy. I'll recap 2023 highlights and I'll share what's in store for 2024, and then I'll hand it over to Brian and Akash for operational and financial updates. Starting with the macro, we are continuing to see very positive signals that future load profiles will require more low-carbon generation for two distinct but related applications. First, generation that can load follow to balance intermittent renewables, while in other instances serving as 24/7 clean, reliable power for base load industrial and behind-the-meter applications. What makes NET Power very attractive is that our power plan is designed to serve both of these growing markets. Because of low-cost natural gas, the feedstock to our patented process, we believe NET Power plants will be the lowest cost option to do so for both. Anecdotally, our first plant project Permian, which will inevitably and unsurprisingly be the most expensive plant we ever build, is expected to have a lower levelized cost per kilowatt hour than new nuclear, new geothermal, and new hydro. As we move from Project Permian to SN2 and into full-scale manufacturing mode, we expect to quickly begin moving down the CAPEX curve and really begin to differentiate NET Power’s affordability from other forms of reliable clean generation. On the topic of reliable generation, one fairly nascent segment that has gotten the market's attention lately is data centers and hyper-scale data centers in particular, given the robust load projections for AI. These data centers are hungry for power; they're expected to become one of the largest segments for load growth in the U.S. through 2030 and beyond. Because our NET Power plants are designed to deliver low-cost, low-carbon intensity, 24/7 reliable power, we think our product will be the best fit among options for this category. Similar to how we assess all market opportunities, it begins with mapping out where these plants make good sense. The mapping criteria for these bright spots are unique. The mapping layers are existing in-plant fiber, geology for sequestration, ambient temperatures to ensure efficient data center cooling needs, and access to natural gas. One of the criteria that's nice to have but not a need to have is proximity to power transmission lines. Given the 24/7 dispatchability we're designing for our plants, we expect we can go off-grid and put these data centers where they're best suited. This layered map creates quite a number of interesting bright spots across North America for future NET Power plants for this segment. Interestingly, no modifications would be required for our plants. The initial size we're bringing to market with generation one will be targeting roughly 250 megawatts, so we could see a perfect pairing of NET Power plants with a single hyper-scale data center. As you see, these data centers becoming larger, up to 750 to a 1000 megawatts, it really lends itself to NET Power's modular design in order to deploy fleets of three to four NET Power plants to match each data center's load. The reason why I mention this market is it really reinforces the importance of our three-pillar strategy. First, prove this technology at utility scale. We think the world needs NET Power like no other technology, and the sooner we can prove it, the sooner the world can begin implementing a better pathway to energize and decarbonize. Second, build the supply chain to quickly scale deployments in manufacturing mode. Because we have such an enviable patent portfolio around our process, it's really only NET Power that can generate low-cost clean power for the variety of applications we're pursuing, which means we need to be prepared to deploy our plants at meaningful scale to meet the needs of not just the data center industry, but utilities to meet the base load and load-following needs of the grid today. As Brian will touch on in a bit, we're ensuring the partners we pick today have the ability to scale with future demand. And the third pillar is to build a backlog of projects to fully activate the supply chain strategy. We are making good progress on our first originated project OP1 and are actively working on several others, all while advancing discussions with prospective customers across Canada, the U.S., the Middle East, Australia, and Europe for deployments beyond Serial Number 1. Recapping the past year for a minute, 2023 was a pivotal one for NET Power. We raised significant capital through our public listing, which will allow us to develop and improve our technology utility scale. We commenced the feed program for our first utility scale plant, which will be located on an Oxy-hosted site in West Texas. We added Lummus Technology to fulfill our recuperative heat exchanger supply chain strategy, and we announced development on our first originated project, which we located in the MISO region. All of these accomplishments are stepping stones towards deploying NET Power plants at mass scale by the next decade. In 2024 we have a few key milestones to highlight. First and foremost, we plan to begin the first of four phases of combustor and turbo expander equipment validation at La Porte. In a few moments, Brian will provide additional color on these testing campaigns and why they're so important to validating the equipment and expected performance of SN1 at Project Permian. Second, we expect to complete the feed for Project Permian and we'll begin to form the project Strategic Owner group. As a reminder, NET Power considered various federal programs to supplement the funding for SN1, including the DOE grant program. DOE announced the recipients of the grant in December, which didn't include Project Permian. It's important to note that the goal of Project Permian is to deploy our technology utility scale with safe, reliable operations, and the DOE grant would have required Class 6 sequestration, which due to the specific geology in West Texas adds offtake risk and materially increases sequestration costs to the project. When we first announced Project Permian in 2022, our plan was for NET Power and the Strategic Owner Group to fund our first project. This remains the plan and we expect to announce more details regarding the funding strategy later this year. Our third 2024 expected milestone is to finalize and announce our long-term strategic partner for the Air Separation Unit or ASU, one of the critical components of our cycle. Finally, we'll continue to advance additional NET Power origination projects. This includes submitting our application for interconnect and Class 6 sequestration for OP1 and moving a couple of other origination projects along in order to talk about those locations more publicly. So as we wrap up our first calendar year as a public company, our thesis for NET Power is playing out faster than expected. The world needs clean, affordable, and reliable power, and in my mind, NET Power is the only solution that adequately checks each of those boxes. Because of the patent portfolio around the cycle, we’re the only ones who can do it, and so we've got to do it right and we've got to be ready to do it at scale. I couldn't be more excited for what's to come as we continue to develop and deploy a technology the world desperately needs. So with that, I'll hand it over to Brian for operational updates.

Thanks Danny. The team continues to make steady progress developing Project Permian and our NET Power technology. On Slide 8, we highlight several key milestones completed in the last few months as well as milestones we plan to achieve in 2024. For Project Permian in the fourth quarter of 2023, we signed our limited notice to proceed or LNTP with Baker Hughes for the release of long lead material for the utility scale turbo expander. Issuing LNTP for the primary turbo machinery of a power project is one of the key critical paths of the overall project schedule, and it allows Baker Hughes to release orders to its major material sub-suppliers in support of our schedule. More recently, we initiated engineering work with our selected ASU provider and executed our land lease agreement with Oxy for our plant site in West Texas. These achievements allow us to remain on schedule for the project, with initial power generation expected to occur in the second half of 2027 to the first half of 2028. As Danny mentioned, this year we expect to complete Project Permian feed and form the project consortium. This year, we'll also negotiate key supply and offtake contracts and solidify our financing strategy with our strategic partners and owners. It's important to note that NET Power's capital will be the first dollars into the project, ensuring long leads are secured at the appropriate time to maintain schedule ahead of additional capital commitments by our consortium partners. We will order additional long lead components, including the recuperative heat exchanger and major electrical equipment throughout 2024. As it relates to technology development in the fourth quarter, we signed our strategic supplier agreement with Lummus Technology, which designates Lummus as the recuperative heat exchanger supplier for NET Power utility scale plants. I'll touch more on this agreement and its significant implications for NET Power in a few slides. This year, we will develop our initial standard plant process design package, a key licensing deliverable that supports future project feeds in a manner that maximizes standardization and drives down plant capital cost. We also intend to secure a long-term strategic supplier agreement with our identified ASU provider, which we view as one of the most important next steps in standing up our long-term supply chain for the major license components of our cycle. On Slide 9, the validation campaigns report will follow Baker Hughes' established new product introduction and risk mitigation strategies, whereas our previous report testing from 2018 to 2022 was primarily focused on proving our proprietary oxy combustion supercritical CO2 cycle. This upcoming testing will primarily focus on validating and de-risking the Baker Hughes Utility Scale Turbo Expander and how to optimize its operation within our cycle. The ultimate purpose of the demonstration plant and demonstrator campaign is to simulate the nearest conditions possible that the utility scale turbo expander will see at Project Permian. Therefore, the demonstrator turbo expander design, architecture, technology, and material selections all seek to replicate as closely as possible that behavior and environment of the utility scale turbo expander. Equipment validation will follow four primary phases and will continue through 2026. The first phase of testing at La Porte focuses on the turbo expander's burner, which is where combustion of natural gas and oxygen takes place in a CO2 environment. We will test multiple oxy fueled burner configurations, and Baker will select the best burner heading into the next phase. The second phase of testing will take the down-selected oxy fuel burner from Phase 1 and test it alongside the combustion liner and other hardware to form a single demonstrator sized combustor can. The combustor can's purpose is to deliver the high pressure and high temperature mixture of CO2 and water to power the expander. This testing will allow us to optimize the combustion in full La Porte demonstration conditions. The third phase of testing will involve scaling the demonstrator size combustor can from Phase 2 to a utility scale can with clusters of burners, and then testing it with a goal of learning and optimizing the design of the utility scale combustor that will operate at Project Permian. The fourth and final phase will test the full demonstrator turbo expander, including the validation of materials and design architecture used on the turbo expander for Project Permian. Baker Hughes and NET Power will use this testing to tune our analytic and performance simulation models with the acquired test data. We will confirm the demonstrator turbo expander and overall cycle operability and dynamic capability. All of this will allow us to confirm the overall demonstration plant cycle design and plant control system integrated with the Baker Hughes equipment, ensuring that we can minimize residual first-of-a-kind risk prior to Project Permian's initial operations. Turning to Slide 10, our strategic supplier agreement signed with Lummus marks a significant achievement for the continued development of the NET Power cycle. As I mentioned before, Lummus is the designated recuperative heat exchanger supplier for NET Power. Not only do they have an extensive track record of delivering heat exchangers globally, but their 110 plus years of experience in licensing technologies for numerous process industries makes them the ideal partner for NET Power. Lummus has a long history of supporting NET Power technology with an unmatched understanding of the NET Power heat exchanger requirements. As a system integrator, Lummus will leverage its best in class global supply chain of heat exchanger component manufacturers to design and manufacture the most optimal performing and lowest total cost recuperative heat exchanger network for our cycle. They will also be proactively ramping up their capacity to meet future demand for NET Power plants. This partnership further expands our competitive and IP modes. NET Power will own all cycle, process, and controls IP developed, and Lummus can only sell this proprietary recuperative heat exchanger to NET Power licensees. NET Power will also benefit from receiving licensing revenue on Lummus’ future sales into NET Power plants, as is customary for specialty licensed equipment in the process industry. This agreement is a fantastic partnership for us and we're excited to work with Leon and his team at Lummus. Slide 11 provides an all-encompassing view of our strategic supply chain partnerships that have been formed for the main components of our cycle. As previously mentioned, we have initiated engineering work with our selected Air Separation Unit provider for Project Permian. We'll look to form a long-term strategic supplier partnership with them this year and announce more details at that time. Another area of focus this year will be establishing our control systems partner. As we evaluate each supplier partnership, we look for win-win opportunities to leverage our partner's most advanced technologies and to further enhance our competitive position and IP mode. So far, we have been able to find best-in-class partners that are aligned with our vision of delivering clean, affordable, and reliable energy, and importantly to do so at manufacturing scale. With that, I'll pass it off to Akash for financial updates.

Thanks, Brian. Turning to Slide 13, NET Power ended the fourth quarter of 2023 with a strong balance sheet, including approximately $637 million of cash and short-term investments. For the quarter, our total capital expenditures were approximately $8 million, comprised of approximately $5 million capitalized costs associated with the ongoing Project Permian development activities and approximately $3 million spent at La Porte on modifications and upgrades ahead of testing, which is expected to begin this year. Under the current interest rate environment, we continue to benefit from putting our balance sheet cash to work to materially offset our corporate spend. In the fourth quarter, our cash flow used in operations was approximately $3 million. As mentioned last quarter, we expect cash flow used in operations to continue increasing as we build out our organization, progress with the joint development program with Baker Hughes, and ramp up activity at La Porte. Moving to the right side of Slide 13, we have shown an illustrative use of existing capital through the end of 2027 when we expect initial power generation for our first utility scale project. Of the approximately $637 million on the balance sheet, we expect earmarking approximately $200 million for our equity contribution to Project Permian, approximately $175 million for the CAPEX and OPEX at La Porte, as well as Baker Hughes joint development agreement, and approximately $265 million towards corporate G&A, origination work, and other expenditures. NET Power's fully diluted share count was approximately 247 million shares as of December 31, 2023. This was comprised of approximately 212 million Class A and Class B vested shares currently outstanding, 19.5 million shares issuable upon the exercise of outstanding public and private warrants, which will give NET Power an additional $225 million in cash, 1.6 million shares subject to earn-out or vesting requirements, and approximately 14 million authorized shares issued both pursuant to the joint development renewal of Baker Hughes. For a detailed breakdown of our diluted share count, please refer to Notes 10 and 11 of our 10-K. That concludes our prepared remarks. I'll now pass it back to the operator to open up the line for Q&A.

Thank you. Our first question will be from Noel Parks with Tuohy Brothers. Please go ahead with your questions.

Hi, good morning. I had a couple of questions I wanted to ask. When you mentioned the different phases of testing, I believe in the fourth phase there was mention of using the turbo expander process to confirm your analytics that you and Baker Hughes will be utilizing. I'm curious, regarding the analytics for that evaluation stage, will those be proprietary metrics you need to develop, or are they more standardized benchmarks you will be using?

Yeah, Noel, this is Danny. So, the question's really around the configuration and the design of the components, is that right?

Yes, yes.

Yeah, no, these are custom-built Baker components. But I'm going to turn it over to Brian to give you some technical details of the components.

Sure, yeah thanks, Danny. Yeah, Noel, so the analytical tools definitely are proprietary to ourselves in the cycle design and to Baker and their various tool sets on how they design compressors, expanders, turbines, etc. So, with any model or any simulation, right, you're making some assumptions. So just I'd say typical engineering good practice. As you get data, you always go back to your analytics and simulations and verify them or update them.

Thanks for the clarification. As you discussed the steps involved in securing the supply chain, I was also thinking about the Lummus relationship. I wouldn't expect you to go into details, but does Lummus have incentives for sticking to your schedule? I was just curious if you could generally describe what those might involve and how it impacts your management capabilities.

Sure, yeah, I can take that, Danny. Yeah, they absolutely do. I mean, this strategic supply agreement really aligns our incentives together. There's incentives for them to pursue a cost-down reduction program with us. There are incentives to build out the capacity required to ramp up into manufacturing mode. There's incentives to standardize, so it really aligns with our three pillars, which any supply agreement, that's really what we're trying to do is not optimize just for one order Project Permian, but to build out really alignment through all three pillars with these partners.

Great. Just what I was wondering. Thanks.

Thank you. Our next question is from Thomas Meric with Janney Montgomery Scott. Please proceed with your questions.

Hey, good morning, everyone. Dan, you mentioned the power plants as an option for data center power, and I'm curious about unpacking that a little bit more, mainly just curious on how you think or how we should think about the challenges and the opportunities for this kind of power offtake, specifically with respect to CO2 infrastructure build-out and sequestration opportunities?

Certainly. As I mentioned in the prepared remarks, it's essential to place these plants in the right locations, starting with the geology and mapping it out. When people envision data centers, they often only consider Virginia's data center alley due to its significant concentration. However, data centers are prevalent throughout the United States, with Texas potentially having more data centers than the West Virginia area. The key driving factors are where the population is growing and where the demand for data, particularly for AI and proton technologies, is headed. Mapping these factors reveals some promising regions that are not widely acknowledged, such as the Northern MISO region, which includes parts of Illinois, Indiana, Ohio, Kentucky, and West Virginia. There’s potential for West Virginia to emerge as a new Data Center Alley 2.0, offering lower-cost natural gas and more affordable, lower-carbon intensity power than Virginia, especially with the introduction of NET Power. These developments represent paradigm-shifting opportunities that expand possibilities for establishing cost-effective, low-carbon power sources for data centers. The design of our NET Power plant aligns well with the energy needs of these facilities. We have had ongoing discussions with major tech companies about this. It's crucial to highlight NET Power's potential to utility customers to help them understand the pathway this creates before they invest in more expensive and less reliable alternatives. We are focusing on reliability and affordability in our plant design, while also achieving nearly complete capture of CO2. We believe NET Power will be a leading choice for many of these potential applications from both a respectability and sustainability standpoint.

Thanks for that. Super helpful. Brian, on the strategic partners, you went into good detail on Lummus and the heat exchanger, so I won't ask for any more from that, but how do I think about that in terms of a control system partner and just what should I or investors look for over the next couple of quarters?

Absolutely. While it's crucial, we have a bit more time to make this right compared to something like the heat exchanger or turbo machinery. We're seeking a partner who aligns with our three-pillar strategy. The NET Power process involves combining top-tier equipment that must work seamlessly together. The control system we develop, which governs the plant's operation, is a key aspect of our technology and intellectual property. We'll enhance this as we move forward with Project Permian. We're looking for a repeatable scaling partner that respects our intellectual property and is interested in growing alongside us, focusing on cost reduction and key elements that we want to integrate into our partnerships.

Perfect. That's it for me. Thank you all.

Thank you. Our next question is from the line of Wade Suki with Capital One. Please proceed with your questions.

Good morning everyone. Thank you for taking my questions. I just wondering if you might be able to give us a little more detail or color to the extent you feel comfortable on the commercial pipeline, geography. I hate to push you in geographies or type of customers. Any additional color would be great if you don't mind?

Yeah, Wade, I think, as we kind of said in like the opening remarks, the primary application for NET Power is power to the grid. CO2 gets permanently sequestered in the geology. That right now is the biggest market for us. A lot of it happens to be in a lot of the regulated power markets, you know, MISO, PJM, ERCOT, California, Alberta, the Middle East, and so that's obviously the primary market. That's where really we're focusing a lot of the origination efforts. That's where we're starting to see just a lot of inbounds. And, and I think that's really just because that's where the geology is very conducive to sequestering the CO2 where it's been proven. I mean, that sequestration piece is not just the entirety of the environmental proposition of a NET Power plant, but in places like the U.S. where you get that 45Q, it's a huge, huge part of the economic proposition too and in some of those places, you can actually make more money on sequestering the CO2 than you do on generating 24/7 clean power. So those conversations continue to pick up. I would say like the one thing that has been surprising is, I think, a lot of countries, a lot of companies have come out and committed to these net zero ambitions without really doing the calculus to figure out what is that pathway to actually get there. And so we're starting to have more and more conversations with potential customers who are coming to us saying, alright, we've done the math and it just doesn't pencil out trying to get there with just renewables alone. It doesn't pencil out with some of these other options without causing a doubling or tripling of the power prices that I would have to charge my customers. And that's just not tenable. And so now people are saying, how soon are you guys going to be able to scale up into manufacturing mode? So it's really good feedback that we're getting from the market. It's part of the whole thesis of us taking NET Power public in the first place where eventually the market is going to come to this realization that there are no solutions out there that can ensure affordable, reliable, clean power at the scale that the world needs. And unfortunately, I think the world is already committed to this lower-carbon future without really having those solutions in hand to get them there in that pathway. And so NET Power is creating that pathway. And so I think as we think about how we can help our potential future customers, a lot of what Project Permian allows us to do is start to bring strategic partners into Project Permian to get their feet wet, to get them up that learning curve on the NET Power plant so that they're comfortable deploying it across their primary geographic territories. Same with the origination strategy. The origination strategy for us isn't because we want to become an independent power producer; we want to be able to create a pathway to bring in prospective future customers to participate, to operate, and really learn the NET Power plant so that they're super comfortable deploying across their primary areas also. So as we really think about our commercial strategy, it's about creating pathways to global license deployments in the 2030s and beyond. We're starting to have conversations with those customers that are interested in licenses, that are really interested in being able to come into our early projects to really dip their toe in the water and really understand how to run these plants. So the origination piece is just going to be a catalyst to those long-term licensed opportunities. We're seeing it both in the U.S. and across the world, and I think with things like data centers, you're starting to see entirely new markets pop up that have the opportunity to be a major, major source of load for power demand both here in the United States and other parts of the world.

Fantastic, thank you. Not to put you on the spot here, but would your expectation be that I don’t know, within a couple of years of Project Permian coming online, we might have SN2 or OP2 coming online shortly thereafter or somewhere in that timeline, is that a fair way to think about it?

Yeah, that's right. I think the way we're looking at all of these origination projects, because we do have the benefit of time, because the first plant will be coming online mid-2027, end of 2027, beginning of 2028, that range there. We're really figuring out now where do we want SN2 to be, the second utility scale plant. So with OP1 that project that we announced, we'll be in the MISO region, and we're going to be filing our interconnect application there. I think that MISO window opens next week and it'll be open for 30 days. So we'll get our interconnect application in there during that window. We're working on our Class 6 permits with our partner up there. We're going to be in a place where we're going to have all permits in hand to do power to the grid sequestration under the ground well in advance of that plant. If we said we want it to be SN2, it's going to be in a position to be SN2. I think the determination of if it is SN2 or if it's SN3 or SN4 is really a function of other economic and more strategic projects that could leapfrog it and become SN2. So you're really going to be seeing from us doing over the next few years with origination, but also with licensed opportunities, just continuing to build up this backlog of projects and we'll be able to slot them according to their importance to the NET Power strategy into the long-term proposition for the shareholders.

Fantastic. Thank you so much. Appreciate it.

Yep. Thanks Wade.

Thank you. Our next question is from Betty Jiang with Barclays. Please go ahead with your questions.

Good morning. I have a question for Brian. Just wondering if you could provide a bit more color around how you think about the risk profile for each of the validation phases at La Porte on Slide 9. Just trying to understand basically is Phase 1 and 2 just testing the equipment designed by Baker and like what are the most important pieces that need to get de-risked? And then also, once you've proven the operation at the demonstration scale, is it relatively less risky to scale it up to utility scale? Thanks.

Sure, thanks for the question. So, the phases are sequenced in order with each phase of testing validating and retiring key technical risks, which are shown on the slide. So in this way, there's no specific test that let's say is the highest risk, but they're building upon each other. So they're all important, I guess to say, a reminder that we're developing the utility scale, or Baker is developing the utility scale turbo expander in parallel. So really, this is about validation. Yeah, it both happens completely in parallel. I don't know if I answered your question fully, but I would say that all the phases are important. They all build on each other. Each one retires certain risks or certain results that Baker is looking to see, and each one builds in order from there.

Got it. So the demonstration equipment is actually what's currently on the plant right now?

So the plant, yeah, the plant was built, it exists, it's there. We are making modifications to it that are specific to the Baker Hughes turbo expander and the testing for the combustors. So, Baker's equipment will be shipping in this year and over the future years. It will basically be placed where the prior turbo expander was located.

Got it. When would the Baker's turbo expander be arriving on site and when will it get connected to the plant?

Yeah, that'll be in the 2026 timeframe. So between now and then we're doing combustor testing, which is a major component of the turbo expander. So again, what we're doing is really, yeah, we're demonstrating the combustion system, both for the demonstrator size, which happens in Phase 2 and the utility scale combustor size. So in essence, before we start Project Permian, we will have already operated the full utility-sized can at La Porte.

Got it. Understood. And the follow-up on the licensing fee, just on the licensing fee that's related to Lummus, is it incremental to the fees that you have originally laid out for the NET Power cycle technology, and if so just how material is it relatively?

Yeah, I can take that, Betty, it is Akash. Yeah, it is additive, right, but as we said before, we're going to go through a pricing for each license we sell. It's all going to be predicated upon plant economics. If you see a plant that is earning 20% plus returns, once we come down the CAPEX curve, we should be charging more for a license. So it really is the license fee for operating, constructing, and operating in NET Power plants will be done on an individual project-by-project basis. As far as the Lummus and any other equipment licensing fees, it is too early for us to go out and say what that number is going to be, but it is a fraction, I'd say, of what our plant license is and it's really formulaic to incentivize and to come down the cost curve and share in the benefit of that. So, it is too early for us to say what that number is given we haven't placed an order yet for any third-party heat exchangers, but there is a formulaic way of us approaching what that equipment licensing fee will be.

Got it. No, that's clear. Thanks for the color. Thank you.

Thank you. At this time, we've reached the end of our question-and-answer session, and I'll turn the floor back to Danny Rice for closing remarks.

Thanks everybody for joining us today. Really excited to share this update with you and share the key 2024 milestones really in the foreground for the next few years. We're really focused on steady progress through COG on Serial Number 1, which continues to stay on schedule. And really as we talked about in the prepared remarks and some of the Q&A, in the background we're seeing significant step changes in market sentiment and total addressable market that really set us up for long-term success. So it's critically important we do it right with Serial Number 1, and in doing it really unlocks what we think is going to be one of the largest, most valuable total addressable markets for really any company in the world today. So, huge expectations for us, and this team is up to the challenge and we are deeply appreciative of your support on this mission to deliver the energy trifecta. Have a good day.

Thank you. This will conclude today's conference. You may disconnect your lines at this time. Thank you for your participation and have a wonderful day.