Oklo Inc. Q4 FY2024 Earnings Call

Thank you for standing by. My name is Karen, and I will be your conference operator today. At this time, I would like to welcome everyone to the Oklo Inc. Fourth Quarter 2024 financial results and business update call. All lines have been placed on mute to prevent any background noise. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star followed by the number one on your telephone keypad. To withdraw your question, you may press star followed by the number one again. I'll now turn the call over to Sam Doane, director of investor relations. Please go ahead.

Thank you, operator, and good day, everyone, and welcome to Oklo Inc.'s fourth quarter and annual company update and earnings call. Joining me today are Jake DeWitte, Oklo Inc.'s co-founder and chief executive officer, and Craig Bealmear, Oklo Inc.'s chief financial officer. Earlier today, after the market closed, we announced our fourth quarter and full year 2024 earnings. You can find our shareholder letter and supplemental slides on the investor relations page of our website. Before we begin, I'd like to remind everyone that our discussion today, including our remarks and the Q&A session, will include forward-looking statements. These statements reflect our current views on trends, assumptions, risks, uncertainties, and other factors that could cause actual results to differ materially from what we discussed today. We encourage you to review the forward-looking statements language in our shareholder letter and supplemental slides for additional context. You can also find the discussion of relevant risk factors in our most recent SEC filings. Oklo Inc. assumes no obligation to update these 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 DeWitte, Oklo Inc.'s co-founder and chief executive officer. Jake?

Thanks, Sam, and thank you all for joining us today. We're excited to share our quarterly and full-year update and provide insights into Oklo Inc.'s progress over the past twelve months. Oklo Inc. was founded on the belief that there are significant opportunities for advanced nuclear technology. We saw an industry that had stagnated and recognized the need to rethink how new nuclear technologies could be brought to market. We started Oklo Inc. to seize this opportunity and fulfill our mission to deliver clean, reliable, and affordable energy on a global scale. The momentum behind nuclear energy has never been stronger. The new administration has made it clear that nuclear power is a cornerstone of America's energy future, with direct policy actions and public endorsements supporting its expansion. Key voices in government and industry are reinforcing the need for advanced nuclear deployment. Energy Secretary and former Oklo Inc. board member Chris Wright stated that the long-awaited American nuclear renaissance must launch now. He said, 'We're at the start of Manhattan Project two. It is critical, just like Manhattan Project one, that the United States wins this race.' He has emphasized the administration's commitment through financial and regulatory support to enable rapid deployment and commercialization of next-generation nuclear technology. Additionally, President Trump has recently highlighted the advantages of small, scalable nuclear plants. These statements reflect a growing consensus that nuclear is essential for energy abundance and small advanced nuclear reactors provide a practical, cost-effective path forward. The demand for power is growing at an unprecedented rate. While AI-driven data centers are a major contributor, they are not the only source of this growth. This slide shows other sectors—residential, transportation, commercial, and industrial—are also driving sustained energy needs. Total US power demand is projected to grow greater than 160% through 2030, with data centers contributing approximately 31% of this increase. We've demonstrated that Oklo Inc. is uniquely positioned to take advantage of this staggering potential growth. Our build, own, operate model and small scalable powerhouse designs are well suited for a broad range of applications, ensuring we can meet growing energy needs across multiple sectors. At Oklo Inc., our strategy is built on three core pillars that we believe will fundamentally transform how nuclear power is delivered to our customers. First is our business model. We've designed a model that simplifies the process for customers to purchase clean power at scale, eliminating traditional complexities and points of friction. Second is our reactor size. Our small, scalable reactors allow us to achieve greater efficiency while meeting customer demand incrementally. This approach not only optimizes our financial performance by creating a recurring revenue model, but also delivers resilient and redundant power solutions ensuring operational reliability. Finally, our technology sets us apart by utilizing technology backed by centuries of cumulative reactor operation experience. Our use of the plutonium coolant provides significant economic and operational advantages. This technology underpins our ability to deploy advanced new phase solutions that are both efficient and cost-effective. 2024 was a transformative year for Oklo Inc., marked by major commercial, technological, and regulatory milestones. We started the year with a 500-megawatt partnership with Equinix, one of the largest colocation data center companies in the world, supported by a $25 million investment in the form of a prepayment. This kicked off a partnership wave between nuclear technology companies and AI data center companies. Building on this momentum, we signed a letter of intent with Diamondback Energy for 50 megawatts, demonstrating an emerging demand for nuclear energy in the oil and gas sector as companies seek long-term sustainable energy solutions to electrify their operations. We also expanded our presence in the data center space, sending a letter of intent with Prometheus HyperScale to deliver 100 megawatts of clean power to generative AI infrastructure. We ended the year by signing what is potentially the largest corporate clean power agreement ever with Switch for 12 gigawatts of power. To put the magnitude of this agreement into perspective, that is equivalent to approximately 1% of the US grid. This is a massive opportunity for us, not just because of the size of the power need, but for the multipronged partnership with Switch to work together to bring nuclear to market at scale. One highlight of this partnership is the similarity between building data centers and building small reactors. Data centers are fixed civil assets into which prefabricated and manufactured components and systems are installed, and electrical and cooling systems are tied together to move power and heat through the system. Small reactors share those similarities: fixed civil facilities into which prefabricated and manufactured components are installed, and electrical and cooling systems are integrated and tied together. Working with Switch's expertise will likely accelerate deployment, and we are excited about how this will progress. In May 2024, we went public on the New York Exchange under the ticker OKLO, a defining step in our growth. Beyond our commercial success, we made major progress in our regulatory strategy and in building our nuclear technology platform. Our Idaho National Lab, or INL, powerhouse project remains on track to be the first commercial small nuclear reactor built in the US, with key DOE approvals and an environmental compliance permit secured.

We also advanced our Aurora fuel fabrication facility

receiving DOE approval for its safety design strategy to produce advanced reactor fuel domestically. Oklo Inc. was the only advanced nuclear company with high assay low enriched uranium, also known as HALEU, fuel secured for its first deployment. This is a significant competitive advantage that ensures we can move forward without fuel supply chain delays. We also successfully demonstrated our end-to-end fuel recycling process, proving our ability to close a nuclear fuel cycle and leverage both fresh and recycled fuel for long-term sustainability and growth. As we continue to execute on strategy, we remain committed to keeping the market informed with clear and consistent updates on our progress. Our company updates are structured around six key focus areas: project execution, reactor licensing progress, fuel fabrication and recycling, customer pipeline development, strategic partnerships for corporate and business development, and financial updates. The last quarter was marked by major commercial, regulatory, and technology milestones that drive us toward commercialization. To meet increasing customer demand, we expanded our powerhouse offering to support up to 75 megawatts of power output, building on the same design architecture of the 50-megawatt powerhouse to deliver more power without changing our reactor design footprint or regulatory framework. The scalable platform strengthens our ability to serve energy-intensive industries efficiently. On the regulatory front, we continue to advance key approvals with the NRC and DOE, ensuring steady progress towards deployment. We are working with the NRC through a pre-application readiness assessment for our Aurora Powerhouse combined license application at Idaho National Laboratory. Commercially, we signed a landmark 12-gigawatt master power agreement with Switch, underscoring the growing demand for reliable carbon-free baseload power and positioning Oklo Inc. at the forefront of the energy transition. We're also strengthening our capabilities through strategic partnerships. Our agreement with Our Power provides near-term natural gas solutions as a bridge to nuclear, offering customers flexible energy options that can accelerate time frames. Additionally, our memorandum of understanding with Lightbridge explores co-locating commercial fuel fabrication and recycling, reinforcing our long-term fuel strategy. Beyond power generation, we've expanded into the high-value radioisotope market with the completion of our Atomic Alchemy acquisition. We continue to make progress towards near-term radioisotope opportunities and in the regulatory pre-application work to deploy their VIPER reactor. We're also driving next-generation materials innovation through collaborations with the DOE and Oak Ridge National Laboratory. With strong financial positioning, scalable technology, and growing customer demand, we enter 2025 with clear momentum, accelerating toward deployment and cementing Oklo Inc. as a leader in the advanced nuclear space. Over the years, we've made significant progress in refining our powerhouse platform. We initially developed both 15-megawatt and 50-megawatt designs and consolidated our approach around a 50-megawatt architecture. This allowed us to scale power output efficiently by adjusting fuel load and heat exchangers. With this approach, we can flexibly deliver between 15 megawatts and 75 megawatts from the same design platform, adapting to different customer needs while maintaining a streamlined supply chain and regulatory approach. The decision to scale up to 75 megawatts was driven by demand characteristics from large energy users, particularly data centers. This power range aligns well with the infrastructure of these customers, including at the data hall level. It reduces the number of reactors needed to support gigawatt-scale projects. We anticipate the majority of our plants will operate in the 60 to 75-megawatt range. Importantly, this update does not introduce new technical or regulatory design risk. We're leveraging the same core technology, optimizing it to deliver more power while maintaining the benefits of a compact, repeatable system. By focusing on design, flexibility, scalability, and cost efficiency, Oklo Inc. continues to provide innovative and capital-efficient nuclear power solutions for the evolving needs of our customers. Oklo Inc. continues to make steady progress on the first commercial Aurora Powerhouse at the Idaho National Laboratory, or INL.

We are actively engaging with the US Nuclear Regulatory Commission through

a pre-application readiness assessment for our Aurora Powerhouse combined license application at Idaho National Laboratory. This process enables NRC staff to review and familiarize themselves with Oklo Inc.'s licensing materials ahead of the formal application submission, streamlining regulatory review and positioning us for an efficient approval process. We have submitted our licensed operator topical report, a key step in enabling our fleet-based licensing approach. This approach lowers costs, accelerates deployment, and enhances operational efficiency. Beyond licensing, we have begun drilling, testing, and site characterization efforts at INL, critical steps toward construction. Backed by a DOE site use permit, the project remains on track for deployment in late 2027 to early 2028. At Oklo Inc., our business model and licensing strategy provide a more streamlined regulatory pathway compared to conventional nuclear approaches. Rather than pursuing separate construction and operating licenses, or obtaining a design certification to then later license out to customers who then have to obtain the actual commercial permits and/or licenses, we take a direct path by securing a combined license or COL. This single-step approval allows us to build and operate without additional regulatory hurdles. Unlike the design certification process, which requires multiple and separate NRC reviews, and unlike the Part 50 approach, which requires separate NRC reviews and approvals for construction and operation, the COL includes all key NRC-specific reviews upfront. This integrated approach eliminates duplicative reviews and accelerates deployment. Ultimately, only after completing these regulatory steps can a company be operational. Our approach ensures that we reach those milestones faster and with greater certainty. As I just alluded to, what sets Oklo Inc. apart is our direct-to-COL approach. We secure a combined license in one streamlined process. Others in the industry pursue design certification or construction permits first, requiring separate construction and operating approvals later. We believe this makes our approach faster, more efficient, and more aligned with deployment. Because we build, own, and operate our powerhouses rather than selling designs or licenses, streamlining regulatory approval under a single process makes strategic sense. Securing our first COL will also serve as a reference license for our subsequent COL applications, allowing future applications to focus only on site-specific differences, greatly reducing approval timelines. By minimizing those differences, we can gain faster regulatory approvals for each additional plant, enabling rapid scaling. This approach not only simplifies licensing but strengthens our ability to bring advanced nuclear power to market faster and more efficiently than traditional models. Our path with INL paves the way for future sites through subsequent combined licenses, reducing review timelines under the Advanced Nuclear Deployment Act and accelerating deployment at scale. Oklo Inc.'s licensing strategy is not just about getting approval; it's about getting to multiple powerhouse deployments, operation, and revenue generation faster than conventional approaches. At Oklo Inc., we have built deep expertise in working with both the NRC and DOE, making significant regulatory progress as we move toward deploying our first commercial Aurora Powerhouse. We completed key pre-application work with the NRC, including safety analysis, operational programs, and environmental findings. Additionally, we submitted fleet-based license operators and staffing methodology topical reports, important milestones that enable a standardized fleet-wide staffing model. Unlike traditional nuclear plants, which require site-specific operator licensing, our approach improves efficiency, reduces costs, and accelerates deployment. Alongside our energy progress, we are working closely with the DOE since our first commercial powerhouse will be deployed at the Idaho National Lab. We finalized the memorandum agreement with DOE, granting Oklo Inc. access to begin critical site investigations, a major step that allows us to conduct essential groundwork to prepare for construction. With this approval, we have begun site characterization activities, including drilling to study soil and rock conditions. Looking ahead, we are advancing the quality assurance program description for design, construction, and operations, which is currently in progress. These milestones reinforce Oklo Inc.'s strong regulatory momentum and clear path to deployment. Each step moves us closer to our goal of delivering advanced nuclear power through a streamlined, efficient regulatory approach. Additionally, the NRC is actively advancing the implementation of the Advanced Nuclear Deployment Act, which is modernizing the regulatory landscape for advanced nuclear. A key component of this effort is a significant reduction in licensing fees, making regulatory processes more accessible and cost-effective for advanced reactor developers. The NRC has proposed cutting the hourly rate by nearly 55% for advanced reactor applicants. This change, set to take effect on October 1, 2025, directly lowers the financial burden of licensing. Securing fuel is a critical priority for Oklo Inc., and we continue to make strong progress. We have successfully secured fuel for our first core load at INL through a competitive process and are expanding access for future deployments. Our MOU with Centrus establishes a long-term HALEU supply, ensuring a scalable domestic source. It is important to highlight that Centrus is already producing HALEU today and continues to scale their production. Beyond securing fuel, we are also collaborating with Lightbridge, which is developing next-generation light water reactor fuels. We are exploring opportunities where Lightbridge could manufacture their fuel at our fuel fabrication facility, given we are both fabricating the pellet fuel forms. Furthermore, we are working together on our recycling activities and evaluating the benefits of recycling used Lightbridge fuel into our reactors. With that, I'll turn it over to Craig for customer development, Atomic Alchemy, and financial update.

Thank you, Jake. Oklo Inc.'s powerhouses are purpose-built to meet the growing energy needs of numerous customer segments, including AI data centers. As Jake has already highlighted, our 50-megawatt design now offers the flexibility to deliver up to 75 megawatts of power, demonstrating our modular power offering can scale with customer demand, enabling Oklo Inc. to meet higher customer capacity with fewer deployments. We expect Oklo Inc. powerhouses to have construction timelines of 18 months, providing a very competitive time-to-market option for nuclear reactors. Our cost-oriented design and engineering provide customers with competitive pricing. Oklo Inc. is capable of providing data centers with high reliability through the development of redundant powerhouse facilities and can deploy multiple powerhouse facilities to a single site that matches the phased deployment approach of data center campuses. Finally, Oklo Inc.'s small land footprint enables the company to pursue a colocation model that provides customers with greater site flexibility than competing alternatives. Moving to our next slide, I would like to highlight two product features that are resonating with data center customers: phased deployment and reliability. The first product feature that our large customers like about Oklo Inc.'s powerhouse approach is the ability to build and deploy multiple small powerhouses in parallel rather than relying on a single large-scale plant with long lead times. This phased and modular expansion capability allows us to better align with specific customer timelines and capacity returns. Our data center customers appreciate the safe scaling capabilities of multiple reactor projects. The second product feature that resonates with our data center customers is our ability to build in redundant powerhouses to achieve greater than 99% reliability. Reliability is critical for AI-driven data centers, which operate 24/7 and require constant, uninterrupted power. Even brief outages can result in significant data loss, service disruptions, and financial consequences. Unlike large-scale reactors that can experience complete shutdowns for maintenance, our modular powerhouses are designed so that routine or even unexpected maintenance on one unit does not impact overall system performance when there are more than one facility built on-site. This built-in redundancy can enable behind-the-meter operations as well as reduce the size of the customer's interconnect with the grid. I would now like to talk about our relationship with Switch. Our product-market fit with the data center industry continues to be validated through major customer announcements. In December 2024, Oklo Inc. announced it had secured one of the largest corporate power agreements in history, a 12-gigawatt master power agreement with Switch to be deployed through 2044. For context, this is equivalent to 1% of US grid capacity. Switch is a leader in designing, building, and operating modular and scalable data centers. Their facilities support the most demanding AI, cloud, and enterprise clients, requiring reliable and sustainable power solutions. Switch has been a leader in clean power procurement and believes nuclear is critical to the future of AI data center development and operation. This agreement is the result of extensive collaboration to understand Switch's needs and tailor a solution that ensures long-term energy reliability. It underscores Oklo Inc.'s role in powering next-generation data infrastructure while establishing a significant long-term revenue stream. The delivery of this partnership lays the foundation for broader collaboration, aligning Oklo Inc.'s investment strategy, government and public affairs efforts, and supply chain optimization efforts to support large-scale deployment with a strategic customer. We often get asked why Oklo Inc. hasn't signed our purchase agreements or PPAs. The answer is that Oklo Inc. is taking a measured approach to reduce risk to the company and get the most attractive terms for the company and our investors. We are looking to implement a comprehensive risk-mitigated strategy for customer acquisition and project execution. On the previous slide, I talked about the master power agreement, or MPA, that we have in place with Switch. Today, we are signing MPAs with customers that establish a framework for the overall partnership. Once a master power agreement is established, we use it as a platform for multiple partnership elements, which include power sales, corporate and asset investment, supply chain optimization, and public relations and permitting. The master agreement also establishes the starting point for PPA negotiations. MPAs start to define potential target sites or regions, total and phased power delivery, timing of capacity additions, and a pricing range. With this framework established, Oklo Inc. can begin site feasibility analysis with customers and start specific PPA negotiations. The structure is iterative as the market evolves. We are applying this structure across our value chain, from fuel supply to component manufacturing, creating a repeatable and scalable model for asset deployment. That should enable Oklo Inc. to move quickly while maintaining capital efficiency. As a result of our efforts over the last 18 months, Oklo Inc.'s customer pipeline has expanded significantly, driven primarily by growing data center demand. We signed agreements across key customer segments, with demand shifting towards our 75-megawatt powerhouse offering to meet large-scale AI-powered needs. Our pipeline has grown from 700 megawatts at the announcement of our business combination to over 14 gigawatts today, supported by major customers like Equinix, Prometheus, Switch, and Diamondback Energy. As demand accelerates, we continue to advance discussions with additional customers to further expand our pipeline. I'd now like to talk about our partnership with Our Power. Oklo Inc. and Our Power are partnering to bridge the gap between today's power needs and the transition to advanced nuclear. This phased model ensures data centers secure reliable power now while seamlessly moving towards a clean, long-term energy solution. The approach has three phases. Phase one: immediate power deployment. Our Power's natural gas generators should be in a position to be deployed within 24 months to meet urgent demand opportunities. Phase two: transition to advanced nuclear. As Oklo Inc.'s Aurora powerhouses come online, they will integrate into these sites, delivering new clean baseload power. Phase three: long-term energy resilience. Over time, Aurora Powerhouses will become the primary energy source, with Our Power generators shifting to an auxiliary power delivery role. This enhances grid stability, allowing Our Power to supply surplus power when needed. This approach meets urgent power needs today while enabling a clean, scalable energy future. We have successfully closed the $25 million acquisition of Atomic Alchemy. This transaction marks Oklo Inc.'s strategic expansion into the high-growth radioisotope market. We view this as an extremely attractive bolt-on acquisition that enhances Oklo Inc.'s nuclear technology platform and diversifies our customer base to include critical industries such as space, defense, industrial applications, medical diagnostics, and semiconductor manufacturing. This acquisition is not expected to have material near-term operating cost increases, and it has the potential to accelerate revenues through the sale of radioisotopes. This transaction was primarily funded via stock and represented less than 1% dilution to Oklo Inc. shareholders. Additionally, shares issued to the Atomic Alchemy founders are subject to multi-year vesting to drive strong long-term alignment. The next slide focuses on some acquisition highlights. Atomic Alchemy will enhance Oklo Inc.'s technology portfolio and serve as a standalone radioisotope business with significant market potential. Acquisition highlights include the following. Massive market demand, limited supply: The radioisotope market is projected to exceed $55 billion by 2026, with applications spanning medical imaging, cancer therapies, space and defense, and next-generation semiconductor manufacturing. Aging facilities are struggling to keep up with demand, creating a critical supply gap. Benefits to Oklo Inc.'s energy and fuel business: Collecting high-value radioisotopes from recycling co-products enhances the economics of fuel recycling. Growth opportunities: We are already exploring joint ventures with customers in radiopharmaceuticals and advanced silicon doping for semiconductor manufacturing, positioning Oklo Inc. for long-term success in high-growth industries. Revenue and milestone acceleration: Radioisotopes are among the most valuable materials on earth. Take actinium-225, for example, which sells for $400 per nanogram or an astonishing $400 billion per gram. With our recent acquisition of Atomic Alchemy, we are positioning Oklo Inc. to capitalize on this high-margin market. Our radioisotope demonstration project is already underway, and we could begin generating revenue as early as the first quarter of 2026, unlocking significant near-term value for our business. This acquisition is a force multiplier, accelerating our entry into the radioisotope sector. We are excited about the opportunities ahead and confident in the value this can create for our shareholders. I'd now like to talk about recent board appointments. With Chris Wright's confirmation as the new US Secretary of Energy, Oklo Inc. needed to fill an open board seat. In doing so, we took the opportunity to strengthen our board by adding two leaders: Daniel Poneman and Michael Thompson. Daniel Poneman brings decades of experience in nuclear energy and national security. Most recently, he served as president and chief executive officer of Centrus Energy, leading the company to profitability and deploying the first US-based centrifuge uranium enrichment facility since 1954. Before that, Dan was deputy secretary of energy, overseeing energy technology and nuclear security and playing a critical role in international nuclear negotiations and US energy security policy. Michael Thompson has significant experience in capital markets and technology investments. As managing partner at Reinvent Capital, he has worked with some of the most innovative technology companies. Previously, he founded and led EHR Capital, a New York-based hedge fund, and has served as an investor and board advisor across multiple high-growth sectors. With these additions, Oklo Inc.'s board is well-positioned to guide the company through its next phase of growth, ensuring strong governance as we execute on our strategy to deliver advanced nuclear power. I'll now provide a summary of our financials. Oklo Inc.'s full-year operating loss was $52.8 million. This included a one-time fair market value expense of $7.8 million related to earn-out shares payable to Oklo Inc. staff who held options at the time of the SPAC closing, as well as $4.7 million of non-cash stock-based compensation expense. When adjusting for these non-cash amounts that were not included in our original 2024 budget, you get to $40.3 million, which is at the low end of our forecasted range of $40 to $50 million. In preparing our year-end consolidated financials, Oklo Inc. made two changes related to the accounting presentation associated with our business combination with Altsea that occurred in the second quarter of 2024. First, management received additional guidance that led us to reduce the fair market value of our SAFE notes at the closure by $2.1 million, improving our full-year net loss to $73.6 million. Second, we were directed that the tabular presentation of the deemed dividend on our quarterly income statement for earn-out and founder shares was not required, but this was already covered in the accompanying footnotes. We elected to reflect this as a material weakness in other information in our 10-K for 2024, in the area of infrequent and complex accounting. It should be noted that these changes come from our business combination transaction that closed in the second quarter and actually result in improvement to our financial statements by minimizing our net loss attributable to common stockholders, from a loss of $563 million to a loss of $73.6 million. We are working to address this material weakness and expect to have it remediated by year-end. Oklo Inc.'s full-year cash used in operating activities was $38.4 million. This balance is derived from a net loss of $73.6 million, partially offset by $40.4 million in non-cash impacts. These non-cash impacts included $27.9 million in fair market value charges associated with previously converted instruments, as well as non-cash stock-based compensation charges of $12.5 million. At the end of the year, cash and marketable securities were $275.3 million, primarily driven by the $276 million in proceeds net of fees received at the closing of our business combination. This cash balance generated approximately $7.7 million in interest income in 2024. Looking forward to 2025, we expect cash used in operations to be in the range of $65 million to $80 million. This year-on-year growth from 2024 is driven by increases in headcount, initiation of procurement activities in support of our first powerhouse at the Idaho National Lab, license application fees, progressing activities in support of fuel recycling, and a small increase resulting from our recently acquired Atomic Alchemy business. To close, we believe there are six factors that make Oklo Inc. a compelling investment proposition. First, technology and size based on proven fast reactor technologies that we can deploy at scale to reduce complexity, cost, and delivery time. Second, an attractive business model that is customer-oriented and enables recurring revenue and profits. Third, superior economics that can deliver power at competitive cost. Fourth, a diverse and growing customer base with interest across multiple market sectors. Fifth, a streamlined approach to regulatory approval underpinned by our combined license application process that leverages years of experience working with the NRC. And finally, a well-capitalized balance sheet that positions us well for the implementation of our business strategy. With that, I would like to thank you for your time. Jake and I will now open up the call for questions. Thank you.

The first question comes from Ryan Pfingst from B. Riley. Your line is open.

Hey, guys. Thanks for taking my questions. First, was the decision to go from 50 megawatts to 75 driven by customers you already have in your pipeline or potential customers you're talking to today? And do you see obvious benefits for your economics with the greater output?

Yes.

Thanks, Ryan. Much of this decision is informed by what we're seeing in the market from customer interest and the way data center architectures are evolving. There's a sweet spot between 50 and 75 megawatts, and more specifically between about 60 and 72 megawatts. That range targets where we see customer demand. Given we have some latent extra capacity in the design, it made sense to unlock the ability to reach that higher output and provide customers more flexibility now rather than constrain the design to 50 megawatts. Many of the actual buildings that make up a campus that could be gigawatt scale are smaller sub-units—data halls—that fit in that 50 to 75-megawatt range. Every customer has their own design, but this range aligns well with their IT, heating, and cooling loads. Because a larger portion of our plant CapEx is non-fuel, increasing megawatts in this range gives us more flexibility. We size the core accordingly to match the full 15 to 75 range, but we expect to see a convergence in the market toward the 60 to 75-megawatt range. This change ties into customer needs and works favorably for our economics by better matching plant size to data hall demand.

And, Ryan, to add, there will be some economic benefits because, for example, if a customer wants 150 megawatts delivered, that moves from three 50-megawatt powerhouses to two 75-megawatt powerhouses, providing economies of scale.

Got it. I appreciate that detail. And I'll stick to the customer side. Now that you have a pipeline of 14 gigawatts, do other potential customers see that and think Oklo Inc. is pretty full and seek power elsewhere, or are your discussions progressing at the same pace following your announcement of the Switch agreement?

I think it generally accelerates engagement for some customers because they see the momentum and want to ensure they don't miss opportunities. Our dynamics with customers are iterative; we engage based on what makes the most sense for both parties. There is a scarcity effect that we expect will be positive. We also see customers who want to work with us to expand capacity and bandwidth so we can take on more projects. That creates a 'more begets more' effect and we are structuring partnerships to capture that demand while staying focused on execution.

The next question comes from Jeffrey Campbell from Seaport Research. Your line is open.

Good afternoon, and congratulations on a pretty strong year. Jake, regarding the increased range of the PowerHouse to 50 to 75 megawatts, does this require any kind of change in your total license approach or is it already covered? What kind of effect is there?

We have structured the change to have minimal regulatory impact. The infrastructure, design work, and analysis broadly accommodate the increase to 75 megawatts. This platform allows us to go between 15 and 75 megawatts without introducing new technical or regulatory design risks. Traditionally, nuclear projects assume fixed heavy CapEx and maximize power, but our design approach provides more flexibility and shifts sensitivity toward fuel rather than large structural changes. There are some benefits at 75 megawatts from fuel efficiency, but overall the licensing work we've done carries over to this size range. Staying within this range is intentional to avoid tipping into areas that would introduce additional regulatory or technical complexity.

And can you describe broadly what the readiness assessment entails and does it derisk your actual COLA application?

The readiness assessment is an optional pre-review with the NRC that functions as a prereview of our application materials. It helps convene NRC staff and ensures we're aligned on the application content and review approach. The assessment derisks both the content and the timeline of the review by surfacing issues early and helping NRC plan their independent safety analysis. TerraPower used a readiness assessment before submitting their construction permit, which proved valuable, and we expect a similar benefit for a COL application. We are approaching submission in phases and aiming to submit the full COL application by the end of the year, targeting Q4 to take advantage of the Advanced Nuclear Deployment Act changes that take effect October 1.

The next question comes from Vikram Bagri from Citi. Your line is open.

Hi. Thanks for taking the question. Is there any initial feedback you could share on your discussions with the NRC as you work towards that pre-application readiness assessment? How many meetings have you been having, what sort of discussions are you having, and in terms of timing, you mentioned expecting the COLA to be submitted this year. Is that planned to occur once certain aspects of the Advanced Nuclear Deployment Act become effective? Should we expect that sometime in the fourth quarter?

Engagement with the NRC has been continual. Since we started in 2016, we have had a large number of meetings, white papers, and submissions—well over several hundred interactions cumulatively. We're developing application content to demonstrate how we meet regulatory requirements and the readiness assessment helps the NRC converge on the appropriate review approach. Doing the readiness assessment is valuable to derisk the process and position us to submit phase one and then the full COL application quickly. We are targeting submission of the full COL application by the end of the year, with the timing dependent on readiness assessment feedback. Given the benefits of the Advanced Nuclear Deployment Act, which takes effect October 1, we are targeting Q4 to capture those provisions.

The next question comes from Eric Stine from Craig-Hallum. Your line is open.

Hi, Jake. Quick question: how has the growing scarcity in your pipeline changed discussions around prepayments such as the Equinix prepayment? Are counterparties looking to prepayments as a way to secure a spot?

Each customer has different priorities and tools available. We've learned that signing PPAs early can leave value on the table, so we are using master partnership agreements to structure relationships. Prepayments are one flavor among many—including strategic investments, joint ventures, supply chain collaboration, land leases, and in-kind engineering work. The Switch relationship is a good example where in-kind value and collaboration on engineering and construction practices can co-accelerate deployment. Their experience building data centers provides carryover benefits for reactor deployment through shared engineering, procurement, and construction capabilities, which helps accelerate timelines even if that value is not immediately visible on the balance sheet. We tailor the commercial structure to what provides the highest mutual value and reduces execution risk.

Thanks. For a follow-up on Atomic Alchemy—you mentioned potential revenues as early as Q1 2026 and a demonstration project underway. What are the signposts to watch to track progress toward that revenue timing, and what factors might push it out?

There are several signposts to watch. Progress on facility build-out and capabilities, sourcing of target materials, regulatory and permitting milestones, and successful completion of the demonstration irradiation campaigns are key. Atomic Alchemy's approach leverages mature technology and focuses on a pragmatic reactor design optimized for isotope production rather than building a high-cost, high-performance system. That approach helps accelerate timing. We also expect synergies with our recycling efforts, enabling co-products from recycling to be used in high-value isotope markets. Idaho National Laboratory is already producing isotopes, so the INL site is a strong candidate to produce near-term isotope revenue from our first plant as well. We'll provide regular updates in our quarterly cadence that will show progress on facility readiness, regulatory permits, and demonstration milestones.

The next question comes from Craig Shere from Tuohy Brothers. Your line is open.

Good afternoon. Did I hear correctly that your 75-megawatt powerhouse would have similar non-fuel CapEx to the 50-megawatt design? And does the more scaled plant design, with increasing fuel needs and CapEx including fuel, necessitate front-loaded customer payments or project equity participation if you're moving to faster scaled deployments? Also, with HALEU supply limited early on, how do you address accelerated HALEU requirements if you move quickly to upsized designs?

There is some increase in CapEx between 50 and 75 megawatts because of larger heat exchangers and turbines, but the increase scales favorably and improves dollars per megawatt delivered. You also get more power per kilogram of fuel at higher outputs. That fuel efficiency is an important benefit, especially given constrained HALEU supply. Staying in this size range allows us to preserve supply chain advantages and avoid bespoke, high-cost manufacturing. If customers demand much larger plants, we would evaluate that, but there are inflection points above 75 megawatts that introduce more supply chain and regulatory complexity. Regarding financing, there will be more front-end CapEx, and commercial structures can involve prepayments, strategic investments, joint ventures, or other mechanisms based on customer preferences and project economics. We tailor structures to maximize mutual value while ensuring execution certainty.

To add, going from 50 to 75 will improve dollars per megawatt delivered and fuel efficiency. We previously indicated Atomic Alchemy would add approximately $3 to $6 million to our overall burn rate, and we remain within that range post-acquisition.

The next question comes from Max Hopkins from CLSA. Your line is open.

Hello. Question on fuel. You mentioned Daniel Poneman from Centrus joining the board. Many investors focus on fuel as the long-term constraint. You're not part of the ARDP, but you have HALEU procured for the first plant. How does HALEU procurement look going forward? Will it be primarily Centrus, or can you procure from other HALEU providers or directly from DOE?

We are pleased to have secured fuel for our first plant, and our MOU with Centrus is an important part of a scalable domestic HALEU supply. Centrus is producing HALEU today and scaling production. We will continue to partner with Centrus and others as the market evolves. Government programs and commercial activity are expanding enrichment and HALEU capacity. We see the current tightness as a bridge issue that policy and commercial expansion will address. Our recycling capability is another strategic advantage: it diversifies fuel sources and can materially reduce fuel costs and reliance on fresh HALEU by reclaiming and reusing fissile material. Recycling also allows us to accept feedstocks and government reserves that may have impurities unsuitable for other reactor types but acceptable for fast reactors. The market is moving toward solutions—commercial orders, government programs, and supply chain scaling will together expand capacity over time. Our design choices and recycling strategy help us navigate the early constraints.

Relations, for a couple retail questions.

Thanks, Karen. Jake, Greg, we had a couple of retail questions. The first one is can you give more detail on the Switch deal? Is it firm or conditional, and what does that mean?

Happy to. The Switch deal is a significant master partnership agreement for a potential 12 gigawatts. It is not a firm PPA at this stage; it contains conditional elements. Given the magnitude of the opportunity, signing an immediate firm PPA would be premature. The master partnership agreement establishes how we will work together across multiple dimensions—site selection, phased power delivery, engineering integration, government affairs, supply chain, and public relations. It sets a framework to refine the relationship and iterate the contract structure over time. There is substantial engineering and operational overlap between data center construction and reactor deployment, and Switch's expertise in modular, high-density data centers is complementary to our approach. Working with Switch allows us to co-accelerate deployment by leveraging their engineering and construction capabilities. The 12-gigawatt figure is long-term and will be deployed over decades; this is a strategic, multi-decade partnership rather than an immediate, single transaction. We chose an iterative approach to avoid locking into terms that may not reflect the realities we encounter during execution. This master partnership allows both parties to define partnership elements and advance toward firm agreements as projects and sites mature.

Internally, we pivoted toward the master partnership agreement after discussions with Switch because it allowed us to explore multiple avenues of partnership that aligned with both parties' priorities. The MPA gives us the flexibility to pursue different partnership elements over time.

Great. Thank you both. Last question for the day. Oklo Inc. previously faced regulatory setbacks with the NRC and had an application rejected due to information gaps. Given those challenges, what specific changes or advances have you made now that give you confidence in securing approval for your nuclear projects?

The earlier setbacks were informative and provided lessons that helped us refine our regulatory approach. To recap, we submitted a combined license application for a 1.5-megawatt plant in 2020 after several years of pre-application engagement. We pursued a forward-leaning, novel application format intended to be efficient and right-sized, which differed from traditional, much larger submissions. We initially planned for in-person audits and collaborative reviews that the NRC had signaled as useful. Unfortunately, our submission coincided with the start of the pandemic, which disrupted the in-person review process and changed the review dynamic. The NRC denied the application in early 2022 due to procedural and contextual issues related to that period, not because the underlying approach was without merit. After re-engaging with the NRC in person, we updated the design to reflect market developments and focused on resolving the NRC's open items, which largely involved clarifying methodologies and providing additional supporting analysis. Over the past few years, we have submitted additional technical and topical reports, engaged in hundreds of meetings, and iterated our application content. Many of the forward-leaning elements we proposed have found footing as the NRC modernizes review approaches for advanced reactors. The NRC has also moved toward team-based, audit-focused reviews that are more efficient when done in person. Combined with policy changes and growing regulatory experience across the industry, these developments provide a stronger foundation for our COL application. We have learned from our earlier approach, evolved our application where needed, and built a team with deep regulatory experience. While there is more work to do, our cumulative experience and the NRC's evolving processes give us confidence as we proceed into the readiness assessment and COL submission.

I will now hand the call back to Jake DeWitte for closing remarks.

Great. Well, thank you all so much for your time. 2024 was a very exciting year for us and a preview of what we're aiming to accomplish. Internally, I talk about the broad potential of this technology and truly unlocking the energy of the actinides that we are fortunate to have as an energy resource. Fast reactors and recycling are uniquely positioned to tap into that resource. Thank you for your time, and we look forward to the next update.

Ladies and gentlemen, that concludes today's call. Thank you all for joining, and you may now disconnect.