Oklo Inc. Q1 FY2025 earnings call

• Industry and policy: The current administration has made nuclear energy a strategic priority with a series of executive orders supporting nuclear energy, including regulatory reform, streamlined permitting, and a federal task force for next-generation nuclear deployment. - Company strategy: Build, own, operate business model provides predictable recurring revenue and efficient regulatory path; small-scale modern design allows quick deployment and flexible scaling; proven technology with over 400 reactor-years of operational experience enables direct commercialization. - Project execution: Advanced field work at key sites, made progress in NRC engagement, selected as a qualified vendor by the Department of Defense, formalizing new partnerships for technology development. Completed drilling campaign at INL site for Aurora powerhouse, finalized agreements with DOE and INL. Initiated Phase 1 of pre-application readiness assessment for Aurora INL powerhouse. Made progress on other regulatory fronts, including nearing submission of licensing project plan for Oklo Fuel Foundry and submitting licensed operator topical report. - Fuel strategy: Secured and working with HALEU for first commercial plant, signed MOU with Centrus. - Partnerships: Selected as qualified vendor through DOD's procurement process, acquired Atomic Alchemy for radioisotope business. - Personnel: Welcomed Pat Schweiger as CTO, Sam Altman left board, Jake DeWitte assumed role of Chairman.

Oklo's first quarter operating loss was $17.9 million, inclusive of non-cash stock-based compensation expense of $2.3 million. Oklo's loss before income taxes was $14.2 million, which reflects the operating loss adjusted for net interest income of $3.6 million. Cash used in operating activities was $12.2 million. At the end of the quarter, cash and marketable securities were $260.7 million.

• Expect to deliver on the guided range of $65 million to $80 million for total cash used in operations for full year 2025. - Anticipate bringing the first commercial unit of Aurora online in late '27 to early '28. - Anticipate submitting additional Combined License Application (COLA) submissions in parallel to the first one under review and benefiting from acceleration of COLAs after that, with expected early movers and beneficiaries of NRC's review approaches for subsequent licensing.

• Regulatory uncertainties in the licensing process for reactors and fuel facilities. - Supply chain constraints, particularly for fuel, which is a key challenge and opportunity. - Market demand and pricing risks for nuclear power and radioisotopes, including potential fluctuations in HALEU prices.

Q: Ryan Pfingst asked about the DOD's regulatory authority for nuclear power and its ability to accelerate reactor deployments.

A: Jake DeWitte responded that DOD has authority over nuclear plants for its use cases, there is appetite and potential for DOD to step up and provide an alternate pathway for reactor deployments, and there are opportunities to streamline regulatory processes for military installations.

Q: Sherif Elmaghrabi asked about when Oklo might start taking delivery of fuel from the MOU with Centrus and if there's a date to firm up the agreement.

A: Jake DeWitte explained that the first fuel for the first plant is from DOE/INL, and for commercial procurement of subsequent plants, it's about structuring the right supply arrangements considering customer offtakes and growth plans.

Q: Unidentified Analyst asked about the NRC process for the VIPR facility.

A: Jake DeWitte said the VIPR facility is a non-electric power producing reactor, benefits from a different regulatory approach similar to university and research reactors, with a two-step process of construction license then operating license, and it's a simpler process than power reactor licenses.

Q: Eric Stine asked about NRC confidence and the licensing process.

A: Jake DeWitte discussed long NRC engagement since 2016, high number of meetings, expecting benefits from readiness assessment like TerraPower, and the importance of efficient and scalable licensing.

Q: Jeffrey Campbell asked about the Oklo Fuel Foundry licensing and timing.

A: Jake DeWitte said the fuel foundry follows a different regulatory path, expected review timeline of 24-30 months (possibly 36), and there are benefits to reduce timelines, with plans to evaluate site opportunities.

Q: Craig Shere asked about CapEx delta and construction timeline for fuel facilities.

A: Jake DeWitte explained that fuel foundry is likely operational before recycling facility, fuel fabrication opens partnership opportunities, recycling takes longer and costs more, and both have staged build-outs.

Q: Sam Doane asked about discussions with data center operators.

A: Craig Bealmear said there are active discussions with data center customers, exchanging term sheets, structuring commercial terms including potential investment, and Mike Donohue joined for business development focused on data center solution customers.