Nano Nuclear Energy Inc.(NNE) - 2025 Q2 - Quarterly Report

Financial Performance - Net loss for the three months ended March 31, 2025, was $21.31 million, compared to a net loss of$1.68 million for the same period in 2024, reflecting a 1,270% increase in losses[20] - For the six months ended March 31, 2025, the company reported a net loss of $24,422,083 compared to a net loss of$2,991,573 for the same period in 2024, representing an increase in losses of approximately 717%[29] - The company reported an accumulated deficit of $41,855,864 as of March 31, 2025, compared to$17,433,781 at September 30, 2024, indicating a growing financial challenge[36] - The company has incurred accumulated net losses of $41,855,864 since inception through March 31, 2025, with no revenues generated to date[140] Assets and Liabilities - Total assets increased to$138.82 million as of March 31, 2025, up from $35.10 million on September 30, 2024, representing a growth of 295$132.03 million as of March 31, 2025, from $31.61 million, a growth of 318$6.79 million as of March 31, 2025, compared to $3.49 million, a rise of 95$9.08 million in in-process research and development as of March 31, 2025, indicating ongoing investment in new technologies[17] Cash Flow - Cash and cash equivalents rose significantly to $118.55 million from$28.51 million, an increase of 316%[17] - The company had negative cash flows from operating activities of $5,620,979 for the six months ended March 31, 2025, compared to negative cash flows of$3,409,204 for the same period in 2024, indicating a worsening operational cash flow situation[29] - Net cash provided by financing activities for the six months ended March 31, 2025, was $108,365,064, including approximately$92.3 million from a registered follow-on offering[183] Expenses - Research and development expenses surged to $6.71 million for the three months ended March 31, 2025, compared to$290,539 in the same period last year, marking a 2,209% increase[20] - General and administrative expenses reached $15.70 million for the three months ended March 31, 2025, up from$1.42 million, a rise of 1,104%[20] - General and administrative expenses rose by $14,273,869, or 1,003$15,697,178 for the three months ended March 31, 2025, compared to $1,423,309 for the same period in 2024[158] Shareholder Activity - The company executed common stock issuances totaling 4,935,294 shares, raising approximately$101.40 million in additional paid-in capital during the six months ended March 31, 2025[24] - The Company raised gross proceeds of $10,250,000 from its initial public offering (IPO) on May 7, 2024, with net proceeds of approximately$9.0 million after deducting discounts and offering expenses[75] - The July 2024 Follow-on Offering generated gross proceeds of $18 million and net proceeds of approximately$16.1 million, indicating strong investor interest[77] - The October 2024 Follow-on Offering raised approximately $36 million in gross proceeds, with net proceeds of about$32.3 million, further enhancing the Company's capital position[81] Strategic Initiatives - The company is developing advanced nuclear microreactors, including ZEUS and ODIN, targeting various sectors such as data centers and military applications[32] - The company plans to explore strategic acquisitions within the nuclear transportation industry to enhance its operational capabilities[33] - The company is currently conducting physical test work on the ZEUS and ODIN microreactors, with external design audits completed by the Idaho National Laboratory[128] - The company plans to apply for a construction permit for the KRONOS MMR in late 2025 or early 2026, with ongoing collaboration with the University of Illinois Urbana-Champaign[137] Legal Matters - A shareholder derivative lawsuit was filed against certain directors and officers, alleging breach of fiduciary duties and market manipulation, among other claims[195] - The court granted the company's motion to dismiss the amended complaint without leave to amend on April 24, 2025[195] - The company intends to continue vigorously defending against all claims made in the lawsuit[195] Future Outlook - The company expects to raise additional capital to support its long-term growth strategy and plans to file a "universal shelf" registration statement for easier access to financing[36] - The company anticipates launching a commercial product from its Micro Nuclear Reactor Business in the early 2030s, focusing on advanced nuclear microreactors[125] - The regulatory licensing process for microreactor prototypes is expected to be completed in the early 2030s, with manufacturing facilities constructed during the licensing phase[149]