Oklo(OKLO) - 2024 Q3 - Quarterly Results

Q3 2024 Shareholder Letter CEO Message CEO Jacob DeWitte highlights unprecedented energy demand from AI and electrification, positioning Oklo to lead advanced nuclear deployment by late 2027 with small-scale powerhouses and direct sales - The world is entering an era of unprecedented energy demand, with nuclear power playing a critical role[1] - Oklo's business model focuses on building small, repeatable fission powerhouses and selling power directly to customers to accelerate timelines and reduce complexity[2] - The company aims to be a leader in deploying advanced nuclear power by late 2027, supported by a site permit and secured fuel[2] Key Q3 2024 Milestones Oklo significantly expanded its customer pipeline to 2,100 MW, secured key regulatory permits for its Idaho site and fuel facility, and announced the $25 million all-stock acquisition of Atomic Alchemy - Added two data center customers, increasing the total announced customer pipeline to 2,100 Megawatts, a 200% increase since July 2023[3] - Secured a key environmental compliance permit from the DOE for the Idaho site, confirming no significant environmental impacts[3] - The DOE approved the Conceptual Safety Design Report for the Aurora Fuel Fabrication Facility, a critical step toward fueling the first commercial powerhouse[3] - Signed a term sheet for a $25 million all-stock acquisition of Atomic Alchemy, Inc. to integrate radioisotope production as a complementary revenue stream[3] Market Developments and Customer Engagement Rapid growth in AI and data center power demand is driving tech giants towards nuclear energy, supported by global financial and political backing, enabling Oklo to secure significant customer interest and expand its pipeline to 2,100 MW - Tech giants like Microsoft, Google, and Amazon are turning to nuclear energy to meet the power demands of the data center and AI boom[4] - AI power demand is projected to grow rapidly, outpacing server capacity advancements by 2030[5] - Growing support for nuclear energy includes backing from 14 major global banks to triple capacity by 2050 and a $2.7 billion U.S. government initiative for a domestic HALEU supply chain[6] Customer Pipeline Growth | Customer/Partner | Agreement Type | Power Capacity (MW) | | :--- | :--- | :--- | | Equinix, Inc. | Partnership with $25M pre-payment | Up to 500 | | Data Center Projects (2) | Power Purchase LOIs | Up to 750 | | Prometheus Hyperscale | Non-binding LOI (20-year PPA) | 100 | | Total Pipeline | | 2,100 | Strategic Acquisition: Atomic Alchemy Oklo plans to acquire Atomic Alchemy for $25 million in an all-stock deal to integrate radioisotope production, tapping into a $55.7 billion market by 2026 and positioning itself in the domestic supply chain and next-generation semiconductor industry - Oklo plans to acquire Atomic Alchemy for $25 million in an all-stock deal to produce radioisotopes as a high-value coproduct of its fuel recycling process[3][11] - The acquisition provides entry into the medical radioisotopes market, estimated to be worth $55.7 billion by 2026, addressing a critical supply shortage[11] - Atomic Alchemy's Neutron Transmutation Doping (NTD) technology is considered the 'gold standard' for silicon doping, potentially positioning Oklo as a leader in next-generation semiconductor production[11] - The transaction is not expected to have a significant immediate impact on Oklo's operating cost structure[11] Project and Regulatory Update Oklo is advancing its first commercial Aurora powerhouse for 2027 deployment at INL, with key DOE approvals secured and plans to submit its COLA to the NRC in H1 2025, leveraging new acts to expedite future approvals - Oklo is preparing to deploy its first commercial Aurora Powerhouse at Idaho National Laboratory (INL) in 2027[12] - Key project milestones include a new MOA with the DOE for site assessments and DOE approval of the Conceptual Safety Design Report (CSDR) for the fuel fabrication facility[13][15] - Oklo plans to submit its combined license application (COLA) to the NRC in H1 2025 and file for subsequent powerhouses in late 2025 or early 2026[16][17] - The ADVANCE Act is expected to reduce licensing fees by over 50% and expedite timelines, with a new proposed NRC rule potentially speeding up follow-on reactor approvals to just 7 months[17][18] Financial Performance For the nine months ended September 30, 2024, Oklo reported a $63.3 million net loss and $24.9 million cash used in operations, ending with $288.5 million in cash and marketable securities, on track for its $40-50 million FY2024 operating loss forecast Q3 YTD 2024 Financial Highlights & Outlook | Metric | 9/30/2024 YTD | FY 2024 Forecast | | :--- | :--- | :--- | | Cash Used in Operations | $24.9M | $35-45M | | Loss from Operations | $37.4M | $40-50M | | Net Loss | $63.3M | N/A | | Cash & Marketable Securities | $288.5M | N/A | Condensed Consolidated Balance Sheets As of September 30, 2024, Oklo's total assets significantly increased to $293.8 million from $14.9 million at year-end 2023, driven by $288.5 million in cash, resulting in $263.3 million in stockholders' equity Balance Sheet Summary (in millions) | Account | Sep 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total Assets | $293.8 | $14.9 | | Cash & Marketable Securities | $288.5 | $9.9 | | Total Liabilities | $30.5 | $49.2 | | Simple agreements for future equity | $0.0 | $46.0 | | Total Stockholders' Equity (Deficit) | $263.3 | ($34.4) | Condensed Consolidated Statements of Operations For the nine months ended September 30, 2024, Oklo's loss from operations widened to $37.4 million and net loss grew to $63.3 million, significantly impacted by a $29.9 million non-cash charge from SAFE notes Statement of Operations Summary (in millions) | Metric | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--- | :--- | :--- | | Research and development | $19.4 | $5.5 | | General and administrative | $18.0 | $5.9 | | Loss from operations | ($37.4) | ($11.4) | | Change in fair value of SAFE | ($29.9) | ($6.6) | | Net loss | ($63.3) | ($17.9) | | Net loss per share (Basic & Diluted) | ($0.65) | ($0.32) | Condensed Consolidated Statements of Cash Flows For the nine months ended September 30, 2024, net cash used in operating activities was $24.9 million, while financing activities provided $300.8 million, resulting in an $81.9 million net increase in cash and equivalents Cash Flow Summary (in millions) | Cash Flow Activity | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | ($24.9) | ($10.4) | | Net cash used in investing activities | ($194.0) | ($0.06) | | Net cash provided by financing activities | $300.8 | $10.8 | | Net increase in cash | $81.9 | $0.4 | | Cash and cash equivalents - end of period | $91.8 | $10.0 | Upcoming Events Oklo has a full schedule of upcoming investor and industry conferences through January 2025, focusing on AI, clean energy, technology, and nuclear power themes - Oklo will be participating in numerous investor and industry conferences from November 2024 to January 2025, focusing on themes of AI, clean energy, technology, and nuclear power[27]