Nano Nuclear Energy Inc.(NNE) - 2025 Q1 - Quarterly Report

Financial Performance - The company reported a net loss of $3.11 million for the three months ended December 31, 2024, compared to a net loss of $1.31 million for the same period in 2023, indicating an increase in losses of approximately 137%[19] - The company’s accumulated deficit increased to $20.55 million as of December 31, 2024, compared to $17.43 million at the end of the previous quarter[32] - The company has incurred accumulated net losses of $20,547,143 since inception through December 31, 2024, with no revenues generated to date[130] - The company has not generated any revenue from its inception through December 31, 2024[143] - The company reported a net loss of $3,113,362 for the three months ended December 31, 2024, compared to a net loss of $1,313,945 for the same period in 2023[158] Assets and Equity - As of December 31, 2024, the total assets of Nano Nuclear Energy Inc. increased to $134.14 million, up from $35.10 million as of September 30, 2024, representing a growth of approximately 282%[17] - Total stockholders' equity increased to $130.06 million as of December 31, 2024, up from $31.61 million as of September 30, 2024, representing an increase of approximately 311%[17] - Cash and cash equivalents rose significantly to $123.27 million as of December 31, 2024, compared to $28.51 million at the end of the previous quarter, marking an increase of approximately 332%[25] - The company’s working capital improved to $125.93 million as of December 31, 2024, compared to $27.50 million at September 30, 2024, reflecting a growth of approximately 357%[32] Financing Activities - The company raised approximately $101.40 million from common stock issuances during the three months ended December 31, 2024[25] - The Company received $2,106,437 in subscriptions as part of the Series B Round of private financing, which began in December 2023 and ended in January 2024[70] - The Company completed an IPO on May 7, 2024, issuing 2,562,500 shares at $4.00 per share, generating net proceeds of approximately $9.0 million[71] - The underwriter fully exercised the IPO Over-Allotment Option, resulting in additional gross proceeds of $1,537,500 and net proceeds of approximately $1.4 million[72] - The July 2024 Follow-on Offering raised approximately $16.1 million in net proceeds from the sale of 900,000 units at an offering price of $20.00 per unit[73] - The Company generated approximately $2.5 million in net proceeds from the full exercise of the July 2024 Follow-on Over-Allotment Option[74] - The October 2024 Follow-on Offering produced net proceeds of approximately $32.3 million from the sale of 2,117,646 units at an offering price of $17.00 per unit[76] - The Company received net proceeds of approximately $55.1 million from the November 2024 Private Placement, selling 2,500,002 shares at a combined purchase price of $24.00 per share[77] Research and Development - Research and development expenses for the three months ended December 31, 2024, were $904,923, compared to $520,016 for the same period in 2023, reflecting an increase of approximately 74%[19] - The company is developing advanced nuclear microreactors, including ZEUS and ODIN, targeting various sectors such as data centers and military applications[28] - The company plans to invest approximately $40 million over the next twelve months, with $25 million allocated for microreactor development and testing[126] - The microreactor demonstration work is estimated to occur between 2025 and 2027, with licensing applications processed between 2026 and 2029[127] - The company is in the pre-revenue stage, focusing on developing advanced nuclear microreactors, with a goal to commercially launch one product by 2030-2031[113] Legal and Regulatory Matters - The company is currently involved in legal proceedings, including a putative securities class action lawsuit filed on August 9, 2024[173] - The company anticipates significant expenditures in defending its products and against claims of intellectual property infringement in the future[176] - The company expects to maintain a full valuation allowance on its deferred tax assets until an appropriate level of profitability is attained[62] Operational Expenses - General and administrative expenses increased by $1,665,674, or 201%, to $2,494,570 for the three months ended December 31, 2024, compared to $828,896 for the same period in 2023[147] - Negative operating cash outflows were $3,242,526 for the three months ended December 31, 2024, compared to $1,106,733 for the same period in 2023[151] - Net cash used in operating activities for the three months ended December 31, 2024, was $3,242,526, an increase of $2,135,793 compared to $1,106,733 for the same period in 2023[158][159] - Net cash used in investing activities for the three months ended December 31, 2024, was $3,560,000, related to deposits for the acquisition of USNC Assets[160] Acquisitions and Investments - The company acquired ALIP technology for approximately $1.67 million, which includes cash and common stock considerations, and anticipates completion of the SBIR Phase III project by June 21, 2025[97][99] - The company invested $2,000,000 in LIS Technologies Inc. as part of an $11.88 million seed funding round to support the development of advanced laser enrichment technology[100] - The company entered into an asset purchase agreement to acquire USNC's nuclear energy technology assets for $8.5 million, with a deposit of $3.56 million already provided[105] - The company closed an asset acquisition of the KRONOS MMR Energy System and LOKI MMR for $8.5 million, including contracts and intellectual property rights[116] - The acquisition included 38 patents and five contracts with third-party collaborators, enhancing the company's intellectual property portfolio[118] Lease Obligations - The Company had one long-term operating lease as of December 31, 2024, consistent with the previous reporting period[47] - The company has a long-term operating lease liability of $1,891,400 as of December 31, 2024, with future minimum lease payments totaling $2,832,025[95] - The company reported a lease cost of $104,398 for the three months ended December 31, 2024, with cash paid for operating leases amounting to $100,815[94] - The company has a weighted-average discount rate of 13.5% for its operating leases and a remaining lease term of 6.75 years[94] - The company has a long-term operating lease for its corporate headquarters at a monthly rent of $33,605, with a lease term ending on July 31, 2031[164] - A new lease for a demonstration facility in Westchester County, New York, was entered into in January 2025, costing $17,000 per month, with a lease term ending on December 31, 2030[165]