NuScale(US:SMR)2026-02-26 22:27Investment and Financial Overview - Over $1.8 billion has been invested in the development of NuScale technology, including more than $578.3 million from the DOE[38]. - The company has incurred significant losses since inception and expects to continue incurring losses, making profitability uncertain[150]. - NuScale has not generated any material revenue to date and expects to require additional funding to support operations and commercialization[174]. - The company plans to reduce its workforce by 28% to align resources with core priorities, focusing on revenue-generating projects and technology commercialization[104]. - The company expects to retain future earnings to fund business development and growth, with capital appreciation being the sole source of gain for stockholders in the foreseeable future[207]. - The company does not expect to pay any cash dividends in the foreseeable future, which may affect investor interest[206]. - Payments under the Tax Receivable Agreement may exceed the actual tax benefits realized by NuScale Corp, potentially impairing its financial condition[137]. - The company is required to pay 85% of certain tax benefits realized from increases in tax basis due to exchanges of NuScale LLC Class B units for shares of Class A common stock[131]. - Following a Tax Receivable Agreement Amendment on November 6, 2025, NuScale will only be required to pay 42.5% of net cash tax savings from the exchange of Fluor Class B units[133]. Technology and Design - The NuScale Power Module™ (NPM) can generate 77 MWe and is designed for scalability from one to twelve modules, with configurations of 12-module (924 MWe), six-module (462 MWe), and four-module (308 MWe)[37][40]. - NuScale's NPM technology leverages existing light water nuclear reactor technology, which has been operating globally for over 60 years, ensuring a proven performance record[56]. - NuScale's innovative safety design allows for an unlimited coping period without the need for operator actions or external power, a significant improvement over traditional reactors[80]. - The modular design of SMRs allows for reduced construction times and greater cost predictability compared to traditional large-scale nuclear facilities[54]. - Each NPM can operate continuously for approximately 20 months before requiring refueling, with only a 77 MWe reduction in total plant output for about 10 days during staggered refueling[66]. - The expected capacity factor for a 12-module power plant producing 924 MWe is approximately 98%, significantly higher than other non-nuclear power generation methods[62]. - NuScale's design allows for operation without a grid connection, enabling off-grid capabilities and making it a first responder to grid restoration[62]. - NuScale's innovative technology has increased power output to 77 MWe per module without raising construction costs, indicating ongoing R&D efforts to enhance efficiency and reduce costs[94]. Regulatory Approvals and Compliance - The NRC approved NuScale's 12-module design for 160 million watts of thermal power (50 MWe per NPM) and the second SDA application for the 6-unit 77 MWe NPM design in May 2025[38]. - The NRC approved NuScale's design in 41 months, the fastest approval ever, allowing for a 50 MWe NPM and 12-module plant design[108]. - In May 2025, the NRC approved the company's second SDA application for a 6-module, 77 MWe NPM design, streamlining the regulatory process for customers[109]. - Customers must secure additional regulatory approvals to construct power plants using the company's NPMs, which could lead to significant delays and costs[188]. - The company is subject to potential claims regarding ownership of patents and intellectual property, which could adversely affect its business if not successfully defended[185]. - Regulatory approvals for the company's SMR design are currently only granted in the United States, with potential delays or denials in foreign markets impacting sales[187]. Market Demand and Competition - The global demand for electric power is projected to rise by 75% by 2050, driven by factors such as electric vehicles and data centers[47]. - Nuclear power plants produced 18% of the U.S. electricity in 2023, despite having only an 8% share of the total energy generation capacity[50]. - The U.S. aims to expand nuclear energy capacity from approximately 100 GW in 2024 to 400 GW by 2050, as per an executive order signed in May 2025[52]. - NuScale aims to grow by replacing carbon-intensive coal-fired power plants and providing alternatives to new gas-fired generation, focusing on sectors like direct air capture and hydrogen production[92]. - NuScale faces competition from other nuclear reactor technologies and companies operating commercial SMRs in China and Russia[143]. Intellectual Property and Technology Protection - The company has received 513 patents issued and 268 patents pending, protecting key aspects of its technology and maintaining a competitive advantage[78]. - NuScale's intellectual property protection may be challenged, exposing the company to potential loss of competitive advantage[178]. - The company may not be able to protect its intellectual property rights globally due to differing patent laws in various jurisdictions[180]. Operational Risks and Challenges - Manufacturing and construction issues could arise during production, potentially impacting deployment costs and schedules[164]. - The company faces risks related to the execution of binding agreements with ENTRA1, which may not guarantee revenue-generating contracts[160]. - Changes in U.S. trade policy, including tariffs, may adversely affect costs and delivery schedules for components manufactured overseas[170]. - The company relies on a senior management team with extensive experience, and losing key personnel could impair business strategy execution[173]. - Adverse public perception of nuclear energy could impact customer demand and regulatory requirements, affecting business operations[165]. - The company anticipates that costs associated with operating as a public company will increase, complicating financial projections[174]. Cybersecurity and Litigation - Cybersecurity risks are a major concern, with increasing sophistication of cyberattacks that could compromise information technology systems and data[209]. - The company has not experienced a material cybersecurity breach to date, but acknowledges the potential for significant adverse effects if such an incident were to occur[210]. - The company is involved in ongoing litigation that could materially affect its operations and financial condition, including a class action lawsuit related to federal securities laws[213]. - The company has a robust enterprise risk management process that includes assessing and managing cybersecurity risks, with oversight from the Board of Directors[216]. - The corporate information security organization is responsible for the overall cybersecurity strategy and has implemented a managed detection and response platform for continuous monitoring[219]. - The company relies on third-party services for cybersecurity monitoring and has contractual requirements for subcontractors to implement security controls[224].