Financial Overview - As of December 31, 2025, the company has an accumulated deficit of $124.6 million and has raised $36.7 million in additional capital since December 31, 2024, including a $25.8 million preferred stock private placement[46]. - Total cumulative revenue from IMSR Plant lifecycle is estimated at $2.098 billion, with a gross margin of 22%[74]. - Pre-construction services are expected to generate $75 million, representing 4% of total revenue, with a gross margin of 31%[76]. - Construction services and component supply are projected to contribute $486 million, accounting for 23% of total revenue, with a gross margin of 27%[77]. - Post-construction IMSR Core-unit supply is anticipated to generate $1.148 billion, making up 55% of total revenue, with a gross margin of 20%[78]. - IMSR Fuel Salt supply is expected to yield $389 million, representing 18% of total revenue, with a gross margin of 20%[79]. IMSR Plant Design and Capabilities - The IMSR Plant is designed to achieve a Levelized Cost of Electricity (LCOE) of approximately $69/MWh and a Levelized Cost of Heat (LCOH) of approximately $8.60/MMBtu, positioning it competitively in the energy market[60]. - The IMSR Plant is capable of providing industrial-grade heat at 585 °C, suitable for over two-thirds of industrial thermal applications, addressing a significant decarbonization challenge[57]. - The IMSR Plant's net electrical output is designed at 390 MW, providing dispatchable zero-carbon electric energy supply, which is crucial for grid reliability[59]. - The IMSR Plant's operational design allows for long-term revenue visibility and durable cash flows, supported by ongoing operations and maintenance contracts[80]. - The IMSR Plant utilizes SALEU as nuclear fuel, which aligns with existing fuel supply frameworks and may reduce development risks associated with HALEU[91]. - The IMSR Plant design has progressed to a Preliminary Safety Analysis Report (PSAR) standard, which is a recognized development status in the nuclear industry[104]. - The IMSR's primary cooling system operates at near atmospheric pressure, potentially reducing manufacturing and construction complexity and costs[139]. - The IMSR Core-unit is designed for a "plug-and-play" replacement process every seven years, streamlining maintenance and enhancing operational efficiency[146]. Market Potential and Strategy - The company anticipates that more than 80% of U.S. coal plant sites are suitable for conversion to advanced nuclear, representing a potential market of 198.5 GWe installed base, much of which is slated for retirement by 2035[67]. - The company is focused on three key market verticals for deployment: data center electricity supply, industrial thermal and electric energy supply, and repowering coal plants[63]. - The IMSR Plant has a pipeline of over ten early-stage projects across various industrial sectors, including mining and chemical production[160]. - The company has established a consortium of over 50 collaborative industry relationships to support the growth of its project pipeline[161]. Regulatory and Development Milestones - The company has been selected for the DOE's Advanced Reactor Pilot Program, which aims to fast-track commercial licensing activities for small and modular nuclear plants[49]. - The CNSC completed its Vendor Design Review (VDR) of the IMSR Plant design in April 2023, confirming that it meets expectations in 19 focus areas for licensing, with no fundamental barriers identified[113]. - The company anticipates a five-year pre-construction period followed by a five-year construction period for the FCP IMSR Plant project, leading to the issuance of a Construction Permit and an Operating License by the USNRC[117]. - The regulatory strategy aims to establish the IMSR Plant as licensable and deployable in key global markets, starting with the United States and Canada, to reduce commercial and development risks[105]. - The insights gained from the VDR process will be incorporated into future licensing applications, enhancing the completeness and defensibility of submissions[115]. Research and Development - The R&D and testing program has been ongoing since 2020, focusing on qualifying materials such as the graphite moderator and IMSR Fuel Salt, with many tests already completed[101]. - The company has developed a comprehensive code validation and verification strategy, supported by U.S. DOE-funded projects, to validate key models for IMSR fission power control and heat transport[102]. - The company collaborates with multiple national laboratories and universities to support R&D and testing activities critical to IMSR technological advancement[132]. Company Structure and Employment - The company employs 74 full-time employees as of December 31, 2025, with a focus on recruitment and talent development[184]. - The company was originally a special purpose acquisition company incorporated on April 4, 2024, and domesticated into a Delaware corporation on October 23, 2025[185]. - The company expects to retain its emerging growth company status until its annual revenues exceed $1.2 billion or other specified conditions are met[432].
HCM II Acquisition Corp.(HONDU) - 2025 Q4 - Annual Report