ASP Isotopes Issues Letter to Stockholders

Company Overview - ASP Isotopes Inc. is focused on developing technology and processes for producing isotopes used in various industries, including healthcare and technology [22] - The company employs proprietary technology known as the Aerodynamic Separation Process (ASP technology) for isotope production, distribution, and marketing [22] Financial Performance - The 2023 Annual Report was filed, showing results largely in line with expectations, with a current cash balance of $7.9 million [2][3] - Operating free cash flow for 2023 was $(4.7) million, slightly better than the targeted $(5) million [3] - Recent capital raises included over $20 million from a convertible note offering and approximately $5.5 million from warrant exercises, strengthening the balance sheet [3] Production and Contracts - The first commercial isotopes plant is processing raw materials for enriched isotopes, with production expected to begin mid-year [2] - A purchase agreement was signed for highly enriched silicon-28, aimed at next-generation semiconductors for quantum computing and AI [2][6] - A multi-year carbon-14 contract was established with a minimum revenue commitment of $2.5 million per annum, with first revenues expected in mid-2024 [5] Strategic Partnerships - Contracts with U.S.-based Small Modular Reactor (SMR) companies were executed for the production of High Assay Low Enriched Uranium (HALEU), with an aggregate payment potential of $2 million based on milestones [8][9] - The company is in discussions with multiple SMR companies, indicating a demand of approximately $30 billion for HALEU at current fuel prices [11] Market Demand and Growth - The beta-emitting radiopharmaceutical market is projected to exceed $15 billion annually in the next decade, with significant growth expected for Lutetium-177, a key component in cancer treatment [15] - PET Labs, in which the company acquired a 51% stake, demonstrated 32% year-on-year growth in FDG production in 2023, with expectations for continued growth [16] Future Developments - Construction of the first quantum enrichment facility for Ytterbium-176 is underway, with plans to start commercial production by 2025 [14][15] - The company aims to enrich uranium and lithium using a proprietary Quantum Enrichment Process, potentially offering a cost-effective method for producing HALEU [12] Industry Context - The isotopes market is experiencing a supply chain crisis, primarily controlled by a few entities, which has led to increased interest from companies and governments in ASP Isotopes' capabilities [19] - The U.S. Nuclear Energy Institute predicts a global shortage of 3,000 metric tons of HALEU by 2035, highlighting the critical need for domestic production [11]