Core Highlights: - Net loss increased by 36.0% to $168.1 million for the nine months ended September 30, 2024 compared to the prior year period - Gross margin decreased significantly from 17.1% to 33.4% year-over-year - Total revenue decreased by 84.5% due to the loss of the contract with CFPP LLC
Revenue Breakdown: - Revenue decreased due to loss of the CFPP LLC contract, as the Company transitions from a R&D company towards commercialization of its small modular reactor technology - During Q3 2024, the Company entered into a new revenue generating agreement structured as a fixed price contract with variable consideration, with amounts collected deferred as a customer deposit until performance obligations are achieved - Subsequent to September 30, 2024, the Company executed a revenue generating agreement with Fluor to provide engineering and design services for a VOYGRTM-6 Nuclear Power Generation project
Management Outlook: - R&D expenses decreased due to $6.0 million lower compensation costs from workforce reduction and $74.5 million lower professional fees including a $34.5 million CFPP LLC contract termination fee - G&A expenses increased due to $7.4 million higher strategic marketing expenses, partially offset by lower professional fees and cost controls - Sponsored cost share from DOE and other entities decreased due to loss of CFPP LLC contract - Change in fair value of warrant liabilities was an unfavorable $53.0 million due to an increase in the Company's warrant price
Operating Data: - Net cash used in operating activities improved to $82.2 million outflow for the nine months ended September 30, 2024 compared to $110.0 million in the prior year period - Net cash used in investing activities was $44.8 million for purchase of short-term investments - Net cash provided by financing activities was $118.4 million from utilization of ATM program - The current cash balance of $116.7 million combined with the ATM program is expected to provide sufficient funding for the next 12 months - Cash is expected to support operations for 4.7 quarters under the current loss run-rate
Operational Risks: - Contingencies related to ongoing litigation with purported members/option holders of NuScale LLC and shareholder class action lawsuits - Risks around failure to initiate commercial operation of Nuclear Power Module 1 resulting in potential repayment obligations to DOE - Risks related to the SEC's current request for information regarding employment, severance, and confidentiality agreements

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