Oklo Inc

Thank you for standing by. My name is Karen and I will be your conference operator today. At this time, I would like to welcome everyone to the Oklo fourth quarter 2024 financial results and business update call. All lines have been placed on mute to prevent any background noise. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star followed by the number one on your telephone keypad. To withdraw your question, you may press star followed by the number one again. I'll now turn the call over to Sam Doan, Director of Investor Relations. Please go ahead.

Thank you, Operator. Good day, everyone, and welcome to Okla's fourth quarter and annual company update and earnings call. Joining me today are Jake DeWitt, Okla's co-founder and Chief Executive Officer, and Craig Velmer, Okla's Chief Financial Officer. Earlier today, after market close, we announced our fourth quarter and full year 2024 earnings. You can find our shareholder letter and supplemental slides on the investor relations page of our website. Before we begin, I'd like to remind everyone that our discussion today, including our remarks and the Q&A session, will include forward-looking statements. These statements reflect our current views on trends, assumptions, risks, uncertainties, and other factors that could cause actual results to differ materially from what we discussed today. We encourage you to review the statements language in our shareholder letter and supplemental slides for additional context. You can also find the discussion of relevant risk factors in our most recent SEC filings. OCWA assumes no obligation to update these statements as a result of new information, future events, or otherwise, except as required by law. With that, I'll now turn the call over to Jake DeWitt, OCWA's co-founder and chief executive officer. Jake.

Thanks, Sam, and thank you all for joining us today. We're excited to share our quarterly and full-year update and provide insights into Oklo's progress over the past 12 months. Oklo was founded on the belief that there are significant opportunities for advanced nuclear technology. We saw an industry that had stagnated and recognized the need to rethink how new nuclear technologies could be brought to market. We started Oklo to seize this opportunity and fulfill our mission to deliver clean, reliable, and affordable energy on a global scale. The momentum behind nuclear energy has never been stronger. The new administration has made it clear that nuclear power is a cornerstone of America's energy future, with direct policy actions and public endorsements supporting its expansion. Key voices in government and industry are reinforcing the need for advanced nuclear deployment. Energy Secretary and former Oakland board member Chris Wright stated that the long-awaited American nuclear renaissance must launch now. He said, we're at the start of Manhattan Project 2. It is critical, just like Manhattan Project 1, that the United States wins this race. and has emphasized the administration's commitment through financial and regulatory support to enable rapid deployment and commercialization of next generation nuclear technology. Additionally, President Trump has recently highlighted the advantages of small, scalable nuclear plants. These statements reflect a growing consensus. Nuclear is essential for energy abundance, and small, advanced nuclear reactors provide a practical, cost-effective path forward. The demand for power is growing at an unprecedented rate, and while AI-driven data centers are a major contributor, they are not the only source of this growth. This slide shows other sectors – residential, transportation, commercial, and industrial – are also driving sustained energy needs. Total U.S. power demand is projected to grow greater than 160 percent through 2030, with data centers contributing approximately 31 percent of this increase. We have demonstrated that Oklo is uniquely positioned to take advantage of this staggering potential growth. Our build, own, operate model and small, scalable powerhouse designs are well-suited for a broad range of applications, ensuring we can meet growing energy needs across multiple sectors. At Oklo, our strategy is built on three core pillars that we believe will fundamentally transform how nuclear power is delivered to our customers. First is our business model. We've designed a model that simplifies the process for customers to purchase clean power at scale, eliminating traditional complexities and points of friction. Second is our reactor size. Our small, scalable reactors allow us to achieve greater capacity while meeting customer demand incrementally. This approach not only optimizes our financial performance by creating a recurring revenue model, but also delivers resilient and redundant power solutions, ensuring operational reliability. Finally, our technology sets us apart. By utilizing technology backed by centuries of cumulative reactor operation experience, our use of liquid sodium coolant provides significant economic and operational advantages. This technology underpins our ability to deploy advanced nuclear solutions that are both efficient and cost-effective. 2024 was a transformative year for Oklo, marked by major commercial, technological, and regulatory milestones. We started the year with a 500-megawatt partnership with Equinix, one of the largest co-location data center companies in the world, supported by a $25 million investment through the form of a prepayment. This really kicked off the partnership wave between nuclear technology companies and AI data center companies. Building on this momentum, we signed a letter of intent with Diamondback Energy for 50 megawatts, demonstrating an emerging demand for nuclear energy in the oil and gas sector as companies seek long-term sustainable energy solutions to electrify their operations. We also expanded our presence in the data center space by sending a letter of intent with Prometheus Hyperscale to deliver 100 megawatts of clean power to next-generation AI infrastructure. We ended the year by signing what is potentially the largest corporate clean power agreement ever with Switch for 12 gigawatts of power. To put the magnitude of this agreement into perspective, that is equivalent to approximately 1% of the U.S. grid. This is a massive opportunity for us, not just because of the size of the power need, but for the multi-pronged partnership of Switch to work together to bring nuclear to market at scale. One highlight to me of this partnership is that building data centers has significant similarities to building small reactors. If you think about data centers, they are fixed civil assets into which prefabricated and manufactured components and systems are installed, and electrical and cooling systems are tied together to move power and heat through the system. This has similarities to building small reactors, fixed civil facilities into which prefabricated and manufactured components are installed, and electrical and cooling systems are integrated and tied together. Working with SWITCH's expertise here will likely be accelerative to us, and we are excited about how this will progress. In May 2024, we went public on the New York Stock Exchange under the ticker OKLO, a defining step in our growth. Beyond our commercial success, we made major progress in our regulatory strategy and in building our nuclear technology platform. Our Idaho National Lab, or INL, powerhouse project remains on track to be the first commercial small nuclear reactor built in the U.S., with key DOE approvals and an environmental compliance permit secured. We also advanced our Aurora fuel fabrication facility, receiving DOE approval for its safety design strategy, reinforcing our ability to produce advanced reactor fuel domestically. Local is the only advanced nuclear company with high assay, low-interest uranium, also known as HALU fuel secured for its first deployment, a significant competitive advantage that ensures we can move forward without fuel supply chain delays. We also successfully demonstrated our end-to-end fuel recycling process. proving our ability to close the nuclear fuel cycle and leverage both fresh and recycled fuel for long-term sustainability and growth. As we continue to execute on our strategy, we remain committed to keeping the market informed with clear and consistent updates on our progress. Our company updates are structured around six key focus areas. Project execution, reactor licensing progress, fuel fabrication and recycling, customer pipeline development, strategic partnerships for corporate and business development, and financial updates. The last quarter was marked by major commercial regulatory and technology milestones that drive us toward commercialization. To meet increasing customer demand, we expanded our powerhouse offering to support up to 75 megawatts of power output, building on the same design architecture of the 50 megawatt powerhouse to deliver more power without changing our reactor design, footprint, or regulatory framework. This scalable platform strengthens our ability to serve energy-intensive industries efficiently. On the regulatory front, we continue to advance key approvals with the NRC and DOE ensuring steady progress towards deployment. We are working with the NRC through a pre-application readiness assessment for our Aurora Powerhouse combined license application at Idaho National Laboratory. Commercially, we signed a landmark 12 gigawatt master power agreement with SWITCH, underscoring the growing demand for reliable carbon-free baseload power and positioning OKLO at the forefront of the energy transition. We're also strengthening our capabilities through strategic partnerships. Our agreement with our power provides near-term natural gas solutions as a bridge to nuclear, offering customers flexible energy options that can accelerate timeframes. Additionally, our MOU with Lightbridge explores co-locating commercial fuel fabrication and recycling, reinforcing our long-term fuel strategy. Beyond power generation, we've expanded into the high-value radioisotope market with the completion of our Atomic Alchemy acquisition. We continue to make progress towards near-term radioisotope opportunities and in the regulatory pre-application work to deploy their VIPER reactor. We're also driving next generation materials innovation through collaborations with the DOE and Oak Ridge National Laboratory. With strong financial positioning, scalable technology, and growing customer demand, we entered 2025 with clear momentum, accelerating toward deployment and cementing Oklo as a leader in the advanced nuclear space. Over the years, we've made significant progress in refining our powerhouse platform. We initially developed both 15 megawatt and 50 megawatt designs, but I consolidated our approach around a 50 megawatt architecture. This allowed us to scale power output efficiently by simply adjusting things like fuel load and heat exchangers. With this approach, we can flexibly deliver between 15 megawatts and 75 megawatts from the same design platform, adapting to different customer needs while maintaining a streamlined supply chain and regulatory approach. The decision to scale up to 75 megawatts was driven by demand characteristics from large energy users, particularly data centers. This power range aligns well with the infrastructure of these customers. including at the data hall level, and it reduces the number of reactors needed to support gigawatt scale projects. We anticipate the majority of our plants will operate in the 60 to 75 megawatt range. Importantly, this update does not introduce new technical, regulatory, or design risk. We're leveraging the same core technology, optimizing it to deliver more power while maintaining the benefits of a compact, repeatable system. By focusing on design, flexibility, scalability, and cost efficiency, OKLO continues to provide innovative and capital-efficient nuclear power solutions to meet the evolving needs of our customers. OKLO continues to make steady progress on our first commercial Aurora powerhouse at the Idaho National Laboratory, or INL. We are actively engaging with the U.S. Nuclear Regulatory Commission through a pre-application readiness assessment for our Aurora powerhouse combined license application at Idaho National Laboratory. This process enables NRC staff to review and familiarize themselves with OCO's licensing materials ahead of the formal application submission, streamlining regulatory review and positioning us for an efficient approval process. We have submitted our Licensed Operator Topical Report, a key step in enabling our fleet-based licensing approach. This approach lowers costs, accelerates deployment, and enhances operational efficiency. Beyond licensing, we have begun drilling, testing, and site characterization efforts at INL, critical steps toward construction. Backed by a DOE site use permit, the project remains on track for deployment in late 2027 to early 2028. At Oklo, our business model and licensing strategy provide a more streamlined regulatory pathway compared to conventional nuclear approaches. Rather than pursuing separate construction and operating licenses or obtaining a design certification or DC, which is not a license or permit to then later license out to customers who then have to obtain the actual commercial permits and or licenses. We take a direct path by securing a combined license or. The single step approval allows us to build and operate without additional regulatory hurdles. Unlike the DC process, which requires multiple and separate NRC reviews, and unlike the Part 50 approach, which requires separate NRC reviews and approvals for construction and operation, the COL includes all key NRC-specific reviews up front. This integrated approach eliminates duplicative reviews and accelerates deployment. Ultimately, only after completing these regulatory steps can a company begin construction, operate a plant, and generate power and revenue. Local's approach ensures that we reach those milestones faster and with greater certainty. As I just alluded to, what sets OKOA apart is our direct-to-COL approach. We secure a combined license in one streamlined process, whereas others in the industry pursue design certification or construction permits first, requiring separate construction and operating approvals later. We believe this makes our approach faster, more efficient, and more aligned with deployment. Because we build, own, and operate our powerhouses rather than selling designs or licenses, streamlining regulatory approval under a single process makes strategic sense. Securing our first COL will also serve as a reference license in our COL, allowing future applications and SCOL to focus only on site-specific differences, greatly reducing approval timelines. By minimizing those differences, we can gain faster regulatory approvals for each additional plant, enabling rapid scaling. This approach not only simplifies licensing, but strengthens our ability to bring advanced nuclear power to market faster and more efficiently than traditional models. Our path with INL paves the way for future sites through subsequent combined licenses, reducing review timelines under the Advance Act, and accelerating deployment at scale. OKLO's licensing strategy is not just about getting approval, it's about getting to multiple powerhouses to deployment operation and revenue generation faster than conventional approaches. At Okla, we have built deep expertise in working with both the NRC and DOE, making significant regulatory progress as we move toward deploying our first commercial Aurora powerhouse. We completed key pre-application work with the NRC, including safety analysis, operational programs, and environmental siting. Additionally, we submitted fleet-based license operators and staffing methodology topical reports, important milestones that enable a standardized fleet-wide staffing model. Unlike traditional nuclear plants, which require site-specific operator licensing, our approach improves efficiency, reduces costs, and accelerates deployment. Alongside our NRC progress, we are working closely with the DOE since our first commercial powerhouse will be deployed at the Idaho National Lab. We finalized a memorandum of agreement with DOE granting Oklo access to begin critical site investigations, a major step that allows us to conduct essential groundwork to prepare for construction. With this approval, we have begun site characterization activities, including drilling to study soil and rock conditions. Looking ahead, we are advancing the Quality Assurance Program description for design, construction, and operations, which is currently in progress. These milestones reinforce OPWA's strong regulatory momentum and clear path to deployment. Each step moves us closer to our goal of delivering advanced nuclear power through a streamlined, efficient regulatory approach. Additionally, the NRC is actively advancing the implementation of the ADVANCE Act, which is modernizing the regulatory landscape for advanced nuclear. The key component of this effort is a significant reduction in licensing fees, making regulatory processes more accessible and cost-effective for advanced reactor developers. The NRC has proposed cutting the hourly rate by nearly 55% for advanced reactor applicants. This change, set to take effect on October 1st, 2025, directly lowers the financial burden of licensing. Securing fuel is a critical priority for Oklo, and we continue to make strong progress. We have successfully secured fuel for our first core load at INL through a competitive selection process and are expanding access for future deployments. Our MOU with Centris establishes a long-term HALU supply, ensuring a scalable domestic source. It is important to highlight Centris is already producing HALU today and continues to scale their production. Beyond securing fuel, we are also collaborating with Lightbridge, who is developing next-generation light-water reactor fuels. We are exploring opportunities where LightBridge could manufacture their fuel at our fuel fabrication facility, given we are both fabricating metallic fuel forms. Furthermore, we are working together on our recycling activities and evaluating the benefits of recycling used LightBridge fuel into our reactors. With that, I'll turn it over to Craig for customer development, atomic outcomes, and financial updates.