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AltC Acquisition (ALCC) - 2024 Q2 - Quarterly Report
ALCCAltC Acquisition (ALCC)2024-08-13 22:40

Business Development and Partnerships - The company secured a site use permit from the U.S. Department of Energy for the Idaho National Laboratory and received a fuel award for a commercial Aurora powerhouse[145]. - The company has signed non-binding letters of intent with potential customers that could lead to over 1,350 MWe in capacity for Aurora powerhouses[146]. - The company aims to deploy a commercial-scale fuel recycling facility in the U.S. by the 2030s, leveraging the energy content in over 90,000 metric tons of used nuclear fuel waste[154]. - The first Aurora powerhouse is targeted for deployment in 2027, with ongoing regulatory approvals being a critical factor for success[146][160]. - The company plans to focus on a business model of selling power through power purchase agreements (PPAs), which is expected to generate recurring revenue[149]. - The company has formed a strategic partnership with Atomic Alchemy to enhance isotope production capabilities, addressing increasing demands in various applications[148]. Financial Performance - Total operating expenses for the six months ended June 30, 2024, were 25,141,366,withexpectationsfor2024tobebetween25,141,366, with expectations for 2024 to be between 40 million and 50million[163].Thecompanyreceivednetproceedsof50 million[163]. - The company received net proceeds of 260,859,623 from a business combination that closed on May 9, 2024[156]. - Operating expenses for the three months ended June 30, 2024, totaled 17,770,978,a430.017,770,978, a 430.0% increase from 3,352,966 in the same period of 2023[184]. - The net loss for the three months ended June 30, 2024, was 29,345,984,a555.829,345,984, a 555.8% increase from a net loss of 4,474,829 in the same period of 2023[184]. - Cash used in operating activities for the six months ended June 30, 2024, was 17,040,149,comparedto17,040,149, compared to 6,820,207 for the same period in 2023[176]. - As of June 30, 2024, the company had cash, cash equivalents, and marketable securities totaling 294,571,209[171].Thecompanyincurredalossof294,571,209[171]. - The company incurred a loss of 13,126,959 related to the change in fair value of simple agreements for future equity (SAFEs) for the three months ended June 30, 2024[187]. - The company expects ongoing significant operating expenditures to implement its business plan and develop its powerhouses[171]. - The loss from operations for the six months ended June 30, 2024, was (25,141,366),asignificantincreaseof(25,141,366), a significant increase of (18,452,102) or 275.8% compared to the prior year[189]. - Net loss for the six months ended June 30, 2024, was (53,368,069),anincreaseof(53,368,069), an increase of (44,184,267) or 481.1% compared to the same period in 2023[189]. Expenses and Cost Increases - Research and development (R&D) expenses increased by 8,885,873or484.78,885,873 or 484.7% to 10,719,142 for the three months ended June 30, 2024, compared to 1,833,269 in 2023[185]. - General and administrative (G&A) expenses rose by 5,532,139 or 364.0% to 7,051,836forthethreemonthsendedJune30,2024,comparedto7,051,836 for the three months ended June 30, 2024, compared to 1,519,697 in 2023[186]. - Research and development expenses rose to 14,379,784forthesixmonthsendedJune30,2024,reflectinganincreaseof14,379,784 for the six months ended June 30, 2024, reflecting an increase of 10,630,065 or 283.5% year-over-year[190]. - General and administrative expenses increased by 7,822,037or266.17,822,037 or 266.1% to 10,761,582 for the six months ended June 30, 2024, compared to the same period in 2023[191]. - Interest expense for the six months ended June 30, 2024, was 1,856,877,asubstantialincreasefrom1,856,877, a substantial increase from 462 in the same period of 2023[194]. - The weighted-average headcount for R&D personnel increased by approximately 68%, contributing to the rise in R&D expenses[185]. - The weighted-average headcount in research and development increased by approximately 64%, contributing to the rise in payroll and employee benefits expenses[190]. - The company anticipates that G&A expenses will continue to rise due to growth and increased costs associated with operating as a public company[168]. Income and Revenue - Interest and dividend income increased by 1,715,437forthethreemonthsendedJune30,2024,comparedtothesameperiodin2023,primarilyduetohighercashandmarketablesecuritiesbalances[188].Interestanddividendincomeincreasedby1,715,437 for the three months ended June 30, 2024, compared to the same period in 2023, primarily due to higher cash and marketable securities balances[188]. - Interest and dividend income increased by 1,856,415 for the six months ended June 30, 2024, compared to the same period in 2023, driven by higher cash and marketable securities balances[195]. - The change in fair value of simple agreements for future equity resulted in a loss of (29,919,959)forthesixmonthsendedJune30,2024,comparedtoalossof(29,919,959) for the six months ended June 30, 2024, compared to a loss of (2,495,000) in the same period of 2023, representing a 1,099.2% increase[194]. Legislative Impact - The ADVANCE Act of 2023 is expected to provide benefits to the nuclear industry, including reduced licensing timelines and enhanced support for the nuclear fuel cycle[164].