NuScale(SMR)2025-03-03 22:25Technology Development and Innovation - NuScale has invested over 500 million and took 41 months to complete[90]. - The company completed its Standard Plant Design in December 2022, which will aid in deploying site-specific designs for international customers[93]. - NuScale's growth strategy includes replacing carbon-intensive coal-fired power plants and targeting sectors like hydrogen production and water desalination[95]. Regulatory Approvals and Support - The NRC approved NuScale's 12-module design for 160 million watts of thermal power in February 2023, marking a critical milestone for customer development plans[38]. - The NRC has approved NuScale's methodology for calculating the emergency planning zone (EPZ) size, allowing for a 300-yard EPZ, significantly smaller than the 10-mile radius required for existing plants[66]. - NuScale has received significant financial and regulatory support from the DOE, enhancing its competitive position in the market[84]. - The U.S. Department of Energy has granted NuScale over 70 million[130]. - A second SDA Application for NuScale's 6-module, 77 MWe NPM plant design was submitted in January 2023, with the NRC accepting the application for review on July 31, 2023[131][132]. - The NRC is expected to complete its review and grant SDA approval by mid-year 2025, allowing customers in the U.S. to reference the certified design for expedited licensing[132]. - NuScale's licensing strategy aims to obtain approval in the shortest possible time by engaging regulators early and developing high-quality applications[129]. - The company has engaged with international regulators, including the Canadian Nuclear Safety Commission and the Office of Nuclear Regulation in the U.K., to facilitate regulatory approval abroad[137]. - NuScale completed the Technical Safety Review of Design Safety (TSR-D5) with the IAEA in December 2024, evaluating the design against IAEA safety requirements[136]. Financial Performance and Projections - The company expects service revenue to begin approximately five years prior to a power plant's commercial operation date, providing consistent recurring revenues[40]. - NuScale Corp is a holding company with no material assets other than its ownership of NuScale LLC units, making it dependent on distributions from its subsidiaries for financial obligations[147]. - NuScale Corp's ability to pay taxes and dividends is contingent on the financial results and cash flows of NuScale LLC, which could be adversely affected by various factors[147]. - The company has not yet commercialized or sold NPMs, and the initial deployment is contingent on binding agreements with RoPower and Fluor[158]. - The company has incurred significant losses since inception and expects to continue incurring losses in the future, making profitability uncertain[166]. - The market for SMRs is not yet established, and the growth potential may be slower than expected, impacting revenue projections[170]. - The company has not generated any material revenue to date and expects to require additional future funding due to substantial overhead expenses[182]. - The company anticipates that expenses and capital expenditures will increase in the long term as it develops and advances its SMR technology and related services[182]. Strategic Partnerships and Market Position - The company has established strategic partnerships with key suppliers and investors, including Fluor, to enhance its supply chain and market reach[105]. - NuScale has a strong pipeline of potential customers, including governments and industrial companies, focusing on baseload generation and industrial applications[91]. - NuScale relies heavily on strategic partnerships for commercialization, and any loss of these relationships could hinder business expansion[171]. - The company faces competition from established SMR operators in China and Russia, which may have advantages in marketing and funding[161]. Risks and Challenges - Delays in the development and manufacture of NPMs could adversely impact business and financial condition, potentially delaying deliveries beyond 2028[162]. - The cost of electricity generated from NuScale's NPMs may not be competitive in certain markets, particularly in the U.S. where electricity prices are lower[168]. - Supply chain disruptions and increased costs of raw materials could negatively affect manufacturing processes and overall business operations[180]. - The company is highly dependent on its senior management team, and the loss of key personnel could impair its ability to execute its business strategy[181]. - The company may incur additional costs associated with operating as a public company, which are not reasonably estimable at this time[182]. - The company may face potential dilution of stockholder equity if additional funds are raised through issuing equity securities[183]. - The company is currently involved in a class action lawsuit that claims management made materially false and/or misleading statements regarding the company's business and operations[211]. - Cybersecurity risks continue to pose a threat, with increasing sophistication of cyberattacks that could impact operations and result in data breaches[205]. - The company has not experienced a material breach to date, but the risk of such events occurring continues to intensify[206]. - The presence of negative reports from short sellers could lead to regulatory inquiries, diverting management's time and resources[232]. Compliance and Governance - The company must comply with Section 404 of the Sarbanes-Oxley Act, which requires effective internal control over financial reporting[234]. - A material weakness in internal control over financial reporting has been identified, which could result in material misstatements in financial statements[234]. - Ongoing revisions to disclosure and governance practices may result in additional compliance costs[229]. - The company is subject to evolving laws and regulations, leading to increased general and administrative expenses and management distraction[228].