NuScale Power Corporation — 2023 Form 10-K Summary
Reporting period: Fiscal year ended December 31, 2023; filed March 15, 2024. This is an annual filing, not a standalone fourth-quarter report. NuScale develops small modular nuclear reactors and related plant designs and services. It has not delivered a module or generated material revenue from module sales; reported revenue is principally engineering and licensing services.
Financial performance and liquidity
| Metric | FY 2023 | FY 2022 |
|---|---|---|
| Revenue | $22.8 million | $11.8 million |
| Cost of sales | $19.0 million | $7.3 million |
| Gross profit / margin | $3.8 million / 16.9% | $4.5 million / 38.0% |
| Operating expenses | $279.4 million | $234.5 million |
| Operating loss | $275.6 million | $230.0 million |
| Sponsored cost-share funding | $61.0 million | $72.5 million |
| Net loss | $180.1 million | $141.6 million |
| Class A loss per share | $0.80 | $0.51 |
| Cash used in operating activities | $183.3 million | $148.6 million |
Revenue nearly doubled, but gross profit declined as cost of sales grew faster than revenue. The operating loss widened, reflecting higher research and development, general and administrative, and other expenses. R&D expense included a $49.8 million CFPP settlement charge. A $23.6 million non-cash gain from the lower fair value of warrant liabilities and $61.0 million in cost-share funding partly offset the operating loss.
At year-end, cash and cash equivalents were $120.3 million, restricted cash was $5.1 million, and debt was zero. Current assets were $154.5 million versus current liabilities of $87.5 million. The company reported an accumulated deficit of $240.5 million. Cash, cash equivalents and restricted cash fell by $118.9 million during 2023. NuScale said it expects available funds, together with cost reductions, to cover operating and required R&D needs for the next 12 months; that assessment depends on management’s plans and is not assurance of future financing.
The company sold $9.8 million net of Class A shares through its at-the-market program during 2023, with up to $139.6 million remaining available at year-end. It subsequently reported $5.4 million of net ATM proceeds. Further equity issuance could dilute shareholders.
Material changes and business developments
- NuScale terminated its CFPP development and long-lead-material agreements under a November 2023 release agreement. It paid $49.8 million to CFPP, subject to adjustment, and may incur additional wind-down or DOE-related costs.
- NuScale recorded $36.4 million of long-lead materials in progress and a related $32.3 million liability. DOE’s lien and the materials’ disposition remain unresolved; the company may need to pay DOE, and reuse of the materials is not assured.
- Fluor accounted for 74.1% of 2023 revenue, making revenue highly concentrated. NuScale also incurred $32.9 million of expenses for services from Fluor, its majority owner.
- In January 2024, NuScale announced a workforce reduction of 154 employees, or 28%; it expected a one-time charge of approximately $3 million in first-quarter 2024.
- The NRC’s 2020 approval covers the 50 MWe-per-module design. The 77 MWe module and six-module design application was accepted for review in July 2023; NuScale expects a decision by July 31, 2025.
Outlook, risks and unusual items
NuScale forecasts no financial results or formal revenue guidance in the supplied filing. Management expects operating losses and negative operating cash flow to continue until commercialization. The company identifies RoPower in Romania as its only Class 1 customer, with FEED work underway and a targeted 2029–2030 commercial-operation date. NuScale has not secured a binding contract to deliver NPMs; definitive supply and EPC agreements remain necessary. Its wider pipeline includes more than 100 potential customer opportunities, many based on non-binding MOUs.
Key risks include the need for additional funding, uncertain customer conversion, the loss of CFPP, potential delays or cost overruns in manufacturing and deployment, regulatory approvals in the United States and abroad, and competition from established energy sources and foreign SMR developers. DOE cost-share support is important, and future appropriations are uncertain. NuScale also disclosed shareholder and former-member class-action litigation; it said losses were not considered probable and recorded no liability. A January 2024 fire destroyed its Portland office, but the company reported no injuries or lost critical records and expected insured losses to be immaterial.
The auditor issued an unqualified opinion on the financial statements. Management reported effective disclosure controls and internal control over financial reporting as of December 31, 2023; the auditor was not required to attest to internal-control effectiveness.
Most important facts for investors to verify
- Cash runway, actual post-year-end cash use, and whether customer contracts or new financing are secured.
- Final CFPP settlement amount, any additional DOE payments, and whether the long-lead materials can be transferred and used.
- Progress toward binding RoPower module-supply and Fluor EPC contracts, and the status of FEED Phase 2.
- NRC review progress and timing for the 77 MWe design approval, plus customer site-specific approvals and international licensing.
- Revenue concentration with Fluor, continued cost-share funding, and potential dilution from ATM sales, exchanges, options and warrants.
- Developments in the disclosed class-action lawsuits and any resulting financial exposure.