NuScale Power Corporation — Q1 2024 Form 10-Q
Reporting period: Three months ended March 31, 2024. Financial statement amounts are in millions of dollars unless otherwise noted. NuScale is commercializing its small modular reactor technology; the filing identifies RoPower Nuclear S.A. as its sole current “Class 1” customer. The CFPP project was terminated under a November 2023 release agreement.
Key financial results
| Metric | Q1 2024 | Q1 2023 |
|---|---|---|
| Revenue | $1.4 | $5.5 |
| Gross margin | $0.6; approximately 46.7% of revenue | $2.1; approximately 37.9% of revenue |
| Operating loss | $(44.0) | $(55.5) |
| Sponsored cost share | $3.4 | $17.9 |
| Net loss | $(48.1) | $(35.6) |
| Net loss attributable to Class A common stockholders | $(16.6); $(0.21) per share | $(11.0); $(0.16) per share |
| Cash used in operating activities | $(33.5) | $(43.1) |
At March 31, 2024, cash and cash equivalents were $132.0, with $5.1 of restricted cash and no debt. Current assets were $156.8 and current liabilities $85.1. Accumulated deficit was $257.0. Total liabilities were $101.1, including a $32.3 long-lead material liability and $14.8 in warrant liabilities.
Changes and notable items
- Revenue and cost of sales declined mainly because of the loss of the CFPP contract. R&D expense fell to $13.2 from $27.6, reflecting lower professional fees and compensation costs. Sponsored cost share fell to $3.4 from $17.9, largely due to the CFPP contract ending and lower DOE funding.
- Despite a narrower operating loss, net loss increased to $48.1, partly reflecting the lower sponsored cost share and a $9.0 noncash loss from the increase in warrant fair value.
- G&A rose to $19.4 from $14.7, including higher business development and marketing costs and a one-time $3.2 workforce-reduction charge. NuScale announced a reduction of 154 full-time employees, or 28%, in January 2024.
- Financing provided $45.2, including $41.6 net proceeds from issuing 8.5 million Class A shares through the at-the-market program and $3.6 from option and warrant exercises. The company reported up to $97.0 of ATM capacity at quarter-end; after quarter-end, it sold additional shares for $9.4 net proceeds.
- Long-lead material work in process increased to $40.3. The related $32.3 liability reflects the estimated cost to obtain the materials after final settlement and compensation of DOE’s investment.
Outlook, risks and contingencies
- Management expects the NRC to complete review of the six-unit, 77 MWe Standard Design Approval application by July 31, 2025. The company expects operating losses and negative operating cash flow to continue until commercialization.
- Management says current funds, cost measures and planned actions are expected to cover required R&D and operating needs for the next 12 months. It is negotiating for revenue-producing customer contracts and may implement phased cost reductions if contracts or capital raising are delayed. Long-term operations depend on additional customer commitments and/or financing.
- The company has no recorded liability for two disclosed litigation matters: a dispute brought by purported former NuScale LLC members, and consolidated securities class actions alleging misleading statements about the business and customer agreements. NuScale says a loss is not probable; outcomes remain uncertain.
- DOE may demand repayment of fees invoiced for NPMs 2–6 if NuScale fails to initiate commercial operation of NPM 1. The filing does not provide a clear estimate of potential repayment.
- The $5.1 restricted cash balance collateralizes a $5.0 letter of credit connected with CFPP demobilization and wind-down costs. Final disposition of the long-lead materials and settlement remain pending.
Important facts for investors to verify
- Progress toward signed customer contracts and the commercial pipeline, particularly given CFPP’s termination and RoPower’s status as the sole current Class 1 customer.
- Cash burn, available financing and potential dilution from further ATM sales; confirm whether the stated 12-month liquidity expectation remains achievable.
- NRC review milestones and timing for the expected 2025 Standard Design Approval.
- Final CFPP/DOE settlement, ownership and use of long-lead materials, and any exposure to repayment or wind-down costs.
- Developments in the shareholder and former-member litigation, and any change in the DOE repayment contingency.