Press release·08/14/2026 23:01:02

Presentation of Financial Information

Beginning with the quarterly report on Form 10-Q for the three and nine months ended September 30, 2025, the company has elected to present all dollar amounts rounded to the nearest thousand dollars, instead of whole dollars as in prior periods. This change has been made to enhance the readability and consistency of financial disclosures.

Company Overview

The company is a pioneering nuclear energy technology company developing the SOLO Micro-Modular Nuclear Reactor, a breakthrough solution designed to address challenges in affordable, clean, decentralized energy production. The SOLO reactor represents a significant technological advancement, offering a compact, safe, and economically compelling alternative to traditional energy generation. The company’s strategic roadmap targets commercial deployment by 2028, with a focus on delivering a scalable, modular nuclear solution for diverse markets.

Recent Developments

The company entered into a lease for office space in Lucca, Italy, with a noncancelable term commencing April 1, 2026 and expiring March 31, 2032. The lease provides for annual base rent of approximately $88 (€75), which is adjusted annually in accordance with the Italian consumer price index.

Financial Performance

For the three months ended June 30, 2026, the company reported a net loss of $18,044, compared to a net loss of $1,145 for the same period in 2025. For the six months ended June 30, 2026, the company reported a net loss of $25,150, compared to a net loss of $2,593 for the same period in 2025. Net cash used in operating activities was $8,778 for the six months ended June 30, 2026, compared to $1,371 for the same period in 2025.

Key Factors and Trends Affecting the Business

The company’s business is affected by several key factors and trends, including:

1. Product Development Plan: The commercial rollout of the SOLO reactor depends on securing regulatory approvals, which may take longer than anticipated.
2. Funding and Investment: The company has limited financial resources and will likely need to raise additional capital to fund operations and complete reactor development.
3. Macroeconomic Conditions and Global Market Dynamics: The company’s business is sensitive to macroeconomic trends and risks, as well as global supply chain vulnerabilities.
4. Inflation and Cost Pressures: Escalating costs in manufacturing, regulatory compliance, talent acquisition, and raw materials could erode the company’s projected economic advantages.
5. Energy Market Evolution: The global energy transition and growth in data center energy requirements present both opportunities and challenges for the company.
6. Regulatory and Geopolitical Landscape: Changes in nuclear energy policies and geopolitical tensions could impact the company’s potential market access.
7. Technological and Labor Market Dynamics: The specialized nature of the company’s technology requires access to a global pool of highly skilled technical talent.
8. Economic Uncertainty Factors: Macroeconomic uncertainties, such as potential recessionary periods and fluctuations in investment trends, could affect the company’s funding capabilities and business development trajectory.

Emerging Growth Company and Smaller Reporting Company Status

The company has elected to take advantage of the extended transition period for complying with new or revised financial accounting standards as an emerging growth company. The company is also a “smaller reporting company” and may continue to take advantage of certain scaled disclosures.

Segment Reporting

The company operates as a single operating segment, which is also its sole reportable segment, focused on the research, development, and future commercialization of the SOLO micro-modular nuclear reactor.

Results of Operations

The company has not generated any revenue from product sales to date and does not expect to generate revenue for the foreseeable future. The company’s operating expenses consist primarily of general and administrative expenses and development costs.

For the three months ended June 30, 2026, the company reported a net loss of $18,044, compared to a net loss of $1,145 for the same period in 2025. The increase in net loss was primarily due to a $12,492 unrealized loss in the fair value of the share-settled contingent liability, a $3,919 increase in operating expenses, and a $1,923 change in the fair value of warrant liabilities.

For the six months ended June 30, 2026, the company reported a net loss of $25,150, compared to a net loss of $2,593 for the same period in 2025. The increase in net loss was primarily due to a $15,827 unrealized loss in the fair value of the share-settled contingent liability, a $9,104 increase in operating expenses, and a $1,840 change in the fair value of warrant liabilities.

Liquidity and Capital Resources

As of June 30, 2026, the company had cash of $91,055 and an accumulated deficit of approximately $632,426. The company is dependent on its existing cash resources to fund operations while it advances toward commercialization. The company continues to evaluate and pursue potential liquidity-enhancing actions, such as equity or debt financing, strategic transactions, or other funding arrangements.

The company’s primary sources of liquidity are cash on hand, and its primary uses of liquidity are operating expenses and licensing activities. The company continues to actively monitor its liquidity position and may seek additional financing to support its long-term development and commercialization strategy.

Cash Flows

For the six months ended June 30, 2026, the company used $8,778 in net cash from operating activities, compared to $1,371 used in the same period in 2025. The company used $378 in net cash from investing activities for the purchase of equipment during the six months ended June 30, 2026. There was no net cash from investing activities during the same period in 2025. There was no net cash from financing activities during the six months ended June 30, 2026, compared to $4,984 provided in the same period in 2025, primarily from proceeds of bridge loans and related party loans.

Critical Accounting Policies and Estimates

There have been no material changes to the company’s critical accounting policies and estimates from those disclosed in its Annual Report on Form 10-K for the year ended December 31, 2025.