Terra Innovatum Global N.V. Ordinary shares (NKLR) Q4 2025 Earnings Report, Transcript and Summary

Greetings, and welcome to the Terra Innovatum Global Fourth Quarter Fiscal Year 2025 Strategic Business Update Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the call over to your host, Mr. Giordano Morichi, Founding Partner, Chief Business Development Officer and Director of Investor Relations. Please go ahead, sir.

Thank you, operator, and good morning, everyone. My name is Giordano Morichi. I'm the Founding Partner and Chief Development Officer and Director of Investor Relations of Terra Innovatum. Today, we'll provide a business update on Terra Innovatum, including recent progress across the SOLO™ micro-reactor program, regulatory engagement, commercialization activities, technology development milestones, including Mersen Graphite prototype and key supply chain advancements. For today's call, please note that you can follow along using the accompanying presentation, which is available for full download in the Investors section of Terra Innovatum's website at terrainnovatum.com. Before we begin, I want to briefly address timing around our 10-K filing. As announced, we anticipate filing in our 10-K in the near term as we finalize reporting under a new CFO leadership. Importantly, this does not impact our operations, liquidity or strategic process and progress. And today's call is focused on substantial business momentum we are seeing across the platform. Further, I want to also address something we've seen on certain data platforms. It was brought to our attention that one of the SEC filings was reported by a major market data provider, giving the appearance that one of our fundings having sold a portion of their stake in the company. This is incorrect and the data has been corrected. So to be clear, this management team has not sold any of their shares. Moving on then. Today, we're very thrilled to provide an update on Terra Innovatum, including progress across the solar micromodule reactor program, regulatory advancement, supply chain execution, commercialization activity and key technology milestones. I'm joined today on the call by Alessandro Petruzzi, Co-Founder and CEO; and Cathy Williams, our Chief Financial Officer. Please turn to Slide 2 to review cautionary statements. As you're likely aware, during the formal presentation as well as Q&A sessions, management may make some forward-looking statements about our current plans, beliefs and expectations. These statements apply to future events that are subject to risks, uncertainties and other factors that could cause actual results to differ materially from what is stated here today. These risks, uncertainties and other factors are provided in the earnings release as well as other documents filed by the company with the Securities and Exchange Commission. These documents can be also found on our website at sec.gov. Now if you please turn to Slide 3, I'll turn the call over to Alessandro to begin. Alessandro?

Thank you, and thank you to everyone for joining us today. I would like to provide a glossary of the key terms and [indiscernible] we use through the presentation including SOLO, FOAK, NOAK, LTE and various reactor types. I won't go through each of them. This is a useful reference as we discuss our [indiscernible] technology, regulatory path and commercialization plans. When we started Terra Innovatum, we're not trying to improve traditional nuclear. There was a different problem we went out to solve. Power is becoming a constraint across the industry and not just hyperscalers. It is a material and growing demand among industrial users for reliable, always on energy that they can operate and grow. [indiscernible] solutions don't fully address that need. Large-scale nuclear is complex and slow to deploy, while intermittent renewable don't provide continuous outlook. So we [indiscernible] something that does that Innovatum is creating a new category. Distributed modular micro reactor designed to deliver renewable energy directly [indiscernible]. This allow us to serve immediate demand today while maintaining a clear path to larger scale deployments over time. Turning to Slide 6. 2025 was a year of substantial progress for Terra. Across all of the core areas that matter most to our success.

One moment please moment. [Technical Difficulty] Please continue, Mr. Petruzzi.

Apologies for this disconnection. We start again with Slide #6. So I was saying that 2025 was a year of substantial progress for Terra across all of the core areas that matter more to our success and the advancement of our project. Regulatory execution, supply chain liveness and commercial market development. Starting with the regulatory and licensing, we moved from planning into structural execution. We advanced our engagement with the U.S. Energy achieved accepted bucketing of topical papers and white papers to review and build the foundation for the next major milestones height that include approval of plants or design criteria, construction private application submission and ultimately the operating license [indiscernible]. Just as importantly, we made significant progress on the industrial side of the business. We secured the end-to-end supply chain required for SOLO from 130 initially identified suppliers without selective 30 for contract agreement and initiated procurement activities that support both first deployment and early follow-on [indiscernible]. We also began [indiscernible] manufacturing activity to [indiscernible] and successfully produced the graphite prototype for [indiscernible] together with Mersen, which we view as an important validation of both the design and the manufacturability of key reactor components. And on the commercial side, we continue to demonstrate that market demand is really growing. We ended the year with approximately $4 billion in pre-commercial commitment, while expanding positioning our SOLO is a flexible platform that can sell a broader range of industrial infrastructure and data center application across geographies. So when we look back at 2025, we see a year where Terra materially reduced the execution risk across the business. We have demanded the regulatory path, secured the supply chain and deepened the commercial traction, all of which move us closer to deployment and commercialization. Moving to Slide 7. Here, we would like to highlight the regulatory framework and outline the main U.S. NRC we have completed so far. Our licensing process formally began in January 2025 with the submission of our regulatory engagement plan to the NRC. Since then, we have completed multiple docketed submission, including principal design criteria, our quality assurance plan, safeguards and material control and accounting methodology and [indiscernible] across the sign topical efforts, along with several white papers addressing key elements of the SOLO-60K. We maintain continuous [indiscernible] and engagement with energy staff through workers, shop and technical meetings. Even today, we are going to have a meeting with U.S. NRC. And the pay application phase is now nearing completion as we transition to PSAR in construction permit application readiness. It is important to note that all our submission and meeting with the U.S. NRC public and our progress as well as our peers can be tracked. We encourage our investors to read this report and follow along on our path to deploy. The next Slide 8 highlights the regulatory retail wins. Regulatory nuclear has historically been good as is constraint. What we are seeing now is a different approach. The development of 10 CFR Part 57 represent a structural shift in how micro reactor will be licensed in the United States. For the first time, the framework is being designed specifically around system like SOLO, factory build model and deployable at scale. In our view, this is a clear signal that the regulators expect micro-reactors to play a meaningful role in the near energy future and are actively building the framework to support high-volume deployment. So it's not adapting to this [trend]. It was designed and built for it. And moving to Slide 9. I would like now focus on the supply chain. This is a major execution milestones for Terra. We have secured the end-to-end supply chain required to manufacture and deploy SOLO. That included a critical nuclear grid component such as fuel, the pressure test control system and cost structure as well as our non-nuclear component, plant system, including the turbine heat exchange systems and support infrastructure. And importantly, these are not conceptual revision. We have built area to integrated network of qualified suppliers that can support the rigorous engineering and manufacturing standards this platform demands. This market because supply chain is where many advanced reactor program ramp into delays. Longly components and procurement and certain [indiscernible] deployment even when the technology [indiscernible]. We are working to address that risk early. By securing this input now we have improved our readiness for publication, reducing potential to equipment in bottlenecks and strengthening our ability to move as the regulatory milestones are achieved. That fits directly with our broader execution model, we have licensing, manufacturing and supply chain development are all advancing in part. So the takeaway is now simple. Today, we are not just designing solely, we move it far beyond the early stage of what this product can be. Today, we are preparing to build and position SOLO for deployment to demonstrate what this solution can do. In this industry, supply chain is where time lines break and we have addressed that risk earlier. And now we are able to build, thanks to the -- to our work plan supply chain partners as this is outlined on Slide 10. We have established a strategic alignment with leading partners across fuel components, manufacturing and deployment, including [indiscernible] Mersen, Ameresco and a Fortune 100 energy company and others. This partner provide nuclear grid systems, feul instrumentation and control and deployment capability that are critical to SOLO execution and scale-up. Moving to Slide 11. We may now turn to an exciting operational update. We are pleased to announce an important manufacturing milestones achieved recently together with Mersen. We have successfully produced a graphite reactor core engineering prototype for SOLO, which marks another step forward in our readiness for first deployment. This is significant because it reflects not just progress on a component. It shows that we are continuing to translate supply chain preparation in actual manufacturing execution, and that is exactly the kind of progress we want investors to see as we move towards the [indiscernible] deployment. As you know, graphite is a critical material within the SOLO rector call, and this component is designed towards key systems and core agents that influence thermal performance, integration and overall system [availability]. So achieving this prototype and the required tolerance is an important technical validation above the design and the manufacturability of the reactor. Just as importantly, this work helped establish the procedure, the quality control and the production standards that are required for repeatable manufacturing. In other words, this is not only about proving we can make the part one but actually helping build the industrial foundation required to scale from NOAK into serialized NOAK production. These milestones also based on our previously announced agreement with Mersen for nuclear-grade graphite and other critical materials. It reinforced that our supply chain strategy is not theoretical. It is producing tangible outcomes and supporting our target path to focus in 2027 and broader commercialization beginning in 2028. So overall, we view this is a meaningful proof point for Terra. It demonstrates progress at the intersection of engineering materials and manufacturing and we support our broader objective of moving SOLO from a completed design into [indiscernible] repeatable deployment platform. Turning to Slide 12. What's critical to understand about SOLO is that this is not a future concept. Our solution was specifically designed for the need to meet current industrial energy demand. We are actively engaging with customers today across a wide range of industry that need reliable carbon-free power in the 1 to 200-megawatt range that we think of as a retailing nuclear market. This is a massive underserved segment made up of thousands of industrial users around the globe who cannot access traditional nuclear but still require [indiscernible] dependable energy. SOLO was designed to serve that market with a standardized, sellable product where bespoke decade long infrastructure project that cost many billions of dollars just are not suitable. Most importantly is that this is the same platform scale from single unit deployment to multi-unit configuration capable of supporting larger loads like data center and industrial campuses. We are addressing immediate demand today while also positioning the platform to meet the much larger energy needs of tomorrow. And now let me introduce you to Slide 13, a fundamental evolution in our service deployed. Historically, one SOLO reactor meant roughly 1 megawatt electrical watt. What we have now unlocked is a configuration where multiple reactors in a period with a centralized power conversion, allowing us to generate 20 megawatts from just 16 costs. That shift [indiscernible] a lot. By decoupling the reactor from the turbine optimizing at the system level, we materially improve efficiency, reduced footprint and lower overall and complexity and cost. And importantly, this is not theoretical. We are developing this configuration and on-site and measure global turbine partner validating both the personal and the path to the deployment. SOLO NOAK, a model of product into a scalable application optimized power system. From an investor perspective, this is meaningful because we are providing an innovation now that directly lowers cost per megawatt, reduce physical footprint and expand the range of commercially viable deployment. In other words, it improved both unit economics and total addressable market at the same time. And the second innovation is how SOLO actually operate once it is deployed. And what you are seeing in Slide 14 is our ability to cover the full demand spectrum from [indiscernible] base loads to seasonal variation and short-duration peak spike all within a single system. What -- we do that by combining constant nuclear assets with a small amount of integrated capacitor storage, allowing us to respond dynamically without having incremental reactor capacity, that's a meaningful advantage. Traditional system requires significant overbuild or large-scale battery infrastructure to handle variability. We are achieving the same outcome with a fast, simple and more capital-efficient approach. The result is a system that can operate autonomously, adapt to real-world demand and deliver consistent power with new added complexity. For investors, that means we can deliver good quality, dispatchable power without the cost and scale of traditional storage solutions. That drives a structurally lower cost curve and position SOLO as a true replacement for both baseload and flexible generation. Turning to Slide 16. Our strategy has been consistent from day 1, build a system that is simpler, faster to deploy and scalable by design. At the center of that strategy is a fundamental different approach to conventional construction and deployment. Rather than building a nuclear project from scratch at each customer site. We are producing SOLO as a standardized factory build system. Units are assembled in one location under control condition and then delivered to the customer site for installation and connection. That matters for several reasons. First, we support much faster path to market by reducing on-site build complexity compressing deployment time line and enabling a more repeatable installation process. And second, we give out a platform that can scale globally, not one custom project at time, but an industrialized process designed for broader market penetration. This model is supported by the key building blocks we have already put in place, a progress and advancing licensing pathway, republication and construction activities that have been already initiated, a simplifying standardized design and a secure supply chain to support the execution. Today, we have reached a point where our first-of-a-kind [indiscernible] design is complete. Our supply chain is in place, and we are fully funded through our initial deployment phase. From an investor standpoint, what matters is this. We are no longer quoting a concept. We are executing a deployment strategy. Slide 17 introduced the demonstration of that strategy. I want to emphasize here how much more this is just reactive. SOLO is a building block of the energy infrastructure that can be deployed, replicated and scaled. Each unit delivers renewable baseload power and heat operate continuously and is designed to run for decades with minimum intervention. But what makes SOLO truly differentiated is not just the performance. It's how it's built and deployed. This is a factory assembly system designed for repeatability of bespoke construction. And that shift from megawatt project to product is what really allow the scalability of this business. Slide 16 highlights SOLO key differentiators. SOLO is designed to be safe by physics. There is no risk of the [indiscernible] exposure, [indiscernible] risk after [indiscernible] and no requirement for an exclusion zone, which together support deployment across a wide range of commercial and industrial sites. The reactor is a factory build using [indiscernible] component. It uses low enriched uranium fuel that is already NRC licensed and available at commercial scale and offers the stability in output, electricity, process heat and [indiscernible] across diverse end user industry. Our licensing pathway and the FOAK, NOAK design provide what we believe is an industrial-leading [indiscernible] to market with current cash expected to fully fund the FOAK. We also believe SOLO is well aligned with the NRS developing Part 57 framework for micro reactors, which is intended to better accumulate features such as factory fabrication, transportability, model of deployment, automation and remote operation, all of which support a more streamlined and potentially faster regulatory pathway over time. To explain further, FOAK to NOAK means that the reactor we deployed first is the same reactor we intend to commercialize. We are not demonstrating one design and then redesigning for scale. Combined with our licensing power pathway, that design [indiscernible] is a real key differentiator for SOLO and our platform. On Slide 19, we stepped back from the individual units and look at what makes SOLO scalable on global basis. We see 4 core pillars of differentiation here, global market penetration, nonproliferation alignment, power scalability and output versatility. SOLO's low-enriched uranium-based design is aligned with global nonproliferation standards, support deployment across both U.S. and international markets. The SOLO platform is scalable and single-unit application to multi-unit fee deployments depending on the customer needs. And last but not least, SOLO is versatile in what it can deliver, including electricity, fleet and rates across a wide range of end markets. Moving now to Slide 20. One of the most important decisions we made earlier was not to become a manufacturer. Instead, we built Terra as a [indiscernible] company focused on design, integration and deployment while levering a global network of nuclear qualified suppliers. This allows us to remain capital efficient while still scaling of thousands of units. It also significantly reduced educational risk. We are not building manufacturing capacity from scratch. We are activating capacity that already exists. From an investor perspective, this model is what enables both speed and scale with the traditional capital burden associated with nuclear. The benefit of this model includes commercial and regulatory reasons, an asset-light capital structure, scalability to thousands of units and accelerated time to market. Moving now to Slide 21. We have crossed a key threshold as a company. Our design is complete. Our supply chain is secure. Manufacturing has begun, and our regulatory process is now advancing. There is no longer a concept story we are executing towards deploying. And now I'm excited to provide an update on our roadmap to FOAK and commercialization beginning on Slide 23. This slide highlights how our license approach refers fundamentally from traditional nuclear. On the right, you can see the conventional pathway where each step is potential. You complete your initial submission, obtain first-of-a-kind approval and then effectively start over with new licensing and redesigning work to reach commercial deployment. Our approach is different. First, we are pushing a parallel licensing strategy, advancing both the construction permit and creating license simultaneously with [indiscernible]. This allow us to compress some line and avoid the delay inherent in a step-by-step process. Second and critically, our FOAK [indiscernible] design are identical. That means the unit we demonstrate is the same as the one we commercialized in meeting the design and licensing and additional engineering between phases. And third, this leads directly to accelerated commercialization. By combining a simplified design with a regulatory pathway aligned with micro-reactors particularly the low to mid of Part 57, we expect to move from demonstration to fix deployment far more efficiently than traditional nuclear projects. The result is a streamlined pathway where FOAK approval effectively becomes the bridge to commercialization rather than beginning of a new process. And moving to Slide 24. We will keep this at high level for now as we have worked through each of these components already. What is important to note today is how they have all come together. This road map show quite simplistically and evidently that we are no longer advancing isolated work stream. We are moving on to operating in a phase where everything is moving seamlessly in parallel. Our regulatory process is progressing. Our supply chain is in place and ready to scale. And on commercial side, we are moving from evaluation to real site selection and now deployment plan. And those 3 elements, licensing, manufacturing and deployment are aligned and that alignment is what enables the first of a kind. And just as importantly, it's what allows us to move beyond FOAK [indiscernible], where this becomes a repeatable, scalable model, not a one-off project. So rather than thinking about this as a time line on individual milestones, we think about it as a convergence point where years of development transition into execution. And as we move through 2026 and into 2027, that convergence is what positions us to deliver our first deployment and begin scaling from here. And on the topic of scaling, I will now hand it over to Giordano to give an update on commercialization progress.

Thank you, Ale. We currently have approximately [ 200 units ] under nonbinding MOUs, representing roughly $4 billion in potential value. While this agreement were nonbinding, they reflect the real counterparties, active site level engagement and growing demand, not early-stage exploration. Customers are increasingly seeking deployable solution to solve immediate power constraints, and that is exactly what's SOLO is designed to deliver. If you look at '27, our commercialization strategy is built around scalable deployment across U.S. and international markets, leveraging SOLO's non-proliferation online design and modular architecture. SOLO uses of low-enriched uranium fuel is aligned with the treaty on a non-proliferation of nuclear weapons and support deployment in both nuclear and nonnuclear weapon states. In the U.S., this enables deployment across government and defense sectors, including the Department of War and on and off federal land. Essentially, it supports deployment in Europe allied jurisdictions and nonnuclear countries under appropriate safeguards. If you look at '28, you will find details on the first deployment site Rock City Admiral Park. Our first-of-a-kind deployment is planned at Rock City's underground Industrial Park, where our MOU includes an option to deploy up to 50 reactors over time or 50 megawatts electric of capacity. The expected initial term is 15 years with potential for up to 45 years of operations through modular core-swap subject to NRC approval. And the 6 million square foot underground site provides an ideal environment for licensing, testing and construction. Rock City will provide a controlled environment for first deployment critical for execution and validation. On Slide 29, Uvation position us directly within the AI infrastructure build-out, where power availability is rapidly emerging as a critical growth constraint. We are planning a 1-megawatt electric SOLO-powered pilot deployment to support next-generation AI with high-performance computing data centers with the ability to scale to 100 megawatts electric to additional SOLO units. It is behind-the-meter, carbon-free solution is designed to address the growing energy bottleneck facing AI and data center expansion, while positioning Terra at the center of one of the fastest-growing and most power-intensive segments of global economy. Moving to Slide 30. Ameresco gives us access to federal and commercial deployment channels at scale. We have entered into comprehensive framework to evaluate siting, deployment, construction, integration, operation and decommissioning planning for SOLO reactors across U.S. federal and commercial sites. The agreement started deployment for up to 50 SOLO reactors focusing on federal customers, such as Department of War, Department of Energy and also enables global outreach leveraging Ameresco's network. Slide 31 illustrates how SOLO addressing key challenges across 4 core segments, data centers and digital infrastructure, infrastructure utilities, medical and health care and industrial factories. Common themes across these customers include the need to meet exponential growth in demand, reduce emissions at competitive costs, secure locally deployable power and, in some cases, support the production of life-saving radioisotopes. With that foundation, I'll turn now to Kathy for financial updates. Kathy?

Thank you, Giordano, and good morning, everyone. As you know, we previously communicated an expected filing time line of April 15 following our extension period. While we've not made significant progress, we did not meet that date. To be clear, this is not a function of any underlying financial performance or operational issues, whether it reflects the complexity of our structure and the reporting requirements following the business combination. This business combination includes multi-jurisdictional considerations across Italy, the Netherlands, the United States and Cayman. We are currently working through the appropriate technical accounting treatment of certain noncash items with our auditors. We expect to file the 10-K in the near term, but I believe it is more appropriate to take the necessary time to ensure the filing correctly represents the impacts of the business combination and our progress during 2025. As is typical in these situations, we expect to receive a standard notification from NASDAQ related to the timing of our filing. This is a procedural matter, and we intend to address it in the normal course within the prescribed timeframe consistent with NASDAQ's standard process. Giordano and Alessandro have provided you information on the significant progress we are making across licensing, supply chain and commercial engagement. I would also like to share with you our cash balance in the bank as of December 31, 2025. This is shown on Slide 33. Total funds available $100 million plus. As we have communicated before, we estimate it will cost us $70 million to achieve our first of a kind. As we have secured our supply chain, we've been able to confirm that our estimates are aligned with or lower than the $70 million baseline. And of course, as mentioned, NRC is working on simplifying the regulatory process. The potential savings from these actions have not been factored into our $70 million estimate. So in conclusion, we are well positioned from a cash perspective to be fully covered up to commercialization of the SOLO reactor. Alessandro, I'll turn it over to you.

Thank you, Kathy. Now to close, moving to Slide 35, we want to step back for a moment. Innovation was built around a simple idea that the future of energy would require fundamental different approach, one that is distributed, scalable and aligned with the pace of modern infrastructure. Over the past several years, we moved from that idea to a completed design, a secure supply chain and advancing regulatory pathway and an expanding commercial pipeline. As we enter 2026, the focus shift from building the foundation to executing at scale. And from an investor perspective, the transition from the development to deployment is where value is created. We believe we are positioned at the front end of that shift. And lastly, on Slide 36, we encourage investors to follow our progress through our public U.S. NRC engagements, where we hold monthly meeting with the U.S. NRC. Even yesterday and today, we are having a meeting with U.S. NRC, our second last meeting held to submit application before entering the construction permit phase. You can access this meeting directly through our profile on the U.S. NRC website or by signing up to our mailing list. Additionally, we keep our stakeholders informed via our investor website and social channels. This channel will provide update on regulatory milestones, commercialization progress and key partnership as we advance towards [indiscernible] deployment. So I say that I really wish to thank you for listening. And operator, we are now ready to open the line for questions.

[Operator Instructions] Our first question comes from the line of Sameer Joshi with H.C. Wainwright.

Alessandro, thanks for having this call and for the update. You mentioned in closing remarks about your regulatory progress and how we can track it. Can you give us maybe quantitative or qualitative answer in terms of how many topical reports are still outstanding and to be submitted any other -- any white papers in the final stages, because I think the mid-June deadline or sort of deadline you can say is coming up. Just wanted to understand how that works?

Yes. Topical reports and white paper are tools that are used in order to anticipate topic and -- important topics and discussion with U.S. NRC. And those are used during the pre-submittal phase just to take the right time to prepare for the construction permit phase. See that we have submitted so far about 10 topical reports, similar number of white papers. You can find again on the website of U.S. NRC. We are today doing the second last meeting. The last meeting will be early May, where we had an additional one topical report and a couple of white papers. And then in June -- June, July, end of June, we will start with the construction permit phase. The work that we have done so far through the use of topical report and white paper will allow us to refer those topical reports and white paper while producing the construction permit. And construction permit will be released in the period between June, July and September.

Understood. And then just switching topics quickly. The Mersen announcement was earlier this week. Can you explain the significance of this graphite prototype and how it progresses your development?

That's very critical achievement because we have a lot of graphite in our reactor is one of the main components together with [ LEU ] fuel. And the ability of graphite was 2, 3 years ago when we started the project at one of our question concern. This was also cleaned with Mersen. There is enough graphite to sustain even our commercialization phase. But the other concern was not on the ability was on the manufacturability of the graphite adding several graphite in our reactor. Taking into consideration the design of our reactor, we need to do a lot of drillings in this graphite, a lot of holes and the number of holes, the precision of how those holes are publicated is fundamental in order to ensure the physical behavior of our reactors. So these achievements that was done just last week, but actually, we started in October, November last year. So immediately after the -- we become a public company is the fundamental because we know that what we define is achievable, is really achievable also from a manufacturing point of view. So the first piece -- the first 2 pieces actually have been built. The 2 pieces are demonstrated to be inside the expected tolerance limit of the manufacturability and of our design. So now it's question to pass from the 2 pieces. We have produced to the several times that we need for our reactors. But this will be a standardization of the work because also what it was important during the production of these first 2 pieces is to derive the procedure by which to operate the next manufacturing of those blocks of graphite. So now we have the procedure, and we know how to do that for all the blocks inside our reactor.

Alessandro, it's good to see the methodical approach of our derisking each and every step of the process.

Our next question comes from the line of George Gianarikas with Canaccord Genuity.

Appreciate the updates on the commercial traction. I'm wondering if you could talk about any additional traction you may be seeing with hard-to-abate sectors like mining and any competitive updates there? In other words, to the extent you're having conversations with some potential customers in those sectors, what are the alternative approaches that they may be exploring as well?

I will start, George, and maybe I will ask Giordano to complement. But mining is definitely one, as we discussed already several times, one of the sector that we look more. And today, in particular, if you come back to our presentation to the slide where we talk about the concept of SOLO nodes, today, even more than yesterday, we know that we are the perfect solution for the mining sector because we can basically scale up, reducing the number of reactors using single or few units of power conversion. So that solution I try to introduce for the first time today is really very important for industry like mining, but in general, for all industry that need a large amount of power and for which we can provide a solution which is higher efficient, less costly and with less also footprint. Giordano, do you have -- can you complement in terms of what we do in terms of mining?

Yes, absolutely. I think Alessandro's point is very important, especially when we're discussing 50 SOLO units that can deliver [ 20-megawatt electrics ] with the help of the power conversion units. Some of the conversations that we've been having with across the customers have been going deeper with this type of technical conversations, and we are structuring -- restructuring commitments to proceed to the next phases, we foresee them coming up in the near term. But we're looking at this really as a broad global deployment, right, whether it's in the U.S., whether it's outside of the U.S., thanks also to the nonproliferation and our ability to our technology to deploy it worldwide. But it's definitely an interesting sector. It is definitely something we're very committed to execute on, and we're pushing this as much as the data centers.

And maybe as a follow-up, here in the past, you've shared a slide talking about [ $19 million ] at a 1,000 units, excuse me, of revenue per reactor in a certain cost profile and margin profile. Now as you continue to work through your supply chain, particularly in light of the recent graphite announcements and especially with some of the shortages in helium that we're reading about, are you still committed to that revenue and margin profile? Have these agreements sort of reinforced that financial profile at [indiscernible]?

This is a very nice question that I'd like to take because today, in particular, when we down select from 130 suppliers to 30 suppliers, we have clear -- more clear visibility on the cost of our first of a kind and not only first of the kind, but also for the commercialization phase. When we select those 30 suppliers, we start with a real order. So now we know how much we are going to pay for the first of a kind. But together with that, we did another exercise with all our suppliers with all of these 30 suppliers. We did the exercise to ask them how much that cost can decrease going from the first of a kind to [ NOK ]. So today, better than 1 year ago, we know that our model to build the first of a kind is such that is real. The cost is -- was inside our evaluation. And we have strong confidence that what is also in the plan that was submitted is something that we can follow because this is what basically our discussion with the supplier is confirmed.

Our next question comes from the line of [ Subash Chandra ] with StoneX.

So the first question is the site characterization, has that been completed at Rock City?

No. What we have done so far is collecting all the information from Rock City in terms of metrology, geography, flooding, seismic, all this data has been collected. We are actively interacting with the owner of the site. We are advancing with the preparation of our environmental plan and this will be submitted in the next few months to [ NRC ] in parallel to the construction permit phase. We identify exactly the point inside the Rock City where the reactor will be located. And we also plan to start interaction with the municipality and the public -- the public people there in the next few weeks, months. But what is the important to your point -- sorry, what is important to your point that I mentioned is that all the data that are needed in order to prepare the environmental impact analysis are available. This is the leading -- the point where that takes more time. The analysis itself is not complicated. You need to do, but it's not complicated. What really requests a lot of time in the identification of the site is the collection of the data that you need for preparing the environmental impact analysis. And this data is available because the Rock Cities and industrial cities in the industrial site. So this means that they have already available those documents, and we received those documents from the owner of the site.

Yes. Are there any local permits required?

Well, yes, something is needed definitely at the level of local authorization. We are interacting and this will be part of this environmental plan.

Okay. Got it. We'll stay tuned. Follow-up is your -- so the commercial strategy is to sell the reactors. And can you sort of clarify it to sell the physical reactors to sell the IP? What are the sort of the revenue streams you're looking for in the final model?

So far, our main business model is to sell the reactor. In particular today, we also try to pass the message that there is what we call nuclear retail market. This means a large amount of micro small industry, industry that needed from 1 to 10, 20 megawatts, that may be struggling today with the cost of electricity worldwide. And for each, the SOLO solution might be very beneficial in terms of cost and in terms of reliability of operation. So our business model so far is forced on selling the reactor, but definitely, we have also started to discussion with potential offtakers where we have a different business model where we provide electricity without selling the reactor. This is something that obviously depends on offtakers, depending on the particular nature of the activity of the offtakers itself.

Okay. So you're open to sort of a PPA strategy?

Definitely, yes. yes. This is not a today business that we are pushing. But definitely, we are engaging in discussion where PPA is considered.

And my final one is that do we need any more regulation, so you're going to manufacture the reactor, load the reactor, then transport the reactor in that transport phase, how easy do you think that's going to be?

This was exactly the discussion we had yesterday night U.S. NRC. If you go to the website, you can see that one of the topic that was yesterday in the agenda was the manufacturability on site -- in factory and transportation. We are evolving very well from the Italian standpoint, we are in contact with the Italian regulator in order to get all the information on how to transport a fresh reactor vessel -- fresh nuclear reactor vessel where fresh means the fuel has not been used. And from a U.S. point of view, we are interacting with U.S. NRC in order to demonstrate that during the transportation and the rational side, our reactors still continue to be [indiscernible]. So this is to say that there is continuous discussion with U.S. NRC, there is a framework, a legal framework that exist. We are now trying to connect the dots and on those between the Italian regulator, the U.S. regulator, the Department of Transportation, which needs also to be involved. And all those parts have been already impacted, and we are also preparing a white paper on that, but this will have all most of the additional documents that we will submit to U.S. NRC. And this is not even connected with the construction permit itself. It's going more in the direction of the operating license. So we are talking even after September 2026.

Our next question comes from the line of Craig Irwin with ROTH Capital Partners.

So Alessandro, I was particularly interested in the discussion around the SOLO node, the fact that you haven't got the first of a kind yet. But right now, today, you're announcing basically a 20% lower CapEx or what I would assume is essentially a lower LCOE for 20-megawatt bites. And we get a lot of questions all the time about the long-term cost out profile, the ability to engineer lower costs for nuclear for the next couple of decades. Can you maybe give us a little bit more color on the portfolio of options you have to achieve similar cost out? A lot of people like to make comparisons back to the SOLO industry, where it's been basically 10% a year for the last many, many years. Do you see it as possible for the nuclear industry for Terra to have something similar as production ramps and deployments go global?

I'm thinking that we can do better. In that presentation today, we didn't anticipate any reduction in the quantity, any reduction of cost. We were just saying that our $0.07 per kilowatt hour over 5 years is the cost related with the unique SOLO reactor with its own sub-plant. This means the reactor that is coming with the same generator, they have to buy their clear content. This was -- the idea to move to the concept of SOLO node was already part of our design. We just decided to announce today because we are moving quite fast in cooperation with one of the major worldwide buying manufacturing the work. So we had already meetings where we identified the possibility to develop this concept of SOLO node. And in SOLO node, this means we meant that we can have several reactors, nuclear reactors that are coupled with only on power conversion unit. And this is important because, obviously, it's going to decrease the complexity in the number of components, reducing the cost, even though this has not yet been identified and increase the efficiency. So the numbers that we see is there is 16 reactors. This means basically a reduction of 20% in terms of number of reactors. We can get 20 megawatts electric. The other point in the comparison about SOLO staying the other in the second slide that I mentioned today, the capability to do load follow. This is quite unique for the nuclear reactor. This is possible only because we are small, and this is possible because of the granulometry we can achieve with our solution. We can have several units to get 100 basically unique using the concept of SOLO node, maybe you may need 80. If you don't use maybe you need 100 reactors. But depending on that, the cons is that this granulometry give you the possibility to do not follow through the -- a different dispatch of electricity to the customer. So we are not changing the primary side and the reactor itself. The reactor continue to operate 100% power. The fuel stay well quite inside our reactor. But what we dispatch differently is the power. Why this is important? Because in this way, and I can come to point and the comparison with the SOLO, in this regard, our capability to follow the load is connected with the need to couple with SOLO at relatively smaller batteries, batteries that are at the least, we evaluate 10x smaller than what is needed for SOLO application. So the SOLO node concept and the capability to do a variable dispatch coupled with a very small amount of batteries give us a lot of confidence that SOLO can really be positioned for compete against whatever type of source of energy. And again, we mentioned -- we say that our price is such that we have $0.07 per kilowatt hour. And definitely, whenever you put together the SOLO node and this concept of long follow there might be additional savings.

Understood. That makes a lot of sense. My follow-up question is around NRC's Part 57, right? With the public comment this spring, and the expected formalized rule later on this year, do you see the Part 57 language as potentially having an impact on overall development costs or timeline for development of your system? I know that the safety requirements and engineering requirements are not necessarily going to change, but you use an already existing supply chain where many of these components and features have been qualified already. Is there a possibility that you have maybe an expedited review of different subcomponents and system features?

This is a very important question. And Part 57 will be alluded on, I think, 24th of April, so in a few days. What we have already discussed part of it with U.S. NRC, obviously, we don't have access to the full document, but we may know some of the aspects. And what I can say is that it looks like Part 57 was big for SOLO. But actually, I would say that SOLO fits very well with this approach now that the U.S. NRC is taking and considering for macro reactors. I can mention to you 3 topics for which we think we can get the benefit from Part 57 for the commercialization. And this to say also that Part 57 will not affect the first of it kind. For first of it kind, we will continue to follow Part 50. So Part 57 is for the commercialization. And why is it important? Several aspects, but I would list 3. No need for operators so far with Part 50, you need at least 5 operators on site. Multiunit license is very important, in particular from macro reactors that tend to be commercial only if there are more units, obviously. And Part 50 actually you have to do the licensing every time. Part 57 this concept of multiunit licensing. And last, but maybe the most important, Part 57 represent a sort of accelerate of Part 50. In particular, in the case, you licensed the reactor under Part 50, which is identical to the one that you would like to do in Part 57, which is commercial. And this is exactly our case. We are licensing reactor, the first of a kind in Part 50, which is identical to the one that we will do commercial following Part 57. And this will provide based on our understanding with U.S. NRC, a lot of simplification in the process and so a faster time to license the commercial units.

Our next question comes from the line of Ryan Pfingst with B. Riley Securities.

I'll just ask one on the commercial side. Can you discuss potential customer order conversion? Do you think customers will wait for the FOAK to deploy before placing a firm order or could we see those actually come ahead of first deployment?

I'll start and then I will leave to Giordano. We are doing our best interacts daily with all possible customers. We had a nice discussion I can mention a couple of weeks ago, for instance, with a company that was present in several European airports also the energy demand is fundamental and is going to increase in the next years. We are doing the simple money. We are doing the same for industry, which are smaller, but they need still a lot of power, if you put all together, like the segments like the [ blast ] industry. So we are doing our best in addition to obviously more -- more today important industry like the data center. We are putting all our efforts to transform close discussion in orders. Obviously, we needed to provide the potential customer, the validation of our technology. And what we think is that -- what we are doing now with the regulators. What we are doing now with the supply chain is something that is very, very important. The supply chain the fact that we build this [indiscernible] on graphite give also a sense of agility of the projects. So it's not a paper work. It's really a project. So what I'm saying is that I'm expecting that in the next few months, when additional outcome in terms of advancing the supply chain will be available, and we can announce. This will give also a lot of confidence to our potential offtakers to transform the interest in real order.

What I can add maybe in terms of basis exactly -- I mean what is said is exactly important, and we're taking the approach on commercialization very even if being a methodological way. So when we're considering the offtake agreements, the one that we have, the one that we're exploring, we're getting to the doing really right. We're looking for how do we deploy it the merger of the technologies, how they work. So we're going on hand to discuss the technicalities first and the business operation coming from technicalities. But the most important thing is as we're developing first of a kind, the supply chain is there, we just produced Mersen prototype, the world is realizing a little and steady that as we're doing the licensing and we're executing on the manufacturing, we're shifting to the commercialization, and we're planning to have this order book in the next few months because that will really ramp up the end of the kind. But the conversation has been positive and that they continues, and there's been a lot of back-end work that is not announceable yet, but it's been present, and it takes many hours over weeks to do these technicalities and establish the commercialization strategy for potentially even higher deployments of what we discussed today.

Ladies and gentlemen, that concludes our question-and-answer session. I'll turn the floor back to Mr. Petruzzi for any final comments.

Okay. I would like really to thank you, everybody for attending this call. We would like to keep informed all our investments, all our offtakers. So we encourage again you to follow us on our social and in particular to follow the updates that are regularly occurring on the website of U.S. NRC, which I think is the most tangible demonstration of where we are going. So thank you again to stay with us and look forward to meet you soon again.

Thank you. This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.