Marc Bianchi: I was just going to ask one for Ramsey on cash. The queue has a $33 million cash use and you talked about in the slides here of the $50 million to $60 million of annualized savings that’ll happen in the second quarter. that’s like $13 million a quarter of savings. Should the implication then be that, like, the cash use in second quarter and beyond should be in that ballpark of $20,000,000?
Ramsey Hamady: Mark, when we announced our cost savings plan in January, we did mention a savings of $50 million to $60 million on an annualized basis. Our cash from operations for this quarter was about negative $33.5 million. I anticipate that our cash burn on ongoing basis will be sub $10 million. We took a number of one-time charges during the first quarter. I think you’re about in the ballpark if you’re thinking 20% or low 20% as a quarterly cash burn rate just based on where we stand today.
Marc Bianchi: And to confirm that, that doesn’t contemplate any further ATM sales. I know you could do those, but the numbers we’re talking about here, that’s before any benefit from ATM.
John Hopkins: I’m talking about cash flow for operations. So, yes. Absolutely.
Operator: Your next question comes from the line of Ryan Pfingstwith B. Riley. Please go ahead.
Ryan Pfingst: Good evening, guys. Understanding that the timing for RoPower is out of your control, can you just remind us what the final steps are there to finalize terms for the Phase 2 FEED work?
John Hopkins: Yes, Ryan. In fact, we had an update this morning with our RoPower client. As I commented, I was with the President of Romania two weeks ago in Romania when he toured the Doosan facility. We completed working with Flour Corporation to FEED Phase 1. We’re now entering into the LNTP or the limited notice to proceed FEED Phase 2, where NuScale is a subcontractor to Flour Corporation. Their vote was to have it occurred in April 17th with the shareholders of RoPower. However, for whatever reason, we don’t know. All we were told, it has nothing to do with NuScale Technology or the contractors. It’s politically driven in a year of elections that they postponed the date, the shareholders voted to June, July. We were told as of this morning that that’s still progressing.
It’s not a financial issue. All we know is that the vote has been abstained or delayed until June, July time frame. That’s the extent of what they’ve told us. To proceed phase, as I said, we’re a subcontractor to the Flour. The duration of that is about a one-year duration before they move into the final notice to proceed. Does that help?
Ryan Pfingst: Got it. Thanks, John. And then, just one more. Wondering if you had any update on the two SMR appropriations programs that, we spoke about a little bit on the last call.
John Hopkins: Still, we’re waiting for the request to come out. The initial, there’s for $800 million, in our discussions with government. That award will probably be go on to the next administration, but then there’s another award for $100 million that we’re waiting on manufacturing and supply chain of normally about $100 million in what we were told the turnaround from that on that time on that contract is 90 days. We are still waiting and hopefully it’ll come to — at least that $100 million we’ll know here pretty soon. That’s what we we’re told. It is an election year, mind you.
Ryan Pfingst: Understood. I appreciate that color. I’ll turn it back. Thanks.
Operator: We have reached the allotted time for questions. I will now turn the call over to NuScale’s CEO, John Hopkins, for closing remarks.
John Hopkins: Yes. Thank you, operator. As we stated before, NuScale is the only SMR design certified by the U.S. Nuclear Regulatory Commission. We, along with our strategic partner, Inter One, have built, we believe, a very robust business development pipeline. NuScale has industry-leading manufacturing readiness and is well-positioned to commercialize and deliver clean energy at scale. Nuclear technology is essential to powering the global energy transition and we believe we are at the forefront of that effort with our work to deliver safe, scalable and reliable carbon-free nuclear power. I believe we’re off to a good start in 2024 with progress in all fronts. I look forward to what we will accomplish together throughout the remainder of the year. I’d like to thank everybody for their interest in NuScale and for participating on the call today. Operator?
Operator: Thank you. This concludes today’s conference call. You may now disconnect.
