Nano Nuclear Energy Inc (NNE) Earnings

Management highlights

- Technology and Design Maturity * The Kronos microreactor is built on mature high temperature gas cooled reactor technology, using proven tri-structural isotropic fuel (trisulfil) qualified under the U.S. DOE's AGR program * The NRC has formally accepted NanoNuclear's construction permit application for the first full-scale Kronos unit at the University of Illinois Urbana-Champaign (UIUC), making the company the first commercial microreactor developer to reach this stage * Kronos is designed to use commercially available low-enriched uranium (LEU) today, with full flexibility to switch to high-assay low-enriched uranium (HALU) in the future without redesign - Regulatory Progress * Formal NRC review is underway, with the NRC projecting completion of its environmental assessment in Q1 2027 and safety evaluation in Q3 2027, aligned with management's expectation of completing review in 2027 * Initial construction is targeted to begin in H2 2027, following NRC approval - Commercial Pipeline Expansion * Completed a feasibility study for a potential 1 GW multi-unit deployment with Bon Rupon, and is advancing discussions toward initiating the NRC licensing process for this project * In late-stage discussions to finalize an initial framework with a global infrastructure developer for a multi-gigawatt pipeline of AI data center projects, which would name NanoNuclear as the preferred reactor technology provider, with potential milestone-based investments from the partner tied to commercial progress * Signed an MOU with Supermicro to evaluate integration of Kronos with Supermicro's AI data center infrastructure for potential joint go-to-market opportunities * Selected for an SBIR Phase I award from the U.S. Department of the Air Force AFWERX program to advance Kronos for defense use, and continues progressing on a previously awarded SBIR Phase II project for Joint Base Anacostia-Bolling - Vertical Integration Strategy * Completed the acquisition of Secure Transportation Services (STS), a profitable 20-year-old global nuclear logistics and transportation company that serves commercial customers, the DOE, and NNSA, in May 2026 * STS has already supported high-profile government missions including the transport of HALU from Japan to the U.S. and removal of highly enriched uranium from Venezuela, and provides in-house capability to de-risk fuel cycle logistics for Kronos deployments * Actively evaluating additional complementary acquisition and partnership opportunities across the nuclear fuel cycle, including front-end fuel conversion, deconversion, and fuel facility assets, with potential announcements expected in the coming months - Financial Position * Ended Q3 2026 with $580 million in total liquidity, raised $26 million in net proceeds via the company's at-the-market offering facility during the quarter * Q3 2026 operating expenses totaled $15.9 million, with a net loss of $10.1 million (compared to $7.6 million net loss in Q3 2025), as higher R&D and G&A expenses for development and licensing are partially offset by higher interest income from the larger liquidity position * Headcount grew to 85 employees and contractors as of Q3 end 2026, up from 31 one year prior, with a focus on hiring experienced technical and regulatory staff from the DOE, NRC, national labs, and existing nuclear industry

Guidance

- Management maintains its prior guidance for NRC construction permit review completion in 2027, with initial construction of the UIUC prototype starting in H2 2027, and first power from the unit expected around 2030 - No material changes to long-term commercialization guidance; the company continues to target scaled commercial deployments starting in the early 2030s - Management expects significant additional headcount growth over the next 1-2 years to support engineering, licensing, and project development activities, growing at a similar pace to the past year - Additional acquisition announcements are expected in the coming months, subject to due diligence and closing conditions

Segment performance

NanoNuclear currently operates two primary business segments: 1) Advanced reactor development (Kronos microreactors): This is a pre-revenue development stage segment, with all related costs reflected in overall company operating expenses. 2) Nuclear fuel logistics and transportation (STS, acquired in May 2026): STS generated $3.9 million in unaudited revenue for the first six months of 2026, with $200,000 of that revenue contributed after the acquisition closed (May 22 to June 30, 2026). STS is already profitable and represents 100% of the company's current operating revenue, contributing a small base of recurring profit to the overall business.

Risks & headwinds

- All forward-looking statements are subject to material risks, including delays or failure of NRC licensing review, unexpected technical issues with first-of-a-kind reactor development, supply chain and fuel fabrication constraints, and changes to government policy or funding that could impact commercialization timelines - The advanced nuclear industry faces broad systemic risk of constrained fuel supply chain capacity as deployments scale, which could delay projects if vertical integration efforts do not succeed - Commercial partnerships and acquisition opportunities may not be finalized on favorable terms, or at all, and may not deliver the expected strategic or financial benefits - Delays in the UIUC prototype project could reduce credibility with potential customers and slow commercial pipeline development

Analyst Q&A

• Q: Are any long-lead reactor components needed to be ordered now to meet the H2 2027 construction start target? /

  A: Initial construction will focus on non-nuclear site work, including excavation, concrete structures, and steel installation for the reactor containment, which does not require reactor-related components to be ordered upfront. Non-nuclear balance of plant components (turbines, thermal energy storage salt) are standard off-the-shelf items and can be constructed immediately without waiting for NRC approval. Management has already begun vendor negotiations for reactor components and expects to have all suppliers and pricing lined up by the time NRC approval is received in 2027.

• Q: What is the company's approach to M&A budget and size? Will large acquisitions be pursued? /

  A: NanoNuclear focuses on small, strategic acquisitions that bring critical in-house fuel cycle capabilities to support reactor deployment, rather than large, expensive acquisitions. For reference, the upfront purchase price for STS was only ~$7 million, with future performance-based retention payments. Any larger opportunities, such as the potential fuel facility investment being evaluated, would have phased capital outlays over multiple years, and the company is actively pursuing non-dilutive government funding to offset costs. All acquisitions are opportunistic and focused on strategic value rather than hitting a set budget.

• Q: What is the structure and benefit of the planned framework with the multi-gigawatt data center strategic partner? /

  A: The partner is a global infrastructure development firm with experience building and financing large-scale data center projects. The framework would name NanoNuclear as the preferred technology provider, with the partner providing project development, land, and financing, while NanoNuclear provides reactors, licensing, and operational expertise. Unlike traditional non-binding power purchase agreements, the deal structure includes milestone-based investments from the partner into NanoNuclear, with potential mutual equity stakes in the project companies, aligning incentives and de-risking the relationship for both parties. The multi-gigawatt pipeline would significantly accelerate NanoNuclear's commercialization.

• Q: What is the update on fuel supply chain for enrichment and tri-structural fuel fabrication? /

  A: NanoNuclear has a key advantage over competitors because it can use commercially available LEU, and has already held positive discussions with existing major enrichment providers like Urenco, who have existing capacity to supply fuel for mass deployment. When HALU becomes commercially available, Kronos can switch to it without any redesign. For fuel fabrication, capacity already exists to supply the first-of-a-kind UIUC unit, and NanoNuclear is in talks with all major emerging tri-structural fabricators to lock in long-term supply contracts for scaled deployment. The company may pursue joint ventures for domestic fuel component manufacturing long-term to de-risk mass production.