Powering Progress: AI Secures Nuclear Future Amidst Market Headwinds

ATLANTA, GA – November 12, 2025 – The global energy transition is not just about renewable sources; it's also about ensuring the security and operational integrity of existing and evolving energy infrastructure, particularly the nuclear sector. ScanTech AI Systems Inc. (Nasdaq: STAI), a developer of advanced AI-powered security screening and imaging systems, is making a strategic push into this high-stakes market, recently highlighting its momentum at the World Nuclear Exhibition (WNE) in Paris. While the company's technological advancements and market engagements signal significant opportunity, a closer look at its financial standing reveals the complex realities of scaling innovation in a capital-intensive industry.

Securing the Core: AI's Role in Nuclear Safety

At the heart of ScanTech AI's strategy is its proprietary SENTINEL® CT platform, a fixed-gantry CT screening technology that leverages artificial intelligence and machine learning to detect hazardous materials and contraband with precision. This technology is a critical asset in environments where security failures carry catastrophic consequences. The civil nuclear industry, encompassing energy generation, fuel cycles, and even non-electric applications, demands solutions that meet the highest standards for operational safety and performance.

ScanTech AI's participation at WNE 2025 generated strong engagement from global decision-makers, including representatives from Électricité de France (EDF), the U.S. Department of Commerce, and the Saudi Water Authority. These interactions underscore the growing international interest in advanced security protocols for nuclear facilities. DeMeakey Williams, Senior Vice President of Sales, Business Development & Investor Relations at ScanTech AI, emphasized, “Our participation in WNE 2025 marked a pivotal milestone in ScanTech AI’s commercial strategy. I believe level of interest and engagement from international operators, regulators, and integrators validates the growing demand for our AI-based inspection and imaging solutions.”

Further validating its technology, ScanTech AI is nearing completion of a significant project with one of North America’s largest nuclear energy producers, Ontario Power Generation (OPG). This multi-million dollar contract involved deploying fixed-gantry CT security scanners at multiple OPG nuclear power facilities, replacing legacy X-ray systems. This successful integration within a stringent nuclear environment demonstrates the platform's capability and reliability, positioning the company as a credible provider in a market where trust and proven performance are paramount.

Navigating a High-Stakes Market

The market for security screening and critical infrastructure protection is experiencing robust growth, driven by escalating global security concerns and the imperative for enhanced threat detection. The global security screening market is projected to reach USD 13.80 billion by 2030, with CT scanners, in particular, seeing an 8.0% compound annual growth rate due to their high-resolution 3D imaging and AI integration. This fertile ground offers significant opportunities for companies like ScanTech AI.

However, entering and scaling in such a specialized sector comes with its own set of challenges. The nuclear security market demands not only cutting-edge technology but also adherence to stringent regulatory approvals and significant capital investment. While ScanTech AI positions its SENTINEL® CT platform as a key player in this specialized area, it faces competition from established security screening giants like Smiths Detection and Rapiscan Systems, who also offer CT technology for critical infrastructure, albeit perhaps not with the same niche focus on fixed-gantry AI for nuclear facilities.

The company's strategy appears to involve leveraging its successful deployments and high-profile engagements, such as WNE, to build credibility and foster relationships that can accelerate its expansion. The strong response from international operators and regulators suggests that the demand for advanced, AI-powered inspection solutions is indeed on the rise, creating a pathway for new entrants with validated technology.

The Financial Realities of Innovation

Despite the promising technological advancements and market opportunities, ScanTech AI faces substantial financial hurdles that could impact its ambitious growth trajectory. For the trailing 12 months ending June 30, 2025, the company reported a net loss of -$22.73 million, with a net loss of -$23.81 million for the first half of 2025 on revenues of just $1.23 million. Its cash balance as of June 30, 2025, was exceptionally low at $41,123, alongside a significant working capital deficit of nearly $24.4 million and an accumulated deficit exceeding $208.3 million.

These figures raise substantial doubt about the company's ability to continue operations for at least another year. ScanTech AI also carries total debt of $23.3 million and negative shareholder equity, leading to a negative debt-to-equity ratio. Compounding these challenges, the company has received default-related notices from creditors for covenant violations under a senior secured note, incurring default interest. Recently, it announced a decision to restate financial statements for the first and second quarters of 2025 due to accounting errors, further highlighting internal control issues.

On the stock market, STAI has experienced a