Company: NPWR-WT
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001845437-25-000061
Chunk: 7

Company: NET Power Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 2
Chunk 7
---
 sales and marketing activities, which include general publicity efforts for the Company. Sales and marketing expenses increased by $1.4 million, or 53%, for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024. This increase was primarily attributable to higher employee headcount as well as severance costs and related accelerated stock-based compensation, partially offset by lower professional fees.

Research and development

R&D expenses consist primarily of labor expenses and fees paid to third parties working on and testing specific aspects of our technology, including testing at our Demonstration Plant and development activities under the BHES JDA. R&D expenses increased by $29.7 million, or 67%, for the nine months ended September 30, 2025, as compared to amounts for the nine months ended September 30, 2024. This increase was primarily due to the timing of development activities under the BHES JDA and the validation testing campaigns at the Demonstration Plant that began in the fourth quarter of 2024. The Company also incurred higher engineering consulting fees and expanded its engineering headcount to support technology development efforts. Additionally, R&D expenses for the nine months ended September 30, 2025 included $4.9 million for the BHES JDA Make-Whole Payments; there was no such expense made during the same period in 2024.

Project development

Project development expenses consist of labor expenses and fees paid to third parties developing commercial scale projects. Project development expenses increased by $40.3 million, or 2,826%, for the nine months ended September 30, 2025, as compared the nine months ended September 30, 2024. Beginning in March 2025, the Company began expensing costs associated with Project Permian as the Company suspended further long lead equipment releases for the project while it performs a value engineering process to evaluate the feasibility of the project. These costs were capitalized during the nine months ended September 30, 2024. For the nine months ended September 30, 2025, the Company incurred $21.0 million of costs related to Project Permian and $19.5 million under a Letter of Limited Notice to Proceed for the Purchase of KPEP Long Lead Time Items with BHES, as amended related to certain milestones.

Impairment and other charges

During the first quarter of 2025, the Company assessed its goodwill for impairment due to a change in the Company’s business plan and related sustained