Company: NPWR-WT
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001845437-25-000027
Chunk: 36

Company: NET Power Inc.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 2
Chunk 36
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 R&D, including the BHES JDA, and general and administrative activities. This change was primarily due to higher R&D costs, including costs incurred under the BHES JDA, as we commenced the testing campaign at our Demonstration Plant during the fourth quarter of 2024, project development costs and the build out of the Company during 2024. We expect our cash used in operating activities to increase significantly before we start to generate any material cash inflows from our operations as costs related to Project Permian are being expensed pending the results of the value engineering process initiated during the three months ended March 31, 2025.

Investing Activities

During the three months ended March 31, 2025, net cash used in investing activities decreased $96.9 million as compared to the same period in 2024. Our cash used in investing activities for the three months ended March 31, 2024 primarily reflects the initial investments in available-for-sale securities during that period.

Financing Activities

Our cash provided by financing activities was generally consistent for the three months ended March 31, 2025, as compared to the same period in 2024.

Commitments and Contractual Obligations 

Asset Retirement Obligation

We hold a lease for approximately 218,900 square feet of land under the Demonstration Plant. In addition, we have an oxygen supply agreement with the lessor to supply oxygen to the Demonstration Plant. The lease expires on the earlier of (i) January 1, 2031 and (ii) the termination of our oxygen supply agreement with the lessor. The term of the oxygen supply agreement expires on January 1, 2030 with automatic 12-month renewal terms. The oxygen supply agreement may be terminated by us or by the lessor upon 24 months’ written notice prior to the expiration date of its current term. The underlying lease requires the removal of all equipment and the obligation to restore the land to post-clearing grade level, which has resulted in the recognition of an asset retirement obligation liability of $3.3 million and $3.3 million as of March 31, 2025 and December 31, 2024, respectively.

Leases

As of March 31, 2025, future minimum lease payments attributable to the Company’s operating and finance lease arrangements are approximately $3.0 million and $0.3 million, respectively.

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Table of Contents

On March 7, 2025, the Company entered into a