Company: NPWR-WT
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001845437-25-000027
Chunk: 21

Company: NET Power Inc.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 1
Chunk 21
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 at its Demonstration Plant. Additionally, Net Power began purchasing initial long-lead materials for its first utility-scale power plant (“SN1”) in 2024 with the intention of locating SN1 in the Permian Basin of West Texas (“Project Permian”). However, after completing the front-end engineering and design (“FEED”) process in December 2024, the initial cost estimates were higher than originally anticipated. In response, during the first quarter of 2025, Net Power commenced a post-FEED optimization and value engineering process. In March 2025, the Company suspended further long-lead equipment releases but value engineering and certain development work remains in progress. Provided we are successful in our value engineering process, the project would come online no earlier than 2029. We are focused on delivering a project that will catalyze future adoption for utility-scale customers.

In addition to the value engineering process discussed above, major remaining development activities relating to completing construction of SN1 are similar to the activities we previously undertook to design, build, and commission the Demonstration Plant. These activities include: finalizing all permitting, supply and off-take contracts, obtaining the financing required to achieve a final investment decision, and constructing and commissioning the facility.

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Table of Contents

Key Components of Results of Operations

We are a development stage company and our historical results may not be indicative of our future results. Accordingly, the drivers of our future financial results, as well as the components of such results, may not be comparable to our historical or future results of operations.

Results of Operations

Comparison of the Three Months Ended March 31, 2025 to the Three Months Ended March 31, 2024

The following table sets forth our condensed results of operations data for the periods presented:

Three Months Ended March 31,$ Change% Change$ in thousands20252024Revenue$— $— $— n/aCost of revenue— — — n/aGross profit— — Operating expensesGeneral and administrative8,691 6,409 2,282 36 %Sales and marketing1,187 751 436 58 %Research and development22,600 11,242 11,358 101 %Project development4,490 324 4,166 1286 %Goodwill impairment and other charges415,897 — 415,897 n/aDepreciation, amortization, and accretion21,688 20,