Net Power Inc 10-Q for FY2025 Q2

Net Power Inc. (NPWR)

10-Q 2025-08-11 For: 2025-06-30

Added on April 06, 2026

About this 10-Q

Net Power Inc filed this 10-Q on August 11, 2025, covering the quarter ended June 30, 2025 (FY2025 Q2).

Headline figures

Quarter ended June 30, 2025, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $0; compared with $238K a year earlier
Net loss: $28.14M; compared with a net loss of $4.27M a year earlier
Diluted EPS: -$0.36; compared with -$0.06 a year earlier

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Delaware			98-1580612
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)
320 Roney St. Suite 200 Durham, North Carolina			27701
(Address of Principal Executive Offices)			(Zip Code)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common Stock	NPWR	The New York Stock Exchange
Warrants, each exercisable for one share of Class A Common Stock at a price of $11.50	NPWR-WT	The New York Stock Exchange


Large accelerated filer	o	Accelerated filer	o
Non-accelerated filer	x	Smaller reporting company	x
		Emerging growth company	x


		Page
	Certain Defined Terms	1
	Cautionary Note Regarding Forward-Looking Statements	2

PART I.	FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)	3
	Condensed Consolidated Balance Sheets	3
	Condensed Consolidated Statements of Operations and Comprehensive Loss	5
	Condensed Consolidated Statements of Mezzanine Shareholders' Equity and Shareholders' Equity	6
	Condensed Consolidated Statements of Cash Flows	8
	Notes to Condensed Consolidated Financial Statements	10
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	25
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	33
Item 4.	Controls and Procedures	34

PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings	35
Item 1A.	Risk Factors	35
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	35
Item 3.	Defaults Upon Senior Securities	35
Item 4.	Mine Safety Disclosures	36
Item 5.	Other Information	36
Item 6.	Exhibits	36
Signatures		37


	June 30,		December 31,
	2025		2024
ASSETS
Current assets
Cash and cash equivalents	$	284,024	$	329,230
Short-term investments	—		100,000
Investments in securities, available-for-sale	119,374		78,344

Interest receivable	1,728		3,682
Prepaid expenses and other current assets	3,380		1,774
Total current assets	408,506		513,030
Long-term assets
Restricted cash	2,470		2,446
Investments in securities, available-for-sale	68,913		22,628
Intangible assets, net	1,208,295		1,241,343
Goodwill	—		359,847
Property, plant, and equipment, net	96,595		151,470
Operating lease right-of-use assets	4,028		2,699
Other long-term assets	667		652
Total assets	$	1,789,474	$	2,294,115

LIABILITIES, MEZZANINE SHAREHOLDERS' EQUITY, AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable	$	1,045	$	3,092
Accrued liabilities	10,090		7,407
Due to related parties	29,459		6,537
Operating lease liabilities, current portion	1,025		683
Finance lease liabilities, current portion	187		187
Earnout Shares liability	21		—
Total current liabilities	41,827		17,906

Earnout Shares liability	—		1,958
Warrant liability	7,641		81,283
Asset retirement obligation	3,427		3,265
Non-current operating lease liabilities	2,993		2,125
Non-current finance lease liabilities	28		110
Tax Receivable Agreement liability	—		20,974
Deferred taxes	3,079		4,306
Total liabilities	58,995		131,927

Commitments and contingencies (Note 14)


x			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


o			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Revenue	$	—	$	238	$	—	$	238
Cost of revenue	—		30		—		30

Gross profit	—		208		—		208

Operating expenses
General and administrative	13,578		7,787		22,270		14,097
Sales and marketing	1,492		876		2,679		1,628
Research and development	26,618		15,483		49,218		26,751
Project development	27,198		869		31,687		1,291
Goodwill impairment and other charges	—		—		415,897		—
Depreciation, amortization, and accretion	21,669		20,047		43,356		40,079
Total operating expenses	90,555		45,062		565,107		83,846

Operating loss	(90,555)		(44,854)		(565,107)		(83,638)

Other income
Interest income	5,466		9,029		11,345		16,719
Change in Earnout Shares liability and Warrant liability	1,415		16,249		75,580		1,671
Change in Tax Receivable Agreement liability	—		—		21,317		—
Other income	5		6		6		8
Net other income	6,886		25,284		108,248		18,398

Net loss before income tax	(83,669)		(19,570)		(456,859)		(65,240)
Income tax benefit	1,622		2,353		1,226		6,391
Net loss after income tax	(82,047)		(17,217)		(455,633)		(58,849)
Net loss attributable to non-controlling interests	(53,905)		(12,949)		(308,141)		(43,160)
Net loss attributable to NET Power Inc.	$	(28,142)	$	(4,268)	$	(147,492)	$	(15,689)

Other comprehensive income
Unrealized gain (loss) on investments	66		(860)		82		(198)

Total other comprehensive income (loss)	66		(860)		82		(198)

Comprehensive loss	(81,981)		(18,077)		(455,551)		(59,047)
Comprehensive loss attributable to non-controlling interests	(53,862)		(13,518)		(308,141)		(43,291)
Comprehensive loss attributable to NET Power Inc.	$	(28,119)	$	(4,559)	$	(147,410)	$	(15,756)

Loss per share of Class A Common Stock, basic and diluted	$	(0.36)	$	(0.06)	$	(1.91)	$	(0.22)

Weighted average shares of Class A Common Stock, basic and diluted	77,699		72,177		77,350		72,036


	Class A Common Stock			Class B Common Stock			Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)		Accumulated Deficit		Total Shareholders' Equity		Non-controlling Interests - Mezzanine Equity
	Shares	Amount		Shares	Amount
Balance at December 31, 2024	76,760	$	8	139,691	$	14	$	771,594	$	32	$	(116,044)	$	655,604	$	1,506,584
Redemption of Class B Common Stock	300	—		(300)	—		1,489		—		—		1,489		(1,489)
Issuance of Class A Common Stock	3	—		—	—		41		—		—		41		(14)


Increase in Tax Receivable Agreement liability from qualifying exchanges	—	—		—	—		(343)		—		—		(343)		—
Unrealized gain on investments	—	—		—	—		—		6		—		6		10
Amortization of share-based payments	—	—		1,175	—		1,172		—		—		1,172		9,053
Adjustment of redeemable non-controlling interest to book value	—	—		—	—		98,592		—		—		98,592		(98,592)

Net loss	—	—		—	—		—		—		(119,350)		(119,350)		(254,236)
Balance at March 31, 2025	77,063	$	8	140,566	$	14	$	872,545	$	38	$	(235,394)	$	637,211	$	1,161,316
Redemption of Class B Common Stock	473	—		(474)	—		2,148		—		—		2,148		(2,148)
Issuance of Class A Common Stock	343	—		—	—		1,553		—		—		1,553		(1,559)



Unrealized gain on investments	—	—		—	—		—		23		—		23		43
Amortization of share-based payments	—	—		1,248	—		3,407		—		—		3,407		10,532

Net loss	—	—		—	—		—		—		(28,142)		(28,142)		(53,905)
Balance at June 30, 2025	77,879	$	8	141,340	$	14	$	879,653	$	61	$	(263,536)	$	616,200	$	1,114,279


$ in thousands	June 30, 2025
Current assets	Amortized Cost		Unrealized Gain (Loss)		Fair Value
Corporate bonds	$	18,462	$	(1)	$	18,461
Commercial paper	28,153		—		28,153
U.S. treasuries	72,698		61		72,760
Total	$	119,313	$	60	$	119,374

Long-term assets	Amortized Cost		Unrealized Gain		Fair Value
Corporate bonds	$	31,772	$	64	$	31,836

U.S. treasuries	36,958		119		37,077
Total	$	68,730	$	183	$	68,913


$ in thousands	December 31, 2024
Current assets	Amortized Cost		Unrealized Gain		Fair Value
Corporate bonds	$	11,006	$	15	$	11,021
Commercial paper	8,629		—		8,629
U.S. treasuries	58,637		57		58,694
Total	$	78,272	$	72	$	78,344

Long-term assets	Amortized Cost		Unrealized Gain		Fair Value


U.S. treasuries	$	22,538	$	90	$	22,628
Total	$	22,538	$	90	$	22,628


	June 30, 2025		December 31, 2024
Term (in years)	2.94		3.44
Volatility	79.0	%	59.3	%
Risk-free rate	3.6	%	4.2	%


Remaining 2025	$	33,857
2026	67,715
2027	67,715
2028	67,715
2029	67,542
2030 and thereafter	903,751
Total	$	1,208,295


Weighted average expected life	3 years
Risk-free interest rates	3.9	%
Expected volatility	80.0	%


In thousands, except per share data	Quantity	Weighted-Average Grant Date Fair Value Per Share

Unvested, beginning of period	128	$	16.24
Granted	524	2.89
Forfeited	(330)	5.03

Unvested, end of period	322	$	6.00


	Six Months Ended June 30,
	2025		2024






















Supplemental non-cash investing and financing activities:

Change in accruals for capital expenditures	$	(1,612)	$	120

Operating lease right-of use asset acquired	1,591		—




Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheet:
Cash and cash equivalents	$	284,024	$	405,145
Restricted cash	2,470		2,415
Total cash, cash equivalents, and restricted cash	$	286,494	$	407,560


		June 30,		December 31,
$ in thousands	Level	2025		2024
Assets
Available-for-sale investments	1	$	188,287	$	100,972
Short-term investments	2	—		100,000
Total assets		$	188,287	$	200,972

Liabilities
Public Warrants	1	$	2,845	$	31,034
Private Placement Warrants	3	4,796		50,249
Earnout Shares	3	21		1,958

Total liabilities		$	7,662	$	83,241


	June 30,		December 31,
$ in thousands	2025		2024
Demonstration Plant	$	122,352	$	122,845
Furniture and equipment	1,173		1,069
Assets acquired under finance lease	349		349
Construction-in-progress	3,326		48,438
Total property, plant, and equipment, gross	127,200		172,701
Accumulated depreciation and amortization (1)	(30,605)		(21,231)
Total property, plant, and equipment, net	$	96,595	$	151,470


	June 30,		December 31,
$ in thousands	2025		2024
Incentive compensation	$	1,596	$	2,916


Capital expenditures	673		2,285
Accrued project expenses	4,743		—

Professional fees	1,832		1,143
Other accrued liabilities	1,246		1,063
Total accrued liabilities	$	10,090	$	7,407


In thousands, except per share data	Quantity	Weighted-Average Exercise Price Per Share


Unvested, beginning of period	2,460		$	11.30
Granted	4,076		2.13
Forfeited	(30)		2.13
Unvested, end of period	6,506		$	5.60


In thousands	June 30,
Anti-Dilutive Instruments	2025	2024
Public Warrants	8,621	8,622
Private Placement Warrants	10,900	10,900
Earnout Shares	329	329
BHES Bonus Shares	2,068	2,068
Unvested Class A OpCo Units	—	242
Vested Class A OpCo Units	142,331	142,476
Unvested RSUs	2,273	933
Unvested PSUs	322	128
Make-Whole Awards	1,257	1,257
Stock Options	6,506	2,460

Total	174,607	169,415


	Quantity		Expense Recognized
	Three Months Ended June 30,		Three Months Ended June 30,
in thousands	2025	2024	2025		2024
Class A OpCo Units	1,562	942	$	10,323	$	6,228
Class B Common Stock	1,562	942	—		—
Total			$	10,323	$	6,228


$ in thousands	Performance Period End Date	Compensation Cost Incurred To Date		Remaining Compensation Cost		Total Compensation Cost
BHES JDA	January 2027	$	24,216	$	3,129	$	27,345


	Three Months Ended June 30,				$ Change		% Change
$ in thousands	2025		2024

Revenue	$	—	$	238	$	(238)	(100)	%
Cost of revenue	—		30		(30)		(100)	%
Gross profit	—		208
Operating expenses
General and administrative	13,578		7,787		5,791		74	%
Sales and marketing	1,492		876		616		70	%
Research and development	26,618		15,483		11,135		72	%
Project development	27,198		869		26,329		3,030	%

Depreciation, amortization, and accretion	21,669		20,047		1,622		8	%
Total operating expenses	90,555		45,062
Operating loss	(90,555)		(44,854)
Other income
Interest income	5,466		9,029		(3,563)		(39)	%
Change in Earnout Shares liability and Warrant liability	1,415		16,249		(14,834)		(91)	%

Other income	5		6		(1)		(17)	%
Net other income	6,886		25,284
Net loss before income tax	(83,669)		(19,570)
Income tax benefit	1,622		2,353		(731)		(31)	%
Net loss after income tax	(82,047)		(17,217)
Net loss attributable to non-controlling interests	(53,905)		(12,949)
Net loss attributable to NET Power Inc.	$	(28,142)	$	(4,268)


Exhibit Number			Description
2.1+			Business Combination Agreement, dated as of December 13, 2022, by and among Rice Acquisition Corp. II, Rice Acquisition Holdings II LLC, Topo Buyer Co, LLC, Topo Merger Sub, LLC and NET Power, LLC (incorporated by reference to Exhibit 2.1 to the Company’s Current Report on Form 8-K filed with the SEC on December 14, 2022).
2.2			First Amendment to the Business Combination Agreement, dated as of April 23, 2023, by and among Topo Buyer Co, LLC and NET Power, LLC (incorporated by reference to Exhibit 2.1 to the Company’s Current Report on Form 8-K filed with the SEC on April 24, 2023).
3.1			Certificate of Incorporation of NET Power Inc. (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed with the SEC on June 14, 2023).
3.2			Bylaws of NET Power Inc. (incorporated by reference to Exhibit 3.2 to the Company’s Current Report on Form 8-K filed with the SEC on June 14, 2023).
31.1			Certification of Principal Executive Officer and Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1			Certification of Chief Executive Officer (Principal Executive Officer and Principal Financial Officer) Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS			Inline XBRL Instance Document.
101.SCH			Inline XBRL Taxonomy Extension Schema Document.
101.CAL			Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF			Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB			Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE			Inline XBRL Taxonomy Extension Presentation Linkbase Document.
0.104			Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).


+			Certain schedules or similar attachments to this exhibit have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The Company agrees to provide a copy of any omitted schedule or similar attachment to the SEC upon request.