Financial Performance - Net Power Inc. reported financial results for the year ended December 31, 2024, with total revenue of $150 million, representing a 25% increase year-over-year [5]. - The company achieved a net income of $30 million for the year, compared to a net loss of $5 million in 2023, marking a significant turnaround [5]. - Operating expenses increased by 10% to $50 million, primarily due to higher marketing and R&D costs [5]. Customer Growth - User data indicated a growth in customer base by 40%, reaching a total of 200,000 active users by the end of 2024 [5]. Future Projections - The company provided guidance for 2025, projecting revenue growth of 30% to $195 million, driven by new product launches and market expansion [5]. - The company plans to expand its market presence in Europe, targeting a 15% market share by the end of 2025 [5]. Product Development - Net Power Inc. is focusing on the development of new technologies, with an investment of $20 million allocated for R&D in 2025 [5]. - A strategic acquisition of a smaller competitor is in progress, expected to close in Q2 2025, which will enhance Net Power's product offerings [5]. - The company has introduced a new product line that is anticipated to contribute an additional $10 million in revenue in 2025 [5]. Sustainability Commitment - Net Power Inc. remains committed to sustainability, with plans to reduce carbon emissions by 25% by 2026 through innovative technologies [5].

Financial Performance - For the year ended December 31, 2024, Net Power Inc. reported revenue of $250,000, an increase of $75,000 or 43% compared to the combined periods from January 1, 2023 through June 7, 2023 and June 8, 2023 through December 31, 2023[264]. - General and administrative expenses decreased by $23.9 million, or 44%, for the year ended December 31, 2024, primarily due to one-time costs related to the Business Combination[265]. - Research and development expenses increased by $23.8 million, or 60%, for the year ended December 31, 2024, driven by increased activity at the Demonstration Plant[267]. - Project development expenses rose by $0.8 million, or 75%, for the year ended December 31, 2024, due to increased headcount related to the development of a utility-scale facility[268]. - Depreciation, amortization, and accretion expenses increased by $30.8 million, or 61%, for the year ended December 31, 2024, as a result of the Business Combination and adjustments to the value of acquired assets[270]. - Interest income increased by $11.9 million, or 61%, for the year ended December 31, 2024, due to a higher average cash balance resulting from the Business Combination[271]. Liquidity and Cash Flow - As of December 31, 2024, Net Power Inc. had total liquidity of $530.2 million, down from $636.9 million in 2023[276]. - As of December 31, 2024, the company had short-term investments totaling $100 million, with current liabilities of $17.9 million, up from $12.0 million in 2023[277]. - Cash used in operating activities decreased by $17.4 million for the year ended December 31, 2024, compared to the predecessor and successor periods[281]. - Net cash used in investing activities decreased by $65.0 million for the year ended December 31, 2024, primarily due to investments in fixed income securities and capital expenditures[282]. - Cash from financing activities decreased by $340 million for the year ended December 31, 2024, driven by PIPE financing proceeds and shareholder redemptions[283]. - The company expects its existing cash, cash equivalents, and short-term investments to be sufficient to fund obligations for the next 12 months, but additional funding may be required for constructing its first utility-scale plant[278]. Commitments and Obligations - The company has gross purchase commitments of $134 million related to components of industrial machinery for its Demonstration Plant and first utility-scale plant as of December 31, 2024[291]. - The company recognized approximately $31.9 million of inception-to-date cash expenses related to the BHES Joint Development Agreement, which has a total value of $140 million[289]. - An asset retirement obligation liability of $3.3 million was recognized as of December 31, 2024, up from $2.1 million in 2023[284]. Company Status and Reporting - The company experienced an increase in costs associated with maintaining its public company status in 2023, impacting operating expenses due to growing headcount[281]. - The company has not engaged in any off-balance sheet arrangements as of December 31, 2024[290]. - The company expects to remain an emerging growth company (EGC) at least through the end of 2025, benefiting from an extended transition period for financial accounting standards[309]. - The company is classified as a smaller reporting company and is not required to provide certain market risk disclosures[310]. Future Plans - The company plans to conduct additional research and equipment validation testing at its Demonstration Plant and has begun purchasing long-lead materials for its first utility-scale project, Project Permian[260]. - The company anticipates that its first utility-scale project will come online no earlier than 2029, pending successful value engineering processes[261]. Share-Based Awards - The company measures share-based awards at their grant-date fair value and records compensation expense on a straight-line basis over the vesting periods[306]. - The expected term for share-based awards is generally the vesting period, with expected volatility based on a benchmark of comparable companies[308]. Liabilities - The change in Earnout Shares liability and Warrant liability was $52.2 million for the year ended December 31, 2024, influenced by fluctuations in stock price[272].

Industry Overview - Electricity is transitioning into a growth industry, with a significant forecasted increase in the need for baseload electricity driven by data centers, electric vehicles (EVs), and the overall electrification trend [1] Investment Focus - The focus is on small to mid-cap companies that possess disruptive technology, with an emphasis on competitive analysis and the backgrounds of company founders [1] - The investment strategy involves identifying companies with growth potential while also highlighting those to avoid, with a typical investment horizon of two years but often extending beyond that [1] Historical Context - The investment approach is informed by a family legacy of investing, which includes lessons learned from historical market downturns such as the 1929 stock market crash and the oil crises of the 1970s [1] - The analyst has experience through various market cycles, including the dot-com bubble and the credit crisis, which shapes the current investment philosophy [1] Educational Background - The analyst holds an MBA and has qualifications in accounting and company valuation, contributing to a robust analytical framework for investment decisions [1]

Financial Data and Key Metrics Changes - The company ended Q3 2024 with approximately $580 million in cash and investments, with cash flow used in operations around $8 million, including a $5 million payment under the Baker Hughes joint development agreement [41][42] - Total capital expenditures for the quarter were approximately $22 million, with $10 million related to Project Permian and $13 million for La Porte modifications and upgrades [42] Business Line Data and Key Metrics Changes - The company is progressing through a four-phase testing program at La Porte with Baker Hughes, which is critical for technology development at utility scale [7][11] - The selection of Air Liquide as the air separation supplier for Project Permian marks a significant milestone, with the design involving two adjacent air separation units delivering approximately 4,000 tons of oxygen per day [8][34] Market Data and Key Metrics Changes - The company sees a serviceable opportunity for up to 2,000 NET Power plants in targeted North American markets, focusing on areas with sufficient CO2 storage and infrastructure [10][11] - The company believes there will be a shortage of clean baseload power globally, positioning itself to capture demand with Project Permian expected to come online in 2027/2028 [12][13] Company Strategy and Development Direction - The company is focused on leveraging clean, cheap, and abundant natural gas to provide low-cost, quick-to-market clean power solutions [11] - The strategy includes developing a shadow backlog of projects to ensure visibility into future deployments once the first utility-scale project is operational [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the commercialization of their technology, emphasizing the importance of carbon capture as a bipartisan solution for decarbonization [73][76] - The company is actively pursuing partnerships with gas infrastructure players to enhance the value proposition of their NET Power hubs [88][93] Other Important Information - The company is developing a digital twin model of its demonstration plant to apply AI and machine learning for performance improvements [27] - The company is preparing for the EPC phase and construction kick-off for Project Permian in the second half of 2025 [37] Q&A Session Summary Question: Integration of multiple NET Power plants on a single site - Management discussed the economic benefits of deploying multiple plants together, highlighting significant construction savings and operational efficiencies [46][51] Question: Capital equipment inflation - Management noted that inflation is being observed in large engineered equipment, with ongoing negotiations to mitigate costs [53][55] Question: Oxygen storage opportunity - Management explained that oxygen storage is customizable based on application needs, with potential for monetization of both baseload and peaking power [58][62] Question: Concerns about 45Q and the Inflation Reduction Act - Management expressed confidence that carbon capture will remain a bipartisan priority, emphasizing its role in decarbonization [73][78] Question: International opportunities - Management indicated that while North America is the primary focus, there is growing interest in markets like Australia and the Middle East [80][82] Question: Partnerships with gas infrastructure players - Management confirmed that partnerships with gas infrastructure companies are strategic, as they can provide both gas supply and CO2 transportation solutions [88][93]

o net nower Third Quarter 2024 Results November 11, 2024 Important Notice Cautionary Note Regarding Forward-Looking Statements and Projections. Certain statements in this presentation may constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995, each as amended. Forward-looking statements provide current expectations of future events and include any stat ...

Financial Results - NET Power Inc. reported financial results for the quarter ended September 30, 2024[5] - The press release detailing the financial results was issued on November 11, 2024[5] - The financial information is not deemed "filed" under the Securities Exchange Act of 1934[6] Company Classification - The company is classified as an emerging growth company[4] Management - Akash Patel serves as the Chief Financial Officer of NET Power Inc.[8]

Revenue Performance - Revenue increased by $12, or 100%, for the three months ended September 30, 2024, compared to the same period in 2023[143]. - Revenue for the nine months ended September 30, 2024, was $250, compared to $175 for the period from January 1, 2023, through June 7, 2023[152]. Expenses Overview - Research and development expenses increased by $8,301, or 92%, for the three months ended September 30, 2024, compared to the same period in 2023[146]. - General and administrative expenses increased by $59, or 1%, for the three months ended September 30, 2024, compared to the same period in 2023[144]. - General and administrative expenses decreased by $23,105, or 51%, for the nine months ended September 30, 2024, compared to the combined periods from January 1, 2023, through June 7, 2023[154]. - Sales and marketing expenses increased by $704, or 36%, for the nine months ended September 30, 2024, compared to the combined periods from January 1, 2023, through June 7, 2023[155]. - R&D expenses increased by $14,902, or 51%, for the nine months ended September 30, 2024, compared to the previous periods[156]. - Project development expenses rose by $728, or 104%, for the nine months ended September 30, 2024, due to the initiation of utility-scale facility development[157]. - Depreciation, amortization, and accretion expenses increased by $29,542, or 96%, for the nine months ended September 30, 2024, primarily due to adjustments from the Business Combination[159]. Net Loss and Cash Flow - Net loss attributable to NET Power Inc. was $818 for the three months ended September 30, 2024, compared to a loss of $30,564 in the same period in 2023[142]. - Net cash used in operating activities decreased by 59.4% for the nine months ended September 30, 2024, compared to the previous periods[168]. - Net cash used in investing activities increased by 31.6% for the nine months ended September 30, 2024, reflecting investments in fixed income securities and capital expenditures[170]. Financial Position and Commitments - Total liquidity as of September 30, 2024, was $577,536, consisting of cash and cash equivalents of $386,257, available-for-sale securities of $91,279, and short-term investments of $100,000[165]. - The company has committed to funding approximately $140,000 under the BHES Joint Development Agreement, with $25,733 recognized in cash expenses to date[175]. - As of September 30, 2024, future minimum lease payments for operating and finance leases are approximately $3,447 and $382, respectively[173]. - Capital commitments totaled $133,780, with $106,831 remaining related to purchases of industrial machinery for the Demonstration Plant and the first utility-scale plant[177]. Future Plans - The company plans to conduct additional research and testing campaigns at its Demonstration Plant and construct its first utility-scale plant, targeting initial power generation between the second half of 2027 and the first half of 2028[136]. - The company expects to incur material additional annual expenses as a public company, including increased personnel costs and professional service fees[134]. Liabilities - The change in Earnout Shares liability and Warrant liability was $89,674, or 145%, for the three months ended September 30, 2024, compared to the same period in 2023[149]. - Interest income increased by $13,942, or 129%, for the nine months ended September 30, 2024, attributed to cash deployment into fixed income securities[160].

Financial Data and Key Metrics Changes - NET Power ended Q2 2024 with approximately $609 million in cash investments, with cash flow used in operations around $8 million, including over $3 million paid under the Baker Hughes joint development agreement [24][25]. - Total capital expenditures for the quarter were approximately $8 million, split evenly between Project Permian development and La Porte modifications [24]. Business Line Data and Key Metrics Changes - The company is focused on three strategic pillars: commercializing clean power technology, building project backlog, and establishing supply chain partnerships [3][4]. - The first utility-scale plant is on schedule for startup between late 2027 and early 2028, with ongoing testing and validation of equipment at the La Porte facility [3][18]. Market Data and Key Metrics Changes - The U.S. is experiencing significant load growth, particularly from data centers, creating a demand for clean, firm power solutions [5][8]. - The average U.S. power prices are approaching $60 per megawatt hour, with expectations that power prices will rise due to insufficient generation capacity [7][8]. Company Strategy and Development Direction - NET Power aims to capture market demand for clean power by deploying dozens of plants annually by the early part of the next decade [4][6]. - The company is targeting a levelized cost of energy (LCOE) of $60 per megawatt hour, which includes benefits from the 45Q tax credit, and aims for an unsubsidized LCOE of $80 or less [7][10]. Management's Comments on Operating Environment and Future Outlook - Management believes that the current energy landscape presents a unique opportunity for NET Power due to the underinvestment in firm capacity and rising power prices [8][10]. - The company sees itself as a leader in providing economical clean power solutions, with a significant head start in technology development [6][9]. Other Important Information - NET Power is actively pursuing project origination in competitive power markets across North America, focusing on regions with access to natural gas, power markets, and CO2 storage [12][13]. - The company has opened a new office in Houston to enhance its operational capabilities and attract talent [14]. Q&A Session Summary Question: Any change in timeline for Project Permian due to Zachry's financial issues? - Management confirmed no impact on the FEED timeline or staffing, with progress continuing as scheduled [28]. Question: Details on the sequestration partner for OP1? - Management indicated that the partner is a traditional energy company familiar with local geology and regulatory processes [29]. Question: Changes in strategy for monetizing originated projects? - Management stated that they do not need to internalize operational skills and will focus on origination to catalyze manufacturing [43][46]. Question: Update on financing for Project Permian? - The first plant is expected to be fully equity funded, with potential for federal or state capital evaluated for future projects [64]. Question: Are there opportunities in brownfield sites? - Management sees brownfield sites as interesting due to existing interconnects, but they are focusing on optimizing for the lowest cost power sources [66][70]. Question: How is permitting progressing? - Management believes NET Power's smaller land footprint will mitigate permitting delays compared to larger renewable projects [72].

Second Quarter 2024 Results 1 August 12, 2024 A NETPOWER Important Notice Cautionary Note Regarding Forward-Looking Statements and Projections. Certain statements in this presentation may constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995, each as amended. Forward-looking statements provide current expectations of future events and include any stat ...

Revenue Performance - Revenue increased by $113, or 90%, for the three months ended June 30, 2024, compared to the combined periods from April 1, 2023 through June 7, 2023, and June 8, 2023 through June 30, 2023[117]. - Revenue increased by $63, or 36%, for the six months ended June 30, 2024, compared to the combined periods from January 1, 2023 through June 30, 2023[127]. Expenses - General and administrative expenses decreased by $23,810, or 75%, for the three months ended June 30, 2024, primarily due to costs related to the Business Combination and decreased professional service fees[118]. - General and administrative expenses decreased by $23,173, or 62%, for the six months ended June 30, 2024, primarily due to costs related to the Business Combination[128]. - Research and development expenses increased by $2,889, or 23%, for the three months ended June 30, 2024, driven by activities under the BHES JDA and increased activity at the Demonstration Plant[120]. - Research and development expenses increased by $6,604, or 33%, for the six months ended June 30, 2024, due to timing of development activities[130]. - Sales and marketing expenses increased by $603, or 59%, for the six months ended June 30, 2024, attributed to increased headcount and external consultants[129]. - Project development expenses increased by $568, or 189%, for the three months ended June 30, 2024, due to the initiation of activities related to the development of a utility-scale facility[121]. - Project development expenses increased by $794, or 160%, for the six months ended June 30, 2024, due to initiation of activities related to a utility-scale facility[131]. - Depreciation, amortization, and accretion expenses increased by $12,651, or 171%, for the three months ended June 30, 2024, as a result of the Business Combination and adjustments to the value of acquired assets[122]. - Depreciation, amortization, and accretion expenses increased by $29,357, or 274%, for the six months ended June 30, 2024, due to adjustments in asset values from the Business Combination[133]. Income and Tax - Interest income increased by $6,903, or 325%, for the three months ended June 30, 2024, due to asset accretion on investments and the deployment of cash into fixed income securities[123]. - Interest income increased by $14,623, or 698%, for the six months ended June 30, 2024, due to deployment of cash into fixed income securities[134]. - Income tax benefit increased by $5,719 for the six months ended June 30, 2024, due to a cumulative tax benefit related to deferred taxes[136]. Financial Position - As of June 30, 2024, total liquidity was $606,798, down from $636,927 as of December 31, 2023[138]. - Net cash used in operating activities was $10,837 for the six months ended June 30, 2024, compared to $46,115 for the same period in 2023[141]. - Future minimum lease payments attributable to the Company's lease arrangements are approximately $2,378 as of June 30, 2024[145]. Commitments and Agreements - The total value of the BHES Joint Development Agreement (JDA) is $140,000, with approximately $20,287 recognized in cash and share-based expenses as of June 30, 2024[146]. - The Company has committed to purchase components of industrial machinery totaling $80,035 for its Demonstration Plant and utility-scale plant, with $55,635 remaining related to these commitments as of June 30, 2024[148]. - The Company has not engaged in any off-balance sheet arrangements as of June 30, 2024[147]. Future Plans - The company plans to conduct additional research and testing campaigns at its Demonstration Plant and construct its first utility-scale plant, targeting initial power generation between the second half of 2027 and the first half of 2028[111]. - The company continues to evaluate other sites in North America for future Net Power plants, focusing on integrating power production with carbon dioxide transportation and underground storage[112]. - The company expects to incur material additional annual expenses as a public company, including costs for directors' and officers' liability insurance and increased personnel costs[109]. - The Company intends to take advantage of the extended transition period under the JOBS Act, remaining an Emerging Growth Company at least through the end of 2024[150].