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netpower(NPWR) - 2024 Q2 - Quarterly Report

Revenue Performance - Revenue increased by 113,or90113, 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,or7523,810, 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,or232,889, 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,or59603, 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,or160794, 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,or27429,357, 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,or69814,623, 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,downfrom606,798, down from 636,927 as of December 31, 2023[138]. - Net cash used in operating activities was 10,837forthesixmonthsendedJune30,2024,comparedto10,837 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 2,378asofJune30,2024[145].CommitmentsandAgreementsThetotalvalueoftheBHESJointDevelopmentAgreement(JDA)is2,378 as of June 30, 2024[145]. Commitments and Agreements - The total value of the BHES Joint Development Agreement (JDA) is 140,000, with approximately 20,287recognizedincashandsharebasedexpensesasofJune30,2024[146].TheCompanyhascommittedtopurchasecomponentsofindustrialmachinerytotaling20,287 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].