netpower(US:NPWR)2025-11-13 21:18Revenue Performance - Net Power reported no revenue for the three months ended September 30, 2025, compared to $12,000 in the same period in 2024, representing a 100% decrease [111]. - Revenue for the nine months ended September 30, 2025 was $0, a decrease of $250,000 or 100% compared to $250,000 in 2024 [123]. Expenses - Research and development expenses increased by $7.2 million, or 42%, for the three months ended September 30, 2025, primarily due to increased activity under the BHES JDA and ongoing validation testing [115]. - Project development expenses surged by $9.8 million, or 4,206%, for the three months ended September 30, 2025, due to costs associated with Project Permian [116]. - General and administrative expenses increased by $0.7 million, or 8%, for the three months ended September 30, 2025, primarily due to higher professional fees and increased employee headcount [112]. - Sales and marketing expenses rose by $0.4 million, or 35%, for the three months ended September 30, 2025, attributed to higher professional fees and growth in employee headcount [113]. - Research and development expenses increased by $29.7 million, or 67%, totaling $73.8 million for the nine months ended September 30, 2025, compared to $44.1 million in 2024 [127]. - Project development expenses surged by $40.3 million, or 2,826%, reaching $41.7 million for the nine months ended September 30, 2025, compared to $1.4 million in 2024 [128]. - General and administrative expenses rose by $8.7 million, or 39%, totaling $31.4 million for the nine months ended September 30, 2025, compared to $22.6 million in 2024 [125]. - Cash used in operating activities increased by $74.3 million, totaling $93.0 million for the nine months ended September 30, 2025, compared to $18.7 million in 2024 [141]. Losses and Impairments - An impairment loss of $1,095.8 million was recognized for the three months ended September 30, 2025, related to long-lived assets [117]. - Operating loss for the nine months ended September 30, 2025 was $1.72 billion, compared to a loss of $130.9 million in 2024 [123]. - Net loss attributable to Net Power Inc. was $559,000 for the nine months ended September 30, 2025, compared to a loss of $14,871 in 2024 [123]. - The company recognized an impairment loss of $1.1 billion related to long-lived assets in the third quarter of 2025 [129]. - An impairment loss of $1,095.8 million was recognized for the three and nine months ended September 30, 2025, indicating significant challenges in asset recoverability [152]. Interest and Tax - Interest income decreased by $3.2 million, or 40%, for the three months ended September 30, 2025, due to lower interest-bearing cash and investment balances [119]. - Interest income decreased by $8.5 million, or 35%, totaling $16.2 million for the nine months ended September 30, 2025, compared to $24.7 million in 2024 [132]. - Income tax benefit was $1.2 million for the three months ended September 30, 2025, compared to $4.7 million for the same period in 2024, reflecting an increase in the Company's valuation allowance [121]. Liquidity and Commitments - Total liquidity as of September 30, 2025 was $421.5 million, down from $530.2 million at the end of 2024 [138]. - As of September 30, 2025, the company has committed to purchase components of industrial machinery totaling $149.1 million, with $66.8 million remaining related to these commitments [150]. Strategic Focus - The Company intends to pause all development work and related expenditures for its first utility-scale power plant (SN1) to focus on new business opportunities in low-carbon gas power solutions [109]. - The total value of the BHES Joint Development Agreement (JDA) is $140 million, with approximately $54.0 million recognized in cash and share-based expenses as of September 30, 2025 [148]. - The company incurred expenses of $1.0 million and $4.9 million related to the BHES JDA Make-Whole Payments for the three and nine months ended September 30, 2025, respectively [148]. - The company expects to remain an emerging growth company (EGC) through the end of 2025, benefiting from an extended transition period for compliance with new financial accounting standards [153].