NET Power has recently released its 10-Q report, revealing key insights into the company's financial performance and operations. NET Power Inc. operates as an energy technology company in the United States, with a focus on developing the NET Power Cycle, a power generation system designed to produce electricity from natural gas while capturing virtually all atmospheric emissions.
In the 10-Q report, the management’s discussion and analysis of financial condition and results of operations highlighted several key factors affecting NET Power's prospects and future results. These include potential risks and challenges such as cost overruns in testing and operating the Demonstration Plant, technical issues with the Net Power Cycle, supply chain concerns, changes in tax policies, and access to capital for financing future projects.
NET Power's plans for the future include conducting additional research and equipment validation testing campaigns at its Demonstration Plant. The company also outlined its efforts to optimize the cost of its first utility-scale power plant, SN1, with the intention of commencing commercial operations no earlier than 2029. Additionally, NET Power is exploring the integration of combustion gas turbines into its projects to enhance economics and accelerate market deployment.
The report also provided a detailed breakdown of the company's results of operations for the three and six months ended June 30, 2025, compared to the same periods in 2024. Notably, the company reported no revenue for the periods, with operating expenses increasing significantly. General and administrative expenses rose by 74% for the three months and 58% for the six months ended June 30, 2025, primarily due to severance costs and accelerated share-based compensation related to the termination of certain executive management.
Sales and marketing expenses increased by 70% for the three months and 65% for the six months ended June 30, 2025, driven by higher employee headcount and severance costs. Research and development expenses surged by 72% for the three months and 84% for the six months, attributed to increased activity under specific development agreements and ongoing validation testing campaigns at the Demonstration Plant.
Project development expenses witnessed a substantial increase of 3,030% for the three months and 2,354% for the six months ended June 30, 2025, as the company began expensing costs associated with Project Permian and suspended further long-lead equipment releases for the project.
Today the company's shares have moved 2.98% to a price of $2.7702. For more information, read the company's full 10-Q submission here.
