netpower(NPWR) - 2024 Q4 - Annual Report

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$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$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$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].