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In a significant corporate update, NET Power Inc., an energy company specializing in electrical industrial apparatus currently trading at $2.94 per share, announced on Monday that it has changed its certifying accountant. According to InvestingPro data, the company’s financial health score currently stands at "WEAK," with significant challenges reflected in its -$167 million EBITDA for the last twelve months. The Durham, North Carolina-based company disclosed the dismissal of Grant Thornton LLP as its independent registered public accounting firm and the engagement of KPMG LLP for the upcoming fiscal year. This change comes at a challenging time for NET Power, as InvestingPro analysis reveals over 15 key insights about the company’s performance, including rapidly declining stock value and cash burn concerns. Subscribers can access the comprehensive Pro Research Report for detailed analysis of the company’s financial position.
The change was officially made by the company’s audit committee on March 17, 2025, and was reported in a Form 8-K filed with the Securities and Exchange Commission (SEC) on March 21, 2025. According to the filing, there were no disagreements between NET Power and Grant Thornton on any accounting principles or practices, financial statement disclosures, or auditing scope or procedure during the fiscal years ended December 31, 2024, and 2023, or during the subsequent interim period through the date of dismissal.
Grant Thornton’s audit report on the company’s consolidated financial statements for the fiscal year ended December 31, 2024, did not contain any adverse opinion or disclaimer of opinion, and was not qualified or modified as to uncertainty, audit scope, or accounting principles.
Furthermore, NET Power stated that there were no reportable events as defined in Regulation S-K during the timeframes mentioned above. The company has provided Grant Thornton with the disclosures made in the 8-K filing and has received a letter from Grant Thornton addressed to the SEC, which agrees with the statements made by NET Power. This letter is included as Exhibit 16.1 in the Form 8-K.
KPMG will now be responsible for auditing NET Power’s financial statements for the fiscal year ending December 31, 2025. Prior to their engagement, NET Power did not consult with KPMG on any accounting principles or transactions that could have influenced their decision to appoint the firm.
This change comes as NET Power continues to navigate the electrical industrial sector under its current organizational name, which it adopted after a previous name change from Rice Acquisition Corp. II on February 10, 2021.
The announcement is based on a press release statement and reflects a strategic move by NET Power as it prepares for the next phase of its financial reporting. The company maintains a strong liquidity position with a current ratio of 28.65 and holds more cash than debt on its balance sheet, though its stock has declined by over 71% in the past year. The company’s Class A Common Stock and associated warrants are listed on the New York Stock Exchange under the symbols NPWR and NPWR WS, respectively. For investors seeking deeper insights into NET Power’s financial health and growth prospects, InvestingPro offers comprehensive analysis and Fair Value estimates as part of its extensive coverage of over 1,400 US stocks.
In other recent news, NET Power Inc. reported a wider-than-expected fourth quarter loss of $0.67 per share, missing analyst estimates of a $0.12 per share loss. The company also announced delays in its first utility-scale project, Project Permian, with cost estimates rising to between $1.7 billion and $2.0 billion. This development follows the completion of the Front-End Engineering and Design (FEED) study for Project Permian, which confirmed the project’s design integrity but revealed significantly higher costs. In response, NET Power has paused long-lead equipment orders and initiated a cost optimization process.
Additionally, Texas Capital Securities maintained a Buy rating on the company with a $24.00 price target, despite acknowledging the mixed outcomes of NET Power’s recent earnings release. Citi analyst Ryan Levine upgraded NET Power’s stock from Neutral to Buy, though he reduced the price target to $6.00 from $14.00, citing downside protection and strategic partnerships as key factors. Levine also noted the company’s liquidity position, which provides approximately three years to raise additional capital.
NET Power is exploring modular multi-unit plant designs to potentially reduce costs and has launched a feasibility study for this approach. The company ended 2024 with $533 million in cash and investments, down from $580 million in the previous quarter, and spent $13 million on operations and $29 million on capital expenditures in Q4. Despite the challenges, NET Power’s technology is considered vital for generating clean, reliable power, according to analysts.
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