Revenue Decline from RoPower Project Completion
Revenue decreased by $8.0 million as the Fluor FEED Phase 2 engineering services for RoPower were completed in late 2025, and a subsequent price agreement with Fluor reduced revenue by $176,000, resulting in negative gross margin for the quarter.
R&D Spending Rises for NPM Advancement
Research and development expenses increased $6.6 million, driven by $7.1 million in higher costs to advance technological readiness and design maturity of NPM components, partially offset by lower regulatory costs after SDA approval.
G&A Expenses Boosted by Compensation and Organizational Costs
General and administrative expenses rose $4.4 million due to $1.2 million in higher equity-based compensation and personnel costs, and $3.9 million in higher organizational costs, partially offset by lower legal fees.