Company: NPWR-WT
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001845437-25-000027
Chunk: 34

Company: NET Power Inc.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 2
Chunk 34
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 the same period in 2024. Interest income decreased due to lower cash balances and interest rates, partially offset by investment accretion.

Change in Earnout Shares liability and Warrant liability

The change in Earnout Shares liability and Warrant liability was $88.7 million, or 609%, for the three months ended March 31, 2025, as compared to the same period in 2024. The change was primarily due to the changes in 

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the market price of our Class A Common Stock, which correlates to the change in value of our Warrants. The Company’s stock price decreased $7.96 per share during the three months ended March 31, 2025 compared to an increase of $1.29 per share for the three months ended March 31, 2024.

Change in Tax Receivable Agreement liability

The change in Tax Receivable Agreement liability was $21.3 million, or 100.0%, for the three months ended March 31, 2025, as compared to the same period in 2024. During the three months ended March 31, 2025, the the TRA liability of $21.3 million was reduced to zero based on the determination that it was not more likely than not that its deferred tax assets subject to the TRA would be realized.  Therefore, payments under the TRA are not considered probable as of March 31, 2025. 

Income tax (expense) benefit

Income tax expense was $0.4 million for the three months ended March 31, 2025, compared to an income tax benefit of $4.0 million for the same period in 2024. This change was due to an increase in the Company’s valuation allowance, partially offset by a favorable permanent difference related to the change in the value of the Warrant liability as compared to the same period in 2024.

Net loss attributable to non-controlling interests

Net loss attributable to non-controlling interest was 64.4% of net loss before income tax for the three months ended March 31, 2025, as compared to 66.2% of net loss for the three months ended March 31, 2024. The change in the non-controlling interests was due to exchanges by OpCo members of Class A OpCo units for Class A PubCo shares, partially offset by the additional issuance of Class A OpCo units under the BHES JDA.

Liquidity