Company: NPWR-WT
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001845437-25-000053
Chunk: 52

Company: NET Power Inc.
Filing Date: 2025-08-11
Form: 10-Q
Item: Part I, Item 1
Chunk 52
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shares distributed as payment for services rendered under the terms of the BHES JDA during the periods described below:QuantityExpense RecognizedThree Months Ended June 30,Three Months Ended June 30,in thousands2025202420252024Class A OpCo Units1,562942$10,323 $6,228 Class B Common Stock1,562942— — Total$10,323 $6,228 QuantityExpense RecognizedSix Months Ended June 30,Six Months Ended June 30,in thousands2025202420252024Class A OpCo Units2,8091,592$18,570 $10,526 Class B Common Stock2,8091,592— — Total$18,570 $10,526 Shares issued as payment under the terms of the Amended and Restated JDA are issued at a discount expected to cause a total loss of approximately $17.5 million to the Company over the term of the agreement. The Company has incurred inception-to-date losses of $11.7 million related to such issuances. Additionally, if the volume-weighted average price of the Company’s stock for ten consecutive trading days (“10-Day VWAP”) immediately preceding the payment date for services under the BHES JDA is less than $4.00 per share (the “Floor Price”), an incremental cash payment is required for the difference between the 10-Day VWAP and the Floor Price (the “BHES JDA Make-Whole Payment”). As of June 30, 2025, the Company had $1.3 million in current liabilities payable to related parties on the condensed consolidated balance sheets related to the BHES JDA Make-Whole Payment. For the three and six months ended June 30, 2025, the Company incurred $1.4 million and $3.9 million related to the BHES JDA Make-Whole Payment.BHES may earn additional shares (“BHES Bonus Shares”) if it meets certain proposed project milestones related to the development of our technology. The Company determined that BHES’s achievement of each of these milestones is probable; therefore, the Company recognizes the compensation cost associated with milestone share-based payments ratably over the expected service period. The following table disaggregates the variable share-based compensation payable to BHES should it meet its milestone objectives:$ in thousandsPerformance Period End DateCompensation Cost Incurred To DateRemaining Compensation CostTotal Compensation CostBHES JDA January 2027$24,