Company: NPWR-WT
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001845437-25-000027
Chunk: 19

Company: NET Power Inc.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 1
Chunk 19
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 at this point the length of time that this action will be ongoing or the liability, if any, which may arise therefrom.Asset Retirement ObligationUnder the terms of the lease for the Demonstration Plant, the Company is required to remove the Demonstration Plant and restore the land to post-clearing grade level. During 2024, the Company revised the estimate of its asset retirement obligation as a result of additional construction at the Demonstration Plant. The following table reconciles the beginning and ending balances of the asset retirement obligation as of the dates presented:March 31,December 31,$ in thousands20252024Asset retirement obligation, beginning of period$3,265 $2,060 Revision of estimate— 996 Accretion expense80 209 Asset retirement obligation, end of period$3,345 $3,265 Unconditional Purchase ObligationsThe Company has committed to purchase industrial components for installation at its Demonstration Plant and its first commercial power plant. The Company pays for these components in installments aligned to contractual milestones. In accordance with ASC Topic 440, Commitments, the Company does not recognize these commitments on the condensed consolidated balance sheets.As of March 31, 2025, the Company had $62.9 million of remaining purchase obligations through February 2027 related to the BHES JDA, which is expected to be settled 50% in cash and 50% in common stock, plus any incremental cash payments that may be owed for periods where the 10-Day VWAP is less than $4.00 per share in the 10 trading days preceding the date on which shares are to be issued to BHES. In addition, the Company had $95.0 million of additional remaining asset purchase obligations through 2027. Refer to Note 13 — Related Party Transactions for additional information related to the BHES JDA.

NOTE 15 — Subsequent EventsIn April 2025, the Company terminated certain members of its management team. As a result of these changes, the Company expects to record charges of $3.0 million to $3.3 million in severance costs and approximately $1.0 million to $1.3 million of costs related to the accelerated vesting of stock-based compensation during the second quarter 2025, subject to the execution of customary releases.

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Table of Contents

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 

The following management’s discussion and analysis (“MD&A”) provides information that management