Company: NPWR-WT
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001845437-25-000027
Chunk: 11

Company: NET Power Inc.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 1
Chunk 11
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 the second quarter of 2024, the Company completed its estimate of deferred taxes as of the Closing Date and finalized its purchase price allocation, which resulted in a measurement adjustment that reduced goodwill by $64.1 million. In March 2025, the Company assessed its goodwill for impairment. Due to a change in the Company’s business plan, as discussed below, and related sustained decrease in the Company’s market capitalization, the Company concluded that it was more likely than not that the fair value was less than its carrying amount as of March 31, 2025. As a result, the Company fully impaired its goodwill and recorded an impairment of $359.8 million during the three months ended March 31, 2025, which is included in Goodwill impairment and other charges on the condensed consolidated statements of operations and comprehensive loss.

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Table of Contents

Definite-Lived Intangible AssetsThe following tables summarize the Company’s definite-lived intangible assets included in the condensed consolidated balance sheets:March 31,December 31,20252024$ in thousandsGross AmountAccumulated AmortizationNet AmountGross AmountAccumulated AmortizationNet AmountDeveloped technology$1,345,000 $(121,797)$1,223,203 $1,345,000 $(104,985)$1,240,015 Software(1)1,861 (126)1,735 1,407 (79)1,328 Total definite-lived intangible assets$1,346,861 $(121,923)$1,224,938 $1,346,407 $(105,064)$1,241,343 ___________(1) Software includes $0.7 million and $0.6 million related to software work-in-progress as of March 31, 2025 and December 31, 2024.The Company evaluates its long-term assets for impairment when a triggering event occurs. During the quarter ended March 31, 2025, the Company identified a triggering event due to higher-than-expected indicative cost estimates for its first utility-scale project. The Company has since paused new purchase commitments for the project’s long-lead equipment and has commenced a value engineering exercise to determine project cost reductions and better understand the project’s expected economic feasibility.As the Company is in the development stage, focusing on developing and commercializing its technology, it assessed its definite-lived intangible assets, the Demonstration Plant, and other corporate assets for impairment as an