Company: NPWR-WT
Filing Date: 2025-03-10
Form Type: 10-K
Source: 0001845437-25-000008
Chunk: 31

Company: NET Power Inc.
Filing Date: 2025-03-10
Form: 10-K
Item: Item 16
Chunk 31
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951 Earnout Shares31,958 1,671 Total liabilities$83,241 $57,591 ___________(1) $22.6 million of these investments are classified as long-term on our consolidated balance sheet.The following table contains a reconciliation of the beginning and ending balances of recurring Level 3 fair value measurements included in the consolidated statements of operations and comprehensive loss:SuccessorPredecessorPeriod FromPeriod FromJune 8, 2023January 1, 2023Year Endedthroughthrough$ in thousands December 31, 2024December 31, 2023June 7, 2023Balance of recurring Level 3 liabilities at beginning of period$38,622 $63,851 $5,174 Change in Earnout Shares liability and Warrant liability13,585 (16,174)— Issuances— (9,055)— Payments— — (5,174)Balance of recurring Level 3 liabilities at end of period$52,207 $38,622 $—      Earnout SharesThe fair value of the Earnout Shares is estimated using a Monte Carlo simulation. The Monte Carlo simulation considers daily simulated stock prices as a proxy for the Company’s daily volume-weighted average share price. The key inputs into the valuation of the Earnout Shares are an expected remaining term of 1.43 years, a risk-free rate of 4.1% and estimated equity volatility of 59.7%. The volatility assumption is based on a blended average of equity volatility of publicly traded companies within the Company’s peer group, the Company’s own historical volatility, and the implied volatility of the Public Warrants.WarrantsIn connection with the Business Combination, the Company recorded 8,624,974 Public Warrants exercisable into 8,624,974 shares of Class A Common Stock at a price of $11.50 per share. The Company may redeem the Public Warrants for $0.01 if the last reported trading price of the Company’s Class A Common Stock price equals or exceeds $18.00 per share for any 20 trading days within a 30-trading day period. Additionally, the Public Warrants may be redeemed if the last reported trading price of the Company’s Class A Common Stock equals or exceeds $10.00 and is below $18.00 by paying a make-whole premium. The Public Warrants expire five years after the Closing Date. The Public Warrants are valued using