Company: NPWR-WT
Filing Date: 2025-03-10
Form Type: 10-K
Source: 0001845437-25-000008
Chunk: 40

Company: NET Power Inc.
Filing Date: 2025-03-10
Form: 10-K
Item: Item 16
Chunk 40
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December 31,20242023Non-controlling interest holders64.4 %66.4 %NET Power Inc.35.6 %33.6 %The Company measures redeemable NCI each quarter at the higher of its book value or its redemption value. As of December 31, 2024, the Company measured redeemable NCI at redemption value. As of December 31, 2023, the Company measured redeemable NCI at book value. The adjustment to redeemable NCI is recorded through Additional paid-in capital on the consolidated statement of shareholders' equity and mezzanine shareholders' equity.

F-26

Audited Financial Statements of NET Power Inc. - Table of Contents

The table below sets forth the calculation of net loss before income tax attributable to redeemable NCI holders for the following periods:SuccessorPeriod FromJune 8, 2023Year Endedthrough$ in thousands December 31, 2024December 31, 2023Net loss before income tax$(175,224)$(147,523)Redeemable non-controlling interest percentage64.4 %66.4 %Net loss before income tax attributable to non-controlling interests$(115,453)$(98,760)Tax-related Partnership DistributionUnder the Second Amended and Restated Limited Liability Company Agreement of OpCo, OpCo is required, when certain conditions are met, to make tax-related distributions to the Class A OpCo Unit holders. These conditions were met in 2024 and, as a result, during the fourth quarter of 2024, the Company made a tax-related partnership distribution of $4.8 million. The partnership distributions are recorded as a reduction of Redeemable non-controlling interest in subsidiary on the consolidated balance sheets. The Third Amended and Restated Limited Liability Company Agreement of OpCo was effective January 17, 2025. Under the amended agreement, future partnership distributions will not be required unless OpCo is in a taxable income position.

NOTE 12 — Share-Based PaymentsAggregate share-based compensation expense, net of forfeitures, was $33.7 million, $14.1 million, and $8.6 million for the year ended December 31, 2024 (Successor), the period from June 8, 2023 through December 31, 2023 (Successor), and the period from January 1, 2023 through June 7, 2023 (Predecessor), respectively.