Company: NPWR-WT
Filing Date: 2025-03-10
Form Type: 10-K
Source: 0001845437-25-000008
Chunk: 42

Company: NET Power Inc.
Filing Date: 2025-03-10
Form: 10-K
Item: Item 16
Chunk 42
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 independent directors cliff-vest on the first anniversary of each award’s grant date.Additionally, there were 1,257,467 RSUs awarded to certain legacy employees as permitted by the Business Combination agreement (the “Make-Whole Awards”). These RSUs vest upon occurrence of the following events, which are considered performance conditions: (i) commercial operations achieved by the Company’s first utility-scale power plant, and (ii) a fully-executed license agreement and final investment decision achieved for another utility-scale power plant. The Make-Whole Awards expire ten years from the grant date. The Company will record compensation expense related to the Make-Whole Awards from the date the performance conditions are considered probable through the expected vesting dates. As of December 31, 2024, the performance conditions are not considered probable, therefore, no compensation cost has been recognized related to the Make-Whole Awards.The following table presents a summary of RSU activity during the year ended December 31, 2024 (Successor):QuantityGrant Date Fair Value Per ShareUnvested, beginning of period443,221$13.13 Granted1,792,13511.14 Forfeited(34,723)11.73 Vested(68,846)13.48 Unvested, end of period2,131,787$11.54 Performance Stock Units (Successor)On April 2, 2024, there were 127,710 performance stock units (“PSUs”) awarded to certain executives for which the vesting occurs upon the achievement of specific market-based conditions related to the Company’s financial performance over a three-year period, modified based on the Company’s Relative Total Shareholder Return (“TSR”) and subject to final vesting based on the participant’s continued employment through the end of the requisite service period. The amount of awards that will ultimately vest for the PSU can range from 0% to 200% based on the TSR calculated over a three-year period. The fair value of the PSUs was determined using the Monte Carlo Simulation model and is being expensed over the three-year vesting period. The assumptions used to calculate the fair value of these awards were:Weighted average expected life3 yearsRisk-free interest rates4.4 %Expected volatility68.0 %The following table presents a summary of PSU activity as of December 31, 2024 and the changes during the year ended December 31, 2024 (Successor):QuantityGrant Date Fair Value Per ShareUn