Company: NPWR-WT
Filing Date: 2025-03-10
Form Type: 10-K
Source: 0001845437-25-000008
Chunk: 20

Company: NET Power Inc.
Filing Date: 2025-03-10
Form: 10-K
Item: Item 16
Chunk 20
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 Warrants, the Earnout Shares (as defined in Note 6), and investments in securities (Note 5 and Note 6).WarrantsThe Company issued Public Warrants (the “Public Warrants”) and Private Placement Warrants (the “Private Placement Warrants,” and collectively with the Public Warrants, the “Warrants”) (as defined in Note 3) prior to the consummation of the Business Combination. The Company accounts for Warrants as liability-classified instruments based on an assessment of the Warrants’ specific terms and applicable authoritative guidance outlined in ASC Topic 480, Distinguishing Liabilities from Equity (“ASC 480”), ASC Topic 815, Derivatives and Hedging (“ASC 815”) and relevant SEC reporting rules. When making this assessment, the Company determined the Warrants are not considered to be indexed to the Company’s stock price; therefore, in accordance with ASC 815, the Company accounts for the outstanding Warrants as a liability at fair value on the consolidated balance sheets. The Warrants are subject to remeasurement at each reporting date with any change in the fair value recognized in Change in Earnout Shares liability and Warrant liability on the Company’s consolidated statements of operations and comprehensive loss. Earnout Shares and Restricted SharesUnvested Earnout Shares (as defined in Note 11) are reported as liabilities on the Company’s consolidated balance sheets. The liability classification reflects the interpretation that the Earnout Share settlement provision contingent on a change in control event does not represent an input into a fixed-for-fixed option pricing model. The usage of a model other than a fixed-for-fixed option model results in liability classification pursuant to the guidance in ASC Topic 815, Derivatives and Hedging. 

F-12

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

The Price-Based Lockup Shares and the Time-Based Lockup Shares (as defined in Note 11) are included as equity within the Company’s consolidated balance sheets.Intangible AssetsThe Company accounts for definite-lived intangible assets, in accordance with ASC Topic 350, Goodwill and Other Intangible Assets (“ASC 350”). Intangible assets are comprised of developed technology and software. Developed technology is related to the Net Power Cycle and is amortized over a 20-year useful life. Software is amortized over a 5-year useful life.GoodwillThe Company recognizes goodwill in accordance with ASC 350. Goodwill represents the excess costs of an acquired entity over the amounts assigned to assets acquired and liabilities