Company: NPWR-WT
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001845437-25-000027
Chunk: 45

Company: NET Power Inc.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part II, Item 1A
Chunk 45
---
Item 1A. Risk Factors

As a smaller reporting company, we are not required to provide the information called for by this Item. However, for a discussion of the material risks, uncertainties and other factors that could have a material effect on us, please refer to Part I, Item 1A. “Risk Factors” in our Annual Report.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Unregistered Sales of Equity Securities

On February 12, 2025, the Company issued 1,175,107 shares of Class B Common Stock and OpCo issued 1,175,107 Class A units to BHES as payment for costs incurred pursuant to the Amended and Restated JDA during the fourth quarter of 2024. The issuances by the Company and OpCo were exempt from registration under the Securities Act by virtue of Section 4(a)(2) of the Securities Act. These transactions did not involve any public offering, any underwriters, any underwriting discounts or commissions, or any general solicitation or advertising.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

Separation Agreements and Consulting Agreements with Former Executives

On May 7, 2025, our board of directors approved the Company’s entry into Separation and Release Agreements with Brian Allen, our former President and Chief Operating Officer, and Akash Patel, our former Chief Financial Officer.  Pursuant to these Separation and Release Agreements, Mr. Allen and Mr. Patel will each be paid a cash severance payment of $741,234 and $738,196, respectively, which amounts are equal to the sum of 

29

Table of Contents

the following amounts: (i) an amount equal to the sum of each of their (A) current base salary and (B) the average of the actual annual bonuses paid to Mr. Allen and Mr. Patel with respect to 2023 and 2024, (ii) a pro-rated portion of their respective target annual bonuses for 2025, and (iii) an amount equal to 12 months of the premiums for their respective group health plan coverages (including coverage for eligible dependents) under the Company’s group health plans. 

Pursuant to the Separation and Release Agreements, Mr. Allen and Mr. Patel are subject to certain non-disparagement, non-compete, non-solic