Company: NPWR-WT
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001845437-25-000053
Chunk: 8

Company: NET Power Inc.
Filing Date: 2025-08-11
Form: 10-Q
Item: Part I, Item 2
Chunk 8
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 2025, as compared to amounts for the same period in 2024, primarily due to new additions to the Demonstration Plant.

Interest income

Interest income decreased by $5.4 million, or 32%, for the six months ended June 30, 2025, as compared to amounts for the same period in 2024. This decrease was due to lower interest-bearing cash and investment balances, decline in interest rates, and lower investment accretion.

Change in Earnout Shares liability and Warrant liability

The change in Earnout Shares liability and Warrant liability increased by $73.9 million, or 4,423%, for the six months ended June 30, 2025, as compared to the same period in 2024. This increase is primarily due to the change in the fair value of the Private Placement Warrants and Public Warrants, which was driven by changes 

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in our stock price. The Company’s stock price decreased $8.12 per share during the six months ended June 30, 2025 compared to a decrease of $0.27 per share for the six months ended June 30, 2024.

Change in Tax Receivable Agreement liability

In March 2025, the Company reduced the TRA liability of $21.3 million to zero as payments related to the TRA were not considered probable. In May 2025, pursuant to its rights under the TRA, the Company delivered to the agent of the TRA holders notice of the Company’s intent to terminate the TRA (the “Early Termination Notice”). No early termination payment was payable to any TRA holder. The Early Termination Notice became final and binding on June 12, 2025.

Income tax benefit

Our income tax benefit decreased by $5.2 million for the six months ended June 30, 2025, as compared to amounts for the six months ended June 30, 2024. This change was due to an increase in the Company’s valuation allowance, partially offset by a favorable permanent difference related to the change in the value of the Warrant liability as compared to the same period in 2024. In addition, the Company finalized deferred taxes as of the Closing Date of the Business Combination in 2024. 

Net loss attributable to non-controlling interests

Net loss attributable to non-controlling interest was 64.4% of net loss before income tax for the six months ended June 30, 202