Company: NPWR-WT
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001845437-25-000061
Chunk: 72

Company: NET Power Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 72
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35%, for the nine months ended September 30, 2025, as compared to amounts for the same period in 2024. This decrease was due to lower interest-bearing cash and investment balances, declines 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 $36.9 million, or 126%, for the nine months ended September 30, 2025, as compared to the same period in 2024. This increase is primarily due to the fluctuations in the market price of our Class A Common Stock as well as higher volatilities. The Company’s stock price decreased $7.58 per share during the nine months ended September 30, 2025 compared to a decrease of $3.09 per share for the nine months ended September 30, 2024.

Change in Tax Receivable Agreement liability

In March 2025, the Company reduced the Tax Receivable Agreement (“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 $8.7 million for the nine months ended September 30, 2025, as compared to amounts for the nine months ended September 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 64.5% of net loss before income tax for the nine months ended September 30, 2025, as compared to 66.0% of net loss for the nine months ended September 30, 2024. The change in the non-controlling interests was due to exchanges by OpCo members of Class A OpCo units for Class A PubCo shares