Company: NPWR-WT
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001845437-25-000061
Chunk: 60

Company: NET Power Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 60
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30,in thousands2025202420252024Class A OpCo Units1,3571,030$8,971 $6,807 Class B Common Stock1,3571,030— — Total$8,971 $6,807 QuantityExpense RecognizedNine Months Ended September 30,Nine Months Ended September 30,in thousands2025202420252024Class A OpCo Units4,1662,623$27,541 $17,336 Class B Common Stock4,1662,623— — Total$27,541 $17,336 Shares issued as payment under the terms of the BHES JDA are issued at a discount expected to cause a total loss of approximately $17.5 million to the Company over the term of the agreement. The Company has incurred inception-to-date losses of $13.5 million related to such issuances. Additionally, if the volume-weighted average price of the Company’s stock for ten consecutive trading days (“10-Day VWAP”) immediately preceding the payment date for services under the BHES JDA is less than $4.00 per share (the “Floor Price”), an incremental cash payment is required for the difference between the 10-Day VWAP and the Floor Price (the “BHES JDA Make-Whole Payment”). As of September 30, 2025, the Company had $0.5 million in current liabilities payable to related parties on the condensed consolidated balance sheets related to the BHES JDA Make-Whole Payment. For the three and nine months ended September 30, 2025, the Company incurred $1.0 million and $4.9 million related to the BHES JDA Make-Whole Payment. For the three and nine months ended September 30, 2024, the Company had no such expenses related to the BHES JDA Make-Whole Payment.BHES may earn additional shares (“BHES Bonus Shares”) if it meets certain targets related to the development of the Company’s technology. The Company determined that it is probable it will issue these shares to BHES; therefore, the Company recognizes the compensation cost associated with these share-based payments ratably over the expected service period. The following table disaggregates the variable share-based compensation payable to BHES should it meet its milestone objectives:$ in thousandsCompensation Cost Incurred To DateRemaining Compensation CostTotal Compensation CostBHES JDA $24,390 $2,955 $27,345 BH