Company: NPWR-WT
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001845437-25-000027
Chunk: 15

Company: NET Power Inc.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 1
Chunk 15
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 per share for the following periods:Three Months Ended March 31,In thousands, except per share data20252024NumeratorNet loss after income tax$(373,586)$(41,632)Net loss attributable to Net Power Inc.$(119,350)$(11,421)Denominator  Weighted-average number shares outstanding, basic and diluted76,997 71,895 Loss per share attributable to shareholders, basic and diluted$(1.55)$(0.16)Based on the amounts outstanding at March 31, 2025 and 2024, the Company excluded the following financial instruments from the computation of diluted loss per share because their inclusion would be anti-dilutive (in thousands):March 31,Anti-Dilutive Instruments20252024Public Warrants8,6218,622Private Placement Warrants10,90010,900Earnout Shares329329BHES Bonus Shares2,0682,068Unvested Class A OpCo Units242848Vested Class A OpCo Units141,243141,275Unvested RSUs875504Unvested PSUs128—Make-Whole Awards1,257—Stock Options2,460—Total168,123164,547    Only shares of Class A Common Stock participate in the Company’s undistributed earnings. As such, the Company’s undistributed earnings are allocated entirely to the Class A Common Stock based on the weighted-average number of shares of Class A Common Stock outstanding for the three months ended March 31, 2025 and 2024.

NOTE 12 — Income TaxesAs of March 31, 2025, the Company estimated its annual effective tax rate to be 1.8%, and recorded a deferred income tax expense of $0.4 million, for the quarter. The annual effective tax rate varies from the statutory federal income tax rate due to amounts allocated to NCI, changes in the Company’s valuation allowance and other permanent items. 

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Tax Receivable Agreement The actual amount and timing of any payments under the Tax Receivable Agreement (“TRA”) will vary depending upon a number of factors, including the timing of exchanges by the OpCo Class A unitholders, the amount and timing of the taxable income the Company generates in the future, and the federal tax rates then applicable, among other factors. The Company recognizes the TRA liability when the amount is probable and estimable.Due to the Company’s decision to pause new purchase commitments for the project’s long