Company: NPWR-WT
Filing Date: 2025-03-10
Form Type: 10-K
Source: 0001845437-25-000008
Chunk: 25

Company: NET Power Inc.
Filing Date: 2025-03-10
Form: 10-K
Item: Item 16
Chunk 25
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 are included on the related tax liability line in the consolidated balance sheet. Tax Receivable Agreement Liability As part of the Business Combinations, the Company entered into the Tax Receivable Agreement (“TRA”) with certain OpCo unitholders. Pursuant to the TRA, the Company is required to pay approximately 75% of the calculated tax savings based on the portion of basis adjustments on exchanges of OpCo units and other carryforward attributes that are anticipated to be able to be utilized in future years. Such tax attributes include the existing tax basis of certain assets of OpCo and its consolidated subsidiaries; tax basis adjustments resulting from taxable exchanges of Class A OpCo Units; certain tax benefits realized by Net Power Inc. as a result of the Business Combination and tax deductions in respect of portions of certain TRA payments. All such payments made under the terms of the TRA are the obligations of Net Power Inc. and not of OpCo.Segment Reporting In accordance with ASC Topic 280, Segment Reporting (“ASC 280”), the Company has determined that it has one operating segment and one reportable segment, which includes all of the Company’s consolidated accounts. The Company’s chief operating decision maker (“CODM”) is its Chief Executive Officer. The CODM focuses on consolidated Operating income (loss), with a focus on research and development and general and administrative expenses, along with interest income to assess the Company’s performance and allocate resources. Refer to the consolidated financial statements for significant segment expenses and assets regularly provided to the CODM.During November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-07, Improvements to Reportable Segment Disclosures, which amends ASC 280 primarily through enhanced disclosures about significant segment expenses. The amendments are effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company adopted ASU 

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Audited Financial Statements of NET Power Inc. - Table of Contents

2023-07 on December 31, 2023, and it did not have a material impact on the Company’s consolidated statements of operations, balance sheets, or cash flows in its consolidated financial statements. Accounting Standards Not Yet AdoptedDuring December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740)—Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 requires