Company: NPWR-WT
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001845437-25-000061
Chunk: 52

Company: NET Power Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 52
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 Common Stock closing price of $3.01 as of September 30, 2025 with a strike price of $11.50 per share. The volatility assumption is based on a blended average of equity volatility of publicly traded companies within the Company’s peer group, the Company's own historical volatility, and the implied volatility of the Public Warrants. The fair value of the Private Placement Warrants is considered a Level 3 fair value measurement.

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The following table contains the key inputs used in the valuations of the Private Placement Warrants:September 30, 2025December 31, 2024Term (in years)2.693.44Volatility99.0 %59.3 %Risk-free rate3.5 %4.2 %Earnout SharesThe fair value of the Earnout Shares (as defined in Note 6 to the consolidated financial statements included in the 2024 Annual Report) is estimated using a Monte Carlo simulation. The Monte Carlo simulation considers daily simulated stock prices as a proxy for the Company’s daily volume-weighted average share price. Historically, the volatility assumption is based on a blended average of equity volatility of publicly traded companies within the Company’s peer group, the historical volatility of the Company’s Class A common stock, and the implied volatility of the Public Warrants. For the valuation as of September 30, 2025, the volatility assumption is based on the Company’s own historical volatility, implied volatility on the Company’s own common stock options, and the implied volatility of the Public Warrants.The following table contains the key inputs used in the valuations of the Earnout Shares:September 30, 2025December 31, 2024Term (in years)0.691.43Volatility104.0 %59.7 %Risk-free rate3.7 %4.1 %

NOTE 6 — Goodwill and Intangible AssetsGoodwillGoodwill represented the future economic benefits derived from the Company’s unique market position, the growth attributable to the Net Power Cycle and the Company’s assembled workforce, none of which are individually and separately recognized as intangible assets. Goodwill was allocated to the Company’s sole reportable segment and reporting unit.The following table presents the changes to goodwill included in the condensed consolidated balance sheets:September 30,December 31,$ in thousands20252024Balance at the beginning of the period$359,847 $423,920 Impairment(359,847)— Measurement adjustments