Company: NPWR-WT
Filing Date: 2025-03-10
Form Type: 10-K
Source: 0001845437-25-000008
Chunk: 33

Company: NET Power Inc.
Filing Date: 2025-03-10
Form: 10-K
Item: Item 16
Chunk 33
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 These measurements were reported in Interest income (expense) on the consolidated statements of operations and comprehensive loss. In early 2023, two option holders exercised their options to purchase an aggregate of 34,588 membership units in NET Power, LLC for total proceeds of $5.8 million. There were no loan options outstanding at the time of the Business Combination.

NOTE 7 — Goodwill and Intangible AssetsGoodwillGoodwill represents 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 is allocated to the Company’s sole reportable segment and reporting unit.The following table presents the changes to goodwill included in the consolidated balance sheets (in thousands):Goodwill at December 31, 2023$423,920 Measurement adjustments(64,073)Goodwill at December 31, 2024$359,847 During the second quarter of 2024, the Company completed its estimate of deferred taxes as of the Closing Date and finalized its purchase price allocation, which resulted in a measurement adjustment to goodwill. On September 30, 2024 and October 1, 2024, the Company performed a quantitative goodwill impairment assessment due to a sustained decrease in the Company’s market capitalization. The Company applied the income approach to estimate the fair value of this reporting unit using a discounted cash flow model. Key assumptions used in this model included revenue and operating expense projections, a terminal cash flow growth rate of 7.5%, a discount rate of 26%, and a tax rate of 25%. The Company determined the fair value of the reporting unit exceeds its carrying value and no impairment was indicated. 

F-21

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

Definite-Lived Intangible AssetsThe following tables summarize the Company’s definite-lived intangible assets included in the consolidated balance sheets:December 31,20242023$ in thousandsGross AmountAccumulated AmortizationNet AmountGross AmountAccumulated AmortizationNet AmountDeveloped technology$1,345,000 $(104,985)$1,240,015 $1,345,000 $(37,735)$1,307,265 Software814 (79)735 — — — Software work-in-progress593 — 593 — — — Total definite-lived intangible assets$1,346