Company: NPWR-WT
Filing Date: 2025-03-10
Form Type: 10-K
Source: 0001845437-25-000008
Chunk: 28

Company: NET Power Inc.
Filing Date: 2025-03-10
Form: 10-K
Item: Item 16
Chunk 28
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 Business Combination was accounted for using the acquisition method of accounting. The following table summarizes the total fair value of the consideration transferred in the Business Combination (in thousands):Consideration TransferredTotalPre-combination vesting of modified profits interests$325 Pre-combination vesting of unmodified profits interests651 Consideration transferred to sellers976 Class A OpCo Units - non-controlling interests1,785,283 Fair value of total consideration transferred$1,786,259 The following table sets forth the fair value of the assets acquired and liabilities assumed in connection with the Business Combination, after consideration of all purchase price adjustments:($ in thousands)Fair ValueAssets acquiredCurrent assetsCash$7,946 Prepaid expenses637 Other current assets30 Total current assets8,613 Long-term assetsIntangible assets, net1,345,000 Property, plant, and equipment91,855 Right-of-use assets940 Total long-term assets1,437,795 Total assets acquired$1,446,408 Liabilities assumedCurrent liabilitiesAccounts payable$2,574 Accrued liabilities7,370 Current lease liability137 Other current liabilities1 Total current liabilities10,082 Long-term liabilitiesDeferred tax liability7,353 Asset retirement obligation1,967 Long-term lease liability594 Total long-term liabilities9,914 Total liabilities assumed19,996 Total identifiable net assets1,426,412 Goodwill359,847 Net assets acquired$1,786,259 

F-17

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

The following methodologies were used to estimate the fair value of the acquired assets and liabilities:•Cash, prepaid expenses, accounts payable, and accrued liabilities were recorded at their historical book values as that approximates fair value.•Developed technology was valued using a multi-period excess earnings method income approach. Leases were valued using the yield capitalization method income approach. The income approach is a general way of developing a value indication for an asset using one or more methods that convert anticipated economic benefits into a present single amount.•Personal property was valued using the indirect cost method. The cost approach is a general way of estimating the value of an asset by determining the amount of money required to replace the asset with another asset having equivalent utility.The purchase price allocation was finalized during the second quarter of 2024. Refer to Note 7 — Goodwill and Intangible Assets for additional information.

Unaudited Pro-Form