NET Power Inc.NPWR

NET Power Inc. Earnings Per Share Disclosure

10-KFiled Mar 10, 20252 min read
NOTE 13 — Loss per Share/Unit
Basic loss per share attributable to shareholders is calculated by dividing net loss attributable to shareholders by the weighted-average number of shares outstanding during the period. Diluted loss per share attributable to shareholders includes the effect of potentially dilutive common shares outstanding.
Successor Period
The following table sets forth the computation of the Company’s basic and diluted earnings (loss) per share for the following periods:
Successor
Period From
June 8, 2023
Year Endedthrough
$ in thousands, except for share and per share data December 31, 2024December 31, 2023
Numerator
Net loss after income tax$(164,644)$(141,816)
Net loss attributable to Net Power Inc.$(49,191)$(43,056)
Denominator
  Weighted-average number shares outstanding, basic and diluted73,396,761 69,755,848
 Loss per share attributable to shareholders, basic and diluted$(0.67)$(0.62)
Based on the amounts outstanding at December 31, 2024 and December 31, 2023, the Company excluded the following financial instruments from the computation of diluted loss per share because their inclusion would be anti-dilutive:
December 31,
Anti-Dilutive Instrument20242023
Public Warrants8,620,5358,622,235
Private Placement Warrants10,900,00010,900,000
Earnout Shares328,925328,925
BHES Bonus Shares2,068,4162,068,416
Unvested Class A OpCo Units241,670848,415
Vested Class A OpCo Units141,470,217141,304,030
Unvested RSUs874,328443,221
Unvested PSUs127,710—
Make-Whole Awards1,257,467—
Stock Options2,459,893—
Total168,349,161164,515,242
    
In the Successor Period, 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 year ended December 31, 2024.
Predecessor Period
For the period from January 1, 2023 through June 7, 2023 (Predecessor), the Company excluded 119,076 unvested profit interests from the computation of diluted net loss per unit because their inclusion would be anti-dilutive.
The following table sets forth the computation of the Company’s basic and diluted net loss per unit for the following period:
Predecessor
Period From
January 1, 2023
through
$ in thousands, except for share and per share dataJune 7, 2023
Numerator
Net loss after income tax$(34,176)
Net loss attributable to membership interest holders$(34,176)
Denominator
Weighted-average number membership interests outstanding, basic and diluted3,766,871 
Net loss per unit attributable to membership interest holders, basic and diluted$(9.07)

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

Other Available Disclosures

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