Financial Data and Key Metrics Changes - For the nine months of 2024, the company generated revenue of $434,000, compared to approximately $864,000 for the same period in 2023, indicating a decline in revenue [79] - Total operating expenses increased from $5.2 million in the first nine months of 2023 to $7.8 million in the first nine months of 2024, driven by increases in general and administrative expenses, professional fees, and research and development expenses [81][82] - As of September 30, 2024, the company reported a working capital of $4.5 million and no outstanding debt obligations [83] Business Line Data and Key Metrics Changes - The company has made substantial improvements to its AirSCWO system, advancing technology towards commercialization across multiple waste streams [18][20] - The deployment of the AirSCWO unit to the City of Orlando for waste destruction demonstrations is expected to generate revenue in Q4 2024 [80] Market Data and Key Metrics Changes - The company estimates a global market opportunity for its AirSCWO waste destruction technology to be in the hundreds of billions of dollars, with a focus on cultivating the U.S. market [39] - The municipal backlog and pipeline stands north of $600 million, while the federal backlog and pipeline exceeds $900 million, and the industrial backlog and pipeline exceeds $300 million [51][55][65] Company Strategy and Development Direction - The company aims to deliver scalable solutions for organic waste destruction across various sectors, including municipal, federal, industrial, and TSDF [9][10] - The company plans to expand its engineering, field, and manufacturing teams to accelerate technology commercialization and deployment [72] - The establishment of a dedicated manufacturing and engineering facility is intended to enhance production capacity and support ongoing innovation [74] Management's Comments on Operating Environment and Future Outlook - Management believes that the regulatory landscape regarding PFAS will not materially impact the company's opportunities, as public awareness and legal actions continue to drive demand for waste destruction solutions [84] - The company is confident in its ability to pursue near-term revenue opportunities across various waste streams, including AFFF destruction [31][50] Other Important Information - The company is actively raising capital to expand its operations and has a backlog and pipeline of $1.8 billion in near-term capital sale and destruction-as-a-service revenue opportunities [70] - The company is constructing multiple AS1 and AS6 units for on-site demonstrations and AFFF destruction revenue generation [74] Q&A Session Summary Question: Regulatory landscape impact on PFAS regulations - Management believes that even if the Trump administration curtails the EPA's ability to regulate PFAS, it will not materially impact the company's opportunity set due to ongoing lawsuits and public awareness [84] Question: Changes in work with the DoD under new leadership - Management does not foresee any changes in their work with the DoD, as they maintain constant contact and are engaged in various federal government demonstrations [85] Question: Logistics and operations at the Orlando facility - The Orlando facility is fully operational, focusing on processing biosolids and conducting customer demonstrations, with extensive sampling to evaluate the efficacy of PFAS destruction [87][90]

Revenue Performance - For Q3 2024, 374Water generated revenue of approximately $81,000, a 575% increase compared to $12,000 in Q3 2023[3] - For the nine-month period ended September 30, 2024, revenue was approximately $434,000, reflecting a 50% decrease from $864,000 in the same period of 2023[3] - Revenues for the three months ended September 30, 2024, were $81,490, compared to $12,290 for the same period in 2023, representing a significant increase[18] Operating Expenses - Total operating expenses increased from $5.2 million in the first nine months of 2023 to $7.7 million in the same period of 2024[5] - General and administrative expenses increased by approximately $730,000 due to efforts to establish the executive team and relocate the manufacturing facility[6] - Total operating expenses for the nine months ended September 30, 2024, were $7,692,386, up from $5,249,593 in the same period of 2023, indicating a 46.5% increase[18] Net Loss and Financial Position - The accumulated deficit as of September 30, 2024, was $23.6 million, up from $15.95 million at the end of 2023[17] - Net loss for the nine months ended September 30, 2024, was $(7,658,602), compared to $(5,022,351) for the same period in 2023, reflecting a 52.5% increase in losses[18] - The company reported a net loss per share of $(0.06) for the nine months ended September 30, 2024, compared to $(0.04) for the same period in 2023[18] Cash Flow - Cash used in operating activities for the nine months ended September 30, 2024, was $(7,497,734), compared to $(6,699,629) for the same period in 2023[19] - Cash at the end of the period on September 30, 2024, was $1,960,375, down from $12,802,091 at the end of the same period in 2023[19] - The company had a net cash used in investing activities of $(999,207) for the nine months ended September 30, 2024, compared to a net cash provided of $1,905,894 for the same period in 2023[19] Research and Development - The company expanded its lab facilities to conduct advanced research on the destruction capabilities of its AirSCWO technology[12] - Research and development expenses for the nine months ended September 30, 2024, totaled $1,526,294, compared to $945,443 for the same period in 2023, marking a 61.5% increase[18] Technology and Operations - The AirSCWO system is now fully operational in Orlando, marking the beginning of commercial biosolids processing[11] - Testing confirmed that over 99.99% of PFAS compounds in AFFF were destroyed within seconds using the AirSCWO technology[13] Financing Activities - The board approved a registered offering for the sale of units consisting of common stock and warrants, expected to close before year-end 2024[8] Professional Fees - Professional fees for the nine months ended September 30, 2024, were $1,367,702, significantly higher than $309,398 for the same period in 2023, indicating a 341.5% increase[18]

Financial Performance - For Q2 2024, the company generated revenue of approximately $37,000, a 26% decrease from approximately $50,000 in Q2 2023[3] - For the first half of 2024, revenue was approximately $352,000, down 59% from approximately $851,000 in the same period of 2023[3] - The net loss for the six months ended June 30, 2024, was $4,956,785, compared to a net loss of $3,290,920 for the same period in 2023, representing an increase of approximately 50.6%[14] - The company reported a net loss per share of $0.04 for the six months ended June 30, 2024, compared to a loss of $0.03 in the same period of 2023[14] - Total other income decreased to $86,780 from $118,520, a decline of about 26.8% year-over-year[13] - The total comprehensive loss for the period was $2,932,320, compared to a comprehensive loss of $3,285,482 in the previous year, showing an improvement of about 10.7%[13] Operating Expenses - Total operating expenses increased from $3.5 million in H1 2023 to $4.9 million in H1 2024, driven by increases in R&D, general and administrative expenses, and professional fees[4] - Total operating expenses for the current period were $3,012,378, significantly higher than $1,773,703 in the previous year, indicating an increase of about 69.8%[13] - Research and development expenses amounted to $566,568, up from $271,964, reflecting a growth of approximately 108.2% year-over-year[13] - The company incurred professional fees of $615,987, a significant increase from $92,285, marking a rise of approximately 570.5%[13] Assets and Liabilities - The company has working capital of $7.2 million as of June 30, 2024, with no outstanding debt obligations[5] - Total assets decreased from $16.1 million in 2023 to $12.2 million in 2024[11] - The accumulated deficit increased from $(15.95) million in 2023 to $(20.91) million in 2024[11] - The company had a cash balance of $5,083,482 at the end of the period, down from $10,445,404 at the beginning of the period, indicating a decrease of approximately 51.3%[15] - Cash used in operating activities was $4,934,044 for the six months ended June 30, 2024, slightly higher than $4,877,039 in the prior year[14] Technology and Market Potential - The AirSCWO system was successfully deployed to Orlando's Iron Bridge Water Pollution Control Facility, marking a significant milestone in the company's partnership with the city[6] - The company completed pharmaceutical waste testing using AirSCWO technology, demonstrating exceptional efficacy in destroying pharmaceutical contaminants[7] - A comprehensive white paper was released detailing the potential of AirSCWO technology to address lithium-ion battery waste, highlighting its sustainable processing capabilities[7] - The company estimates the global market opportunity for its waste destruction technology to be in the hundreds of billions of dollars[2]

Financial Data and Key Metrics Changes - The company generated revenue of $352,000 in the first half of 2024, a decrease from $851,000 in the same period of 2023, reflecting a decline of approximately 59% [28] - Total operating expenses increased from $3.5 million in the first half of 2023 to $4.9 million in the first half of 2024, driven by increased research and development expenses and general and administrative expenses [29][30] - As of June 30, 2024, the company reported working capital of $7.2 million, with no outstanding debt obligations [30] Business Line Data and Key Metrics Changes - The company focused on deploying its AirSCWO unit to the City of Orlando for waste destruction demonstrations, which is a key operational milestone [28][29] - The company is building additional AirSCWO units to increase the pace of waste destruction demonstrations and accelerate technology development efforts [18][19] Market Data and Key Metrics Changes - The company has a robust pipeline of municipal, federal, and industrial opportunities worth approximately $1.6 billion, indicating strong market demand for its technology [9] - The U.S. municipal wastewater and drinking water management market is valued at $120 billion, with over 16,000 wastewater plants treating 34 billion gallons of wastewater daily [11] - The U.S. federal waste management market is valued at $15 billion, with significant cleanup costs associated with DoD sites estimated at $250 billion [12] Company Strategy and Development Direction - The company aims to commercialize its AirSCWO technology and expand its market opportunities, focusing initially on the U.S. market before considering international engagement [9][10] - The company is investing in personnel and expanding its engineering, manufacturing, and laboratory facilities to support technology development and product commercialization [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for their technology, particularly in light of increasing regulatory scrutiny on waste management practices [10][46] - The company is evaluating its cash position and exploring additional revenue streams, including large-scale demonstrations and potential financing options [49][50] Other Important Information - The company is actively recruiting for key positions, including a Chief Technology Officer, to enhance its operational capabilities [25] - The company has relocated its core manufacturing operations to a larger facility near Orlando to accommodate increased manufacturing needs [4][26] Q&A Session Summary Question: What factors influenced the decision to deploy the first system in Orlando? - The relationship with the facility in Orlando allowed for a broader range of tests beyond just biosolids, making it a more optimal choice for deployment [32][33] Question: How will the testing of biosolids and PFAS materials be managed? - The tests will be conducted separately, allowing for easy changeovers between different waste streams [34] Question: Can you describe the service revenue generated in the second quarter? - Service revenue is primarily related to laboratory tests where customers pay to understand the efficacy of the AirSCWO system in destroying their waste streams [35][36] Question: Who will cover the operating costs of the unit in Orlando? - The company will cover the operating costs of the unit deployed in Orlando [37] Question: What is the status of interest in larger units from California and Orlando? - There is direct interest in the AS30 units, which are already funded, and discussions are ongoing for the larger AS100 units [39] Question: What is the timeline for the demonstration phases in Orlando and Orange County? - The demonstration phase in Orlando is set for seven months, while the Orange County demonstration will last a total of 12 months [43][44] Question: How does the company view the impact of potential changes in EPA regulations on PFAS? - Management believes that regardless of potential changes in administration, the demand for technology to address PFAS contaminants will remain strong [46] Question: What steps is the company taking to address cash burn concerns? - The company is focused on increasing revenue through various tests and is evaluating both debt and equity financing options [49][50]

Financial Performance - Revenue for the three months ended June 30, 2024, was $36,821, a decrease of 26% compared to $49,863 for the same period in 2023[97] - Net loss for the three months ended June 30, 2024, increased to $2,932,320, up 78% from $1,650,577 in the same period of 2023[100] - The company generated revenue of $352,099 for the six months ended June 30, 2024, a 59% decrease from $851,321 in the same period of 2023[101] - Net loss for the six months ended June 30, 2024, was $4,956,785, reflecting a 51% increase from $3,290,920 in the same period of 2023[101] - Net loss increased to $4,956,785 for the six months ending June 30, 2024, compared to $3,290,920 in the same period of 2023, attributed to higher expenses[106] Operating Expenses - Total operating expenses for the three months ended June 30, 2024, rose to $3,012,378, a 70% increase from $1,773,703 in the same period of 2023[97] - General and administrative expenses for the six months ended June 30, 2024, increased to $1,511,725, up 20% from $1,261,995 in the same period of 2023[102] - Professional fees for the three months ended June 30, 2024, surged to $615,987, a 567% increase from $92,285 in the same period of 2023[100] - Compensation and related expenses decreased slightly to $1,429,429 for the six months ending June 30, 2024, compared to $1,451,881 in the same period of 2023, primarily due to a decrease in headcount[103] - Research and development expenses for the three months ended June 30, 2024, increased by 108% to $566,568 from $271,964 in the same period of 2023[99] - Research and development expenses increased to $1,101,715 for the six months ending June 30, 2024, compared to $627,869 in the same period of 2023, driven by increased engineering expenses[104] Cash Flow and Financing - Cash used in operating activities was $4,934,044 for the six months ending June 30, 2024, an increase of $57,005 compared to $4,877,039 in the same period of 2023[112] - Cash used in investing activities was $402,220 for the six months ending June 30, 2024, compared to $1,950,504 cash provided by financing activities in the same period of 2023[112] - The company raised approximately $0 in net proceeds through ATM offerings during the six months ended June 30, 2024, compared to $13.4 million in the same period of 2023[115] Future Outlook - Substantial doubt exists regarding the company's ability to continue as a going concern, necessitating additional debt or equity financing[108] - The company expects to incur continuing losses and negative cash flows from operations for the foreseeable future[108] - The company is evaluating strategies to obtain required additional funding for future operations[115] Strategic Focus - The company is focused on deploying its AirSCWO system in Orlando for demonstration purposes, targeting biosolids waste treatment and PFAS destruction[93] - The company continues to develop its proprietary AirSCWO technology aimed at efficient waste treatment and energy recovery[91] Working Capital - Working capital as of June 30, 2024, was $7,273,354, with an accumulated deficit of $20,910,289[107]

374Water Inc. (NASDAQ:SCWO) Q1 2024 Earnings Conference Call May 17, 2024 1:00 PM ET Company Participants Heather Crowell - IR Chris Gannon - President and CEO Adrienne Anderson - CFO Conference Call Participants Operator Greetings and welcome to the 374Water First Quarter 2024 Earnings Call. At this time, all participants are in a listen-only mode. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Heather Crowell, Investor Relations. Tha ...

374Water Releases First Quarter 2024 Results and Provides Business Update New CEO Chris Gannon unveils Product Development, Commercialization and Go-to-Market Objectives DURHAM, NC, May 15, 2024 374Water Inc. (Nasdaq: SCWO), a global leader in cutting-edge, sustainable waste management technologies, today provides a business update and reports its financial results for the first quarter ended March 31, 2024. "In just under a month, we have hit the ground running developing a strategic plan to unlock the val ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 Form 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period ended March 31, 2024 ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission file number: 000-27866 374WATER INC. (Exact name of Registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) Delaware 88-0271109 (IRS Employer Iden ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2023 Commission File No. 000-27866 374WATER INC. (Exact name of Registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) Delaware 88-0271109 (I.R.S. Employer Identification No.) 701 W Main Street, Suite 410, Durham, NC 27701 (Address of principal executive off ...

EX-99.1 2 scwo_ex991.htm PRESS RELEASE DURHAM, NC / ACCESSWIRE / March 29, 2024 / 374Water Inc. (NASDAQ:SCWO), a global social impact and cleantech company offering a revolutionary waste management solution for the environment, today provides a business update and reports its financial results for the fourth quarter and year ended December 31, 2023. "In the fourth quarter, we've made significant progress with our AirSCWO 6 system, moving closer to its deployment to Orange County Sanitation District which we ...