Core Insights - 374Water Inc. is deploying its AirSCWO technology in a project with the Colorado School of Mines and the Department of Defense (DoD) to evaluate solutions for destroying PFAS contaminated wastes [1][2] - The project is part of the Environmental Security Technology Certification Program (ESTCP), which aims to enhance military readiness and improve defense infrastructure through innovative technologies [2] - 374Water's AirSCWO technology has demonstrated waste destruction results exceeding 99.99% for various organic waste streams, including PFAS [4] Company Overview - 374Water Inc. is a global leader in organic waste destruction technology, focusing on municipal, federal, and industrial markets [1][7] - The company's AirSCWO technology efficiently destroys a wide range of organic wastes, producing safe dischargeable water, mineral effluent, and recoverable heat energy [7] - 374Water aims to support clients in meeting discharge requirements, reducing disposal costs, and minimizing litigation risks [7] Industry Context - PFAS, known as "forever chemicals," are hazardous substances that pose significant risks to human health and the environment, leading to stringent regulations [5] - The urgency for PFAS remediation is highlighted by the U.S. National Defense Authorization Act, which mandates the transition to fluorine-free firefighting foams at DoD installations by October 2024 [5] - The DoD initiative emphasizes the growing demand for reliable and scalable PFAS destruction technologies [5]

Core Viewpoint - 374Water Inc. is making significant progress in the deployment of its AirSCWO 6 System to the Orange County Sanitation District, which aims to enhance waste management practices and potentially eliminate the need for offsite biosolids reuse [1][2][5]. Group 1: System Development and Deployment - The manufacturing of the AirSCWO 6 system was completed in June 2025, with delays attributed to temporary supply chain disruptions [7]. - The system will undergo a Factory Acceptance Test (FAT) starting in July 2025, expected to last 30-60 days, to ensure compliance with performance specifications [7]. - The deployment plan includes a projected revenue of approximately $1.3 million by the end of the year [4]. Group 2: Operational Plan and Future Expansion - The initial six months of operation will be managed by 374Water engineers, who will conduct a Controlled Performance Study to evaluate the system's performance under commercial conditions [6]. - After the initial period, OC San staff will take over operations, with continued support from 374Water engineers for an additional six months [6]. - Following one year of operations, OC San will assess the results to consider upgrading to the larger AirSCWO 30 system, capable of processing up to 30 wet tons of biosolids per day [6]. Group 3: Strategic Partnership - The partnership with OC San reflects a commitment to innovative and sustainable resource practices, paving the way for broader adoption of advanced waste destruction technologies [8]. - OC San processes over 180 million gallons of wastewater daily, serving over 2.6 million people, and currently transports over 525 wet tons of Class B biosolids for agricultural reuse [2].

374Water (SCWO) Q1 2025 Earnings Call May 15, 2025 04:30 PM ET Company Participants Christopher Tyson - Executive Vice President & PartnerChris Gannon - CEO & PresidentRussell Kline - CFO Conference Call Participants Michael Mathison - Analyst Operator Greetings. Thank you for standing by, and welcome to the three seventy four Water First Quarter twenty twenty five Financial Results Conference Call. At this time, all participants are in a listen only mode. A question and answer session will follow the forma ...

374Water (SCWO) Q1 2025 Earnings Call May 15, 2025 04:30 PM ET Speaker0 Greetings. Thank you for standing by, and welcome to the three seventy four Water First Quarter twenty twenty five Financial Results Conference Call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. At this time, I would like to hand the call to Chris Tyson, Executive Vice President of MZ Group. Please go ahead. ...

Clean & Sustainable Destruction of Organic Waste First Quarter 2025 Strategic and Commercial Update and Financial Results Conference Call NASDAQ: SCWO Investor Presentation May 15, 2025 ©2025 374Water Inc. All Rights Reserved. This document and the information set forth herein are the property of 374Water. Cautionary Statement Regarding Forward-Looking Statements This presentation and various remarks we make during this presentation contain "forward-looking statements" of 374Water Inc. ("374Water," "the Com ...

PART I: FINANCIAL INFORMATION [Condensed Consolidated Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) The company reported a net loss of **$3.7 million** for Q1 2025, with assets decreasing to **$16.0 million**, indicating substantial doubt about its going concern [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to **$16.0 million** by March 31, 2025, from **$19.2 million** at year-end 2024, primarily due to reduced cash and equity Condensed Consolidated Balance Sheet Highlights (in USD) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $6,883,845 | $10,651,644 | | Total Current Assets | $11,582,523 | $14,887,807 | | Total Assets | $15,978,163 | $19,183,833 | | **Liabilities & Equity** | | | | Total Current Liabilities | $2,848,223 | $3,127,676 | | Total Liabilities | $3,401,433 | $3,709,052 | | Total Stockholders' Equity | $12,576,730 | $15,474,781 | | Total Liabilities and Stockholders' Equity | $15,978,163 | $19,183,833 | [Condensed Consolidated Statements of Operations](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Revenues increased to **$543,100** in Q1 2025, but net loss widened to **$3.7 million** due to significantly higher operating expenses Statement of Operations Summary (in USD) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Revenues | $543,100 | $315,278 | | Gross margin (deficit) | $138,283 | $(302,020) | | Total Operating Expenses | $3,923,793 | $1,899,183 | | Loss from Operations | $(3,785,510) | $(2,201,203) | | Net Loss | $(3,698,414) | $(2,024,465) | | Net Loss per Share | $(0.03) | $(0.02) | [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operations increased to **$3.5 million** in Q1 2025, resulting in a period-end cash balance of **$6.9 million** Cash Flow Summary (in USD) | Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net Cash Used In Operating Activities | $(3,494,477) | $(2,508,653) | | Net Cash Used In Investing Activities | $(297,322) | $(590) | | Net Cash Provided by Financing Activities | $24,000 | $0 | | **Net Decrease in Cash** | **$(3,767,799)** | **$(2,509,243)** | | **Cash at End of Period** | **$6,883,845** | **$7,936,161** | [Notes to Unaudited Condensed Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the AirSCWO business, substantial doubt about going concern due to recurring losses, customer concentration, and a legal settlement - The company's AirSCWO system is designed to destroy organic wastes, including PFAS, and convert them into recoverable resources like water, minerals, and energy[22](index=22&type=chunk) - Recurring net losses (**$3.7M** in Q1 2025) and significant cash used in operations (**$3.5M**) raise substantial doubt about the company's ability to continue as a going concern, necessitating additional capital for the next twelve months[62](index=62&type=chunk)[63](index=63&type=chunk) - Two customers accounted for approximately **94%** of total revenues for the three months ended March 31, 2025[37](index=37&type=chunk) - The company accrued **$335,000** for a legal settlement with its former CEO, which was officially settled on April 2, 2025[96](index=96&type=chunk) - Subsequent to the quarter's end, the company appointed Stephen Jones to its Board of Directors and approved a significant equity compensation grant to its Chief Technology Officer[100](index=100&type=chunk)[101](index=101&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=16&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a **72%** revenue increase to **$543,100**, but net loss widened to **$3.7 million** due to a **107%** rise in operating expenses Results of Operations Comparison (in USD) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Revenues | $543,100 | $315,278 | $227,822 | 72% | | Gross margin | $138,283 | $(302,020) | $440,303 | (146)% | | Total operating expenses | $3,923,793 | $1,899,183 | $2,024,610 | 107% | | Net loss | $(3,698,414) | $(2,024,465) | $(1,673,949) | 83% | - Compensation expenses rose **112%** to **$1.7 million** due to increased headcount and a **$538,000** increase in stock-based compensation[112](index=112&type=chunk) - Professional fees increased **205%** to **$771,901**, mainly from legal fees for a litigation settlement and recruiting fees[113](index=113&type=chunk) - General and administrative expenses grew **193%** to **$942,440**, driven by costs for a new manufacturing facility, higher depreciation, and increased travel and investor relations expenses[111](index=111&type=chunk) - The company's plan for 2025 includes completing the City of Orlando demonstration, deploying systems for the Department of Defense and Orange County Sanitation District, scaling manufacturing, and launching Waste Destruction Services (WDS) hubs[108](index=108&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=19&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company states that this item is not applicable - This section is not applicable for the company[125](index=125&type=chunk) [Controls and Procedures](index=19&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were deemed ineffective due to a material weakness from insufficient finance and accounting resources, with a remediation plan underway - The company's disclosure controls and procedures were deemed not effective as of the end of the reporting period[126](index=126&type=chunk) - The ineffectiveness is due to a material weakness in internal controls caused by a lack of full-time resources in the finance and accounting department[126](index=126&type=chunk)[129](index=129&type=chunk) - A remediation plan is being established to hire additional full-time personnel to enhance financial and accounting resources[129](index=129&type=chunk) PART II: OTHER INFORMATION [Legal Proceedings](index=20&type=section&id=Item%201.%20Legal%20Proceedings) Information regarding a legal settlement for **$335,000** with the former CEO is incorporated by reference from Note 8 - Information regarding legal proceedings is incorporated by reference from the 'Legal Settlement' section in Note 8 of the financial statements[133](index=133&type=chunk) [Risk Factors](index=20&type=section&id=Item%201A.%20Risk%20Factors) The company outlines significant risks to its business, financial condition, and stock price, including unproven technology, capital needs, and potential Nasdaq delisting [Risks Related to Business and Economic Conditions](index=22&type=section&id=Risks%20Related%20to%20Our%20Business%20and%20General%20Economic%20Conditions) Key business risks include unproven commercial viability of AirSCWO technology, limited operating history, and identified material weaknesses in internal controls - A sustainable market for the company's products may never develop, and the technology's commercial viability is unproven as it has not been utilized on a full-scale commercial basis[141](index=141&type=chunk)[142](index=142&type=chunk) - The company has a limited operating history with no material revenues, making evaluation of its business difficult[143](index=143&type=chunk) - Material weaknesses have been identified in the company's internal control over financial reporting due to personnel limitations[156](index=156&type=chunk)[159](index=159&type=chunk) [Risks Related to Financial Position and Capital Requirements](index=28&type=section&id=Risks%20Related%20to%20Our%20Financial%20Position%20and%20Capital%20Requirements) Recurring losses and negative cash flows raise substantial doubt about the company's going concern ability, necessitating additional financing which may cause dilution - The company does not generate sufficient revenue and will require additional capital to continue as a going concern, as current cash resources are insufficient for the next twelve months[196](index=196&type=chunk)[197](index=197&type=chunk) - The company has inadequate capital and needs substantial additional funds to execute its business plan; future financing may not be available or could be on unfavorable terms, leading to potential dilution[201](index=201&type=chunk)[202](index=202&type=chunk)[205](index=205&type=chunk) [Risks Related to Intellectual Property](index=30&type=section&id=Risks%20Related%20to%20Our%20Intellectual%20Property) The company faces risks in protecting its intellectual property, potential infringement claims, and reliance on third-party licensed technologies - The company may have difficulty protecting its intellectual property and could incur substantial costs in patent litigation[207](index=207&type=chunk)[208](index=208&type=chunk) - The company may become subject to claims of infringing on the intellectual property of others, which could lead to costly litigation and prohibit product development[214](index=214&type=chunk)[216](index=216&type=chunk) - The company depends on technologies licensed from third parties, and any loss of these rights could prevent the sale of its products[221](index=221&type=chunk)[222](index=222&type=chunk) [Risks Related to Reliance on Third Parties](index=32&type=section&id=Risks%20Related%20to%20our%20Reliance%20on%20Third%20Parties) The company is highly dependent on third-party suppliers and manufacturers, facing risks of component shortages, delays, and price changes without long-term contracts - The company's products contain materials from numerous global suppliers, exposing it to potential component shortages, delays, and price changes[225](index=225&type=chunk)[226](index=226&type=chunk) - The company is dependent on third-party manufacturers and suppliers; if they are unable or unwilling to provide components, the company's ability to sell its products could be impaired[228](index=228&type=chunk)[229](index=229&type=chunk) [Risks Related to Common Stock and Capital Structure](index=33&type=section&id=Risks%20Related%20to%20our%20Common%20Stock%20and%20Capital%20Structure) Common stock volatility and potential Nasdaq delisting due to non-compliance with minimum bid price and independent director requirements pose significant risks - The company may not regain compliance with Nasdaq's continued listing requirements, including the **$1.00** minimum bid price rule, and faces a potential delisting[253](index=253&type=chunk)[254](index=254&type=chunk)[256](index=256&type=chunk) - The company also fails to comply with Nasdaq's independent director requirement and is in a cure period to regain compliance[257](index=257&type=chunk)[259](index=259&type=chunk) - The market price of the common stock has been highly volatile and has declined significantly, partly due to large sales by a single significant stockholder[231](index=231&type=chunk)[247](index=247&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=36&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - None[261](index=261&type=chunk) [Defaults Upon Senior Securities](index=36&type=section&id=Item%203.%20Defaults%20upon%20Senior%20Securities) The company reported no defaults upon senior securities - None[261](index=261&type=chunk) [Mine Safety Disclosures](index=36&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) The company states that this item is not applicable - Not applicable[262](index=262&type=chunk) [Other Information](index=36&type=section&id=Item%205.%20Other%20Information) No other material information was reported, and no Rule 10b5-1 trading arrangements were adopted, modified, or terminated by directors or officers - During the fiscal quarter ended March 31, 2025, no directors or officers informed the company of the adoption, modification, or termination of a Rule 10b5-1 trading arrangement[264](index=264&type=chunk) [Exhibits](index=36&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with Form 10-Q, including the CTO's employment agreement, CEO/CFO certifications, and XBRL data - Exhibits filed include the employment agreement for Rajesh Melkote (CTO), CEO/CFO certifications (SOX 302 & 906), and XBRL files[266](index=266&type=chunk)

EX-99.1 2 scwo_ex991.htm PRESS RELEASE EXHIBIT 99.1 374Water Reports First Quarter 2025 Financial Results DURHAM, NC – May 15, 2025 - 374Water Inc. (NASDAQ: SCWO) ("374Water") (the "Company"), a global leader in waste destruction technology for the municipal, federal, and industrial markets, today reported its financial and operational results for the first quarter ended March 31, 2025. "The first quarter of 2025 was focused on our robust, actionable backlog and pipeline and accelerating our proprietary Air ...

Core Insights - 374Water Inc. reported its financial and operational results for Q1 2025, focusing on the commercial rollout of its AirSCWO technology and expanding its waste destruction services [1][2][4] Financial Performance - Revenue for Q1 2025 was $0.5 million, an increase from $0.3 million in the prior year, primarily driven by equipment manufacturing services and full-scale demonstrations [12][20] - Total operating expenses rose 106% to $3.9 million compared to $1.9 million in the previous year, attributed to increased general and administrative expenses, professional fees, and compensation [12][20] - The net loss for Q1 2025 was $3.7 million, compared to a net loss of $2.0 million in the prior year [12][20] Operational Developments - The company is advancing its AirSCWO technology, with significant progress in ruggedizing and optimizing the system, and plans for multiple deployments throughout 2025 [5][6] - A contract was awarded by the State of North Carolina to destroy 1,000 gallons of AFFF containing PFAS, with potential for an additional 29,000 gallons in a subsequent phase [2][4] - The company has appointed new executives, including Raj Melkote as Chief Technology Officer and Stephen Jones to the Board of Directors, to enhance its commercial strategy [3][12] Market Context - The U.S. EPA's recent actions to combat PFAS contamination are expected to create strong demand for 374Water's AirSCWO platform, as companies seek to limit liability and comply with new regulations [4][6] - The company is establishing Waste Destruction Services operations at a partner facility, which will support its commercial rollout [12][6] Upcoming Initiatives - The company anticipates completing various waste destruction demonstrations and launching its AS1 and AS6 units, with plans to accept third-party waste streams [5][12] - Key upcoming events include the completion of a 90-day biosolids destruction demonstration at Orlando's facility and the anticipated Department of Defense project in Detroit [12][6]

Core Viewpoint - 374Water Inc. supports the EPA's actions to combat PFAS contamination, which is expected to create demand for its AirSCWO technology designed to destroy organic wastes, including PFAS [1][3][4] Company Overview - 374Water Inc. is a global leader in organic waste destruction technology, focusing on municipal, federal, and industrial markets [1][6] - The company's AirSCWO technology efficiently destroys a wide range of organic wastes, producing safe dischargeable water, mineral effluent, and recoverable heat energy [6] Industry Context - The EPA's strategy aims to prevent PFAS from entering drinking water systems and hold polluters accountable, emphasizing the federal government's commitment to public health [2][5] - The planned actions by the EPA include implementing a PFAS testing strategy, providing annual updates to PFAS destruction guidance, and establishing a "polluter pays" framework [8]

DURHAM, N.C., May 01, 2025 (GLOBE NEWSWIRE) -- 374Water Inc. (NASDAQ: SCWO) ("374Water") (the "Company"), a global leader in waste destruction technology for the municipal, federal, and industrial markets, will hold a conference call on Thursday, May 15, 2025 at 4:30 p.m. Eastern time to discuss its results for the first quarter ended March 31, 2025. A press release detailing these results will be issued prior to the call. 374Water CEO Chris Gannon and CFO Russell Kline will host the conference call, follow ...