Results Underscore the Robustness of AirSCWO Technology in Eliminating PFAS and Transforming Complex Waste Streams DURHAM, N.C., March 18, 2025 (GLOBE NEWSWIRE) -- 374Water Inc. (NASDAQ: SCWO) ("374Water") (the "Company"), a global leader in waste destruction technology for the municipal, federal, and industrial markets, today announced the successful treatment and destruction of Light Non-Aqueous Phase Liquid (LNAPL) impacted with Per- and Polyfluoroalkyl Substances (PFAS) using the Company's proprietary A ...

R&D and Engineering Executive to Drive Innovation and Growth DURHAM, N.C., March 13, 2025 (GLOBE NEWSWIRE) -- 374Water Inc. (NASDAQ: SCWO) ("374Water") (the "Company"), a global leader in waste destruction technology for the municipal, federal, and industrial markets, today announced the appointment of Raj Melkote as its new Chief Technology Officer (“CTO”). Raj Melkote brings over 30 years of experience as a Research & Development and Engineering executive with a track record of introducing and commerciali ...

Core Insights - 374Water Inc. has demonstrated its AirSCWO technology's capability to achieve 99.9999% destruction of PFAS in AFFF, positioning it as a scalable solution for waste management [1][3] - The article published in the NGWA Journals highlights the challenges of treating AFFF and emphasizes the need for effective destruction technologies [1][2] Company Overview - 374Water Inc. is a global leader in waste destruction technology, focusing on municipal, federal, and industrial markets [1][4] - The company's AirSCWO technology is designed to efficiently destroy a wide range of organic wastes, producing safe dischargeable water, mineral effluent, and recoverable heat energy [4][5] Industry Context - AFFF is widely used in firefighting across various sectors but contains PFAS, which are persistent environmental pollutants posing health risks [2] - Regulatory bodies like the U.S. Department of Defense and the European Union are enforcing stricter regulations, including a transition to fluorine-free foams by 2024 [2] Market Opportunity - The significant challenges associated with AFFF waste management present a growth opportunity for 374Water to expand its services [3] - The demand for sustainable and cost-effective waste destruction solutions is increasing, particularly in the U.S. DoD and civil aviation sectors [3]

Core Insights - 374Water Inc. has demonstrated its AirSCWO technology's capability to achieve 99.9999% destruction of PFAS in AFFF, positioning it as a scalable solution for waste management [1][3] - The article published in the NGWA Journals highlights the challenges of treating AFFF and emphasizes the need for effective destruction technologies [1][2] Company Overview - 374Water Inc. is a global leader in waste destruction technology, focusing on municipal, federal, and industrial markets [1][4] - The company's AirSCWO technology is designed to efficiently destroy a wide range of organic wastes, producing safe dischargeable water, mineral effluent, and recoverable heat energy [4][5] Industry Context - AFFF, which contains PFAS, is widely used in firefighting across various sectors but poses significant environmental and health risks due to the persistence of PFAS [2][3] - Regulatory bodies like the U.S. Department of Defense and the European Union are enforcing stricter regulations, including a transition to fluorine-free firefighting foams by 2024 [2][3] Market Opportunity - The growing demand for efficient and sustainable waste destruction solutions presents a significant opportunity for 374Water to expand its services [3] - The company aims to address the long-term liabilities associated with traditional disposal methods by offering advanced PFAS destruction technologies [3]

Core Viewpoint - 374Water Inc. is advancing its AirSCWO technology deployment in partnership with Orange County Sanitation District, aiming to enhance waste management practices and potentially eliminate the need for offsite biosolids reuse [2][4][5] Group 1: Project Overview - The AirSCWO 6 system will be deployed at OC San's Plant No. 1, which processes over 180 million gallons of wastewater daily for more than 2.6 million people [2][5] - The project is expected to generate approximately $1.3 million in revenue during the second to fourth quarters of the year [4] - The manufacturing of the AirSCWO 6 system is scheduled for completion in March 2025, with factory acceptance testing to follow in May 2025 [7] Group 2: Operational Plan - 374Water engineers will manage the first six months of operations, conducting a Controlled Performance Study to evaluate the system's performance under commercial conditions [5] - After the initial six months, OC San staff will take over operations, with continued support from 374Water engineers for an additional six months [5] - Following one year of operations, OC San will assess the results to consider upgrading to the larger AirSCWO 30 system, which can handle 30 wet tons of biosolids per day [5] Group 3: Future Expansion - OC San plans to potentially install up to five AirSCWO 200 systems to manage solid waste from its Huntington Beach facility, indicating a long-term commitment to innovative waste management strategies [5][6] - This partnership highlights OC San's dedication to advancing wastewater treatment and resource recovery practices [6][8]

Core Viewpoint - 374Water Inc. is participating in a Department of Defense project to develop commercial-scale technology solutions for destroying PFAS contaminated wastes, leveraging its AirSCWO technology [1][4][5] Company Overview - 374Water Inc. (NASDAQ:SCWO) is a global leader in organic waste destruction technology, focusing on municipal, federal, and industrial markets [1][11] - The company's AirSCWO technology is designed to efficiently destroy a wide range of organic wastes, producing safe dischargeable water streams and recoverable heat energy [11] Industry Context - PFAS, known as "forever chemicals," are hazardous synthetic chemicals that pose significant risks to human health and the environment, leading to stringent regulations for their remediation [5][7] - The U.S. National Defense Authorization Act mandates the transition to fluorine-free firefighting foams at DoD installations by October 2024, highlighting the urgent need for effective PFAS destruction technologies [5][7] Project Details - The collaboration involves 374Water, Arcadis, and Clean Earth, with demonstrations of AirSCWO technology planned at Clean Earth's facility in Detroit, MI [4][6] - The project aims to provide treatment options for DoD installations impacted by PFAS, with a focus on commercial-scale applications [3][4] Technology Capabilities - AirSCWO technology has demonstrated the ability to destroy over 99.99% of PFAS compounds within seconds, transforming hazardous waste into clean water and mineral by-products [8][9] - The technology has been successfully applied to various waste streams, including Aqueous Film-Forming Foam, Granular Activated Carbon, and Landfill Leachate [6][8]

Core Viewpoint - 374Water Inc. has entered into a securities purchase agreement to raise approximately $12.2 million through a registered direct offering of common stock and warrants [1][2]. Group 1: Offering Details - The company will sell 9,783,496 shares of common stock and warrants to purchase 14,675,244 shares of common stock [1]. - The exercise price for the warrants is set at $1.125 per share, and they will expire five years from the initial exercise date [1]. - The purchase price for one share of common stock and 1.5 warrants is $1.25 [1]. Group 2: Financial Aspects - Gross proceeds from the offering are estimated to be approximately $12.2 million before deducting placement agent fees and other estimated expenses [2]. - The offering is expected to close on or about November 18, 2024, pending customary closing conditions [2]. Group 3: Legal and Regulatory Information - D. Boral Capital LLC is acting as the exclusive placement agent for the offering [3]. - The offering is conducted under a "shelf" registration statement filed with the SEC, which was declared effective on December 30, 2022 [4]. Group 4: Company Overview - 374Water Inc. is a global cleantech company focused on innovative solutions for wastewater treatment and waste management [6]. - The company's AirSCWO technology is designed to efficiently destroy and mineralize a wide range of organic wastes, producing safe dischargeable water streams and recoverable heat energy [6]. - 374Water aims to assist customers in meeting discharge requirements, reducing disposal costs, and minimizing litigation risks [6].

Financial Performance - Revenues for the three months ended September 30, 2024, increased to $81,490, a 563% increase from $12,290 in the same period of 2023[122] - For the nine months ended September 30, 2024, revenues decreased to $433,589, a 50% decline from $863,611 in the same period of 2023[130] - Net loss for the three months ended September 30, 2024, increased to $2,701,817, a 56% increase from $1,731,431 in the same period of 2023[128] - Net loss for the nine months ended September 30, 2024, increased to $7,658,602, a 52% increase from $5,022,351 in the same period of 2023[136] Expenses - Cost of revenues decreased to $42,404 for the three months ended September 30, 2024, down 76% from $178,680 in the same period of 2023[123] - Research and development expenses rose to $424,579 for the three months ended September 30, 2024, a 34% increase from $317,573 in the same period of 2023[127] - General and administrative expenses increased to $1,022,284 for the three months ended September 30, 2024, up 89% from $541,697 in the same period of 2023[124] - Total operating expenses for the nine months ended September 30, 2024, increased to $7,692,386, a 47% increase from $5,249,593 in the same period of 2023[130] - Professional fees surged to $499,010 for the three months ended September 30, 2024, a 325% increase from $117,543 in the same period of 2023[126] Cash Flow and Financing - For the nine months ended September 30, 2024, the company incurred a net loss of $7,658,602, with cash used in operations amounting to $7,497,734, an increase of $798,105 compared to the same period in 2023[144] - Cash used in investing activities for the nine months ended September 30, 2024 was $999,207, primarily due to an $861,597 increase in purchases of property and equipment[145] - The company received only $11,912 from financing activities for the nine months ended September 30, 2024, a significant decrease from $13,548,889 in the same period in 2023[146] - On November 11, 2024, the company's board approved a registered offering for the sale of units consisting of common stock and warrants, expected to close before year-end 2024[141] - The company has raised approximately $12,000 and $13,441,000 through ATM offerings during the nine months ended September 30, 2024, and year-end December 31, 2023, respectively[149] Future Outlook - The company anticipates continuing losses and negative cash flows from operations for the foreseeable future, indicating a need for additional financing[139] - Substantial doubt exists regarding the company's ability to continue as a going concern, necessitating additional debt or equity financing[138] - The company may face significant dilution of ownership for existing stockholders if additional financing is obtained at unfavorable terms[140] - The company is evaluating strategies to secure required additional funding for future operations[149] Operational Focus - The company is focused on commercializing its AirSCWO technology, with ongoing demonstrations in Orlando, Florida, targeting various waste streams including PFAS[120] - As of September 30, 2024, the company reported working capital of $4,484,164 and an accumulated deficit of $23,612,106[137]

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]