Financial Data and Key Metrics Changes - Revenue for Q2 2025 totaled $600,000, a significant increase from $37,000 in the prior year, reflecting a $560,000 increase primarily due to full-scale demonstration service revenues and treatability studies [31][32][33] - Total operating expenses increased by 45% to $4,400,000 compared to $3,000,000 in the prior year, driven by increased staffing and general administrative expenses [33] - Net loss for Q2 2025 was $4,600,000, compared to $2,900,000 in the prior year [33][34] Business Line Data and Key Metrics Changes - The company launched its waste destruction services business, achieving waste destruction results exceeding 99.99% for PFAS contaminants [8][10] - A contract with the University of North Carolina for AFFF destruction is valued at approximately $1,000,000, with potential for additional phases worth multimillions [9][58] - The company is pursuing multiple RFPs for waste destruction services from state and federal levels, indicating a growing market demand [10][46] Market Data and Key Metrics Changes - The company is targeting the $450 billion waste destruction and management market, which is increasingly demanding sustainable solutions [6] - The U.S. government has appropriated hundreds of millions of dollars for PFAS removal and destruction, providing a favorable market environment for the company's services [23][24] - The EPA's new actions against PFAS contamination are expected to create positive tailwinds for the company's technology [24] Company Strategy and Development Direction - The company aims to establish a network of 8 to 10 TSDF waste destruction service operations across North America over the next several years [26] - A flexible commercial model is being developed, including waste destruction services, capital sales, and lease options to meet diverse customer needs [7][22] - The company plans to manufacture and deploy more AS systems in 2026 to expand its mobile waste destruction service fleet [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving growth targets for 2025 and material revenue growth in 2026 and beyond, citing strong market demand and operational execution [7][35] - The leadership team is focused on fulfilling the company's mission and scaling the business to benefit shareholders, despite recent stock price concerns [38][39] - The company anticipates 2025 will be a breakout year as it moves towards growth and long-term market leadership [37] Other Important Information - Cash and cash equivalents as of June 30, 2025, were $2,100,000, down from $10,700,000 as of December 31, 2024, with working capital also decreasing [34] - The company is actively pursuing additional capital raising opportunities to fund growth initiatives [34] Q&A Session Summary Question: Can you provide more details on the North Carolina contract for AFFF destruction? - The initial contract is worth about $1,000,000, with potential for significantly higher future revenues as the state seeks to destroy large stockpiles of AFFF [46][47] Question: What is the timeline for rolling out multiple waste destruction facilities? - The company aims to establish 8 to 10 facilities across North America, with discussions ongoing with major TSDF players [48][49] Question: What are the next steps for the Colorado School of Mines DoD project? - The project went well, and the company expects to bid on large contracts based on the results from this and other federal projects [50][52] Question: What is the revenue target from the University of North Carolina contract? - The initial contract is valued at $400,000, with potential for multimillion-dollar follow-up phases [58] Question: When will the Crystal Clean facility be operational? - The company anticipates about four months to get the facility up and running once the definitive agreement is finalized [60] Question: How many sales professionals are currently on the team? - The company has a team of four direct business development sales professionals and one corporate development individual focused on TSDF [62]

NASDAQ: SCWO Investor Presentation August 12, 2025 ©2025 374Water Inc. All Rights Reserved. This document and the information set forth herein are the property of 374Water. Clean & Sustainable Destruction of Organic Waste Second Quarter 2025 Strategic and Commercial Update and Financial Results Conference Call 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 ...

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UNITED STATES SECURITIES AND EXCHANGECOMMISSION Washington D.C. 20549 Form 10-Q For the Quarterly Period ended June 30, 2025 ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 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 (IRS Employer Identifica ...

EX-99.1 2 scwo_ex991.htm PRESS RELEASE EXHIBIT 99.1 374Water Reports Second Quarter 2025 Financial Results Ongoing Deployments and Successful Waste Destruction Demonstrations Showcase AirSCWO Technology Across Municipal, Federal and Industrial Market Verticals DURHAM, NC – August 12, 2025 - 374Water Inc. (NASDAQ: SCWO) ("374Water" or 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 ...

Core Viewpoint - 374Water Inc. is experiencing strong momentum in its AirSCWO technology deployments, particularly in waste destruction projects, which are expected to drive future growth and operational success [2][6]. Operational Highlights - The company initiated a biosolids destruction project in Orlando, which is anticipated to expand in scope upon successful completion [2]. - Progress was made in manufacturing the AS6 System for deployment to Orange County Sanitation in the latter half of 2025 [2]. - An AS6 System was successfully delivered to Clean Earth's facility in Detroit as part of a Department of Defense project aimed at PFAS waste destruction [3]. - The company deployed its technology in a project at Colorado School of Mines, focusing on PFAS waste destruction solutions [4]. - The first phase of a biosolids destruction demonstration in Orlando was completed, achieving non-detectable PFAS levels in effluent [7]. Financial Summary - For Q2 2025, revenue reached $600,000, a significant increase from $37,000 in the same period last year, primarily driven by waste destruction services and equipment manufacturing [9]. - Operating expenses rose by 45% to $4.4 million, attributed to increased compensation and administrative costs [9]. - The net loss for Q2 2025 was $4.6 million, compared to $2.9 million in the prior year [9]. - Cash and cash equivalents decreased to $2.1 million from $10.7 million at the end of 2024, with working capital also declining [11]. Strategic Developments - The company signed a Waste Destruction Services term sheet with a leading environmental solutions provider to enhance its operational capabilities [10]. - New board appointments include Stephen Jones and James Pawloski, who bring extensive industry experience to support the company's growth [5]. Future Outlook - The company anticipates completing the manufacturing of an AS1 system and launching initial Waste Destruction Services operations in the second half of 2025 [6]. - Continued advancements in the AirSCWO technology are expected to generate demand across municipal, federal, and industrial waste destruction markets [6].

Industry Overview - A growing number of water systems in the US are contaminated with PFAS, synthetic chemicals linked to health issues, prompting utilities and industries to seek destruction methods rather than containment [1] - The US Environmental Protection Agency (EPA) delayed the implementation of drinking water limits on PFAS, extending compliance deadlines to 2031, which has drawn mixed reactions from utilities and health advocates [2] - States like Delaware and Washington are enacting their own PFAS regulations, adding uncertainty for municipalities and manufacturers amid increasing litigation and public pressure [3] Company Profile: 374Water Inc - 374Water Inc has developed the AirSCWO system, which uses high temperature and pressure to break down waste, including PFAS, at the molecular level, with a current scaling capacity of 30 tons [5][8] - The AirSCWO system operates as a continuous-flow process, distinguishing it from traditional batch processes, and aims to destroy organic waste effectively [6] - The technology was developed from research by Dr. Mark Deshusses and initially funded by the Bill and Melinda Gates Foundation, focusing on water sanitation [6] Technology and Operations - The AirSCWO system creates a supercritical water environment that reacts with oxygen to dismantle organic contaminants [7] - 374Water offers two commercial models: AS1 (1 ton/day) and AS6 (6 tons/day), with plans for the AS30 (30 tons) and a long-term goal of a 100-ton system for large metropolitan areas [8] - The company is currently conducting a 90-day demonstration project in Orlando and testing an AS6 system for installation in California [9] Market Demand and Strategy - Demand for 374Water's technology is increasing, with many municipalities expressing interest, particularly after project validations in Orlando and Orange County [11] - The company is pursuing federal contracts, especially with the military, and is negotiating agreements with existing operators to leverage their permits and infrastructure for waste destruction operations [12] - 374Water plans to scale up to hazardous waste processing, which offers significantly higher revenue potential compared to non-hazardous waste [13] Competitive Landscape - As regulations on PFAS tighten, companies that provide total destruction solutions rather than mere containment may gain a competitive advantage [14]

Company Overview - 374Water Inc. is a global leader in organic waste destruction technology and services, focusing on municipal, federal, and industrial markets [3] - The company provides innovative solutions for wastewater treatment and waste management, utilizing its AirSCWO technology to efficiently destroy and mineralize a wide range of organic wastes [3] Upcoming Conference Call - A conference call is scheduled for August 12, 2025, at 4:30 p.m. Eastern time to discuss the second quarter results ending June 30, 2025 [1][2] - The call will be hosted by CEO Chris Gannon and CFO Russell Kline, followed by a Q&A session [2] - A press release detailing the results will be issued prior to the call, and a presentation will be available during the webcast [1][2] Technology and Services - 374Water's AirSCWO technology produces safe dischargeable water streams, safe mineral effluent, safe vent gas, and recoverable heat energy [3] - The technology aims to help customers meet discharge requirements, reduce or eliminate disposal costs, and mitigate litigation risks [3] - The company is committed to creating a greener future by eradicating harmful pollutants [3]

Core Insights - 374Water Inc has made significant progress in commercializing its AirSCWO technology for PFAS-related waste destruction, which can reduce contaminants to below new EPA limits or to undetectable levels [1][3] - The global market for waste destruction technology is estimated to be around $450 billion, with key target sectors including municipal wastewater treatment, federal government applications, and industrial markets [4][5] Company Overview - 374Water specializes in innovative waste destruction technology, particularly effective for biosolids, landfill leachate, and organic industrial waste contaminated with PFAS, plastics, and pharmaceuticals [2][4] - The company is actively partnering with treatment, storage, and disposal facilities to implement its technology on-site [5] Government Partnerships - 374Water is collaborating with the Defense Innovation Unit and the federal government on waste destruction strategies, with ongoing demonstrations in Detroit [6][7] - The company is conducting tests on six waste streams containing PFAS, including granular activated carbon and ion exchange resin [7] Future Developments - The company has completed a successful deployment at Peterson Space Force Base and is preparing for a year-long deployment with Orange County Sanitation in California [8] - 374Water is negotiating additional agreements to establish waste destruction service sites across the United States [9]

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