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]

Company Overview - 374Water Inc. is a global leader in waste destruction technology, focusing on municipal, federal, and industrial markets [3] - The company provides innovative solutions for wastewater treatment and waste management, utilizing its AirSCWO technology [3] - AirSCWO technology efficiently destroys and mineralizes a wide range of organic wastes, producing safe dischargeable water, mineral effluent, vent gas, and recoverable heat energy [3] Upcoming Conference Call - A conference call will be held on May 15, 2025, at 4:30 p.m. Eastern time to discuss the first quarter results ending March 31, 2025 [1] - 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 and after the call [1][2] Access Information - Dial-in numbers for the conference call are 1-877-423-9813 for U.S. and 1-201-689-8573 for international participants [2] - A telephone replay will be available approximately three hours after the call until May 29, 2025 [2] - The replay can be accessed by dialing 1-844-512-2921 from the U.S. or 1-412-317-6671 internationally, using the replay pin number: 13753142 [2]

Core Insights - 374Water Inc. has appointed James Pawloski as an advisor and nominated him as an Independent Director, with voting scheduled for the Annual Meeting of Stockholders on June 11, 2025 [1][2]. Company Overview - 374Water Inc. is a global leader in waste destruction technology, focusing on municipal, federal, and industrial markets [1][5]. - The company's AirSCWO technology efficiently destroys and mineralizes a wide range of organic wastes, producing safe dischargeable water, mineral effluent, vent gas, and recoverable heat energy [5]. Leadership Experience - James Pawloski previously served as President & CEO of Regeneration and Recovery Solutions at Veolia North America until September 2023, managing a $300 million line of business and overseeing P&Ls totaling $500 million in revenue [3]. - He successfully scaled the regeneration business from $40 million to $80 million in EBITDA during his tenure at Veolia [3]. - Pawloski has 25 years of experience at DuPont, where he held various leadership roles, including managing the Clean Technologies business [3]. Strategic Vision - The President and CEO of 374Water expressed confidence that Pawloski's extensive experience in waste and environmental solutions will support the company's commercial growth [4]. - Pawloski highlighted the potential of the AirSCWO System to address unmet needs in wastewater treatment and waste management, indicating a focus on both domestic and international growth [4].

Core Insights - 374Water Inc. has appointed Stephen J. Jones to its Board of Directors, enhancing its leadership team and fulfilling Nasdaq's independent director requirement [1][2][4] - Mr. Jones brings extensive experience in environmental services and industrial gases, having held leadership roles at Covanta Holding Corporation and Air Products and Chemicals, Inc. [2][3] - The company aims to leverage Mr. Jones' industry knowledge and relationships to accelerate the commercial rollout of its AirSCWO technology for waste destruction [4][5] Company Overview - 374Water Inc. is a global leader in waste destruction technology, focusing on municipal, federal, and industrial markets [1][5] - The company's AirSCWO technology efficiently destroys and mineralizes a wide range of organic wastes, producing safe dischargeable water, mineral effluent, vent gas, and recoverable heat energy [5][6] - 374Water is dedicated to innovative waste treatment solutions, aiming to create a greener future and eliminate harmful pollutants [6]

Core Viewpoint - 374Water Inc. has reached a settlement with its co-founder and former CEO, Yaacov (Kobe) Nagar, regarding an employment claim, which both parties view as a positive step towards future collaboration [1][2][3] Company Overview - 374Water Inc. is a global leader in organic waste destruction technology, focusing on municipal, federal, and industrial markets [1][4] - The company's AirSCWO technology is designed to efficiently destroy and mineralize a wide range of organic wastes, producing safe dischargeable water, mineral effluent, vent gas, and recoverable heat energy [4] - 374Water's destruction capacity ranges from 1 ton per day to over 200 tons per day, offering both capital sale and lease options, as well as turn-key waste destruction services [4] Settlement Details - The terms of the settlement with Mr. Nagar are confidential, but both parties express satisfaction with the resolution and a commitment to a productive future [2][3] - The CEO of 374Water, Chris Gannon, emphasized the value of Mr. Nagar's contributions and the excitement for future collaboration [3]

374Water (SCWO) Q4 2024 Earnings Call March 28, 2025 07:24 AM ET Company Participants Christopher Tyson - Executive Vice President & PartnerChris Gannon - CEO & PresidentRussell Kline - CFOJeff Grampp - Managing Director Operator Greetings and welcome to the three seventy four Water Fiscal Year twenty twenty four 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 bei ...

Financial Data and Key Metrics Changes - The company generated revenue of $445,000 for the fiscal year ended December 31, 2024, compared to $743,000 in the prior year, indicating a decline in revenue [52] - Total operating expenses increased by 59% to $11.9 million for the year ended December 31, 2024, compared to $7.5 million for the year ended December 31, 2023 [55] - Net loss for the year was $12.4 million, compared to $8.1 million in the prior year [57] Business Line Data and Key Metrics Changes - Revenue generated in 2024 was primarily from manufacturing assembly services and treatability study services, with fewer milestones reached leading to reduced revenue recognition [52][53] - The company is in active late-stage negotiations for AS6 and AS30 capital sales and is launching its waste destruction services business [54] Market Data and Key Metrics Changes - The global waste treatment addressable market opportunity is approximately $450 billion, with the municipal water and wastewater treatment market estimated at over $347 billion annually, growing at about 7.5% [38] - The U.S. federal waste management market is estimated at approximately $15 billion, while the industrial waste management market is estimated at $128 billion [40][42] Company Strategy and Development Direction - The company aims to establish multiple regional waste destruction facilities in partnership with treatment, storage, and disposal facilities (TSDF) across the U.S. [36] - The growth strategy includes capital sales, leases, and waste destruction services, with a focus on expanding manufacturing capabilities for AS1, AS6, and AS30 units [37][44] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in 2025 being the best year for revenue, with a projected path to $250 million to $500 million in revenue over the next five years [54][49] - The regulatory environment is seen as supportive of demand for innovative waste management solutions, particularly for PFAS destruction [58][59] Other Important Information - The company completed a registered direct offering in November 2024, resulting in gross proceeds of $12.2 million, which is being utilized to improve technology and expand operations [50] - The company has expanded its intellectual property portfolio with multiple patent applications filed throughout the year [17] Q&A Session Summary Question: Can you expand on the North Carolina opportunity and its timeline? - Management indicated that the first 1,000 gallons of waste destruction must be completed within six months, with a focus on complete elimination of AFFF [66][67] Question: What is the current manufacturing capacity and its impact on growth? - Current manufacturing capacity allows for the production of two to four systems at a time, with plans for future expansion as demand increases [68][69]

Revenue and Expenses - Revenue for the year ended December 31, 2024, was $445,445, a decrease of 40% compared to $743,952 in 2023[261] - Cost of revenues decreased by 27% to $1,358,152 in 2024 from $1,852,208 in 2023[261] - Research and development expenses increased by 43% to $2,143,471 in 2024 from $1,496,129 in 2023[262] - Total operating expenses rose by 58% to $11,890,551 in 2024 compared to $7,534,620 in 2023[262] - Net loss for the year ended December 31, 2024, was $12,434,114, representing a 53% increase from a net loss of $8,103,522 in 2023[262] - Compensation and related expenses increased to $3,685,007 in 2024, up from $2,854,494 in 2023, primarily due to increased hiring and salary increases[265] - Professional fees rose to $2,231,005 in 2024, compared to $508,795 in 2023, mainly due to legal fees related to a settlement and executive search services[266] - General and administrative expenses increased to $3,831,068 in 2024, up from $2,675,202 in 2023, driven by stock-based compensation and relocation expenses[267] - Net loss increased to $12,434,114 in 2024, compared to $8,103,522 in 2023, attributed to higher expenses[269] Assets and Liabilities - The company capitalized $136,651 of costs incurred to fulfill the Demo contract as contract assets as of December 31, 2024[250] - An inventory allowance of $50,000 was estimated as of December 31, 2024, compared to $0 in 2023[240] - The company accrued a total accrued loss provision of $1,000,000 for the Equipment Sale Contract as of December 31, 2024, up from $500,000 in 2023[253] - Working capital decreased to $11,760,131 as of December 31, 2024, from $13,528,176 in 2023, primarily due to lower proceeds from equity offerings[273] Cash Flow - Cash used in operating activities was $(10,589,735) in 2024, an increase of $1,554,748 from $(9,034,987) in 2023[278] - Cash provided by financing activities was $11,449,519 in 2024, a decrease of $2,129,419 compared to 2023[280] - Cash on hand as of December 31, 2024, was $10,651,644, reflecting a 2% increase from $10,445,404 in 2023[278] - The company completed a registered direct offering in November 2024, raising gross proceeds of $12.2 million[272] - Cash used by investing activities was $(653,544) in 2024, a significant decrease from cash provided of $1,851,717 in 2023, primarily due to increased purchases of property and equipment[279] Future Plans - The company expects to complete its commercial-scale demonstration under the contract with the City of Orlando in 2025[260] - The company plans to deploy an AirSCWO system to multiple locations, including Detroit, MI, and Orange County, CA, in 2025[260]

Awarded Aqueous Film-Forming Foam Waste Destruction Services Contract for the State of North Carolina DURHAM, NC – March 27, 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 fourth quarter and full year ended December 31, 2024. EX-99.1 2 scwo_ex991.htm PRESS RELEASE EXHIBIT 99.1 374Water Reports Fourth Quarter and Full Year 2024 Fin ...