374Water (SCWO) - 2024 Q3 - Quarterly Report

Financial Performance - Revenues for the three months ended September 30, 2024, increased to $81,490, a 563$12,290 in the same period of 2023[122] - For the nine months ended September 30, 2024, revenues decreased to $433,589, a 50$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$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$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$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$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$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$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$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]