374Water (US:SCWO)2025-03-28 01:28Revenue 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]