374Water (US:SCWO)2025-11-12 21:18Financial Performance - Revenues for the three months ended September 30, 2025, increased to $760,417, representing an 833% increase compared to $81,490 in the same period of 2024[132] - Cost of revenues rose to $547,785, a 1,192% increase from $42,404 in the prior year, primarily due to increased service revenues[132] - Gross margin for the third quarter of 2025 improved to $212,632, a 444% increase from $39,086 in the same quarter of 2024[132] - For the nine months ended September 30, 2025, revenues reached $1,898,484, a 338% increase from $433,589 in the same period of 2024[139] Expenses - Research and development expenses increased to $755,944, up 78% from $424,579 in the same period of 2024, driven by higher labor costs[133] - Compensation and related expenses rose to $2,097,580, a 73% increase from $1,212,602 in the same period of 2024, mainly due to increased payroll and stock-based compensation[136] - Total operating expenses for the three months ended September 30, 2025, were $4,573,377, a 64% increase from $2,780,825 in the same period of 2024[132] Net Loss - Net loss for the third quarter of 2025 was $4,349,024, a 61% increase compared to a net loss of $2,701,817 in the same period of 2024[132] - For the nine months ended September 30, 2025, the company incurred a net loss of $12,627,886 and used $10,205,171 of net cash in operations, an increase of $2,707,437 compared to the same period in 2024[146] Cash Flow and Financing - Cash used in investing activities for the nine months ended September 30, 2025 was $1,358,794, compared to $999,207 for the same period in 2024, reflecting a decrease of $359,587[154] - Cash received from financing activities increased to $1,845,649 for the nine months ended September 30, 2025, compared to $11,912 for the same period in 2024, an increase of $1,833,737[155] - The company raised approximately $1.9 million from the sale of common stock through its "at-the-market" (ATM) equity offering during the nine months ended September 30, 2025[148][149] - The company closed on an offering of shares resulting in net proceeds of approximately $11,393,000 during 2024[150] Working Capital and Concerns - As of September 30, 2025, the company had working capital of $1,904,259 and an accumulated deficit of $41,015,504, raising substantial doubt about its ability to continue as a going concern[146] - The company expects to incur continuing losses and negative cash flows from operations for the foreseeable future, necessitating additional debt or equity financing[147] - Approximately $13.1 million remains available to be sold in the company's ATM offerings as of September 30, 2025[148] - Any additional financing may significantly dilute existing stockholders' ownership if the stock price does not increase materially[151] - The company may need to discontinue or significantly reduce operations if it is unable to raise additional capital[152] Contracts and Collaborations - The company secured a waste destruction services contract for aqueous film forming firefighting foam with the University of North Carolina at Chapel Hill[131] - A collaboration agreement was established with Crystal Clean to create a full-service waste destruction operation at their facility[130]