374Water (US:SCWO)2026-03-31 20:31Revenue and Financial Performance - Revenue for the year ended December 31, 2025, was $215,037, a decrease of $230,408 or 52% compared to $445,445 in 2024[249] - The company reported a net loss of $(20,975,052) for 2025, an increase of $8,540,938 or 69% compared to $(12,434,114) in 2024[249] - Net loss increased to $20,975,052 in 2025, up approximately 69% from $12,434,114 in 2024, attributed to increased expenses and decreased revenue from contract delays[257] Costs and Expenses - Cost of revenues increased to $2,566,421 in 2025, up approximately $1,208,000 or 89% from $1,358,152 in 2024[252] - Gross deficit for 2025 was $(2,351,384), representing an increase of $1,438,677 or 158% compared to $(912,707) in 2024[249] - Research and development expenses rose to $2,524,519 in 2025, an increase of approximately $381,000 or 18% from $2,143,471 in 2024[253] - Compensation and related expenses increased to $8,262,188 in 2025, up approximately 75% from $4,731,553 in 2024, primarily due to a $1,823,000 increase in stock-based compensation and a $1,708,000 rise in payroll expenses[254] - General and administrative expenses rose to $5,207,949 in 2025, an increase of approximately 87% from $2,784,522 in 2024, driven by higher depreciation, investor relations, travel expenses, and stock-based compensation[255] Cash Flow and Working Capital - Cash used in operating activities was $14,326,205 in 2025, an increase of approximately 35% from $10,589,735 in 2024, primarily due to the increased net loss[275] - Cash on hand decreased to $3,198,682 as of December 31, 2025, a decline of 70% from $10,651,644 in 2024[275] - Cash used in investing activities was $1,898,212 in 2025, an increase of approximately 190% from $653,544 in 2024, mainly due to higher property and equipment purchases[276] - Cash provided by financing activities was $8,771,455 in 2025, down approximately 23% from $11,449,519 in 2024, reflecting less capital raised compared to the previous year[277] - As of December 31, 2025, working capital decreased to $1,669,083 from $11,760,131 in 2024, primarily due to reduced cash balances[268] Contracts and Future Outlook - The company incurred costs in excess of billings of approximately $1.9 million related to the OC San contract due to delays in equipment delivery[239] - The company generated approximately $1,331,000 in revenue from two full-scale demonstrations and a mobile bench-scale demonstration during 2025[251] - The company has secured additional contracts for Waste Destruction Services and made technological advances to meet customer demands as of 2026[247] - The company expects to scale AirSCWO systems to handle larger capacities and expand Waste Destruction Services hubs in 2026[248] - The company has established a Waste Destruction Services hub at the City of Orlando's Iron Bridge Water Reclamation Facility[245] Market Value and Financing - The aggregate market value of the company's outstanding common stock held by non-affiliates was approximately $39,144,000 as of March 25, 2026[266] - The company issued convertible notes in March 2026, raising $800,000 with a 10% interest rate and a conversion rate of $5.00 per share[259]