Multiple Deployments Scheduled throughout 2025 to Showcase AirSCWO Technology
Launched Waste Destruction Services and Signed RCRA Part B TSDF Partner Agreement to Expand Onsite Operations
New Executive Team and Director Appointments to Drive Commercial Trajectory
DURHAM, N.C., May 15, 2025 (GLOBE NEWSWIRE) -- 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 first quarter ended March 31, 2025.
“The first quarter of 2025 was focused on our robust, actionable backlog and pipeline and accelerating our proprietary AirSCWO (“AS”) system's commercial trajectory,” said Chris Gannon, President and CEO of 374Water. “Building on the success of our AS system deployed to the City of Orlando's Iron Bridge Water Reclamation Facility, we continued to make progress during the quarter for the expected deployment to Orange County Sanitation (“OC San”) in the second half of the year. We were also awarded a contract by the State of North Carolina to destroy 1,000 gallons of aqueous film forming form (“AFFF”) containing per- and polyfluoroalkyl ("PFAS"), this contract could increase by up to 29,000 gallons in a subsequent phase.
“To support our commercial rollout and operational execution, we continued to buildout our executive team and Board. Raj Melkote, Chief Technology Officer, brings tremendous expertise in strategy, product commercialization, new product development, and core technology innovation enabling us to more rapidly scale our business and further ruggedize and refine our AS technology. Stephen Jones, our newest independent director, has extensive experience in corporate leadership including as CEO of Covanta, board roles, and expertise in environmental services and industrial gases and chemicals. His appointment adds critical and valuable components to the board with his decades of industry experience and, equally important, his key relationships that will open doors with new partners. Most recently we welcomed James Pawloski as an Advisor and have also nominated him to serve as an independent director. As the former CEO of Regeneration and Recovery Solutions at Veolia North America, we expect his perspective and extensive experience in waste, wastewater, and environmental solutions to support our commercialization.
“The U.S. Environmental Protection Agency (“EPA”) recently announced major actions to combat per- and polyfluoroalkyl substances (“PFAS”) contamination and we believe these actions and the regulatory environment for PFAS will create strong demand tailwinds for our AirSCWO platform designed to destroy a wide variety of non-hazardous and hazardous organic wastes reaching non-detect or below EPA required levels, including PFAS. We expect the planned actions to quantify liabilities and expand PFAS remediation efforts could drive significant interest in our technology as companies look to limit liability and public funds are allocated for cleanup efforts.
“Looking ahead, with the completion of numerous municipal, federal, and industrial waste destruction demonstrations on a wide variety of solid and liquid waste streams, we are generating demand across these markets. We have made significant progress ruggedizing and optimizing our AS system and are continuing to improve our AS technology. We are completing the manufacturing of an AS1 and an AS6 unit and anticipate launching and beginning to accept third-party waste streams at our initial Waste Destruction Services (“WDS”) operations. In addition to our OC San deployment, we expect multiple additional deployments throughout 2025 to showcase the AS system. We look forward to additional milestones and announcements in the months ahead,” concluded Gannon.
Recent Highlights
Signed a Waste Destruction Services term sheet with a leading provider of specialized environmental and waste management solutions, to conduct waste destruction operations at their RCRA Part B TSDF facility.
Significant progress made in further ruggedizing and optimizing AirSCWO, pre-treatment, and post-treatment systems.
Conducted numerous demonstrations on a wide variety of organic waste streams at commercial and lab bench scale with waste destruction results at or above 99.99%.
The U.S. EPA announced major actions to combat per- and PFAS contamination, underscoring the federal government's commitment to safeguard public health through preventing PFAS from entering drinking water systems and holding polluters accountable.
Appointed Raj Melkote as Chief Technology Officer, bringing more than 30 years of domestic and international engineering executive with an extensive track record in conceptualizing, developing, and commercializing innovative new industrial technology products across a wide range of industries.
Appointed Stephen J. Jones to the Board of Directors, the former CEO of Covanta Holding Corporation and veteran industrial executive to advance commercial rollout of AirSCWO Technology to Municipal, Federal, and Industrial Waste Destruction markets.
Appointed James Pawloski as an Advisor to the Company, bringing significant leadership experience, most recently serving as the President & CEO of Regeneration and Recovery Solutions at Veolia North America.
Anticipated Upcoming Events
Establish Waste Destruction Services operations at RCRA Part B TSDF partner facility.
Complete 90-day biosolids destruction demonstration at Orlando's Iron Bridge Water Reclamation Facility.
Complete AS6 system assembly and upgrades, Factory Acceptance Test, installation, and begin biosolids destruction operations at the OC San in Fountain Valley, CA.
Complete manufacturing of an AS1 system for deployment.
Complete the highly anticipated Department of Defense (“DoD”) project in Detroit, Michigan, with Arcadis and Clean Earth, aimed at identifying commercial-scale technology solutions to destroy PFAS contaminated wastes.
First Quarter 2025 Financial Summary
For the first quarter of 2025, revenue totaled $0.5 million compared to $0.3 million in the prior year. The company's business has been focused on the development and commercialization of its supercritical water oxidation (SCWO) systems. Revenue generated was primarily from equipment manufacturing services and services, specifically a full-scale demonstration and treatability studies during the three months ending March 31, 2025, and March 31, 2024, respectively. During the three months ended March 31, 2025, we completed a full-scale demonstration for a customer resulting in an increase in our service revenues of $376,000, offset by a decrease in equipment manufacturing revenue of approximately $162,000.
Total operating expenses increased 106% to $3.9 million for the three months ended March 31, 2025, compared to $1.9 million in the prior year period.
The increase was primarily due to an increase of $0.9 million in general and administrative expenses, an increase in professional fees of $0.5 million, and an increase in compensation and related expenses of $0.6 million.
The increases in general and administrative expenses stem from increased stock-based compensation, continued efforts to establish our executive team as well as the relocation of our manufacturing facility and continued commercialization and growth efforts.
The increase in our professional fees are primarily because of increased legal fees as a result of a litigation settlement and recruiting fees related to the increase in headcount.
The increase in compensation is due to increased staffing as the company increases operations.
Net loss for the three months ended March 31, 2025, was $3.7 million, as compared with $2.0 million in the prior year.
Cash and cash equivalents as of March 31, 2025, was $6.9 million, as compared to $10.7 million as of December 31, 2024. As of March 31, 2025, working capital was $8.7 million, compared to $11.7million as of March 31, 2024.
First Quarter 2025 Results Conference Call
374Water CEO Chris Gannon and CFO Russell Kline will host the conference call, followed by a question-and-answer period. The conference call will be accompanied by a presentation, which can be viewed during the webcast or accessed following the call via the investor relations section of the Company's website here.
To access the call, please use the following information:
A telephone replay will be available approximately three hours after the call and will run through May 29, 2025, by dialing 1-844-512-2921 from the U.S., or 1-412-317-6671 from international locations, and entering replay pin number: 13753142. The replay can also be viewed through the webcast link above and the presentation utilized during the call will be available in the Company's investor relations section here.
About 374Water
374Water Inc. (NASDAQ: SCWO) is a global industrial technology and services company providing innovative solutions addressing wastewater treatment and waste management issues within the municipal, federal and industrial markets. 374Water's AirSCWO technology is designed to efficiently destroy and mineralize a broad spectrum of organic non-hazardous and hazardous organic wastes producing safe dischargeable water streams, safe mineral effluent, safe vent gas, and recoverable heat energy. 374Water's AirSCWO technology has the potential to assist its customers to meet discharge requirements, reduce or eliminate disposal costs, remove bottlenecks, and reduce litigation and other risks. 374Water continues to be a leader in innovative waste treatment solutions, dedicated to creating a greener future and eradicating harmful pollutants. Learn more by visiting www.374water.com and follow us on LinkedIn.
Cautionary Language on Forward-Looking Statements
Certain statements in this communication are "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, as amended. These statements relate to future events or our future financial performance, including statements relating to our ability to execute on our strategic plan, our ability to process a range of waste and contaminants at scale, our progress toward commercialization, the timing to complete our demonstration in Orlando, the timing to manufacture and deploy AirSCWO systems, including the deployment to OC San, demand for our products, including capital sales, leases, and waste destruction services, whether we will receive additional AFFF to destroy from North Carolina, whether we will be successful in converting our pipeline to revenue, the regulatory environment, and whether we will be able to scale our business to meet demand, and involve known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, performance, or our achievements or those of our industry to be materially different from those expressed or implied by any forward-looking statements. In some cases, forward-looking statements may be identified by the use of words like "may," "will," "could," "would," "should," "expect," "plan," "anticipate," "intend," "believe," "estimate," "project," "consider," "predict," "potential," "feel," or other comparable terminology. The Company has based these forward-looking statements on its current expectations, assumptions, estimates, beliefs, and projections. While the Company believes these expectations, assumptions, estimates, and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which involve factors or circumstances that are beyond the Company's control. These and other important factors, including those discussed under "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2025, as well as the Company's subsequent filings with the SEC, may cause actual results, performance, or achievements to differ materially from those expressed or implied by these forward-looking statements. The forward-looking statements herein are made only as of the date they were first issued, and unless otherwise required by applicable securities laws, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Investor Relations and Media Contact Chris Tyson Executive Vice President MZ North America Direct: 949-491-8235 SCWO@mzgroup.us www.mzgroup.us
374Water Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
March 31, 2025 (Unaudited) and December 31, 2024
March 31, 2025
December 31, 2024
Assets
Current Assets:
Cash and cash equivalents
$
6,883,845
$
10,651,644
Accounts receivable, net of allowance
94,103
269,733
Unbilled accounts receivable
2,163,417
1,653,007
Other accounts receivable
29,246
43,886
Inventory, net
1,876,554
1,701,474
Contract assets
197,043
136,651
Prepaid expenses
338,315
431,412
Total Current Assets
11,582,523
14,887,807
Long-Term Assets:
Property, and equipment, net
2,719,232
2,567,571
Intangible asset, net
998,251
1,016,594
Right-of-use asset, net
662,310
691,014
Other assets
15,847
20,847
Total Long-Term Assets
4,395,640
4,296,026
Total Assets
$
15,978,163
$
19,183,833
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable and accrued expenses
$
819,528
$
906,394
Accrued bonuses
380,000
570,000
Accrued contract loss provision
1,000,000
1,000,000
Accrued legal settlement
335,000
335,000
Unearned revenue
170,000
197,683
Operating lease liability
105,697
101,320
Other liabilities
37,998
17,279
Total Current Liabilities
2,848,223
3,127,676
Long-Term Liabilities:
Unearned revenue, less current portion
30,000
30,000
Operating lease liability, less current portion
523,210
551,376
Total Long-Term Liabilities
553,210
581,376
Total Liabilities
3,401,433
3,709,052
Commitments and contingencies (Note 9)
Stockholders' Equity
Preferred stock: 50,000,000 shares authorized, par value $0.0001 per share, nil issued and outstanding at March 31, 2025 and December 31, 2024
-
-
Common stock: 200,000,000 authorized, par value $0.0001 per share, 144,682,963 and 144,301,977 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively
14,467
14,429
Additional paid-in capital
44,645,824
43,845,499
Accumulated deficit
(32,086,032
)
(28,387,618
)
Accumulated other comprehensive income
2,471
2,471
Total Stockholders' Equity
12,576,730
15,474,781
Total Liabilities and Stockholders' Equity
$
15,978,163
$
19,183,833
374Water Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
For the Three Months Ended March 31, 2025 and 2024
(Unaudited)
Three months ended March 31,
2025
2024
Revenues
$
543,100
$
315,278
Cost of revenues
404,817
617,298
Gross margin (deficit)
138,283
(302,020
)
Operating Expenses
Research and development
533,587
535,147
Compensation and related expenses
1,675,865
790,190
Professional fees
771,901
252,705
General and administrative
942,440
321,141
Total Operating Expenses
3,923,793
1,899,183
Loss from Operations
(3,785,510
)
(2,201,203
)
Other Income
Interest income
89,710
104,620
Other income (expense)
(2,614
)
72,118
Total Other Income, net
87,096
176,738
Net Loss before Income Taxes
(3,698,414
)
(2,024,465
)
Provision for Income Taxes
-
-
Net Loss
$
(3,698,414
)
$
(2,024,465
)
Net Loss per Share - Basic and Diluted
$
(0.03
)
$
(0.02
)
Weighted Average Common Shares Outstanding - Basic and Diluted
144,607,438
132,668,777
374Water Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
For the Three Months Ended March 31, 2025 and 2024
(Unaudited)
Cash Flows from Operating Activities
2025
2024
Net loss
$
(3,698,414
)
$
(2,024,465
)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization expense
164,004
24,560
Non-cash lease expense
28,704
-
Issuance of common stock for services
66,900
4,500
Stock-based compensation
709,463
183,200
Increase in inventory reserve
-
50,000
Changes in operating assets and liabilities:
Accounts receivable
175,630
(19,532
)
Unbilled accounts receivable
14,640
(277,056
)
Other receivables
(510,410
)
5,588
Inventory
(175,080
)
(374,981
)
Contract assets
(60,392
)
-
Prepaid expenses
93,097
(340,280
)
Other assets
5,000
-
Accounts payable and accrued expenses
(86,866
)
183,424
Accrued bonus
(190,000
)
-
Accrued contract loss provision
-
100,000
Unearned revenue
(27,683
)
2,768
Other liabilities
20,719
(26,379
)
Operating lease liability
(23,789
)
-
Net Cash Used In Operating Activities
(3,494,477
)
(2,508,653
)
Cash Flows from Investing Activities
Purchases of property and equipment
(297,322
)
-
Increase in intangible assets
-
(590
)
Net Cash Used In Investing Activities
(297,322
)
(590
)
Cash Flows from Financing Activities
Proceeds from the exercise of stock options
24,000
-
Net Cash Provided by Financing Activities
24,000
-
Net Decrease in Cash and Cash Equivalents
(3,767,799
)
(2,509,243
)
Cash and cash equivalents, Beginning of the Period
