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374Water Q3 2022 Revenue Increases 4,756% as the Company Pioneers a New Era of Sustainability

374Water Inc.

DURHAM, NC / ACCESSWIRE / November 1, 2022 / 374Water Inc. (NASDAQ:SCWO), a global cleantech and social impact company, today provides a business update and reports its financial results for the quarter ended September 30, 2022.

The third quarter was marked by meaningful progress. Q3 and YTD Highlights:

  • Revenue for the third quarter of 2022 was $0.9 million compared to $19,000 for the same quarter of 2021, an increase of 4,756%.

  • Entered into a Memorandum of Understanding (MOU) with Forever Water Ecuador to promote and distribute 374Water's innovative and sustainable AirSCWO™ wastewater and waste management technology in Ecuador. According to Ecuadorian government statistics, 14% of the population lack access to basic sanitation services, which heightens the need for sanitation infrastructure investment. This joint effort will provide long-term and sustainable waste management solutions to the urban and rural underserved regions of Ecuador.

  • Participated in the Goldman Sachs Water Symposium

  • 374Water and its manufacturing partner Merrell Bros., advanced the development of the AirSCWO™ 6 system - a decentralized, prefabricated, compact, and modular solution for sustainable wet waste management. Manufacturing of the first commercial units, which have already been sold, is underway and expected to be completed in Q4 2022.

Kobe Nagar, CEO of 374Water Inc. commented, "Strong momentum since commercializing our technology in February 2022, continues. In Q3, we announced an MOU with Forever Water Ecuador to help solve sanitation in Latin America. Additionally, we progressed development of The AirSCWO™ 6 system for Orange County Sanitation District (OC San), expected to be completed in the 4th quarter of 2022, and to become operational in 2023. Mr. Nagar continued, "The market opportunity development is enormous and we are dedicated to delivering our newly commercial units that treat waste and eliminate pollutants. In fact, PFAS, the ‘forever chemical' is estimated to be present in more than 57,000 sites in the U.S. alone, representing a trillion dollar market opportunity. PFAS is just a single vertical for our solutions. Considering OC San, our partnerships with Merrell Bros, ESC, MOUs with Ecuador and Midway and numerous addressable verticals, set ourselves to drive substantial shareholder value in the near and long term."

Third Quarter ended September 30, 2022 Financial Results

Revenue for the third quarter of 2022 was $0.9 million compared to $19,000 for the same quarter of 2021, an increase of 4,756%. The increase in revenue during 2022 was primarily as a result of recognizing a portion of the revenue associated with the sale of our first AirSCWO™ system.

General and administrative expenses were $387,018 in the third quarter of 2022, compared to $143,147 in the third quarter of 2022. The change in the quarter is primarily associated with our increased insurance costs, marketing and business development expenses, dues and subscriptions, and stock-based compensation expenses.

Research and development expenses were $118,253 in the third quarter of 2022, compared to $115,936 in the third quarter of 2021. The change in the quarter is primarily associated with the increase in engineering expenses attributed to the design of the AirSCWO™ 30 - which has a capacity of 30 wet tonne / day, a 5x scale up of the AirSCWO™ 6 system.

Net loss was $(912,826), or $(0.01) per basic and diluted share, compared to a net loss of $ (551,959) million, or $(0.01) per basic diluted share, in the third quarter of 2021.

Total cash and investments were $8,402,255 as of September 30, 2022, compared to $11,131,175 at December 31, 2021. Total current assets were $9,864,788 and current liabilities were $1,262,157 as of the same date, compared to $ 11,349,641 and $86,371 respectively, in the year-ended reporting period.

For more on AirSCWO™ or about our team, visit 374Water.com or follow us on LinkedIn and Twitter.

Cautionary Language

This press release contains "forward-looking statements," as that term is defined under the Private Securities Litigation Reform Act of 1995 (PSLRA), which statements may be identified by words such as "expects," "plans," "projects," "will," "may," "anticipates," "believes," "should," "intends," "estimates," and other words of similar meaning.

About 374Water

374Water Inc. (Nasdaq:SCWO), is a global cleantech, social impact company whose mission is to preserve a clean and healthy environment that sustains life. We are pioneering a new era of sustainable waste management that supports a circular economy and enables organizations to achieve their environmental, social, and governance (ESG) and sustainability goals. Follow us on LinkedIn and Twitter.

374Water Investor Contact:
James Carbonara
ir@374water.com

374Water Media Contact:
Ashley Willis
media@374water.com

PART I FINANCIAL INFORMATION
Item 1. Condensed Consolidated Financial Statements
374Water Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
September 30, 2022 (Unaudited) and December 31, 2021

2022

2021

Assets

Current Assets:

Cash

$

2,407,983

$

11,131,175

Accounts receivable

164,600

-

Investments

5,994,272

-

Prepaid expenses

1,297,933

218,466

Total Current Assets

9,864,788

11,349,641

Long-Term Assets:

Equipment, net

124,593

959

Intangible asset, net

980,753

1,028,114

Other assets

35,170

34,742

Total Long-Term Assets

1,140,516

1,063,815

Total Assets

$

11,005,304

$

12,413,456

Liabilities and Stockholders' Equity

Current Liabilities:

Accounts payable and accrued expenses

$

1,043,660

$

62,981

Deferred revenue

200,109

-

Other liabilities

18,388

23,390

Total Current Liabilities

1,262,157

86,371

Total Liabilities

1,262,157

86,371

Stockholders' Equity

Preferred Stock: 1,000,000 Convertible Series D preferred shares authorized; par value $0.0001 per share, nil issued and outstanding at September 30, 2022 and 27,272 issued and outstanding at December 31, 2021

-

3

Common stock: 200,000,000 common shares authorized, par value $0.0001 per share, 126,680,895 and 125,317,746 shares outstanding at September 30, 2022 and December 31, 2021, respectively

12,667

12,531

Additional paid-in capital

15,894,426

15,474,566

Accumulated (deficit)

(6,159,975

)

(3,160,015

)

Accumulated other comprehensive loss

(3,971

)

-

Total Stockholders' Equity

9,743,147

12,327,085

Total Liabilities and Stockholders' Equity

$

11,005,304

$

12,413,456

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

374Water, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
For the three and nine months ended September 30, 2022 and 2021
(Unaudited)

Three months ended

September 30,

Nine months ended

September 30,

2022

2021

2022

2021

Revenue

$

922,718

$

19,000

$

2,226,477

$

33,600

Cost of Goods Sold

812,386

-

1,962,879

-

Gross Profit

110,332

19,000

263,598

33,600

Operating Expenses

Research and development

118,253

115,936

726,602

269,796

Compensation and related expenses

435,297

227,790

1,135,979

405,456

Product and development expenses

-

-

-

1,399,833

Professional Fees

82,752

84,514

375,313

245,152

General and administrative

387,018

143,147

1,027,287

206,931

Total Operating Expenses

1,023,320

571,387

3,265,181

2,527,168

Loss from Operations

(912,988

)

(552,387

)

(3,001,583

)

(2,493,568

)

Other Income (Expense)

Award income

-

-

-

-

Interest income

162

428

1,617

751

Other income

-

-

7

-

Total Other Income (Expense)

162

428

1,624

751

Net Loss before Income Taxes

(912,826

)

(551,959

)

(2,999,959

)

(2,492,817

)

Provision for Income Taxes

-

-

-

-

Net Loss

$

(912,826

)

$

(551,959

)

$

(2,999,959

)

$

(2,492,817

)

Other comprehensive loss

Change in foreign currency translation

-

-

(850

)

-

Change in unrealized loss on marketable securities

(3,122

)

-

(3,122

)

-

Total other comprehensive loss

(3,122

)

-

(3,972

)

-

Total comprehensive loss

(915,948

)

(551,959

)

(3,003,931

)

(2,492,817

)

Net Loss per Share - Basic and Diluted

$

(0.01

)

$

(0.01

)

$

(0.02

)

$

(0.03

)

Weighted Average Common Shares Outstanding - Basic and Diluted

126,680,895

98,391,746

126,621,412

84,283,229

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

374Water Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
For the nine months ended September 30, 2022 and 2021 (Unaudited)

2022

2021

Cash Flows from Operating Activities

Net loss

$

(2,999,959

)

$

(2,492,817

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Depreciation and amortization expense

50,052

16,314

Stock based compensation

419,995

86,152

Warrant issued for product development agreement

-

1,399,833

Changes in operating assets and liabilities:

Accounts receivable

(164,600

)

19,663

Prepaid expenses

(1,079,467

)

(26,185

)

Accounts payable and accrued expenses

980,679

(78,558

)

Deferred revenue

200,109

-

Other liabilities

(5,002

)

22,007

Cash Provided by (Used In) Operating Activities

(2,598,193

)

(1,053,591

)

Cash Flows from Investing Activities

Purchase of marketable securities

(5,998,243

)

-

Purchase of equipment

(125,011

)

(2,319

)

Proceeds from reverse acquisition

-

29,536

Increase in other asset

(1,745

)

(19,826

)

Cash Provided by (Used In) Investing Activities

(6,123,999

)

7,391

Cash Flow from Financing Activities

Repayments to (advances) from stockholders

-

(15,108

)

Proceeds from sale of series D preferred shares

-

6,551,745

Proceeds from exercise of options and warrants

-

1,285,344

Cash Provided by Financing Activities

-

7,821,981

Net Increase in Cash

(8,723,192

)

6,775,781

Cash, Beginning of the Period

11,131,175

71,799

Cash, End of the Period

$

2,407,983

$

6,847,580

NON-CASH FINANCING ACTIVITIES

Conversion of preferred stock to common stock

$

133

$

-

License

-

1,073,529

Accounts payable settled with Series D Preferred Stock

-

50,000

NET LIABILITIES ASSUMED IN REVERSE ACQUISITION

Cash

-

29,536

Prepaid expense

-

14,483

Accounts receivable

-

1,000

Account payable

-

(46,150

)

Accrued expenses

-

(83,094

)

Net liability assumed

-

(84,225

)

SOURCE: 374Water Inc.



View source version on accesswire.com:
https://www.accesswire.com/723195/374Water-Q3-2022-Revenue-Increases-4756-as-the-Company-Pioneers-a-New-Era-of-Sustainability

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