• Revenue: $445,000 for the fiscal year ended December 31, 2024, compared to $743,000 in the prior year.
• Net Loss: $12.4 million for the year ended December 31, 2024, compared to $8.1 million in the prior year.
• Operating Expenses: Increased 59% to $11.9 million for the year ended December 31, 2024, from $7.5 million in the prior year.
• Cash and Cash Equivalents: $10.7 million as of December 31, 2024, compared to $10.4 million as of December 31, 2023.
• Working Capital: $11.5 million as of December 31, 2024, compared to $13.5 million as of December 31, 2023.
• Gross Proceeds from Offering: $12.2 million in November 2024, with net proceeds of $11.3 million.

• Warning! GuruFocus has detected 8 Warning Signs with SCWO.

Release Date: March 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• 374Water Inc (NASDAQ:SCWO) has developed a proprietary AirSCWO system designed to effectively destroy both solid and liquid non-hazardous and hazardous organic waste.
• The company has a flexible go-to-market strategy offering multiple procurement options, including capital sales, leases, and waste destruction services.
• 374Water Inc (NASDAQ:SCWO) has secured a multiphase contract with the University of North Carolina at Chapel Hill, potentially worth over $5 million, to destroy AFFF firefighting foam.
• The company has expanded its intellectual property portfolio by filing multiple patent applications, strengthening its competitive position.
• 374Water Inc (NASDAQ:SCWO) has increased its operational capabilities by moving to a new state-of-the-art Biosafety Level 1 facility and expanding its production facility in Orlando.

Negative Points

• The company reported a decrease in revenue for the fiscal year 2024, generating $445,000 compared to $743,000 in the prior year.
• Total operating expenses increased by 59% to $11.9 million for the year ended December 31, 2024, primarily due to increased professional fees and general administrative expenses.
• The net loss for the year ended December 31, 2024, was $12.4 million, compared to $8.1 million in the prior year.
• Manufacturing capacity is currently limited to producing two to four systems at a time, which may constrain growth if demand increases significantly.
• The company is still in the early stages of unlocking market opportunities and faces long sales cycles for its high-capacity systems.

Q & A Highlights

Q: Can you expand on the North Carolina opportunity, specifically regarding the timeline and scope of the AFFF destruction project? A: Chris Gannon, President and CEO, explained that North Carolina is a forward-looking state and could serve as a model for large-scale AFFF destruction. The initial phase involves destroying 1,000 gallons within six months, with the potential to expand to 28,000 gallons. The focus is on complete and effective elimination of AFFF.

Q: What is the current manufacturing capacity for the AS systems, and is it a constraint for growth? A: Chris Gannon stated that they can currently manufacture two to four systems at a time. While they are in a good position now, they will eventually need to expand their facilities. The current manufacturing is done at the City of Orlando's water reclamation facility.

Q: Does the manufacturing capacity of two to four systems apply to all sizes of the AS systems? A: Yes, Chris Gannon confirmed that this capacity applies irrespective of the system size. The AS30, for example, is not significantly larger than the AS6 in terms of square footage.

Q: Are there plans to expand the manufacturing facilities in the near future? A: Chris Gannon mentioned that while they are comfortable with the current capacity, they will eventually need to move to a larger facility to accommodate growth.

Q: Can you provide more context on the strategic partnerships and their role in supporting business growth? A: Russell Kline, CFO, highlighted that they are in active discussions with potential strategic partners to support business growth, which will be crucial for scaling operations and expanding their market presence.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.