Company successfully demonstrated its technology to over 400 attendees

DURHAM, NC / ACCESSWIRE / May 9, 2023 / 374Water Inc. (NASDAQ:SCWO), a global social impact and cleantech company offering a revolutionary commercial waste management solution for the environment, today provides a business update and reports its financial results for the quarter ended March 31, 2023.

"This quarter was marked by progress in building our pipeline of prospective customers that witnessed our first commercial AirSCWO™ 6 system that was purchased by Orange County Sanitation District," said Kobe Nagar, 374Water Chairman and CEO. "The addressable market for our technology is significant and, looking ahead, our focus is on soundly scaling our business to meet demand in line with our commitment to create a world without waste through development of commercial solutions for environmental preservation."

"During the quarter, we saw an opportunity to utilize our at-the-market equity tool to raise capital to meet the growing market demand," said Israel Abitbol, 374Water Chief Financial Officer. "Our goal is to efficiently scale our business in line with the opportunity we see, while taking steps toward improved margins and profitability."

Financial Highlights

• Revenue for the quarter ended March 31, 2023 was $801,000, compared to $273,000 for the same period in 2022, an increase of 193%.
  • 2023 revenue was due to manufacturing assembly services while 2022 revenue was primarily due to consulting and advisory services.
• At the same time, the Company managed its Cost of Goods Sold to generate a 222% increase in its Gross Profit compared to the period ended March 31, 2022.
• Total Operating Expenses increased as the Company makes strides in building its pipeline while commercializing and improving its technology:
  • Research and Development expenses increased from $186,000 to $356,000, primarily a result of the increase in engineering costs related to commercializing our system.
  • Compensation-related expenses grew to $719,000 from $301,000 primarily due to increased payroll and benefit expenses as a result of growing active projects.
  • General and administrative expenses increased to $586,000 from $261,000 primarily as a result of increased insurance costs and public company expenses.

Capital Structure

• As of March 31, 2023 we had working capital of $13,966,018 compared to working capital of $7,060,511 at December 31, 2022. This increase in working capital is due primarily to share issuances under the Company's the-market common stock offering.

Operational Highlights

• The Company successfully demonstrated its AirSCWO™ supercritical water oxidation (SCWO) technology during SCWO week at its manufacturing partner's facility in Indiana. The event showcased the company's revolutionary waste management solution to hundreds of prospective customers, along with analysts and investors. The 3-day event, attended by over 400 guests featured a demonstration of the first commercial unit (Ana), set to be deployed in Orange County, CA, later this year. Attendees included over 200 potential customers, and several municipalities, representing over 10 countries.
• 374Water participated in the United Nations 2023 Water Conference and hosted an accredited side event. During the conference, the Company hosted its own "Future of PFAS, Waste and Clean Water" expert panel in the Nasdaq Boardroom.

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

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.

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.

Investor Contact:
Heather Crowell
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Media Contact:
Christian Rizzo
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374Water Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
March 31, 2023 (Unaudited) and December 31, 2022

374Water, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
For the three months ended March 31, 2023 and 2022
(Unaudited)

374Water Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
For the three months ended March 31, 2023 and 2022 (Unaudited)