DURHAM, NC / ACCESSWIRE / March 29, 2024 / 374Water Inc. (NASDAQ:SCWO), a global social impact and cleantech company offering a revolutionary waste management solution for the environment, today provides a business update and reports its financial results for the fourth quarter and year ended December 31, 2023.
"In the fourth quarter, we've made significant progress with our AirSCWO 6 system, moving closer to its deployment to Orange County Sanitation District which we still expect to occur in the first half of this year," said Jeff Quick, Interim CEO of 374Water. "We are excited to have recently secured a contract with another major municipality in Orlando, a testament to the compelling nature of our SCWO technology. While our sales cycle is lengthy, we expect our pipeline to accelerate following successful system installations."
Financial Highlights
Capital Structure
Operational Highlights
For more on AirSCWO or about our team, visit 374Water.com or follow us on LinkedIn.
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.
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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374 Water Inc. and Subsidiaries
Consolidated Balance Sheets
As of December 31, 2023 and December 31, 2022
| 2023 | 2022 | |||||||
Assets | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 10,445,404 | $ | 4,046,937 | ||||
Accounts receivable, net of allowance of $2,909 and $0, respectively | 64,792 | - | ||||||
Other receivables | 39,749 | - | ||||||
Unbilled accounts receivable | 1,494,553 | 918,164 | ||||||
Inventory | 2,276,677 | 1,660,710 | ||||||
Investments | - | 1,944,464 | ||||||
Prepaid expenses | 581,085 | 153,455 | ||||||
Total Current Assets | 14,902,260 | 8,723,730 | ||||||
Long-Term Assets: | ||||||||
Property and equipment, net | 230,971 | 143,079 | ||||||
Intangible asset, net | 988,029 | 1,050,022 | ||||||
Total Long-Term Assets | 1,219,000 | 1,193,101 | ||||||
Total Assets | $ | 16,121,260 | $ | 9,916,831 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current Liabilities: | ||||||||
Accounts payable and accrued expenses | $ | 572,297 | $ | 1,449,582 | ||||
Accrued contract loss provision | 500,000 | - | ||||||
Accrued legal settlement | 135,000 | - | ||||||
Unearned revenue | 130,000 | 200,109 | ||||||
Other liabilities | 36,787 | 13,528 | ||||||
Total Current Liabilities | 1,374,084 | 1,663,219 | ||||||
Total Liabilities | 1,374,084 | 1,663,219 | ||||||
Commitments and contingencies (Note 10) | ||||||||
Stockholders' Equity | ||||||||
Preferred stock: 50,000,000 Convertible Series D preferred shares authorized; par value $0.0001 per share, nil issued and outstanding at December 31, 2023 and 2022, respectively | - | - | ||||||
Common stock: 200,000,000 common shares authorized, par value $0.0001 per share, 132,667,107 and 126,702,545 shares issued and outstanding at December 31, 2023 and 2022, respectively | 13,266 | 12,669 | ||||||
Additional paid-in capital | 30,684,943 | 16,110,221 | ||||||
Accumulated deficit | (15,953,504 | ) | (7,849,982 | ) | ||||
Accumulated other comprehensive income (loss) | 2,471 | (19,296 | ) | |||||
Total Stockholders' Equity | 14,747,176 | 8,253,612 | ||||||
Total Liabilities and Stockholders' Equity | $ | 16,121,260 | $ | 9,916,831 | ||||
374 Water Inc. and Subsidiaries
Consolidated Statements of Operations
For the years ended December 31, | ||||||||
| 2023 | 2022 | |||||||
Revenue | $ | 743,952 | $ | 3,015,521 | ||||
Cost of revenues | (1,852,208 | ) | (2,679,020 | ) | ||||
Gross margin | (1,108,256 | ) | 336,501 | |||||
Operating Expenses | ||||||||
Research and development | 1,496,129 | 1,113,500 | ||||||
Compensation and related expenses | 2,854,494 | 1,644,861 | ||||||
Professional fees | 508,795 | 768,548 | ||||||
General and administrative | 2,675,202 | 1,565,723 | ||||||
Total Operating Expenses | 7,534,620 | 5,092,632 | ||||||
Loss from Operations | (8,642,876 | ) | (4,756,131 | ) | ||||
Other Income | ||||||||
Interest income | 446,669 | 67,067 | ||||||
Other income (expense) | 92,685 | (903 | ) | |||||
Total Other Income, net | 539,354 | 66,164 | ||||||
Net Loss before Income Taxes | (8,103,522 | ) | (4,689,967 | ) | ||||
Provision for Income Taxes | - | - | ||||||
Net Loss | $ | (8,103,522 | ) | $ | (4,689,967 | ) | ||
Other comprehensive income (loss) | ||||||||
Unrealized losses on marketable securities | - | (18,968 | ) | |||||
Foreign currency translation | 2,799 | (328 | ) | |||||
Total other comprehensive income (loss) | 2,799 | (19,296 | ) | |||||
Total comprehensive loss | (8,100,723 | ) | (4,709,263 | ) | ||||
Net Loss per Share - Basic and Diluted | $ | (0.06 | ) | $ | (0.04 | ) | ||
Weighted Average Common Shares Outstanding - Basic and Diluted | 130,367,662 | 126,641,536 | ||||||
374 Water Inc. and Subsidiaries
Consolidated Statements of Cash Flows
For the years ended December 31, 2023 and 2022
| For the years ended | ||||||||
| 2023 | 2022 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net Loss | $ | (8,103,522 | ) | $ | (4,689,967 | ) | ||
Adjustments to reconcile net loss to net cash used in operations: | ||||||||
Depreciation and amortization expense | 85,816 | 67,573 | ||||||
Stock-based compensation | 925,181 | 610,741 | ||||||
Issuance of restricted stock for services | 71,200 | - | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (64,792 | ) | - | |||||
Other receivables | (39,749 | ) | - | |||||
Unbilled accounts receivable | (576,389 | ) | (918,164 | ) | ||||
Inventory | (615,967 | ) | (1,660,710 | ) | ||||
Prepaid expense and other assets | (427,630 | ) | 65,011 | |||||
Accounts payable and accrued expenses | (877,285 | ) | 1,386,601 | |||||
Contract loss provision | 500,000 | - | ||||||
Accrued legal settlement | 135,000 | - | ||||||
Unearned revenue | (70,109 | ) | 200,109 | |||||
Other liabilities | 23,259 | (9,862 | ) | |||||
Net cash used in operating activities | (9,034,987 | ) | (4,948,668 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Purchase of property, plant, and equipment | (105,990 | ) | (144,567 | ) | ||||
Purchases of marketable securities | - | (1,963,432 | ) | |||||
Proceeds from marketable securities | 1,963,432 | - | ||||||
Increase in intangible assets | (5,725 | ) | (52,292 | ) | ||||
Net cash provided by (used in) investing activities | 1,851,717 | (2,160,291 | ) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Proceeds from the exercise of options and warrants | 137,500 | 25,049 | ||||||
Proceeds from the issuance of common stock | 13,441,438 | - | ||||||
Net cash provided by financing activities | 13,578,938 | 25,049 | ||||||
Effect of exchange rates on cash | 2,799 | (328 | ) | |||||
NET INCREASE (DECREASE) IN CASH | 6,398,467 | (7,084,238 | ) | |||||
CASH - Beginning of year | 4,046,937 | 11,131,175 | ||||||
CASH - End of year | $ | 10,445,404 | $ | 4,046,937 | ||||
SUPPLEMENTAL CASH FLOW DISCLOSURES: | ||||||||
Cash paid for interest | $ | - | $ | - | ||||
Cash paid for taxes | $ | - | $ | - | ||||
NON-CASH INVESTING ACTIVITIES: | ||||||||
Change in unrealized loss on AFS investment securities | $ | - | $ | (18,968 | ) | |||
Transfers of investment securities from AFS to HTM | $ | 1,963,432 | $ | - | ||||
Amortization of AFS investment securities unrealized loss in AOCI into interest income as yield adjustment | $ | 18,968 | - | |||||
| Last Trade: | US$0.69 |
| Daily Change: | 0.0024 0.35 |
| Daily Volume: | 250,121 |
| Market Cap: | US$97.920M |
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