374Water (SCWO) Q4 2024 earnings summary

Executive summary

• Advanced commercialization of AirSCWO waste destruction technology, targeting municipal, federal, and industrial markets, with new deployments and demonstrations planned for 2025.

• Relocated operations to Orlando, expanded into a new BSL-1 laboratory, and established Waste Destruction Services.

• Secured major contracts, including a multi-phase AFFF destruction contract with UNC Chapel Hill and North Carolina, and participated in Department of Defense projects.

• Expanded leadership with new CFO and CTO, and grew engineering and manufacturing teams.

• Closed a $12.2 million registered direct offering to fund growth and commercialization.

Financial highlights

• 2024 revenue was $445,000, down from $743,000 in 2023, with a net loss of $12.4 million, up from $8.1 million, and operating expenses rising 59% to $11.9 million.

• Gross profit remained negative, with cost of revenues exceeding revenues in both years.

• Cash and cash equivalents at year-end were $10.7 million, with working capital of $11.5 million.

• SG&A expenses increased to $3.8 million and R&D to $2.1 million year-over-year.

• Completed a $12.2 million registered direct offering in Q4 2024.

Outlook and guidance

• Management projects 2025 revenue of $4–6 million and a five-year target of $250–500 million, contingent on successful deployments and market adoption.

• Plans to expand manufacturing capacity and launch initial Waste Destruction Services sites in 2025.

• Anticipates double-digit revenue growth and material contract wins in 2025.

• Projections are subject to operational, regulatory, and market uncertainties.