374Water (SCWO) Sidoti Micro-Cap Virtual Conference summary

Technology overview and market need

• AirSCWO technology uses supercritical water oxidation to destroy hazardous and non-hazardous organic waste, producing safe water, inert minerals, and heat energy for reuse.

• Addresses growing demand for alternatives to incineration, landfilling, and other traditional waste management methods, especially with rising PFAS concerns and litigation.

• Can augment or replace existing infrastructure in municipal, federal, and industrial markets, with notable interest from large municipal clients.

• Capable of destroying a wide range of waste streams, including biosolids, landfill leachate, firefighting foam, plastics, and lithium-ion battery waste.

• Technology achieves destruction rates up to 99.9% or higher, leaving no waste byproducts.

Company history and recent developments

• Originated at Duke University and spun out after developing the first commercial-scale system.

• Formed a key partnership with Merrell Bros in 2021 and relocated operations to Orlando, including manufacturing.

• Went public via reverse merger in 2022 and uplisted to Nasdaq the same year.

• New leadership, including CEO and CFO, joined in 2024 to drive transition from late-stage venture to growth company.

• Infrastructure and team expanded in 2024 to support scaling and revenue generation.

Business model, growth strategy, and financial outlook

• 2024 focused on scaling, infrastructure, and demonstrations; 2025 targets converting backlog to revenue and expanding Destruction as a Service.

• Actively selling technology and expects to double employee base in the first half of the year.

• Backlog and pipeline in municipal and federal markets total over $1.5 billion, with $15 million in current backlog.

• Exploring project financing, equity, and debt to fund growth; sufficient capital for current year, with breakeven targeted through revenue growth.

• Revenue goals and key metrics outlined in shareholder communications, with focus on substantial revenue delivery in 2025.