DURHAM, NC / ACCESSWIRE / August 4, 2022 / 374Water Inc. (NASDAQ:SCWO), a global cleantech and social impact company, today provided a business update and reports its financial results for the quarter ended June 30, 2022.

The second quarter was marked by meaningful progress. Q2 and YTD Highlights:

• Revenue for the second quarter of 2022 was $1.03 million compared to $14,600 for the same quarter of 2021, an increase of 6,958%.
• 374Water and its manufacturing partner Merrell Bros., advanced the development of the AirSCWO™ 6 system - a decentralized, prefabricated, compact, and modular solution for sustainable wet waste management. Manufacturing of the first commercial unit, which has already been sold, is underway and expected to be completed in Q4 2022.
• Uplisted to the Nasdaq Capital Market ('Nasdaq') under the symbol SCWO.
• Entered into a Memorandum of Understanding (MOU) with Midway, the Houston-based real estate investment, development and management firm, whereby 374Water will provide innovative sustainable wastewater management systems for the company's future mixed-use developments.
• Established 374Water Sustainability Israel LTD, representing 374Water's first global subsidiary. The company is launching this new subsidiary as a sustained initiative to expand its presence and conduct business with partners in Israel. The formation of the subsidiary follows the Binational Industrial Research and Development (BIRD) Foundation's selection of 374Water to receive a $900,000 grant for a cleantech project with Environmental Services Company, Ltd. in Israel
• Announced that Orange County Sanitation District ('OC San'), of Fountain Valley, California, has purchased the first municipal AirSCWO™ system as part of an agreement to demonstrate a commercial-scale system to treat raw primary and secondary sludge, biosolids, and food waste.
• Appointed Israel Abitbol, CPA to Chief Financial Officer (CFO); John Hofmann, CPA to Senior Vice President and Sudhakar Viswanathan as Vice President of Sales.
• Appointed four new members of the Board of Directors: The company added the Honorable BJ Penn, Ms. Rene Estes, Mr. Itzik Polad and Mr. Jim Vanderhider as independent directors to the company board.

Kobe Nagar, CEO of 374Water Inc. commented,' The first half of 2022 has been transformational for 374Water. After almost a decade of R&D, testing, and validation at Duke University, we have sold our first commercial unit to a leading public agency responsible for 2.6 million people in Southern California. The AirSCWO™ 6 system is expected to be completed in the 4th quarter of 2022, and to become operational in early 2023.'

Mr. Nagar continued, 'In addition to the first system purchased by Orange County Sanitation District, we expanded our presence to Israel and entered into an MOU with Midway. Moreover, we made key appointments to further bolster our sales, operations, and management team, and board. These achievements culminated in our Nasdaq uplist in June. So far in 2022, we have $1.3 million in recognized revenue, a small feat as we continue to target a multi-billion dollar serviceable addressable market for sustainable waste management solutions. Looking ahead, based on sales feedback, we expect to see a positive correlation to purchase orders of commercial units once the AirSCWO™ 6 system is completed in Q4.'

Second Quarter ended June 30, 2022 Financial Results

Revenue for the second quarter of 2022 was $1.03 million compared to $14,600 for the same quarter of 2021, an increase of 6,958%. The increase in revenue during 2022 was primarily as a result of recognizing a portion of the revenue associated with the sale of our first AirSCWO system.

General and administrative expenses were $379,661 in the second quarter of 2022, compared to $53,308 in the second quarter of 2022. The change in the quarter is primarily associated with our increased insurance costs, marketing and business development expenses, dues and subscriptions, and stock-based compensation expenses.

Research and development expenses were $422,695 in the second quarter of 2022, compared to $124,675 in the second quarter of 2021. The change in the quarter is primarily associated with the increase in engineering expenses following the 374Water merger with PowerVerde Inc.

Net loss was $1.2 million, or $(0.01) per basic and diluted share, compared to a net loss of $1.8 million, or ($0.02) per basic diluted share, in the second quarter of 2021.

Total cash and investments was $10.1 million as of June 30, 2022, compared to $11.1 million at December 31, 2021. Total current assets were $10.9 million and current liabilities were $1.4 million as of the same date, compared to $11.3 million and $86,371 respectively, in the year-ended reporting period.

For more on AirSCWO™ or about our team, visit 374Water.com or 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.

About 374Water

374Water Inc. is a publicly-traded (Nasdaq:SCWO), 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.

374Water Investor Contact:
James Carbonara
[email protected]

374Water Media Contact:
Ashley Willis
[email protected]

PART I FINANCIAL INFORMATION

Item 1. Condensed Consolidated Financial Statements

374Water Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
June 30, 2022 (Unaudited) and December 31, 2021

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

374Water, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
For the three and six months ended June 30, 2022 and 2021
(Unaudited)

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

374Water Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
For the six months ended June 30, 2022 and 2021 (Unaudited)

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

SOURCE: 374Water Inc.