374Water, Inc. Q3 FY2024 earnings call

• Technology: AirSCWO system is a cleantech solution for organic waste destruction. It includes pre and post-treatment systems. There are four commercial scale models (AS1, AS6, AS30, AS100+). Substantial improvements to the system have advanced commercialization across waste streams, including processing solid and liquid wastes. • Market Opportunities: Global market for AirSCWO is hundreds of billions. Focus on U.S. market with backlog/pipeline over $1.8 billion. Municipal backlog >$600M, federal >$900M, industrial >$300M. Markets include municipal, federal, industrial, TSDF. • Sales Models: Offer capital purchase, lease, destruction-as-a-service (DaaS). • Funding and Expansion: Actively raising capital. Plan to expand engineering, field, and manufacturing teams; hire key personnel; establish manufacturing facility; build AS1 and AS6 units; form industry advisory board.

For the nine months of 2024, the company generated revenue of $434,000, compared to approximately $864,000 for the nine months of 2023. Direct costs declined due to assembly and fabrication work on sold units, offset by an increase in service revenues from treatability studies. Total operating expenses increased from $5.2 million in the first nine months of 2023 to $7.8 million in the first nine months of 2024, driven by increases in general and administrative, professional fees, and research and development expenses.

• Anticipate recognizing revenue from the Orlando deployment during Q4 2024. • Backlog and pipeline of $1.8 billion in near-term capital sale and DaaS revenue opportunities require capital to execute.

Q: Given the election, if the Trump administration curtails EPA's ability to regulate PFAS, how would that play out?

A: Chris Gannon stated the train has left the station on PFAS issues, and any delays wouldn't materially impact the opportunity set.

Q: Any changes in work with DoD under new leadership?

A: Chris Gannon said no material changes seen, with DoD still focused on cleaning up contaminated facilities.

Q: Details on logistics and operations at the Orlando facility, percentage of PFAS removal, and customer demonstrations?

A: Orlando facility is fully operational. Conducting demonstrations, focusing on biosolids processing. Customers look at continuous flow stability, waste input and output, PFAS destruction efficacy.

Q: How long is the Factory Acceptance Test expected to take for the Orange County Sanitation unit?

A: Chris Gannon said it's a day test followed by shipping based on results.