374Water Inc. reported its financial results for the nine months ended September 30, 2024, revealing significant changes in revenue, expenses, and overall financial health compared to the previous fiscal period.

For the three months ended September 30, 2024, the company generated revenues of $81,490, a substantial increase of 563% from $12,290 in the same period of 2023. However, for the nine months ended September 30, 2024, total revenues decreased by 50% to $433,589, down from $863,611 in the prior year. This decline was primarily attributed to a significant drop in equipment revenue, which fell from $833,294 to $305,869, while service revenue also decreased from $30,317 to $127,720.

The cost of revenues for the three months ended September 30, 2024, was $42,404, a notable decrease from $178,680 in the same period of 2023, reflecting reduced costs associated with sold systems as manufacturing and testing neared completion. Despite this, total operating expenses surged to $2,780,825 for the three months ended September 30, 2024, up 62% from $1,715,994 in the prior year. This increase was driven by higher general and administrative expenses, which rose due to increased stock-based compensation and professional fees related to legal matters.

The company reported a loss from operations of $(2,741,739) for the three months ended September 30, 2024, compared to $(1,882,384) in the same period of 2023. The net loss for the three months was $(2,701,817), a 56% increase from $(1,731,431) in the prior year. For the nine months ended September 30, 2024, the net loss was $(7,658,602), up from $(5,022,351) in the same period of 2023.

As of September 30, 2024, the company’s current assets were $6,078,816, a significant decrease from $14,902,260 at the end of 2023. Total assets also fell to $10,060,059 from $16,121,260, while total stockholders’ equity decreased to $8,465,407 from $14,747,176. The accumulated deficit increased to $23,612,106.

The company has indicated a need for additional financing to continue operations, having raised only approximately $12,000 through an at-the-market equity offering during the nine months ended September 30, 2024, compared to $13,400,000 raised in the same period of 2023. Management has expressed substantial doubt about the company's ability to continue as a going concern within the next year.

Strategically, 374Water is focused on commercializing its AirSCWO technology, which aims to provide innovative solutions for waste treatment. The company has also undergone leadership changes, with a new CEO appointed in April 2024, and has entered into new agreements for manufacturing services.