374Water Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>374Water Inc. filed its 2023 10-K report detailing its financial performance and business operations.</b>

AI Summary

374Water Inc. (SCWO) filed a Annual Report (10-K) with the SEC on March 29, 2024. 374Water Inc. reported its fiscal year 2023 results on March 29, 2024. The company's business address is 701 W. Main Street, Suite 410, Durham, NC 27701. 374Water Inc. was formerly known as POWERVERDE, INC. and VYREX CORP. The company's SIC code is 3621 (MOTORS & GENERATORS). The filing covers the fiscal year ending December 31, 2023.

Why It Matters

For investors and stakeholders tracking 374Water Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of 374Water Inc.'s financial health, operational activities, and strategic direction for the fiscal year 2023. Investors and stakeholders can use this report to assess the company's performance, identify potential risks, and make informed investment decisions.

Risk Assessment

Risk Level: — 374Water Inc. shows moderate risk based on this filing. The company's financial performance and future prospects are subject to significant risks, including its limited operating history and reliance on future financing, as indicated by its status as a blank check company and its ongoing need for capital.

Analyst Insight

Monitor 374Water Inc.'s progress in commercializing its technology and securing further funding to support its growth initiatives.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-03-29 — Filing Date (Date of submission)
• 68 — Public Document Count (Number of documents in the filing)

Key Players & Entities

• 374Water Inc. (company) — Filer name
• POWERVERDE, INC. (company) — Former company name
• VYREX CORP (company) — Former company name
• 701 W. Main Street, Suite 410, Durham, NC 27701 (address) — Business address
• NASDAQ (exchange) — Stock exchange
• Duke University (organization) — Mentioned in relation to patents

FAQ

Risk Factors

• Reliance on Future Financing [high — financial]: The company's ability to continue as a going concern is dependent on its ability to obtain necessary financing and achieve profitable operations.
• Limited Operating History [medium — operational]: As a relatively new company, 374Water Inc. has a limited operating history, which may impact its ability to execute its business plan.
• Environmental Regulations [medium — regulatory]: The company's operations are subject to various environmental laws and regulations, which could impact costs and compliance.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-03-29: Filing Date — Date the 10-K was officially submitted to the SEC.

Glossary

10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC), which gives a comprehensive summary of a company's financial performance. (This filing provides the official annual financial and operational overview of 374Water Inc.)

Blank Check Company

A shell company that is set up to acquire or merge with an existing company. (Indicates a specific type of corporate structure that may have implications for future growth and financing.)

Key Financial Figures

• $0.0001 — (g) of the Act: Common Stock, par value $0.0001 per share Indicate by check mark if t
• $1.0 billion — otal annual gross revenues of less than $1.0 billion during its most recently completed fisc
• $9.0 billion — s expected to generate revenue of above $9.0 billion by the end of 2026, growing at a Compou

Filing Documents

• scwo_10k.htm (10-K) — 1059KB
• scwo_ex1013.htm (EX-10.13) — 25KB
• scwo_ex211.htm (EX-21.1) — 2KB
• scwo_ex231.htm (EX-23.1) — 2KB
• scwo_ex311.htm (EX-31.1) — 12KB
• scwo_ex312.htm (EX-31.2) — 12KB
• scwo_ex321.htm (EX-31.1) — 4KB
• scwo_ex322.htm (EX-31.2) — 4KB
• scwo_ex97.htm (EX-97) — 31KB
• 0001654954-24-003957.txt (&nbsp;) — 5068KB
• scwo-20231231.xsd (EX-101.SCH) — 41KB
• scwo-20231231_lab.xml (EX-101.LAB) — 305KB
• scwo-20231231_cal.xml (EX-101.CAL) — 45KB
• scwo-20231231_pre.xml (EX-101.PRE) — 246KB
• scwo-20231231_def.xml (EX-101.DEF) — 117KB
• scwo_10k_htm.xml (XML) — 720KB

RISK FACTORS

RISK FACTORS 12 ITEM 1B. UNRESOLVED STAFF COMMENTS. 34 ITEM 1C. CYBERSECURITY 34 ITEM 2. PROPERTIES. 35 ITEM 3. LEGAL PROCEEDINGS. 35 ITEM 4. MINE SAFETY DISCLOSURES. 35 PART II ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES. 36 ITEM 6.

SELECTED FINANCIAL DATA

SELECTED FINANCIAL DATA. 37 ITEM 7.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. 37 ITEM 7A.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK. 41 ITEM 8.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA. 41 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE. 42 ITEM 9A.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES. 42 ITEM 9B. OTHER INFORMATION. 42 PART III ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE. 43 ITEM 11.

EXECUTIVE COMPENSATION

EXECUTIVE COMPENSATION. 43 ITEM 12.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS. 43 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE. 43 ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES. 43 PART IV ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES. F-1 2 Table of Contents JUMPSTART OUR BUSINESS STARTUPS ACT DISCLOSURE We qualify as an "emerging growth company," as defined in Section 2(a)(19) of the Securities Act by the Jumpstart Our Business Startups Act (the "JOBS Act"). An issuer qualifies as an "emerging growth company" if it has total annual gross revenues of less than $1.0 billion during its most recently completed fiscal year, and will continue to be deemed an emerging growth company until the earliest of: the last day of the fiscal year of the issuer during which it had total annual gross revenues of $1.0 billion or more; the last day of the fiscal year of the issuer following the fifth anniversary of the date of the first sale of common equity securities of the issuer pursuant to an effective registration statement; the date on which the issuer has, during the previous three-year period, issued more than $1.0 billion in non-convertible debt; or the date on which the issuer is deemed to be a "large accelerated filer," as defined in Section 240.12b-2 of the Exchange Act. As an emerging growth company, we are exempt from various reporting requirements. Specifically, we are exempt from the following provisions: Section 404(b) of the Sarbanes-Oxley Act of 2002, which requires evaluations and reporting related to an issuer's internal controls; Section 14A(a) of the Exchange Act, which requires an issuer to seek shareholder approval of the compensation of its executives not less frequently than once every three years; and Section 14A(b) of the Exchange Act, which requires an issuer to seek shareholder approval of its so-called "golden parachute" compensation, or compensation upon term

BUSINESS

ITEM 1. BUSINESS. Overview 374Water Inc. (the "Company", "374Water", "We", or "Our") offers a technology that transforms wet wastes such as sewage sludge, biosolids, food waste, hazardous and non-hazardous waste, and forever chemicals (e.g., "per-and polyfluoroalkyl substances" or "PFAS") into recoverable resources by focusing on waste as a valuable resource for water, energy, and minerals. Our Technology We have developed AirSCWO, a proprietary treatment system based on "supercritical water oxidation." AirSCWO leverages the unique properties of water in its supercritical phase (above 374 o C and above a barometric pressure of 221 atm). The supercritical phase produces unique properties of water which when combined with air convert organic matter to energy and minerals that are safe byproducts that can be recovered and put to economically productive use. We call our systems AirSCWO , as it utilizes a combination of ambient air and the supercritical water oxidation process. Because our AirSCWO systems convert any organic material, we believe the AirSCWO systems have the capability of treating a variety of complex, hazardous and non-hazardous wet waste streams, thus creating opportunities for multiple applications in diverse market verticals on an international scale. The technology is addressing environmental challenges that the Company believes, until now, have been considered insurmountable due to science/engineering and/or cost barriers. For example, we believe our systems can treat certain types of PFAS. 4 Table of Contents Products and Services We believe AirSCWO systems have the ability to address environmental issues across multiple market verticals. Our revenue model includes both capital equipment sales and long- term service agreements. Our sales and market strategy is a combination of direct customer and channel partner sales routes, depending on the specific market and territory. Additionally, the AirSCWO systems may be sold directly to othe

View Full Filing

View this 10-K filing on SEC EDGAR