374Water Inc (SCWO) 2024 Q3 法說會逐字稿

Greetings and welcome to the 374Water Third Quarter 2024 Earnings Call. (Operator Instructions) As a reminder, the conference is being recorded. I would now like to turn the call over to our host, Heather Crowell, Investor Relations.

問候並歡迎參加 374Water 2024 年第三季財報電話會議。（操作員指示）提醒一下，會議正在錄音。現在，我想將電話轉給我們的主持人、投資者關係部門 Heather Crowell。

Hello, everyone, and welcome to 374Water's third quarter 2024 earnings call. My name is Heather Crowell, and I'm here today with our President and Chief Executive Officer, Chris Gannon, and Chief Financial Officer, Adrienne Anderson.

大家好，歡迎參加 374Water 2024 年第三季財報電話會議。我的名字是 Heather Crowell，今天和我一起來這裡的還有我們的總裁兼執行長 Chris Gannon 和財務長 Adrienne Anderson。

During today's call, we may make projections and other forward-looking statements under the Safe Harbor provisions contained in the Private Securities Litigation Reform Act of 1995 regarding future events or the future financial performance of the company. These statements may discuss our business, economic, and market outlook; growth expectations; new products and their performance; cost structure; and business strategy. Forward-looking statements are based on information currently available to us and on management's beliefs, assumptions, estimates, and our projections. Forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties, and other factors.

在今天的電話會議中，我們可能會根據 1995 年私人證券訴訟改革法案中的安全港條款對未來事件或公司未來財務表現做出預測和其他前瞻性陳述。這些聲明可能會討論我們的業務、經濟和市場前景；增長預期；新產品及其性能；成本結構；和商業策略。前瞻性陳述是基於我們目前掌握的資訊以及管理階層的信念、假設、估計和我們的預測。前瞻性陳述並不能保證未來的業績，並且會受到某些風險、不確定性和其他因素的影響。

We refer you to documents the company files from time to time with the SEC, specifically, the company's Form10-K and 10-Q. These documents identify important factors that could cause actual results to differ materially from those contained in our projections or forward-looking statements. All statements made during this call are made only as of today, November 14, 2024, and the company expressly disclaims any intent or obligation to update any forward-looking statements made during this call to reflect subsequent events or circumstances unless otherwise required by law.

我們請您參閱本公司不時向美國證券交易委員會提交的文件，具體來說，是本公司的 Form10-K 和 10-Q。這些文件確定了可能導致實際結果與我們的預測或前瞻性陳述有重大差異的重要因素。本次電話會議中的所有聲明均截至今天（2024 年 11 月 14 日）為止，本公司明確表示不打算或有義務更新本次電話會議中的任何前瞻性聲明以反映後續事件或情況，除非法律另有要求。

Note that our earnings release and transcript will be available on the investor relations page of our website.

請注意，我們的收益報告和成績單將在我們網站的投資者關係頁面上發布。

At this point, I will turn the call over to our President and CEO, Chris Gannon.

現在，我將把電話轉給我們的總裁兼執行長 Chris Gannon。

Thank you, Heather. Good morning, everyone, and thank you for joining us today.

謝謝你，希瑟。大家早安，感謝大家今天的參與。

Over the past quarter, we have continued executing on our strategic initiatives, taking major strides towards the commercialization of our AirSCWO technology to capture the expansive and growing markets for destruction of organic waste estimated to exceed [250 billion] globally. Our vision remains clear and executable, namely to deliver a scalable solution for organic waste destruction across municipal, federal, industrial, and TSDF sectors.

在過去的一個季度中，我們繼續執行我們的戰略計劃，朝著我們的 AirSCWO 技術商業化邁出了重要一步，以佔領全球預計超過 [2500 億] 的有機廢物銷毀這一不斷增長的市場。我們的願景仍然清晰且可執行，即為市政、聯邦、工業和 TSDF 部門提供可擴展的有機廢棄物銷毀解決方案。

Today we will discuss our technology and our major advancements towards commercialization, our recent deployment to Orlando, upcoming demonstrations, recent waste stream destruction successes, as well as the market opportunities we are pursuing, including near-term destruction-as-a-service revenue opportunities, our go-forward capital strategy, and our growth strategy.

今天，我們將討論我們的技術和商業化方面取得的重大進展、我們最近在奧蘭多的部署、即將進行的演示、最近廢物流銷毀的成功，以及我們正在追求的市場機會，包括近期的銷毀即服務收入機會、我們的未來資本戰略和我們的增長戰略。

As in prior calls, I will start with the discussion of our technology. We believe our AirSCWO system sits at the forefront of clean tech innovation, offering a vital solution to global wastewater treatment and organic waste destruction challenges. The core of our AirSCWO system is our patented super critical water oxidation technology designed to permanently destroy and mineralize a broad spectrum of organic, non-hazardous, and hazardous waste streams; producing safe, dischargeable clean water, safe mineral affluent, safe vent gas, and recoverable heat energy.

與之前的電話會議一樣，我將首先討論我們的技術。我們相信，我們的 AirSCWO 系統處於清潔技術創新的前沿，為全球廢水處理和有機廢棄物銷毀挑戰提供了重要的解決方案。我們的 AirSCWO 系統的核心是我們專利的超臨界水氧化技術，旨在永久性地破壞和礦化各種有機、無害和危險廢物流；生產安全可排放的清潔水，安全的礦產資源，安全的排氣和可回收的熱能。

Importantly, AirSCWO eliminates recalcitrant organic waste, including emerging contaminants like PFAS in the SCWO process without creating waste byproducts. Our AirSCWO technology is designed to destroy organic contaminants across municipal, federal, and industrial waste streams. Traditional wastes include biosolids, landfill leachate, oily sludge, home fractionate, military waste, granular activated carbon, ion exchange resin, and other organic industrial wastes; while emerging contaminants include PFAS, like AFFF firefighting foam, pharmaceuticals, pesticides, and plastics.

重要的是，AirSCWO 可以消除難降解有機廢棄物，包括 SCWO 過程中的 PFAS 等新興污染物，而不會產生廢棄副產品。我們的 AirSCWO 技術旨在消除市政、聯邦和工業廢物流中的有機污染物。傳統廢棄物包括生物固體、垃圾滲濾液、含油污泥、生活分餾物、軍事廢棄物、顆粒活性碳、離子交換樹脂和其他有機工業廢棄物；而新興污染物包括 PFAS，如 AFFF 滅火泡沫、藥品、殺蟲劑和塑膠。

In addition to our AirSCWO system, our technology incorporates certain pre- and post-treatment systems. These solutions ensure our AirSCWO system receives waste in the right form for ease of processing and destruction. Pre-treatment systems consist of macerators and/or crushers, screens, mixing tanks, chemical feed, and dewatering solutions, while post-treatment systems consist of clarifiers and filters. As we encounter new forms of waste, the pre- and post-treatment processes will be adjusted and/or refined to accommodate the particulars of these waste streams.

除了我們的 AirSCWO 系統之外，我們的技術還結合了某些預處理和後處理系統。這些解決方案確保我們的 AirSCWO 系統以正確的形式接收廢棄物，以便於處理和銷毀。預處理系統由粉碎機和/或破碎機、篩機、混合槽、化學進料和脫水溶液組成，而後處理系統則由澄清器和過濾器組成。當我們遇到新形式的廢棄物時，預處理和後處理過程將會進行調整和/或改進，以適應這些廢棄物流的特殊性。

We plan to offer four commercial scale AirSCWO models and corresponding pre- and post-treatment technologies to fully support our end customers' organic waste destruction needs. These AirSCWO models consist of our AS1, AS6, AS30, and larger capacity systems like our AS100s and larger. Our highly mobile AS1 unit is designed to process up to one metric ton per day of wet waste and is ideal for on-site demonstrations, cleanups, and small-scale destruction-as-a-service or DAAS projects.

我們計劃提供四種商業規模的 AirSCWO 模型和相應的預處理和後處理技術，以全面支援我們的最終客戶的有機廢棄物銷毀需求。這些 AirSCWO 型號包括我們的 AS1、AS6、AS30 以及更大容量的系統（例如我們的 AS100 及更大容量的系統）。我們高度機動的 AS1 裝置旨在處理每天多達一公噸的濕廢物，非常適合現場演示、清理和小規模銷毀即服務或 DAAS 項目。

Our mobile AS6 unit is designed to process up to six metric tons per day of wet waste and is ideal for smaller municipal, federal, and industrial sites. We plan to utilize this mobile unit for both permanent on-site destruction and mobile DAAS opportunities. Our AS30 is designed to process up to 30 metric tons of wet waste a day and is semi-permanent. We believe this unit is ideal for mid-sized municipal, federal, and industrial sites, as well as regional TSDFs and landfills.

我們的移動式 AS6 裝置設計用於處理每天最多 6 公噸的濕垃圾，非常適合較小的市政、聯邦和工業場所。我們計劃利用這個移動裝置進行永久性現場銷毀和移動 DAAS。我們的 AS30 設計用於每天處理多達 30 公噸的濕垃圾，並且是半永久性的。我們相信該裝置非常適合中型市政、聯邦和工業場所以及區域 TSDF 和垃圾掩埋場。

Finally, our largest bespoke AS100 systems will be designed to process 100 or more tons of wet waste per day and would be permanent installations. We believe these systems will be well suited for the largest municipal wastewater treatment facilities, like the City of Orlando and Orange County, as well as large industrial facilities which process large volumes of waste daily.

最後，我們最大的客製化 AS100 系統將設計用於每天處理 100 噸或更多的濕垃圾，並且將是永久性裝置。我們相信這些系統將非常適合最大的市政污水處理設施，如奧蘭多市和奧蘭治縣，以及每天處理大量廢物的大型工業設施。

Over the past 6 months, we have made substantial improvements to our AirSCWO system, which has materially advanced our technology towards commercialization across multiple waste streams. Our technology effectively processes solid waste, which can be pre-processed into slurries for treatment, including wastewater sludges and biosolids; spent granular activated carbon or GAC; ion-exchange resins; and hard-to-degrade plastics and liquid wastes, such as firefighting foam or AFFF, industrial solvents, and foamate streams.

在過去的 6 個月中，我們對 AirSCWO 系統進行了實質的改進，這大大推動了我們的技術在多種廢物流中的商業化發展。我們的技術可以有效處理固體廢棄物，包括廢水污泥和生物固體，可以預處理成漿液進行處理；廢顆粒活性碳或GAC；離子交換樹脂；以及難以降解的塑膠和液體廢物，例如滅火泡沫或 AFFF、工業溶劑和泡沫流。

Recent system improvements include upgrades to our pre-treatment systems, feedstock delivery to our reactor, water process controls, mixing geometry and atmospheric monitoring, controls and automation systems, AirSCWO processing and post-treatment to name just a few of the significant improvements we have made to our system recently. These and other system upgrades contributed to our confidence in completing the commercial scale deployment to Orlando.

最近的系統改進包括對我們的預處理系統、向我們的反應器輸送原料、水過程控制、混合幾何和大氣監測、控制和自動化系統、AirSCWO 處理和後處理的升級，這些只是我們最近對我們的系統所做的一些重大改進。這些和其他系統升級增強了我們完成奧蘭多商業規模部署的信心。

This deployment has allowed us to process biosolids at scale in a real-world wastewater treatment facility environment, as well as begin to execute on a range of waste destruction demonstrations for clients, and test additional liquid and solid waste streams at scale to prove our system's capabilities across multiple organic waste streams.

此次部署使我們能夠在真實的廢水處理設施環境中大規模處理生物固體，並開始為客戶執行一系列廢物銷毀演示，並大規模測試額外的液體和固體廢物流，以證明我們的系統在多種有機廢物流中的能力。

Through our technology development and testing processes, we have been working along parallel paths related to sludge and liquid waste. We are now pursuing near-term revenue opportunities across both waste streams. I will discuss these revenue opportunities shortly.

透過我們的技術開發和測試流程，我們一直沿著與污泥和液體廢棄物相關的平行路徑進行工作。我們目前正在尋求透過這兩種廢物流尋找近期創收機會。我將很快討論這些收入機會。

In September, we announced the successful deployment, commissioning, and full operability of our AirSCWO system, which consists of our core AirSCWO technology and our biosolids dewatering unit at the City of Orlando's Iron Bridge Regional Water Reclamation Facility, which offers us a real-world stage to demonstrate our system. The Orlando deployment marks a major milestone in our technology commercialization journey and affords us the opportunity to process not only biosolids but also other solid and liquid municipal, federal, and industrial waste streams.

9 月，我們宣布成功部署、調試並全面運行我們的 AirSCWO 系統，該系統由我們的核心 AirSCWO 技術和位於奧蘭多市 Iron Bridge 區域水回收設施的生物固體脫水裝置組成，為我們提供了一個展示我們系統的真實舞台。奧蘭多的部署標誌著我們技術商業化過程中的一個重要里程碑，使我們有機會處理生物固體以及其他固體和液體的市政、聯邦和工業廢物流。

In fact, we are doing just that. We are executing various contracted demonstrations, as well as our own internal commercial scale waste destruction projects to advance our technology to further unlock other key market verticals. I will provide further updates on our Orlando deployment and next steps there in future calls.

事實上，我們正​​在這麼做。我們正在進行各種合約演示以及我們自己的內部商業規模廢物銷毀項目，以推進我們的技術，進一步解鎖其他關鍵垂直市場。我將在未來的電話會議中提供有關我們在奧蘭多的部署以及下一步的進一步更新。

Turning now to our Orange County Sanitation or OC San for short. As previously disclosed, we are building an AirSCWO system for delivery to OC San in 2025. Prior to this deployment, we will complete a factory acceptance test, and upon delivery, the system will undergo a six-month operational period managed by 374Water engineers, followed by another six-month operational period managed by OC San staff. We were pleased to host the team from OC San at the Orlando facility in October to show them the system in a real-world environment, and had a day of productive conversations about our strategy and ongoing partnership.

現在來談談我們的橘郡衛生局（Orange County Sanitation），簡稱 OC San。如前所述，我們正在建造 AirSCWO 系統，並於 2025 年交付給 OC San。在此次部署之前，我們將完成工廠驗收測試，交付後，系統將由 374Water 工程師管理進行為期六個月的運行期，然後再由 OC San 員工管理進行為期六個月的運行期。我們很高興在十月份在奧蘭多工廠接待了來自 OC San 的團隊，向他們展示了真實環境中的系統，並就我們的戰略和持續的合作關係進行了一天富有成效的對話。

As a reminder, following these successful demonstrations, the City of Orlando and OC San have announced their intentions to upgrade to our larger AS30 system and have already secured relevant funding. Following the AS30 installations, OC San also intends to purchase multiple AS100 or larger units to manage waste for their entire plant. The City of Orlando has expressed a similar intent.

提醒一下，在這些成功的演示之後，奧蘭多市和 OC San 已宣布他們打算升級到我們更大的 AS30 系統，並且已經獲得相關資金。繼安裝 AS30 之後，OC San 還打算購買多台 AS100 或更大的裝置來管理整個工廠的廢棄物。奧蘭多市也表達了類似的意向。

Now let's turn to materials that contain per and polyfluoroalkyl substances or PFAS for short, which are synthetic chemicals known for their persistence in the environment, which cause adverse effects in humans and animals. We have been hard at work developing our technology to effectively destroy PFAS waste streams. This work has paid off as our technology has successfully processed and destroyed a host of PFAS-contaminated wastes with destruction results north of 99.99% and more.

現在讓我們來談談含有全氟和多氟烷基物質（簡稱 PFAS）的材料，這些是合成化學物質，因其在環境中的持久性而聞名，會對人類和動物造成不利影響。我們一直在努力開發技術以有效消除 PFAS 廢物流。這項工作已經獲得了回報，因為我們的技術已經成功處理和銷毀了大量受 PFAS 污染的廢棄物，銷毀率達到 99.99% 以上。

One such PFAS contaminant is aqueous film forming foam or AFFF firefighting foam. Developed by the US Navy and 3M in the 1960s, AFFF is used to suppress Class B fires involving flammable liquids like gasoline, oil, and jet fuel. Since that time, AFFF has been widely used in state and local fire departments, military bases, airports, refineries, and chemical plants for fire suppression. AFFF is highly persistent, leading to long-term contamination of soil and water resources. Further, exposure to AFFF has been linked to various health issues, including cancers, immune system effects, birth defects, and developmental challenges in children.

一種這樣的 PFAS 污染物是水膜形成泡沫或 AFFF 滅火泡沫。AFFF 由美國海軍和 3M 公司於 20 世紀 60 年代開發，用於撲滅涉及汽油、油和噴氣燃料等易燃液體的 B 類火災。自那時起，AFFF 已廣泛應用於州和地方消防部門、軍事基地、機場、煉油廠和化工廠的滅火工作。AFFF具有很強的持久性，會導致土壤和水資源的長期污染。此外，接觸 AFFF 與各種健康問題有關，包括癌症、免疫系統影響、出生缺陷和兒童發展障礙。

Due to environmental and health concerns, several regulations have been enacted to limit or prohibit the use of AFFF. The National Defense Authorization Act for fiscal year 2020 mandated that the DoD phase out the use of PFAS containing AFFF by October 2024. In addition, various states have implemented bans or restrictions on AFFF use.

出於對環境和健康的考慮，已經頒布了多項法規來限製或禁止使用 AFFF。2020財政年度國防授權法案要求國防部在2024年10月之前逐步停止使用含有AFFF的PFAS。此外，各州都已實施禁止或限制使用 AFFF 的法令。

For example, California prohibited the sale or distribution of AFFF-containing PFAS starting January 1, 2022, and banned its use for training purposes. Importantly, many states across the US are also evaluating similar bans and are initiating programs that move towards destruction of their stockpiles of AFFF.

例如，加州從 2022 年 1 月 1 日起禁止銷售或分銷含有 AFFF 的 PFAS，並禁止將其用於培訓目的。重要的是，美國許多州也正在評估類似的禁令，並正在啟動銷毀水成泡沫 (AFFF) 庫存的計畫。

We have completed numerous internal AFFF destruction tests on our lab-scale system and commercial scale AS1 and AS6 systems, which have demonstrated 99.999% plus AFFF destruction results. These tests have also informed additional technological improvements to our AirSCWO system. Based on these successes and improvements, we now feel confident in pursuing near-term AFFF destruction-as-a-service revenue opportunities within the local, state, federal, and industrial markets.

我們已經在實驗室規模系統和商業規模 AS1 和 AS6 系統上完成了大量內部 AFFF 破壞測試，結果顯示 AFFF 破壞率達到 99.999% 以上。這些測試也為我們的 AirSCWO 系統提供了額外的技術改進。基於這些成功和改進，我們現在有信心在地方、州、聯邦和工業市場中尋求近期的 AFFF 銷毀即服務收入機會。

We are also advancing our development efforts to address GAC, IX, and foamate destruction. So far, we have experienced meaningful results and are currently focused on pre-treatment process changes to deliver these wastes in an easily processed form to our AirSCWO technology. We intend to continue to expand our testing of these waste streams in response to changing regulations to address PFAS in water and wastewater.

我們也正在推動開發工作以解決 GAC、IX 和泡沫鹽的破壞問題。到目前為止，我們已經取得了有意義的成果，目前正專注於預處理製程的改變，以便以易於處理的形式將這些廢棄物輸送到我們的 AirSCWO 技術中。為了回應針對水和廢水中的 PFAS 不斷變化的法規，我們打算繼續擴大對這些廢物流的測試。

Granular activated carbon, or GAC for short, is used by various industries for its absorption properties, including water treatment facilities, industry, pharmaceutical manufacturing, air purification systems, oil and gas, and environmental remediation firms. GAC is used to absorb contaminants from liquids and gasses. While GAC effectively removes contaminants, spent GAC can become a hazardous waste if it absorbs toxic substances. Improper disposal of spent GAC can lead to secondary environmental contamination.

顆粒活性碳（簡稱 GAC）因其吸收特性而被各行各業所採用，包括水處理設施、工業、製藥製造、空氣淨化系統、石油和天然氣以及環境修復公司。GAC 用於吸收液體和氣體中的污染物。儘管 GAC 可以有效去除污染物，但如果廢 GAC 吸收了有毒物質，則可能會變成危險廢物。廢 GAC 處理不當可能導致二次環境污染。

Ion exchange resins, or IX for short, are polymers used to remove ions from solutions, commonly employed in water softening and purification processes. Over time, these resins become saturated with contaminants are referred to as spent ion exchange resins. These resins are used in various industries including water treatment, chemical manufacturing, and nuclear power. Spent ion resins can become hazardous substances, making their disposal of potential environmental concern, as improper handling can lead to the release of toxic materials into the environment.

離子交換樹脂（簡稱 IX）是用來從溶液中去除離子的聚合物，常用於軟化和淨化水的過程。隨著時間的推移，這些樹脂會充滿污染物，稱為廢離子交換樹脂。這些樹脂用於水處理、化學品製造和核電等各個行業。廢離子樹脂可能會變成危險物質，其處理有潛在的環境問題，因為處理不當可能會導致有毒物質釋放到環境中。

Foam fractionation or foam frac of landfill leachate is a treatment process that concentrates pollutants such as PFAS and various organic contaminants from liquid waste into a foamate, making them easy to manage. While SCWO destroys organic pollutants, any heavy metals that may be present are not degraded. Instead, they are separated and captured in the stable, non-reactive inert form, allowing for safe disposal or potential recovery and reuse.

垃圾掩埋場滲濾液的泡沫分餾或泡沫壓裂是一種處理過程，它將液體廢物中的污染物（例如 PFAS 和各種有機污染物）濃縮到泡沫中，使其易於管理。儘管超臨界水氧化技術可以消除有機污染物，但其中可能存在的任何重金屬都不會被降解。相反，它們以穩定、無反應的惰性形式被分離和捕獲，從而可以安全處置或潛在的回收和再利用。

We have achieved great success running GAC, IX, foamate, and other industrial solvents at lab-scale and AS1 commercial scale and have seen the destruction levels greater than 99.99%. In the coming months, we will be running full destruction trials on our AS6 and anticipate similar destruction results.

我們在實驗室規模和 AS1 商業規模上運行 GAC、IX、泡沫酸鹽和其他工業溶劑取得了巨大成功，並且銷毀率已超過 99.99%。在接下來的幾個月裡，我們將對 AS6 進行全面破壞試驗，並預計會得到類似的破壞結果。

Now turning to our lab operations. Based on our internal technology development and customer needs, we moved our lab operations to a state-of-the-art Biosafety Level 1 laboratory in Morrisville, North Carolina. This new facility more than triples our lab testing capacity, enabling faster throughput and ability to handle more complex materials. We utilize this facility to complete initial lab-scale waste destruction tests for our customers to showcase the effectiveness of our AirSCWO technology and the super critical water oxidation process to destroy organic waste.

現在談談我們的實驗室操作。根據我們的內部技術開發和客戶需求，我們將實驗室營運轉移到北卡羅來納州莫里斯維爾的最先進的生物安全一級實驗室。這個新設施使我們的實驗室測試能力提高了兩倍多，從而提高了生產速度並能夠處理更複雜的材料。我們利用該設施為客戶完成初步實驗室規模的廢棄物銷毀測試，以展示我們的 AirSCWO 技術和超臨界水氧化製程銷毀有機廢棄物的有效性。

374Water's lab is often the first experience for customers to learn about the power of AirSCWO to destroy organic waste and provides a revenue source for the company. We also utilize our lab as an important part of our research, development, and engineering organization to develop pre-treatment protocols on waste streams, identify and evaluate potential challenges with processing various waste streams through our AirSCWO system, and develop a robust approach to effectively processing those waste streams.

374Water 的實驗室通常是客戶第一次了解 AirSCWO 銷毀有機廢棄物的威力的地方，並為公司提供了收入來源。我們也利用實驗室作為我們研究、開發和工程組織的重要組成部分，制定廢物流的預處理協議，識別和評估透過我們的 AirSCWO 系統處理各種廢物流的潛在挑戰，並制定有效處理這些廢物流的強大方法。

Now let's turn our attention to the waste treatment and destruction market. As a reminder, we estimate the global market opportunity for our AirSCWO waste destruction technology to be measured in the hundreds of billions of dollars. While the global market is truly massive, we consciously made the decision to focus on cultivating the US market at this time. With this in mind, we have a robust and growing municipal, federal, industrial, and TSDF backlog and pipeline of more than $1.8 billion.

現在我們把注意力轉向廢棄物處理和銷毀市場。提醒一下，我們估計我們的 AirSCWO 廢棄物銷毀技術的全球市場機會達數千億美元。儘管全球市場確實非常龐大，但我們這次有意識地決定專注於培育美國市場。考慮到這一點，我們擁有強勁且不斷增長的市政、聯邦、工業和 TSDF 積壓訂單和管道，總額超過 18 億美元。

As public awareness of emerging contaminants grows, traditional technologies focused on waste removal such as land application, land filling, incineration, deep well injection, and hauling and storage, which changed the markets decades ago, are now increasingly viewed as insufficient as they only move the problem and liability from one medium, one geography, and one organization to another.

隨著公眾對新興污染物的認識不斷提高，幾十年前改變了市場的、專注於廢物清除的傳統技術（如土地應用、填埋、焚燒、深井注入以及運輸和儲存）現在越來越被認為是不夠的，因為它們只是將問題和責任從一種媒介、一個地區和一個組織轉移到另一個媒介、一個地區和一個組織。

We believe our commercial scale AirSCWO system will offer a comprehensive and final solution for the most challenging organic waste streams. From a cost perspective, we believe our technology is competitive with current waste removal alternatives when considering all accretive degree of costs, including future liabilities.

我們相信，我們的商業規模 AirSCWO 系統將為最具挑戰性的有機廢物流提供全面而最終的解決方案。從成本角度來看，我們相信，當考慮所有累積成本（包括未來負債）時，我們的技術與目前的廢棄物清除替代方案相比具有競爭力。

Further, recent legal settlements in federal remediation budgets indicate substantial financial obligations and funding associated with addressing existing and future liabilities. Recent EPA regulations, state mandates, and the bipartisan concern over emerging contaminants ensure stricter and more robust disposal practices and requirements will continue regardless of the results of the recent election. These developments are accelerating the transition, which was already well underway, to emerging commercial scale destruction solutions like our AirSCWO system.

此外，聯邦補救預算中最近的法律解決表明，解決現有和未來債務需要大量的財務義務和資金。最近的美國環保署法規、各州的授權以及兩黨對新興污染物的關注確保了無論最近選舉的結果如何，更嚴格、更強有力的處置實踐和要求都將繼續下去。這些發展正在加速已經在進行的向新興商業規模銷毀解決方案（如我們的 AirSCWO 系統）的轉變。

With this in mind, let's discuss the markets in which we participate. First, let's discuss the $120 billion US drinking water and municipal wastewater management market, which includes approximately 152,000 water utilities, 16,000 wastewater treatment facilities, several thousand capped and uncapped landfills, and more than 52,000 state and local firefighting units. All these areas have waste streams which must be managed, disposed of and/or destroyed.

考慮到這一點，讓我們討論一下我們參與的市場。首先，讓我們討論一下價值 1200 億美元的美國飲用水和市政廢水管理市場，其中包括約 152,000 個水務公司、16,000 個廢水處理設施、數千個有蓋和無蓋垃圾掩埋場以及超過 52,000 個州和地方消防單位。所有這些地區都有必須管理、處置和/或銷毀的廢物流。

US drinking water utilities are increasingly impacted by contaminants like PFAS, microplastics, and pharmaceuticals, leading to widespread adoption of treatment methods like granular activated carbon and ion exchange to filter these substances. As these materials become saturated with PFAS, processes like supercritical water oxidation are essential for safely destroying the spent GAC and IX, offering a more complete solution for PFAS disposal. We believe we are well positioned to provide a compelling solution here.

美國飲用水公用事業日益受到 PFAS、微塑膠和藥物等污染物的影響，導致廣泛採用顆粒活性碳和離子交換等處理方法來過濾這些物質。隨著這些材料充滿了 PFAS，超臨界水氧化等製程對於安全銷毀廢 GAC 和 IX 至關重要，為 PFAS 處置提供更完整的解決方案。我們相信，我們有能力提供令人信服的解決方案。

The US municipal wastewater treatment market is experiencing significant challenges as it relates to the management and disposal of biosolids, which are highly contaminated with PFAS, microplastics, and other harmful substances. Traditional methods of biosolid disposal, including land application as fertilizer or soil supplements, landfill burial, incineration are simply not adequate.

美國市政污水處理市場在管理和處置受到 PFAS、微塑膠和其他有害物質嚴重污染的生物固體方面面臨重大挑戰。傳統的生物固體處理方法，包括作為肥料或土壤補充劑應用於土地、掩埋、焚燒，這些都遠遠不夠。

In fact, the state of Florida's House Bill, HB 1405, places stricter limits on sludge land application due to nutrient pollution, particularly near sensitive water bodies, increasing demand for alternative sludge management. Note previously, Florida used land application as one of their primary biosolid disposal methods. As a result of these recent changes, Florida municipalities now transport this additional biosolid waste out of state, extremely long distances to dispose of them in landfills, which increases their costs dramatically.

事實上，佛羅裡達州眾議院法案 HB 1405 對污泥土地應用進行了更嚴格的限制，以應對營養物質污染，特別是在敏感水體附近，這增加了對替代污泥管理的需求。請注意，之前佛羅裡達州使用土地應用作為其主要生物固體處理方法之一。由於這些最近的變化，佛羅裡達州的市政當局現在要將這些額外的生物固體廢物運出州外，經過極長的距離後運往垃圾掩埋場處理，這大大增加了他們的成本。

The regulatory landscape, including Florida mandates, has created a perfect storm, which landfills increasingly closing their doors as biosolids and fees are on the rise. Municipalities are urgently seeking solutions, and we are well positioned to deliver here.

包括佛羅裡達州的強制規定在內的監管環境已經造成了一場完美風暴，隨著生物固體廢物和費用的上漲，越來越多的垃圾掩埋場關閉。各市政當局正在緊急尋求解決方案，我們已準備好解決這個問題。

Now let's turn to landfills. There are over 3,000 landfills across the US facing leachate issues, including nearly 1,700 open landfills, and over 1,300 closed landfills. Landfill leachate is a liquid that forms when water percolates through waste material in a landfill, picking up various dissolved and suspended substances. This contaminated liquid is a result of rainfall, surface runoff, and decomposing waste within the landfill, which can include organic materials, chemicals, heavy metals, pathogens, as well as biosolids.

現在我們來談談垃圾掩埋場。全美有超過 3,000 個垃圾掩埋場面臨滲濾液問題，其中包括近 1,700 個開放式垃圾掩埋場和超過 1,300 個封閉式垃圾掩埋場。垃圾掩埋場滲濾液是水滲透垃圾掩埋場中的廢物時形成的液體，其中含有各種溶解和懸浮物質。這種受污染的液體是雨水、地表徑流和垃圾掩埋場內腐爛廢物的產物，其中包括有機物、化學物質、重金屬、病原體以及生物固體。

We are in discussions with waste management companies surrounding landfill leachate destruction demonstrations within the lab. We anticipate these early demonstrations will translate into full-scale destruction of service opportunities for our company shortly.

我們正在與廢棄物管理公司討論實驗室內的垃圾掩埋場滲濾液銷毀演示。我們預計這些早期的示威活動將很快導致我們公司的服務機會全面遭到破壞。

Now let's discuss AFFF firefighting foam. Full-scale removal and disposal of PFAS-laden AFFF firefighting foam is now underway at the state and municipal government levels. 16 US states currently offer AFFF buyback programs to help fire departments safely dispose of this toxic firefighting foam. These programs enable fire departments and agencies to return obsolete or unused AFFF stocks, which are then safely stored and processed for disposal.

現在讓我們來討論一下 AFFF 滅火泡沫。目前，州和市政府正在全面清除和處置含有 PFAS 的 AFFF 滅火泡沫。目前，美國 16 個州提供 AFFF 回購計劃，以幫助消防部門安全處理這種有毒滅火泡沫。這些計劃使消防部門和機構能夠退回過時或未使用的 AFFF 庫存，然後進行安全存放和處理以進行處置。

Funding for the destruction of collected AFFF varies by state. For example, Ohio's program, run by the Ohio EPA and State Fire Marshal, is funded by a settlement from a PCB-related case. In contrast, North Carolina's Take-Back Program leverages state support and collaborates with the North Carolina Collaboratory to research and apply PFAS destruction technologies.

各州對銷毀收集的水成泡沫 (AFFF) 的資金支持有所不同。例如，俄亥俄州的計畫由俄亥俄州環境保護局和州消防局負責實施，其資金來自一宗 PCB 相關案件的和解金。相較之下，北卡羅來納州的回收計畫利用州政府的支持，並與北卡羅來納州合作實驗室合作研究和應用 PFAS 銷毀技術。

We are now starting to bid on AFFF waste destruction opportunities using our AirSCWO destruction as a service model. We believe state and municipal AFFF destruction opportunities represent near-term revenue opportunities for our company.

我們現在開始利用我們的 AirSCWO 銷毀即服務模式競標 AFFF 廢棄物銷毀機會。我們相信，州和市政 AFFF 銷毀機會代表著我們公司的近期收入機會。

As of today, our municipal backlog and pipelines stands north of $600 million. Now, the $15 billion US federal waste management market, which includes 715 DoD sites, 50 DOE sites, and 150 airports under the oversight of the FAA. These agencies have stockpiles of waste streams such as AFFF firefighting foam, chemicals, narcotics, biosolids, and other waste, which must be treated, stored, and destroyed. These agencies are actively seeking solutions to eliminate this PFAS contamination.

截至今天，我們的市政積壓工作和管道已超過 6 億美元。現在，美國聯邦廢棄物管理市場規模達 150 億美元，其中包括 715 個國防部站點、50 個能源部站點和 150 個受聯邦航空管理局監管的機場。這些機構儲存有大量廢物，例如 AFFF 滅火泡沫、化學物質、麻醉劑、生物固體和其他廢物，必須對其進行處理、儲存和銷毀。這些機構正在積極尋求消除 PFAS 污染的解決方案。

The DoD estimates cleanup costs of over $29 billion for PFAS contamination. Full-scale removal and disposal of PFAS-contaminated firefighting equipment and AFFF firefighting foam is now underway at military bases around the country. Hundreds of millions of dollars are already being allocated to eliminate AFFF from all US military facilities. Federal funding for this cleanup activity is available and growing.

國防部估計，清理 PFAS 污染的成本超過 290 億美元。目前，全國各地的軍事基地正在全面拆除和處置受 PFAS 污染的消防設備和 AFFF 滅火泡沫。目前，美國已經撥款數億美元用於清除所有軍事設施中的水成泡沫（AFFF）。聯邦政府為此清理活動提供的資金目前已到位且持續增加。

We see a very real market opportunity here. As such, we intend to bid on AFFF destruction opportunities, using our AirSCWO destruction-as-a-service model. We believe federal government AFFF destruction opportunities represent a very real near-term revenue opportunity for our company, and we intend to capitalize.

我們在這裡看到了一個非常現實的市場機會。因此，我們打算利用我們的 AirSCWO 銷毀即服務模式，競標 AFFF 銷毀機會。我們相信聯邦政府的 AFFF 銷毀機會對我們公司來說是一個非常現實的近期收入機會，我們打算利用它。

We also see growing demand for the destruction of PFAS-contaminated filtration media, such as granular activated carbon and ion exchange waste streams using in the cleanup of soil at DoD facilities. Over time, we expect to broaden our focus to include GAC and IX waste destruction, leveraging the billions of dollars in federal funding earmarked to support destruction and cleanup efforts.

我們也看到對銷毀受 PFAS 污染的過濾介質的需求日益增長，例如國防部設施土壤清理中使用的顆粒活性碳和離子交換廢物流。隨著時間的推移，我們希望擴大我們的關注範圍，包括 GAC 和 IX 廢物銷毀，並利用聯邦政府撥給的數十億美元資金來支持銷毀和清理工作。

Further and importantly, we anticipate continued strong bipartisan political support for PFAS remediation and destruction will remain with the DoD as they continue to spearhead federal action. 374Waters contractually engaged into 2025 with multiple DoD entities for evaluating PFAS and other organic waste stream destruction effectiveness. As of today, our federal backlog and pipeline exceeds $900 million.

此外，重要的是，我們預計，在國防部繼續帶頭採取聯邦行動的同時，兩黨將繼續大力支持 PFAS 的修復和銷毀。374Waters 與多個國防部實體簽訂了到 2025 年的合同，以評估 PFAS 和其他有機廢物流的銷毀效果。截至今天，我們的聯邦積壓和準備工作已超過 9 億美元。

Now for the $80 billion US industrial waste management market, which includes a diverse group of industries from landfills and oil and gas to healthcare and battery manufacturing verticals. As a reminder, industrial facilities generate tons and tons of organic waste annually that are either pre-treated on-site and discharged to wastewater treatment plants, treated and discharged directly into our water bodies, or transported off-site for expensive treatment and disposal of final residuals.

現在，美國工業廢棄物管理市場規模達 800 億美元，其中包括從垃圾掩埋場、石油天然氣到醫療保健和電池製造垂直行業等多個行業。提醒一下，工業設施每年都會產生數以噸計的有機廢物，這些廢物要么在現場預處理並排放到污水處理廠，要么經過處理後直接排放到我們的水體中，要么運輸到場外進行昂貴的處理和處置最終殘留物。

Downstream handlers and disposal facilities are now beginning to reject waste material because of the increasing threat of liability and remediation costs. We continue to experience traction across the industrial market, targeting subverticals like oil and gas, pharmaceuticals, chemicals, and battery manufacturing. We have and we will continue to provide waste destruction tests to industrial market participants to demonstrate AirSCWO's efficacy in destroying and eliminating liability associated with their persistent organic waste streams.

由於責任威脅和補救成本不斷增加，下游處理商和處置設施現在開始拒絕廢棄物。我們繼續在工業市場中受到青睞，目標是石油和天然氣、製藥、化學品和電池製造等子垂直市場。我們已經並將繼續向工業市場參與者提供廢棄物銷毀測試，以證明 AirSCWO 在銷毀和消除與其持久性有機廢棄物流相關的責任方面的功效。

I will now walk through each of these markets. The oil and gas industry generates significant volumes of non-hazardous and hazardous waste, including drill cuttings, produced water, and sludge, all of which require specialized treatment. The US oil and gas waste treatment market is valued at roughly $10.5 billion in 2024 and is expected to grow, driven by regulatory pressures and a focus on environmental responsibility. In addition, the oil and gas market has significant stockpiles of AFFF firefighting foam, which again represents an important near-term destruction-as-a-service revenue opportunity for our company.

現在我將逐一介紹這些市場。石油和天然氣行業產生大量無害和有害廢物，包括鑽屑、採出水和污泥，所有這些都需要專門處理。2024 年，美國石油和天然氣廢棄物處理市場價值約為 105 億美元，預計在監管壓力和對環境責任的關注的推動下還將成長。此外，石油和天然氣市場擁有大量 AFFF 滅火泡沫庫存，這再次為我們公司帶來了近期重要的銷毀即服務收入機會。

The US battery recycling market value at north of $500 million in 2024, is expected to grow rapidly, driven by the increased demand for electric vehicles and the need for sustainable battery disposal methods. With a projected CAGR of 38% through 2030, this expanding market represents a significant opportunity for AirSCWO. Key industry players recognize SCWO's potential to serve as a central waste management solution, providing safe and sustainable processing, while helping battery recyclers meet environmental regulations. The technology application within battery recycling highlights its role in advancing sustainability within hazardous waste management.

到 2024 年，美國電池回收市場價值將超過 5 億美元，預計將快速成長，這得益於電動車需求的增加和對永續電池處理方法的需求。預計到 2030 年，複合年增長率將達到 38%，這個不斷擴大的市場對 AirSCWO 來說意味著巨大的機會。主要產業參與者認識到 SCWO 作為中央廢棄物管理解決方案的潛力，它提供安全和永續的處理，同時幫助電池回收商滿足環境法規。電池回收中的技術應用凸顯了其在促進危險廢棄物管理永續性方面的作用。

The pharmaceutical industry is facing increasing regulatory scrutiny and environmental demands, driving the need for effective sustainable waste treatment solutions. Valued at north of $600 million in 2024, the US pharmaceutical waste management market is projected to grow as the industry emphasizes responsible disposal practices. SCWO is particularly well-suited for this market given its ability to break down complex and high-risk compounds effectively. Pharmaceutical manufacturers are actively seeking AirSCWO as a solution to handle diverse waste profiles with minimal environmental impact, positioning the technology as essential for the sector's compliance and sustainability goals.

製藥業面臨越來越嚴格的監管審查和環境要求，推動了對有效的永續廢棄物處理解決方案的需求。到 2024 年，美國醫藥廢棄物管理市場的價值將超過 6 億美元，隨著業界強調負責任的處置措施，該市場預計將會成長。SCWO 特別適合這個市場，因為它能夠有效分解複雜且高風險的化合物。製藥商正在積極尋求 AirSCWO 作為處理各種廢物並最大限度減少對環境影響的解決方案，並將該技術定位為該行業合規和永續發展目標的關鍵。

The chemical manufacturing sector accounts for roughly 50% of the industrial waste market, which translates into roughly 15 billion pounds of produced waste annually, and the annual industrial waste market from chemical production is valued at over $1 billion. Chemical waste can be in solid, liquid, or sludge form, generated by chemical production, manufacturing, and other industrial activities. Many chemicals can be hazardous, toxic, or carcinogenic substances and can be in the form of synthetic organics, organic solvents, oils, plasticizers, and the like.

化學製造業約佔工業廢棄物市場的 50%，相當於每年產生約 150 億磅廢棄物，而化學品生產產生的工業廢棄物市場每年價值超過 10 億美元。化學廢棄物可以是固體、液體或污泥形式，由化學生產、製造和其他工業活動產生。許多化學物質可能是有害、有毒或致癌物質，並且可以是合成有機物、有機溶劑、油、塑化劑等形式。

Industrial players are increasingly turning to sustainable solutions, not only due to regulatory requirements and public pressures, but because the use of recovery technologies, like 374Water's AirSCWO system, can save costs, streamline internal operations, and eliminate potential liabilities. We currently see no effective commercial scale final and permanent destruction solution for these industrial markets. We see a mix of capital sale and destruction-as-a-service opportunities across the industrial market landscape, which will benefit our business. As of today, our industrial backlog and pipeline exceeds $300 million.

工業參與者越來越多地轉向永續解決方案，這不僅是因為監管要求和公眾壓力，還因為使用像 374Water 的 AirSCWO 系統這樣的回收技術可以節省成本、簡化內部運作並消除潛在責任。目前，我們尚未看到針對這些工業市場的有效商業規模最終和永久性銷毀解決方案。我們看到，工業市場中存在著資本銷售和銷毀即服務機會，這將有利於我們的業務。截至今日，我們的工業積壓訂單和通路訂單已超過 3 億美元。

Finally, the US Treatment, Storage, and Disposal Facility, or TSDF market, which includes more than 860 RCRA operating permitted sites in the US. We are actively engaged with global and national materials, waste handling, and waste management companies to set up a national network of facilities to service customers from our three core markets: municipal, federal, and industrial; and provide a turnkey destruction-as-a-service or DAAS offering, which will drive recurring revenues.

最後，美國處理、儲存和處置設施（TSDF）市場，其中包括美國境內 860 多個 RCRA 許可營運的場地。我們積極與全球和國家的材料、廢棄物處理和廢棄物管理公司合作，建立全國設施網絡，為市政、聯邦和工業三大核心市場的客戶提供服務；並提供交鑰匙銷毀即服務或 DAAS 產品，這將帶來經常性收入。

As such, we are seeking to partner with the existing TSDFs who are known to our customers, have experience in the non-hazardous and hazardous waste treatment spaces, and finally have the appropriate local, state, and federal permits. We will provide further updates as we sign these strategic and innovative partnerships that will drive recurring revenues and solve multi-stakeholder market problems. We believe the TSDF DAAS market opportunity is measured in the hundreds of millions of dollars to our company.

因此，我們正在尋求與我們的客戶熟知的現有 TSDF 合作，這些 TSDF 在無害和危險廢物處理領域擁有經驗，並最終擁有適當的當地、州和聯邦許可證。當我們簽署這些策略性和創新性的合作關係時，我們將提供進一步的更新，這些合作夥伴關係將推動經常性收入並解決多利益相關者的市場問題。我們相信，TSDF DAAS 市場機會對我們公司來說價值數億美元。

Now let's shift to how we sell our technology. As discussed previously, we offer AirSCWO procurement vehicles to our customers: capital purchase, lease, and destruction-as-a-service or DAAS. Large municipalities typically desire to outright purchase the equipment within their facilities, though there may be some instances where these large municipalities opt for our DAAS model.

現在讓我們來談談如何銷售我們的技術。如前所述，我們為客戶提供 AirSCWO 採購工具：資本購買、租賃和銷毀即服務或 DAAS。大型城市通常希望直接購買其設施內的設備，但在某些情況下，這些大型城市也會選擇我們的 DAAS 模型。

Smaller municipalities, landfill operators, and many industrial clients are drawn to our DAAS model, which provides access to our waste destruction technology without significant upfront investment. Federal government customers, including the military, have also consistently articulated desire for our DAAS model, with centralized destruction facilities as well as run-type structures to facilitate on-site destruction. Finally, TSDF market participants have been focused on our DAAS model and waste destruction revenue sharing.

較小的城市、垃圾掩埋場營運商和許多工業客戶都被我們的 DAAS 模型所吸引，該模型無需大量的前期投資即可使用我們的廢棄物銷毀技術。包括軍方在內的聯邦政府客戶也一直表達對我們的 DAAS 模型的需求，該模型具有集中式銷毀設施以及運行式結構以方便現場銷毀。最後，TSDF 市場參與者一直關注我們的 DAAS 模式和廢棄物銷毀收入分享。

While we are in the early stages of inking these agreements, we are increasingly bullish on these opportunities to generate meaningful revenue. We will naturally keep you informed as our procurement vehicles in our discussions of these market verticals evolve.

雖然我們正處於簽署這些協議的早期階段，但我們對這些創造有意義收入的機會越來越看好。當我們在討論這些垂直市場時，我們的採購工具會不斷發展變化，我們自然會隨時向您通報最新情況。

Now, let's turn to how we fund all these opportunities. As previously disclosed, we are actively raising capital to expand our company and we'll be providing public disclosures on our progress here shortly. As mentioned previously, we have a backlog in pipeline of $1.8 billion in near-term capital sale and disruption to the service revenue opportunities, which require capital to execute. In addition, we have discussed the need to expand our team to more rapidly commercialize our AirSCWO technology across several waste streams, including biosolids, AFFF firefighting foam, landfill leachate, and other PFAS-contaminated liquids; as well as build, sell, and deploy our technology across these markets.

現在，讓我們來談談如何資助所有這些機會。正如之前所揭露的，我們正在積極籌集資金來擴大我們的公司，我們很快就會在此公開揭露我們的進展。如前所述，我們在近期資本銷售方面積壓了 18 億美元，服務收入機會受到干擾，需要資本來執行。此外，我們還討論了擴大團隊的必要性，以便更快地將我們的 AirSCWO 技術商業化應用於多種廢物流，包括生物固體、AFFF 滅火泡沫、垃圾掩埋場滲濾液和其他 PFAS 污染液體；以及在這些市場上建構、銷售和部署我們的技術。

First, we plan to expand our engineering, field, and manufacturing teams to fast track technology commercialization and deployment. We are focused on advancing engineering efforts through parallel development paths to identify and resolve potential failure modes, ensuring the technology's resilience. At the same time, the company intends to deploy field teams to conduct demonstrations across various market segments to gather critical data and validate the technology, as well as begin to execute on DAAS revenue opportunities, particularly within the AFFF destruction market.

首先，我們計劃擴大我們的工程、現場和製造團隊，以加速技術商業化和部署。我們專注於透過平行開發路徑推進工程工作，以識別和解決潛在的故障模式，確保技術的彈性。同時，該公司打算派遣現場團隊在各個細分市場進行演示，以收集關鍵數據並驗證技術，並開始抓住 DAAS 的收入機會，特別是在 AFFF 銷毀市場內。

Second, we plan to make key strategic hires. We are currently meeting with accomplished chief technology officer candidates with deep, proven backgrounds in technology development, commercialization, and deployment, and we intend to announce our new CTO shortly. The CTO is an important hire as we scale our engineering organization to effectively execute our development, commercialization, and technology deployment goals.

第二，我們計劃進行關鍵的策略招募。我們目前正在與在技術開發、商業化和部署方面擁有深厚、成熟背景的資深首席技術官候選人會面，我們打算很快宣布我們的新任首席技術長。當我們擴大工程組織規模以有效執行開發、商業化和技術部署目標時，聘請首席技術長是一項重要的工作。

Third, we intend to establish a dedicated manufacturing and engineering facility that will enhance production capacity, improve quality control, and support ongoing innovation, as the company scales to meet growing market demands.

第三，我們打算建立一個專門的製造和工程設施，以提高生產能力，改善品質控制，並支持持續創新，同時公司將不斷擴大規模以滿足不斷增長的市場需求。

Fourth, we are actively building two AS1 units, which are hypermobile for on-site demonstrations and destructions, including near-term revenue generating AFFF DAAS work. In addition, we are constructing multiple AS6 units, one to deploy to Orange County Sanitation in 2025, another to potentially deploy to a TSDF partner, and one to begin generating AFFF DAAS revenue.

第四，我們正在積極建造兩台 AS1 裝置，它們具有超機動性，可用於現場演示和銷毀，包括近期創造收入的 AFFF DAAS 工作。此外，我們正在建造多個 AS6 裝置，其中一個將於 2025 年部署到橘郡衛生部門，另一個可能會部署到 TSDF 合作夥伴，還有一個將開始產生 AFFF DAAS 收入。

Finally, we are in the process of creating an independent industry Advisory Board consisting of experts with critical connections and expertise across our municipal, federal, industrial, and TSDF market verticals. This Advisory Board will support leadership and the Board of Directors to strategically and quickly explore and unlock new market opportunities, which will enable us to more rapidly scale our business.

最後，我們正在創建一個獨立的行業諮詢委員會，該委員會由在市政、聯邦、工業和 TSDF 市場垂直領域擁有重要聯繫和專業知識的專家組成。這個顧問委員會將支持領導層和董事會策略性地、快速地探索和釋放新的市場機會，這將使我們能夠更快地擴大業務規模。

In summary, 374Water's AirSCWO technology is tackling some of the world's most critical waste challenges with a solution that is both unmatched in its commercial efficacy and scale. We have made substantial progress on the path to commercializing our technology across both solid and liquid waste streams. We continue to build a robust backlog and pipeline of actionable opportunities, which now totals more than $1.8 billion.

總而言之，374Water 的 AirSCWO 技術正在以商業功效和規模無與倫比的解​​決方案解決世界上一些最關鍵的廢棄物挑戰。我們在將我們的技術商業化應用於固體和液體廢物流的道路上取得了實質進展。我們將繼續累積大量可操作的機會並建立管道，目前總額已超過 18 億美元。

In addition, we are pursuing near-term revenue opportunities across our AirSCWO capital sales, emerging destruction-as-a-service business model, destruction demonstrations, and our lab tests. The progress we've made over the past six months is significant, and I am confident in our ability to continue driving value for our shareholders. Thank you for your support and interest, and we look forward to sharing more updates in the coming months.

此外，我們正在透過 AirSCWO 資本銷售、新興的銷毀即服務業務模式、銷毀演示和實驗室測試尋求近期收入機會。我們在過去六個月中取得的進展是顯著的，我相信我們有能力繼續為股東創造價值。感謝您的支持和關注，我們期待在接下來的幾個月分享更多更新。

With that, I'll hand it over to Adrienne to update you on our financials.

說完這些，我將把話交給 Adrienne，讓她向你報告我們的財務狀況。

Thank you, Chris. Today I'll discuss our financial results for the third quarter of 2024, which reflects our business evolution as we begin scaling our business and enhancing our financial position. I'll touch on a few key metrics for the first three quarters of 2024.

謝謝你，克里斯。今天，我將討論我們 2024 年第三季的財務業績，這反映了我們在開始擴大業務規模和增強財務狀況時的業務發展。我將談談 2024 年前三個季度的一些關鍵指標。

For the nine months of 2024, the company generated revenue of $434,000 compared to approximately $864,000 for the nine months of 2023. As we start to reach the end of the assembly and fabrication work on our sold unit, our direct cost decline, which has resulted in a reduction of our equipment revenues of approximately $527,000, offset by an increase in our service revenues from our treatability studies of approximately $97,000.

2024 年前九個月，該公司的收入為 434,000 美元，而 2023 年前九個月的收入約為 864,000 美元。隨著我們開始完成已售出設備的組裝和製造工作，我們的直接成本下降，這導致我們的設備收入減少約 527,000 美元，但由我們可處理性研究帶來的服務收入增加約 97,000 美元所抵消。

Further, during the quarter, we deployed our own AirSCWO unit to the City of Orlando for the waste destruction demonstrations previously discussed. We anticipate recognizing revenue from this deployment as we complete these demonstrations during Q4 2024.

此外，在本季度，我們向奧蘭多市部署了自己的 AirSCWO 單位，以進行先前討論過的廢棄物銷毀演示。我們預計在 2024 年第四季完成這些演示後將從此次部署中獲得收入。

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 primarily by an increase in our general administrative expenses of approximately $730,000, an increase in our professional fees of approximately $1,058,000, and an increase in research and development expenses of $581,000. Increases in general administrative expenses stem from the continued efforts to build out and establish our executive team, as well as the relocation of our manufacturing facility, and continued commercialization and growth efforts.

總營運費用從 2023 年前 9 個月的 520 萬美元增加到 2024 年前 9 個月的 780 萬美元，主要原因是我們的一般行政費用增加約 73 萬美元、我們的專業費用增加約 1,058,000 美元以及研發費用增加 581,000 美元。一般管理費用的增加源自於我們不斷努力建立和建立執行團隊，以及製造工廠的遷移以及持續的商業化和成長努力。

Increase in our professional fees are primarily non-reoccurring expenses related to the settlement of a legal matter, and the changes in our executive leadership and Board of Directors that have been previously disclosed. The increase in our research and development expenses is primarily due to an increase in engineering expenses and our continued efforts to commercialize our systems.

我們的專業費用的增加主要是與法律問題的解決以及先前披露的執行領導層和董事會變動有關的非經常性費用。我們的研發費用的增加主要是由於工程費用的增加和我們不斷努力將我們的系統商業化。

As of September 30, 2024, we have a working capital of $4.5 million and no outstanding debt obligations.

截至 2024 年 9 月 30 日，我們的營運資金為 450 萬美元，沒有未償還的債務。

With that, I will turn the call back over to Chris.

說完這些，我會把電話轉回給克里斯。

Thank you, Adrienne. We would now like to move to Q&A.

謝謝你，艾德麗安。現在我們進入問答環節。

(Operator Instructions) Graham Price, Raymond James.

（操作員指示）格雷厄姆·普萊斯、雷蒙德·詹姆斯。

Hi. Thanks for taking the question. For my first one, I just want to ask one on the regulatory landscape given the election. So if the Trump administration curtails the EPA's ability to regulate PFAS, just wondering how you would think about that. Would that create a scenario of a state-by-state hodgepodge for PFAS rules, or how would you see that playing out?

你好。感謝您回答這個問題。第一個問題，我只想問一個關於選舉背景下的監管情勢的問題。因此，如果川普政府削弱美國環保署監管 PFAS 的能力，我想知道您會如何看待這一點。這是否會導致各州的 PFAS 規則出現混亂的情況，或者您認為會出現什麼結果？

Well, Graham, I appreciate the question. When I think about that, I really feel like the train has left the station. There are so many different lawsuits and other things going on, big awards, and so forth, geared towards dealing with this issue. It's in the news, gosh, every day now as well about the issue. So while that may occur, they may delay or push out the full implementation, I don't think that's going to have a material impact on the opportunities that we have in front of us.

好吧，格雷厄姆，我很感謝你提出這個問題。當我想到這一點時，我真的感覺到火車已經離開了車站。為了解決這個問題，目前有太多不同的訴訟和其他事宜正在進行，包括巨額賠償等等。天哪，現在每天都有關於這個問題的新聞。因此，儘管這種情況有可能發生，他們可能會推遲或推遲全面實施，但我認為這不會對我們面臨的機會產生實質影響。

Got it. Thank you for that. And then, maybe, for my follow up along the same lines, any changes do you see in your work with the DoD under new leadership?

知道了。謝謝你。然後，也許，為了跟進這個問題，您認為在新的領導下與國防部的合作有什麼改變嗎？

No, not at this time. We're in, obviously, constant contact with them. We have a host of different federal government demonstrations, and we're not hearing anything from them about worry that those are going to get delayed. When you think about the military branches and all of the various facilities that are highly contaminated. The military is very focused on cleaning up where they live. And so again, I don't see that materially changing for us or other participants in the industry.

不，目前還不行。顯然，我們與他們保持著持續的聯繫。我們舉行了一系列不同的聯邦政府示威活動，但我們沒有聽到他們表示擔心這些示威活動會被推遲。當你想到軍事部門和所有受到高度污染的各種設施時。軍隊非常注重清理他們居住的地方。因此，我再說一遍，我認為這不會對我們或該行業的其他參與者產生實質變化。

Got it. Understood. Thank you very much. I'll jump back in the queue.

知道了。明白了。非常感謝。我將重新回到隊列中。

Thank you so much.

太感謝了。

Justin Smith, Maxim Group.

賈斯汀史密斯 (Justin Smith)，馬克西姆集團。

Hi, good afternoon. Yeah, so my question was just if you guys could please give a little more detail on, maybe, the logistics of the operations at the Orlando facility. What type of testing are you guys doing exactly? Is it the percentage of PFAS that the AirSCWO systems can remove? And then are those customer demonstrations currently going on right now at the facility? And if so, maybe what are some of the most important metrics that the customers are looking at during these demonstrations? Thank you.

嗨，下午好。是的，所以我的問題是，你們能否詳細介紹一下奧蘭多工廠的營運物流情況。你們究竟在做什麼類型的測驗？這是 AirSCWO 系統可以去除的 PFAS 百分比嗎？那麼，這些客戶演示目前在工廠進行嗎？如果是這樣，那麼在這些演示中，客戶最關注的指標是什麼？謝謝。

Justin, thanks for the question and thanks for being on the call here today. So in terms of the City of Orlando, we are fully up and running there. We have conducted some demonstrations for customers on-site there, but right now we are focused on processing biosolids to meet that agreement with the City of Orlando as well.

賈斯汀，感謝您的提問，也感謝您今天參加我們的電話訪問。因此，就奧蘭多市而言，我們在那裡已經全面投入營運。我們已經在現場為客戶進行了一些演示，但現在我們專注於處理生物固體以滿足與奧蘭多市的協議。

As far as what people are looking at, they're looking at a lot of different items as they evaluate the efficacy of our technology. One is that it's a continuous flow system, that it's operating very stably, and it is processing waste as we promised.

就人們所關注的內容而言，他們在評估我們技術的有效性時會查看許多不同的項目。一是它是一個連續流動系統，運作非常穩定，並且按照我們的承諾處理廢物。

The other is they are looking at, not only what that waste stream is as it goes into our system, but what's coming out. And they are taking samples, extensive samples, throughout the processing period to send off to labs that they -- of their choosing to, again, be very focused on the destruction of the various waste streams.

另一個是，他們不僅關注進入我們系統的廢物流，還關注排出的廢物流。他們在整個加工期間採集大量樣本，然後送往他們選擇的實驗室，重點是各種廢物流的銷毀。

Certainly, everyone is looking at PFAS within those waste streams and evaluating the efficacy of our destruction of long and short chain PFAS. As a reminder, when you destroy long chain PFAS, it often turns to short chain PFAS, and the short chain PFAS is incredibly difficult to destroy. Our system is able to be tuned to and have the resonance time or the length that that waste stream is within our reactor. And we have seen incredible results in terms of the complete destruction of PFAS at a very, very, very high percentage.

當然，每個人都在關注這些廢物流中的 PFAS，並評估我們破壞長鏈和短鏈 PFAS 的效果。提醒一下，當你銷毀長鏈 PFAS 時，它通常會變成短鏈 PFAS，而短鏈 PFAS 極難銷毀。我們的系統能夠進行調節，並具有廢物流在反應器內的共振時間或長度。我們看到了令人難以置信的成果，PFAS 被徹底銷毀，銷毀率非常非常高。

All right. Great. Thank you. That was all very helpful. Appreciate it. And then just for a quick follow up, regarding the unit for Orange County Sanitation, how long is that factory expected to take before that unit can be shipped?

好的。偉大的。謝謝。這一切都非常有幫助。非常感謝。然後我簡單問一下，關於橘郡衛生部門的設備，工廠預計需要多長時間才能出貨？

Yeah, so that's basically a day test and then we would, based on those results. And we will, of course, have to perform that test down in Orlando, which is where we're building the unit, and then we would ship it out.

是的，這基本上是一天的測試，然後我們會根據這些結果進行測試。當然，我們必須在奧蘭多（我們建造該設備的地方）進行該測試，然後我們才會將其運送出去。

Okay. Great. Thank you. I'll hop back in the queue. Appreciate it.

好的。偉大的。謝謝。我將重新回到隊列中。非常感謝。

Thanks so much, Justin.

非常感謝，賈斯汀。

We have reached the end of the question-and-answer session, and I will now turn a call over to Chris for closing remarks.

問答環節已經結束，現在我將請克里斯致結束語。

Well, thank you, everyone, for joining us today, and we look forward to talking more in the near future. Also, please look for updates as we have additional press releases and different papers coming out as well over the near term. Very exciting time for our business, a lot going on. And we again look forward to engaging with you in the future. Bye for now.

好吧，感謝大家今天的參與，我們期待在不久的將來有更多交流。此外，請關注更新，因為我們近期還會發布更多新聞稿和不同的論文。對於我們的業務來說這是非常令人興奮的時刻，有很多事情正在發生。我們再次期待未來與您的合作。暫時再見。

This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.

今天的會議到此結束，各位現在可以掛斷電話了。感謝您的參與。