374Water Inc (SCWO) 2024 Q4 法說會逐字稿

Greetings, and welcome to the 374Water fiscal year 2024 financial results conference call. (Operator Instructions) As a reminder, this conference is being recorded.

大家好，歡迎參加 374Water 2024 財年財務業績電話會議。（操作員指示）提醒一下，本次會議正在錄音。

At this time, I will now hand the call to Chris Tyson, Executive Vice President of MZ Group. Please go ahead.

現在，我將電話交給 MZ 集團執行副總裁 Chris Tyson。請繼續。

Thank you, operator. Before we begin the formal presentation, I'd like to remind everyone that -- on the call and webcast -- are based on the predictions, estimates or other information that might be considered forward-looking. While these forward-looking statements present our current judgment on what the future holds, they are subject to risks and uncertainties that could cause actual results to differ materially.

謝謝您，接線生。在我們開始正式演講之前，我想提醒大家，電話會議和網路廣播中的內容均基於預測、估計或其他可能被視為前瞻性的資訊。雖然這些前瞻性陳述代表了我們目前對未來的判斷，但它們受到風險和不確定性的影響，可能導致實際結果大不相同。

You are cautioned not to place undue reliance on these forward-looking statements which reflect our opinions only as of the date of this presentation. Please keep in mind that we are not obligating ourselves to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events.

請注意不要過度依賴這些前瞻性陳述，這些陳述僅反映我們截至本報告發布之日的觀點。請記住，我們沒有義務根據新資訊或未來事件修改或公開發布這些前瞻性陳述的任何修改結果。

Throughout today's discussion, we will attempt to present important factors relating to our business that may affect our predictions. You should also review our most recent Form 10-K for a more complete discussion of these factors and other risks, particularly under the heading Risk Factors. Your host today, President and Chief Executive Officer, Mr. Chris Gannon; and Chief Financial Officer, Mr. Russell Kline, will present results of operations for the fiscal year ended December 31, 2024. A press release detailing results crossed the wire this afternoon at 4:01 PM Eastern Time and is available in the Investor Relations section of the company's website 374water.com.

在今天的討論中，我們將嘗試提出與我們的業務有關的可能影響我們預測的重要因素。您還應該查看我們最新的 10-K 表格，以便更全面地討論這些因素和其他風險，特別是在「風險因素」標題下。今天的主持人，總裁兼首席執行官克里斯·甘農先生；首席財務官 Russell Kline 先生將介紹截至 2024 年 12 月 31 日的財政年度的經營業績。一份詳細介紹業績的新聞稿於今天下午美國東部時間 4:01 發布，可在公司網站 374water.com 的投資者關係欄位中查閱。

I will now turn the call over to 374Water's President and Chief Executive Officer, Chris Gannon. Chris, the floor is yours.

現在我將把電話轉給 374Water 總裁兼執行長 Chris Gannon。克里斯，現在你來發言。

Thank you, Chris. Good afternoon, everyone, and thank you for joining us today. 374Water is a global industrial technology and services company providing innovative waste destruction and treatment solutions to municipal, federal and industrial market verticals. Our proprietary AirSCWO system is designed to destroy both solid and liquid non-hazardous and hazardous organic waste and in the process, our technology produces a dischargeable water, safe mineral affluence, safe vent gas, and recoverable heat energy.

謝謝你，克里斯。大家下午好，感謝大家今天的參與。374Water 是一家全球工業技術和服務公司，為市政、聯邦和工業垂直市場提供創新的廢棄物銷毀和處理解決方案。我們專有的 AirSCWO 系統旨在銷毀固體和液體無害和有害有機廢物，在此過程中，我們的技術產生可排放的水、安全的礦物質資源、安全的排氣和可回收的熱能。

Our goal is to provide the best-in-class waste construction solutions, which we believe can disrupt the $450 billion global waste destruction and waste management market whose participants seek alternatives to outdated conventional solutions. We believe our scalable and customizable AirSCWO system, which is designed to augment or replace conventional inefficient waste management approaches is an ideal solution for our target markets.

我們的目標是提供一流的廢棄物建設解決方案，我們相信這可以顛覆價值 4500 億美元的全球廢棄物銷毀和廢棄物管理市場，該市場的參與者正在尋求過時的傳統解決方案的替代方案。我們相信，我們的可擴展和可自訂的 AirSCWO 系統是我們目標市場的理想解決方案，該系統旨在增強或取代傳統低效的廢棄物管理方法。

In addition, we provide a flexible go-to-market strategy offering multiple procurement options to meet specific customer needs, including capital sales, lease and waste destruction service offerings. Further, we have developed a robust and growing backlog and pipeline of opportunities, which we are converting to revenue. As a result, we believe we have a viable path to generate $250 million to $500 million in annual revenue over the next five years or so.

此外，我們還提供靈活的市場進入策略，提供多種採購選擇以滿足特定客戶的需求，包括資本銷售、租賃和廢棄物銷毀服務。此外，我們已經開發了強大且不斷增長的積壓和機會管道，我們正在將其轉化為收入。因此，我們相信我們有一條可行的途徑在未來五年左右創造 2.5 億至 5 億美元的年收入。

Before I discuss our operational highlights and business updates, I would like to play a short video that introduces our AirSCWO technology and provides a brief overview. For those dialing in to the call, there will be approximately 90 seconds of silence, so please bear with us. This video is also available at the length within today's investor presentation.

在討論我們的營運亮點和業務更新之前，我想播放一段簡短的視頻，介紹我們的 AirSCWO 技術並提供簡要概述。對於撥入電話的用戶，將會有大約 90 秒的靜音時間，因此請耐心等待。今天的投資者演示中也提供了此影片的詳細內容。

(video playing)

（影片播放）

And we began manufacturing AS1 and additional AS6 systems. In Q4, we completed a registered direct offering of $12.2 million in gross proceeds to further fund our company, including material investments from management and the Board. We also announced our intent to begin offering waste destruction services in 2025 and started bidding on waste destruction opportunities. We were excited to announce yesterday a waste destruction contract with the University of North Carolina at Chapel Hill Co-Laboratory to destroy AFFF firefighting foam on behalf of the state.

我們開始製造 AS1 和其他 AS6 系統。在第四季度，我們完成了 1,220 萬美元的註冊直接發行，以進一步資助我們的公司，其中包括來自管理層和董事會的重大投資。我們也宣布了將於 2025 年開始提供廢棄物銷毀服務的意圖，並開始競標廢棄物銷毀機會。昨天，我們很高興地宣布與北卡羅來納大學教堂山分校聯合實驗室簽訂了一項廢物銷毀合同，代表該州銷毀 AFFF 滅火泡沫。

This multiphase contract could be worth north of $5 million to our company. During Q4, we also continue to advance partner negotiations with treatment, storage and disposal facility operators to establish one or more waste destruction service operations in 2025. We finalized the expansion of our laboratory operations with our move into a new state-of-the-art Biosafety Level 1 facility, greatly increasing our capabilities to service customers and we moved our production facility to a new location at Orlando's Iron Bridge facility.

這份多階段合約對我們公司來說價值可能超過 500 萬美元。在第四季度，我們也繼續推動與處理、儲存和處置設施營運商的合作夥伴談判，以在 2025 年建立一個或多個廢棄物銷毀服務業務。我們最終擴大了實驗室業務，遷入了新的最先進的生物安全一級設施，大大提高了我們為客戶提供服務的能力，並且我們將生產設施遷至奧蘭多 Iron Bridge 設施的新位置。

During Q1 2025, we confirmed we remain on track to mobilize AS system components to Orange County Sanitation in the first half of the year. During the year, we also used numerous press releases, white papers, completed media interviews and third-party articles were published highlighting 374Water and AirSCWO, including our work with the US Navy, where we successfully -- map our waste, Arcadis published an article regarding AFFF firefighting foam destruction, highlighting the effectiveness of 374Water's AirSCWO technology, and we announced participation in an upcoming the Partner Defense project aimed at identifying commercial scale PFAS-contain -- waste destruction suctions.

在 2025 年第一季度，我們確認我們仍有望在上半年向橘郡衛生部門調動 AS 系統組件。在這一年中，我們還發表了大量新聞稿、白皮書、完成的媒體採訪和第三方文章，重點介紹了 374Water 和 AirSCWO，其中包括我們與美國海軍的合作，我們成功繪製了廢物地圖，Arcadis 發表了一篇關於 AFFF 滅火泡沫銷毀的文章，強調了 374Water 的 AirSCWO 技術的有效性，我們宣布的商業規模

Note, we have already successfully destroyed the waste streams to identify and the Department of Defense announcement. We also expanded our intellectual property portfolio to ensure we have a defensible moat around our company ontology. We filed multiple patent applications throughout the year, and you can expect we will continue this practice throughout 2025 and beyond. Finally, we further enhanced our leadership team with the addition of Russell Kline as Chief Financial Officer; and Raj Melkote as our Chief Technology Officer.

請注意，我們已經成功銷毀了廢物流以供識別和國防部公告。我們也擴大了我們的智慧財產權組合，以確保我們公司本體擁有可防禦的護城河。我們全年提交了多項專利申請，您可以預期我們將在 2025 年及以後繼續這種做法。最後，我們進一步加強了領導團隊，任命 Russell Kline 為財務長；以及 Raj Melkote 擔任我們的技術長。

In addition, we hired additional engineering, manufacturing and field personnel. We believe our proprietary AirSCWO system, which harnesses the power of supercritical water oxidation or SWO -- the forefront of waste destruction and waste management. AirSCWO leverages the unique properties of water in its super critical phase, which is above 374 degrees Celsius and above a barometric pressure of 221 bar.

此外，我們還僱用了更多的工程、製造和現場人員。我們相信我們專有的 AirSCWO 系統利用超臨界水氧化或 SWO 的力量——這是廢物銷毀和廢物管理的前沿。AirSCWO 利用水在超臨界階段的獨特特性，即溫度高於攝氏 374 度，氣壓高於攝氏 221 巴。

The supercritical phase of water has unique properties, which when combined with ambient air, rapidly occupies or destroys organic matter, fueling safe water, safe minerals, safe bend gas and recoverable heat energy. Our continuous flow waste destruction process consists of our AirSCWO, pretreatment and posttreatment systems. Our pretreatment systems are installed upstream of the AirSCWO and are designed to condition solid -- waste for improved processing.

水的超臨界相具有獨特的性質，當與周圍空氣結合時，能迅速佔據或破壞有機物，為安全水、安全礦物質、安全彎曲氣體和可回收熱能提供動力。我們的連續流廢棄物銷毀過程包括 AirSCWO、預處理和後處理系統。我們的預處理系統安裝在 AirSCWO 上游，旨在調節固體廢物以改善處理效果。

Once organic rate is pretreated, it is injected into our AirSCWO systems proprietary tubular reactors, where it is combined with supercritical water and air. Our tubular reactor is effectively a high-pressure and high-temperature continuous flow chamber for pressure cooker up source. Our waste oxidation or destruction occurs within a matter of seconds.

有機物預處理後，被注入我們的 AirSCWO 系統專有管狀反應器，在那裡與超臨界水和空氣結合。我們的管式反應器其實是壓力鍋上源的高壓高溫連續流動室。我們的廢物氧化或破壞在幾秒鐘內發生。

Note the destruction process is highly tunable, allowing for specific structural results according to waste stream and customer preferences. Once the waste that destroyed to customer specifications, our post-treatment process commences. A post-treatment system, which are installed downstream of the AirSCWO system reacted are designed to valorize, meaning, optimally process and enhance the site water, minerals, net gas and enterprise products into valuable resources thereby promoting sustainability and reducing environmental impact.

請注意，銷毀過程是高度可調的，可以根據廢物流和客戶偏好獲得特定的結構結果。一旦廢棄物銷毀達到客戶要求的水平，我們的後處理流程就開始了。安裝在 AirSCWO 系統下游的後處理系統旨在對現場水、礦物質、淨氣和企業產品進行價值評估，即以最佳方式處理和增強其為寶貴資源，從而促進永續發展並減少對環境的影響。

Data simply, our post processing capabilities include water purification, vent gas utilization or sequestration mineral recovery upgrade and energy recovery and recycling. Our AirSCWO system has been proven to effectively process and destroy a wide variety of organic solid and liquid waste, reaching non-detect or below EPA levels of four parts per trillion.

數據簡單來說，我們的後處理能力包括水淨化、排氣利用或封存礦物回收升級以及能源回收和再循環。我們的 AirSCWO 系統已被證明能夠有效處理和銷毀各種有機固體和液體廢物，達到無法檢測或低於萬億分之四的 EPA 水平。

These include traditional ways such as biosolids, landfill leaching, industrial waste and military waste, as well as emerging contaminants, like short and long chain PFAS forever chemicals, which were a large class of synthetic chemicals known to be toxic, and negatively impact human health, as well as pharmaceuticals and plastics.

這些方式包括傳統方式，例如生物固體、垃圾掩埋場浸出、工業廢物和軍事廢物，以及新興污染物，例如短鏈和長鏈 PFAS 永久化學品，它們是一大類已知有毒的合成化學品，會對人類健康以及藥品和塑膠產生負面影響。

Let's walk through a few examples. First, let's start with wastewater treatment facilities and biosolids. Take the city of Orlando Iron bridge water reclamation facility, where we have our commercial scale AirSCWO system installed. On a typical day, Iron Bridge processes millions of -- bonds of residential, commercial in industrial wastewater at their facility. Following a lengthy and complex process, Iron Bridge -- waters produce biosolids for less than 1% to around 15% and solid content.

我們來看幾個例子。首先，讓我們從廢水處理設施和生物固體開始。以奧蘭多市鐵橋水回收設施為例，我們在那裡安裝了商業規模的 AirSCWO 系統。通常情況下，Iron Bridge 每天在其設施中處理數百萬噸的住宅、商業和工業廢水。經過漫長而複雜的過程，鐵橋水中產生的生物固體含量不到1%到15%左右。

Orlando then ships these biosolids long distances to those out-of-state landfills still willing to accept this type of waste. Also, many municipalities shift their biosolids to be converted into [fertilizer], which is known to contain PFAS and other toxic substances, which are then land applied on agricultural and other lands.

然後，奧蘭多將這些生物固體長途運送到那些仍然願意接受此類垃圾的州外垃圾掩埋場。此外，許多城市將生物固體轉化為肥料，已知肥料含有 PFAS 和其他有毒物質，然後施用於農業土地和其他土地。

Either way, these expensive convoluted and time-consuming processes are less than optimal and municipalities nationwide seek alternatives for on-premise waste destruction solutions, and we believe we are well positioned to provide a compelling solution. Finally, we have started our 90-day extended duration demonstration with Orlando and we'll provide updates as we progress.

無論如何，這些昂貴、複雜且耗時的過程都不是最佳的，全國各地的市政當局都在尋求現場廢物銷毀解決方案的替代方案，我們相信我們有能力提供令人信服的解決方案。最後，我們已經與奧蘭多開始了為期 90 天的延長演示，我們將隨時提供進度更新。

Turning to landfills and their leachate issues. Landfill leachate is a liquid form when water percolates through waste material in a landfill, taking up various dissolved and suspended solids. This contaminated with liquid as a result of rainfall, service runoff and decomposing waste, which can include organic chemicals, heavy metals, pathogens, and biosolids.

轉向垃圾掩埋場及其滲濾液問題。垃圾掩埋場滲濾液是水滲透垃圾掩埋場廢棄物時形成的液體形式，其中吸收了各種溶解和懸浮的固體。由於雨水、服務徑流和腐爛的廢物，該污水被液體污染，其中可能包括有機化學物質、重金屬、病原體和生物固體。

Landfill leach can and does contaminate surrounding areas, including groundwater. Landfill operators are seeking a means to destroy landfill leachate before it becomes a problem. We believe our AirSCWO technology has the potential to be a solution here.

垃圾掩埋場的滲濾液會污染周圍地區，包括地下水。垃圾掩埋場業者正在尋找一種方法來銷毀垃圾掩埋場滲濾液，防止其造成問題。我們相信我們的 AirSCWO 技術有潛力成為解決方案。

Turning to water utilities, which are increasingly impacted by contaminants like PFAS, microplastics and pharmaceuticals, leading to be spread adoption of treatment methods like granular activated carbon or gas and ion exchange resin or IX which are used to filter these substances.

談到水務設施，它們越來越受到 PFAS、微塑膠和藥物等污染物的影響，導致人們廣泛採用顆粒活性碳或氣體和離子交換樹脂或 IX 等處理方法來過濾這些物質。

As these materials become saturated with PFAS, processes like AirSCWO 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. There are many other examples of market opportunities where we believe we have a viable and compelling value proposition, which could drive demand for our AirSCWO solutions.

隨著這些材料充滿了 PFAS，像 AirSCWO 這樣的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。還有許多其他的市場機會例子，我們相信我們有一個可行且引人注目的價值主張，這可能會推動對我們的 AirSCWO 解決方案的需求。

We believe our ability to provide scaled waste destruction solutions is a significant differentiator across waste treatment and destruction providers. We intend to offer four commercial scale AirSCWO systems and corresponding pre- and post-treatment technologies to support customer needs. These AirSCWO models include our highly mobile AirSCWO 1, AS1, our mobile AirSCWO 6 or AS6 or semi-permanent AirSCWO 30 or AS30 and our bespoke AirSCWO 100+.

我們相信，我們提供規模化廢棄物銷毀解決方案的能力是我們在廢棄物處理和銷毀提供者中的一個重要區別。我們打算提供四種商業規模的 AirSCWO 系統和相應的預處理和後處理技術來滿足客戶需求。這些 AirSCWO 型號包括我們的高度移動式 AirSCWO 1、AS1、我們的行動 AirSCWO 6 或 AS6 或半永久性 AirSCWO 30 或 AS30 以及我們客製化的 AirSCWO 100+。

We are currently manufacturing our AS1and AS6 units. We are also designing our AS30, and we begin building one of these units in 2025. We are currently tracking several long sales cycle opportunities for our highest capacity AS100 units, which as a reminder, will be designed for specific customer needs.

我們目前正在生產 AS1 和 AS6 單元。我們也正在設計 AS30，並將於 2025 年開始建造其中一台裝置。目前，我們正在追蹤幾個最高容量 AS100 裝置的長銷售週期機會，提醒一下，這些裝置將根據特定客戶需求進行設計。

374Water is an interesting growth in faction point as it relates to the rollout of our technology as we are circling multiple additional AS capital sales as well as waste destruction service opportunities in 2025. We will naturally update you on these material events throughout the year.

374Water 是一個有趣的成長點，因為它與我們技術的推出有關，因為我們正在圍繞 2025 年的多個額外 AS 資本銷售以及廢棄物銷毀服務機會。我們自然會在全年向您更新這些重要事件的最新動態。

Here's a high-level overview of our current and near-term operational footprint. Right now, we have facilities in Florida and North Carolina. We encourage investors to visit our Orlando site for a facility tour as part of your due diligence on 374Water and our AirSCWO systems, we find [SMA] technology and action is truly believing.

以下是我們目前和近期營運足跡的概述。目前，我們在佛羅裡達州和北卡羅來納州設有工廠。我們鼓勵投資者訪問我們的奧蘭多工廠進行設施參觀，作為對 374Water 和我們的 AirSCWO 系統進行盡職調查的一部分，我們發現 [SMA] 的技術和行動確實令人信服。

In the near future, we will be deploying AirSCWO systems to Orange County Sanitation in California, Clean Earth into [right] Michigan for our DIU demonstrations, the City of St. Cloud, Minnesota, for a full-scale demonstration in Peterson space for space in Colorado.

在不久的將來，我們將在加州橘郡衛生局部署 AirSCWO 系統，在密西根州部署 Clean Earth 進行 DIU 演示，在明尼蘇達州聖克勞德市進行科羅拉多州 Peterson 空間的全面演示。

Just this week, we announced a new contract by the state of North Carolina for the destruction of ASSS. We are thrilled to be providing waste destruction services to the University of North Carolina at Chapel Hill Collaboratory. This initiative stands as one of the most ambitious state-led PFAS disposal efforts to date. We will destroy AFFF secured by the State of North Carolina as part of their take-back program as per North Carolina's responsible Firefighting Phone Management Act [H-370] of the 2023-2024 session.

就在本週，我們宣布了北卡羅來納州簽訂的一項銷毀 ASSS 的新合約。我們很高興能為北卡羅來納大學教堂山分校合作實驗室提供廢棄物銷毀服務。該舉措是迄今為止國家主導的最雄心勃勃的 PFAS 處置行動之一。根據 2023-2024 屆北卡羅來納州負責任的消防電話管理法案 [H-370]，我們將銷毀北卡羅來納州作為回收計劃的一部分獲得的 AFFF。

First phase aims to treat 1,000 gallons of AFFF with a structured expansion plan for a total of potentially 50,000 gallons. This phased approach demonstrates a strong commitment to eliminating PFAS contamination at scale while setting precedent for future large-scale environmental remediation projects. In addition, we are negotiating the capital sale of AS6 and AS30 units, targeting close in 2025 and actively working on multiple other waste destruction contracts and waste destruction services partnerships.

第一階段的目標是處理 1,000 加侖 AFFF，並製定一個結構化的擴建計劃，總計可能達到 50,000 加侖。這種分階段的方法顯示了對大規模消除 PFAS 污染的堅定承諾，同時為未來大規模環境修復計畫樹立了先例。此外，我們正在就 AS6 和 AS30 裝置的資本出售進行談判，目標是在 2025 年完成，並積極致力於其他多項廢棄物銷毀合約和廢棄物銷毀服務合作。

Looking ahead, our goal is to establish multiple regional waste destruction facilities in partnership with TSDFs which would cover the Continental US, Alaska, Hawaii, and beyond. We also aim to develop a mobile AS fleet for on-site waste destruction services especially for military applications. Additionally, we plan to scale production of AS1, AS6, and AS30 units, while laying the groundwork for 100-plus plants, which will require an expansion of our manufacturing capabilities in the future. These are exciting times, and we look forward to keeping you updated.

展望未來，我們的目標是與 TSDF 合作建立多個區域廢棄物銷毀設施，涵蓋美國本土、阿拉斯加、夏威夷及其他地區。我們還旨在開發一支移動式 AS 車隊，用於現場廢物銷毀服務，特別是針對軍事應用。此外，我們計劃擴大 AS1、AS6 和 AS30 裝置的生產規模，同時為 100 多家工廠奠定基礎，這將需要我們在未來擴大製造能力。這是一個令人興奮的時刻，我們期待向您通報最新情況。

Now, turning to the approximately $450 billion global waste treatment addressable market opportunity within the municipal, federal and industrial markets. Let's look -- why we are excited here. First, the municipal water and wastewater treatment market is estimated to be worth more than $347 billion annually, growing at approximately 7.5% annually.

現在，讓我們來談談市政、聯邦和工業市場中約 4,500 億美元的全球廢棄物處理潛在市場機會。讓我們看看——為什麼我們在這裡感到興奮。首先，市政供水和廢水處理市場每年的價值估計超過 3,470 億美元，每年的成長率約為 7.5%。

This market includes approximately 152,000 water utilities, 16,000 wastewater treatment facilities, 3,000 capped and uncapped land bills and more than 52,000 state and local fair fighting units. All these facilities have waste streams, which must be managed, disposed of and/or destroy. We believe our AirSCWO technology is well positioned to provide a compelling waste to obstruction solution to these markets.

這個市場包括約 152,000 個水務設施、16,000 個污水處理設施、3,000 個上限和無上限的土地法案以及超過 52,000 個州和地方公平鬥爭單位。所有這些設施都有廢物流，必須管理、處置和/或銷毀。我們相信，我們的 AirSCWO 技術能夠為這些市場提供令人信服的廢棄物阻塞解決方案。

Second, the U.S. federal waste management market is estimated at approximately $15 billion. The federal market includes 722 DoD sites, 53 DOE sites and 150 airports under the oversight of the FAA Federal agencies have stockpiles of contaminated waste streams such as AFFF firefighting foam, chemicals, narcotics, biosolids, filtration media, hydrocarbons, and other waste, which must be stored, treated, destroyed and disposed. Federal agencies are actively seeking solutions to eliminate these contaminated waste streams. Again, we believe our AirSCWO system is well positioned to provide a compelling waste destruction solution to these markets.

其次，美國聯邦廢棄物管理市場規模估計約150億美元。聯邦市場包括 722 個國防部站點、53 個能源部站點和 150 個機場，均受美國聯邦航空管理局 (FAA) 的監督。聯邦機構儲存有受污染的廢物流，例如 AFFF 滅火泡沫、化學物質、麻醉劑、生物固體、過濾介質、碳氫化合物和其他廢物，必須儲存、處理、銷毀和處置。聯邦機構正在積極尋求解決方案來消除這些受污染的廢物流。再次，我們相信我們的 AirSCWO 系統能夠為這些市場提供引人注目的廢棄物銷毀解決方案。

Third, the industrial waste management market is estimated at $128 billion. This market is driven by key sectors such as battle recycling, pharmaceuticals and oil and gas, all of which generate significant organic waste. The rapid growth in battery recycling is largely fueled by the rise in electrical vehicle demand, whether oil and gas and pharmaceutical industries continue to contribute substantial amounts of organic waste.

第三，工業廢棄物管理市場規模估計為1,280億美元。這個市場由戰爭廢棄物回收、製藥、石油和天然氣等關鍵產業推動，這些產業都會產生大量有機廢棄物。無論石油天然氣還是製藥業是否繼續產生大量有機廢物，電池回收的快速成長在很大程度上受到電動車需求成長的推動。

Additionally, numerous lawsuits and stringent regulations related to PFAS contamination along with ongoing cleanup efforts, further drive the need for innovative waste destruction solutions creating yet another compelling opportunity for AirSCWO. While it is early days for us in unlocking these market verticals, we feel confident there are substantial opportunities for us.

此外，與 PFAS 污染有關的大量訴訟和嚴格法規以及正在進行的清理工作進一步推動了對創新廢物銷毀解決方案的需求，這為 AirSCWO 創造了另一個引人注目的機會。儘管我們進入這些垂直市場還為時過早，但我們有信心，我們還有很大的發展機會。

Finally, the Resource Conservation Recovery Act, or RCRA. Part B permitted treatment storage and disposal facilities market, includes more than 860 sites in the US. As part of our growth strategy, we're engaging with TSD market participants to establish a national partnership network of waste destruction sites to service customers within our 3 core markets: municipal, federal and industrial to provide waste destruction services, which we believe will enable us to generate substantial recurring service revenue.

最後，資源保護回收法案（RCRA）。B 部分授權的處理儲存和處置設施市場，包括美國 860 多個場地。作為我們成長策略的一部分，我們正在與 TSD 市場參與者合作建立一個廢棄物銷毀場址全國合作夥伴網絡，為我們三大核心市場（市政、聯邦和工業）內的客戶提供廢棄物銷毀服務，我們相信這將使我們能夠產生可觀的經常性服務收入。

We seek to partner with TSDFs who are known to our customers have experience in nonhazardous and hazardous waste treatment and an appropriate local state and federal of permits. We believe our AirSCWO technology is well positioned to provide a compelling waste destruction solution to these market participants.

我們尋求與我們的客戶所熟知的 TSDF 合作，這些 TSDF 在無害和有害廢物處理方面擁有豐富的經驗，並且擁有適當的當地州和聯邦許可證。我們相信，我們的 AirSCWO 技術能夠為這些市場參與者提供引人注目的廢棄物銷毀解決方案。

Our go-to-market strategy is diversified and focused on established end markets desire or waste destruction technology, like our AirSCWO system, we offer customers several procurement options, including capital purchases, leases and waste destruction services. municipal officials and eager to begin waste destruction operations and have expressed interest in capital purchase and WDS models.

我們的市場進入策略是多樣化的，專注於成熟的終端市場需求或廢棄物銷毀技術，例如我們的 AirSCWO 系統，我們為客戶提供多種採購選擇，包括資本購買、租賃和廢棄物銷毀服務。市政官員渴望開始廢棄物銷毀行動，並對資本購買和 WDS 模型表現出興趣。

Federal government officials have plans to remove and destroy PFAS and other ways for numerous military and civilian facilities and have appropriated hundreds of millions of dollars to perform waste destruction work. We believe we are well positioned to secure federal and state government contracts. We have also increased our focus on pursuing industrial waste destruction opportunities, and we believe there is significant opportunity to generate material industrial revenue in the future.

聯邦政府官員計劃為眾多軍事和民用設施清除和銷毀 PFAS 等廢棄物，並撥款數億美元進行廢棄物銷毀工作。我們相信我們有能力獲得聯邦和州政府的合約。我們也更重視尋找工業廢棄物銷毀機會，我們相信未來將有很大機會產生實質的工業收入。

Finally, we are actively pursuing strategic partnerships with TSDF to establish waste destruction service operations. We expect to finalize one or more of these TSDF agreements and could begin operations in 2025. Our team is actively pursuing these market opportunities to add to our growing pipeline and will provide further updates throughout the year. We have discussed at length the market need for our AirSCWO waste destruction technology.

最後，我們正在積極與 TSDF 建立策略合作夥伴關係，以建立廢棄物銷毀服務業務。我們預計將完成一項或多項 TSDF 協議，並可能在 2025 年開始營運。我們的團隊正在積極尋求這些市場機會，以擴充我們不斷成長的產品線，並將全年提供進一步的更新。我們已經詳細討論了我們的 AirSCWO 廢棄物銷毀技術的市場需求。

As we look forward and we continue to expand our business development efforts, further scale our technology and expand our team. We see a very real opportunity to scale the business.

我們展望未來，並將繼續擴大業務發展力度，進一步擴大我們的技術並擴大我們的團隊。我們看到了擴大業務的真正機會。

Our growth outlook involves a combination of capital sales, leases and waste destruction services/this growth will be achieved through a combination of strategic partnerships, market development, and geographic expansion across our municipal federal and industrial markets. Our initial focus remains the US market. For 2025, we have line of sight for $4 million to $6 million in revenue, a current and anticipated future demand we believe we have a path to $250 million to $500 million in revenue in five years.

我們的成長前景涉及資本銷售、租賃和廢物銷毀服務的結合/這一增長將透過戰略合作夥伴關係、市場開發和市政聯邦和工業市場的地理擴張相結合來實現。我們最初的重點仍然是美國市場。到 2025 年，我們的目標是實現 400 萬至 600 萬美元的收入，按照目前和預期的未來需求，我們相信五年內我們的收入將達到 2.5 億至 5 億美元。

I would now like to turn the call over to Russell Kline, our Chief Financial Officer to discuss financial results for the fiscal year 2024.

現在，我想將電話轉給我們的財務長 Russell Kline，討論 2024 財年的財務表現。

Thank you, Chris. Before I discuss our financial results for the 12 months ended December 31, 2024. I would like to highlight that in November 2024, we completed a registered direct offering, which resulted in gross proceeds of $12.2 million and net proceeds of $11.3 million. That funding is being utilized to continue to ruggedize and improve our AS technology, deliver in-process AS systems, prepare to launch our AS waste destruction services offering, further expand our team, including engineering, operations, and manufacturing and expand our manufacturing and engineering facilities.

謝謝你，克里斯。在我討論截至 2024 年 12 月 31 日的 12 個月的財務表現之前。我想強調的是，2024 年 11 月，我們完成了註冊直接發行，總收益為 1,220 萬美元，淨收益為 1,130 萬美元。這筆資金將用於繼續加強和改進我們的 AS 技術、提供在製品 AS 系統、準備推出我們的 AS 廢棄物銷毀服務、進一步擴大我們的團隊（包括工程、營運和製造）以及擴大我們的製造和工程設施。

Importantly, this financing helped replenish our cash reserves with cash and cash equivalents as of December 31, 2024, of $10.7 million as compared to $2.4 million (sic - see press release, "$10.4 million") as of December 31, 2023, and our working capital, which was $11.5 million as of December 31, 2024, compared to $13.5 million as of December 31, 2023.

重要的是，這筆融資幫助我們補充了現金儲備，截至 2024 年 12 月 31 日，現金和現金等價物為 1070 萬美元，而截至 2023 年 12 月 31 日為 240 萬美元（原文如此 - 參見新聞稿“1040 萬美元”），我們的營運資本截至 2015 12 月 31 日為 1350 萬美元。

Now turning to our financial results for the 12 months ended December 31, 2024. The company generated revenue of $445,000, compared to $743,000 in the prior year. The company's business in 2024 have been focused on the development and commercialization of its AirSCWO system. Revenue generated was primarily attributable to manufacturing assembly services and from treatability study services.

現在來看看截至 2024 年 12 月 31 日的 12 個月的財務表現。該公司的收入為 445,000 美元，而去年為 743,000 美元。該公司 2024 年的業務重點是其 AirSCWO 系統的開發和商業化。產生的收入主要歸因於製造組裝服務和可處理性研究服務。

During 2024, we reached fewer milestones and thus incurred less direct contract costs. Costs associated with our sold unit have started to decline as we reach the end of our fabrication and testing which have had a direct correlation to the reduced revenue recognized this year.

2024 年，我們實現的里程碑較少，因此產生的直接合約成本也較少。隨著製造和測試的結束，我們銷售單位的相關成本開始下降，這與今年確認的收入減少有直接關係。

That said, we have gained significant momentum on many promising sales opportunities, which have occurred as a result of lab and full-scale demonstrations. We are in active late-stage negotiations with multiple parties for AS6 and AS30 capital sales. We are also launching our lease destruction services business and recently received an award for AFFF destruction within North Carolina. We believe 2025 will be our best year for revenue.

儘管如此，我們在許多有希望的銷售機會上獲得了巨大的發展勢頭，這些機會都是實驗室和全面演示的結果。我們正在與多方就 AS6 和 AS30 資本銷售進行積極的後期談判。我們還推出了租賃銷毀服務業務，並最近獲得了北卡羅來納州 AFFF 銷毀獎項。我們相信 2025 年將是我們收入最好的一年。

Total operating expenses increased 59% to $11.9 million for the year ended December 31, 2024, compared to $7.5 million for the year ended December 31, 2023. The increase was primarily due to an increase in professional fees of $1.7 million, an increase of $1.2 million in general and administrative expenses, an increase in compensation and related expenses of $0.8 million and an increase in research and development expenses of $0.6 million. The increase in our professional fees are primarily nonrecurring 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.

截至 2024 年 12 月 31 日止年度的總營運費用較截至 2023 年 12 月 31 日止年度的 750 萬美元增加 59% 至 1,190 萬美元。成長的主要原因是專業費用增加 170 萬美元、一般及行政費用增加 120 萬美元、薪酬和相關費用增加 80 萬美元以及研發費用增加 60 萬美元。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。

Further, we incurred additional professional fees for executive search services related to the finding and hiring of certain executives we have hired in 2024. The increases in general and administrative expenses is primarily because of an increase in stock-based compensation, travel and other general and administrative expenses as we continue to build out our executive team. We also incurred relocation-related expenses as we move to our new leased manufacturing facility in Florida. The increase in our research and development expenses is primarily due to an increase in engineering costs and expenses stemming from continued efforts to commercialize our systems.

此外，我們也為尋找和聘用 2024 年聘用的某些高階主管的高階主管搜尋服務產生了額外的專業費用。一般及行政費用的增加主要是因為我們不斷擴充執行團隊，導致股票薪酬、差旅和其他一般及行政費用增加。當我們搬遷至佛羅裡達州新租賃的製造工廠時，我們也產生了與搬遷相關的費用。我們研發費用的增加主要是由於持續努力將我們的系統商業化所導致的工程成本和費用的增加。

Net loss for the year ended December 31, 2024, was $12.4 million as compared with $8.1 million in the prior year. Based upon our current cash position, we project to have adequate cash to support our 2025 business plans. We are in active discussions with possible strategic partners to support our business growth.

截至 2024 年 12 月 31 日的年度淨虧損為 1,240 萬美元，而前一年為 810 萬美元。根據我們目前的現金狀況，我們預計有足夠的現金來支持我們的 2025 年業務計劃。我們正在積極與可能的策略合作夥伴進行討論，以支持我們的業務成長。

I will now hand the call back to Chris for his closing comments.

現在我將把電話轉回給克里斯，請他作最後發言。

Thank you, Russell. In closing, during 2024, we built a strong foundation to grow our business. And now in 2025, we are focused on becoming a growth company into delivering material revenue. 374Water and AirSCWO seeks to address the waste destruction problem domestically and internationally. We are focused on serving large markets who desperately need waste destruction solutions at commercial scale.

謝謝你，拉塞爾。最後，在 2024 年，我們為業務發展奠定了堅實的基礎。現在，到了 2025 年，我們致力於成為一家能夠帶來實質收入的成長型公司。374Water and AirSCWO 致力於解決國內和國際的廢棄物銷毀問題。我們專注於服務迫切需要商業規模廢棄物銷毀解決方案的大型市場。

In addition, the regulatory environment supports demand. Our AirSCWO system is scalable and customizable, allowing us to address large and small customer needs. We have a flexible go-to-market strategy, which includes capital sales, leases, and waste construction services, and we have an actionable and growing opportunity set, which provides us a path to substantial revenue over the coming years.

此外，監管環境支持需求。我們的 AirSCWO 系統具有可擴展性和可自訂性，使我們能夠滿足大大小小的客戶的需求。我們擁有靈活的市場進入策略，包括資本銷售、租賃和廢物建築服務，並且我們擁有可操作且不斷增長的機會集，這為我們在未來幾年實現可觀的收入提供了途徑。

Taken together, we are excited to move forward as the market demand for innovative waste management and destruction solutions has never been greater, further demonstrated by this week's AFFF waste destruction services contract with North Carolina. Throughout 2024, we executed our plan, reaching critical milestones including a industrialized and optimized AS systems.

總而言之，我們很高興能夠繼續前進，因為市場對創新廢物管理和銷毀解決方案的需求從未如此之大，本週與北卡羅來納州簽訂的 AFFF 廢物銷毀服務合約進一步證明了這一點。在整個 2024 年，我們執行了我們的計劃，達到了包括工業化和優化的 AS 系統在內的關鍵里程碑。

Operationally, we expanded our lab facilities, leadership team and operational capital. We believe we are now well positioned at a major inflection point for the company, with a robust and aggressive plan and a clear set of priorities that will enable material growth in 2025. We are confident in our 2025 rollout and the potential for double-digit revenue growth in the future.

在營運方面，我們擴大了實驗室設施、領導團隊和營運資本。我們相信，我們目前正處於公司的一個重要轉折點，我們制定了強有力的積極計劃和明確的優先事項，這將推動公司在 2025 年實現實質成長。我們對 2025 年的推出以及未來兩位數收入成長的潛力充滿信心。

Both Russell and I, as well as the rest of the leadership team, joined this company because of the immense potential to disrupt industries. We believe we are on the right track and appreciate your being shareholders. We look forward to sharing more of our story and meeting new investors at the upcoming Gabelli Funds' 11th Annual Waste, Recycling, and Environmental Services Conference in New York City next week.

拉塞爾 (Russell) 和我，以及其他領導團隊加入這家公司，都是因為它具有顛覆產業的巨大潛力。我們相信我們正走在正確的道路上，並感謝您成為股東。我們期待在下週即將於紐約舉行的 Gabelli Funds 第 11 屆年度廢棄物、回收和環境服務會議上分享更多我們的故事並與新的投資者見面。

I would like to thank all of you for attending who will now hand the call over to the operator to begin our question-and-answer session. Operator, please go ahead.

我感謝大家的出席，現在我會把電話交給接線員，開始我們的問答環節。接線員，請繼續。

(Operator Instructions) Jeff Grampp, Alliance Global Partners.

（操作員指示）Jeff Grampp，Alliance Global Partners。

Appreciate the time. I'm curious to expand a bit on the North Carolina opportunity. And I guess, maybe in the context of things you guys are working on in the pipeline, what is the time line to evaluate? I think it's -- 1,000 gallons was kind of the initial up to 28,000 gallons. What kind of determines where it falls on that spectrum? And what's the general timeline for when you could, I guess, communicate to the market as far as that opportunity progressing?

珍惜時間。我很好奇想進一步了解北卡羅來納州的機會。我想，也許在你們正在進行的工作的背景下，評估的時間表是怎樣的？我認為——最初是 1,000 加侖，最高可達 28,000 加侖。什麼決定了它處於這個範圍的哪個位置？就該機會的進展而言，您可以向市場傳達的大致時間表是怎樣的？

Jeff, thanks so much for joining the question. So as regarding North Carolina, look. They're a very forward-looking state. And so I think they're going to be the model going forward on large-scale. The destruction of AFFF. But specifically to answer your question, that first 1,000 gallons, we literally have six months to complete that waste destruction once we receive it.

傑夫，非常感謝您參與這個問題。關於北卡羅來納州，請看一下。他們是一個非常有遠見的國家。因此我認為它們將成為大規模前進的典範。水成泡沫 (AFFF) 的破壞。但具體回答你的問題，對於前 1,000 加侖，我們在收到後實際上有六個月的時間來完成廢物銷毀。

Now, we don't need that because of the throughput of our system, but that's the amount of time we have until the next phase would start. What they're focused on is the complete elimination of AFFF, and so that's going to be the measure that they're looking for is that it's completely destroyed. It's been destroyed effectively and has been destroyed quickly.

現在，由於我們系統的吞吐量，我們不需要這樣做，但這是我們在下一階段開始之前所擁有的時間。他們關注的是徹底消除 AFFF，因此他們尋求的措施就是將其徹底銷毀。它被有效地摧毀了，並且被迅速摧毀了。

Perfect. That's helpful. And for my follow-up, I'm curious, it sounds like there's a lot of different opportunities here to deploy the AS system. Can you contextualize, like what kind of, I guess, manufacturing capacity you guys currently have? Is that a constraint at all to the growth of the company going forward, at least in the near term?

完美的。這很有幫助。對於我的後續問題，我很好奇，聽起來這裡有很多不同的機會來部署 AS 系統。可以具體描述一下​​嗎，比如說，你們目前的製造能力是怎麼樣的呢？至少在短期內，這是否會對公司未來的發展造成限制？

Yes. Thanks for that question as well. So in terms of our capacity right now for manufacturing, we can manufacture roughly two to four systems at a time. So eventually, we will have to expand our facilities. But right now, we're in a good position.

是的。也感謝您提出這個問題。因此就我們目前的製造能力而言，我們一次可以生產大約兩到四個系統。所以最終我們將必須擴大我們的設施。但現在，我們處於有利地位。

And the two to four range, Chris, that's, I guess, irrespective of the size of a given system.

克里斯，我猜，二到四個範圍與給定係統的大小無關。

Yes, that's correct. I mean when we think about our AirSCWO, I mean that's certainly a small system. We are currently manufacturing that, and that will get deployed very, very shortly. And then when you think about the AS6 or the 30, the 30 is actually not that much larger kind of from a square feet perspective than a 6. So yes, we're comfortable in that range.

是的，正確。我的意思是，當我們考慮我們的 AirSCWO 時，我認為這肯定是一個小系統。我們目前正在生產它，並且很快就會投入使用。然後，當您考慮 AS6 或 30 時，從平方英尺的角度來看，30 實際上並不比 6 大多少。是的，我們對這個範圍感到滿意。

But eventually, yes, we will have to move on to a larger facility. But right now, we're actually manufacturing at the city of Orlando's water reclamation facility. So those of you who've actually visited that facility and seen our AirSCWO in action, and you saw that video that we put up at the front end of the call. that's at that facility in the city of Orlando. We have a neighboring facility, which is a pitching wedge away from there that we are doing our manufacturing in currently.

但最終，我們必須搬到更大的設施。但現在我們實際上是在奧蘭多市的水回收設施進行生產。因此，那些實際參觀過該設施並親眼目睹我們的 AirSCWO 運作情況的人，以及那些看過我們在通話前端播放的影片的人。那是在奧蘭多市的那個設施裡。我們有一個鄰近的工廠，距離那裡只有一個挖起桿那麼遠，我們目前在那裡進行生產。

(Operator Instructions) Thank you. I would now like to turn the call back over to Mr. Gannon for his closing remarks.

（操作員指示）謝謝。現在我想將發言權交還給甘農先生，請他作最後發言。

Thank you, operator. I would like to once again thank everyone for joining our conference call today, and we look forward to continuing to update you on our progress going forward. If you were unable to -- or we didn't answer all of your questions and you have ones that come up, please reach out to our IR firm, MZ Group, who will be able to assist you and get you to the -- people.

謝謝您，接線生。我想再次感謝大家今天參加我們的電話會議，我們期待繼續向大家通報我們未來的進展。如果您無法—或者我們沒有回答您的所有問題，而您還有問題，請聯絡我們的 IR 公司 MZ Group，他們將能夠為您提供協助，並協助您找到相關人員。

Also as another offer for those of you that find yourself in the Orlando area, we would love to scheduled for time to have you come down and see our technology in operation. And as I mentioned earlier, seeing is truly believe in here.

此外，對於奧蘭多地區的您，我們還提供另一項服務：我們很樂意安排時間讓您來親眼看看我們的技術是如何運作的。正如我之前提到的，眼見為憑。

Well, that concludes our fiscal year 2025 update call, and thank you, everybody.

好了，我們的 2025 財年更新電話會議到此結束，謝謝大家。

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

今天的會議到此結束。現在您可以斷開您的線路。感謝您的參與。