374Water Inc (SCWO) 2025 Q3 法說會逐字稿

Greetings and welcome to the 374Water third quarter 2025 financial results conference call. (Operator Instructions) At this time, I will hand the call over to Jim Siccardi, Senior Vice President of Investor relations at 374Water. Please go ahead, sir.

各位來賓，歡迎參加 374Water 2025 年第三季財務業績電話會議。（操作員指示）此時，我將把電話轉交給 374Water 的投資者關係高級副總裁 Jim Siccardi。請繼續，先生。

Thank you, operator. Before we begin the formal presentation, I would like to remind everyone that statements made on this call and webcast may include predictions, estimates, and other information that might be considered forward-looking.

謝謝接線生。在正式開始演講之前，我想提醒大家，本次電話會議和網路直播中發表的聲明可能包括預測、估計和其他可能被視為前瞻性的資訊。

While these forward-looking statements represent our current judgment on what the future holds, they are subject to risks and uncertainties that could cause actual results to differ materially. You are cautioned not to place undue reliance on these forward-looking statements, which reflect our opinions only as of this date of the presentation.

雖然這些前瞻性陳述代表了我們目前對未來方向的判斷，但它們受到風險和不確定性的影響，可能導致實際結果與預期有重大差異。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次演示之日的觀點。

Please keep in mind that we are not obligating ourselves to revise or publicly release results of any revisions to these forward-looking statements in light of new information or future events. Throughout today's discussion, we will attempt to present some important factors relating to our business. That may affect our predictions. You should also review our most recent Form 10-Q and Form 10-K for a more complete discussion of these factors and other risks, particularly under the heading Risk factors.

請注意，我們沒有義務根據新的資訊或未來事件修改或公開披露對這些前瞻性聲明的任何修改結果。在今天的討論中，我們將嘗試介紹一些與我們業務相關的重要因素。這可能會影響我們的預測。您還應該查看我們最新的 10-Q 表格和 10-K 表格，以更全面地了解這些因素和其他風險，尤其是在「風險因素」標題下。

Your host today, Interim President and Chief Executive Officer and Board Director Stephen Jones, and; Chief Financial Officer, Russell Kline, will present the results of the operations for the third quarter ended September 30, 2025.

今天的主持人，臨時總裁兼執行長兼董事會成員史蒂芬瓊斯，以及財務長羅素克萊恩，將介紹截至 2025 年 9 月 30 日的第三季營運結果。

A press release detailing these events 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. With that, I will now turn the call over to [374Water's] Interim President and CEO and board director Steve Jones.

今天下午 4 點 01 分，一份詳細介紹這些事件的新聞稿發出。美國東部時間，詳情請瀏覽公司網站 374water.com 的投資者關係頁面。接下來，我將把電話交給 [374Water] 的臨時總裁兼執行長、董事會成員史蒂夫瓊斯。

Thank you, Jim. Good afternoon, everyone, and thank you all for joining us today. We very much appreciate the support, collaboration, and constructive feedback from shareholders as your active engagement demonstrates your commitment to [374Water's] mission.

謝謝你，吉姆。各位下午好，感謝大家今天蒞臨。我們非常感謝股東們的支持、合作和建設性回饋，你們的積極參與顯示了你們對 [374Water] 使命的承諾。

Before we begin, I'd like to take a moment to introduce myself to those of you whom I've not had the opportunity to meet yet. Last month I accepted the board's request to serve as interim President and Chief Executive Officer in addition to my role as a director of the company.

在正式開始之前，我想花一點時間向我還沒有機會見面的各位介紹一下我自己。上個月，我接受了董事會的請求，除了擔任公司董事外，還兼任臨時總裁兼執行長。

Interim CEO, I'm focused on leading the 374Water team on its continued commercialization of a proprietary supercritical water oxidation technology, or [AirSCWO] as we like to call it, and accelerating conversion of our growing pipeline of opportunities, including the further development of our waste destruction services business.

作為臨時首席執行官，我專注於帶領 374Water 團隊繼續推進其專有的超臨界水氧化技術（我們稱之為 [AirSCWO]）的商業化，並加速轉化我們不斷增長的機會管道，包括進一步發展我們的廢物銷毀服務業務。

My goal is to turn our immediate opportunities into profitable deals and deliver value to you, our shareholders. I was asked to assume this role owing to my extensive experience as an operating executive with expertise in the waste and environmental services spaces, and in the development of own and operate on-site business models employed in the industrial gas and chemical sectors, which is very similar to [374Water's] waste destruction services model, which you've heard us speak about in the past. Previously, I was chief executive officer of [Comana Holding] Corporation.

我的目標是將我們眼前的機會轉化為獲利的交易，並為你們，我們的股東，創造價值。鑑於我作為營運主管在廢棄物和環境服務領域擁有豐富的經驗，以及在工業氣體和化學領域開發自有和現場運營業務模式的專業知識，我被邀請擔任這一職位。這與[374Water]的廢棄物銷毀服務模式非常相似，你們以前也聽我們談過。在此之前，我曾擔任[Comana Holding] Corporation的執行長。

That company is now owned by private equity and renamed ReWorld Waste. ReWorld is a world leader in developing, building, owning, and operating waste facilities and providing environmental and clean tech services. I led Cobana through a rapid growth phase, focused on owning and operating waste destruction facilities and acquiring environmental services companies, providing waste and wastewater services to third-party customers.

該公司現已由私募股權公司擁有，並更名為 ReWorld Waste。ReWorld 是開發、建造、擁有和營運廢棄物處理設施以及提供環境和清潔技術服務的全球領導者。我帶領 Cobana 進入了快速成長階段，專注於擁有和營運廢棄物銷毀設施以及收購環境服務公司，為第三方客戶提供廢棄物和廢水處理服務。

Prior to that, I was with Air Products. Which was an early adopter in owning and operating on-site facilities at customer locations globally, a model which will be an important part of [374Water's] strategy going forward. This role with 374Water is an opportunity to step into a company that I firmly believe has significant value creation potential, and incredible demand for its facilities and services. I appreciate the board's confidence and I'm excited to lead the 374Water team on this journey.

在此之前，我曾在空氣產品公司工作。該公司是最早一批在全球客戶所在地擁有和營運現場設施的公司之一，這種模式將成為[374Water]未來策略的重要組成部分。加入 374Water 擔任這個職位，對我來說是一個難得的機會，讓我能夠進入一家我堅信具有巨大價值創造潛力，並且對其設施和服務有著巨大需求的公司。我感謝董事會的信任，也很榮幸能夠帶領 374Water 團隊踏上這段旅程。

With that, let's jump in. As many of 374Water is an industrial Technology and services company providing innovative solutions for the destruction of solid and liquid organic waste across the industrial, municipal, and federal markets. Waste like POs, the forever chemical.

那麼，讓我們開始吧。374Water 是一家工業技術和服務公司，為工業、市政和聯邦市場提供用於銷毀固體和液體有機廢物的創新解決方案。像PO這樣的廢棄物，一種永遠存在的化學物質。

Our [AirSCWO] technology is designed to efficiently destroy a broad spectrum of non-hazardous and hazardous organic waste, producing safe dischargeable water streams, safe mineral effluent, safe net gas, and recoverable heat energy in the process. It has the potential to assist our customers in meeting discharge requirements, reducing or eliminating disposable costs and reducing other risks.

我們的 [AirSCWO] 技術旨在有效銷毀各種無害和有害有機廢棄物，並在此過程中產生可安全排放的水流、安全的礦物廢水、安全的淨氣體和可回收的熱能。它有可能幫助我們的客戶滿足出院要求，減少或消除處置成本，並降低其他風險。

Our flexible strategy includes several commercial options for our customers. First, the provision of waste destruction services, or we sometimes like to call it WDS, and I think of this as the own and operate business model I spoke about in the industrial gas industry a few minutes ago.

我們靈活的策略包括為客戶提供多種商業選擇。首先是提供廢物銷毀服務，或者我們有時喜歡稱之為 WDS，我認為這就是我幾分鐘前在工業氣體行業中提到的擁有和運營的商業模式。

Second, we get involved in capital sale of equipment to our customers, and third, potential lease options that would include the opportunity for [374Water] to also provide long-term operating and maintenance services to our customers. So this is another form of recurring revenues. I want to be clear, and I have to be clear with our business development team on this issue. I prefer the waste destruction services model as it produces stable recurring revenues and higher Ivotal margins for 374Water.

其次，我們參與向客戶出售設備的資本銷售；第三，潛在的租賃選擇權，包括[374Water]向客戶提供長期營運和維護服務的機會。所以這是另一種形式的經常性收入。我想把這個問題說清楚，而且我必須就這個問題向我們的業務拓展團隊說清楚。我更傾向於廢棄物銷毀服務模式，因為它能為 374Water 帶來穩定的經常性收入和更高的利潤率。

We're targeting the waste treatment market which, including the destruction of PFOs and other forever chemicals, is roughly [$450 billion]. Most companies couldn't even imagine an addressable market of that size. It presents a significant growth opportunity for us over the next few years. The size of the market and the urgency related to dealing with issues like PFO destruction.

我們的目標是廢棄物處理市場，該市場（包括銷毀全氟化合物和其他永久性化學物質）大致佔…[4500億美元]大多數公司甚至無法想像會有如此龐大的潛在市場。未來幾年，這將為我們帶來巨大的發展機會。市場規模以及處理諸如PFO銷毀等問題的迫切性。

Create significant demand for our facilities and services and should generate a strong profitable revenue stream for the company for the foreseeable future. Moving on to our operational highlights and business updates. I'd like to discuss some of the team's many accomplishments.

這將為我們的設施和服務創造巨大的需求，並在可預見的未來為公司帶來強勁的獲利收入。接下來是我們的營運亮點和業務最新進展。我想談談團隊所取得的一些成就。

During the third quarter, we signed the waste destruction Services collaboration agreement with Crystal Clean, a leading provider of environmental and waste management solutions. We're excited about working with Crystal Clean at their Oregon, Ohio location as we introduce our waste destruction services business at a transfer of storage and disposal facility. These are a lot of times you'll hear these, they're called TSDF TSDF facilities in the industry.

第三季度，我們與領先的環境和廢棄物管理解決方案提供商 Crystal Clean 簽署了廢棄物銷毀服務合作協議。我們很高興能與 Crystal Clean 合作，在其位於俄亥俄州俄勒岡的工廠推出我們的廢物銷毀服務業務，該工廠集轉運、儲存和處置於一體。你會經常聽到這些，它們在業內被稱為 TSDF 或 TSDF 設施。

We expect our waste destruction services business to address growing demand across the wide array of market verticals and waste streams. And this agreement serves as a model for future collaborations to create a national network CFDF partnerships with companies like Crystal Clean and other similar companies that work in this space.

我們預期我們的廢棄物銷毀服務業務能夠滿足各個市場領域和廢棄物流不斷增長的需求。該協議可作為未來合作的典範，以建立全國性的 CFDF 合作夥伴關係，與 Crystal Clean 等公司以及其他在該領域開展業務的類似公司建立合作關係。

We expect that this is the first of many similar arrangements in the industrial waste space as this as this is a large market segment that is underserved. In Q3, we successfully deployed our airflow technology to a Colorado School of Mines and Department of Defense project aimed at comparing technology solutions for the destruction of PFAS contaminated waste.

我們預計這將是工業廢棄物領域眾多類似安排中的第一個，因為這是一個服務不足的大型市場領域。第三季度，我們成功地將氣流技術部署到科羅拉多礦業大學和國防部的一個專案中，該專案旨在比較銷毀 PFAS 污染廢棄物的技術解決方案。

We treated [PFfos] impact sediment from the Peterson Space Force Base. We believe this initiative demonstrates our ability to destroy [pefo] impacted waste streams as a treatment option for DOD installation. No, we're awaiting the final report on this project so we can provide additional tech technical details to the marketplace.

我們對來自彼得森太空部隊基地的[PFfos]撞擊沉積物進行了處理。我們相信這項舉措表明我們有能力銷毀受 [pefo] 影響的廢物流，作為國防部設施的一種處理方案。不，我們正在等待該項目的最終報告，以便向市場提供更多技術細節。

We also successfully completed a commercial scale field demonstration at Clean Earth's Detroit facility as part of a DOD project. For six weeks, we executed TFO's destruction of multiple concentrated waste streams at a commercial PSDF site using an Aerospo 6 unit, once again demonstrating the effectiveness, scalability, and versatility of our technology.

作為美國國防部計畫的一部分，我們也在 Clean Earth 位於底特律的工廠成功完成了一項商業規模的現場演示。六週以來，我們使用 Aerospo 6 設備在商業 PSDF 場地執行了 TFO 對多種濃縮廢物流的銷毀，再次證明了我們技術的有效性、可擴展性和多功能性。

This project represented a major step forward in our effort to provide the DOD with commercial POS treatment options for a variety of scenarios and waste types. We expect this project to open up a number of additional DD projects for us in the future. More recently, we secured an order from the city of Olathe, Kansas for the sale and deployment of an [AirSCWO 6 unit] and a related pre-treatment and dewatering system.

該計畫標誌著我們在為美國國防部提供適用於各種場景和廢棄物類型的商業POS處理方案方面邁出了重要一步。我們預計這個專案將在未來為我們帶來許多其他的DD專案。最近，我們從堪薩斯州奧拉西市獲得了一筆訂單，用於銷售和部署一台 [AirSCWO 6 裝置] 以及相關的預處理和脫水系統。

[Olasa] will use the [AirSCWO] process at its wastewater treatment facility and assess its potential as a sustainable alternative to traditional sludge management practices and disposal methods. Like landfill application and landfill disposal, which are becoming more difficult to utilize for these types of customers, EAA will deploy the system to treat various waste streams over a six-month period, after which they will determine the potential to further scale [374Water's] technology at their facility.

[Olasa] 將在其廢水處理廠使用 [AirSCWO] 工藝，並評估其作為傳統污泥管理實踐和處置方法的可持續替代方案的潛力。對於這類客戶而言，垃圾掩埋場的應用和處置正變得越來越困難。 EAA 將在六個月內部署該系統來處理各種廢物流，之後他們將確定在其設施中進一步擴大 [374Water 的] 技術規模的潛力。

We recently began processing an award by the state of North Carolina for waste construction services to destroy aqueous film forming foam or better known as AFFF in the market utilizing our airspo technology. In the first phase, and we're in this process now, we'll process [1,000 gallons] of AFFF for North Carolina and as I mentioned, we're doing that now. If selected for the second phase, we could treat up to an additional [28,000 gallons] of AFFF.

我們最近開始處理北卡羅來納州授予的一項廢物建築服務合同，該合同涉及利用我們的 Airspo 技術銷毀水成膜泡沫（AFFF）。在第一階段，也就是我們現在所處的階段，我們將為北卡羅來納州處理 1000 加侖的 AFFF，正如我剛才提到的，我們現在正在這樣做。如果被選中進入第二階段，我們可以處理多達 28,000 加侖的 AFFF。

With millions of gallons of AF in the US and even more globally if you think about Europe. Needing to be eliminated or destroyed, this award is an opportunity to show the market that our technology can be the solution for AFS liability and returns that are advantageous to the company.

美國每年消耗數百萬加侖的AF，如果算上歐洲，全球消耗量甚至更多。這項獎項旨在消除或銷毀 AFS 負債，這是一個向市場展示我們的技術可以成為 AFS 負債解決方案，並為公司帶來有利回報的機會。

As you know from prior calls, we are preparing for our [AirSCWO 6] system deployment to the Orange County Sanitation District, or OCA in California, and we expect to complete our factor acceptance test in the fourth quarter. We continue to be focused on late Q4 2025 or early Q1 2026 to start up this unit.

正如您從先前的通話中了解到的，我們正在準備將 [AirSCWO 6] 系統部署到加州的橙縣衛生區 (OCA)，我們預計將在第四季度完成驗收測試。我們仍計劃在 2025 年第四季末或 2026 年第一季初啟動該部門。

We have undertaken certain system upgrades to the A row six unit over the last month or so to improve system performance and ensure our successful completion of the factory acceptance test. Things like improving our waste reactor in our air scrow unit and adding a heating block to the process, all of which will lead to improved performance and throughput for the air slow six unit.

在過去一個月左右的時間裡，我們對 A 排 6 單元進行了一些系統升級，以提高系統效能並確保我們成功完成工廠驗收測試。例如改良空氣慢速六號裝置的廢料反應器，並在製程中添加加熱塊，所有這些都將提高空氣慢速六號裝置的性能和吞吐量。

OC stands remain committed to working together with 374Water on the evolution of [aeroslow] technology to address their ongoing treatment needs. Also note that during the quarter, we took several initiatives to strengthen our balance sheet and support long-term shareholder value. Most recently, we fortified our balance sheet from our at the market or ATM facility, which resulted in gross proceeds of approximately $7 million extending our cash runway into the second quarter of 2026.

OC 將繼續致力於與 374Water 合作，共同推進 [氣溶膠慢速] 技術的演進，以滿足其持續的污水處理需求。另請注意，在本季度，我們採取了多項措施來加強資產負債表並支持股東的長期價值。最近，我們透過市場或 ATM 融資管道加強了資產負債表，獲得了約 700 萬美元的總收益，使我們的現金儲備能夠維持到 2026 年第二季。

Also note that certain officers and directors purchased shares of 374Water in the open market in the third quarter, further evidencing their positive view of the company. Spoke about hitting two very important milestones that will greatly impact revenue in 2026. The commencement of the first phase of our award by the state of North Carolina, pursuant to which we will be providing wage destruction services related to AFFF.

另請注意，某些高階主管和董事在第三季於公開市場購買了 374Water 的股票，進一步證明了他們對該公司的正面看法。談到實現了兩個非常重要的里程碑，這將對 2026 年的收入產生巨大影響。根據北卡羅來納州授予我們的第一階段合同，我們將提供與 AFFF 相關的工資銷毀服務。

And the sale of [AirSCWO six units] to the city of Oletta. I believe that both of these awards provide validation to our alternative business models. Whether waste construction services, a capital sale of equipment, or a lease of an air squo unit to a customer. Taken together along with our anticipated startup at OCSA.

以及向奧萊塔市出售 [AirSCWO 六台設備]。我認為這兩個獎項都證明了我們另類商業模式的正確性。無論是廢棄建築服務、設備資本銷售，或是將空氣品質裝置租給客戶。結合我們在OCSA的預期創業計劃。

We now have a line of sight towards 2026 revenue that is expected to be in the $6 million to $8 million dollar range. That is a 50% to 100% increase over our expected 2024 revenues. And know that this does not include additional opportunities in our pipeline that we're working on to monetize during fiscal year 2026. So, I believe we're setting ourselves up for a very successful 2026.

我們現在可以預見到 2026 年的收入將在 600 萬至 800 萬美元之間。這比我們預期的 2024 年營收成長 50% 至 100%。此外，請注意，這還不包括我們正在努力開發、計劃在 2026 財年實現盈利的其他項目。所以，我相信我們正在為2026年取得巨大成功做好準備。

Finally, on a more personal note, I'd like to formally welcome Jim Siccardi, who is on his first 374Water earnings call. Jim is our Senior Vice President of Investor Relations. He has been an investor relations expert for over 20 years and has focused his entire career on driving shareholder value, strategic growth, and market expansion within the energy, natural resource, and industrial sectors.

最後，就我個人而言，我想正式歡迎 Jim Siccardi，這是他第一次參加 374Water 的財報電話會議。吉姆是我們負責投資者關係的高級副總裁。他從事投資者關係工作超過 20 年，畢生致力於推動能源、自然資源和工業領域的股東價值、策略成長和市場擴張。

Jim is an expert at developing relationships with investors and we work to raise awareness of 374Water and our related market opportunities. Expect to hear more from Jim as we further advance our business plans at 374Water in 2026.

Jim 非常擅長與投資者建立關係，我們致力於提高人們對 374Water 及其相關市場機會的認識。隨著我們在 2026 年進一步推進 374Water 的業務計劃，敬請期待 Jim 的更多消息。

Now with that, I'll turn the call over to Russell.

現在，我將把電話交給羅素。

Thank you, Steve. As Steve mentioned, we are aggressively pursuing our three-pronged business strategy waste destruction services, capital sale equipment, or lease of equipment based upon customer business needs.

謝謝你，史蒂夫。正如史蒂夫所提到的，我們正在積極推行我們的三管齊下的商業策略：根據客戶的業務需求提供廢棄物銷毀服務、資本銷售設備或租賃設備。

Based on internal assumptions and modeling, we estimate our mobile [AirSCWO unit] has the potential to generate more than $2 million in annual revenue, as the mobile fleet will generate higher tipping fees due to the nature of on-site waste destruction services.

根據內部假設和建模，我們估計我們的移動式 [AirSCWO 裝置] 有潛力每年產生超過 200 萬美元的收入，因為移動車隊由於現場廢物銷毀服務的性質，將產生更高的傾倒費。

We will naturally increase the size of this mobile fleet as the market expands. Also, based on our internal assumptions and modeling, we estimate our [AirSCWO 6 unit] has the potential to generate $3 million to $5 million in recurring annual revenues with attractive operating margins. We plan to initially utilize the AirSCWO 6 units at TSDFs to provide waste destruction services. We also plan to utilize a modular solution in building these types of AirSCWO units in order to both lower our capital costs and be quicker in delivering these units to our customers.

隨著市場擴張，我們自然會擴大這支行動車隊的規模。此外，根據我們的內部假設和建模，我們估計我們的 [AirSCWO 6 單元] 有潛力產生 300 萬至 500 萬美元的經常性年收入，並具有可觀的營運利潤率。我們計劃先在垃圾處理廠使用 AirSCWO 6 設備提供垃圾銷毀服務。我們還計劃採用模組化解決方案來建造這類 AirSCWO 裝置，以便降低我們的資本成本，並更快地將這些裝置交付給我們的客戶。

Once ready, we plan to utilize AirSCWO 30 units at TSDF partner facilities to dramatically increase our waste destruction capacity, decrease operating costs, and increase revenues. It's important to note the revenues I just highlighted are based on non-hazardous waste tipping fees. We expect that tipping fees associated with processing hazardous waste with our air spill units will be material higher and will increase returns on these assets. We are excited about the waste destruction service opportunity to drive shareholder value.

一旦準備就緒，我們計劃在 TSDF 合作夥伴設施中使用 AirSCWO 30 裝置，以大幅提高我們的廢棄物銷毀能力，降低營運成本，並增加收入。值得注意的是，我剛才提到的收入是基於非危險廢棄物傾倒費用計算的。我們預計，使用我們的空氣洩漏處理裝置處理危險廢物的相關傾倒費用將大幅增加，這將提高這些資產的回報。我們對廢棄物銷毀服務這項能提升股東價值的機會感到非常興奮。

For the third quarter of 2025, revenue increased to [$760,000 compared to $81,000] in the prior year. Our business has been focused on the development and commercial commercialization of our Escrow units to fulfill ongoing projects.

2025 年第三季度，營收成長至 76 萬美元（上年同期為 8.1 萬美元）。我們的業務一直專注於開發和商業化我們的託管單元，以滿足正在進行的專案。

Revenue generated was primarily from waste destruction services, the approximate [$679,000] increase is primarily due to an increase in our service revenues of approximately [$643,000] from the completion of waste destruction service projects and $36,000 in equipment capital revenue.

產生的收入主要來自廢物銷毀服務，約 679,000 美元的增長主要歸功於廢物銷毀服務項目完成帶來的約 643,000 美元的服務收入增長以及 36,000 美元的設備資本收入。

Total operating expenses increased 64% to $4.6 million for the three months ended. September 30, 2025, compared to $2.8 million in the prior year period. The increase was primarily due to material increase in commercial activities including deployments and projects to be delivered. We are focusing our resources on the manufacturing and operations side of our business from a cost standpoint.

截至三個月結束，總營運支出成長 64%，達到 460 萬美元。截至 2025 年 9 月 30 日，與上年同期的 280 萬美元相比。成長的主要原因是商業活動的實質增加，包括部署和待交付的項目。從成本角度來看，我們將資源集中投入到業務的製造和營運方面。

There was a $0.9 million increase in compensation and related expenses, an increase of $0.3 million in research development, and an increase of $0.8 million in general and administrative expenses. Net loss for the three months ended September 30, 2025, was $4.3 million as compared with $2.7 million in the prior year.

薪資及相關費用增加了 90 萬美元，研發費用增加了 30 萬美元，一般及行政費用增加了 80 萬美元。截至 2025 年 9 月 30 日止三個月，淨虧損為 430 萬美元，去年同期為 270 萬美元。

Cash and cash equivalent as of September 30, 2025, was $0.9 million as compared to $10.7 million as of December 31, 2024. As of September 30, 2025, working capital was $1.9 million compared to $4.5 million as of September 30, 2024. In September, the company entered into a [$600,000 short-term promissory note], which is, which we expect to repay in January 2026.

截至 2025 年 9 月 30 日，現金及現金等價物為 0.9 百萬美元，而截至 2024 年 12 月 31 日為 10.7 百萬美元。截至 2025 年 9 月 30 日，營運資金為 190 萬美元，而截至 2024 年 9 月 30 日，營運資金為 450 萬美元。9 月，該公司簽訂了一張 [60 萬美元的短期本票]，我們預計將於 2026 年 1 月償還。

Based upon our current cash position, including the $7 million raised from the ATM facility that Steve mentioned earlier, and expected billings and related collections, we projected adequate cash to support our business plans into Q2 2026.

根據我們目前的現金狀況，包括史蒂夫之前提到的從 ATM 設施籌集的 700 萬美元，以及預期的賬單和相關收款，我們預計有足夠的現金來支持我們的業務計劃到 2026 年第二季度。

To deliver on the planned business growth, we will require additional capital and are actively pursuing additional capital raising opportunities to fund waste destruction services and our strategic growth initiatives. The company is currently actively engaged with potential investors and possible strategic partners to fund these capital needs.

為了實現計劃中的業務成長，我們需要額外的資金，目前正在積極尋求額外的融資機會，為廢棄物銷毀服務和我們的策略成長計畫提供資金。公司目前正積極與潛在投資者和可能的策略夥伴接洽，以滿足這些資金需求。

Looking to the remainder of 2025, our revenue projection is $4 million in revenue based upon year-to-date activity and expected project milestones for the fourth quarter. As discussed, we have completed our DIU project and our Peterson Space Force Base DOD work, which were both recognized in Q3.

展望 2025 年剩餘時間，根據年初至今的活動和第四季的預期專案里程碑，我們預計營收為 400 萬美元。正如之前討論過的，我們已經完成了 DIU 項目和彼得森太空部隊基地國防部項目，這兩個項目都在第三季度得到了認可。

Importantly, we continue to make progress in our Orlando biosolids destruction project and our OCA factory acceptance test and deployment to California. In addition, as noted earlier, we have begun processing the North Carolina ARLF at our facility in Orlando.

重要的是，我們在奧蘭多生物固體銷毀專案以及 OCA 工廠驗收測試和向加州部署方面繼續取得進展。此外，正如前面提到的，我們已經開始在奧蘭多的工廠處理北卡羅來納州 ARLF。

Finally, we expect to recognize a portion of the revenue related to the capital sale of equipment until a [lat] later this year. Based on current and anticipated future demand, and the fact that we are beginning to convert our commercial pipeline into actionable backlog, we project revenue to be in the range of $68 million in calendar 2026 with growth in both the waste destruction services and capital sale of equipment.

最後，我們預計要到今年稍後才能確認與設備資本出售相關的部分收入。根據當前和預期的未來需求，以及我們正在將商業管道轉化為可執行的積壓訂單的事實，我們預計到 2026 年，收入將在 6800 萬美元左右，廢物銷毀服務和設備資本銷售都將實現增長。

One final item I would like to highlight. The company recently filed a proxy statement with the Securities and Exchange Commission in connection with the company's upcoming special meeting of shareholders to be held on December 15, 2025.

最後我想強調一點。該公司最近向美國證券交易委員會提交了一份委託書，與該公司即將於 2025 年 12 月 15 日舉行的股東特別大會有關。

The purpose of the special meeting is to request that stockholders approve amendments to the company's certificate of incorporation to effect a reverse stock split of our common stock. As many of in July 2025, we filed a Form 8-K highlighting for investors that the company's stock listing listed on NASDAQ had been trading for less than $1 per share for more than 30 consecutive trading days, and therefore, the company was not in compliance with the bid price requirement of the NASDAq listing rules.

本次特別股東大會的目的是請求股東批准修改公司章程，以實現普通股的反向股票分割。2025 年 7 月，我們提交了一份 8-K 表格，向投資者強調，該公司在納斯達克上市的股票連續 30 多個交易日的交易價格低於每股 1 美元，因此，該公司不符合納斯達克上市規則的競價要求。

The company must regain compliance by January 12, 2026. The company's goal is to meet the NASDAq requirement by executing a normal business operation, but if we are not successful, the board felt it was appropriate to request shareholder approval to effect a reverse stock split at the board's discretion to make to ensure that we maintain our NASDAq listing.

該公司必須在 2026 年 1 月 12 日之前恢復合規狀態。該公司的目標是透過正常業務運作來滿足納斯達克的要求，但如果未能成功，董事會認為有必要請求股東批准，由董事會酌情決定進行反向股票分割，以確保我們維持在納斯達克的上市地位。

If the reverse stock split is approved and we maintain a trading price above $1 for at least 10 consecutive trading days, then we expect to maintain our listing on NASDAq. The board of directors of 374Water believe it is important to remain listed as a publicly traded company on NASDAq. Among other things, our NASDAq listing will greatly increase the company's access to capital markets, like use of our ATM, which has been important to our ability to, excuse me, to obtain sufficient working capital to finance our ongoing operations.

如果反向股票分割獲得批准，而我們連續 10 個交易日保持股價高於 1 美元，那麼我們預計將繼續在納斯達克上市。374Water 的董事會認為，繼續在納斯達克上市交易非常重要。除此之外，我們在納斯達克上市將大大增加公司進入資本市場的機會，例如使用我們的ATM機，這對於我們獲得足夠的營運資金來資助我們持續的營運至關重要。

A reverse stock split will also improve trading liquidity by increasing the price per share of our common stock, which could enable a broader range of institutions which may have a minimum level of price restriction to be able to add 374Water to their portfolios.

反向股票分割也將透過提高我們普通股的每股價格來改善交易流動性，這將使更多可能存在最低價格限制的機構能夠將 374Water 添加到他們的投資組合中。

It also allows the company to potentially pursue alternative financing op financing options as we grow our business. The board and management team remain fully confident in [374waters'] long-term prospects and view this measure as one of several potential steps to strengthen the company and position it for future growth.

隨著業務的成長，這也使公司有可能尋求其他融資或融資方案。董事會和管理團隊對[374waters]的長期前景仍然充滿信心，並將此措施視為加強公司實力並為未來成長做好準備的幾個潛在步驟之一。

I will now hand the call back to Steve for his closing comments. Thank you.

現在我將把電話轉回給史蒂夫，請他做總結發言。謝謝。

Thanks, Russell. I appreciate it. I've been asked by many of you where I'll focus my attention in the immediate future, and I think there's two specific areas I'd like to drive improvement. First, I believe we need to continually improve on the throughput of our slow units. The ability of our airflow technology to to effectively destroy PFOS is well known now in the marketplace.

謝謝你，羅素。謝謝。很多人問我，在不久的將來我會把注意力集中在哪裡，我認為有兩個具體的領域我想著力改進。首先，我認為我們需要不斷提高低速單元的吞吐量。我們的氣流技術能夠有效分解 PFOS，這在市場上已廣為人知。

However, as a company, we need to continue to drive improvement by using tools many other larger companies use like [Lean six Sigma], so that we can process more PFO materials through our units. We're spending a great deal of time and energy improving in this area right now and are currently making several important upgrades to our airscrow units.

但是，作為一家公司，我們需要繼續利用許多其他大公司使用的工具（如精益六西格瑪）來推動改進，以便我們能夠透過我們的部門處理更多的 PFO 材料。我們目前投入了大量的時間和精力來改進這方面，並且正在對我們的氣密裝置進行幾項重要的升級。

As I noted previously, we've had great results with the with the destruction efficiency. A lot of times it's nondetectable or 99.999% destroyed, and now we need to go up that continuous improvement curve as it relates to throughput, making sure that we can process increased volumes of materials. Higher throughput means higher EBITDA margins.

正如我之前提到的，我們在銷毀效率方面取得了非常好的成果。很多時候，它要么無法檢測，要么 99.999% 被破壞，現在我們需要沿著這條持續改進曲線向上攀升，提高吞吐量，確保我們能夠處理更多數量的材料。更高的產量意味著更高的 EBITDA 利潤率。

Second, we need to focus our resources. We're not a very large company. We have about 50 employees or so at this stage. And as I've said, there's a vast market for destruction of pea pots and other organic waste out there in the marketplace.

其次，我們需要集中資源。我們公司規模不大。目前我們大約有50名員工。正如我所說，市場上對豌豆盆和其他有機廢棄物的銷毀有著巨大的需求。

So, we need to focus our business development efforts on those opportunities that have the highest likelihood of success and the greatest return on capital for our shareholders. I'll be spending my time working with the business development team, and I've started it already, to focus on those opportunities where we can be most successful and get the highest returns.

因此，我們需要將業務拓展精力集中在那些成功幾率最高、能為股東帶來最大資本回報的機會。我將把時間花在與業務拓展團隊合作上，而且我已經開始了這項工作，目的是專注於那些我們最有可能取得成功並獲得最高回報的機會。

Recently, I had the opportunity to speak with a lot of the employees on a trip, down to Orlando facilities, and it was very exciting. I was really impressed with the talent and the passion of our team, and they're very dedicated to making 374Water a success, so I see a very bright future for the company.

最近，我有機會去奧蘭多工廠與許多員工交談，這真是令人興奮。我對我們團隊的才華和熱情印象深刻，他們非常致力於讓 374Water 取得成功，所以我認為公司前景非常光明。

Finally, as I mentioned earlier, we anticipate 2026 revenue in that $6 million to $8 million dollar range on a combination of waste construction services and capital sale of equipment to our customers. This is a 50% to 100% increase in revenues over our current 2025 revenue expectations. So we're growing fast and I expect that to continue in the outlying years.

最後，正如我之前提到的，我們預計 2026 年的收入將在 600 萬至 800 萬美元之間，這主要來自廢棄物處理工程服務和向客戶出售設備的資本收入。這比我們目前對 2025 年的收入預期增加了 50% 到 100%。所以我們發展迅速，我預計這種趨勢在未來幾年還會持續。

So, I'd like to thank everyone for joining us today. I appreciate you taking the time to listen to the 374Water story, and I'll now hand the call over to the operator to begin our question-and-answer session. Thanks again. Operator, please go ahead.

所以，我要感謝今天到場的各位。感謝您抽出時間收聽 374Water 的故事，現在我將把電話交給接線員，開始我們的問答環節。再次感謝。操作員，請開始。

(Operator Instructions)

（操作說明）

Rob Brown, Lake Street Capital Markets.

羅布布朗，湖街資本市場。

Good afternoon and congratulations on all the progress.

下午好，祝賀你們取得的所有進展。

Thank you.

謝謝。

Maybe first on the, the TSDF facilities you've got the first one kind of going now. How is the pipeline in that segment? I know it's a large segment. What are sort of the steps to getting that pipeline going, and I assume it's one of the main areas that is worth focusing on, but what's the pipeline there?

或許首先是TSDF設施，你們的第一個設施現在基本上已經投入使用了。該領域的管道情況如何？我知道這是一個很大的群體。要啟動這條管道需要哪些步驟？我猜這是值得關注的主要領域之一，但那裡的管道是什麼樣的呢？

Yeah, so there's a lot of TSDF facilities in the US, and there are also many more material processing facilities. [TSDF] is so I operated a few of the, I operated a lot of these when I was at ReWorld. [PSTF] basically deals with recra, so hazardous waste material. And so, we're in discussions with a [maj] a number, maybe a majority I'd say of the [TSDS] operators in the US right now about putting air flow units on their site and so Crystal Clean was the first one.

是的，美國有很多TSDF設施，還有很多其他材料處理設施。 [TSDF]是我在ReWorld工作時經營過的一些設施，或者說很多設施。 [PSTF]主要處理RECRA，也就是危險廢棄物。因此，我們目前正在與美國大部分（我可以說是大多數）TSDS運營商討論在其場所安裝氣流裝置，而Crystal Clean是第一個。

We have discussions underway with others, and I've, and I know a lot of the operators since I operated in this space, so I've reached out to my network to see who's interested in, utilizing our technology to destroy TFOs. There's not a lot of good options that are out there at this point and our technology, like I said, is a very efficient instruction. And so, we're going through that process now.

我們正在與其他公司進行討論，而且我認識很多業內人士，因為我曾從事過這方面的工作，所以我聯繫了我的關係網，看看誰有興趣利用我們的技術摧毀TFO。目前市面上並沒有太多好的選擇，而我們的技術，就像我說的，是一種非常有效率的教學方式。所以，我們現在正在經歷這個過程。

So, our business development team, and I've been kind of riding them recently, is, I, I've been, making sure that they're following up with the various TSTF owners, across the US and seeing who wants to partner with us, in this process.

所以，我們的業務發展團隊（我最近一直在督促他們），確保他們跟進美國各地的 TSTF 所有者，看看誰想在這個過程中與我們合作。

I ultimately, I see us as a. As the TFTS being a host customer, and again it's a lot like the industrial gas business model, the own and own and operate on-site business model where we're going to put one of the, one of our units on their site.

最終，我認為我們是一個。TFTS​​ 作為東道主客戶，這與工業氣體業務模式非常相似，即擁有並運營現場業務模式，我們將把我們的一台設備放置在他們的現場。

They'll probably have some access to the unit for their own PFOs needs, and then we'll also bring PFOs in from, let's say the federal government, Department of Defense, ACAF, for example, and we'll process ACAF, through the air slow unit.

他們可能會因為自己的 PFO 需求而獲得一些權限，然後我們也會從聯邦政府、國防部、空軍司令部等機構調集 PFO，並透過空軍慢速部隊處理空軍司令部的相關事宜。

So, like I said, there's a number of opportunities that are out there, and that's in the hazardous side. On the non-hazardous side, as, companies, and again, there's, it's this public companies like Clean Harbors, for example, and there's a lot of companies out there that play in the space, as does Reworld, my old company, as they start to look at how they're going to, destroy, non-hazardous material.

所以，就像我說的，有很多機會擺在眼前，但這都是高風險的。在非危險物質方面，一些公司，例如 Clean Harbors 這樣的上市公司，還有很多公司在這個領域開展業務，就像我的老東家 Reworld 一樣，他們開始考慮如何銷毀非危險材料。

They can also use our [AirSCWO] technology at these material processing facilities, and there are a lot of those in the US. I mean, they're, it's a very large market. So that's what we're going through right now. We're basically looking at the various leads, and as I said, what I really want to focus on is those opportunities that are closest in and that will lead to the highest internal rate of returns, so return on capital for our shareholders.

他們也可以在這些材料加工廠中使用我們的 [AirSCWO] 技術，而美國有許多這樣的工廠。我的意思是，這是一個非常大的市場。這就是我們目前正在經歷的事情。我們基本上是在檢視各種線索，正如我所說，我真正想關注的是那些最接近成功的機會，這些機會將帶來最高的內部報酬率，也就是為我們的股東帶來最高的資本報酬率。

Okay, excellent.

好的，太好了。

And then I guess second question on the North Carolina, contract. I know you're doing the first phase, but how is that phasing set up and what's the timeline on sort of the second larger phase?

然後我想問第二個問題，關於北卡羅來納州的合約。我知道你們正在進行第一階段的工作，但這個階段是如何安排的？第二個更大階段的時間表是什麼？

So, the first phase is [1,000 tons] or excuse me, [1,000 gallons of AFFF]. We're in the process of putting that through the unit now. We started that, last week. So we're two weeks into it. But once that gets processed, North Carolina, and they have representatives from [UNC] and I think also [NC] State who are out periodically at our facility.

所以，第一階段是[1000噸]，或是抱歉，[1,000 加侖 AFFF]。我們正在將它送入設備進行測試。我們上週就開始做了。現在已經過去兩週了。但一旦處理完畢，北卡羅來納州，而且他們有來自北卡羅來納大學教堂山分校（UNC）和我認為還有北卡羅來納州立大學（NC State）的代表，他們會定期到我們這裡來。

And they're taking samples and doing various, technical readings, they'll take that back and start to give some thought to how they get rid of the 28,000 additional gallons that they want to process. So that's how it'll play out. I'm not sure exactly what the timing of their decision making will be, but like I said, we're in the process now of destroying [AFLF], and it's working well.

他們正在採集樣本並進行各種技術讀數，然後他們會把這些數據帶回去，開始考慮如何處理他們想要處理的額外 28,000 加侖水。事情就是這樣發展的。我不太確定他們何時會做出決定，但就像我說的，我們現在正在摧毀[AFLF]，而且進展順利。

Great. And I guess last question on the on the 26-outlook good growth there. How's the how do you sort of see the mix of business in that in that number between the way services and the capital sale?

偉大的。我想最後一個問題是關於26日的展望，那裡的成長前景很好。您如何看待服務和資本銷售這兩種業務組合在數位上的關係？

So why don't you answer that? You're probably closer to the mix, in 2026.

那你為什麼不回答這個問題呢？到 2026 年，你可能離這個目標更近了。

Sure, thanks, Steve and Rob, thank you for joining us and for your questions. For 2026, we have a mix between our launch and expansion with waste destruction services and then the capital sale, that we recently announced for Kansas as well as. Expected capital sale, for another project that we have out for bid, and then, as Steven mentioned earlier, there are other opportunities that we are actively pursuing, that we would, look to build into 2026 as we continue to progress in those discussions.

當然，謝謝史蒂夫和羅布，謝謝你們的參與和提問。2026 年，我們將推出並擴展廢棄物銷毀服務，同時也將進行資本出售，我們最近也宣布了在堪薩斯州的出售計畫。預計我們將出售部分資金用於另一個正在招標的項目，然後，正如史蒂文之前提到的，我們還在積極尋求其他機會，隨著我們繼續推進這些討論，我們希望能在 2026 年之前實現這些機會。

So, you're going to see rock over time and I, and I brought this up, sorry to jump in. I brought this up, a services business, so waste destruction services business, is going to provide higher EBITDA margins and then ultimately a higher valuation for the company.

所以，隨著時間的推移，你會看到搖滾樂的發展，而我，我提到了這一點，抱歉打斷一下。我提出，服務型企業，例如廢棄物處理服務企業，將帶來更高的 EBITDA 利潤率，最終為公司帶來更高的估值。

It does require more capital because you own and operate the asset. Sale of capital equipment will bring in, cash more quickly, and, but it doesn't, but you [gotta] sell in the sale of equipment business which I've run both of these types of businesses in my career at both Air Products and also at [Comanta] slash now Reworld.

因為你需要擁有並經營資產，所以確實需要更多資金。出售資本設備可以更快地帶來現金，但是，事實並非如此，你必須在設備銷售業務中出售，我在 Air Products 和 [Comanta]（現在的 Reworld）的職業生涯中都經營過這兩種類型的業務。

A sale equipment business, you [gotta] sell equipment every year, and the margins aren't margins aren't as high, and the evaluation of sales equipment companies is not as high either. So ultimately my vision is we push this company towards waste destruction. Services, but we will meet the customer where they sit because there are certain customers you think about municipalities that are that are going to want to own their own asset and, in those cases, I think the play is and we want to have an O&M agreement, an operating and maintenance agreement.

銷售設備產業，你每年都必須銷售設備，但利潤率不高，銷售設備公司的估值也不高。所以，我的最終願景是推動這家公司走向廢棄物處理。我們會提供服務，但我們會根據客戶的實際情況來安排，因為有些客戶，例如市政當局，他們希望擁有自己的資產，在這種情況下，我認為最好的策略是簽訂營運和維護協議。

Operate the equipment for them, maintain the equipment for them, much like, if you remember GE's turbine business, right? You bought the turbine, but you signed up for a services agreement, and so that's my vision on if we go down the sales route, how we get more recurring revenues with customers who want to actually own the equipment versus my preferred case, which is, 374Water owns and operates, these air slow units.

為他們操作設備，為他們維護設備，就像通用電氣的渦輪機業務一樣，如果你還記得的話，對吧？您購買了渦輪機，但您簽署了一份服務協議，所以這就是我的想法：如果我們走銷售路線，如何從真正想要擁有設備的客戶那裡獲得更多經常性收入，而不是我更喜歡的情況，即 374Water 擁有並運營這些空氣減速裝置。

Okay, great, thank you. I'll turn it over.

好的，太好了，謝謝。我把它翻過來。

Thank you. I appreciate the questions.

謝謝。感謝大家的提問。

Michael Mathison, Sidoti.

麥可·馬西森，西多蒂。

Congratulations on the revenue you guys.

恭喜你們取得這樣的營收成績！

Thanks Michael appreciate that we've been working hard. We've been working hard.

謝謝邁克爾，謝謝你們一直以來的努力。我們一直在努力工作。

So, coming back to waste destruction as a service because I tend to agree with you that that's going to be a much higher source of profit, for the company going forward, can you just, give us a little bit of detail on the crystal clean deal, particularly the revenue sharing agreements, things like that.

所以，回到廢棄物處理服務這個主題，因為我比較同意你的觀點，這將會是公司未來利潤更高的來源。能否詳細介紹一下水晶般清晰的交易，特別是收益分成協議之類的細節？

So, I am reluctant to provide commercial terms in the on our new calls. I will tell you about the deal, but, I prefer not to get into details because I don't want my competitors to know what or future deals, the folks we do deals with to know what the terms and conditions are. This is my view on a waste construction services project.

因此，我不太願意在新通話中提供商業條款。我會告訴你這筆交易的情況，但是，我不想透露細節，因為我不想讓我的競爭對手知道我們未來的交易內容，也不想讓我們的交易夥伴知道具體的條款和條件。這是我對垃圾處理建築服務項目的看法。

We're going to have a host customer and in this case it's crypto claim and as the host customer they deserve some benefit and they can take it in a lease payment, they can take it in a revenue share, or they can take it in lower cost to utilize the air flow unit.

我們將有一位主機客戶，在這種情況下，它是加密貨幣索賠，作為主機客戶，他們理應獲得一些好處，他們可以選擇支付租賃費，也可以選擇獲得收入分成，或者降低使用空氣流動裝置的成本。

And I talked to another, I talked recently to another [TSDS] operator who has multiple sites, along the same lines, and so I'm indifferent in how they want to take their host fee, if you will, but that's how it'll play out. It'll be one of those three buckets. It's a bag of money and however they want to take it, is fine by us.

我最近和另一位 [TSDS] 運營商談過，他有多個站點，情況類似，所以我並不在乎他們想如何收取託管費，但事情就是這樣發展的。肯定是那三個桶子裡的一個。這是一大筆錢，他們想怎麼拿都行，我們無所謂。

Ultimately what we need is a site where we can bring in our own, [PFOs] laden material and I think mostly, the government trying to get rid of their [AFFF]. There's a large market there, and I mentioned it during my prepared remarks, whether it's in the US or. Even outside the US, there's a large market there, so the extent that we can bring [ACF] in and, process it at an air crow unit at a host site, is going to be, I think, very valuable to us.

最終我們需要的是一個可以存放我們自己含有[PFO]物質的材料的場地，而且我認為主要是政府想處理掉他們的[PFO]。[AFFF]。那裡有很大的市場，我在準備好的演講稿中也提到了這一點，無論是在美國還是其他國家。即使在美國以外，也存在著巨大的市場，因此，我們能夠引進[ACF]並在宿主場所的空中捕撈裝置中進行處理的程度，我認為對我們來說將非常有價值。

So that's how those deals are going to be structured. They're very much like the industrial gas business, and I mentioned I spent a number of years at Air Products. We call these types of deals piggyback deals, which was basically we put our site, we put our, facility on a customer site. They took some of the output from the facility, and we took some of the output from the facility. It's the same concept here and if you look at.

所以這些交易的結構就是這樣安排的。它們與工業氣體行業非常相似，我之前提到我曾在空氣產品公司工作過幾年。我們稱這類交易為搭便車交易，基本上就是把我們的網站、我們的設施放在客戶的網站上。他們拿走了工廠的部分產出，我們也拿走了工廠的部分產出。這裡的概念是一樣的，如果你仔細觀察。

Returns in those kinds of business, its stock margins are much higher than sale equipment and a company evaluation, and you can, you guys should all can run a valuation model on their products or look what it trades for on a [P/E basis]. Those types of companies are much more highly valued in the marketplace than a simple sale of equipment company.

這類業務的回報，其股票利潤率遠高於銷售設備和公司估值，你們都可以，也應該都可以對他們的產品進行估值模型分析，或者看看它在市場上的交易價格。[本益比]這類公司在市場上的價值遠高於一家簡單的設備銷售公司。

Great thank you just looking to the growth of 374Water going forward you mentioned you have about 50 employees now how many of those are salespeople? I'm sorry?

非常感謝！我只是想了解一下374Water未來的發展。您提到現在大約有50名員工，其中有多少是銷售人員？對不起？

So this is a great question because I just asked this question again. I'm new, so I asked this question the other day. 80% of our employees fall into, I'll call it market facing organizations. 80% of the employees, and this includes both number of employees and the cost of the employees, because I think there's been a view out there that we're somehow top heavy or our burn rates too high.

這是一個很好的問題，因為我剛剛也問了這個問題。我是新來的，所以前幾天問了這個問題。我們80%的員工都屬於我稱之為「面向市場的部門」的職位。這裡說的80%是指員工總數和員工成本，因為我覺得外界一直有人認為我們機構臃腫或資金消耗過高。

But 80% of the employees are focused on either operations, manufacturing, R&D, or business development. Which shows you that we are focused on delivering into the marketplace. Now right now I'd say on a business development standpoint, and I'd like to add a few people here, we probably have about seven business developers that are out there trying to sell our technology. I think we could probably use a few more to penetrate the market faster is my personal view.

但 80% 的員工都專注於營運、製造、研發或業務拓展。這說明我們專注於向市場提供產品和服務。現在，從業務拓展的角度來看，我想補充幾位，我們大概有七位業務拓展人員正在努力推銷我們的技術。我個人認為，我們或許可以再增加一些產品，以便更快打入市場。

Great, thank you, very helpful. My last question just looks to your 2026 guidance. It looks to me that in, Q3, year-to-date you've hit a break-even gross margin essentially when I did some, back of the envelope arithmetic, it looked like, the midpoint of your revenue guidance, about $7 million. That might be pretty close to hitting operating income, break even, for 2026. Does that feel feasible or would we be better to look to 2027?

太好了，謝謝，很有幫助。我的最後一個問題是關於你們2026年的指導。在我看來，截至目前，第三季你們的毛利率基本上已經達到損益兩平點。我粗略地計算了一下，你們的收入預期中位數約為 700 萬美元。這可能與 2026 年實現營業收入收支平衡的目標非常接近。這樣可行嗎？還是我們最好把目光投向2027年？

So a lot depends on the pace of the rollout of the technology in the business plan. As and I, and I've mentioned this, it's a very large amenable market, so there's a lot of possible deals, and we're gaining traction and that's why we spent a lot of time on this call already talking about the several types of business models and deals that we were able to.

因此，很大程度上取決於商業計劃中技術推廣的速度。正如我之前提到的，這是一個非常大的、有發展潛力的市場，所以有很多可能的交易機會，我們正在取得進展，這也是為什麼我們在這次電話會議上花了很多時間討論我們能夠達成的幾種商業模式和交易的原因。

To land already, the pace of these contractual arrangements and the types of deals we undertake will have a big impact on that timing you're asking about. Also, as we load up our manufacturing and operation system, and I just mentioned [80%]. Of the people work in that market facing group, so as we sell more units or we do more waste destruction services, that fixed cost there will get loaded up higher and that will all positively affect, the overall timing of when we go cash flow positive.

要實現落地，這些合約安排的速度以及我們進行的交易類型將對您詢問的時間產生重大影響。此外，正如我剛才提到的，當我們加載製造和營運系統時，也會發生這種情況。[80%]。在面向市場的團隊中工作的人越多，我們銷售的單位就越多，或者我們提供的廢物處理服務就越多，那裡的固定成本就會越高，這將對我們實現現金流為正的整體時間產生積極影響。

So, I think it's, it's tough to say right now. I think from where I sit. Today my hope would be that we become cash flow positive in the 2027 time frame, but it's a tough question to answer at this juncture, but you can see how I'm thinking about it. I [gotta] load up, we [gotta] load up our system with more and more deals, and we, and that's why I've said I'm focusing the business development team on deals that are closer in and have a higher, return on capital for our shareholders.

所以，我覺得現在很難說。我從我的角度思考。我希望我們能在 2027 年實現現金流為正，但目前這是一個很難回答的問題，不過你應該可以看出我的想法。我必須增加交易量，我們必須讓我們的系統接收越來越多的交易，這就是為什麼我說我要讓業務拓展團隊專注於那些進展更快、能為股東帶來更高資本回報率的交易。

Great, thank you that's all very helpful, so I'll just wish you good luck for next quarter thanks again.

太好了，謝謝，這些都很有幫助，祝你下個季度好運，再次感謝。

Thanks, I appreciate that.

謝謝，我很感激。

Thank you. There are no further questions on the conference call. We will now turn to the webcast questions.

謝謝。電話會議沒有其他問題了。接下來我們將回答網路直播提問。

Our first podcast question asks. Can you provide us some additional color on the third quarter performance by 374Water?

我們的第一個播客問題是：您能否為我們提供一些關於374Water第三季業績的補充資訊？

Sure, yes, so sales are accelerating very nicely. I think you picked that up in my prepared remarks. Year over year, or I should say quarter over quarter, so [quarter three, 2024 versus quarter three, 2025], revenues were up significantly, but admittedly off a low base. With that in mind, we're confident in meeting this 2025 revenue target of approximately $4 million and that's, I think that's really good performance by the team.

當然，銷售額正在穩步增長。我想你已經從我事先準備好的發言稿中聽出來了。與去年同期相比，或應該說與季度相比，即[2024 年第三季度與 2025 年第三季度相比]，收入大幅增長，但不得不承認，這是在較低的基數上實現的。考慮到這一點，我們有信心實現 2025 年約 400 萬美元的收入目標，我認為這對團隊來說是一個非常好的成績。

You saw we introduced 2026 guidance, which is funny because we had a discussion because normally I wouldn't, other times I've done this, other public companies that I've run, I wouldn't give guidance this early, but I thought being a new CEO and from what I've seen so far, it probably makes sense to give the guidance at this time of the year, so the guidance of $6 million to $8 million in revenues for 2026, that range. I think that range is very good. It's [50% to 100%] higher than our expected 2025 revenues.

您看到了，我們發布了 2026 年的業績指引，這很有趣，因為我們進行了一番討論，因為通常情況下我不會，在我以前管理的其他上市公司，我不會這麼早就給出業績指引，但我認為作為一名新任 CEO，根據我目前所看到的，在這個時候給出業績可能是有意義的，因此 2026 年的收入範圍為 800 萬美元。我認為這個範圍非常好。這比我們預期的 2025 年收入高出 50% 到 100%。

So, I think this shows investors that we be that we believe our technology is taking hold and the customer, the customers are valuing our offering. So we're getting really good traction in the marketplace. I won't go through what I did in the prepared remarks, which is the various deals. I think I was already clear that, my preference would be to have more of a service business and the sale of equipment business for obvious reasons because the returns are higher, and you'll see me pushing in that direction as we move forward.

所以，我認為這向投資者表明，我們相信我們的技術正在站穩腳跟，客戶也認可我們的產品。我們在市場上獲得了非常好的迴響。我不會贅述我在準備好的發言稿中提到的內容，也就是各項交易。我想我之前已經明確表示過，出於顯而易見的原因，我更傾向於發展服務業務和設備銷售業務，因為這些業務的回報更高，而且隨著我們未來的發展，你會看到我朝著這個方向努力。

I just, and, I just think that's a more valuable, we'll get a higher multiple in the marketplace with a service-based deal than a sale of equipment-based deal, but all very promising, I think, and very promising signs to investors that things are moving in the right direction. We also had another recent deal that we wanted.

我只是覺得，與出售設備的交易相比，以服務為基礎的交易更有價值，在市場上能獲得更高的估值倍數。我認為這都是非常有前景的信號，對投資者來說也是非常有希望的跡象，表明事情正朝著正確的方向發展。我們最近還有另一筆交易要達成。

I'm going to be a little coy like I was, last time I spoke previously to some folks about this. We're going to have a press release coming out, so I don't want to say a lot about that, but we have another deal that we, that we were awarded over the weekend, and we'll be, announcing that in the, in the near term. So again, I've been pleased with, what I've seen so far as we take what is a very large pipeline of opportunities and start to turn that into revenues and then ultimately, EBITDA.

我會像上次和一些人談到這件事時那樣，稍微含糊其辭一些。我們將發布一份新聞稿，所以我不想多說，但我們週末獲得了另一項交易，我們將在近期宣布。所以，我再次對目前為止我們所看到的感到滿意，我們正在將大量的機會轉化為收入，並最終轉化為 EBITDA。

Our second webcast question asks, you've been Interim CEO for a little over one month. Do you have any additional observations other than what you've spoken to previously or on this call?

我們的第二個網路直播問題是：您擔任臨時執行長才一個多月。除了之前或本次通話中提到的內容之外，您還有其他補充說明嗎？

Sure, I think first off we have a first class team of employees and I mentioned I think they're really dedicated in making 374Water a success. They're focused on ensuring our technology is effective in the destruction of organics like fossum. We've had amazing, extraordinary, good, extraordinarily good, destructive results so far.

當然，我認為首先我們擁有一支一流的員工團隊，正如我之前提到的，我認為他們真的非常敬業，致力於讓 374Water 取得成功。他們致力於確保我們的技術能夠有效地銷毀像負鼠這樣的有機物。到目前為止，我們已經取得了驚人的、非凡的、好的、非常好的、破壞性的結果。

Also note, because I think there's some confusion in this area, and I mentioned this a little bit already, is that we're trying to focus most of our resources on that market facing part of the organization, and I mentioned that a little bit already. We're also focused on continuous improvement.

另外要說明的是，因為我認為這方面有一些誤解，而且我之前也稍微提到過，我們正在努力將大部分資源集中到組織面向市場的部門，這一點我之前也稍微提到過。我們也注重持續改進。

I mentioned [Lean 6 Sigma]. I'm a green belt from my air products days, and that's, I think that's a good tool. To be able to drive additional throughput, through our airs flow units, and one of the things that we've been doing over the last couple of weeks, is, making some changes to our reactor reactors in order to. Drive more throughput through those reactors. So, we've made some changes to our reactor.

我提到過[精益六西格瑪]我在空氣產品公司工作時獲得了綠帶認證，我認為這是一個很好的工具。為了能夠透過我們的氣流裝置提高吞吐量，我們在過去幾週一直在做的事情之一就是對我們的反應器進行一些更改。提高這些反應爐的吞吐量。所以，我們對反應爐做了一些改變。

We've added, a heating block in one case in order to be able to increase the throughput, through those units. More throughput, as I said earlier, means more EBITDA. And so that's a key, observation I've had so far that we have to do better in that area.

我們在其中一台機器上增加了一個加熱模組，以便提高這些設備的吞吐量。正如我之前所說，更高的產量意味著更高的 EBITDA。所以，這是我目前為止觀察到的關鍵問題，那就是我們在這個領域必須做得更好。

So, I think that they're the main points that I, that I'd like to bring up. I will say that in the, in around pricing, this is a new market and so we're undertaking a pricing study now. We're just getting ready to kick that off, so that we can develop an economic model, and we've started to put the economic model. Together that allows us to toggle or alter a number of factors related to value like pricing.

所以，我認為這些都是我想提出的要點。我想說的是，在定價方面，這是一個新市場，所以我們現在正在進行定價研究。我們正準備啟動這個項目，以便建立一個經濟模型，我們已經開始著手建立這個經濟模型了。這樣一來，我們就可以切換或改變與價值相關的許多因素，例如定價。

So that we can get the highest internal rate of returns on our projects and so in short, I want to focus on those projects that are bringing the greatest value to our shareholders and at the same time as I said, focusing on continuous improvement, particularly around making sure that our units, the throughput in our units continues to increase as time, goes on.

這樣我們才能獲得項目最高的內部收益率，簡而言之，我想專注於那些能為股東帶來最大價值的項目，同時正如我所說，專注於持續改進，特別是確保我們各部門的產量隨著時間的推移不斷提高。

And our last webcast question asks, what is your view of the [PFOS] destruction market?

我們網路直播的最後一個問題是：您對 [PFOS] 銷毀市場有何看法？

Well, it's a massive market as we've talked about. The waste construction market alone is [$450 billion] and most companies, would be jealous of that kind of amenable market, and [Pfo] is part of that market. And then second, there are verticals within that market, and there's different solutions or business models for different verticals.

正如我們之前討論過的，這是一個巨大的市場。光是建築垃圾市場規模就高達 4,500 億美元，大多數公司都會羨慕這種有利的市場，而 Pfo 正是該市場的一部分。其次，該市場內部還有不同的垂直領域，針對不同的垂直領域有不同的解決方案或商業模式。

So, if you think about industrial wastewater players like. Crystal Clean or Clean Harbors or [Rioia] or ReWorld, which is my prior firm, and dozens of other players in this space, they could all be customers of 374 water. They collect liquid waste from their customers. That's what I did when I was at ReWorld, and we needed a vehicle to to destruct or destroy the organics like PA.

所以，如果你想想工業廢水處理產業的參與者，例如…Crystal Clean、Clean Harbors、[Rioia]、ReWorld（我之前的公司）以及該領域的其他數十家公司，都可能是 374 water 的客戶。他們負責收集客戶的液態廢棄物。我在 ReWorld 的時候就是這麼做的，我們需要一個工具來摧毀或消除像 PA 這樣的有機物。

So that's one vertical, and it's a big vertical. But then there's also another massive vertical, which is the municipal market. Customers we've been actively involved with already like the Orlando water reclamation folks and OCA or the new project with for wastewater, the wastewater treatment plant in Olathe, Kansas, and you can look at our recent press release around that.

所以這是一條垂直線，而且是一條很大的垂直線。但除此之外，還有另一個龐大的垂直市場，那就是市政市場。我們已經積極參與了一些客戶項目，例如奧蘭多水回收公司和 OCA，以及與堪薩斯州奧拉西市污水處理廠的新項目，您可以查看我們最近發布的相關新聞稿。

These customers have biosolids and sludges that contain POS, and they need to deal with the issue. Their previous solution was putting the stuff on the land, and there's a lot of legislation now coming out that prevents that from happening. And so we're a we have a solution for them and we're talking to many of the municipalities in that vertical. And then finally the federal, state, and local governments all have large stock stockpiles of [AFLF] and they cannot use those.

這些客戶的生物固體和污泥中含有 POS，他們需要處理這個問題。他們之前的解決方案是將這些東西放在土地上，但現在推出了許多法律法規來阻止這種情況發生。因此，我們有解決方案，我們正在與該領域的許多市政當局進行洽談。最後，聯邦、州和地方政府都有大量的[AFLF]庫存，但他們無法使用這些庫存。

Use that material anymore for firefighting and it's [going to] be destroyed and so there's a large market here and I mentioned Europe, probably also even Asia. We haven't even explored Asia yet that have similar PFOS issues that need to be addressed. And there aren't many folks out there like us that have a technology that has such effective destruction and can be used to deal with these three different verticals.

如果繼續將這種材料用於消防，它就會被銷毀，所以這裡有很大的市場，我提到了歐洲，可能還有亞洲。我們甚至還沒有考察過亞洲，那裡也有類似的PFOS問題需要解決。像我們這樣擁有如此高效破壞技術，並且能夠應對這三個不同垂直領域的公司並不多。

And so, one of the things I'm doing with our business development team, and somebody asked this question earlier is we're getting a lot more organized around those three verticals and the pricing may differ in differ in those verticals, and that's why I'm going through a pricing exercise now.

因此，我正在和我們的業務發展團隊一起做的一件事，也是之前有人問過的問題，就是我們正在圍繞這三個垂直領域進行更系統的組織，而這些垂直領域的定價可能會有所不同，這就是為什麼我現在正在進行定價工作。

To figure out what's the right pricing each in each of those verticals, and what is our competitive landscape look like and again driving so that we get the highest returns that we can on our [AirSCWO] technology so that we drive up our multiple for our customers. Excuse me multiple for our investors sorry.

為了確定每個垂直領域中每個領域的合理定價，以及我們的競爭格局如何，並再次努力使我們的 [AirSCWO] 技術獲得盡可能高的回報，從而提高我們客戶的收益倍數。抱歉，為了我們的投資者，我需要多次報告。

Thank you. At this stage there are no further questions. I would now like to turn the call over to Mr. Jones for closing remarks. Please go ahead, sir.

謝謝。目前沒有其他問題了。現在我謹將電話交給瓊斯先生，請他作總結發言。請繼續，先生。

Thank you operator. I would like to once again thank each of you for joining our conference call today. We look forward to continuing to update you on our ongoing progress and growth. If we're unable to answer any of your questions, please reach out to Jim Siccardi or our IR firm [MZ Group]. We'd be more than happy to assist. This concludes our third quarter 2025 update call. Thank you for your participation.

謝謝接線生。我再次感謝各位今天參加我們的電話會議。我們期待繼續向您報告我們的最新進展和發展。如果您的問題我們無法解答，請聯絡 Jim Siccardi 或我們的投資者關係公司。[MZ集團]我們非常樂意提供協助。本次2025年第三季更新電話會議到此結束。感謝您的參與。

(Operator Instructions)

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