# EDGAR Filing Document

**Accession Number:** 0000933972
**File Stem:** 0001654954-23-003101
**Filing Date:** 2023-3
**Character Count:** 17818
**Document Hash:** 4285e8338ad2601bff80ba2ff6b80709
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001654954-23-003101.hdr.sgml**: 20230317

**ACCESSION NUMBER**: 0001654954-23-003101

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 15

**CONFORMED PERIOD OF REPORT**: 20230317

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230317

**DATE AS OF CHANGE**: 20230317

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** 374Water Inc.
- **CENTRAL INDEX KEY:** 0000933972
- **STANDARD INDUSTRIAL CLASSIFICATION:** MOTORS & GENERATORS [3621]
- **IRS NUMBER:** 880271109
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-41420
- **FILM NUMBER:** 23740845

**BUSINESS ADDRESS:**
- **STREET 1:** 701 W. MAIN STREET
- **STREET 2:** SUITE 410
- **CITY:** DURHAM
- **STATE:** NC
- **ZIP:** 27701
- **BUSINESS PHONE:** 919-888-8194

**MAIL ADDRESS:**
- **STREET 1:** 3710 SHANNON RD #51877
- **STREET 2:** SUITE 410
- **CITY:** DURHAM
- **STATE:** NC
- **ZIP:** 27717

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** POWERVERDE, INC.
- **DATE OF NAME CHANGE:** 20080820

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** VYREX CORP
- **DATE OF NAME CHANGE:** 19951206

?xml version="1.0" encoding="utf-8"?scwo_8k.htm

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION** 

**WASHINGTON, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT PURSUANT** 

**TO SECTION 13 OR 15(d) OF**

**THE SECURITIES EXCHANGE ACT OF 1934**

Date of Report (date of earliest event reported): March 17, 2023

---

| |
|:---|
| **374WATER INC.** |
| (Exact Name of Registrant as Specified in Charter) |

---

---

| | | |
|:---|:---|:---|
| **Delaware** | **000-27866** | **88-0271109** |
| (State of Incorporation) | (Commission File No.) | (I.R.S. Employer Identification No.) |

---

**701 W Main Street, Suite 410** 

<u>**Durham, NC 27701**</u> 

(Address of Principal Executive Offices)(Zip Code)

**<u>(919) 888-8194</u>**

(Registrant's Telephone Number, Including Area Code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐&nbsp;&nbsp;&nbsp;&nbsp; Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐&nbsp;&nbsp;&nbsp;&nbsp; Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐&nbsp;&nbsp;&nbsp;&nbsp; Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐&nbsp;&nbsp;&nbsp;&nbsp; Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | Trading Symbol(s) | Name of each exchange on which registered |
| Common Stock, par value $0.001 | SCWO | The Nasdaq Capital Market LLC |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ⌧

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

**Item 2.02 Results of Operations and Financial Condition**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On March 17, 2023, 374Water Inc. (the "***Company***") issued a press release reporting the Company's results for the year ended December 31, 2022. The press release is attached as Exhibit 99.1 hereto and is incorporated herein by reference.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The information in Item 2.02 of this Current Report on Form 8-K, including the press release attached as Exhibit 99.1, is furnished and shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. Furthermore, such information shall not be deemed to be incorporated by reference into the filings of the registrant under the Securities Act of 1933, as amended.

**Item 9.01 Financial Statements and Exhibits.** 

**(d) Exhibits**

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| [99.1](scwo_ex991.htm) | [Press release issued March 17, 2023.](scwo_ex991.htm) |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL)  |

---

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **374WATER INC.** | **374WATER INC.** |
| Dated: March 17, 2023 | By: | */s/ Yaacov Nagar* |
|  | Name:  | Yaacov Nagar |
|  | Title: | Chief Executive Officer |

---

## Exhibit 99.1

**EXHIBIT 99.1**

**374Water Drives 2022 Revenue Increase Over 6,000% while Charting Progress Toward a World Without Waste**

**DURHAM, NC / ACCESSWIRE / March 17, 2023 / 374Water Inc**. **(NASDAQ:SCWO)**, a global cleantech and social impact company, today provides a business update and reports its financial results for the year ended December 31, 2022.

The year was marked by meaningful progress in the Company's endeavor to commercialize its pioneering technology. Highlights from the year include:

· Revenue for 2022 was $3.02 million compared to $48,100 in 2021, an increase of 6,169%.

· In accordance with its plan, substantially completed development of the first municipal-scale AirSCWO<sup>TM</sup> system set to be installed by the Orange County Sanitation District in summer 2023, representing the municipal opportunities for the Company as new regulations emerge.

· The Company was selected by the US Navy for Joint NDCEE Project, part of a broader initiative by the DoD to identify viable PFAS destruction solutions for deployment on military bases and by the Air Force Civil Engineer Center's (AFCEC) Environmental Directorate for the first field-scale case study to use SCWO technology to destroy the PFAS-laden spent media generated from the groundwater pump and treat remediation systems.

· Plans to demonstrate its technology at its manufacturing facility in Kokomo, IN from March 27-29, 2023

· Expanded international recognition by entering into a Memorandum of Understanding (MOU) with Forever Water Ecuador and a Strategic Partnership Agreement with The Environmental Group of Australia to highlight and promote 374Water's innovative and sustainable AirSCWO™ wastewater and waste management technology.

· Broadened Company leadership with the addition of Lisa Neuberger Fernandez as Global Head of Sustainability & Ecosystems and Doron Gez as Senior Vice President, Marketing.

"2022 was a great year in which the team delivered substantial revenue growth by executing contracts for our technology including progress on our OC Sanitation project and new projects with The Air Force and Navy while managing costs, proving the scalability of our technology," said Israel Abitbol, Chief Financial Officer of 374Water.

"This year marked meaningful milestones, including substantially completing the development of The AirSCWO™ 6 system for our municipal installation during summer 2023. As we look ahead, recent EPA guidelines provide regulatory tailwinds and pave the way toward realizing our vision of a circular economy wherein our revolutionary technology transforms hard to treat waste like PFAS into clean water, energy and minerals," said Kobe Nagar, 374Water Chairman and CEO. "The addressable market for our technology continues to grow and during 2022, we demonstrated the versatility of our platform, providing a unique value proposition to attract customers across multiple industries and market verticals over the long term."

**2022 Financial Results**

Revenue for the year was $3.02 million compared to $48,100 in 2021, an increase of 6,169%. The increase in revenue during 2022 was primarily a result of recognizing a portion of the revenue associated with the sale of our first AirSCWO™ system.

General and administrative expenses were $1.6 million in 2022, compared to $1.1 in 2021. The change is primarily associated with our status as a Nasdaq-traded public company.

Research and development expenses were $1.1 million during the year, compared to $375,032 in 2021, primarily a result of the increase in engineering costs related to commercializing our system.

Net loss was $4.7 million, or $(0.04) per basic and diluted share, compared to a net loss of $3.2 million, or $(0.03) per basic diluted share, in 2021.

Total cash and investments were $6 million as of December 31, 2022, compared to $11.1 million as of December 31, 2021. Total current assets were $8.7 million and current liabilities were $1.6 million as of the same date, compared to $11.3 million and $86,371 respectively, in the year-ended reporting period.

For more on AirSCWO™ or about our team, visit **374Water.com** or follow us on **LinkedIn** and **Twitter**.

**Cautionary Language**

This press release contains "forward-looking statements," as that term is defined under the Private Securities Litigation Reform Act of 1995 (PSLRA), which statements may be identified by words such as "expects," "plans," "projects," "will," "may," "anticipates," "believes," "should," "intends," "estimates," and other words of similar meaning.

**About 374Water**

**374Water Inc**. (**Nasdaq:SCWO**), is a global cleantech, social impact company whose mission is to preserve a clean and healthy environment that sustains life. We are pioneering a new era of sustainable waste management that supports a circular economy and enables organizations to achieve their environmental, social, and governance (ESG) and sustainability goals. Follow us on **LinkedIn** and **Twitter**.

**Investor Contact:**

Heather Crowell

**ir@374water.com**

**Media Contact:**

Christian Rizzo

**media@374water.com**

**374 Water Inc. and Subsidiaries**

**Consolidated Balance Sheet**

**As of December 31, 2022 and December 31, 2021**

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
| **Assets** |  |  |
| Current Assets: |  |  |
| Cash | $4046937 | $11131175 |
| Unbilled accounts receivable | 918164 |  |
| Inventory | 1660710 |  |
| Investments | 1944464 |  |
| Prepaid expenses | 153455 | 218466 |
| Total Current Assets | 8723730 | 11349641 |
| Long-Term Assets: |  |  |
| Property and equipment, net | 143079 | 959 |
| Intangible asset, net | 1050022 | 1062856 |
| Total Long-Term Assets | 1193101 | 1063815 |
| **Total Assets** | $**9916831** | $**12413456** |
| **Liabilities and Stockholders' Equity** |  |  |
| Current Liabilities: |  |  |
| Accounts payable and accrued expenses | $1449582 | $62981 |
| Unearned revenue | 200109 |  |
| Other liabilities | 13528 | 23390 |
| Total Current Liabilities | 1663219 | 86371 |
| **Total Liabilities** | **1663219** | **86371** |
| Commitments and contingencies (Note 8) |  |  |
| **Stockholders' Equity** |  |  |
| Preferred stock: 50,000,000 Convertible Series D preferred shares authorized; par value $0.0001 per share, nil issued and outstanding at December 31, 2022, and 27,272 issued and outstanding at December 31, 2021. |  | 3 |
| Common stock: 200,000,000 common shares authorized, par value $0.0001 per share, 126,702,545 and 125,317,746 shares outstanding at December 31, 2022 and December 31, 2021, respectively | 12669 | 12531 |
| Additional paid-in capital | 16110221 | 15474566 |
| Accumulated (deficit) earnings | (7849982) | (3160015) |
| Accumulated other comprehensive income (loss) | (19296) | - |
| **Total Stockholders' Equity** | **8253612** | **12327085** |
| **Total Liabilities and Stockholders' Equity** | $**9916831** | $**12413456** |

---

**374 Water Inc. and Subsidiaries**

**Consolidated Statement of Operations**

**For the years ended December 31, 2022 and December 31, 2021**

---

| | | |
|:---|:---|:---|
|  | **For the year ended**<br> **December 31,** | **For the year ended**<br> **December 31,** |
|  | **2022** | **2021** |
| Revenue | $3015521 | $48100 |
| Cost of revenues | (2679020) | - |
| Net Revenue | 336501 | 48100 |
| **Operating Expenses** |  |  |
| Research and development | 1113500 | 375032 |
| Compensation and related expenses | 1644861 |  |
| Product development |  | 1399833 |
| Professional fees | 768548 | 343862 |
| General and administrative | 1565723 | 1095381 |
| Total Operating Expenses | 5092632 | 3214108 |
| **Loss from Operations** | **(4756131)** | **(3166008)** |
| **Other Income** |  |  |
| Interest income | 67067 | 1066 |
| Other income (expense) | (903) | 334 |
| Total Other Income | 66164 | 1400 |
| **Net Income (Loss) before Income Taxes** | **(4689967)** | **(3164608)** |
| **Provision for Income Taxes** | - | - |
| **Net Income (Loss)** | $**(4689967)** | $**(3164608)** |
| Other comprehensive loss |  |  |
| Unrealized gain(loss) on marketable securities | (18968) |  |
| Foreign currency translation | (328) | - |
| **Total other comprehensive income (loss)** | (19296) | - |
| **Total comprehensive income (loss)** | (4709263) | (3164608) |
| **Net Income (Loss) per Share - Basic and Diluted** | $**(0.04)** | $**(0.03)** |
| **Weighted Average Common Shares Outstanding - Basic and Diluted** | **126641536** | **94002888** |

---

**374 Water Inc. and Subsidiaries**

**Consolidated Statements of Cash Flows**

**For the years ended December 31, 2022 and 2021**

---

| | | |
|:---|:---|:---|
|  | **For the years ended** | **For the years ended** |
|  | **2022** | **2021** |
| **CASH FLOWS FROM OPERATING ACTIVITIES** |  |  |
| Net Loss | $(4689967) | $(3164608) |
| Adjustments to reconcile net loss to net cash provided by operations: |  |  |
| Depreciation and amortization expense | 67573 | 46050 |
| Stock-based compensation | 610741 | 204217 |
| Change in foreign currency translation | (328) |  |
| Warrant issued for product development agreement |  | 1399833 |
| Changes in operating assets and liabilities |  |  |
| Unbilled accounts receivable | (918164) | 32330 |
| Inventory | (1660710) |  |
| Prepaid expense and other assets | 65011 | (238450) |
| Accounts payable and accrued expenses | 1386601 | (142512) |
| Unearned revenue | 200109 |  |
| Other liabilities | (9862) | 22190 |
| Net cash (used in) provided by operating activities | (4948996) | (1840950) |
| **CASH FLOWS FROM INVESTING ACTIVITIES** |  |  |
| Purchase of property, plant, and equipment | (144567) | (1190) |
| Purchases of marketable securities | (1963432) |  |
| Proceeds from reverse acquisition |  | 113760 |
| Increase in intangible assets | (52292) |  |
| Recapitalization of the Company | - | (84225) |
| Net cash used in investing activities | (2160291) | 28345 |
| **CASH FLOWS FROM FINANCING ACTIVITIES** |  |  |
| Advances from Stockholders |  | (15108) |
| Proceeds from Series D Preferred Shares |  | 6601745 |
| Proceeds from Common Stock Offering |  | 5000000 |
| Proceeds from exercise of Options | 25049 | 42845 |
| Proceeds from exercise of Warrants | - | 1242499 |
| Net cash provided by financing activities | 25049 | 12871981 |
| NET (DECREASE) INCREASE IN CASH | (7084238) | 11059376 |
| CASH - Beginning of year | 11131175 | 71799 |
| CASH - End of year | $4046937 | $11131175 |
| **SUPPLEMENTAL CASH FLOW DISCLOSURES:** |  |  |
| Cash paid for interest |  |  |
| Cash paid for taxes |  |  |
| **NON-CASH INVESTING AND FINANCING ACTIVITIES:** |  |  |
| Change in unrealized loss on marketable securities | 18968 |  |
| Issuance of common stock for license rights |  | 1073529 |
| Accounts payable settled with Series D Preferred Stock |  | 50000 |
| Net Liabilities Assumed in Reverse Acquisition: |  |  |
| Cash |  | 29536 |
| Prepaid expense |  | 14483 |
| Accounts receivable |  | 1000 |
| Accounts payable |  | (46150) |
| Accrued expenses |  | (83094) |
| Net liability assumed |  | (84225) |

---

**FORWARD-LOOKING STATEMENTS**

Prospective investors are cautioned that the statements in this Report that are not descriptions of historical facts may be forward-looking statements that are subject to risks and uncertainties. This Report contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements are based on the beliefs of our management as well as on assumptions made by and information currently available to us as of the date of this Report. When used in this Report, the words "plan," "will," "may," "anticipate," "believe," "estimate," "expect," "intend," "project" and similar expressions, as they relate to 374Water, are intended to identify such forward-looking statements. Although 374Water believes these statements are reasonable, actual actions, operations and results could differ materially from those indicated by such forward-looking statements as a result of the risk factors included in this Report or other factors. We must caution, however, that this list of factors may not be exhaustive and that these or other factors, many of which are outside of our control, could have a material adverse effect on 374Water and our ability to achieve our objectives. All forward-looking statements attributable to 374Water or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements set forth above.

**SOURCE:** 374Water Inc.