Greetings and welcome to the 374Water First Quarter 2024 Earnings Call. At this time, all participants are in a listen-only mode. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Heather Crowell, Investor Relations. Thank you. Ms. Crowell, you may begin.

Hello, everyone, and welcome to 374Water's first quarter 2024 earnings conference call. My name is Heather Crowell, and I'm here today with our President and Chief Executive Officer, Chris Gannon, and our Chief Financial Officer, Adrienne Anderson. During today's call, we may make projections and other forward-looking statements under the Safe Harbor provisions contained in the Private Securities Litigation Reform Act of 1995 regarding future events, or the future financial performance of the company. These statements may discuss our business, economic, and market outlook, growth expectations, new products and their performance, cost structure, and business strategy. Forward-looking statements are based on information currently available to us and on management's beliefs, assumptions, estimates, and/or projections. Forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors. We refer you to documents the company files from time-to-time with the SEC, specifically the company's Form 10-K and Form 10-Q. These documents identify important factors that could cause actual results to differ materially, from those contained in our projections or forward-looking statements. All statements made during today's call are made only as of today, May 17, 2024, and the company expressly disclaims any intent, or obligation to update any forward-looking statements made during this call to reflect subsequent events or circumstances, unless otherwise required by law. Our earnings release and transcript will be available on the Investor Relations page of our website. Now I will turn the call over to President and Chief Executive Officer, Chris Gannon. Chris?

Thank you, Heather. Good morning, everyone, and thank you for joining us today. Before we begin with our strategic, commercial, and financial update, I would like to thank the Board for appointing me as CEO. I look forward to working with all our stakeholders, including customers, demonstration and test partners, shareholders, the Board, my leadership team, and our talented employees as we enter the next phase of 374Water's growth. I am excited to take the helm at such a pivotal time for the company, and I look forward to our future. During my first month here, I have immersed myself in the company and gained a good understanding of our markets and customers, our technology, our historical product development and commercialization and go-to-market strategy, as well as the opportunities and challenges that lie ahead. I would like to start, by outlining how I will approach my role at 374Water. In short, my focus is to build shareholder value, over the near and long-term. To do this, I will create stability, engage with market participants, build shareholder trust, and ensure that we have the resources available to meet our objectives. We have begun a strategic planning process and have enlisted the assistance of industry experts, to provide additional guidance as it relates to the municipal, federal, military, and industrial verticals. This strategic planning process is a crucial foundational step for our company, as it will inform our go-forward approach to our products, to our markets, and to our operations. We will utilize the strategic plan or playbook, to communicate with all key constituents going forward. You can expect me to lay out this overarching strategy during our future calls together. I will now turn to a brief discussion of our technology, and the market opportunities we see available to us. And…

Thanks, Chris. Today I'll discuss our financial results, which reflect the current stage of our business evolution, as we begin scaling our business and enhancing our cash position, to support sustained growth. Q1, 2024, results are indicative of a period where strategic investments take precedence, as we are taking the necessary steps to lay down a robust foundation, as we chart our path to profitable growth. With that, I will touch on a few key metrics. During the quarter, the company generated revenue of approximately $315,000, which compares to $801,000 for the three months ending March 31, 2023. As we start to reach the end of the assembly and fabrication work on our sold unit, our direct costs decline, which has a direct correlation to our decline in revenue of $468,000 this period, under our percentage of completion revenue recognition method. Total OpEx increased marginally from $1.8 million in the first quarter of 2023, to $1.9 million in this period's quarter, driven primarily by an increase in research and development expenses. As of March 31, 2024, we have working capital of $11.7 million, consisting of $13.3 million of current assets comprised primarily of cash, receivables, and inventory, offset by $1.6 million of current liabilities comprised of accounts payable, and accrued expenses arising from the normal course of business. We currently have no outstanding debt obligations. We are actively working on optimizing our operational efficiencies and exploring new market opportunities, all aimed at long-term value creation while remaining steadfast in our commitment to innovation and excellence. A primary financial goal for the company, is to extend its runway while scaling the business, and we are pleased to have Chris at the helm, to achieve these objectives.

Thank you, Adrienne, and thank you, everyone, for joining our call today. We look forward to providing updates, during future earnings calls. In addition, I hope to share time with everyone, at our Annual Shareholder Meeting in June. Bye for now.

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