Q4 2024 374Water Inc Earnings Call
Greetings and welcome to the 374Water
Fiscal Year 2024 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation.
Speaker Change: As a reminder, this conference is being recorded. At this time, I will now hand the call to Chris Tyson, Executive Vice President of the MZ Group.
Please go ahead.
Thank you, Operator.
Speaker Change: Before we begin the formal presentation, I'd like to remind everyone that statements made on the call and webcast may include predictions, estimates, or other information that might be considered forward-looking. 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.
Speaker Change: You were cautioned not to place undue reliance on these forward-looking statements which reflect our opinions only as of the date of this presentation.
Speaker Change: 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.
Speaker Change: 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, 10K, for a more complete discussion of these factors and other risk, particularly under the heading, risk factors.
Speaker Change: Your host today, President and Chief Executive Officer, Mr. Chris Gannon, and Chief Financial Officer, Mr. Russell Klein, will present results of operations for the fiscal year ended December 31, 2024.
Speaker Change: I will now turn the call over to 374WatersPresident and Chief Executive Officer Chris Gannon. Chris, the floor is yours.
Speaker Change: Thank you, Chris. Good afternoon, everyone, and thank you for joining us today. 374Water is at Global Industrial Technology and Services Company.
Speaker Change: Our goal is to provide the best in class waste obstruction solutions, which we believe can disrupt the 430 billion dollar global waste construction and waste management market participants.
Speaker Change: Participants seek alternatives to outdated conventional solutions.
Speaker Change: We believe our scalable and customizable air spoke system, which is designed to augment or replace conventional inefficient waste management approaches is an ideal solution for our target markets.
Speaker Change: In addition, we provided flexible go to market strategy offering multiple procurement options to meet specific customer needs, including capital sale lease and waste destruction service offerings.
Speaker Change: Further we have developed a robust actionable and growing backlog and pipeline of opportunities, which we are converting to revenue.
As a result, we believe.
Speaker Change: We have a viable path to generate 250 to 500 million in annual revenue.
Over the next five years or so.
Speaker Change: Before I discuss our operational highlights and business updates I would like to play a short video that introduces our air Square technology. It provides a brief overview.
Speaker Change: For those dialing into the call there will be approximately 90 seconds of silence. So please bear with us.
Speaker Change: This video is also available at the link in today's Investor presentation.
Woodbury: Woodbury onto our operational highlights and business updates for 2024.
Speaker Change: In 2025 year to date.
Speaker Change: I would like to discuss some of the many things accomplished over the past 12 months since the new team arrived.
Speaker Change: Our focus was on righting the ship.
Speaker Change: Building, a foundation for growth and placing the company on a commercial path of growth in revenues.
During 2024, we not only outlined a new strategic plan and tactical roadmap.
Speaker Change: But also committed to executing key initiatives.
Speaker Change: We delivered on these promises materially advancing our company.
Speaker Change: Throughout the year, we made material improvements to advance our technology, including Ruggedized and optimizing our <unk> system.
Speaker Change: Grading, our pre and post treatment systems and.
Speaker Change: And significantly expanding our destruction capabilities across solid and liquid waste.
Speaker Change: During this time supercritical water oxidation was also identified as an emerging P fast destruction technology by the EPA.
Speaker Change: In Q3, we relocated our <unk> and pre and post treatment systems as well as our manufacturing and engineering operations to Orlando, Florida. This important move allowed us to begin delivering on previously deferred contractual commitments to municipal fell.
Speaker Change: <unk> and industrial customers.
Speaker Change: We also posted a wide variety of municipal federal and industrial participants as well as investors to see <unk> in action.
Speaker Change: And we began manufacturing <unk> one an additional.
Speaker Change: Six systems.
Speaker Change: 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.
Speaker Change: We also announced our intent to begin offering waste destruction services in 2025.
Speaker Change: And started bidding on waste destruction opportunities.
Speaker Change: We were excited to announce yesterday, a waste destruction contract with University of North Carolina at Chapel Hill collaborative Ori to destroy a triple S firefighting foam on behalf of the state.
Speaker Change: This multi phased contract could be worth north of $5 million to our company.
Speaker Change: During Q4, we also continue to advance partner negotiations with treatment storage and disposal facility operators.
Speaker Change: To establish one or more waste destruction service operations in 2025.
Speaker Change: We finalized the expansion of our laboratory operations with our move into a new state of the art.
Speaker Change: Safety level one facility.
Lately, increasing our capabilities to service customers and we moved our production facility to a new.
Speaker Change: Location at Orlando's Iron Bridge facility.
Speaker Change: During Q1 2025, we confirmed we remain on track to mobilize our system components to Orange County, sanitation and the first half of the year.
Speaker Change: During the year. We also released numerous press releases White papers completed media interviews and third party articles were published highlighting 374 water and aerospace <unk>, including our work with the U S Navy, where we successfully destroyed elm Apple waste.
Speaker Change: Arcadis published an article regarding a triple S firefighting foam destruction, highlighting the effectiveness of $3 74 waters Aerospace technology, and we announced our participation in an upcoming department of Defense project aimed at identifying commercial scale P fast.
Speaker Change: Contaminated waste destruction solutions.
Speaker Change: No we have already successfully destroyed the waste streams identified in the department of defense announcements.
Speaker Change: Okay.
Speaker Change: We also expanded our intellectual property portfolio to ensure we have a defensible moat around our company and technology.
Speaker Change: When we filed multiple patent applications throughout the year and you can expect we will continue this practice throughout 2025 and beyond.
Speaker Change: Finally, we further enhanced our leadership team with the addition of Russell Klein as Chief Financial Officer, and Raj more coating.
Speaker Change: Our Chief Technology Officer.
In addition, we heard additional engineering manufacturing and field personnel, we believe our proprietary <unk> system, which harnesses the power of supercritical water oxidation or slow.
Speaker Change: The forefront of waste disruption and waste management innovation are slow leverages the unique properties of water and it's super critical phase, which was above 374 degrees Celsius and above a barometric pressure of 221 bar.
Speaker Change: The Super critical phase of water has unique properties, which when combined with ambient air.
Speaker Change: Rapidly oxidizes or destroyed.
Speaker Change: Organic matter, yielding safe water safe minerals safe firm gas and recoverable heat energy our continuous flow waste destruction process consists of our aerospace <unk>.
Speaker Change: Pre treatment and post treatment systems.
Speaker Change: A pretreatment systems are installed upstream of the <unk> and are designed to condition solid and liquid waste.
Speaker Change: Our improved processing.
Speaker Change: Once organic waste pretreated it is injected into our air <unk> systems proprietary.
Speaker Change: <unk> reactors were just combine with supercritical water and air.
Speaker Change: Our tubular reactor is effectively a high pressure and high temperature continuous flow chamber for pressure cooker of sorts or waste oxidation or destruction occurs within a matter of seconds. Note. This destruction process is highly tunable, allowing for specifics destruction results. According.
Speaker Change: Your waste stream and customer preferences.
Speaker Change: Once the waste that destroyed to customer specifications are post treatment process commences.
Speaker Change: Post treatment system, which are installed downstream of the <unk> system reactors are designed to valorize, meaning optimally process and enhance the fifth deepwater minerals vent gas and energy byproducts into valuable resources, thereby promoting sustainability.
Speaker Change: And reducing environmental impact.
Speaker Change: Stated simply our post processing capabilities include water purification.
Speaker Change: Vent gas utilization or sequestration.
Speaker Change: Mineral recovery and upgrades.
Speaker Change: And energy recovery and recycling are.
Speaker Change: Our <unk> system has been proven to effectively process and destroy a wide variety of organics solid and liquid waste, reaching non detect are below EPA levels of four parts per trillion.
Speaker Change: These include traditional waste such as bio solids landfill leachate industrial waste and military ways.
Speaker Change: As well as emerging contaminants like short and long chain P fast forever chemicals, which were a large classic and better chemicals known to be toxic and negatively impact human health as well as pharmaceuticals and plastics.
Speaker Change: Let's walk through a few examples.
Speaker Change: First let's start with wastewater treatment facilities in biosolids.
Speaker Change: Take the city of Orlando Iron Bridge water reclamation facility, where we have our commercial scale <unk> system installed on a typical day iron bridge processes millions of gallons of residential commercial and industrial wastewater at their facility.
Speaker Change: Following a lengthy and complex process Iron bridge the waters, the produced biosolids from less than 1%.
So around 50% solid content.
Speaker Change: Orlando then ships these bio solids long distances to those outer state landfills still are willing to accept this type of waste.
Also many municipalities ship their biosolids to be converted into fertilizer.
Speaker Change: Which is known to contain P fast and other toxic substances.
Speaker Change: Sure then land applied on agricultural and other lands.
Speaker Change: Either way these expensive.
Speaker Change: Convoluted and time consuming processes are less than optimal and.
Speaker Change: And municipalities nationwide seek alternatives for on premise waste construction solutions.
Speaker Change: And we believe we are well positioned to provide a compelling solution.
Speaker Change: Finally.
Speaker Change: We have started our 90 day extended duration demonstration with in Orlando, and we will provide updates as we progress.
Speaker Change: Turning to landfills and their leachate issues.
Speaker Change: <unk> is a liquid that forms of water percolate through waste material and our landfill taking up various dissolved and suspended solids.
Speaker Change: This contaminated with liquid as a result of rainfall serviced runoff decomposing waste can include organic chemicals.
Speaker Change: Metal.
Speaker Change: Pathogens and biosolids.
Speaker Change: And for a Leach, Inc, can and does contaminates surrounding areas, including groundwater.
Speaker Change: Can feel operators are seeking a means to destroy landfill leachate support becomes a problem.
Speaker Change: We believe our aerospace <unk> technology has the potential to be a solution here.
Speaker Change: Turning to water utilities, which are increasingly impacted by contaminants like P farce.
Speaker Change: Micro plastics and pharmaceuticals, leading to widespread adoption of treatment methods like granular activated carbon or gas.
Speaker Change: And ion exchange resin or IX.
Speaker Change: Which are used to filter the substances.
Speaker Change: As these materials become saturated with P. Faas processes like <unk> are essential for safely destroying the spent gas can I ask.
Speaker Change: Now for a more complete solution for P fast disposal.
Speaker Change: We believe we are well positioned to provide a compelling solution.
Speaker Change: There are many other examples of market opportunities, where we believe we have a viable and compelling value proposition.
Speaker Change: Which could drive demand for our aerospace solutions.
Speaker Change: We believe our ability to provide scaled waste destruction solutions is a significant differentiator across waste treatment and destruction providers.
Speaker Change: We intend to offer for commercial scale, <unk> systems, and corresponding pre and post treatment technologies to support customer needs. These.
Speaker Change: These are school models include our highly mobile are split one our S. One.
Speaker Change: Our mobile air score six or a six.
Speaker Change: Our semi permanent <unk> 34.
Speaker Change: <unk> 30, and our bespoke Air Square 100, plus.
Speaker Change: We are currently manufacturing our S. One and <unk> six units.
Speaker Change: We're also designing our S 30, and May begin building one of these units in 2025.
Speaker Change: We are currently tracking several long sales cycle opportunities for our highest capacity 100 units.
Speaker Change: Which as a reminder, we'll be designed for specific customer needs.
Speaker Change: Recently for water is an interesting growth inflection point as it relates to the rollout of our technology as we are circling multiple additional eight S capital sales as well as waste destruction service opportunities in 2025.
Speaker Change: We will naturally update you on these material events throughout the year.
Speaker Change: Here's a high level overview of our current and near term operational footprint.
Speaker Change: Right now we have facilities in Florida.
Speaker Change: In North Carolina.
Speaker Change: We encourage investors to visit our Orlando site for a facility tour.
Speaker Change: As part of your due diligence on 374 water and our aerospace systems, we find seeing the technology in action is truly believing.
Speaker Change: In the near future, we will be deploying <unk> systems to Orange County sanitation.
Speaker Change: In California clean Earth in Detroit, Michigan for our <unk> demonstrations the city of St Cloud, Minnesota.
Speaker Change: For a full scale demonstration and pietersen space for space in Colorado.
Speaker Change: Just this week, we announced a new contract by the state of North Carolina for the destruction of a triple left we are thrilled to be providing waste destruction services to the University of North Carolina at Chapel Hill collaborative.
Speaker Change: This initiative standards one of the most ambitious state led P fast disposal efforts to date.
Speaker Change: We will destroy a triple F secure by the state of North Carolina as part of their take back program as per North Carolina's responsible firefighting foam Management Act H 370 of the 2023 24 session.
Speaker Change: First phase aims to treat 1000 gallons of a triple out.
Speaker Change: With a structured expansion plan for a total of potentially 50000 gallons.
Speaker Change: This phased approach demonstrates a strong commitment to eliminating P fast contamination at scale, while setting a precedent for future large scale environmental remediation projects.
Speaker Change: In addition, we are negotiating the capital sale of <unk>, six and <unk> 30 units targeting close in 2025 and actively working on multiple other waste destruction contracts and wages disruption services partnerships.
Speaker Change: Looking at <unk>.
Speaker Change: Our goal is to establish multiple regional waste destruction facilities in partnership with TST apps.
Speaker Change: Which would cover the continental U S, Alaska, Hawaii and beyond.
Speaker Change: We also aim to develop a mobile fleet for onsite waste destruction services, especially for military applications.
Speaker Change: Additionally, we plan to scale production of the <unk> one <unk>.
Speaker Change: Six and <unk> 30 units, while laying the groundwork for F 100, plus plans.
Speaker Change: Which will require an expansion of our manufacturing capabilities in the future.
Speaker Change: These are exciting times and we look forward to keeping you updated now.
Speaker Change: Now turning to the approximately $450 billion global waste treatment addressable market opportunity within the municipal federal and industrial markets.
Speaker Change: Let's discuss each market segment briefly and why we are excited here.
Speaker Change: First the municipal water and wastewater treatment market is estimated to be worth more than $347 billion annually.
Speaker Change: Growing at approximately seven 5% annually.
Speaker Change: This market includes approximately 152000 water utilities.
Speaker Change: 16000 wastewater treatment facilities.
Speaker Change: 3000, capped and uncapped landfills and more than 52000 state and local firefighting units.
Speaker Change: All of these facilities have waste streams, which must be managed.
Speaker Change: Disposed of <unk> destroyed.
Speaker Change: We believe our air square technology is well positioned to provide a compelling ways destruction solutions to these markets.
Speaker Change: Second the U S federal waste management market.
Speaker Change: Is estimated at approximately $15 billion.
The Federal Circuit includes 722, Dod sites 53 sites and 150 airports under the oversight of the FAA.
Speaker Change: Federal agencies have stockpiles of contaminated waste streams, such as a triple S firefighting foam.
Speaker Change: Chemicals are.
Speaker Change: <unk>.
Speaker Change: Bio solids filtration media.
Speaker Change: Hydrocarbons in other ways, which must be stored treated destroyed and disposed.
Speaker Change: Federal agencies are actively seeking solutions to eliminate these contaminated waste streams.
Speaker Change: Again, we believe our aerospace system is well positioned to provide a compelling waste destruction solution to these markets.
Speaker Change: Third the industrial waste management market is estimated at 128 billion.
Speaker Change: This market is driven by key sectors, such as battery recycling pharmaceuticals, and oil and gas all of which generate significant organic waste.
Speaker Change: The rapid growth in battery recycling is largely fueled by the rise in electrical vehicle demand.
Speaker Change: While the oil and gas and pharmaceutical industries continue to contribute substantial amounts of organic waste.
Speaker Change: Additionally, numerous lawsuits and stringent regulations related to P. Fast contamination, along with ongoing cleanup efforts further drive the need for innovative waste destruction solutions, creating yet another compelling opportunity for <unk>.
Speaker Change: While it is early days for us in unlocking these market verticals, we feel confident there are substantial opportunities for us.
Speaker Change: Finally, the resource Conservation recovery Act or.
Speaker Change: Rick Ro part be permitted treatment storage and disposal facilities market.
Speaker Change: Includes more than 860 sites in the U S.
Speaker Change: As part of our growth strategy, we are engaging with TSB off market participants to establish a national partnership network of waste destruction sites to service customers within our three core markets.
Municipal federal and industrial.
Speaker Change: Divide wastes destruction services, which we believe will enable us to generate substantial recurring services revenue.
Speaker Change: We seek to partner with <unk>, who are known to our customers have experienced in non hazardous and hazardous waste treatment and have appropriate local.
Speaker Change: State and federal operating permits.
Speaker Change: We believe our <unk> technology is well positioned to provide a compelling ways destruction solution.
Speaker Change: These market participants or.
Speaker Change: Our go to market strategy diversified and focused on established end markets designer wastes destruction technology like our aerospace system.
Speaker Change: <unk> offers customers several procurement options, including capital purchases leases and waste destruction services.
Speaker Change: Municipal officials remain eager to begin waste destruction operations and have expressed interest in capital purchase.
Speaker Change: And W. D S models.
Speaker Change: Federal government officials have plans to remove and destroyed T force and other ways for numerous military and civilian facilities and have appropriate of hundreds of millions of dollars to perform.
Speaker Change: Waste destruction of work.
Speaker Change: We believe we are well positioned to secure federal and state government contracts.
Speaker Change: 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.
Speaker Change: Yeah.
Speaker Change: Finally, we are actively pursuing strategic partnerships with <unk> to establish waste construction service operations.
Speaker Change: We expect to finalize one or more of these <unk> agreements.
Speaker Change: To begin operations in 2025.
Speaker Change: Our team is actively pursuing these market opportunities to add to our growing pipeline and we'll provide further updates throughout the year.
Speaker Change: We have discussed at length, the market need for our air square waste disruption technology.
Speaker Change: We look forward and we continue to expand our business development efforts further scale, our technology and expand our team.
Speaker Change: We see a very real opportunity to scale the business.
Speaker Change: Our growth outlook involves a combination of capital sales leases and waste destruction services.
Speaker Change: This growth will be achieved through a combination of strategic partnerships.
Speaker Change: Market development and geographic expansion across our municipal federal and industrial markets.
Speaker Change: Our initial focus remains the U S market.
Speaker Change: For 2025, we have line of sight for $4 million to $6 million in revenue.
Speaker Change: Based on current.
Speaker Change: And anticipated future demand, we believe we have a path to $250 to $500 million in revenue.
Speaker Change: And five years.
Russell Klein: I would now like to turn the call over to Russell <unk>.
Russell Klein: Our Chief Financial Officer.
Russell Klein: To discuss financial results for the fiscal year 2024.
Russell Klein: 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 in net proceeds of $11 3 million. That's funding has been.
Russell Klein: [laughter] utilized to continue the ruggedized and improve our asset technology deliver in process systems prepare to launch our E S waste destruction services offering.
Russell Klein: Further expand our team, including engineering operations and manufacturing.
Russell Klein: And expand our manufacturing and engineering facilities.
Russell Klein: Importantly, this financing helped to replenish our cash reserves with cash and cash equivalents as of December 31, 2024 of $10 7 million as compared to $10 4 million as of December 31, 2023.
Russell Klein: And our working capital, which was $11 5 million as of December 31, 2024, compared to $13 5 million as of December 31, 2023.
Russell Klein: Now turning to our financial results for the 12 months ended December 31, 2024, the company generated revenue of 445000 compared to 743000 in the prior year.
Russell Klein: The company's business in 2024 had been focused on the development and commercialization of its air School system.
Russell Klein: <unk> generated was primarily attributable to manufacturing Assembly services and can treat ability study services Gary.
Russell Klein: During 2024, we reached fewer milestones and less incurred less direct contract costs.
Russell Klein: It's associated with our sold unit has started to decline as we reached the end of our fabrication and testing, which had a direct correlation to the reduced revenue recognize this year.
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 <unk> six and <unk> 30 capital sales. We are also launching our waste destruction services.
Russell Klein: Business and recently received an award for a Triple F destruction within North Carolina, We believe 2025 will be our best year for revenue.
Russell Klein: 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 one point.
Russell Klein: $2 million in general and administrative expenses, an increase in compensation and related expenses of <unk> 8 million and an increase in research and development expenses of zero point $6 million.
Russell Klein: 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 further we incurred additional professional fees for executive search services related to the finding and hiring of certain executives we hired in 2000.
Russell Klein: 24.
Russell Klein: 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.
Russell Klein: The increase in our research and development expenses is primarily due to an increasing engineering costs and expenses stemming from continued efforts to commercialize our systems.
Russell Klein: Net loss for the year ended December 31, 2024 was $12 4 million as compared with $8 1 million in the prior year.
Russell Klein: 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.
Russell Klein: I will now hand, the call back to Chris for his closing comments.
Chris: Thank you Russell in closing during 2024, we've built a strong foundation to grow our business and now in 2025, we are focused on becoming a growth company.
Russell Klein: So delivering material revenue.
Russell Klein: 374, water and air Squoze seeks to address the waste destruction problem domestically and internationally.
Russell Klein: We are focused on serving large markets.
Russell Klein: Desperately need waste destruction solutions at commercial scale.
Russell Klein: In addition, the regulatory environment supports demand.
Russell Klein: Our <unk> system is scalable and customizable, allowing us to address large and small customer needs.
Russell Klein: We have a flexible go to market strategy, which includes capital sales leases.
Russell Klein: And waste construction services, and we have an actionable and growing opportunity set.
Russell Klein: Provides us a path to substantial revenue.
Russell Klein: Over the coming years.
Russell Klein: 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 a triple up waste destruction services contract with North Carolina.
Russell Klein: Throughout 2024, we executed our plan reaching critical milestones.
Russell Klein: Including an industrialized and optimized our system.
Russell Klein: 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.
Russell Klein: It will enable material growth in 2025.
Russell Klein: We are confident in our 2025 rollout and the potential for double digit revenue growth in the future.
Speaker Change: Russell and I as well as the rest of the leadership team joined this company because of the immense potential to disrupt industries.
Speaker Change: We believe we are on the right track and I appreciate your being shareholders.
Speaker Change: 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.
Speaker Change: I would like to thank all of you for attending and we will now hand, the call over to the operator to begin our question and answer session.
Speaker Change: Operator, Please go ahead.
Speaker Change: Thank you we will now be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad.
Speaker Change: A confirmation tone will indicate your line is in the question queue. You May press star two if you'd like to remove your question from the queue for participants using speaker equipment. It may be necessary to pick up your handset before pressing the star keys.
Speaker Change: One moment, please when we poll for questions.
Speaker Change: [laughter].
Jeff Gramm: Our first question is from Jeff Gramm with Alliance Global partners.
Speaker Change: Oh.
Speaker Change: Afternoon appreciate the time.
Speaker Change: I'm curious to expand a bit on the North Carolina opportunity.
Speaker Change: And I guess, maybe in the context of things you guys are working on in the pipeline.
Speaker Change: What is the timeline to evaluate I think it's a thousand gallons was kind of the initial up to 28000 gallons, what kind of determines where it falls on that spectrum.
Speaker Change: And what's the general timeline for when you could I guess communicate to the market as far as that opportunity progressing. Thanks.
Speaker Change: Hey, Jeff. Thanks, so much for joining my question, so as regarding North Carolina, but they're a very forward looking state and so I think theyre going to be the model really going forward on large scale.
Speaker Change: The destruction of a triple laugh, but specifically to answer your question.
Speaker Change: That's first.
Speaker Change: Gallons.
Speaker Change: Literally have.
Speaker Change: Six months to complete that waste destruction. Once we receive it 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 a triple laugh.
Speaker Change: And so that's going to be the measure that theyre looking for is that it's completely destroyed it's been destroyed effectively and that's been destroyed quickly.
Speaker Change: Perfect that's super helpful.
Speaker Change: And for my follow up I'm curious and it sounds like Theres a lot of different.
Speaker Change: Opportunity here to deploy the S systems 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.
Speaker Change: Going forward at least in the near term.
Speaker Change: Yes, thanks for that question as well so in terms of our capacity right now for manufacturing.
Speaker Change: We can manufacture roughly two to four.
Speaker Change: Systems at a time. So eventually we will have to expand our facilities, but right now we're in a good position.
Speaker Change: And the two to four range Chris.
Speaker Change: I guess irrespective of the size of a given system.
Speaker Change: Oh, Yeah, that's correct I mean, the when we when we just think about our air square one I'm not sure.
Speaker Change: Certainly a small system. We are currently manufacturing that and that will get deployed very very shortly.
Speaker Change: And then when you think about the S. Six four the 30 to 30 is actually not that much larger kind of from a square feet perspective, or six so yes, we're comfortable in that range, but eventually yes, we will have to move on to a larger facility.
Speaker Change: But right now we're actually manufacturing at the city of Orlando water reclamation facilities. So those of you who've actually visited that facility and seen our air square 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.
Speaker Change: We have a neighboring facility, which as you know are.
Speaker Change: Pitching wedge away from there.
Speaker Change: That we are doing our manufacturing and currently.
Speaker Change: Got it okay. That's really helpful detail, so I'll turn it back thank you.
Speaker Change: Thank you.
Speaker Change: As a reminder, if you'd like to ask a question. Please press star one on your telephone keypad.
Speaker Change: Okay.
Speaker Change: Thank you I would now like to turn the call back over to Mr. Gannon for his closing remarks.
Speaker Change: Thank you operator, I would like to once again, thank everyone for joining our conference call today.
Speaker Change: And we look forward to continuing to update you on our progress going forward.
Speaker Change: If you were unable to Oh, we didn't answer all of your questions and you have ones that come up please reach out to our IR firm MZ group.
Speaker Change: Who will be able to assist you and get you to the right people also as a another offer for those of you that find yourself in the Orlando area, We would love to schedule a time to have you come down and see our technology and operation and as I mentioned earlier.
Speaker Change: <unk> is truly believe inherent well that concludes our fiscal year 2025 update call and I. Thank you everybody.
Speaker Change: This concludes today's conference you may disconnect your lines at this time. Thank you for your participation.