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In a recent regulatory development, 374Water Inc., a small-cap company ($52.22M market capitalization) specializing in motors and generators, has notified Nasdaq of its non-compliance with the exchange’s independent director requirement, according to an 8-K filing with the Securities and Exchange Commission. According to InvestingPro analysis, the company maintains a strong liquidity position with a current ratio of 3.81 and holds more cash than debt on its balance sheet, though current Fair Value calculations suggest the stock is trading below its intrinsic value. The Durham, North Carolina-based company, which trades under the ticker (NASDAQ:SCWO), disclosed that it currently lacks a majority of independent directors on its board, a violation of Nasdaq Listing Rule 5605(b)(1).
The issue came to light on Monday when 374Water Inc. informed Nasdaq of its non-compliance. Nasdaq subsequently confirmed the deficiency and outlined a cure period for the company to rectify the situation. The company now has until its next annual meeting or March 9, 2026, to regain compliance, with a deadline of September 8, 2025, if the annual meeting occurs before September 8 of this year. This governance challenge comes amid significant market pressure, with InvestingPro data showing the stock has declined 71.9% over the past year, though it tends to move independently from broader market trends with a beta of -0.34.
The company has expressed its intention to appoint an additional independent director to its board promptly, aiming to achieve compliance before the cure period expires. However, the company has cautioned that there is no certainty in regaining compliance within the given timeframe. Despite the delisting notice, 374Water Inc.’s common stock continues to be listed and traded on The Nasdaq Capital Market.
Additionally, the company announced the expected date for its 2025 Annual Meeting of Stockholders, which is slated for June 11, 2025. The specifics regarding the record date, time, and location of the meeting will be provided in a proxy statement to be filed with the SEC before the meeting. Stockholders interested in submitting proposals for the 2025 Annual Meeting must provide notice to the company’s secretary by April 12, 2025.
This news is based on a press release statement and reflects the latest information provided by 374Water Inc. in their SEC filing. The company’s adherence to Nasdaq’s governance rules remains an important aspect for its continued listing, and the market will be watching closely how 374Water Inc. addresses this compliance challenge. InvestingPro subscribers have access to 14 additional key insights about 374Water’s financial health, including detailed analysis of its cash burn rate and profitability metrics, which could be crucial for investors monitoring this situation.
In other recent news, 374Water Inc. has released a white paper highlighting the effectiveness of its AirSCWO system in destroying per- and polyfluoroalkyl substances (PFAS) from spent anion exchange resins, achieving over 99.9% destruction in trials. This technology offers a significant improvement over traditional disposal methods and aligns with new Environmental Protection Agency regulations. Additionally, 374Water announced a timeline for deploying its AirSCWO 6 system at the Orange County Sanitation District, with expected completion and testing in 2025, projected to generate approximately $1.3 million in revenue. The company is also exploring potential upgrades to larger systems at the facility. In a strategic move to bolster its technological innovation, 374Water has appointed Raj Melkote as its new Chief Technology Officer. Melkote brings extensive experience in research and development, previously serving as CTO at BayoTech Hydrogen. These recent developments underscore 374Water’s ongoing commitment to advancing waste destruction technology and addressing environmental challenges.
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