OriginClear, Inc. reported significant financial challenges in its latest 10-Q filing for the period ending September 30, 2024. The company recorded no revenue for the three months ended September 30, 2024, a stark decline from $6,573 in the same period of 2023. For the nine months ended September 30, 2024, total revenue was $6,573, down from $19,719 in the prior year. This decline reflects ongoing difficulties in generating sales, particularly in its Water on Demand (WOD) segment.
The company's total current assets increased to $2.8 million as of September 30, 2024, from $2.5 million at the end of 2023. However, total current liabilities surged to $46.8 million, up from $34.7 million, leading to a significant working capital deficit of $44 million. Total liabilities rose to $49.3 million, compared to $34.9 million at the end of 2023, contributing to an accumulated deficit of $133.7 million.
Operating expenses for the three months ended September 30, 2024, totaled $1.3 million, compared to $947,850 in the same period of 2023. Selling and marketing expenses increased to $731,792 from $470,231, reflecting heightened marketing efforts despite the lack of revenue. The net loss for the three months was $2.8 million, an improvement from a loss of $3.3 million in the prior year, primarily due to gains in other income, including a $756,395 gain from changes in the fair value of derivative liabilities.
For the nine months ended September 30, 2024, the net loss was $15.1 million, compared to a loss of $8.1 million in the same period of 2023. This increase in loss was attributed to a decline in gains from derivative liabilities and stock conversions.
Strategically, OriginClear announced a merger with Fortune Rise Acquisition Corp. (FRLA) on October 24, 2023, which is expected to reshape its operational structure. The company has also been actively pursuing additional financing through convertible notes and preferred stock sales to address its financial challenges. As of September 30, 2024, cash and cash equivalents were $44,182, a decrease from $114,640 at the end of 2023.
The company’s main subsidiary, Water on Demand, Inc. (WODI), continues to focus on developing a pay-per-gallon water treatment service model, although it currently has no dedicated staff. The merger with FRLA and the strategic partnerships formed with companies like Enviromaintenance are part of its efforts to enhance operational capabilities and market presence.
About ORIGINCLEAR, INC.
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