OriginClear Reports Revenue Growth to $2.1 Million, Net Loss Reduced in Latest Quarter

OriginClear, Inc. reported significant financial improvements in its latest quarterly filing, with revenues for the three months ended March 31, 2025, reaching $2.1 million, a substantial increase from $943,437 in the same period last year. This growth was primarily driven by a surge in equipment contract revenues, which rose to $1.5 million from $363,358, as larger projects reached billing milestones. The company's gross profit also saw a notable turnaround, improving to $692,614 from a gross loss of $112,503 in the prior year, resulting in a gross margin of 33% compared to a negative margin of 11.9% in 2024.

Despite the revenue growth, OriginClear reported a net loss of $767,034 for the first quarter of 2025, a significant improvement from the loss of $16.1 million in the same quarter of 2024. This reduction in losses was attributed to a $1.4 million gain on the re-measurement of derivative liabilities, compared to a $12.8 million loss in the previous year. The company also benefited from a $249,334 gain from the write-off of loans payable and the absence of a $590,000 impairment charge that impacted the prior year's results.

Operationally, OriginClear has made strategic changes, including the merger of its subsidiary Water On Demand, Inc. (WODI) with Progressive Water Treatment, Inc. (PWT) in September 2023. As of March 31, 2025, WODI has focused on financing and operating water treatment systems under a Design-Build-Own-Operate (DBOO) model. However, on May 8, 2025, the company announced plans to wind down its Modular Water Systems (MWS) unit to concentrate on its financing services, with PWT becoming the sole revenue contributor.

The company’s cash position improved significantly, with cash and cash equivalents rising to $1.9 million from $550,884 at the end of 2024. However, OriginClear continues to face challenges, including a working capital deficit of $44.5 million and a shareholders' deficit of $53.9 million. Management has expressed substantial doubt about the company's ability to continue as a going concern, citing ongoing losses and the need for additional financing to meet its obligations.

Looking ahead, OriginClear plans to address its financial challenges through further equity or convertible debt financing, although no binding commitments are currently in place. The company is actively seeking funding to support its operations and has indicated that it may need to reduce discretionary spending if financing cannot be secured. The strategic focus on water infrastructure financing and the recent organizational changes are expected to play a crucial role in the company's future performance.