Mon, May 19, 12:02 PM (33 days ago)
**OriginClear, Inc. (OCLN) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $2,097,050, up 122% from $943,437 in Q1 2024, driven by equipment contracts and pump station sales. - **Gross Profit:** $692,614, a significant improvement from a loss of $112,503 in Q1 2024. - **Operating Expenses:** $1,536,562, down 14.8% from $1,804,754 in Q1 2024. - **Net Loss:** $767,034, an improvement of $15,339,951 from a net loss of $16,108,918 in Q1 2024. - **Cash and Cash Equivalents:** $1,898,564, up from $550,884 at the end of 2024. **Profit Margins and Cash Flow:** - **Gross Margin:** 33.0% in Q1 2025, compared to -11.9% in Q1 2024. - **Net Margin:** -36.6% in Q1 2025, improved from -170.6% in Q1 2024. - **Cash Flow from Operations:** Net cash used in operating activities was $221,342, reflecting adjustments for derivative liabilities and working capital movements. **Earnings Changes and Trends:** - **Revenue Growth:** Significant increase in revenue, particularly in equipment contracts and pump station sales. - **Expense Management:** Reduction in selling and marketing expenses and general and administrative expenses. - **Other Income/Expenses:** Notable gain on re-measurement of derivative liabilities and write-off of payables. **Future Operations and Uncertainties:** - **Liquidity:** Expects negative operating cash flows to continue, with plans to secure additional equity or convertible debt financing. - **Debt and Leases:** Scheduled debt-service and lease obligations of approximately $3.2 million over the next 12 months. - **Going Concern:** Substantial doubt about the ability to continue as a going concern due to recurring losses and negative cash flows. **Segment Performance:** - **Water System Solution Engineering:** Revenue of $1,404,670, gross profit of $504,942. - **Modular/Prefabricated Treatment and Conveyance Systems:** Revenue of $692,379, gross profit of $187,960. - **Full-Service Systems:** No revenue reported. - **Corporate:** General and administrative expenses of $544,613. **Subsequent Events:** - **MWS Unit:** Plan to sunset the Modular Water Systems (MWS) unit over 60 days, focusing on water-infrastructure financing. - **Fundraising:** Ongoing efforts to secure additional financing through convertible notes and preferred stock offerings. **Ticker:** OCLN