Wed, May 15, 9:41 PM (72 days ago)
For the quarter ending March 31, 2024, OriginClear, Inc. reported a significant decline in financial health. Revenue remained flat at $6,573 compared to the same period in 2023, with no cost of goods sold. However, the company experienced an increased net loss of $15.9 million, up from $0.5 million in the prior year, primarily due to a substantial loss on the change in fair value of derivatives. Operating expenses decreased slightly from $1.7 million to $1.4 million, but this was offset by a $12.8 million loss on derivative liabilities. Cash flow from operations improved slightly but remained negative at $0.7 million, compared to $1.9 million in the prior period. Financing activities provided $1.5 million, down from $3.2 million, due to reduced proceeds from preferred stock and promissory notes. The company’s working capital deficit worsened to $45.8 million from $32.2 million, driven by increased derivative liabilities and accrued expenses. OriginClear continues to face liquidity challenges, relying heavily on raising capital through equity and debt financing. The company is focused on its subsidiary, Water On Demand, Inc., which is undergoing a merger with Fortune Rise Acquisition Corp. The company remains a going concern, contingent on securing additional financing and increasing sales.