OriginClear Continues Revenue and Gross Margin Growth in Third Quarter

CLEARWATER, Florida–(BUSINESS WIRE)–Origin Clear Inc.. (OTC pink: OCLN), a leader in the stand-alone water revolution that develops outsourced pay-per-gallon programs, today announced that third quarter 2021 revenue and gross profit improved significantly from the second quarter, while that operating losses have decreased.

The company reported the following highlights from its recent quarterly report:

Third quarter 2021 compared to second quarter 2021:

  • Income improved 20% to $1,120,687 compared to $931,422.

  • Gross profit improved 87% to $330,351 compared to $176,500.

  • Cost of sales grown up 5% to $790,336 compared to $754,922.

  • Operating losses Shrunk at ($1,323,074) compared to ($1,929,679).

Third quarter 2021 compared to third quarter 2020:

  • Income improved 22% to $1,120,687 compared to $917,320.

  • Gross profit improved at $330,351 compared to ($17,388).

  • Cost of sales improved 15% to $790,336 compared to $934,708.

  • Operating losses grown up at ($1,323,074) compared to ($1,183,722).

“We are very pleased with the progress of our Progressive Water Treatment and Modular Water Treatment divisions,” said Riggs Eckelberry, CEO of OriginClear.

“The growth of our conventional business is great news,” said Tom Marchesello, OriginClear’s COO. “And now, with the launch of our Water On Demand pre-funded water equipment program, we think the year ahead holds promise.”

ORIGINCLEAR, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020

(Unaudited)

Three months completed

Nine month period ended

September 30,

2021

September 30,

2020

September 30,

2021

September 30,

2020

Sales

$

1,120,687

$

917 320

$

2,848,287

$

3,064,758

Cost of Goods Sold

790 336

934 708

2,237,282

2,716,582

Gross profit

330 351

(17,388

)

611 005

348 176

Functionnary costs

Sales and marketing expenses

636 481

339,759

2,201,045

1,053,559

General and administrative expenses

1,006,041

782 810

2,785,713

1,853,760

Research and development

29,334

83,400

Depreciation and amortization

10,903

14,431

34,034

39,892

Total operating expenses

1,653,425

1,166,334

5,020,792

3,030,611

Operating loss

(1,323,074

)

(1,183,722

)

(4,409,787

)

(2,682,435

)

OTHER INCOME (EXPENSES)

Other income

356 438

4,001

359,939

12,521

Depreciation of asset for sale

(116,000

)

(116,000

)

Gain on write-off of loans payable

151,000

157 250

Gain/(Loss) on conversion of preferred shares

(146,382

)

18,066

(1,265,666

)

24 129

Loss on exchange of preferred shares

(40,000

)

Unrealized capital gain (loss) on marketable securities

(8,400

)

3,600

32,000

400

Gain on net change in derivative liability and debt conversion

19,798,080

6,409,231

(4,146,757

)

23,627,793

Interest expense

(314,547

)

(233,010

)

(934,942

)

(638,077

)

TOTAL OTHER (EXPENDITURE) REVENUES

19,720,189

6,201,888

(5,954,176

)

23,026,766

NET INCOME (LOSS)

$

18,397,115

$

5,018,166

$

(10,363,963

)

$

20,344,331

DIVIDENDS ON PREFERRED SHARES

SUBSCRIPTION WARRANTS DEEMED DIVIDENDS

(2,037,849

)

(NET LOSS) ATTRIBUTABLE TO SHAREHOLDERS’ INCOME

$

18,397,115

$

5,018,166

$

(12,401,812

)

$

20,344,331

BASIC EARNINGS (LOSS) PER SHARE ATTRIBUTABLE TO SHAREHOLDERS

$

0.09

$

0.27

$

(0.08

)

$

1.75

DILUTED EARNINGS (LOSS) PER SHARE ATTRIBUTABLE TO SHAREHOLDERS

$

0.02

$

0.03

$

(0.08

)

$

0.15

WEIGHTED AVERAGE OUTSTANDING COMMON SHARES, BASIC

197 669 804

18,643,531

147,762,596

11,598,453

DILUTED

795 174 058

146,074,997

147,762,596

139 029 918

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

About OriginClear Inc.

OriginClear is leading the autonomous water revolution, democratizing water investing by developing a marketplace to connect investors to water projects; and commercializing advanced modular, pre-engineered, filterless systems for faster sanitation worldwide. With America’s broken infrastructure and $100 billion in government spending to fix the nation’s more than 150,000 water systems, OriginClear is helping them “cut the cord”, developing outsourced pay-per-gallon programs and a future digital currency to streamline payments. Our line of Modular Water Products and Systems is key to the self-contained water treatment revolution because they create “instant infrastructure” – fully engineered, pre-engineered and pre-packaged systems that use durable and sophisticated materials. To learn more about OriginClear®, please visit our website at www.originclear.com.

For more information, visit the company’s website: www.OriginClear.com

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OriginClear Safe Harbor Statement:

The matters discussed in this press release contain forward-looking statements. When used in this release, the words “anticipate”, “believe”, “estimate”, “could”, “intend”, “expect” and similar expressions identify such forward-looking statements. . Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein.

These forward-looking statements are based largely on the Company’s expectations and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with our loss history and need for additional financing, market acceptance of our products and technology, our ability to demonstrate commercial viability of our products and technology and our need to increase the size of our organization, and whether or when the Company will receive and/or fulfill its obligations under any buyer order. Further information about the Company’s risk factors is contained in the Company’s quarterly and annual reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to publicly revise or update any forward-looking statements for any reason, except as required by applicable law.