Financial Performance - ClearSign Technologies recognized approximately $590,000 in revenues for Q4 2024, a decrease from $1.3 million in Q4 2023, attributed to reduced business activity [17]. - For the full year 2024, ClearSign achieved record revenues of approximately $3.6 million, a 50% increase compared to $2.4 million in 2023 [19]. - The gross profit margin for 2024 was approximately 31.1%, down from 34% in 2023, primarily due to higher-than-expected start-up costs for a new boiler burner installation [21]. - The net cash used in operations for 2024 was approximately $4.4 million, an increase from $3.2 million in 2023, driven by a decrease in contract liabilities [22]. - ClearSign reported a net loss of approximately $5.3 million for 2024, an increase of $100,000 compared to 2023, partly due to a one-time expense of $400,000 related to placing its China entity into dormant status [23][24]. - As of December 31, 2024, ClearSign had approximately $14 million in cash and cash equivalents, with about 50.2 million shares of common stock outstanding [26]. Strategic Partnerships and Collaborations - ClearSign formed a collaborative agreement with Zeeco, the second-largest burner manufacturer, to enhance product delivery and market presence [38]. - A co-branded Zeeco-ClearSign burner line was announced, with joint marketing efforts and training for the Zeeco sales team to promote ClearSign technology [53][54]. - ClearSign aims to diversify its product lines and expand sales channels, leveraging partnerships with companies like California Boiler and Zeeco [48]. - The agreement with Zeeco covers global refinery process burners, enhancing the company's market reach [179]. - The rollout of the Zeeco agreement is expected to take until 2026 for orders to materialize due to the slow nature of the industry [182]. - The company is currently focused on marketing materials and educating the Zeeco sales team to develop leads [181]. Product Development and Technology - The M Series burner was successfully installed in a midstream heater, achieving 2 ppm NOx emissions, demonstrating significant efficiency improvements [66]. - ClearSign has received an order for a second burner from Devco following the successful installation of the first burner [68]. - The company has 20 burners shipped to California, scheduled for installation and startup in early Q3 2023 [83]. - A four-heater order for a Fortune 500 chemical company on the Texas Gulf Coast is currently in the testing phase, with installation planned for early Q3 2023 [84]. - ClearSign is engaged in technology discussions for global refinery heater conversions, marking a significant step in expanding its market presence [87]. - A recent flare order project is valued at approximately $250,000, showcasing ClearSign's technology in a new application [100]. - The company is exploring opportunities in the low-NOx flare market, which could lead to system project values between $600,000 and $1.2 million [108]. - ClearSign has placed four Eye sensors at a major refinery as part of a trial, indicating renewed interest in this product line [113]. - The sensors developed by the company are expected to sell for approximately $4,000 each, with typical orders ranging from 10 to 50 sensors at a time [128]. - The addressable market for these sensors is significant, as they can be applied to every refinery burner globally, indicating a large growth opportunity [127]. - The hydrogen burner being developed is designed to be fuel-flexible, capable of operating on a range of gases from pure natural gas to 100% hydrogen [160]. Market Engagement and Sales Outlook - The company is experiencing increased pricing from vendors due to tariffs, which is affecting the cost of goods sold, particularly for stainless-steel materials [135]. - The company has received a request for quote for sensors from a global refiner, indicating strong interest in the new technology [142]. - The M1 burners are expected to drive significant sales in the midstream industry, with the company expressing excitement about their potential [138]. - The company aims to diversify its product line and expand its market reach, which will help smooth out revenue flow [131]. - The company has noted a potential for fuel savings of approximately 3% or more, which is a key selling point alongside reduced NOx emissions [167]. - The company is actively discussing proposals that have the potential to turn into orders, indicating a positive outlook for future sales [153]. - There is a significant increase in the range of projects and quotations compared to previous periods, indicating growth in engagement [173]. - The emphasis on fuel savings is highlighted as a material benefit for customers, alongside NOx reduction [175]. Operational Considerations - The company is cautious about rolling out technology in China due to concerns over intellectual property and pricing [180]. - The team has shown dedication and flexibility in expanding the business into new areas, requiring technical development and project planning [186]. - New accounting processes have been developed to support customers in innovative ways [187]. - The company acknowledges the operational support required for day-to-day operations alongside new initiatives [187]. - The CEO expressed gratitude to investors and employees for their continued support and dedication [186].

Financial Data and Key Metrics Changes - For Q4 2024, ClearSign recognized approximately $590,000 in revenues, a decrease from $1.3 million in Q4 2023, attributed to reduced business activity [7][8] - Full year 2024 revenues reached approximately $3.6 million, a 50% increase from $2.4 million in 2023, driven by increased business activity [9][10] - Gross profit margin for 2024 was approximately 31.1%, down from 34% in 2023, due to higher startup costs associated with a new boiler burner installation [11][12] - Net cash used in operations for 2024 was approximately $4.4 million, compared to $3.2 million in 2023, influenced by a decrease in contract liabilities [12][13] - The net loss for 2024 was approximately $5.3 million, an increase of $100,000 from 2023, partly due to a one-time expense related to the China entity [13][14] Business Line Data and Key Metrics Changes - The revenue increase in 2024 was primarily from the shipment of 25 process burners to California refineries, compared to 8 process burners in 2023 [9][11] - The company shipped two boiler burners in Q4 2024, down from eight process burners in Q4 2023, indicating a shift in product focus [8][9] Market Data and Key Metrics Changes - The company is experiencing a slow market in the boiler burner sector, particularly in California, but has seen an uptick in inquiries recently [71][72] - The midstream market is identified as a significant opportunity, with successful installations leading to further orders [46][56] Company Strategy and Development Direction - ClearSign aims to diversify its product lines and expand its market reach, leveraging partnerships with companies like Zeeco and California Boiler [26][28] - The company is focusing on developing technology applicable to larger markets while maintaining its core competencies [29][32] - The introduction of the M-Series burner is expected to enhance market opportunities, particularly in the midstream sector [44][60] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting the importance of sales leads from partnerships and the potential for growth in the midstream industry [115][116] - The company is also exploring opportunities in the flaring market and sensor technology, which could provide additional revenue streams [90][106] Other Important Information - ClearSign received a letter from NASDAQ regarding non-compliance with minimum bid price requirements, with a 180-day cure period to regain compliance [14] - As of December 31, 2024, the company had approximately $14 million in cash and cash equivalents [15] Q&A Session Summary Question: What led to the record revenue year? - Management noted that the revenue increase was primarily due to a large order of refinery burners shipped to Los Angeles and ongoing customer relationships [20][21] Question: What are the high-level themes and strategies for 2025 and 2026? - The focus is on diversifying product lines, expanding sales channels, and leveraging partnerships to enhance market presence [29][32] Question: What is the current status of the process burner pipeline? - The company has 20 burners scheduled for installation in California and a four-burner order for a Fortune 500 chemical company in Texas [66][68] Question: What is the outlook for the boiler burner market? - The market has been slow, but recent inquiries suggest a potential uptick in activity [71][72] Question: How is the company addressing tariff impacts? - Increased pricing from vendors due to tariffs is being managed through proposal adjustments [111][112] Question: What is the status of the hydrogen burner project? - The hydrogen burner is designed to be fuel-flexible, suitable for various gas blends, ensuring its utility regardless of hydrogen project timelines [135][136]

Core Insights - ClearSign Technologies Corporation achieved record annual revenue of approximately $3.6 million for the year ended December 31, 2024, compared to $2.4 million in 2023, marking a year-over-year increase driven primarily by a significant order for process burners from a California refinery [3][18]. Strategic and Operational Highlights - The company has expanded its collaboration with Zeeco, launching a co-branded process burner product line that can utilize 100% natural gas and hydrogen while maintaining low emissions [4]. - ClearSign received a follow-on purchase order for a multi-heater project from Birwelco USA Inc. to retrofit four process heaters with 26 ClearSign Core™ burners for a Fortune 500 chemical company [5]. - The company is installing ClearSign Eye sensors at a supermajor refinery on the U.S. Gulf Coast, expected to be completed in the second quarter of 2025 [6]. - ClearSign secured burner orders from Exotherm Corporation for power generation applications in Oklahoma and Missouri [8]. Financial Information - As of December 31, 2024, the company reported cash and cash equivalents of approximately $14 million, an increase from $5.7 million in 2023 [9][15]. - Total assets increased to approximately $15.9 million in 2024 from $7.6 million in 2023, while total liabilities decreased to $2.2 million from $2.4 million [15][16]. - The company reported a net loss of $5.3 million for 2024, slightly higher than the net loss of $5.2 million in 2023, with a net loss per share of $(0.11) compared to $(0.13) in the previous year [18].

Core Insights - ClearSign Technologies Corporation (CLIR) reported a loss of 11 cents per share in 2024, which was better than the Zacks Consensus Estimate of a loss of 13 cents per share and an improvement from the loss of 13 cents per share in 2023 [1] - The company registered revenues of $3.6 million in 2024, a 49.6% increase from $2.4 million in 2023, driven by a higher number of process burners shipped [2] - The gross profit was $1.1 million in 2024, up 37% year over year, but the gross margin decreased to 31.1% from 34% in 2023 due to higher start-up costs [4] Financial Performance - The cost of sales increased to $2.48 million in 2024 from $1.59 million in 2023, leading to a gross margin contraction [4] - General and administrative expenses rose by 1.3% year over year to $6.14 million, while total operating expenses increased by 12% to $7.6 million, resulting in an operating loss of $6.49 million compared to $5.98 million in the prior year [5] - The company reported cash and cash equivalents of $14 million at the end of 2024, up from $5.7 million at the end of 2023, with $4.4 million used in operating activities in 2024 [6] Operational Highlights - In 2024, the company shipped 25 process burners to two California refineries, compared to eight process burners to one refinery and three customer witness tests in 2023 [3] - The company's shares have decreased by 21.4% over the past year, while the industry has seen a decline of 11.0% [7]

Technology and Innovation - ClearSign Core™ technology can reduce nitrogen oxide (NOx) emissions to levels of 5 parts per million (ppm) or below, enhancing compliance with stringent emission regulations[32] - Burners utilizing ClearSign Core™ technology can achieve increased heat transfer efficiency, potentially resulting in cost savings in the low to mid-single digit percentage range[18] - ClearSign Core™ technology is designed to operate without the need for external flue gas recirculation or selective catalytic reduction systems, making it more cost-effective than traditional air pollution control technologies[17] - ClearSign Core™ technology has demonstrated the ability to burn fuels with up to 80% hydrogen while controlling NOx emissions, positioning the company for future hydrogen fuel applications[30] - The company is developing the ClearSign Eye flame sensing technology, which can be retrofitted into existing burner systems and is applicable to various markets beyond emissions reduction[19] - ClearSign's technology aims to minimize maintenance and downtime, enhancing overall operational efficiency for industrial applications[18] - ClearSign's technology focuses on core components that enhance combustion performance while minimizing emissions, positioning the company favorably against upcoming environmental regulations[69] - ClearSign's research and development efforts are focused on optimizing technology for customer adoption and expanding into adjacent market verticals, including flame sensing and hydrogen burner technology[87] Market and Customer Engagement - The company has successfully deployed its combustion technology in commercial projects, including downstream refining and upstream oil production[16] - The company has targeted the energy sector, including downstream oil refineries and upstream crude oil production, as initial markets for its technology[24] - Recent regulatory changes in California have led to significant reductions in target NOx emissions, increasing demand for ClearSign's products[26] - The company has one installation operating in a major global oil refiner in Europe, indicating international market expansion[29] - ClearSign CoreTM technology has been deployed in six process heaters for global supermajor and Fortune 500 companies, with installations in California and Europe[44] - In 2022, ClearSign received a purchase order for twenty process burners from a California refinery, with installation now expected in Q3 2025 due to project delays[45] - The company has received three additional orders for modified ClearSign CoreTM boiler burners, indicating a growing market opportunity in low emissions burners[46] - ClearSign's operational strategy emphasizes partnerships with major OEM manufacturers to enhance product offerings and reduce market entry barriers, aiming for significant commercial opportunities[70] - In 2024, ClearSign's sales strategy targeting OEM heater companies resulted in multiple orders from a single heater OEM, indicating effective market penetration[74] Financial Performance - Revenues for the year ended December 31, 2024, increased by $1,193 thousand, or 49.6%, to $3,596 thousand compared to $2,403 thousand in 2023[206] - Gross profit rose by $301 thousand, or 36.8%, for the year ended December 31, 2024, resulting in a gross profit margin decrease from 34.0% in 2023 to 31.1% in 2024[207] - The net loss for the year ended December 31, 2024, was $5,299 thousand, a slight increase of $105 thousand compared to a net loss of $5,194 thousand in 2023[205] - The company reported that its two California refinery customers accounted for 86% and 87% of annual revenue for the years ended December 31, 2024, and 2023, respectively[80] - The company has incurred total losses of $99.0 million since inception and expects to continue experiencing operating losses and negative cash flow for the foreseeable future[182] Research and Development - The company has received approximately $1.9 million in grants from the Department of Energy to develop a hydrogen-capable burner, with a target completion date in 2025[49] - Research and development expenses surged by $732 thousand, or 99.1%, for the year ended December 31, 2024, primarily due to increased headcount and product development costs[209] - The increase in R&D expenses included $269 thousand for additional headcount and $367 thousand for product development costs in 2024[209] - The company is currently engaged in R&D for a 100% hydrogen-capable burner aimed at reducing industrial emissions of CO2 and NOx[48] Risks and Challenges - The company faces risks associated with market acceptance of its technology, which is difficult to predict and may impede revenue generation[101] - The company is subject to sustainability efforts risks that could adversely affect its reputation and business due to changing views on environmental issues[107] - The company operates in a highly competitive combustion industry, where many competitors have greater resources and capabilities[120] - The company is exposed to significant risks related to its business activities in China, including economic, political, and legal uncertainties that could adversely affect operations[123] - The company cannot assure that rising inflation will not negatively impact its operations, although the impact has been moderate in recent years[126] - Global supply-chain constraints have had a moderate impact on the company, but future disruptions could adversely affect commercialization efforts and operating results[131] - The company is dependent on third-party suppliers for raw materials, and any failure or delays from these suppliers could materially affect operations[134] - The company may require substantial additional funds in excess of current financial resources for research, development, and commercialization of its technology[100] Corporate Governance and Structure - The company has established a collaborative agreement with Zeeco, a leading burner manufacturer, to globally produce ClearSign CoreTM process burners, with a co-branded product line expected to launch in December 2024[71] - The company operates under an "asset light" model, utilizing subcontractors for sourcing and manufacturing, which minimizes capital investment and maximizes resource efficiency[82] - The company aims to utilize an "asset light" model by collaborating with strategic partners to maximize profitability and service capabilities[68] - The company has no committed source of financing and cannot assure that it will be able to raise funds as needed to continue operations[187] Shareholder Information - The company has not paid any cash dividends to date and does not anticipate doing so in the foreseeable future[177] - The company may need to raise additional capital, which could dilute existing shareholders and adversely affect the market price of its common stock[144] - The company has increased the number of authorized shares of common stock from 62.5 million to 87.5 million[194] - As of December 31, 2024, the company had outstanding options for the purchase of 2,943 thousand shares of common stock and 864 thousand shares of restricted stock units (RSUs)[149] Cybersecurity - The company has engaged third-party cybersecurity consultants to assess its cybersecurity practices using the NIST Cybersecurity Framework[166] - The company recognizes the importance of robust cybersecurity measures and has implemented continuous improvement processes for risk management[163]

Core Points - ClearSign Technologies Corporation is an emerging leader in industrial combustion and sensing technologies focused on decarbonization, operational and energy efficiency, hydrogen fuel usage, and emissions reduction [1][4] - The company will host a conference call on April 2, 2025, at 5:00 PM ET to discuss its financial and operating results for the year ending December 31, 2024 [1] - A summary of the annual report on form 10-K will be filed with the SEC shortly before the call [1] Participation Details - Investors can participate in the live call by dialing 1-800-836-8184 within the U.S. or 1-646-357-8785 from abroad [2] - The call will also be accessible via a listen-only webcast on the company's investor relations website [2] - A Q&A session will be held during the call, and questions can be submitted in advance via email [3] Company Overview - ClearSign Technologies designs and develops technologies aimed at improving performance characteristics in industrial and commercial systems, focusing on decarbonization, energy efficiency, and safety [4] - The company's patented technologies, such as ClearSign Core™ and ClearSign Eye™, enhance combustion and fuel safety systems across various industries, including energy, chemical, and power [4]

Group 1: Company Developments - ClearSign Technologies Corporation (CLIR) received a purchase order for its new ClearSign Core M1 process burner, indicating early market engagement for the M series line [1] - The purchase order was from Devco Process Heaters for use in a hot oil heater at a gas processing facility in Colorado, with expected delivery in the second quarter of 2025 [3] - The ClearSign Core M1 technology has achieved SCR-level NOx emissions and high heat transfer efficiency at a Texas facility, leading to significant interest and multiple requests for quotes [2] Group 2: Financial Performance - In Q3 2024, ClearSign Technologies reported an adjusted loss of 2 cents per share, which was narrower than the Zacks Consensus Estimate of a loss of 3 cents, and an improvement from a loss of 3 cents in the same quarter the previous year [4] - The company generated revenues of $1.86 million in Q3 2024, a significant increase from $0.09 million in the year-ago quarter, surpassing the Zacks Consensus Estimate of $1 million [4] Group 3: Industry Context - ClearSign Technologies operates within the Industrial Services industry, where peers have also reported their financial performances for Q4 2024 [5] - Global Industrial Company (GIC) reported earnings of 27 cents per share in Q4 2024, missing the Zacks Consensus Estimate, with net revenues of $302 million, down 5.6% year-over-year [6] - W.W. Grainger, Inc. (GWW) posted adjusted earnings per share of $9.71 in Q4 2024, missing estimates, while revenues rose 5.9% year-over-year to $4.23 billion but also missed expectations [7][8]

Core Insights - ClearSign Technologies Corporation has received a purchase order for its ClearSign Core™ M1 process burner from Devco Process Heaters, indicating strong market interest in its new "M" series [1][2] - The ClearSign Core™ M1 will be installed in a gas processing facility in Colorado, with delivery expected in the second quarter of 2025 [2] - The company aims to extend the applicability of the burner series beyond the midstream market to include boilers and other types of process heaters [2] Company Overview - ClearSign Technologies Corporation focuses on decarbonization and enhancing performance characteristics of industrial systems, including energy efficiency and emission reduction [3] - The company's patented technologies, such as ClearSign Core™ and ClearSign Eye™, are designed to improve combustion systems and fuel safety across various industries, including energy, chemical, and power [3]

Core Insights - ClearSign Technologies Corporation has introduced a new burner technology, ClearSign Core™ M1, which demonstrates superior nitrogen oxide (NOx) emissions and heat transfer efficiency [1][2][3] - The new burner technology achieved sub 2ppm NOx emissions with less than 15% excess air, indicating an efficiency improvement of approximately 3% compared to existing sub 10ppm NOx burners [2] - The technology was developed through advanced computational fluid dynamics modeling and is specifically designed for the horizontally fired process heater market, with potential applications in other areas such as boilers [2][3] Company Overview - ClearSign Technologies focuses on decarbonization and enhancing performance characteristics of industrial systems, including energy efficiency and emission reduction [4] - The company’s patented technologies are integrated into various markets, including energy production, commercial/industrial boilers, and petrochemicals [4] - The collaboration with Tulsa Heaters Midstream highlights the company's commitment to innovation and market responsiveness [3][4]

Core Insights - ClearSign Technologies Corporation has received a purchase order for a flare from an energy company in California, indicating a growing opportunity for its emissions reduction technologies [1][2] - The order is for a flare retrofit at a production facility, with the final product expected to be fabricated and shipped in the second quarter of 2025 [2] Company Overview - ClearSign Technologies designs and develops products aimed at decarbonization and improving performance in industrial and commercial systems, focusing on operational performance, energy efficiency, emission reduction, safety, and cost-effectiveness [3] - The company's patented technologies, such as ClearSign Core™ and ClearSign Eye™, enhance combustion systems and fuel safety across various markets, including energy, commercial/industrial boiler, chemical, petrochemical, transport, and power industries [3]