Financial Performance - ClearSign Technologies recognized approximately 1.3 million in Q4 2023, attributed to reduced business activity [17]. - For the full year 2024, ClearSign achieved record revenues of approximately 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 3.2 million in 2023, driven by a decrease in contract liabilities [22]. - ClearSign reported a net loss of approximately 100,000 compared to 2023, partly due to a one-time expense of 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 600,000 and 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].
ClearSign Technologies (CLIR) - 2025 Q1 - Quarterly Results