ClearSign Technologies (US:CLIR)2025-11-14 21:06Revenue Performance - The company reported revenues of $1,029 thousand for the three months ended September 30, 2025, a decrease of $830 thousand or 44.6% compared to $1,859 thousand in the same period of 2024[107]. - For the nine months ended September 30, 2025, revenues were $1,563 thousand, down $1,443 thousand or 48.0% from $3,006 thousand in the same period of 2024[108]. Net Loss and Profitability - The net loss for the three months ended September 30, 2025, was $1,429 thousand, an increase of $274 thousand or 23.7% compared to a net loss of $1,155 thousand in the same period of 2024[107]. - The gross profit for the three months ended September 30, 2025, decreased by $183 thousand or 33.2% compared to the same period in 2024, primarily due to lower revenues[111]. Operating Expenses - Operating expenses for the three months ended September 30, 2025, totaled $2,118 thousand, an increase of $134 thousand or 6.8% compared to $1,984 thousand in the same period of 2024[107]. - G&A expenses increased by $153 thousand, or 9.3%, for the three months ended September 30, 2025, compared to the same period in 2024[114]. - For the nine months ended September 30, 2025, G&A expenses increased by $620 thousand, or 12.8%, primarily due to a $588 thousand increase in legal fees[115]. Cash Flow and Working Capital - Cash and cash equivalents decreased by $3,547 thousand to $10,488 thousand as of September 30, 2025, primarily due to a net loss of $5,185 thousand[118]. - Working capital decreased to $8,168 thousand as of September 30, 2025, compared to $12,809 thousand at December 31, 2024[119]. - Operating activities resulted in cash outflows of $3,453 thousand for the nine months ended September 30, 2025, primarily due to a net loss of $5,185 thousand[120]. - Investing activities resulted in cash outflows of $78 thousand for the nine months ended September 30, 2025, primarily for patents and intangible assets[122]. - Financing activities resulted in cash outflows of $17 thousand for the nine months ended September 30, 2025, primarily due to taxes paid for the vesting of employee restricted stock units[123]. Equity and Compliance - As of September 30, 2025, the company has raised approximately $105.3 million in gross proceeds through equity securities sales[91]. - The company entered into an ATM Offering Agreement with Wainwright to offer and sell shares of common stock with an aggregate offering price of up to $10,390,000[100]. - The company received a 180-day extension from Nasdaq to regain compliance with the minimum bid price requirement, with a deadline of March 30, 2026[102]. - The company was granted a 180-day extension until March 30, 2026, to regain compliance with Nasdaq's minimum closing bid price requirement[138]. Share Issuance and Potential Liabilities - Approximately 21.3 million shares of common stock are issuable upon exercise of outstanding warrants, potentially raising up to $22.5 million in gross proceeds[119]. - The company issued 15,000 shares to Firm IR Group LLC for services rendered, with 3,750 shares issued at a fair market value of $0.94 per share on September 30, 2025[145]. - An additional 87,016 shares were issued to Firm IR at a fair market value of $0.58 per share for reimbursement of legal fees incurred[146]. - The company has no contractual debt obligations and plans to fund operations through equity offerings until revenue growth covers operating expenses[119]. Legal and Insurance Risks - The company is subject to potential liabilities that may not be fully covered by insurance, which could impact financial condition and cash flows[143]. - There are inherent uncertainties in litigation costs and outcomes that could materially affect the company's financial status[144]. - No directors or officers adopted or modified trading arrangements during the fiscal quarter ended September 30, 2025[151]. Research and Development - Research and development expenses remained relatively consistent year-over-year for both the three and nine months ended September 30, 2025[113].