ClearSign Technologies (CLIR) - 2025 Q3 - Quarterly Results

Revenue Performance - For Q3 2025, ClearSign Technologies recognized approximately $1 million in revenues, a decrease from approximately $1.9 million in Q3 2024, primarily due to a large order shipped in the prior year[7]. - The year-over-year order volume has increased, with Q3 2025 revenue driven by multiple spare parts orders and engineering services, indicating a successful diversification strategy[8]. - Spare parts sales contributed approximately $300,000 to revenue this quarter, indicating a growing and consistent revenue stream as more equipment is installed[78]. - ClearSign expects to see a proportional increase in spare parts revenue as the installed base of equipment grows, contributing to overall profitability[78]. Financial Performance - The net loss for Q3 2025 increased by approximately $274,000 compared to Q3 2024, but the gross margin improved by approximately 6.1 percentage points year-over-year[9]. - Net cash used in operations for Q3 2025 was approximately $1.8 million, up from $1.4 million in Q3 2024, with cash and cash equivalents at approximately $10.5 million as of September 30, 2025[10]. Product Development and Innovation - The company is developing a new burner technology capable of running on 100% natural gas to 100% hydrogen, with significant testing completed at the Zeeco test facility[20][23]. - The DOE SBIR project for developing a range of burners is nearing completion, with validation of scaling criteria underway to support future product lines[23]. - ClearSign is actively promoting its new burner developed from the SBIR program, which is expected to open new market opportunities and enhance customer engagement[69]. - The company is developing a burner capable of operating on a wide range of fuel mixtures, including 100% hydrogen, which positions it well for future market demands[75]. Market Demand and Customer Engagement - ClearSign has seen an uptick in order flow across major product lines, driven by customer trust and ongoing regulatory pressures in key markets like Texas and California[13]. - Regulatory changes in Texas and California are driving increased interest in ClearSign's products, particularly in the US Gulf Coast refining and petrochemical market[79]. - The company has received a testing order from a petrochemical client for a 100% hydrogen-capable burner, indicating strong interest in future deployment[19]. - ClearSign's focus on product development is aimed at addressing customer needs and expanding into new applications within the process field[69]. Strategic Partnerships and Collaborations - The partnership with Zeeco is progressing well, with extensive testing and fabrication support for ClearSign's burners, leading to increased proposals from Zeeco's sales teams[62]. - ClearSign Technologies is manufacturing 26 burners at Zeeco, with a focus on shipping them by year-end, which is expected to generate over $2 million in revenue[64]. Orders and Contracts - ClearSign Technologies received a new order for engineering services from a super major customer for the retrofit of two process heaters, involving a total of 32 ClearSign Core burners[29]. - The company has also secured an order for 36 ClearSign Core burners from an integrated petroleum producer for installation at the US Gold Coast refinery, emphasizing the importance of NOx emissions in the project[38][40]. - ClearSign has received purchase orders from three out of five to seven global super-majors, indicating strong market penetration[44]. - The M-series product line, particularly the M25 burner, is designed for retrofit applications and has received positive reception, with multiple proposals still in the pipeline[48]. - The company has received its fourth order for a flare system, with potential revenue from this order estimated between $150,000 to $500,000, depending on the components supplied[55]. Marketing and Promotion - ClearSign is leveraging social media for promotion and client engagement, indicating a strategic shift towards enhanced communication[82]. - The company is experiencing increased interest in its products, particularly the M-Series and flare products, which are expected to provide quicker revenue recognition compared to larger process burner orders[68].