ClearSign Technologies Corporate Update Call Summary Company Overview - **Company**: ClearSign Technologies (NasdaqCM:CLIR) - **Date of Call**: February 24, 2026 - **Key Speakers**: Jim Deller (CEO), Brent Hinds (CFO) Financial Performance - **Q4 Revenue**: Approximately $3.6 million, marking a record revenue quarter [5][6] - **Full Year Revenue**: $5.2 billion, up approximately 44% year-over-year [5][6] - **3-Year Compound Annual Growth Rate**: Approximately 141% [5] - **Cash Balance at Year-End**: Approximately $9 million, down from over $10 million at Q3 [66][68] Product Lines and Revenue Drivers - **Key Revenue Drivers**: - Major revenue from a 26 burner order to a petrochemical company on the Gulf Coast [8][11] - Additional revenue from flare offerings, engineering services, and spare parts [8] - **New Product Launch**: 2nd generation ClearSign Core burner technology, developed with DOE SBIR funding [9][100] - **Aftermarket Business**: Increasing aftermarket revenue stream as more equipment is deployed [10][102] Market Dynamics and Customer Engagement - **Customer Base**: Engaging with larger clients, including major refiners and petrochemical companies [21][80] - **Pipeline Opportunities**: Estimated inquiries for 200-300 burners across 15-20 heaters [40][42] - **Testing and Development**: Comprehensive testing of a new 100% hydrogen-capable burner completed successfully [19][20] Regulatory Environment - **Impact of Federal Regulation Changes**: No immediate impact from the repeal of the endangerment finding; focus remains on NOx emissions regulations, which are tightening [71][72] Strategic Partnerships - **Zeeco Acquisition of Devco**: Positive outlook on the acquisition, with expectations for increased business and collaboration [56][57] - **Acknowledgments**: Recognition of the DOE SBIR program and Zeeco for their support in product development and manufacturing [104][106] Future Outlook - **Growth Potential**: Anticipated growth in the flare product line and thermal oxidizer systems, with increasing demand for low NOx emissions solutions [62][63][66] - **Market Position**: ClearSign is becoming a recognized entity in the process burner industry, with growing confidence from major clients [48][49] Conclusion - **Overall Sentiment**: The company is experiencing significant growth opportunities, with a strong pipeline and increasing engagement from major industry players. The focus on innovation and regulatory compliance positions ClearSign favorably for future success [101][102].

Financial Data and Key Metrics Changes - For Q1 2025, the company recognized approximately $400,000 in revenues, a decrease from $1,100,000 in the same period in 2024, primarily due to a decrease in process burner shipments [5][6] - The net loss increased by approximately $1,000,000 compared to Q1 2024, attributed to decreased sales volume and $581,000 in legal fees [6][7] - Net cash used in operations was approximately $1,100,000 for Q1 2025, compared to $1,000,000 in Q1 2024, with cash and cash equivalents at approximately $12,800,000 at the end of Q1 2025 [8][9] Business Line Data and Key Metrics Changes - The revenue decrease was largely due to a shift from process burner shipments to spare parts orders [6] - The company has received a large order for 26 process burners for a Texas Gulf Coast chemical company, which is currently in testing [11][12] - A repeat order for flare products has been received, indicating a resurgence in this product line driven by regulatory needs [13][14] Market Data and Key Metrics Changes - The number of quotations provided this year has doubled compared to the same period last year, with the total value of proposals being just under five times that of the previous year [30][31] - The company is seeing increased interest in the midstream market, with repeat inquiries from established customers [35][36] Company Strategy and Development Direction - The company is focusing on diversifying product lines and sales channels, with ongoing efforts to engage with channel partners like Zico [28][36] - There is a strong emphasis on expanding the sales pipeline and leveraging relationships with major refineries to establish ClearSign as a credible alternative for emissions control solutions [40][78] - The company is also exploring opportunities in the hydrogen technology space while maintaining its focus on low NOx requirements [68][69] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong interest in their products and the potential for increased inquiries and orders [30][31] - The company is closely monitoring the impact of tariffs and regulatory changes, noting minimal current effects on their operations [66][68] - Upcoming milestones include the startup of significant process burner projects and the engagement with Zico's sales team [55][56] Other Important Information - Legal fees incurred during the quarter were related to an SEC inquiry and stockholder director nominations, which are nearing completion [7] - The ClearSign Eye sensor product line is expected to see commercial traction in the next three to six months as installations begin [94] Q&A Session Summary Question: How are Zico salespeople incentivized to sell ClearSign products? - Management indicated that the incentive system is still being worked out, and discussions about specific incentives for ClearSign products have not yet occurred [61][62] Question: Can additional sensors be deployed at the same supermajor refinery? - Yes, the supermajor has many heaters with potential opportunities for additional sensors, and they have multiple refineries globally [64][65] Question: How does the current tariff and regulatory environment affect the business? - Management noted minimal impact from tariffs, with ongoing monitoring of regulatory changes, particularly regarding hydrogen technology [66][68] Question: What is the competitive landscape for the increased proposal volume? - The proposal growth includes competitive situations, but ClearSign is increasingly seen as a credible alternative to traditional solutions like SCR [77][78] Question: How much of the proposal volume is related to Zico? - Currently, inquiries are primarily from the ClearSign team, with no contributions from Zico yet, indicating that Zico's impact is still to come [82]