Financial Data and Key Metrics Changes - For Q3 2025, the company 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 [5][6] - The net loss increased by approximately $274,000 compared to the same period in 2024, driven by the decrease in sales volume [7] - Gross margin increased by approximately 6.1 percentage points year-over-year for Q3 2025, reinforcing the long-term strategy to target margins between 40% and 45% [8] - Net cash used in operations for Q3 was approximately $1.8 million, compared to $1.4 million in the same period in 2024 [8] Business Line Data and Key Metrics Changes - Q3 2025 revenue was generated from multiple spare parts orders, a midstream order, a flare order, and engineering services, indicating a diversification strategy adding incremental revenue [6] - The M-series burners are targeted at the gas industry and midstream gas, with significant growth potential in the energy sector, particularly with export LNG [18][19] Market Data and Key Metrics Changes - There has been an uptick in order flow across major product lines, driven by regulatory pressures and increased customer inquiries, particularly in Texas and California [11][12] - The company is seeing increased interest in its products due to ongoing regulatory changes in key markets, which are pushing customers to meet compliance requirements [12][92] Company Strategy and Development Direction - The company aims to expand its market presence by getting more equipment out in the field and building customer trust [11] - The focus is on developing a range of burners capable of operating on various fuel types, including hydrogen, to meet future market demands [88] - The company is also looking to leverage its technology in larger systems projects, moving beyond just burner sales to include comprehensive solutions [62] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting the successful completion of significant projects and the potential for further orders [71] - The company anticipates continued traction in orders for the M-series and flare products, which are expected to fill revenue gaps while larger process burner orders are being developed [78] - Management does not foresee headwinds from federal regulatory changes, particularly regarding NOx emissions, and expects ongoing inquiries related to hydrogen capabilities [81][82] Other Important Information - The company has a strong working capital position, with approximately $10.5 million in cash and cash equivalents as of September 30, 2025 [8] - The relationship with Zeeco is strong, with extensive collaboration on testing and burner fabrication [70] Q&A Session Summary Question: What is the outlook for 2026 expected revenues based on the different types of orders? - Management indicated that while process burner orders are larger and take longer to execute, quicker-turn products like the M-series and flare orders will help fill revenue gaps [77][78] Question: Are there new product opportunities under development? - Management confirmed that there is potential for new products, particularly leveraging the technology developed under the SBIR program [80] Question: Is there any risk from federal regulatory changes affecting sales? - Management does not expect headwinds from the EPA regarding NOx emissions and sees ongoing interest in hydrogen capabilities from global clients [81][82] Question: What is the significance of spare parts in revenue? - Spare parts are becoming an increasingly important and consistent revenue stream, expected to grow as more equipment is installed [90][91] Question: What factors are driving increased orders from Texas and the Gulf Coast? - Management noted that while California business remains strong, there is a significant uptick in interest from the Gulf Coast due to regulatory awareness and acceptance in the industry [92]

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 [4][5] - The net loss increased by approximately $1,000,000 compared to Q1 2024, largely attributed to decreased sales volume and $581,000 in legal fees [5][6] - 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] Business Line Data and Key Metrics Changes - The revenue decrease was driven by a shift from process burner shipments to spare parts orders [5] - The company has two significant process burner orders in different production stages, with installations expected in Q3 2025 [26][28] - A new product line, flare burners, has seen increased traction due to regulatory needs, with recent repeat orders from existing customers [13][18] 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 nearly five times higher than last year [31][32] - The company is experiencing increased inquiries and interest in the midstream market, particularly for M1 burners [35] Company Strategy and Development Direction - The company is focusing on diversifying product lines and sales channels, with significant activities in engineering and customer interactions [11][12] - There is a strong emphasis on expanding sales channels through partnerships, such as with Zico, to enhance market reach [29][30] - The company is also exploring opportunities in the boiler burner market and enhancing the ClearSign Eye sensor product line [42][44] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the sales pipeline, noting that inquiries and proposals are increasing, indicating strong future business potential [31][32] - The company is closely monitoring regulatory changes and their impact on the market, particularly regarding NOx emissions and hydrogen technology [69][70] - Management highlighted the importance of upcoming installations and projects as key milestones for growth [56][57] Other Important Information - Legal fees incurred during the quarter were related to a regulatory inquiry and board activities concerning stockholder nominations [6][7] - The company is actively participating in key industry conferences to strengthen relationships and expand its network [38][39] Q&A Session Summary Question: How are Zico salespeople incentivized to sell or market your products? - Management indicated that the incentive system for Zico's sales team is still being worked out, but there is definitely an incentive structure in place [61][62] Question: Can additional sensors be deployed at the same location for ClearSign Eye? - Management confirmed that the refinery has many heaters, presenting thousands of potential opportunities for additional sensors [64] Question: How does the current tariff and regulatory environment affect the business? - Management noted minimal impact from tariffs and emphasized that the main driver remains the need for low NOx emissions, with no projects currently affected by tariff-related issues [66][69] Question: What is the competitive landscape for the increased proposal volume? - Management stated that the proposal growth is a mix of competitive situations and unique offerings, with ClearSign being recognized as a credible alternative to traditional solutions [78][80] Question: How much of the proposal volume is related to Zico? - Management clarified that currently, inquiries are primarily from the ClearSign team, with no contributions from Zico yet, indicating that Zico's impact will be additional to existing business [85]