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]

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]