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]