ClearSign Technologies (US:CLIR)2022-09-02 01:36Financial Data and Key Metrics Changes - The company recognized no revenues during Q2 2022, consistent with the same period in 2021 [8] - Net cash used in operations for Q2 2022 was approximately $1.8 million, a decrease from approximately $2.2 million in Q2 2021 [8] - For the six months ended June 30, net losses decreased by approximately $1.2 million compared to the same period in 2021, primarily due to reduced research and development costs [9][10] - Cash balance as of June 30, 2022, was approximately $9.7 million, which does not reflect subsequent investments [15] Business Line Data and Key Metrics Changes - Research and development costs decreased due to lower human capital and product development costs, with a noted decrease of $1 million in R&D for the six months ended June 30, 2022 [10][74] - The company has a backlog of scheduled customer visits and proposals for alternative solutions, indicating growing recognition in the market [21] - Two major projects are in progress: a 16-unit project for a Midwest refiner and a 20-burner project for a California refinery, with significant progress reported [22][24] Market Data and Key Metrics Changes - The company is experiencing increased inquiries from potential customers for process burners, indicating a growing market presence [20][21] - In China, new regions are adopting strict low NOx emissions requirements, which is expected to increase demand for ultra-low NOx firetube boiler burners [46] Company Strategy and Development Direction - The company is focusing on commercializing products and supporting customers, shifting from R&D to sales efforts [72] - The company is developing technology to operate with hydrogen fuel, recognizing the industry's transition towards hydrogen capabilities [60][61] - The strategy includes deploying rental boilers fitted with ClearSign technology to provide customers with real-life operating experience [40][58] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the financial position and working capital available to carry through 2024 without additional cash sources [16] - The company anticipates positive sales news from the growing proposal funnel in the process burner business [47] - Management acknowledged the challenges in the California boiler burner market but remains optimistic about long-term opportunities [38] Other Important Information - The company received a government grant through the SBIR program with the Department of Energy, focusing on developing burner technology for hydrogen fuels [29][32] - A new director, Gary DiElsi, was appointed in August, bringing extensive industry experience [50] Q&A Session Summary Question: Clarification on the California multi-heater project testing - Management explained that the testing involves fabricating and testing four burners to ensure they meet customer specifications before proceeding with the remaining units [54][55] Question: Visibility around boiler burners sales process - Management confirmed ongoing discussions with customers about rental boilers fitted with ClearSign burners, viewing it as a growing opportunity [58] Question: Hydrogen market participation timeline - Management indicated that while the industry is transitioning to hydrogen, they are developing technology to accommodate future hydrogen fuel needs [60][61] Question: SCR installations in California - Management acknowledged the lack of purchase orders for SCR technology but recognized its known advantages despite being less efficient [63] Question: Impact of trade shows on customer exposure - Management noted that participation in trade shows has led to ongoing conversations with installation companies and boiler manufacturers, expanding outreach [64][65] Question: New heater market opportunities - Management confirmed that inquiries received are primarily for new installations, indicating a broader market beyond just refineries [66][69]