ClearSign Technologies (CLIR) - 2019 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The net loss for Q3 2019 was $2.1 million, an improvement from a loss of $2.3 million in the same period of 2018 [5] - Cash and investment resources were just over $10 million at the end of Q3 2019, down from $11.6 million at the end of Q2 2019 [5] - Q3 2019 cash burn decreased by $0.25 million compared to Q3 2018, reflecting a focus on cost management [5] - The company expects to have sufficient working capital to last until the end of 2020, assuming no revenues [5] Business Line Data and Key Metrics Changes - The company is transitioning from being perceived as an equipment supplier to a technology provider, particularly in combustion markets [8] - The ClearSign-I sensor technology is being developed for broader applications beyond combustion, indicating a shift in business strategy [7][8] Market Data and Key Metrics Changes - The company is focusing on the Chinese market, where there are approximately 350,000 boilers in emissions non-attainment zones, with potential for significant market penetration [26] - The anticipated formal performance certification of both fire tube and water tube technology by the Chinese government is seen as a critical step for commercialization [26] Company Strategy and Development Direction - The rebranding to ClearSign Technologies Corporation reflects a broader market opportunity and a focus on sensing technology [6][8] - The company is methodically optimizing product lines and developing strategic partnerships to maximize future returns [16] - ClearSign aims to establish its technology as a mainstream solution for emissions compliance and productivity restoration in environmentally-conscious regions [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the ongoing projects with Exxon Mobil and World Oil, indicating potential future orders [19][29] - The company is actively engaging with prospective partners both domestically and internationally, with ongoing discussions about collaborative opportunities [22] - Management is encouraged by the progress of partnerships and the future potential of the technologies being developed [31] Other Important Information - A new website is set to be launched to reflect the company's changes and facilitate customer and partner engagement [15] - The company is focused on maintaining operational efficiency while managing cash reserves to support commercialization goals [30] Q&A Session Summary Question: Will the collaborations with Exxon and World Oil benefit the company? - Management indicated that the World Oil project is well underway and that successful execution could lead to future partnerships [32] Question: What is the timeline for updates regarding the Chinese market? - Management confirmed that the heating season in China starts in mid-November and updates are expected before the end of the heating season [34] Question: Is there ongoing progress with ASHCOR for marketing products? - Management confirmed active collaboration with ASHCOR and California Boiler to promote ClearSign technology [35] Question: What is the status of regulatory progress with the Southern California Air Quality Management District? - Management reported good progress in proving ClearSign technology as best combustion technology through the World Oil project [44] Question: How many burners might be installed in the Beijing district? - Management indicated that early stages of product introduction would be slower, but significant growth is expected once technology is established [58]