Financial Data and Key Metrics Changes - For Q4 2024, ClearSign recognized approximately 1.3 million in Q4 2023, attributed to reduced business activity [7][8] - Full year 2024 revenues reached approximately 2.4 million in 2023, driven by increased business activity [9][10] - Gross profit margin for 2024 was approximately 31.1%, down from 34% in 2023, due to higher startup costs associated with a new boiler burner installation [11][12] - Net cash used in operations for 2024 was approximately 3.2 million in 2023, influenced by a decrease in contract liabilities [12][13] - The net loss for 2024 was approximately 100,000 from 2023, partly due to a one-time expense related to the China entity [13][14] Business Line Data and Key Metrics Changes - The revenue increase in 2024 was primarily from the shipment of 25 process burners to California refineries, compared to 8 process burners in 2023 [9][11] - The company shipped two boiler burners in Q4 2024, down from eight process burners in Q4 2023, indicating a shift in product focus [8][9] Market Data and Key Metrics Changes - The company is experiencing a slow market in the boiler burner sector, particularly in California, but has seen an uptick in inquiries recently [71][72] - The midstream market is identified as a significant opportunity, with successful installations leading to further orders [46][56] Company Strategy and Development Direction - ClearSign aims to diversify its product lines and expand its market reach, leveraging partnerships with companies like Zeeco and California Boiler [26][28] - The company is focusing on developing technology applicable to larger markets while maintaining its core competencies [29][32] - The introduction of the M-Series burner is expected to enhance market opportunities, particularly in the midstream sector [44][60] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting the importance of sales leads from partnerships and the potential for growth in the midstream industry [115][116] - The company is also exploring opportunities in the flaring market and sensor technology, which could provide additional revenue streams [90][106] Other Important Information - ClearSign received a letter from NASDAQ regarding non-compliance with minimum bid price requirements, with a 180-day cure period to regain compliance [14] - As of December 31, 2024, the company had approximately $14 million in cash and cash equivalents [15] Q&A Session Summary Question: What led to the record revenue year? - Management noted that the revenue increase was primarily due to a large order of refinery burners shipped to Los Angeles and ongoing customer relationships [20][21] Question: What are the high-level themes and strategies for 2025 and 2026? - The focus is on diversifying product lines, expanding sales channels, and leveraging partnerships to enhance market presence [29][32] Question: What is the current status of the process burner pipeline? - The company has 20 burners scheduled for installation in California and a four-burner order for a Fortune 500 chemical company in Texas [66][68] Question: What is the outlook for the boiler burner market? - The market has been slow, but recent inquiries suggest a potential uptick in activity [71][72] Question: How is the company addressing tariff impacts? - Increased pricing from vendors due to tariffs is being managed through proposal adjustments [111][112] Question: What is the status of the hydrogen burner project? - The hydrogen burner is designed to be fuel-flexible, suitable for various gas blends, ensuring its utility regardless of hydrogen project timelines [135][136]
ClearSign Technologies (CLIR) - 2024 Q4 - Earnings Call Transcript