Financial Data and Key Metrics Changes - For Q4 2024, ClearSign recognized approximately 1.3 million in Q4 2023, driven by reduced business activity [7][8] - Full year 2024 revenues reached approximately 2.4 million in 2023, primarily due to increased shipments of process burners [9][10] - Gross profit margin for 2024 was approximately 31.1%, down from 34% in 2023, attributed to higher startup costs for a new boiler burner installation [11][12] - Net loss for 2024 was approximately 100,000 from 2023, partly due to a one-time expense related to placing the China entity into dormant status [13] Business Line Data and Key Metrics Changes - In 2024, revenues were mainly generated from the shipment of 25 process burners to California refineries, compared to 8 process burners and 3 customer witness tests 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] 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] - ClearSign is starting to engage in technology discussions for large global refinery heater conversions, indicating a potential expansion in market opportunities [68] 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][32] - The company is focusing on developing technology applicable to larger markets while maintaining its core competencies [29] - A co-branded product line with Zeeco has been launched, enhancing market recognition and sales potential [36][37] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting the potential for sales growth in the midstream industry and the introduction of new product lines [115][116] - The company is also looking to expand its offerings from components to larger systems, which could significantly increase revenue potential [91][92] Other Important Information - ClearSign received a letter from NASDAQ regarding non-compliance with minimum bid price requirements, with a 180-day period to regain compliance [14] - As of December 31, 2024, the company had approximately 14 million in cash and cash equivalents, positioning it well to meet customer demands [15] Q&A Session Summary Question: What is different now in terms of proposals compared to previous years? - Management noted that there are more active sensor quotes and midstream orders, with significant engagement in major refining projects [128][129] Question: Are tariffs affecting the project pipeline? - Management confirmed that tariffs are impacting the cost of goods, particularly stainless steel materials, leading to increased pricing from vendors [111][112] Question: What is the addressable market for the new sensors? - The sensor technology is applicable to every refinery burner globally, with a sales price around 4,000 each, and potential for multiple units per order [102][103]
ClearSign Technologies (CLIR) - 2024 Q4 - Earnings Call Transcript