ClearSign Technologies (US:CLIR)2023-09-01 01:52Financial Data and Key Metrics Changes - The company reported revenues of approximately $1 million for the six months ended June 30, 2023, marking the highest reported revenues in its history for any given year or six-month period [3] - For the three months ended June 30, 2023, revenues were $150,000 compared to zero revenues for the same period in 2022 [26] - The net loss for the three months ended June 30, 2023, was approximately $1.5 million, a modest improvement from approximately $1.6 million for the same period in 2022 [28] - The net cash provided by operations for the three months ended June 30, 2023, was approximately $46,000, compared to cash used in the same period last year [27] Business Line Data and Key Metrics Changes - The revenues were predominantly generated from the process burner product line, with significant engineering feasibility studies contributing to the revenue [3] - The company has completed the design and fabrication of three boiler burners, with two in California and one in Texas, marking significant progress in establishing its technology in the market [30][31] Market Data and Key Metrics Changes - The company anticipates that the Texas Gulf Coast region will be the next large market for its products, following its activities in California [37] - In China, the company is working with Shuangliang to promote its technology in regions with new low NOx requirements, indicating a strategic focus on expanding its market presence [40][52] Company Strategy and Development Direction - The company aims to develop a full range of burners to reduce NOx emissions, which is seen as essential for the adoption of hydrogen fuel in industrial heating [32] - The strategic objective includes achieving an installed base and operational time for customers to recognize the efficiency of its NOx controlling solutions [59] - The company is focused on scaling its operations and enhancing its marketing strategies to leverage early adopter opportunities for its new hydrogen-focused burner technology [102] Management's Comments on Operating Environment and Future Outlook - Management highlighted that the second quarter of 2023 was the first cash-positive quarter, excluding capital raises, indicating commercial progress [60] - The management expressed optimism about the early boiler burner orders and installations, viewing them as catalysts for additional orders and increased market awareness [115] - The company is actively pursuing opportunities in China, anticipating certification of its products and engaging with local government officials regarding new air quality standards [61][70] Other Important Information - The company received a Phase II SBIR Grant from the Department of Energy for the development of a 100% hydrogen-capable ultra-low-NOx burner [108] - The company has a collaborative partnership with Narion, which is developing applications of its sensing technology outside of the combustion industry [110] Q&A Session Summary Question: Are the two California burners and the Texas burner expected to be delivered during 2023? - The three orders in process are single burner orders, but there are opportunities for larger multi-burner inquiries in the future [44] Question: What is the involvement of ClearSign in the Narion project? - The grant received by Narion will fund their research and development, with no cash outlay from ClearSign's side, but it will result in a licensing arrangement that provides revenue to ClearSign [47] Question: Is there a possibility of reporting a sales order backlog? - Management indicated that it is challenging to provide an expected number for future sales expectations due to market factors, but they are encouraged by the current order flow [81]