Release Date: August 21, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- ClearSign Technologies Corp (CLIR, Financial) added approximately $13 million in cash to its balance sheet in Q2 2024, resulting in a total of $16 million in cash and cash equivalents.
- The company received significant follow-on orders from Kern Energy, indicating strong customer satisfaction and repeat business.
- ClearSign Technologies Corp (CLIR) secured an engineering order for a project involving 26 burners for a Fortune 500 global chemical company in Texas, highlighting its expanding market reach.
- The company successfully demonstrated its hydrogen burner technology, which can operate with both current fuel gases and 100% hydrogen, attracting significant interest from industry stakeholders.
- ClearSign Technologies Corp (CLIR) is actively engaged in regulatory discussions in Texas and Colorado, positioning itself to benefit from upcoming stricter emissions regulations.
Negative Points
- ClearSign Technologies Corp (CLIR) experienced a significant decrease in revenues, from $150,000 in Q2 2023 to $45,000 in Q2 2024.
- The company reported a net loss of approximately $1.9 million for Q2 2024, an increase of $400,000 compared to the same period in 2023.
- Net cash used in operations was approximately $1.5 million in Q2 2024, compared to a generation of $50,000 in Q2 2023.
- The resignation of a Board member led to a one-time non-cash event costing $260,000, impacting financial results.
- Revenue flow is expected to remain 'lumpy' due to the nature of contractual milestones and project timelines, potentially causing future financial volatility.
Q & A Highlights
Q: Could you give us a dollar sense of how much you have in hand as orders that you will be shipping out over the next few quarters, and what is in the pipeline?
A: We estimate the sales price or revenue per burner is $100,000 per item. For process burners, we have 20 burners expected to ship to California in September and 26 burners for a chemical facility in Texas. Additionally, there are two heaters for Kern Energy and several boiler burner and hot oil heater burners in progress. We are also seeing a lot of interest in the hot oil heater line and ongoing relationships with companies like Birwelco.
Q: Are you looking to add more people given the increased activity in business development and deployments?
A: We currently have one open job posting for an engineer to assist with our test furnace and field installations. We will monitor the load on our project management and engineering teams and may add more staff as needed. We aim to balance our workforce to ensure we have the right people to execute orders and maintain focus on sales activities.
Q: How are the demonstrations with Zeeco helping improve your sales cycle?
A: The purpose of these demonstrations is to show our technology to the industry. The recent demonstration included three burners firing in a test furnace and was well attended by senior technical representatives from major refineries and chemical companies. The engagement was high, and we had active conversations with customers about how our technology could help them. While there are no immediate opportunities, we are confident that these demonstrations will lead to future engagements and opportunities.
Q: Can you talk about the relationships with heater manufacturers and how many of these exist?
A: Heater manufacturers and engineering companies play a significant role in our industry. We have worked with about half a dozen heater companies to date. There are probably 10 to 15 prominent heater and heater engineering companies in the US market, but the number could be higher if we include smaller bespoke companies. These relationships act as sales channels for us, and as we sell products, more heater companies become aware of our technology.
Q: Can you give more color on the event in California next week to unveil independent data?
A: The event is part of the California GET program focused on reducing NOx emissions and increasing burner efficiency. The program was run by GET and funded by them, with independent engineers overseeing the testing. The demonstration will showcase our boiler burner technology, and we expect around 80 attendees, including global refinery engineers. The results, which will be released in early September, are expected to show significant efficiency and NOx reduction.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
