TULSA,
Okla., May 23, 2024 /PRNewswire/ -- ClearSign
Technologies Corporation (Nasdaq: CLIR) ("ClearSign" or the
"Company"), an emerging leader in industrial combustion and sensing
technologies that improve energy, operational efficiency and safety
while dramatically reducing emissions, today provides an update on
operations for the quarter ended March 31,
2024.
"We ended 2023 carrying some commercial momentum and that has
carried into the current year," said Jim
Deller, Ph.D., Chief Executive Officer of ClearSign. "We
have delivered and started significant process burner
installations, some of which have resulted in additional orders, as
seen with Kern Energy. In addition, we believe that having the
performance of our process burner technology assessed to establish
new California Best Available Control Technology (BACT) emissions
thresholds, that were finalized in February, is another meaningful
validating factor for our technology. We now also have operational
boiler burner installations providing references in that product
line, and we received our first order from a multi-boiler burner
commitment in February. We also expect that the upcoming 1200hp
2.5ppm NOx boiler burner startup for a recycling customer
California will be a significant
industry event. In general, we believe customer awareness of, and
confidence in our products is building, and we look forward to
increased acceptance and sales of our technologies," concluded
Dr. Deller.
Recent strategic and operational highlights during, and
subsequent to, the end of the first quarter 2024 include:
Company Reported Record First Quarter Revenue: The
Company reported First Quarter Revenue of $1.1 million compared to $900 thousand for the first quarter of
2023.
Announced Successful Start-Up of Second Multi-Burner Heater
at Kern Energy: The five-burner heater had a successful
start-up with independent source testing confirming emissions
levels below guarantee. This follows the successful installation
and start-up of the first eight-burner heater in January.
Received Orders for the Engineering of Burners for Two
Additional Heaters at Kern Energy: ClearSign received two
additional purchase orders to complete the detailed engineering of
burners for the retrofitting of two more process heaters in the
California refinery for a total of four burners. These
orders follow the recent successful installations of two multi
burner heater orders at Kern Energy's refinery site. Like previous
orders, this initial engineering is anticipated to be followed by
purchase orders for the manufacture and supply of burners.
Received Best Available Control Technology (BACT)
Determinations for Single and Multi-Process Burner
Heaters: ClearSign's process burner performance has been
assessed as part of the South Coast Air Quality Management District
of California (SCAQMD) periodic public participation
process to enhance existing BACT determinations and its results
have contributed to the establishment of new BACT emissions limits
for both single and multi-burner configurations.
Received First Multi-Boiler Burner Purchase: Our partner,
California Boiler, received a letter of intent for four boilers to
be fitted with the ClearSign Core™ (Rogue) burners as well as the
purchase order for the first boiler of the series. California
Boiler has in turn placed their order with ClearSign for the first
burner.
Cash, cash equivalents and short-term investments were
approximately $4.6 million as of
March 31, 2024. Subsequent to the
quarter, the Company closed an equity offering with net proceeds of
approximately $8.7 including
the overallotment exercised in full on May 10, 2024.
There were 39,043,023 shares of the Company's common stock
issued and outstanding as of March 31,
2024.
The Company will be hosting a call at 5:00 PM
ET today. Investors interested in participating on the live
call can dial 1-800-836-8184 within the U.S. or 1-646-357-8785 from
abroad. Investors can also access the call online through a
listen-only webcast
at https://app.webinar.net/RQPvEXxEdOm or on the
investor relations section of the Company's website
at http://ir.clearsign.com/overview.
The webcast will be archived on the Company's investor relations
website for at least 90 days and a telephonic playback of the
conference call will be available by calling 1-888-660-6345 within
the U.S. or 1-646-517-4150 from abroad. Conference ID #33881. The
telephonic playback will be available for 7 days after the
conference call.
About ClearSign Technologies Corporation
ClearSign Technologies Corporation designs and develops products
and technologies for the purpose of improving key performance
characteristics of industrial and commercial systems,
including operational performance, energy efficiency, emission
reduction, safety and overall cost-effectiveness. Our patented
technologies, embedded in established OEM products as ClearSign
Core™ and ClearSign Eye™ and other sensing configurations,
enhance the performance of combustion systems and fuel safety
systems in a broad range of markets, including the energy (upstream
oil production and down-stream refining), commercial/industrial
boiler, chemical, petrochemical, transport and power industries.
For more information, please
visit www.clearsign.com.
Cautionary note on forward-looking statements
All statements in this press release that are not based on
historical fact are "forward-looking statements." You can find many
(but not all) of these statements by looking for words such as
"approximates," "believes," "hopes," "expects," "anticipates,"
"estimates," "projects," "intends," "plans," "would," "should,"
"could," "may," "will" or other similar expressions. While
management has based any forward-looking statements included in
this press release on its current expectations on the Company's
strategy, plans, intentions, performance, or future occurrences or
results, the information on which such expectations were based may
change. These forward-looking statements rely on a number of
assumptions concerning future events and are subject to a number of
risks, uncertainties and other factors, many of which are outside
of the Company's control, that could cause actual results to
materially differ from such statements. Such risks, uncertainties
and other factors include, but are not limited to, the
Company's ability to successfully deliver, install, and meet the
performance obligations of the Company's burners in
the California and Texas
market, and any other markets the Company may sell products in; the
Company's ability to further expand the sale of ultra-low NOx
process and boiler burners; the Company's ability to successfully
perform engineering orders; the Company's ability to successfully
develop the 100% hydrogen burner with the Phase 2 grant funding;
general business and economic conditions; the performance of
management and the Company's employees; the
Company's ability to obtain financing, when needed; the
Company's ability to compete with competitors; whether the
Company's technology will be accepted and adopted and other
factors identified in the Company's Annual Report on Form 10-K
filed with the U.S. Securities and Exchange Commission and
available at www.sec.gov and other factors that are
detailed in the Company's periodic and current reports
available for review at www.sec.gov. Furthermore, the Company
operates in a competitive environment where new and unanticipated
risks may arise. Accordingly, investors should not place any
reliance on forward-looking statements as a prediction of actual
results. The Company disclaims any intention to, and, except as may
be required by law, undertakes no obligation to, update or revise
forward-looking statements to reflect events or circumstances that
subsequently occur or of which the Company hereafter become
aware.
PART I -
FINANCIAL INFORMATION
|
|
ITEM 1. CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
|
ClearSign Technologies Corporation and
Subsidiary
|
Condensed Consolidated
Balance Sheets
|
(Unaudited)
|
|
|
(in thousands, except
share and per share data)
|
|
March 31,
|
|
December 31,
|
|
|
|
2024
|
|
2023
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
4,624
|
|
$
|
5,684
|
|
Accounts receivable,
net
|
|
|
569
|
|
|
287
|
|
Contract
assets
|
|
|
—
|
|
|
188
|
|
Prepaid expenses and
other assets
|
|
|
349
|
|
|
350
|
|
Total current
assets
|
|
|
5,542
|
|
|
6,509
|
|
|
|
|
|
|
|
|
|
Fixed assets,
net
|
|
|
247
|
|
|
275
|
|
Patents and other
intangible assets, net
|
|
|
831
|
|
|
836
|
|
|
|
|
|
|
|
|
|
Total
Assets
|
|
$
|
6,620
|
|
$
|
7,620
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
$
|
617
|
|
$
|
366
|
|
Current portion of
lease liabilities
|
|
|
66
|
|
|
71
|
|
Accrued compensation
and related taxes
|
|
|
281
|
|
|
703
|
|
Contract
liabilities
|
|
|
1,038
|
|
|
1,116
|
|
Total current
liabilities
|
|
|
2,002
|
|
|
2,256
|
|
Long Term
Liabilities:
|
|
|
|
|
|
|
|
Long term lease
liabilities
|
|
|
157
|
|
|
172
|
|
Total
liabilities
|
|
|
2,159
|
|
|
2,428
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies (Note 8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
Equity:
|
|
|
|
|
|
|
|
Preferred stock,
$0.0001 par value, zero shares issued and outstanding
|
|
|
—
|
|
|
—
|
|
Common stock, $0.0001
par value, 39,043,023 and 38,687,061 shares
issued and outstanding at March 31, 2024 and
December 31, 2023,
respectively
|
|
|
4
|
|
|
4
|
|
Additional paid-in
capital
|
|
|
99,302
|
|
|
98,922
|
|
Accumulated other
comprehensive loss
|
|
|
(20)
|
|
|
(17)
|
|
Accumulated
deficit
|
|
|
(94,825)
|
|
|
(93,717)
|
|
Total
equity
|
|
|
4,461
|
|
|
5,192
|
|
|
|
|
|
|
|
|
|
Total Liabilities and
Equity
|
|
$
|
6,620
|
|
$
|
7,620
|
|
|
The accompanying notes
are an integral part of these unaudited condensed consolidated
financial statements.
|
ClearSign Technologies Corporation and
Subsidiary
|
Condensed
Consolidated Statements of Operations and Comprehensive
Loss
|
(Unaudited)
|
|
(in thousands, except
share and per share data)
|
|
For the Three Months
Ended
|
|
|
|
March 31,
|
|
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
1,102
|
|
$
|
894
|
|
Cost of goods
sold
|
|
|
665
|
|
|
788
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
437
|
|
|
106
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
|
|
281
|
|
|
160
|
|
General and
administrative
|
|
|
1,408
|
|
|
1,650
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
|
1,689
|
|
|
1,810
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
|
(1,252)
|
|
|
(1,704)
|
|
|
|
|
|
|
|
|
|
Other income
|
|
|
|
|
|
|
|
Interest
|
|
|
61
|
|
|
58
|
|
Government
assistance
|
|
|
79
|
|
|
93
|
|
Gain from sale of
assets
|
|
|
—
|
|
|
5
|
|
Other income,
net
|
|
|
4
|
|
|
119
|
|
Total other
income
|
|
|
144
|
|
|
275
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(1,108)
|
|
$
|
(1,429)
|
|
|
|
|
|
|
|
|
|
Net loss per share -
basic and fully diluted
|
|
$
|
(0.03)
|
|
$
|
(0.04)
|
|
|
|
|
|
|
|
|
|
Weighted average number
of shares outstanding - basic and fully diluted
|
|
|
38,848,098
|
|
|
38,262,710
|
|
|
|
|
|
|
|
|
|
Comprehensive loss
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(1,108)
|
|
$
|
(1,429)
|
|
Foreign-exchange
translation adjustments
|
|
|
(3)
|
|
|
—
|
|
Comprehensive
loss
|
|
$
|
(1,111)
|
|
$
|
(1,429)
|
|
|
The accompanying
notes are an integral part of these unaudited condensed
consolidated financial statements.
|
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SOURCE ClearSign Technologies Corporation