ClearSign Technologies Corp Q4 FY2024 earnings call

• Product line developments: Co-branded Zeeco-ClearSign refinery process burners launched, M-Series midstream burners developed with improved efficiency and low NOx performance, flare burner solutions for cost savings and low NOx emissions, and sensor technology for refinery pilots with reduced maintenance. - Strategic themes: Leveraging sales channels (Zeeco, California Boiler, heater manufacturers), diversifying into midstream, flaring, and sensor segments, and expanding market reach. - Key projects: 20 process burners in California awaiting installation, 4-heater order for a Fortune 500 chemical company, and sensor trials at refineries with positive early results.

For the fourth quarter of 2024, ClearSign recognized approximately $590,000 in revenues, compared to $1.3 million in the same period of 2023. The full year of 2024 saw record revenues of approximately $3.6 million, a 50% increase year-over-year, driven by shipments of 25 process burners to California refineries. Gross profit margin for 2024 was approximately 31.1% vs. 34% in 2023, due to higher startup costs for a large boiler burner installation. Net cash used in operations for 2024 was approximately $4.4 million vs. $3.2 million in 2023. Net loss for 2024 was approximately $5.3 million, an increase of ~$100,000 from 2023, partly due to a $400,000 non-recurring expense for placing the China entity in dormant status.

• Anticipate busy Q3 2025 with process burner installations and start-ups. - Expect sales from diversified product lines including midstream burners, flaring systems, and sensors. - Look for orders resulting from Zeeco collaboration and continued engagement in the midstream industry.

• Risk of failure in field testing and sales of products. - Challenge in expanding the market for products. - Risks detailed in SEC filings, such as non-compliance with NASDAQ's minimum bid price requirements.

Q: What led to the revenue growth in 2024?

A: The full year 2024 revenue growth was predominantly due to the shipment of 25 process burners to two separate California refineries, compared to prior years' revenue drivers like process burners and customer witness tests.

Q: How does the Zeeco agreement benefit ClearSign?

A: The Zeeco agreement provides global reach, access to Zeeco's sales and manufacturing capabilities, and allows ClearSign refinery process burners to become a Zeeco product line, with Zeeco's sales team being educated on ClearSign technology for future business.

Q: Concerns about fuel savings not being emphasized in press releases?

A: Efficiency and fuel savings are highlighted in sales materials and presentations to customers, though press releases primarily focus on investor updates.

Q: What's the timeline for orders resulting from the Zeeco collaboration?

A: It is anticipated that orders resulting from the Zeeco collaboration will start to materialize into 2026, as it involves a slow-moving industry with customers' internal processes.