ClearSign Technologies Corporation Q2 FY2025 earnings call

• Financials: Second quarter 2025 revenues increased to $133,000 from $45,000 in 2024; net loss decreased; R&D expenses reduced.
• Business units: Working on large process burner orders; 20-burner order in CA near startup; 26-burner order for Gulf Coast chemical company through testing.
• Co-branding with Zeeco: Ongoing discussions with Zeeco sales team; pursuing opportunities but no immediate orders yet.
• M-Series product line: Continued interest in midstream; M1 burner installations; development of M25 burner for lower NOx market.
• Flare and systems projects: First flare design in field; second order in computer modeling phase; systems projects potential with $0.5M to $1M ballpark.
• Sensor project: ClearSign Eye sensors nearing shipment; demonstrations in refineries and Zeeco test facility.
• Pipeline: Proposals and projects at 10x value compared to previous year; clients requesting ClearSign technology in new heater proposals.

For the second quarter of 2025, ClearSign Technologies recognized approximately $133,000 in revenues, a year-over-year increase from $45,000 in 2024. This growth was driven by spare parts orders to existing customers and a boiler burner sale. The net loss decreased by approximately $200,000 compared to the same period in 2024, primarily due to a $155,000 reduction in research and development expenses. Net cash used in operations for the second quarter was approximately $511,000, a favorable year-over-year reduction from $1.5 million in 2024, mainly due to customer cash collections. As of June 30, 2025, the company had approximately $12.3 million in cash and cash equivalents with approximately 52.4 million shares of common stock outstanding.

• Upcoming milestones: Start-up of LA heater; delivery of Gulf Coast burners; progression of flare and systems projects; entry into M25 market.
• Market catalysts: Potential changes in Texas regulations affecting refineries; smoothing of tariffs and uncertainty.

• Uncertainty in market timelines for orders.
• Risks related to field testing and sales completion as per SEC filings.

Q: Concern about Board transitions?

A: No, Board reconstituted with new members, no rush to fill open position.

Q: Status of DOE hydrogen burner project?

A: Final stages, burners in manufacture, scheduled for testing in Zeeco test facility.

Q: Zeeco relationship?

A: Zeeco is a global combustion company, partnership extends Zeeco's portfolio, mutually beneficial for both companies.

Q: CFD utilization?

A: Computational Fluid Dynamic modeling used for product development and optimization, aiding in design and testing.

Q: Sequential cash balance?

A: Q1 cash ~$12.8M, Q2 ~$12.3M, difference due to customer cash collections from ongoing work and orders.