TULSA,
Okla., Aug. 31, 2023 /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 second
quarter ended June 30, 2023.
"Our order flow increased in the second quarter, both in process
burners and our boiler burner line," said Jim Deller, Ph.D., Chief Executive Officer of
ClearSign. "The execution of these initial sales, for both boiler
burners and process burners, will set the stage for our future
growth. Getting these installations in the field will give us
a larger installed base and reference list going forward.
Additionally, the processing and execution of these commercial
orders allows us to fine tune our processes with suppliers and
collaborative partners in order to be prepared for future larger
scale product deployments. We are very encouraged by the engagement
we are receiving in the industry regarding our technologies and we
believe that our recently announced Phase 2 government grant award
through the Small Business Innovative Research (SBIR) program with
the Department of Energy (DOE), which provides direct support for
the engineering and commercialization of our 100% hydrogen burner
products, will further enhance our visibility in the industry,"
concluded Dr. Deller.
Recent strategic and operational highlights during and
subsequent to the end of the second quarter 2023 include:
Completed Successful Phase 1 Testing of Ultra-Low NOx 100%
Hydrogen Burner and Awarded Phase 2 SBIR Grant for $1.65M: With this completion of the Phase 1
work, the Company submitted a follow-up proposal with testing data
and documented industry support to continue the development work
with a Phase 2 grant. Subsequently, the Company was awarded a Phase
2 government grant through the SBIR program with the DOE to further
the development and commercialization of a ClearSign Core™ Ultra
Low NOx burner fueled with 100% hydrogen.
Received Engineering Order and Follow on order for Two Multi
Burner Heaters from a California Refinery: The order is
for two separate heaters and for a total of 13 burners. This
is from an early customer who has ongoing experience with the
operation and performance of ClearSign burner technology. The
supply of ClearSign's technology is to help the refinery adhere to
the strict emissions limits implemented to support California's clean air goals.
Entered the Texas Gulf Coast Market with Burner Sale to
Global Chemical Company: The Company announced the first sale
of its fire tube boiler burner technology into a non-boiler heater
of a global chemicals company in the Texas market. The boiler burner will be
installed into a process heater, which is replacing an existing
heater and SCR (Selective Catalytic Reduction) system. Both heater
and burner were sold by Tulsa Heaters Midstream, a fast growing and
innovative heater provider based in Tulsa, Oklahoma. The burner is scheduled to be
installed in the third quarter of 2023.
The Company recognized approximately $150
thousand in revenue during the three months ended
June 30, 2023, as compared to zero
revenue for the same period of 2022.
Cash, cash equivalents and short-term investments were
approximately $8.5 million as of
June 30, 2023.
There were 38,562,086 shares of the Company's common stock
issued and outstanding as of June 30,
2023.
The Company will be hosting a call at 5:00 PM
ET today. Investors interested in participating on the live
call can dial 1-866-372-4653 within the U.S. or 1-412-902-4217 from
abroad. Investors can also access the call online through a
listen-only webcast at
https://app.webinar.net/dWz7ApJRlBv 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 1-877-344-7529 within
the U.S. or 1-412-317-0088 from abroad. Conference ID #4731576. 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 our control, that could cause actual results to materially
differ from such statements. Such risks, uncertainties and other
factors include, but are not limited to our ability to successfully
deliver, install, and meet the performance obligations of our
burners in the California and Texas market, our ability to further expand
the sale of ultra-low NOx process and boiler burners, our ability
to successfully perform engineering orders, our ability to
successfully develop our 100% hydrogen burner with the Phase 2
grant funding, general business and economic conditions, the
performance of management and our employees, our ability to obtain
financing, competition, whether our technology will be accepted and
adopted and other factors identified in our Annual Report on Form
10-K filed with the Securities and Exchange Commission and
available at www.sec.gov and other factors that are detailed
in our periodic and current reports available for review at
www.sec.gov. Furthermore, we operate 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. We disclaim any intention to, and,
except as may be required by law, undertake no obligation to,
update or revise forward-looking statements to reflect events or
circumstances that subsequently occur or of which we 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)
|
|
June 30,
|
|
December 31,
|
|
|
2023
|
|
2022
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
7,600
|
|
$
|
6,451
|
Short-term
held-to-maturity investments
|
|
|
931
|
|
|
2,606
|
Accounts receivable,
net
|
|
|
39
|
|
|
79
|
Contract
assets
|
|
|
3
|
|
|
20
|
Prepaid expenses and
other assets
|
|
|
575
|
|
|
577
|
Total current
assets
|
|
|
9,148
|
|
|
9,733
|
|
|
|
|
|
|
|
Fixed assets,
net
|
|
|
478
|
|
|
384
|
Patents and other
intangible assets, net
|
|
|
762
|
|
|
798
|
Other assets
|
|
|
10
|
|
|
10
|
|
|
|
|
|
|
|
Total
Assets
|
|
$
|
10,398
|
|
$
|
10,925
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
$
|
428
|
|
$
|
296
|
Current portion of
lease liabilities
|
|
|
95
|
|
|
133
|
Accrued compensation
and related taxes
|
|
|
413
|
|
|
471
|
Contract
liabilities
|
|
|
2,105
|
|
|
247
|
Total current
liabilities
|
|
|
3,041
|
|
|
1,147
|
Long Term
Liabilities:
|
|
|
|
|
|
|
Long term lease
liabilities
|
|
|
199
|
|
|
226
|
Total
liabilities
|
|
|
3,240
|
|
|
1,373
|
|
|
|
|
|
|
|
Commitments and
contingencies (Note 7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
Equity:
|
|
|
|
|
|
|
Preferred
stock, $0.0001 par value, zero shares issued and
outstanding
|
|
|
—
|
|
|
—
|
Common stock,
$0.0001 par value, 38,562,086 and 38,023,701 shares
issued
and outstanding at
June 30, 2023 and December 31, 2022, respectively
|
|
|
4
|
|
|
4
|
Additional paid-in
capital
|
|
|
98,604
|
|
|
98,079
|
Accumulated other
comprehensive loss
|
|
|
(20)
|
|
|
(8)
|
Accumulated
deficit
|
|
|
(91,430)
|
|
|
(88,523)
|
Total
equity
|
|
|
7,158
|
|
|
9,552
|
|
|
|
|
|
|
|
Total Liabilities and
Equity
|
|
$
|
10,398
|
|
$
|
10,925
|
|
The accompanying notes
are an integral part of these unaudited condensed consolidated
financial statements.
|
ClearSign
Technologies Corporation and Subsidiary
Condensed
Consolidated Statements of Operations
(Unaudited)
|
|
(in thousands, except
share and per share data)
|
|
For the Three Months Ended
|
|
For the Six Months Ended
|
|
|
June 30,
|
|
June 30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
150
|
|
$
|
—
|
|
$
|
1,044
|
|
$
|
—
|
Cost of goods
sold
|
|
|
21
|
|
|
—
|
|
|
809
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
129
|
|
|
—
|
|
|
235
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
|
187
|
|
|
188
|
|
|
347
|
|
|
296
|
General and
administrative
|
|
|
1,571
|
|
|
1,472
|
|
|
3,221
|
|
|
2,881
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
|
1,758
|
|
|
1,660
|
|
|
3,568
|
|
|
3,177
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
|
(1,629)
|
|
|
(1,660)
|
|
|
(3,333)
|
|
|
(3,177)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
|
|
|
94
|
|
|
—
|
|
|
152
|
|
|
—
|
Government
assistance
|
|
|
14
|
|
|
—
|
|
|
107
|
|
|
—
|
Gain from sale of
assets
|
|
|
—
|
|
|
14
|
|
|
5
|
|
|
37
|
Other income,
net
|
|
|
43
|
|
|
8
|
|
|
162
|
|
|
12
|
Total other
income
|
|
|
151
|
|
|
22
|
|
|
426
|
|
|
49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
(1,478)
|
|
|
(1,638)
|
|
|
(2,907)
|
|
|
(3,128)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share -
basic and fully diluted
|
|
$
|
(0.04)
|
|
$
|
(0.05)
|
|
$
|
(0.08)
|
|
$
|
(0.09)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of shares outstanding - basic and fully diluted
|
|
|
38,549,810
|
|
|
33,541,408
|
|
|
38,407,053
|
|
|
33,378,054
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive loss
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(1,478)
|
|
$
|
(1,638)
|
|
$
|
(2,907)
|
|
$
|
(3,128)
|
Foreign-exchange
translation adjustments
|
|
|
(12)
|
|
|
(10)
|
|
|
(12)
|
|
|
(10)
|
Comprehensive
loss
|
|
$
|
(1,490)
|
|
$
|
(1,648)
|
|
$
|
(2,919)
|
|
$
|
(3,138)
|
|
The accompanying notes
are an integral part of these unaudited condensed consolidated
financial statements.
|
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SOURCE ClearSign Technologies Corporation