ClearSign Technologies Corporation Q1 2023 Earnings Call
Good day and welcome to the clear sign Technologies' first quarter 2023 conference call.
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I would now like to turn the conference over to Matthew Selinger affirmed IR group. Please go ahead.
Good afternoon, and thank you operator, welcome everyone to the clear sight Technologies Corporation first quarter 2023, or three results conference call. During this conference call. The company will make forward looking statements any statement that is not a statement of historical fact is a forward looking statement. This includes remarks about the company's projections expectations play.
<unk> beliefs and prospects.
These statements are based on judgments and analysis as the date of this conference call and are subject to numerous important risks and uncertainties that could cause actual results to differ materially from those described in the forward looking statements the risks and uncertainties associated with the forward looking statements made in this conference call include but are not limited to whether field testing and sales of kitchen products will be.
Successfully completed.
Christian will be successful in expanding the market for its products and other risks that are described clear signs public periodic filings with the SEC, including the discussion in the risk factors section of the 2022 annual report on Form 10-K, and our quarterly report on Form 10-Q for the quarterly period ended March 31 2023. So.
Except as required by law clear sign assumes no responsibility to update these forward looking statements to reflect future events or actual outcomes and does not intend to do so.
So with me on the call today are Jim Deller, Chris Jones, President Chief Executive Officer, and Brent Heinz Christian <unk>, Vice President Finance and controller. So at this point in the call I would like to turn the call over to the VP of finance Brent behind so Brendan.
Please go ahead.
Thank you Matthew.
And thank you to everyone for joining us here today.
Before I begin I would like to note that our financial results on Form 10-Q filed with the SEC on may 15th.
And with that I'd like to give an overview of the financials for the first quarter of 2023.
The company recognized approximately $900000 in revenues during the three months ended March 31, 2023, as compared to zero revenues for the same period in towards Q2.
The majority of our revenues for this quarter were derived from our Berner performance test.
As you may recall.
Discussions are last Investor call, we had successfully executed and customer witness tested the Zika test facility during Q1.
Completing this work satisfy the contractual performance obligation, which allowed us to recognize the associated revenues.
We also had a favorable quarter from a cash perspective, our net cash used in operations for the quarter ended March 31, 'twenty twice, what it was approximately $554000 compared to approximately $1.5 million for the same period in 2022.
That is a year over year decrease of approximately $1 billion.
Now turning our focus from cash to profit and loss our net loss for the three months ended March 31, 2023 was approximately $1 $4 billion, which is relatively consistent when compared to the same quarter in 2022.
We have approximately $8 $5 billion in cash and short term investments as of March 31st 2023.
There were approximately 38 5 million shares of common stock outstanding as of March 31, 2023.
We have confidence in our financial position and balance sheet with our quarter ending balances we have sufficient working capital available to carry into 2024 and that is without cash from any other source.
Nevertheless, we do expect customer cash collections continue in 2020 three as we have said on prior calls customer cash collections will often begin prior to revenue recognition.
With that I would like to turn the call over to our CEO Jim Deller.
Jim.
Thank you Brent for the financial overview.
I, thank everyone for joining us on the call today, and if youre interested in glass line.
It has been only a few weeks since our last update calls, but we do have more developments to share with you.
On today's call I will review our business segments, starting with process badness in the most recent multi feature announcement.
Next I will touch on the developments not boiler burner business and then update you on China and the progress there.
In regards to our process burner segment.
Most of you may have seen our announcement regarding engineering order for two heaters that was released in the middle of April .
April 19th to be specific.
This order is for them in early adulthood about technology in California. So this is a repeat order from an existing customer. It. Additionally, this customer came back to clear sign after initiating an alternative option to install a traditional.
Selective catalytic reduction or SCR, Nox control system and inherent complexities associated with such a system.
As stated in our press release, the engineering purchase order for this project stated that the procurement and fabrication other than as May be added at a later date almost at all.
So there was no expectation or assumption that this is going.
Two progress and develop into more than just the initial engineering phase.
And just yesterday, we were happy to confirm the full project is moving forwards with the receipt of a purchase order for the human and fabrication of business, what the two separate process heaters.
What is notable about this project is that it is the supply of bonus for two different multi burner heaters with a total of 13 beds.
Fuel gas includes hydrogen so this would not.
Can you give us valuable installations, but we believe will validate our technology.
But also installations, demonstrating our capability to control Nox emissions from fuel gases containing concentrations of hydrogen gas.
It is expected to be an increasing need for increasing value in the future.
This illustrates the point that is worth emphasizing in light of the global Decarbonization and environmental Justice.
Initiatives.
Installations, such as this demonstration of the capability of cliffs on technology to control Nox emissions.
To levels sufficient to avoid the capital and operational requirements of S yours.
Achieve single digit Nox levels betting significant concentrations of hydrogen and fuel gas illustrates an important contribution to the ultimate goal of decarbonization.
That is the operation.
With hydrogen fuel gas.
The reduction of greenhouse gas and ground level ozone to the control of Nox emissions to very low levels and by providing clean the local air and eliminating potential emissions of ammonia as our feature of SCR systems also support environmental Justice initiatives.
We very much look forward to completing this project I'm, saying he's been in operation in California.
Now 20 been a southern California project is progressing well.
Note it on our last call. The final witness test went as planned we all fabrication the beds for delivery to our customer.
For those that are interested we have posted a summary version of this test data and report on our website as we believe the data in detail details are informative to specialist from the industry investors and other stakeholders alike.
This can be found on our website on the process better page and our products.
Section labeled test results.
Yeah.
Alternatively, just go to the technical resection and look on the process been in white papers.
We are scheduled to be fully complete with the manufacture and delivery of these banners later this year.
Which will largely complete disorder.
At this time, we do not have confirmation, whether it's the site shutdown during which these patents will be installed will be undertaken in mid 'twenty 'twenty four or perhaps later.
There's a time to give this Greg is dependent on my clients plans and shut down scheduling.
Bear in mind that there are lots of activities included in these refinery shutdowns. So the planning process is complex and dependent on multitude of factors, many of which have little or nothing to do with the place I'm beds.
As mentioned on the last call regardless of the eventual installation timing, we expect to be able to invoice and receive payment upon delivery of the banners by the end of the year.
Small part of the pitch at all the revenue and cash will remain until installation.
A byproduct of this.
Project is that we have the band is used for live with its demonstration at our partners He coast facility.
These were not part of the final production run I will not be included in the shipment to California.
These beds would be kept for demonstration purposes for potential customers and stakeholders.
To that end, we have customer demonstration events planned for the coming months.
These bonus demonstrate nox emissions.
Number is significantly below the five P. P M guarantee and robust performance throughout the operating range.
This is important because in this industry.
While we have presented and promoted our burner technology, but most industry people seeing in person is believing.
Lastly, in our bedroom segment I want to mention a 100% hydrogen low Nox burner development.
On the last call, we mentioned that we had completed this.
The successful testing of this new banner.
The first phase of this project was funded by the department of Energy Grant of $250000.
Data has been submitted for a phase II grant, which is up to $1.6 million over a period of two years.
We expect to learn if this application is approved by the end of July .
This project will extend our successful phase one proof of concept demonstration to create a full range of commercial process spends.
Because we were the only company to have been granted a phase one grant for this high hydrogen fuel burner project. We are optimistic that the phase two ground, but also be awarded to clear side.
The objective of this project is to develop and commercialize a range of business that will enable the control Nox emissions to the levels required to control ground level ozone critically lucid areas.
Combined with the adoption of the new hydrogen economy and use of hydrogen fuel for industrial heating.
The anticipated outcome is to achieve reductions in the industrial emissions of both carbon dioxide and nitrogen oxides.
Currently the available Hodgkin bedding solutions are able to reduce C O T, but the byproduct is high and ox.
Our novel Ben It is expected to enable zero C O two by Bernie pure hydrogen in commercial applications.
Only to create Nox emissions set alone that they compete with S. Yours in a low single digit parts per million range.
We are also already in discussions with potential customers regarding the future deployment and in particular.
And the adult opportunities.
For this new hygiene focused better technology.
On a side note regarding government funding and industry funded grants, we are seeing interest from additional parties regarding a low emissions technologies.
As I have said earlier, we are seeing other opportunities also something that we plan to pursue for ourselves and some that may.
But opportunities in partnership with customers.
Nearly all related to decarbonization, and all pollution reduction and generally have a consideration so classroom social equity or environmental justice, which supports our business and target market as well.
We see these grants as a means to accelerate the development of our technology and also but more important to us to incentivize the critical initial installations necessary to gain the confidence of customers and the regulators.
Or to put it another way we are not a research company, we see the funding grants available as a means to an end rather than an objective at that time.
The grants not only help fund raise the priority of the development all that technology for new applications, but very importantly, because of the way that the grants are structured. They also provide a mechanism to incentivize customers to put new technology when developed into use.
I will now move on to developments in our boiler burner product lines.
On the last call. We went over our initial announced sales Oh boy the buttons, both in California and Texas.
The first spin order was sold.
Our medical business waste services company that was in conjunction with that part of the California boiler into the San Joaquin Valley Air pollution control District of California.
This is on schedule to be installed in the current that is second quarter.
Well, let's face it was significant in the fact that it was at first California in commercial fire tube boiler burner order in and of itself is also very encouraging because the customer came to us for a solution as competing products fail to meet the new district sub five ppm Nox emissions.
Requirements.
California boiler also has a 500 horsepower rental boiler with habit around it that.
That will be deployed in an operation on the site to provide the customer with the steam during the installation of a new bed.
This will provide us an additional reference point and some prolonged one time on that larger installation.
The second order was also sold into the California market.
And it will be part of a recycling plant upgrades that will increase energy efficiency as well as reducing nox for one of its customers nationwide sites.
The second bed boiler been sold into the California market was to a national provider of recycling services, the food production and restaurant industries and will be installed, but a new boiler.
This was sold as a package without partly California boiler in Basam Joaquin Valley Air pollution control District of California.
But in a new boiler all scheduled to be installed in the third quarter of 2023.
We believe the second bone in particular will truly set the bar for boiler business.
This burn is larger and is in the size range, requiring sub 2.5 ppm Nox emissions.
Capability that we believe is unique to place I'm, Ben as well the solutions required the inclusion of an SCR and the associated capital costs and ammonia handling.
That go with it.
As we stated in the press release at the time.
It's been as I first commercial boiler burner sale guaranteeing sub 2.5 ppm Nox specific need develop to enable clients like this to operate in compliance.
With California Central Valley regions, New regulations, and without the need for ammonia and the hazards associated with such.
Potent chemicals.
To help explain why this installation so important the boiler into which other than it used to be installed at from a major international supplier.
Demonstrating I've been working in commercial use and meeting the 2.5 P. P M Nox requirement.
Will position us well to be included as our burner technology in their future boiler sales when low Nox emissions are required.
Playing the scenario of forward hypothetically, if we if we enable this boiler supplier to have a more cost effective and F. C. All free offering we expect that they will have a competitive advantage over the competition, either allowing them to win a disproportionate share of the opportunities which will be good for us we're forcing other boarder Manny.
Faxes to follow suit and also class on coal business, which will obviously also be good for us.
The third point of sale was unique in the fact that he is our first application of our boiler burner technology into a non boiler heater and very importantly, I have to say I will tell you refinery heater manufacturer.
That included I'm doing it as they chosen solution to meet.
The customers needs.
It was our first sale into Texas, where after California, We anticipate the Texas Gulf Coast region will be the next large market for us.
Lastly, the sale is also the first to this global chemicals company and the first into the industrial chemical sector.
The manufacturer of all of these benefits is underway and on schedule.
We are very optimistic of getting these installations up and running will provide a great catalyst for others.
These will also provide a benchmark for the air districts in California, and the rest of the United States.
Expect these installations to provide a reference as they consider modifications and updates to the clean air regulations.
When talking about our asset light strategy heater boiler manufacturers are a prominent channel to market for better equipment. That's been a part almost everything they sell is.
Its gratifying that we are establishing relationships and trust with some of these manufacturers.
As we have said before we are very encouraged by the early boiler burner orders in multiple markets. This year.
We're also encouraged by a list of outstanding proposals I look forward to adding to this list.
Turning to China.
Our president of Asia money, when and as is over in China as we speak.
Mr. Menendez arrived in China last week and hit the ground running so I do have some updates to give and expect to have further news in the near future, but regarding progress and anticipated timelines.
His primary objective is to get the 500 horsepower <unk> boiler burners installed commissioned and then government certified.
500 horsepower boiler size is a top priority as we along with strongly on believes a day they readily addressable market in the region of Shenzhen, where the government has recently rolled out new strikes Nox emission requirements.
Shenzhen has a population in the region of 18 to 20 million people and is one of China's richest cities if not the richest after Shanghai and Beijing.
In addition to that the Nox regulations there.
We will now be the most stringent in China.
A trip as planned.
Joining me without Polish wrongly on to that region to promote a joint capabilities and unique offering to both customers in the area and also the local government officials responsible for administering the new quality standards.
Once those are complete and government benefits vacation is in hand, we expect to see somebody say I was and I anticipate that we will be able to have some initial orders, resulting in deployments of our technology and our integrated Paul about a package from a thumbnail partnership in China in 2023 and continuing in 2024.
Sure.
To illustrate the pace of environmental regulatory developments in China High Bay Province, which is the large problems next of Beijing.
It just rolled out a new emission requirement requiring less than 10 P. P M Knoxville all boilers.
We are also planning to engage with customers and government officials in that region.
Similar to Shenzhen in the near future.
We recently participated in the I S H, China and C. I H exhibition held may 11th to May 13th waiting that.
Central customers impossible collaborators that's fine.
The I S. H event had a dedicated energy sections focused specifically on industrial clean energy.
Our strategic Alliance partners strong young group had an impressive booth at that event.
Before ending this update when that China progress I want to draw your attention to the level of engagement investment being made by our partner swung down in China.
Those of you who follow us on Linkedin will have seen yes.
Yesterday pictures of the 500 horsepower boiler Shuang Leon have built in a high pressure gas line that they have got permitted under stored along with a new water line to enable and to demonstrate a 500 horsepower boiler burner for certification.
They have made significant other investments also.
Including facilitating the certification about 125 horsepower boiler bed.
We have jointly made efforts to keep this relationship strong throughout for separation and slowdown due to COVID-19.
See such material evidence of the strength of this relationship and its indication of the magnitude of the market potential in China, It would be a sharing.
Looking forward to the rest of the year 2023.
We will proceed with the manufacturer of a large California refinery order following a successful customer demonstration early this year.
This will also deliver significant revenue and gross margin.
We will complete the production demonstration testing all goodness for the most recent two either order for a client site in California.
Followed by the manufacturer and supply of the beds.
Installation will be in phases, starting in early 'twenty 'twenty four.
You'll continue to see increased promotion of our process business and we have plenty to hold industry demonstrations of the test facility about partner Zico. This summer.
We are also optimistic about our prospects for follow on Hudson Berner development Grant and believe we are well positioned for further grants from a variety of sources to aid and accelerate adoption of our hydrogen compatible technology.
Following our recent chemical company order, we look forward to increasing business in Texas and also through heater companies.
Power boiler burner business, we will deliver our first commercial orders and look forward to having those units in operation in California and Texas.
We expect to build on this an increased level of inquiries that we are seeing to keep momentum in California.
And look to expand that business in new markets like Texas.
Particularly following the recent agreement between California boiler on Gulf Coast Boy Who's based in that region.
In China, we look to progress our plans with strongly on including vendor certifications and winning and delivering our first orders under that collaboration.
One subtle change you should expect to see as we transition to having commercial deployments of both our process. Ben is in boiler burners in service is an increase in promotional activities.
Two examples include.
The full scale demonstration Ben as I mentioned during our last call.
This week, we have a team and a full scale process been on display at the American petroleum refining and equipment standards meeting in Seattle.
A second team with a full size demonstration fire tube boiler burner at the Texas Environmental trade Fat in conference, where we're going.
Just by the Texas Commission on environmental quality in Austin.
With that I'd like to open up the call for questions. Please operator.
We will now begin the question answer session.
To ask a question you May Press Star then one on your Touchtone phone.
If you are using a speakerphone please pick up your handset before pressing the keys.
If at any time. Your question has been addressed and you would like to withdraw your question. Please press Star then two.
At this time, we will pause momentarily to assemble our roster.
Yeah.
The first question comes from Amit Dayal with H C. Wainwright. Please go ahead.
Thank you good afternoon, everyone.
Congrats on all the progress Canaries good to see you.
Harrison our revenues starting to come through.
Hello.
Could you share maybe you know in dollar amounts what the pipeline looks like for you at this point.
I can give some.
Okay.
Submit we would not.
Uh huh.
The decision to give dollar amounts.
<unk> tried to give them the tools to allow I'd want to construct a a good understanding.
All of the status of the company there.
No just just for having a lot of them I'm sure that maybe some people new to the company all on the line up that good to average proxy for the sales force about that is in the region of $100000 of banner.
So the process been orders.
Hey, Ben design, but also have some accompanying engineering and testing.
The the good round number for that will be about $250000.
So we do announce the orders that we get and.
Where we can we will include the number of bands included in that order.
Now that we do have have revenues being.
Our reported and our quarterly reports you also have a means to measure the revenue is being reported swaps the pipeline that will be the difference between the value of the oldest one.
And the revenue reported.
I know that's not the exact amount, but I hope.
Hopefully that gives everyone the tools to at least keep gauge on the well.
That's in progress at the company and a good understanding of what to expect in the future.
Thank you for that and then just maybe adjacent to that sequentially.
Sequentially as you start delivering against some of the these desirable should we expect a sequential improvements in your revenues through 2023 or you know will win.
Will it be a little lumpy I guess, depending on how you deliver the.
Customers.
Yeah, Yeah. Good question I mean, I think it's.
You know we all.
In the no I really believe we are in the commercial phase of this company I think we've said that but it's also.
Early stages so.
But the orders that we have a damage to depreciate they all significant orders.
But also there.
Oh.
They are going to result in lumpy revenue.
Its usual phase.
So I think what's more meaningful looking forwards is as we get these orders out and installed and operational in the customer sites.
So that they are providing.
Evidence from reinsurance to those customers and also to the peers and the other companies around them.
We expect that that is going to reduce the reservations that they may have of adopting out to our technology.
We really believe that the value of the technology is strong we've not seen a huge pickup to date because of all the reservations that customers have and we've always said getting these first orders out.
Well the first thing I was going to be the most difficult.
With these orders now in place going out into commercial operation.
It may not have a lot of impact on revenues in 2020 three that's quite short short too, but I think it is meaningful to look at the.
Longer term projection and the meaningfulness all these orders that we have having built these fish could walk first commercial orders.
And the effect that we anticipate that we'll have all on our sales pipeline going forwards.
Okay. Thank you.
Maybe just last one for me was just on the lines of those fields related comments.
You.
It was a commercialization efforts grew and as you get traction.
How are you thinking about sort of organizing your sales.
Sales force and your sales efforts.
Are you seeing at least in the near term going to be relying on some of your partners to help you and engage with customers et cetera or are you slowly trying to build.
And internal team as well.
Yeah. Good question, but it's you know, we've we set out with that what we'd call it an asset light strategy.
From the time that I joined the company back in 2019, the intention there was to enable us to.
Leverage the technology that we have.
But also to be as judiciously as we can with the <unk>.
Capital expenditures are basically our investors' money.
As part of that strategy, we all working with alliance partners such as Z code for those of you don't know Zico is the second biggest a combustion put manufacturer in the world. They want every single competence with a huge sales force.
And I felt bad product line, we've partnered with California boiler one of the major bedroom installers and service companies.
In California.
The.
What that does is it allows us to basically have the reach and the resources of the huge companies.
Well, while we ourselves did not have to make the substantial investments to develop that capability ourselves.
Oh, you're talking about sales to maximize sales.
In the Eagle looking forwards.
Those partner companies are expected to be.
Doing a lot of the face to face meetings with clients. However, I do not believe and leave.
Leaving sales totally in the hands all of our partners, we have to support them.
Suddenly Wednesday.
Cases, all strategic sales, we will be getting engaged with the customers.
So I do not plan to take on a lot of ongoing REIT.
Carrying costs to develop our sales team, but at the same time, we will make sure that we have the sales capability and also the tools and the infrastructure.
To maximize strategic sales to develop our business in new areas and then to help our partners be successful shutting that technology.
Alright, thank you so much.
Thank you Matt.
Mark.
Sir Please go ahead.
Hi, Jim.
<unk> seen a picture of Mr. Melendez, and China next to the test boilers in gas and water lines.
How much did all of that of that cost.
I will elaborate on this the short answer is I really don't know.
The.
The work in China, those photographs were taken on the site all that partner swung the young Shuang young as I and I.
Gotcha.
Huge I'm one of the major manufacturing companies in China.
We partnered with them to deliver.
To live out our boiler burner products into China.
And to combine up bad news into their boiler to allow us to jointly offer a.
Special package of.
Low emissions equipment.
As part of that venture they have actually provided all of the costs for everything they've done that.
Getting that pipeline piloted in China, the high pressure pipeline, that's required to run at 500 horse power boiler.
In their boiler for certification was a huge undertaking on that part.
So when the short time set it apart from a relationship effort it didn't.
It actually cost us anything to put that in place.
Oh.
I think the other thing I'd like to know I did touch on it in the comments Fishworm Leland to carry that expense.
And to build those resource themselves not just for this test.
But those of you. Following we've also said if I had 125 horsepower, but which for me on the same way.
Now for them to put that cost into a venture to me is just reassuring because it's a very clear indication of.
They believe.
In the <unk>.
Is this potential of this joint venture in.
China.
Their commitment their lines with baseline.
Okay.
Alright.
Another question that I have actually in prior conference calls you had mentioned that Theres been an increase in request for quotes.
Give us an idea of the magnitude of that or.
It's.
Odd to do you know to how to really get into a lot of the quotes. So also come into California boiler directly so even I can comment on the ones that we see but those that come into our partners, we don't see those until they.
Really develop into meaningful opportunities.
But I think for everyone. It's it's more.
I tend to look longer term and more strategically and I think understanding the significance of getting these first commercial orders out into the market and especially into California.
And actually giving our customers some real references and first hand experience of the technology.
Is what I see as the most significant indicator of what we should expect in the future.
Alright.
Thank you.
Thank you Mark.
As a reminder, if you have a question. Please press star one to enter the question queue.
The next question comes from Robert.
With a lot of Cowen. Please go ahead.
Hello, Jim.
Oh, Flyboat Gratulation how's it going.
Congratulations on such great progress.
I'm kind of happy that I can't keep up with the different orders now.
Hello, all confused.
Okay.
But I I was going to kind of add to the gentleman before about the increased inquiry is there some kind of like order of magnitude.
Is there a noticeable difference in.
An inquiry to your company are.
Based on.
Based on what we've seen in the sales.
Announcements that you've made.
I mean, Bob it's yep.
Don't want to get into giving guidance and also understand that we.
We get inquiries at all.
In a a variety of different.
Levels of seriousness.
So okay, but you.
Just as an example, we have teams out at the American Petroleum Institute Conference. This week and the engagement. We have had this past week there.
Oh the reports back.
Myself, but just the interactions and the interest.
And we had a booth there and the number of people coming to the boost to look at that demonstration burner.
Was a lot greater than even we expected I think the guys said even on the very first day of the conference. They believe about 75% of the people that came up to get a firsthand look at the demonstration Budd we had at <unk>.
At the API conference.
So if you take it.
Examples like that we.
We have never seen that before.
Okay, and and that was going to say back to the.
The last call.
I really wanted to.
In our complement your vision.
D O that.
Clear sign core.
Kind of like the Intel was for computers, I remember you, saying that a couple of years ago.
And that that heater design.
Designer Company Tulsa heater was a clear example of the clarifying Cora than you had envisioned for the company I was wondering when you were we were previous position did your old company.
Get an installation like that where it was sold to one of those that are media companies like a heater designer.
Designer company or is that kind of unique.
In other words is that kind of unique to our our technology.
Okay.
Bye bye.
I need to be a little careful giving details ROI framework.
I worked for one of the burden of companies owned by <unk>.
Honeywell before joining clear sign that company did not have any boiler burners.
Putting a.
Oh yeah.
Can you clarify the burden.
The company that we sold our boiler Buddy Buddy into.
Does use force draft horizontally mounted burners.
Typically they would be no matter, which suppliers they wouldn't buy process heater Budd is of that configuration.
This is the first instance that I know, where we have a.
A standardized product that we.
Designed for design for a boiler.
But all are able to deploy into these different industries uneven process heaters.
And to sell to a heat of manufacturer rather that rather than rather just being limited to boiler manufacturers.
Right right.
Okay. That's that's that's kind of what I was getting at I appreciate that.
Okay.
Alright, Thank you Bob.
This concludes our question and answer session.
I would like to turn the conference over to Matthew.
A question from the email.
Here's a question from email if we could just clear side together with partners have sufficient production capacity and resources to handle and meet the rapidly growing demand for the installation of <unk> products in the various markets.
Yeah. Good question.
So we sit in that in but I think it's very potent.
Oh he said.
Is that referring back to my previous comments, we talked about the asset light strategy we have.
All of that means that as clear sign we have not invested heavily in manufacturing capital and personnel until she manufacturer.
We did however, the plan and move the company headquarters into Tulsa.
For the reason that it allowed us to engage with.
Partners and a great manufacturing capability Z code a process been a part of their headquarters all here.
In Tulsa.
They are a they truly are.
A global company that the second biggest bedding manufacturer in the world.
They not only have the test facility, but they manufacture the process been as for US we have an agreement with them for that.
Absolutely have the capacity to manufacture all the place I'm burden as they also have outflows capabilities should that be needed.
But given that they are a the second biggest food manufacturer in the world. There is a lot of room for expansion.
And for CLIA assigned to build beds for us.
On the.
Boiler burner technology, we do have manufactured and deliver the <unk> call, but at two California boiler to include that burn in that package.
Tulsa has a huge wealth oh.
Manufacturing companies.
That would develop in the oil and gas and process industry.
We've worked.
With a few we have a couple of vendors that we use on a repeated basis at the moment. They have a very large capacities, while I have absolutely no concerns there.
And if or when the day comes that they do not have the capacity there are a plethora of other manufacturers here in Tulsa.
Certainly in the Midwest or we can reach out to so I.
I do not have any concerns about our ability to manufacture it.
And then I have a product.
Thank you for your question I would like to turn the conference back over to Jim Deller for any closing remarks.
Okay.
Thank you everyone for your interest and taking the time to participate today.
We look forward to updating you regarding our developments and.
And speaking with you all on our next call.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
Yes.
Yeah.
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