Q2 2023 ClearSign Technologies Corporation Earnings Call

Speaker 1: Good day and welcome to the ClearSign Technologies second quarter 2023 conference call.

Okay, and I'll come to be clear fine technology second quarter 2023 conference call.

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Speaker 1: I would now like to turn the conference over to Matthew Celenger of Firm IR Group. Please go ahead.

I would now like to turn the conference over to Matthew Selinger, all for them I ask two please go ahead.

Speaker 2: Good afternoon and thank you operator. Welcome everyone to the Clear

Good afternoon, and thank you operator, welcome everyone to the clear sight Technologies Corporation second quarter 2023 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.

Speaker 2: This includes remarks about the company's projections, expectations, plans, deweas and prospects.

Includes remarks about the company's projections expectations plans beliefs and prospects.

Speaker 2: These statements are based on judgments and analysis as of 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 statement.

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.

Speaker 2: The risk and uncertainty associated with the forward-ling statement made in this contract called include but are not limited to

The risks and uncertainties associated with forward looking statements made in this conference call include but are not limited to whether.

Speaker 2: Whether field testing in sales, clear science products will be successfully completed. Whether clear science will be successful in expanding the market for products. And other risks that are described in clear science public periodic filings with the SEC.

But our field testing and sales of products will be successfully completed whether <unk> will be successful in expanding the market for its products and other risks that are describing <unk> public periodic filings with the SEC, including the discussion in the risk factors section of the 2022 and you report on Form 10-K, and our quarterly report on Form 10-Q.

Speaker 2: including the discussion in the risk factor section of the 2022 annual report on form 10K. And the quarterly report, form 10Q, for the quarterly period and a June 30th, 2023.

For the quarterly period ended June 32023.

Speaker 2: Except as required by law, Clear Science assumes no responsibility to update these forward-looking statements to reflect future events or actual outcomes and does not intend to do so.

Except as required by law criticize assumes no responsibility to update these forward looking statements to reflect future events or actual outcomes and does not intend to do so.

Speaker 2: So with me on the call today are Duke Deller, Clearstone's Chief Executive Officer, and Brett Hines, Clearstone's Chief Financial Officer.

So with me on the call today are Jim Deller preferred Chief Executive Officer, and Fred Hite, Chris I'm, Chief Financial Officer.

Speaker 2: So at this point, I would like to turn the call over to CFO Brent Hines. Brent, please go ahead. Thank you, Matthew. And thank you to everyone joining us here today.

This point I would like to turn the call over to CFO, Brett Hi, Brent. Please go ahead. Thank.

Thank you Matthew and thank you to everyone joining us here today.

Speaker 3: Before I begin, I'd like to note that our financial results on Form 10Q were thought out with the SEC on August 14th.

Before I begin I'd like to note that our financial results on Form 10-Q filed with the SEC on August 14.

Speaker 3: Now I'd like to give an overview of the financials for the second quarter of 2023.

Now I'd like to give an overview of the financials for the second quarter of 2023.

Speaker 3: The company recognized revenues of $150,000 during the three months ended June 30, 2023, as compared to zero revenues for the same period in 2022.

The company recognized revenues of $150000. During the three months ended June 32023, as compared to zero revenues for the same periods in 2022.

Speaker 3: Revenants for the three months into June 30th, 2023, were generated predominantly from our engineering feasibility state.

Revenues for the three months ended June 30 of 2023 were generated predominantly from our engineering feasibility study.

Speaker 3: For the six months into June 30th, 2023, we recognized approximately 1 million in revenues, which is the highest reported revenues in our history for any given year or six month period.

For the six months ended June 32023, we recognized approximately $1 million in revenue, which is the highest reported revenues in our history for any given year or six month period.

Speaker 3: These revenues were generated predominantly from our POSIS Burned Product Line.

These revenues were generated predominantly from our process burner product line.

Speaker 3: Now I'd like to switch the discussion from Reveniz to Cash.

Now I'd like to switch the discussion from revenues to cash.

Speaker 3: Our net cash provided by operations for the three months ended June 30, 2023 was approximately $46,000. In the same three month period last year we used approximately $1.8 million cash.

Our net cash provided by operations for the three months ended June 30 of 2023 was approximately $46000 in the same three month period last year, we used approximately $1 8 million cash.

Speaker 3: This course operating cache activity was a milestone for the company.

This quarters operating cash activity was a milestone for the company.

Speaker 3: For the first time in our history, we added cash to our balance sheet through operational activity.

For the first time in our history, we added cash or balance sheet through operational activity.

Speaker 3: Now I must stress a cautionary note about this milestone. Most of this cash came from our customers for projects that have yet to fully complete.

I must stress a cautionary note about this milestone most of this cash came from our customers for projects that have yet to fully complete.

Speaker 3: We structure our customer contracts to receive substantial portions of cash before completion and revenue recognition.

We structure, our customer contracts to receive substantial portion of cash before completion and <unk>.

Revenue recognition.

Speaker 3: All things being equal in no other changes, this milestone is a temporary occurrence driven by time.

All things being equal and no. Other changes this milestone is a temporary occurrence driven by timing.

Speaker 3: However, we do not believe that this is an insignificant milestone, and that it is a meaningful marker of our progress.

However, we.

We do not believe that this is an insignificant milestone.

And that is a meaningful marker of our progress.

Speaker 3: As of June 30th, 2023, we had approximately $8.5 million in cash in short-term investments.

As of June 30 of 2023, we had approximately $8 $5 million in cash and short term investments.

Speaker 3: Now let's switch gears and shift to discussing our profit loss.

Now, let's switch gears and shift to discussing our profit and loss.

Speaker 3: Our net loss for the three months into June 30th, 2023 was approximately $1.5 million, compared to approximately $1.6 million for the same period in 2022. This was a modest year.

Our net loss for the three months ended June 30th 2023 was approximately $1 $5 million compared to approximately $1 $6 million for the same period in 2022.

This was a modest year over year over year improvement.

Speaker 3: We saw a modest year-over-year improvement in our net loss for the six months ended June 30, 2023. We reported an improvement of $222,000 when compared to the same period in 2022.

We saw a modest year over year improvement in our net loss for the six months ended June 32023, we reported an improvement of $222000 when compared to the same period in 2022.

Speaker 3: It is important to note that both of these improvements in our net loss were driven by gross profit from sales of our product.

It is important to note that both of these improvements in our net loss were driven by gross profit from sales of our products.

Speaker 3: In other words, we are not seeing notable shifts in our cost structure, but we are seeing the effects of notable shifts in sales.

In other words, we're not seeing notable shifts in our cost structure, but we are seeing the effects of notable shifts in sales.

Now changing our focus to equity.

Speaker 3: As of June 30, 2023, we reported approximately 38.6 million shares of comma stock outstanding.

As of June 30, 2023 we reported approximately 38 6 million shares of common stock outstanding.

Speaker 3: We have competence in our financial position and balance sheet. And with our quarter Indian balances, we have more than 12 months of runway in work in capital. And that is without cash from any other sources.

We have confidence in our financial position and balance sheet and with a quarter ending balances we have more than 12 months of runway in working capital and that is without cash from any other sources.

Speaker 3: With that, I'd like to turn the call over to our CEO , Jim Dellen. Jim.

With that I'd like to turn the call over to our CEO, Jim Deller Yep.

Thank you Brian for the financial overview.

Speaker 4: I'd like to thank everyone for joining us on the call today and for your interest in ClearSign.

I'd like to thank everyone for joining us on the call today and feel interesting clear sign.

Speaker 4: There's been a while since our last update, I'm happy to share our progress with you.

It's been awhile since our last update I'm happy to share our progress with you.

Speaker 4: Before I begin, I want to congratulate Brent on his recent promotion to Chief Financial Officer.

Before I begin I want to congratulate Brent on his recent promotion to Chief Financial Officer.

Speaker 4: Brent has undertaken an expansive transformation of ClearSign's accounting functions that is not visible from the outside.

Brent has undertaken an extensive transformation of clear signs accounting functions, but it is not visible from the outside.

Speaker 4: This has made our processes much more efficient and also provides an accounting and control system that is structured to enable.

This has made our processes much more efficient and also provides an accounting and control system that is structured to enable.

Future growth.

Speaker 4: On today's call, I will review our business segment starting with process burners.

On today's call I will review, our business segments, starting with process bitterness.

Speaker 4: and discuss both the hydrogen-burning development project as well as other in-process projects and pipeline.

And discuss both the hydrogen battery development project as well as other in process projects and pipeline.

Speaker 4: Then I will touch on the progression in our Boiler Burner business, and then provide an update on our business in China and the developments there.

Then I will touch on the progression in our boiler burner business and then provide an update on our business in China and the developments there.

Speaker 4: We also have developments with our collaboration partner, Norion.

We also have developments without collaborations partner annoying.

Speaker 4: Corporation who is developing applications using our fencing technology and will give more insight into this progress.

Corporation, who is developing applications using our sensing technology, and we'll give more insight into this progress.

Speaker 4: Before I go into detail on our individual product lines, I want to give a little high-level insight into our operations over the last few months.

Before I go into detail on our individual product lines I want to give it at a high level insight into all our operations over the last few months.

Speaker 4: because we make announcements of sales, grant awards and other significant events. It's really only on these calls that we get to give some insight into the cooking that goes on.

As we make announcements of sales Grant awards and other significantly beds, there's really only on these calls we get to give some insight.

The cooking that goes on in the kitchen.

Speaker 4: We have completed the engineering design of burners for two different heaters and keyed those up for cost of a testing in the...

We have completed the engineering design have been is for two different heaters and tee those up for Costa of testing.

Speaker 4: The first burn is fabricated and scheduled to install in the test furnace next week to begin the testing process.

The first but it's fabric agent unscheduled to install in the test furnace next week to begin the testing process.

Speaker 4: We've also completed the design and fabrication of the three boiler burners.

We've also completed the design and fabrication of the three boiler bed is.

Speaker 4: Two in California, one of these is installed and awaiting commissioning and the other is scheduled to ship to the customer site in the coming days.

Two in California, one of these is installed and awaiting commissioning and the other is scheduled to ship to the customer site in the coming days.

Speaker 4: and the third is for the chemical plant in Texas. This burner is completed and ready for collection by a customer.

And the third is really a chemical plant in Texas, the Spanish completed and ready for collection by a customer.

Speaker 4: On top of this, there's been a lot of engineering and design progress in preparation for our hydrogen burner project.

On top of this there's been a lot of engineering and design progress in preparation for our hydrogen burner project.

We have structured play assigned to be highly scalable.

Speaker 4: But as these are the first commercial orders to be processed, there has been a significant amount of front-loaded engineering and development, and also coordination with our fabrication vendors to iron out our production processes.

But as these are the first commercial orders to be process that has been a significant amount of Frontloaded engineering and development and also coordination with our fabrication vendors to iron out our production processes.

Speaker 4: We believe that this is a feature of early production that we expect not to occur as we rescale our consistent order flow.

We believe that this is a feature of the Eddie production.

That we expect not to occur as we reach scale a consistent order flow.

Speaker 4: These first boiler burner orders and first large size process burner orders are very significant for us. Not only in terms of establishing our technology in the market, as I've trusted van der Tij customers, but also in demonstrating our ability to complete full scale commercial orders.

These finished boiler burner orders and first large science process been orders are very significant for us.

Not only in terms of establishing our technology in the market as.

As a trusted vendor to our customers, but also in demonstrating our ability to complete full scale commercial orders.

Speaker 4: So while the first part of the year was heavy with announcements of initial commercial sales, both in process burner and boiler burners, understand that there is a lot of work in executing these first sales to pave the way for future growth, both in getting our products in the field, but also in getting our project flow, scalability and coordination dialled in.

So while the first part of the year was heavy with announcements of initial commercial sales, but the process burner boiler bed is understood.

I understand that Theres a lot of work in executing these first sales to pave the way for future growth.

And getting our products in the field, but also in getting that project flow scalability and coordination dialed in.

Speaker 4: Concurrent with this work, the operations team is also engaged in the consistent preparation and follow-up support of customer proposals.

Concurrent with this work the operations team is also engaged in the consistent preparation and follow up support of customer proposals.

With that said I'll move on to our process burner segment.

Speaker 4: Many of you will have seen our announcement regarding the receipt of the Phase 2 SBIR grant from the Department of Energy from 100% hydrogen-capable ultra-low NOx burner development and commercialization project.

Many of you will have seen our announcement regarding the receipt of the phase two S. P. A I'll grant from the department of energy for 100% hygiene capable ultra low Nox burner development and commercialization project.

Speaker 4: The award was confirmed late in the day August 25th and our announcement was made Tuesday morning this week.

The award was confirmed late in the day August 25th and our announcement was made choose day morning. This week.

Speaker 4: This grant is for up to $1.65 million and follows the previous Phase 1 grant for $250,000 that allowed us to demonstrate the capability of our technology to achieve very low LOX emissions over fuels ranging from zero to 100% hydrogen.

This grant is for up to $1.65 million and follows the previous phase one Grand for 250000 that allowed us to demonstrate the capability of our technology to achieve very low nox emissions fuels ranging from zero to 100% hydrogen.

Speaker 4: This testing was completed in the facilities of ZeeGo Inc., our collaborative partner, and served as a successful proof of concept demonstration.

This testing was completed and the facilities of Zico, Inc. A collaborative partner.

As a successful proof of concept demonstration.

Speaker 4: The second grant is for up to two years and will fund the development and commercialization of a full range of burners that will enable the reduction of moxamissions to the levels required to control ground level ozone in critically bloated areas.

The second grant is for up to two years and will fund the development and commercialization of a full range of bidders that will enable the reduction of Nox emissions to the levels required to control ground level ozone critically polluted areas.

Speaker 4: We believe that these burners will be a necessary part of the adoption of the new hydrogen economy and use of hydrogen fuel for industrial heating.

We believe that these benefits will be a necessary part of the adoption of the new hydrogen economy and use of hydrogen full fueled for industrial heating.

Speaker 4: The anticipated outcome is to achieve reductions in industrial emissions of both carbon dioxide and nitrogen oxides without the need of catalytic clean-up devices and the hazards and costs of ammonia and the catalysts that accompany them.

The anticipated outcome is to achieve reductions in industrial emissions of both carbon dioxide and nitrogen oxides without the need of pathway to clean up the biases and hazards and cost of ammonia and the catalyst that accompany them.

Speaker 4: As we have highlighted previously, the current available burner solutions are able to reduce CO2, but the byproduct is much higher NOx.

As we have highlighted previously the current available Bennett solutions are able to reduce C O T.

But the byproduct is much high and Knox.

Speaker 4: Our novel burner enables zero CO2 by burning pure hydrogen and creates NOx emissions so low that they compete with SCRs in the single digit parts per million range.

Novel been enabled zero C O two by Bernie pure hydrogen.

And creates nox emissions, so low that they compete with S. L. I was in the single digit parts per million range.

Speaker 4: From a compliance perspective, our customers will still be required to maintain under the not.

From a compliance perspective, our customers will still be required to maintain under the Nox.

Speaker 4: emission limits of the operating permits when adding or switching to hydrogen as a fuel gas.

Emission limits, all the operating permits when adding or switching to hydrogen as a fuel gas.

Speaker 4: We anticipate that the increase in NOx emissions resulting from the use of hydrogen will result in the need for a significant number of industrial and commercial burners to be replaced.

We anticipate that the increase in Nox emissions, resulting from the use of hydrogen will result in the need for a significant number of industrial and commercial band has to be replaced.

Speaker 4: There's been a notable interest in this project and product line, and we're already in discussions with potential customers and other stakeholders regarding the future deployment, and in particular, early adopter opportunities for this new hydrogen-focused burner technology.

That has been a notable interest in this project and product line and we are already in discussions with potential customers and other stakeholders regarding the future deployment and in particular early adopter opportunities for this new hydrogen focused burner technology.

Speaker 4: This project is just getting started, but we have been planning for this in anticipation of this news.

This project is just getting started but we have been planning for this in anticipation of this news.

Speaker 4: The first phase of our activities are to complete the detailed design of the first prototype production type burner. And then set this up for testing.

The first phase of our activities are to complete the detailed design of the fish prototype production pipeline.

And then set us up for testing and optimization.

Speaker 4: We will provide updates as we pass significant milestones in this program.

We will provide updates as we passed significant milestones in this program.

Turning to the projects in our production pipeline.

Speaker 4: Just to remind everyone, we have orders in production that will replace burners in four multi-burner heaters situated in two different nephionaries in California.

Just to remind everyone. We have orders in production that will replace Budd is in full multi burner heaters situated in two different refineries in California.

Speaker 4: Regarding the order for two heaters that was released back on May 18th.

Regarding the order for two heaters that was released back on May 18th.

Speaker 4: This order is for two multi-burner heaters, which encompasses 13 burners in total.

This order is for two multi burner heaters, which encompasses 13 business in total.

Speaker 4: The order is a repeat order from a customer who was an early adopter of our technology in Southern California.

Water is a repeat order from a customer he wasn't early adult Oh about a technology in southern California.

Speaker 4: Also, as we have mentioned and is quite important, this customer came back to ClearSign 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.

Also as we have mentioned and it's quite important this customer came back to clear assigned after initiating an alternative option to install a traditional selective catalytic reduction or SCR Nox control system and the inherent complexities associated with such a system.

Speaker 4: Additionally of note regarding this project is that the fuel gas includes high-

Additionally of note regarding this project is that the fuel gas includes hydrogen.

Speaker 4: which can make up to 80% of the volume. So this supply will give us not only two valuable installations validating our technology, but also installations demonstrating our capability to control non-semissions from fuel gases containing high concentrations of hydrogen as expected to be an increasing need and an increasing value in the future.

Which can make up to 80% of the volume. So this supply will give us not only to valuable installations validating our technology.

But also installations, demonstrating our capability to control Nox emissions from fuel gas as containing high concentrations of hydrogen as they expect it to be an increasing need and of increasing value in the future.

Speaker 4: The fabrication of these burners is initiating and delivery to the client is expected in the first quarter 2024.

The fabrication of these partners is initiating and delivery to the client is expected in the first quarter 'twenty 'twenty four.

Speaker 4: We very much look forward to completing this project and seeing these burners in operation.

We very much look forward to completing this project I'm, saying these burdens and operation.

Speaker 4: The 20 burner California project is also progressing well.

Ah the 'twenty been a California project is also progressing well.

Speaker 4: As we updated previously, the final witness testing went as planned and we are now in final stages of completing computer modeling of the flow patterns inside the customer's heater and also preparing for the fabrication of the burners for delivery to our customer site.

As we updated previously the final witness testing went as planned and we are now in final stages of completing computer modeling flow patents inside the customer's heater.

And also preparing for the fabrication of the bonus for delivery to a customer site.

Speaker 4: We are scheduled to be fully complete with a manufacturer and delivery of our burners early in 2024, which will largely complete this order.

We are scheduled to be fully complete with the manufacture and delivery of I've been as early in 2024, which were largely complete this order.

Speaker 4: At this time we do not have confirmation whether the site shut down during which these burners will be installed will be undertaken in 2024 or 2025. We just dependent on our clients plans and schedule.

At this time, we do not have confirmation whether the site shutdown during which these barrels will be installed will be undertaken in 2024, or 2025, which is dependent on our clients' plans the scheduling.

Speaker 4: Bear in mind that there are a lot of activities included in this refinery shutdown, so the planning process is complex and dependent on many facts.

Bear in mind that there are a lot of activities included in these refinery shutdowns. So the planning processes complex and dependent on many factors.

Speaker 4: We will be able to invoice and receive payment upon delivery of the burners and only a small part of the purge solder remain until inspiration.

We will be able to invoice them receive payment upon delivery of the business and only a small part of the purchase order remain until installation.

Speaker 4: For those that are interested, we have posted a summary version of this test data and report on our website as we believe that data and details are informative, specialist from the industry, investors and other stakeholders alike.

But those that are interested we have posted a summary version of this test data and report on our website.

We believe that the data and details all informative specialist from the industry investors and other stakeholders alike.

Speaker 4: As part of our promotional activities, we plan to use these burners, use for the witness demonstration, and to host an industry open house at our partner Zcoz facility.

As part of our promotional activities. We plan to use these bed is useful to witness demonstration at the host and industry Open house that policy cause facility.

Speaker 4: The burners that we use in the burner testing were not part of the final production run and were not being included in the shipment to California.

The bonus that we used in the burner testing, but not part of the final production run and will not be included in the shipments California.

Speaker 4: These burners will be kept for demonstration purposes for potential customers and stakeholders.

These panels will be kept for demonstration purposes, but potential customers and stakeholders.

Speaker 4: We have additional customer demonstration events planned for the coming month.

Have additional customer demonstration events planned for the coming months.

Speaker 4: As I have said in the previous call, these burners demonstrate NOx emission numbers significantly below the 5 ppm guarantee and robust performance throughout their operating range.

As I have said in the previous call. These bonus demonstrate nox emission numbers significantly below the five P. P M guarantee.

And robust performance just throw out there operating range.

Speaker 4: This is important because in this industry, while we have presented and promoted our burner technology, for most industry people, seeing in person is believing.

This is important because in this industry, while we have presented and promoted our burner technology.

Well most industry people sitting in person is believing.

Speaker 4: And now we go on to developments in our boiler burner product line.

I'll now move onto the developments in our boiler burner product line.

Speaker 4: On the last call we spoke about our first three boiler burden sales to into California and

On the last call we spoke about at first three boiler bed sales.

Two into California, and one in Texas.

Speaker 4: These will be our first installed customer orders of clear sign core burners. The two in California which are for fire tube boilers branded and sold as a road burner.

These will be office installed customer orders of clay assign coal business.

Between California, which I'll find cheap boilers branded and sold.

He wrote bad.

Speaker 4: This is meaningful because it provides that start of a developing install base and the process of getting our products out into the field.

This is meaningful because it provides that start of a developing installed base and the process of getting our products out into the field.

We will actually have five deployments as.

Speaker 4: As with the first sale, we also deployed the 500 rental boiler for my partner, California Boiler.

As with the first sale. We also deployed the 500 rental boiler for my part of California boiler.

Speaker 4: and we have just earlier this month commissioned another smaller 125 horsepower rental boiler again fitted with a ClearSign Core Rogue Burner in Oregon.

And we have just early this month commissioned another smaller 125 horsepower rental boiler again fitted with a clear sign call Rogue burner in Oregon.

Speaker 4: The first rental boiler, the larger 500 horsepower, was set up and has now been in operational service for several weeks and operating smoothly.

The first rental boiler the larger 500 horsepower was set up and has now been an operational service for several weeks.

And operating smoothly as expected.

Speaker 4: Some of you may have seen our posting, and postings from our collaborative partner, California Boiler, and their subsidiary, Rogue Combustion, on LinkedIn regarding this.

Some of you might have seen that posting.

Hosting smart collaborative partner, California, boiler and their subsea dreamboat combustion all linked in regarding this.

Speaker 4: This first boiler order was sold into a medical and business waste services company and was sold by a partner, California Boiler, into the San Joaquin Valley Air Pollution Control District of California.

This first boiler order was sold into a medical business waste services company.

It was sold by a partner, California boiler into the San Joaquin Valley Evolution control District of California.

Speaker 4: This new boiler, complete with a road burner, is now installed and expected to be commissioned and put into service next week.

This new boiler complete with the roadbed is now installed and expect it to be commissioned and put into service next week.

Speaker 4: We look forward to having this operational and providing our first permanently installed commercial reference site.

We look forward to having this operational and providing our first permanent stores commercial reference sites.

Speaker 4: The second order was also sold into the California market to a national provider of recycling services.

Speaker 4: Our burner and the new boiler into which it will be fitted will be part of a recycling plant upgrade that will increase energy efficiency for one of this customers nationwide site.

Speaker 4: We believe that this second burner in particular will truly set the bar for boiler burners.

In particular, we're truly set the bar for boiler burners.

Speaker 4: This burner is larger and is in the size range requiring sub 2.5 ppm NOx emissions. A capability that we believe is unique to clear sign burners.

This spend is larger and is in the size range requiring sub two five ppm Nox emissions.

Capability that we believe is unique to <unk>.

Speaker 4: All other solutions for lock permissions at this level require the inclusion of an SCR and associated capital costs and ammonia handling that go with them.

All other solutions for Nox emissions at this level required the inclusion of an SCR and associated capital costs and ammonia handling that go with them.

Speaker 4: The new boiler of this site is being supplied by Hearst Boiler Company, the largest manufacturer of fire tube boilers in the United States.

The new boiler. This site is being supplied by <unk> or the company.

The largest manufacturer of fire tube boilers in the United States.

Speaker 4: This burner will ship to California from our fabricator in Tulsa in September and is expected to be installed and commissioned in the fourth quarter this year.

This burner will ship to California from our fabricated in Tulsa in September and is expected to be installed and commissioned in the fourth quarter. This year.

Speaker 4: We visited her spoiler company with California Boiler back in late July as part of our marketing and sales program.

We visited her for the company with California boiler Bank in late July as part of our marketing and sales program.

Speaker 4: This gave us the opportunity to see the boiler in production and also provided a good opportunity to discuss strategic sales avenues and approaches to remoting our burners into new boiler installations across the country.

This gave us the opportunity to see the ballroom production and also provided a good opportunity to discuss strategic sales avenues and approaches to promoting our burners into new boiler installations across the country.

Speaker 4: The third boiler burner sale was unique in the fact that it is our first application of our boiler burner technology into a non-boiler heater and very importantly our first sale into a heater manufacturer.

The third boiler burner sale was unique in the fact that it is our first application of our boiler burner technology into a non boiler heater and very importantly.

Our first sale into a heater manufacturer.

Operator: Good day and welcome to the Clearsign Technology Second Quarter 2023 conference call. All participants will be in a listen only mode. Should you need assistance please signal a conference specialist by pressing the star key forward by zero.

Speaker 4: who has included our burner as their chosen solution to meet their customers needs. Also it was

Who has included Alberta as they've chosen solution to meet their customers' needs.

Also it was our first sale into Texas.

Speaker 4: After California, we anticipate that the Texas Gulf Coast region will be the next large market for us.

After California, we anticipate that the Texas Gulf Coast region will be the next large market for us.

Operator: After today's presentation, there will be an opportunity to ask questions. To ask a question you may press star then one on your touch on phone. To withdraw your question, please press star then two.

Speaker 4: Lastly, the sale is also the first for this global chemicals company and the first in the industrial chemicals sector.

Lastly, the sale is also the first for this global chemical company and the first industrial chemical sector.

Speaker 4: This burner is fully fabricated and ready to ship to the job site.

This burn is fully fabricated and ready to ship to the job site.

Operator: Please note this event is being recorded.

Speaker 4: As we have said before, we are very encouraged by the early boiler burner orders and installations in multiple markets this year.

As we have said before we are very encouraged by the early boiler burner orders and installations in multiple markets. This year.

Matthew Selinger: I would now like to turn the conference over to Matthew Selinger of Firm IR Group. Please go ahead.

Speaker 4: but we are also encouraged by our list of outstanding proposals and look forward to adding to this list.

But we are also encouraged by our list of outstanding proposals and look forward to adding to this list.

Matthew Selinger: Good afternoon and thank you operator.

Brent Hinds: Welcome everyone to the Clearsign Technology Collaboration Second Quarter 23 results conference call. During this conference call, the company will make fully looking statements. Any statement that is not a statement of his circle fact is a forward looking statement. This includes remarks about the company's projections, expectations, plans, beliefs and prospects. These statements are based on judgments and analysis as of the day 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.

Speaker 4: We do believe that these early deployments will be a catalyst for additional orders, both through the provision of references to which...

We do believe that these early deployments will be a catalyst for additional orders.

Brent Hinds: The risk and uncertainties associated with the forward looking statement made in this conference call include better not limited to whether field testing and sales of products will be successfully completed whether Clearsign will be successful and expanding the market for the products and other risks that are described to be present to public periodic filings with the SEC, including the discussion in the risk factor section of the 2022 annual report on phone 10K and the quarterly report on phone 10Q for the quarterly period ended June 30, 2023.

Both through the provision of references to <unk>.

Speaker 4: prospective customers can refer and gaining confidence in our technology as they do and also through the promotion of our solutions and general awareness of our technology in the industry that we expect to result from the peer-to-peer and business-to-business communications within the industry and businesses related to it.

Prospective customers camera and gaining confidence in our technology as they do.

And also through the promotion of our solutions and general awareness of our technology in the industry that we expect to result from the peer to peer and business to business communications within the industry and businesses related to it.

Speaker 4: We believe also that providing a simple, cost-effective, and ammonia-free solution to a new, near-zero NOx requirements will be recognized by other air districts within and outside of California, and provide references where they develop modifications to their clean air regulations.

We believe also that providing a simple cost effective and ammonia free solution.

So a new near zero Nox requirements will be recognized by the air districts within and outside of California.

And provide references will develop modifications to their clean air regulations.

Now turning to China.

Speaker 4: Our President of Asia, Manny Menendez, is backing in the country now.

Our president of Asia, My name and Endesa is backing in the country now.

Speaker 4: He has two main objectives in the near future. The first is to complete the commissioning of the 500 horsepower fire tube, boiler and burner installed on the side of our collaborative partner, Schwang Leong, and then completing the government certification process.

He has two main objectives in the near future. The first is to complete the commissioning of the 500 horsepower find U or the end burner is stored on the sides of our collaborative partners strongly on.

Brent Hinds: Except as required by law, Clearsign assumes no responsibility to update these forward looking statements to reflect future events or actual outcomes and does not intend to do so.

Then completing the government's certification process.

Speaker 4: The 500 horsepower burner is expected to complete certification in the fourth quarter of 2023.

The 500 horsepower burner is expected to complete certification in the fourth quarter of 2023.

Matthew Selinger: So with me on the call today, our two dollar Clearsign's chief executive officer and Brett Heinz clears on chief financial officer.

Speaker 4: As we have mentioned in the past, Strongly Armed is one of the largest boiler companies in the world.

As we have mentioned in the past strongly on is one of the largest boiler companies in the world.

Brent Hinds: So at this point, I would like to turn the call over to CFO Brett Heinz.

Brent Hinds: Bren, please go ahead. Thank you, Matthew.

Speaker 4: For them to contribute the assets and manpower that they have to date is a direct reflection of their perception of how potentially market moving our technology is for the Chinese market.

For them to contribute the assets our manpower that they have to date is a direct reflection of their perception of how potentially market moving that technology is for the Chinese market.

Brent Hinds: And thank you to everyone joining us here today. Before I begin, I'd like to note that our financial results on form 10Q were thought out with the SEC on August 14th. Now I'd like to give an overview of the financials for the second quarter of 2023. The company recognized revenues of $150,000 during the three months ended June 30, 2023. As compared to zero revenues for the same period in 2022, revenues for the three months ended June 30, 2023 were generated predominantly from our process burn and product line.

Speaker 4: On the assumption that the 500 horsepower burner model gets certified, both Clearsign and Shuanliang are in agreement that we will eventually have an entire sliders range of boiler burners to offer into the Chinese market.

On the assumption that the Fireflood horsepower, but our model gets certified both clear signage strongly on are in agreement that we will eventually have an entire size range or boiler burners to offering into the Chinese market.

Speaker 4: To put this range into perspective, the rental boy rent operation in California is a 500 horsepower model.

To put this range into perspective, the rental boiler and operation in California is a 500 horsepower model.

Speaker 4: The burner being installed into the new hearse boiler for the recycling company is a larger burner at 1200 horsepower.

The burden of being installed into the new Hess boiler.

Recycling company as a larger.

At 12.

1200 horsepower.

Speaker 4: while the Wave Services Boiler Burner is a smaller 300 horsepower model.

While the way services boiler burner as a smaller 300 horsepower model.

Speaker 4: We believe we are well positioned to scale up or scale down our burner designs and that we can do this to fit this large demand segment in China.

We believe we are well positioned to scale up or scale down a burner designs and that we can do this to fit this launch demand segment in China.

Brent Hinds: Now that I'd like to switch the discussion from revenues to cash, our net cash provided by operations for the three months ended June 30, 2023 was approximately $46,000. In the same three month period last year, we used approximately 1.8 million cash. This course operating cash activity was a milestone for the company. For the first time in our history, we added cash or balance sheet through operational activity.

Speaker 4: The second activity is the promotion of our technology and our joint integrated boiler burner package with Shrongliang in the regions of China that have recently implemented U-low NOx requirements or areas that are in the process of doing so.

The second activity is the promotion of our technology and I joined integrated boiler burner package with strongly on in the regions of China that have recently implemented new low nox requirements or areas that are in the process of doing so.

Speaker 4: The likely first visit will be to Shenzhen with Shuangliang to promote our joint capabilities and unique offering to both customers in that area and also the local government officials responsible for administering the new air quality standards.

The likely first visit will be to Shenzhen with strongly on to promote our joint capabilities and unique offering to both customers in the area and also the local government officials responsible for administering the new air quality standards.

Brent Hinds: I must stress a cautionary note about this milestone. Most of this cash came from our customers for projects that have yet to fully complete. We structure our customer contracts to receive substantial portions of cash before completion and revenue recognition. All things being equal and no other changes, this milestone is a temporary occurrence driven by timing. However, we do not believe that this is an insignificant milestone and that it is a meaningful marker of our progress. As of June 30, 2023, we had approximately $8.5 million in cash and short term investments.

Speaker 4: As we said in the last call, Chuang Leong has not gone through all of the investment, effort and disruption with the anticipation that they will sell a handful of clear sign burners. Chuang Leong has much bigger...

As we said in the last call strongly on has not gone through all of the investment investment effort and disruption with anticipation that that they will sell a handful of players I'm bonus.

Strongly on has much bigger aspirations.

Speaker 4: On July 13th, we issued a press release announcing developments with our collaborative partner, Narayan Inc.

On July 13th we issued a press release announcing developments with our collaborative partner Narayan, Inc.

Speaker 4: Narayan is a specialist company developing applications of our sensing technology outside of the FLAMES sensor, CLIA, that we are promoting ourselves.

<unk> is a specialist company developing applications of our sensing technology outside of the flame sensor class III.

That we are promoting ourselves.

Brent Hinds: Now let's switch gears and shift to discussing our profit and loss. Our net loss for the three months in the June 30, 2023 was approximately $1.5 million, compared to approximately $1.6 million for the same period in 2022. This was a modest year over year improvement. We saw a modest year over year improvement in our net loss for the six months in the June 30, 2023. We reported an improvement of $222,000 when compared to the same period in 2022.

Speaker 4: In a notable development announced July 13th, NARIM was awarded a 250,000 SBIR grant to develop a sensing and controlling technology to solve a major need of improving the efficiency by reducing the steam consumption of large flares in the refining and pet scale vehicles industries.

And a notable development announced July 13th.

<unk> was awarded a 250000 SBA I'll grant to develop a sensing and controlling technology to solve a major need of improving the efficiency by reducing the steam consumption.

Brent Hinds: It is important to note that both of these improvements in our net loss were driven by gross profit from sales of our products. In other words, we are not seeing notable shifts in our cost structure, but we are seeing the effects of notable shifts in sales.

Large players in the refining and petrochemicals industries.

Speaker 4: The objective of this technology is to ensure the complete destruction of waste gases from defining processes, but importantly also to do this in a way that is energy efficient.

The objective of this technology is to ensure that the complete destruction of waste gases from refining processes, but importantly also to do this in a way that is energy efficient.

Speaker 4: which would reduce the CO2 footprint of flaring operations and reduce the client's fuel costs.

Which would reduce the cotwo footprint of flaring operations and reduce the client's fuel costs.

Speaker 4: This work is underway and we will provide updates of significant developments in the future.

This work is underway and we will provide updates of significant developments in the future.

Speaker 4: With notable custom orders in production and startup across both of our major product lines, we are at a significant transition point in the development of clear sites.

With notable customer orders and production and startup across both of our major product lines. We are at a significant transition point in the development of <unk>.

Brent Hinds: Now changing our focus to equity. As of June 30, 2023, we reported approximately $38.6 million shares of Comestalk Outstanding. We have confidence in our financial position and balance sheet that with our quarter Indian balances, we have more than 12 months of runway and working capital, and that is without cash from any other sources.

Speaker 4: Achieving an installed base and sufficient operational time for our customers and the engineering companies and consultants who support them to recognize and trust the efficient and ammonia-free NOx controlling solutions we provide is a major strategic objective in our path to full commercial operations.

Achieving an installed base sufficient operational time for our customers and the engineering companies and consultants, who support them to recognize and trust the efficient and ammonia free Noncontrolling solutions. We provide is a major strategic objective and a path to full commercial operations.

Ben Deller: With that, I would like to turn the call over to our CEO, Ben Dellard. Thank you, Brent, for the financial overview. I would like to thank everyone for joining us on the call today and for your interesting clear sign.

Speaker 4: Our technology is being recognized by air regulators, and we are seeing an influx of inquiries, some for boiler burners at a corporate level rather than individual sites.

Our technology is being recognized by our regulators and we are seeing an influx of inquiries some boiler burners at a corporate level rather than individual sites.

Speaker 4: A growing recognition is also evidenced by the reception we received at such prominent boiler manufacturers as Hearst Boiler Company.

A growing recognition is also evidenced by the reception we received at such prominent boiler manufacturers is hedged for the company.

Ben Deller: Just be the wild since our last update. I am happy to share our progress with you.

Ben Deller: Before I begin, I want to congratulate Brent on his recent promotion to Chief Financial Officer. Brent has undertaken an expansive transformation of clear signs accounting functions that is not visible from the outside. This has made our processes much more efficient and also provides an accounting and control system that is structured to enable future growth.

Speaker 4: With this change in our outlook, we see great potential in expanding our strategic marketing resources, culminating in a press release we issued on August 1st, announcing that Ms. Tina Madichukwu has joined ClearSign as Director of Customer Relationships and Business Development.

With this change that outlook, we see great potential in expanding our strategic marketing resources, culminating in our press release, we issued on August 1st announcing that Ms. Tina.

Chuck you has joined <unk> as director of customer relationships and business development.

Speaker 4: We are delighted to have found and attracted a person of such outstanding talent and experience as Tina.

We are delighted to have found an attracted a person of such outstanding talent and experience as Tina.

Ben Deller: On today's call, I will review our business segment starting with Process Berners and discuss both the hydrogen burden development project as well as our other in process projects and pipeline. Then I will touch on the progression in our boiler burner business and then provide an update on our business in China and the developments there. We also have developments with our collaboration, partner Noryong Corporation, who is developing applications using our sensing technology and will give more insight into this progress.

Speaker 4: Her experience, most recently at Baker Hughes, includes a stellar record of developing strategic initiatives, expanding business footprints and growing sales.

Her experience.

Recently, a Baker Hughes includes a stellar record of developing strategic initiatives expanding business footprints and growing sales.

Speaker 4: That combined with her entrepreneurial drive makes her a very welcome addition to our ClearSign leadership team.

That combined with her Intrapreneur real drive makes it a very welcome addition to our class on leadership team.

Speaker 4: Tina has truly hit the ground running and I very much look forward to working with her as we grow the ClearSign business.

Ciena has truly hit the ground running and I very much look forward to working with her as we grow the <unk> business.

Speaker 4: Before moving to the concluding phase of this call, I want to reflect back on one detail of our financials that Brent alluded to, and is not readily apparent from the financial tables in the 10Q.

Before moving to the concluding phase of this call I want to reflect back on one detail of our financials that Brent alluded to and is not readily apparent from the financial tables and the 10-Q.

Ben Deller: Before I go into detail on our individual product lines, I want to give a little high level insight into our operations over the last few months, because we make announcements of sales, grant awards and other significant events. There's really only on these scores we get to give some insight into the cooking that goes on in the kitchen. We have completed the engineering design of burners for two different heaters and heat those up for cost to a testing in the first burn is fabricated and scheduled to install in the test furnace next week to begin the testing process.

Speaker 4: The second quarter of 2023 was our first cash positive quarter, excluding capital raises.

The second quarter of 2023 was that first cash positive quarter, excluding capital raises we.

Speaker 4: We did receive some benefit from climbing of our collections, but nonetheless, we see this as a mark of our commercial progress. So looking for design's

We did receive some benefit from timing of our collections, but nonetheless, we see this as a mark of our commercial progress.

So looking forward to the rest of the year 2023.

Speaker 4: For both our major product lines we will be busy completing and starting up the three boiler burner orders currently in progress.

For both of our major product lines, we will be busy completing and starting up the three boiler burner orders currently in progress.

Ben Deller: We've also completed the design and fabrication of the three boiler burners. Two in California, one of these is installed and awaiting commissioning and the other is scheduled to ship the customer site in the coming days. And the third is for the chemical plant in Texas. This burners completed and ready for collection by a customer. On top of this, there's been a lot of engineering and design progress in preparation for our hydrogen burner project.

Speaker 4: The two in California clear some will act in support of California boiler and their subsidiary road combustor.

Between California Class I, and we'll act in support of California boiler and their subsidiary road combustion.

Speaker 4: For the heater in Texas, we will work directly with our client and our chemical plant end user.

For the heater in Texas, we will work directly with our client and a chemical plant and use it.

Speaker 4: We also have significant work to complete with our ProcessBurner collaborative partner, Zico.

We also have significant work to complete with our process burner collaborative partners Zika.

Speaker 4: This includes conducting the customer witness demonstration for the burners to retrofit the two heaters announced this past May 18th, and then the manufacturer of those burners, and also the remaining manufacturer of the burners for our first two California heaters. That order was first announced in March 2022. In addition to this,

This includes conducting the customer witness demonstration for the burn is to retrofit. The two heaters announced this past may 18th and then the manufacturer of those banners and also the remaining manufacturer of the bonus for access to California heaters that order was first announced in March 2022.

Ben Deller: We have structurally assigned to be highly scalable, but as these aren't the first commercial orders to be processed, there has been a significant amount of front-loaded engineering and development and also coordination with the fabrication vendors to iron out our production processes. We believe that this is a feature of early production that we expect not to occur as we reach scale like system order flow. These first boiler burner orders and first large size process burner orders are very significant for us, not only in terms of establishing our technology in the market, as I've trusted you.

In addition to this we are finally conduct a demonstration of that.

Speaker 4: process burner technology, the key stakeholders in the refining and petrochemical industry.

Process burner technology to key stakeholders, and the refining and petrochemical industry.

Speaker 4: We'll also be developing the new commercial hydrogen burner as the first stage of our just announced SBIR funded technology development program and look forward to setting up the first testing phase of our project.

We will also be developing the new commercial hydrogen burner.

The first stage of our just announced SBA all funded technology development program and look forward to setting up the first testing phase of that project.

Speaker 4: I look forward to working with Tina and the California Boiler team to develop our marketing and sales strategies to take advantage of the operating reference installations we greatly anticipate in the coming months.

I look forward to working with Tina on the California boiler teams developed a marketing and sales strategies to take advantage of the operating reference installations, we greatly anticipate in the coming months.

Ben Deller: So while the first part of the year was heavy with announcements of initial commercial sales, but in process burner and boiler burners, understand that there's a lot of work in executing these first sales to pave the way for future growth, both in getting our products in the field, but also in getting our project flow, scalability, and coordination dialed in. Concurrent with this work, the operations team is also engaged in the consistent preparation and follow-up support of customer proposals.

Speaker 4: We are of course also promoting our process burner technology and greatly look forward to having our current orders in operation starting early 2021.

We are of course also promoting our process burner technology greatly look forward to having our current orders and operation starting early 'twenty one.

Speaker 4: early 2024 and leveraging these to assist our sales and business development activities.

Early 2024, and leveraging these to assist our sales and business development activities.

Speaker 4: Our eyes will also be on China, anticipating both the certification of the midsize 500 horsepower boiler burner and also our first sales and marketing outreach with Zhuangliang, and introductions to the governments and business officials in the regions of China requiring compliance with the new learn-ops emissions regulations.

I'll also beyond China anticipating both the certification of the mid sized 500 horsepower boiler burner.

And also our first sales and marketing outreach with strongly all on introductions to the governments and business officials in the regions of China, requiring compliance with the new low Nox emissions regulations.

Ben Deller: With that said, I'll move on to our process burner segment. Many of you will have seen our announcement regarding the receipt of the Phase 2 SBIR grant from the Department of Energy, from 100% hydrogen-capable, ultra-lone ox burner development and commercialization project. The award was confirmed late in the day August 25th and our announcement was made Tuesday morning this week. This grant is for up to $1.65 million and follows the previous Phase 1 grant for $250,000 that allowed us to demonstrate the capability of our technology to achieve very low-lox emissions over fuels ranging from 0 to 100% hydrogen. This testing was completed in the facilities of Zego Inc, at Collaborative Partner, as served as a successful proof-of-concept demonstration.

Speaker 4: On the investor relations side, we have released a new updated investor deck, which is now included on our website and was included in our recent 10Q.

On the Investor Relations side, we have released a new updated Investor day, which is now included on our website and was included in our recent 10-Q.

Speaker 4: With that, I'd like to open up the call for questions. Please operate it.

With that I'd like to open up the call for questions. Please operator.

We will now begin the question and answer questions.

Speaker 1: To ask a question, you may press star, then one on your touch tone phone. If you are using the speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star, then two. At this time, please press star, then two.

Ask a question you may have.

One on your Touchtone phone.

You are using a speakerphone please pick up your hand.

Okay.

Julia question.

Thank you.

Okay.

Pause momentarily.

Speaker 1: Our first question comes from from you, Joshi with a TV and drive.

Our first question comes from <unk> Joshi.

Ben Deller: The second grant is for up to two years and will fund the development and commercialization of a full range of burners that will enable the reduction of mox emissions to the levels required to control ground level ozone in critically We believe that these burners will be a necessary part of the adoption of the new hydrogen economy and use of hydrogen-fold fuel for industrial heating. The anticipated outcome is to achieve reductions in industrial emissions of both carbon dioxide and nitrogen oxides without the need of catalytic clean-up devices and the hazards and costs of ammonia and the catalyst that accompany them.

Please go ahead.

Speaker 5: Hey guys, thanks Jim, Brent for taking my call. Brent, congratulations on the promotion.

Hey, guys. Thanks, Jim Brian for taking my call congratulations on the promotion.

Thank you Jeff.

Speaker 5: Just a few clarification from the order flow and the expected deliveries during 2023. The two California burner and the Texas burner, are they expected to be delivered during 2023? That is, are these revenue recognition opportunities for 2023?

Just a few clarification from the order flow on the expected deliveries.

Doing things.

The two public holding a burner.

Boxes.

We expect it to.

We believe we are doing.

Alright.

These.

Revenue from our broking.

When you can easily.

Ben Deller: As we have highlighted previously, the current available burner solutions are able to reduce CO2, but the bioproduct is much higher in NOx. Our novel burner enables zero CO2 by burning pure hydrogen and creates NOx emissions so low that they compete with SEIRs in the single-digit parts per million range. From a compliance perspective, our customers will still be required to maintain under the NOx. The mission limits of the operating permits when adding or switching to hydrogen as a fuel gas.

Okay.

Pardon me if I am.

Thanks for the question yet.

Speaker 4: The boiler burners in production at this time are scheduled to...

At the boiler burners and.

In production at this time all scheduled to.

Speaker 4: complete and they will ship and we're expecting them all to

All complete and they will ship and we're expecting them all to.

Startup this year.

Speaker 5: Okay, and just another clarification on that. I know your process heater burners are multiple orders. Are these boiler burner orders, like single boiler burners, or are they multiple boiler burner orders?

Okay, and then just another clarification on that I know your process heater burner multiple.

Orders are up.

Ben Deller: We anticipate that the increase in NOx emissions resulting from the use of hydrogen will result in the need for a significant number of industrial and commercial burners to be replaced. There has been a notable interest in this project and product line and we already in discussions with potential customers and other stakeholders regarding the future deployment and in particular early adopter opportunities for this new hydrogen-focused burner technology.

These boiler burner orders.

Single boiler.

Boneless or.

The multiple.

<unk>.

Yes.

Speaker 4: Smith, that is a great question. The three orders that we are...

So I mean that is a great question. The the three orders that we all.

Speaker 4: In the process of completing and then shipping for jobsite and actually starting up at present, those are three single burner orders.

Okay, and the process of completing and then shipping to the job site and actually starting up at present those all three single burner orders.

Speaker 4: However, looking forwards, there are...

However, looking forwards they're all.

Ben Deller: This project is just getting started, but we have been planning for this in anticipation of this news. The first phase of our activities are to complete the detailed design of the first prototype production type burner and then set this up for testing and optimization. We will provide updates as we pass significant milestones in this program.

Speaker 4: Mortal burner opportunities in in that market segment and incline

Multiple better opportunities in that market segment.

And claims with inquiries.

Speaker 4: who are asking about a larger range of boilers to be retrofitted at once. So just to clarify, the three we have at present are single burn orders, but that is not always going to be the case looking forwards.

Asking about a a larger range of August to be retrofitted at one so so just to clarify the three we have a presence all single button orders, but that.

Ben Deller: Turning to the projects in our production pipeline. Just to remind everyone, we have orders in production that will replace burners in four multi-burner heaters situated in two different refineries in California. Regarding the order for two heaters that was released back on May 18th, this order is for two multi-burner heaters which encompasses 13 burners in total. The order is a repeat order for my customer who was an early adopter of our technology in Southern California.

It is not always going to be the case looking forwards.

Speaker 5: Yeah, what is interesting is one of the Texas burner is actually going in a non boiler application. I heard it right. Can you talk a little bit about that application and the scope or the opportunities set there.

What is interesting is the one off the road.

Okay.

And then on the.

Obligation I think I heard it right.

Yes, I didnt talk about that application and the scope.

The other opportunity.

Yeah.

Speaker 4: I can. You know, the end user has, as with many unfortunately, has not given us permission to use their name. But this application is going into a chemicals company. So unlike a boiler, this is a process heater.

I can.

The end user has as with many unfortunately has not given us permission to.

Ben Deller: Also, as we have mentioned and is quite important, this customer came back to clear sign after initiating an alternative option to install a traditional selective catholic reduction or SCR NOx control system and inherent complexities associated with such a system. Additionally of note regarding this project is that the fuel gas includes hydrogen, which can make up to 80% of the volume. This supply will give us not only two valuable installations validating our technology, but also installations demonstrating our capability to control NOx emissions from fuel gases containing high concentrations of hydrogen as expected to be an increasing need and of increasing value in the future. The fabrication that these burners is initiating and delivery to the client is expected in the first quarter 2024. We very much look forward to completing this project and seeing these burners in operation.

If you use their name but this.

Application is going into a chemicals company. So unlike a boiler this is a a process heater.

Speaker 4: The burner was actually sold to a very well-known Tulsa-based heater manufacturer, Tulsa Eaters Midstream.

The the burden was actually sold to a node.

<unk>.

Tulsa based heater manufacturer Tulsa heaters midstream.

Speaker 4: who have a significant range of heaters that they sell into...

Do you have a significant range all of it is that they sell into.

Okay.

Speaker 4: many areas of the market, certainly for gas processing and obviously here in this case to

Many areas of the market suddenly for gas processing and obviously here in this case too.

Chemicals plant.

Speaker 4: The burner is a boiler burner, a design. It's the same burner, it's mounted horizontally into this heater. And it is a...

Boehner is a boiler burner.

Design it it's the same boat mounted horizontally into this heater.

And it is a.

Speaker 4: heater with a single burner. So the arrangement of the burner in that regard is similar to a five tube boiler and that's why this burner is a...

Pizza with a single bonus or the arrangement of the bedroom in that regard. It is similar to a fire tube boiler and that's why that's been.

It's a good fit.

And.

Speaker 4: And also what's good is that the emissions we can achieve in this heater are in the same range as what we achieve in the fire tube boilers. So meeting these very low single digit NOx guarantees is right.

And also is good is that the emissions we can achieve in this heat or are in the same range as what we achieve in the fire tube boilers. So meeting these are very low single digit not guarantee Nox guarantees is.

Ben Deller: Our other 20 burner California project is also progressing well. As we updated previously, the final witness testing went as planned and we are now in final stages of completing computer modeling of the flow patterns inside the customer's heater and also preparing for the fabrication of the burners for delivery to our customer site. We are scheduled to be fully complete with a manufacturer and delivery of our burners early in 2024, which will largely complete this order.

Right in our wheelhouse.

Okay. Okay. Thanks for that.

Speaker 5: Thanks for that. On the process heater burners, again another call is clarification. The two refinery multi-burner orders, are they 13 each or is it 13 combined for the two orders?

On the process.

Heater burner.

Again, none of the call.

Clarification.

<unk>.

Finally, our multi.

Ben Deller: At this time, we do not have confirmation whether the site shutdown during which these burners will be installed will be undertaken in 2024 or 2025, which is dependent on our client's plans and scheduling. Very mind that there are a lot of activities included in this refinery shutdown, so the planning process is complex and dependent on many factors. We will be able to invoice and receive payment upon delivery of the burners and only a small part of the purchase order remain until installation.

Are the other proteins.

Is it.

Combined.

To order.

Speaker 4: No, it is one order of...

No. It is one order of.

Speaker 4: 20 and one order of 13.

'twenty and one order of 13.

Got it.

Yes, yes.

Speaker 5: Thanks for the platforming on that 20 burner order as well.

Thanks for the clarifying on that.

On that 'twenty, one not argue that as well.

Speaker 5: So, moving on to these grants received by Naryan and yourself, what is the involvement of ClearSign in the Naryan project? Is there any benefit for you when you receive part of the monies or will you have to expend some of your cash to support this effort?

So we want to.

Ben Deller: 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 and details are informative specialists from the industry, investors and other stakeholders alike. As part of our promotional activities, we plan to use these burners, use for the witness demonstration and to host an industry over the house at our partner Zika's facility. The burners that we used in the burner testing were not part of the final production run and will not be included in the shipment to California.

Grant.

By now you and yourself.

What does the.

Enrollment of U S line.

And in the value.

Project.

Is there any benefit for you recoup part of the money or will you have to explain some of your cash to support this effort.

Okay.

Speaker 4: Long term, the reason that we have formed a relationship with Narayan is certainly for the financial benefit of ClearSign. It probably helps, you know, for others listening as well, we've not talked about Narayan a lot in the past, but Narayan is a specialist company based in Seattle. We formed a collaborative partner.

Long term the reason that we have formed a relationship with l'oreal is certainly.

Ben Deller: These burners will be kept for demonstration purposes for potential customers and stakeholders. We have additional customer demonstration events planned for the coming months. As I have said in the previous call, these burners demonstrate NOx emission numbers significantly below the 5 ppm guarantee and robust performance throughout their operating range. This is important because in this industry, while we have presented and promoted our burner technology, for most industry people, seeing in person is believing.

For the financial benefit of class on it probably helps for others listening as well we've not talked about now around a lot in the past, but northern is a specialist company based in Seattle.

We formed a collaborative partnership with them.

Speaker 4: because they have the expertise in technology and market areas which are not core to our expertise within ClearSign.

Because they have the expertise in technology and market areas, which are not core to our expertise within clear sign.

Speaker 4: but in which our sensing technology can have a very significant role. So we've partnered with Narion to enable them to develop and commercialize applications in areas outside of the typical combustion industry that is codifying sources. And we're trying to ordered it to a certain degree to meet certain × 2,000,000 coffeeri ph

But in which our sensing technology can have a very significant role.

Ben Deller: And now we've gone to developments in our boiler burner product line. On the last call, we spoke about our first three boiler burner sales, two into California and one into Texas. These will be our first installed customer orders of clear sign core burners, between California, which are for five tube boilers branded and sold as a rogue burner.

So we partnered with <unk> to enable them to develop and commercialize applications in areas outside of the typical combustion industry.

That is the core business of class side.

Speaker 4: So the grant that Narayan has received is...

So the the grant that now around has received is.

Speaker 4: going to fund their research and development of this sense of fourth layer applications.

Going to fund their research and development.

All this sense of full flavor applications.

Ben Deller: This is meaningful because it provides a start of a developing install base and the process of getting our products out into the field. We will actually have five deployments. As with the first sale, we also deployed the 500 rental boiler from our partner, California boiler. And we have just early this month commissioned another smaller 125 horsepower rental boiler, again fitted with a clear sign core rogue burner in Oregon. The first rental boiler, the larger 500 horsepower, was set up and has now been in operational service for several weeks, and Operating Smoothly as expected.

Speaker 4: It's going to be executed entirely by NARION. There is no cache outlay from ClearSign's side. It helps them fund the project, but the end result of this project is that it's going to be executed entirely by NARION.

It's going to be executed entirely by now there is no cash outlay from class lines side.

It helps them fund the project, but the end result of this projects.

Speaker 4: assuming they are successful, will be a product that contains the ClearSign sensor and will result in a licensing arrangement from ClearSign to NARAN to allow them to use our technology and that will provide the revenue to us.

I mean, they are successful.

It'd be a product that contains the class I and sensor and will result in a licensing arrangement from klas on tomorrow and to allow them to use our technology and that will provide the revenue to us.

Mhm yeah.

Speaker 5: No, makes sense. It's sort of an investment in terms of time and a little bit of money at this point.

That makes sense.

It's sort of a investment.

I'm a little bit of money at this point.

Yes.

Yeah.

Speaker 4: So just to add a little, just for those listening regarding NARION, the NARION, this one flare grant that NARION has is a, you know, it gives them funding, it helps accelerate that project.

So I think just to add a little just for the others listening.

Ben Deller: Some of you may have seen our posting and posting smart collaborative partner, California Boiler, and their subsidiary Road Combustion on linked end regarding this. This first boiler order was sold into a medical and business waste services company and was sold by a partner, California Boiler, into the Soundworking Valley air pollution control district of California. This new boiler complete with a road burner is now installed and expected to be commissioned and put into service next week.

Regarding now the button.

But now in.

This one playground that northern has as I know it gives us funding it helps accelerate that project.

Speaker 4: But the reason we partnered with them, they have, like I said, expertise and engagement and they are pursuing projects in many areas. They have like aerospace and transport and you know some very huge global field that ClearSign just did not have the expertise in. So while they're a very small company, we're actually very excited about the long-term potential of this collaboration with Narayan.

But the reason we partnered with them they have but.

So, let's add expertise and engagement and they all pursuing projects in many areas they have.

Aerospace and transport.

Some very huge global failed the class I just did not have the expertise and so.

While there are a very small company, we're actually very excited about the long term potential of this collaboration but not really.

Ben Deller: We look forward to having this operational and providing our first permanently installed commercial reference site. The second order was also sold into the California market to a national provider of recycling services. Our burner and the we part of a recycling plant upgrades that will increase energy efficiency for one of this customer's nationwide sites. We believe that this second burner in particular will truly set the bar for boiler burners. This burner is larger and is in the size range requiring sub 2.5 ppm nox emissions, a capability that we believe is unique to Clearsign burners.

Understood Thanks for that color.

Speaker 5: Thanks for that, Kallur. On the other SBIR Phase II grant for the Hydrogen...

On the other.

To ground.

Hum.

Speaker 5: I know the phase one, Zico was involved. For phase two, will that involvement include Zico? Will we continue to be your partner for that effort?

I know the phase one ricoh was enrolled.

Pleased to.

Enrollment.

We hope we can continue to be a partner on that.

But oh.

Speaker 4: Yes, very much so. We have, even during the application process, we have support letters provided by

Yes no.

Very much so we have.

Even during the application process we.

And we have support that is provided by.

CECO we.

Ben Deller: All other solutions for nox emissions at this level require the inclusion of an SCR and associated capital costs and ammonia handling that go with them. The new boiler of this site is being supplied by Hurst Boiler Company, the largest manufacturer of fire tube boilers in the United States. This burner will ship to California from our fabricator in Tulsa in September and is expected to be installed and commissioned in the fourth quarter this year.

Speaker 4: We will continue to work with them. They've been an excellent partner for us. If you want to join those, please just enter because we are very far off the teleMet Hug grant you may be required to complete by » It will not be a loop and be

We will continue to work with them they've been.

An excellent partner for us.

The project involves.

Speaker 4: Developing the commercial product line, and that includes scaling it up and demonstrating that burner over a range of sizes up to much larger sizes, by using the multiple test furnaces available at Sego are a critical part of the process.

Developing the commercial product line and that includes scaling it up and demonstrates in my Bene over a range of sizes up to much larger sizes. So using the multiple test furnaces available at CECO.

Are a critical part.

All of this project.

Understood.

Speaker 5: And then the last question on China. You're expecting a certification of some form by the end of this year, fourth quarter.

Ben Deller: We visited Hurst Boiler Company with California boiler back in late July as part of our marketing and sales program. This gave us the opportunity to see the boiler in production and also provided a good opportunity to discuss strategic sales avenues and approaches to promoting our burners into new boiler inspirations across the country.

And then the last question on China.

Youre expecting certification.

Some home.

By the by the end of this year.

Fourth quarter.

Speaker 5: Is this expected to be sort of a blanket certification? And does this pertain to the district heating opportunity that we have spoken in the past?

Or is this.

Is this expected to be sort of a blanket.

Sure.

Certification.

This work into the district heating opportunity that we have spoken in the past.

Ben Deller: The third boiler burner sale was unique. In the fact that it is our first application of our boiler burner technology into a non boiler heater and very importantly, our first sale into a heater manufacturer who has included our burner as their chosen solution to meet their customers needs. Also, it was our first sale into Texas. After California, we anticipate that the Texas Gulf Coast region will be the next large market for us.

Speaker 4: Mr. Marge, I apologize, could you repeat the last part of your question, please?

Okay. So Mike I apologize could you repeat the.

The last part of your question. Please.

Speaker 5: Yeah, so I think in the past we talked about a lot of municipal heating or district heating in China.

Yeah, So I think in the past we talked about.

A lot of our municipal heating or district heating.

Ah Okay in China.

Okay. According to that.

Speaker 4: Okay, so let me, I'll take these one at a time. Be... Yeah, I confirmed the certification process. We expect to...

Okay. So let me I'll take these one other time be yes, I confirm the certification process, we expect to.

Ben Deller: Lastly, the sale is also the first for this global chemicals company and the first industrial chemicals sector. This burner is fully fabricated and ready to ship to the job site. As we have said before, we are very encouraged by the early boiler burner orders and installations in multiple markets this year, but we are also encouraged by our list of outstanding proposals and afford to add into this list. We do believe that these early deployments will be a catalyst for additional orders, both through the provision of references to which Respective Customers, Camera Thur, and gaining confidence in our technology as they do, and also through the promotion of our solutions and general awareness of our technology in the industry that we expect to resolve from the peer-to-peer business to business communications within the industry and businesses related to it.

Speaker 4: certainly complete this year. You know, for rough timing, the burner is actually installed. We look to actually complete the firing this month.

Certainly complete this year.

For rough timing the bonus actually installed we look to actually complete the firing this months.

Speaker 4: But then it will typically take some time for the Chinese...

But then it it will typically take some time for the Chinese.

Governments too.

Speaker 4: complete their processing and deliver the certification certificate. We believe that that will take

Complete that processing and delivered the certification is difficult we believe that that will take.

Speaker 4: somewhere in the order of two months, but with the caveat, we know that they have also been affected of COVID within China, but it is a, you know, are we highly expect that we will receive that certification by the end of the year.

Somewhere in the order of two months, but with a caveat we know that they have also been effects of COVID-19 within China, but it is a.

While we fully expect that we will receive that certification by the end of the year.

The.

Speaker 4: The goal in China with Shuangliang is definitely to develop a complete range of burner sizes in China, not just the burner. But our relationship with Shuangliang, it also includes us collaborating with them and providing an integrated boiler burner package.

Yes.

<unk> in China with strong long is definitely to develop a complete range of sizes in China, not just the Buena travel.

But our relationship with strongly on.

Ben Deller: We believe also that providing a simple cost-effective and ammonia-free solution to a new, near-zero, nox requirements will be recognised by other air districts within and outside of California, and provide preferences where they develop modifications to their clean air regulations.

It also includes us collaborating with them in providing an integrated boiler.

And our package so strongly along as a boiler manufacturer in fact, one of the biggest in China.

Speaker 4: So, Xiongliang is a boiler manufacturer, in fact, one of the biggest in China. This will enable them to sell a NOx compliant boiler into their client site.

This will enable them to sell a not compliant oiler.

Into the right.

Ben Deller: Now turning to China. Our President of Asia, my name and enders, is back in the country now. He has two main objectives in the near future. The first is to complete the commissioning of the 500-horsepower, Firetube, Oiler, and Burner installed on the side of our collaborative partner, Shwongliang, and then completing the government certification process. The 500-horsepower Burner is expected to complete certification in the fourth quarter of 2023. As we have mentioned in the past, Shwongliang is one of the largest boiler companies in the world. For them to contribute the assets and manpower that they have to date is a direct reflection of their perception of how potentially market-moving our technology is for the Chinese market.

Client sites.

The.

Speaker 4: Burners we're working on are fine-tube boiler burners, and we've actually reprioritized in China because the regulations in China that control knocks have been imposed now also.

Good news, we're working on our <unk> boiler burners, and we've re prioritized in China, because the regulations in China that control marks have been imposed now also.

Speaker 4: in industrial regions of China. We've mentioned Shenzhen before down on the south coast.

In industrial regions of China.

Engine Shenzhen before down on the South coast.

Speaker 4: These regions have a lot of boiler burners from a clear time perspective. One, this is a very high volume market.

These regions have a lot of boiler burners.

From a class all players on perspective wellness is a very high volume market.

Speaker 4: And there's also a product line that we have already proven. We have these burners now operating in California. We've proven we can do them. We have them source tested by third parties in California and we have operating experience of them. So it makes it a very relatively easy product for us to now commercialize in China.

And there is also a product line that we have already proven we have these been is now operating in California, We've proven we can do them.

We have them source tested by third parties in California, and we have operating experience all of them.

It makes it a very relatively easy product for us to now commercialized in China.

Ben Deller: On the assumption that the Firetube-a-horsepower Burner model gets certified, but the clear signage Shwongliang are in agreement that we will eventually have an entire swires range of boiler-burners to offer into the Chinese market. To put this range into perspective, the rental boiler and operation in California is a 500-horsepower model. The burner being installed into the new first boiler, or recycling company is a larger burner at 1200 horsepower. While the way services boiler burner is a smaller 300-horsepower model, we believe we are well positioned to scale up or scale down our burner designs, and that we can do this to fit this large demand segment in China.

Speaker 4: So with the changing regulations and the development of our fine-tube oil and burner business in California, we've really pushed and and strongly have been most receptive to developing that product line first. That said, we do have the relationship with the Beijing...

So with the changing regulations and the development of our <unk> boiler burner business in California, we really pushed in and strongly won't be most receptive to developing that product line first Matt.

Sad.

We do have the relationship with the Beijing District heating group.

Speaker 4: We do still have the water tube boiler for them on the road map. This is really just a reprioritisation.

We do still have the water tube boiler by the for them on the road map. This is really just a re prioritization.

Speaker 4: so we can take advantage of this newly developing opportunity that we think is going to be one most readily available to us, I mean I just think very lucrative.

Patients. So we can take advantage of this newly developing opportunity that we think is going to be while most readily available to us.

Very lucrative.

Speaker 5: I understood. So the water tube opportunity remains, but this is a more near term and significant opportunity as well. So is that... Yes. Did I understand that? No.

Understood.

The water tube opportunity remains but this is a more.

Near term.

Significant opportunity as well so is that yes did I understand that.

Ben Deller: The second activity is the promotion of our technology and our joint integrated boiler-burner package with Shwongliang in the regions of China that have recently implemented new low-notch requirements or areas that are in the process of doing so. The likely first visit will be to Shenzhen with Shwongliang to promote our joint capabilities and unique offering to both customers in their area and also the local government officials responsible for administering the new air quality standards. As we said in the last call, Shwongliang has not gone through all of the investment, effort and disruption with their anticipation that they will sell a handful of clear-signed burners.

Yeah, well thanks, Thanks for taking my questions.

Thank you Matt.

Speaker 6: The next question comes from Robert Kecksek with Las Colinas Capital Management. Please go ahead.

The next question comes from our Opex take frankly, Las Colinas Captor mine was frankly just go ahead.

Ben Deller: Shwongliang has much bigger aspirations.

Hello, Jim.

Speaker 3: Yeah, I wanted to maybe simplify on the sales. Is there some way that you could report?

Yeah, I wanted to maybe I'll simplify on the sales is there some way that you could report Hum.

Sales order backlog.

Speaker 3: So it maybe kind of simplifies it for the investors.

So maybe kind of simplify the further investors.

Speaker 3: In other words, perhaps what backlog we have estimated for this year. And so far what what would be approximately estimated for. The following year 2024 at the present time. I'm sorry.

In other words, perhaps what backlog we have estimated for this year and.

And so far what what would be approximately estimated for the following year 2024.

Ben Deller: On July 13th, we issued a press release announcing developments with our collaborative partner Nareon Inc. Nareon is a specialist company developing applications of our sensing technology outside of the Flames Venser clear-signed eye that we are promoting ourselves. In a notable development announced July 13th, Narin was awarded a 250,000 SBAR grant to develop a sensing and controlling technology to solve a major need of improving the efficiency by reducing the steam consumption of large flares in the refining and patch chemicals industries.

At the present time.

That's helpful. Bob if I can.

Yes.

Sorry about go ahead of him I cut you off I didn't mean to sorry.

Oh, Oh, Oh, you cut me off you couldn't hear me.

Yeah.

Speaker 4: Sir, I thought your question was continuing. I didn't mean to stop you.

That's what I thought your question was continue I didn't mean to stop here.

Speaker 3: No, no, I just was asking about the possibility of order backlog reporting. Yeah, okay, you know, it's great to hear. I'm absolutely wonderful to hear the individual orders and stuff, but to kind of summarize maybe for investors, I didn't know whether that would be possible to...

Oh no no I just was asking about the profitability of order backlog reporting.

Yes.

Okay.

It's great to hear I'm, absolutely wonderful to hear the individual orders and stuff, but just kind of summarize maybe for investors I didn't know whether that would be possible to.

Ben Deller: The objective of this technology is to ensure the complete destruction of waste gases from refining processes, but importantly also to do this in a way that is energy efficient, which would reduce the CO2 footprint of flaring operations and reduce the client's fuel costs. This work is underway and we will provide updates of significant developments in the future.

Speaker 3: say like a 2023 backlog and what we're looking at now for 2024 backlog. I've just sales revenue.

Say like a 2023 backlog and what we're looking at now for 2020 for backlog.

Of just sales revenue.

Speaker 3: estimate. Sure. Yeah. Yep. Well, I can. You know, I think it may...

Estimate sure.

Yeah, Bob I can.

I think it makes most sense to give.

Speaker 4: to give you the tools a good average price for our burners is 100,000.

Let's give you the tolls are good average price for a bonus.

Ben Deller: With no total custom orders in production and starter across both of that major product vines, we are at a significant transition point in the development of Clearsign. Achieving an install base is sufficient operational time for our customers and the engineering companies and consultants who support them to recognize and trust the efficient and ammonia-free knocks controlling solutions we provide is a major strategic objective in that path to fall commercial operations. That technology is being recognized by air regulators and we are seeing an influx of inquiries, some for boiler burners at a corporate level rather than individual sites.

$100000 of banner.

Speaker 4: We do give the number of burners in the house we make of the oil.

We do give the number of burners and and announced we make off.

The orders we received.

Speaker 4: The process burners have a significant amount of engineering attached to them. So you can add over

The the process furnace happens to a significant amount of engineering attached to them.

So you can add of 200000.

Speaker 4: to that number. Now with that way, I think you've got a simple tool to get reasonably close to the order values as they come in. And of course, from the queues, you can track the revenue that's recognized, the difference being the backlog there.

Two to that number.

Now with that way I think you've got a simple tool to get reasonably close to the order values.

As they come in and of course from the Qs you can track the avid revenue that's recognized the difference being the <unk>.

Ben Deller: Our growing recognition is also evidenced by the reception we received at such prominent boiler manufacturers as her to boiler company.

The bulk of that.

Work in progress.

Speaker 4: I think we've seen looking forwards there are so many factors in the market. I don't think it's reasonable to actually give a you know, an expected number, especially not at this stage of a forward-looking sales expectation. I'm very encouraged by what we see both on the process burner and the product line.

I think we've seen looking forward. It's there are so many factors in the markets.

Ben Deller: With this change in our outlook, we see great potential in expanding our strategic marketing resources, culminating in a press release we've issued on August 1st, announcing that Ms. Tina and the Chuck Hughes has joined Clearsign as director of customer relationships and business development. We are delighted to have found and attracted a person of such outstanding talent and experience of Tina. Her experience, most recently at Baker Hughes, includes a stellar record of developing strategic initiatives, expanding business footprints and growing sales.

Don't think it's reasonable to actually give a.

Unexpected number, especially out of this state of a.

Forward looking sales expectation I'm very encouraged by what we see both on the process Ben on the and the broader product line.

Speaker 4: But at this point I don't think it's reasonable to give a future looking number.

But at this point I don't think its reasonable to give a.

Hi.

A future looking number but hopefully that.

Speaker 4: Just as round numbers are a useful tool for assessing the

But just as round numbers.

A useful tool for assessing the.

Speaker 4: the value of the orders that we've booked in. And of course the queues will give you the revenue that's recognised on a quarter by quarter basis.

The value of all the orders that we've booked in and of course, the Qs will give you the revenue that's recognized on a quarter by quarter basis.

Ben Deller: That combined with entrepreneurial drive makes a very welcome addition to our Clearsign leadership team. Tina has truly hit the round running and I very much look forward to working with her as we grow the Clearsign business.

Sure.

Uh huh.

Speaker 3: I just wanted to make mention of this on the call. It's not directly related to the products, but I did hear from an industry executive that in China they completed the construction of 82 new coal plants.

I just wanted to make mention of this on the call. It's like it's not directly related to the products but.

I did hear from our industry executive.

Ben Deller: Before moving to the concluding phase of this call, I want to reflect back on one detail of our financials that Brent alluded to and is not readily apparent from the financial tables in the 10Q. The second quarter of 2023 was our first cash positive quarter excluding capital raises. We did receive some benefit from climbing of our collections, but nonetheless we see this as a mark of our commercial progress. So looking forward to the rest of the year 2023, for both our major product lines we will be busy completing and starting up the three boiler burner orders currently in progress.

In China they completed.

The construction of 82, new coal plants power plants.

Speaker 3: power plants in 2022.

In 2022.

Speaker 3: and their intention is to do over 90 cold plants in the 2023 year.

And their intention is to do over 90 coal plants.

In the 2023 year.

Speaker 3: And I just thought that was kind of a spectacular number.

I just thought that was kind of a spectacular number.

Speaker 3: I was wondering, does that anyway relate to their growth or does that make our market any bigger? I realize we don't put our equipment in coal plant and power plant.

I was wondering.

Does that does that any way relate to I mean, there are growth or does that make our market I know I.

I realize we don't we don't put our equipment or coal plants and power plants.

Ben Deller: The two in California, Clearsign will act in support of California boiler and their subsidiary road combustion. For the Header in Texas we will work directly with our client and our chemical plant and user. We also have significant work complete with our process burner collaborative partner Ziko. It includes conducting the customer witness demonstration for the burners to retrofit the two heaters announced this past May 18th and then the manufacturer of those burners and also the remaining manufacturer of the burners for our first two California heaters that order was first announced in March 2022.

Speaker 3: But as far as the whole eating thing that we've been trying to get into and get started.

But as far as the whole.

Eating thing that we've been trying to get into and get started.

Speaker 4: Yeah, I don't know, it's hard to relate that directly to what we do. But I think it's a good general point. We talked a lot about the China market and why we're pursuing the China market and the effort we put into China. And I think with China being so far away, sometimes that raising is lost.

Yes.

Bob.

I don't know, it's hard to relate that already to what we do but I think it's a.

It's a good general point, we've talked a lot about the China market and why why are we pursuing the China market on the effort, we put into China now.

I think we're there.

With China being so far away, sometimes that raising is lost.

Speaker 4: But the data that you mentioned, when you see the magnitude of the investment and just realizing the scope of the industry in China, I think we can start to get a feeling for how large that market can be. And that really is what is driving us in China. We are in a different sector. The coal-fired plant of power generation.

But the but the data that you mentioned when you see the magnitude of the investment and just realizing the scope of the industry in China I think we can start to get a feeling for how large that market can be and that really is what is driving us in China. We are in a different sector the coal fire.

Ben Deller: In addition to this, we have finally conduct a demonstration of our process burner technology, the key stakeholders in the refining and pathogenic industry. We will also be developing a new commercial hydrogen burner at the first stage of our just announced SBIR funded technology development program and look forward to setting up the first testing phase of our project. I look forward to working with Tina and a California boiler team to develop our marketing and sales strategies to take advantage of the operating reference installations we greatly anticipate in the coming months.

Plan all power generation.

Speaker 4: But just seeing the magnitude of the energy need and realize that the small ones that we provide are also energy providers into China. I think it does it....

But just seeing the magnitude of the energy need and realize that the small volumes that we provide also energy providers into China.

I think it doesn't it.

And illustrate the scope of the potential that we see there.

Speaker 3: Yes, and I just want to say how pleasing it is to know how valuable sales is to us that you're able to find.

Yes.

I just wanted to.

Say, how pleasing it is to know how valuable sales as to is.

Ben Deller: We are of course also promoting our process burner technology and greatly look forward to having current orders and operations starting early 2021 early 2024 and leveraging leads to assist our fails and business development activities. Our eyes will also be on China anticipating both the certification of the mid size 500 horsepower boiler burner and also our first sales and marketing average with strongly on and introductions to the governments and business officials in the regions of China requiring compliance with the new loan optimizations regulations.

That you were able to find.

Speaker 3: somebody with Tina's background and experience. And I hope in the future after she's been around for a while we could hear some of her perspective of what she's experienced in our market after, you know, after being there for a time.

Somebody with tina's background and experience and I hope in the future after she's been around for a while we could hear him or her perspective of what she's experienced.

In our market after after being there for a time.

Speaker 4: Yeah, Bob, thank you for that. You know, we were very excited to find someone of.

Yeah, Bob. Thank you for that we we were very excited to find some one offs.

Speaker 4: Tina's Caliber to attract somebody like that is

Chinas caliber.

Track somebody like that is.

No.

Speaker 4: very gratifying to us.

Very gratifying to us she's.

Speaker 4: Hit the ground running. I'm really looking forward to working with Bettina in the future.

He hit the ground running.

Ben Deller: On the investor relation side, we have released a new updated investor day, which is now included on our website and was included in our recent thank you.

Or.

I'm great alone.

Looking forward to work in Montana.

In the future.

Yeah.

Alright, well, thank you very much Jim.

Operator: With that, I'd like to open up the call for questions. Please operate it. We will now begin the question and answer session to ask a question you may press star then one on your touch tone phone. If you are using the speaker phone, please pick up your hands up before pressing the keys to withdraw your question please press star then two.

Thanks for the questions Paul.

Speaker 1: Again, if you have a question, please press star, then one to be joined into the queue. Our next question comes from Kevin Dunn, a private investor.

If you have a <unk>.

Please please start by morning to be joined into the queue. Our next question comes from carbon pardon.

Sir Please go ahead.

Hello.

Can you hear me.

Hi, Kevin good afternoon.

Operator: At the time we will pause momentarily to assemble our roster.

Speaker 7: All right, a long time listener, first time caller, just a few questions. Basically, I've been following you guys for probably five years or so. And I mean,

Alright Uh huh.

Long time listener first time caller.

Just a few questions.

Sameer Joshi: Our first question comes from some year Joshi with it's even right please go ahead. Hey guys, thanks Jim brand for taking my call. Congratulations from the promotion. So you just just a few clarification from the order flow and expected deliveries during 2023 the two California burner and the taxes burner are they expected to be delivered during 2023? Are these revenue recognition opportunities for 2023? Thanks. Thanks for the question. Yeah, the the boiler burners in the introduction of this time are scheduled to All complete, and they will ship, and we're expecting them all to start up this year.

Basically I've been.

Following you guys for.

I'd, probably five years or so and.

And the stock.

I remember popping.

Over $5.

I didn't have any money at the time I got to convince my mom to buy some and then shortly after the stock.

Speaker 7: I convinced my mom to buy some and then shortly after the stock plummeted down to a dollar and it happened after there was an accident and I was like, I don't know how long it

Vomited down to a dollar and it happened after.

There was a exxonmobil tests.

Speaker 7: It was the reason given that's been almost two years since that.

And it was the reason given it's been almost two years now and it was.

Speaker 7: It was delayed and it was quote, there was not enough time for the 2022 turnaround.

It was a delay and it was quote.

There was not enough time for the 2022 turnaround and given that 2023 is almost over like should we expect a.

Speaker 7: given that 2023 is almost over, like should we expect a turnaround in 2024? I don't even really know what a turnaround is.

A turnaround in the 'twenty 'twenty four I don't even really know what a turnaround there.

The honest.

Yeah.

Speaker 4: I think it's a fair question. So the ExxonMobil testing was predominantly a valid...

Yeah, absolutely I think that's a.

Our first question so the so the Exxon Mobil testing was predominantly a.

Validation of our technology.

Speaker 4: They went through the operating conditions of what we believe are all of the Exxon refineries and basically took the

They went through the operating conditions all of what we believe all of the Exxon refineries unless you took the.

Sameer Joshi: Okay, and just another clarification on that. I know your process, heater burners are multiple orders. Are these boiler burner orders, like single boiler burners, or are they multiple boiler orders? Yep. Sameer, that is a great question. The three orders that we are in the process of completing and then shipping the job site and actually starting up at present, those are three single burner orders. However, looking forwards, there are multiple burner opportunities in that market segment and clients with inquiries who are asking about a larger range of boilers to be retrofitted at one.

Speaker 4: the highs and the lows of all their operating criteria.

The highs and the lows of all their operating criteria.

Speaker 4: and asked us to demonstrate our burner over that range.

And asked us to demonstrate Alberta over that range.

Speaker 4: That testing was completed successfully, and we demonstrated that 2x on the...

That testing was completed successfully and we demonstrated that to Exxon.

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Speaker 4: Initial purchase order we had for the testing was paid in full following that testing. Unfortunately, the localities interested in these tools weren't the target of any changes in the author's

Initial purchase order, we had all the testing most heightened full following that testing.

Unfortunately the.

Speaker 4: the timing and the schedule of that shutdown and that plan on the heater, that was the focus.

You know the timing and the schedule of that shutdown on that plan.

On the heels of that was the focus of.

Speaker 4: of that initial testing changed and we've not been able to continue that project.

After initial testing changed.

And we've not been able to continue that project.

Speaker 4: That said, we do maintain relationships with Exxon. We are in constant communication with them. We certainly look forward to working with them in the future.

That said, we do maintain relationships with Exxon.

We are in constant communication with them.

Sameer Joshi: So just clarify, the three we have up present are single burn orders, but that is not always going to be the case looking forwards. Yeah, meaning what is interesting is one of the Texas burner is actually going in a non boiler application, if I heard it right. Can you talk a little bit about that application and the scope or the opportunity set there? I can, you know, the end user has as with many unfortunately has not given us permission to use their name, but this application is going into a chemical company.

We are.

I certainly look forward to working with him in the future.

I follow you guys very closely and every day I type in hydrogen is the Apple News article Politico about coal power plant.

Speaker 7: every day I type in hydrogen into Apple News and an article in Politico about a coal power plant.

And the point Pleasant.

Speaker 7: West Virginia about it being converted to 100% high

In West, Virginia about it being converted to a 100% hydrogen.

Speaker 7: And in the article, a reporter confirmed that it was Zico, and just given the time needed to manufacture, I think their plan was to have this up and running within about a year. What should we expect in order?

And in the article reported to confirm that it was zico in just given the time needed to manufacture I think their plan was to have this up and running within about a year. So we expect an order soon.

Sameer Joshi: So unlike a boiler, this is a process heater. The, the burner was actually sold to a, you know, a very well known. Tulsa-based heater manufacturer, Tulsa-Eaters midstream. To have a significant range or off heaters that they sell into. Many hours of the market, certainly for gas processing and obviously here in this case to chemicals plant. The burner is a boiler burner, a design, it's the same burner is mounted horizontally into the heater.

Speaker 8: Hey, Kevin, the I believe they were making grass graphite and The process

Hey, Kevin the I.

I believe they were making.

Making.

Graph graphite and.

The process they somehow we were able to take.

Speaker 7: hydrogen was a byproduct. They were going to be burning it in this coal power, you know, former coal power.

Hydrogen was a byproduct they were gonna be burning in this coal power.

Former coal power plant right.

Speaker 4: Right. Yeah. Yeah. I think that's part of the hydrogen production process. We work with Z-Codes. They have...

Right Yeah yeah.

I think that's part of the hydro production process.

We work.

We work with Z code they have.

Speaker 4: You know, obviously they're a global company in the world's second biggest. They have many product lines that are not products that we cover. The

You know, obviously, they're a global company and the world's second biggest they have many product lines that are not.

Products that we cover.

Sameer Joshi: And it is a heater with a single burner. So the arrangement of the burner in that regard is similar to a fire tube boiler. And that's what this burner is, is a good fit. And also, what's good is that the emissions we can achieve in this heater are in the same range as what we achieve in the fire tube boiler. So, so meeting these very low single digit knock guarantees is right in our wheelhouse.

We do not have calendar for it that high.

Okay.

Speaker 9: I thought that was your... Yes. The DOE grant for 100% hydrogen burn...

I thought that was yes.

The Rio.

Grants are 100% hydrogen burner again.

Speaker 4: Yeah, the DOE grant specifically is for the development of burners for process heaters. Those will be heaters that go into oil refineries. I think if this is replacing a coal-fired power plant, then we'll...

Yes.

Joey Grand specifically is for the development of all of that is full process easier. So those will be heaters that go into.

Refineries I think if this is replacing a coal fired power plants.

Stan will.

Sameer Joshi: Okay, okay, thanks for that. On the process heater burners, again, another call of clarification. The two refinery multi burners are the, are they 13 each or is it 13 combined for the two orders? Now, it is one order of 20 and one order of 13, oh, okay, got it, understood, yeah, yeah. Thanks for the clarifying on that 20, on that 20, well, not as well. So, moving on to these grants received by Marion and yourself. What is the involvement of Clearsign in the Marion project? Is there any benefit for you? Will you receive part of the money? Or will you have to expand some of your cash to support this effort?

We're looking at.

Speaker 4: power station burners which are a very large and a very different type of boiler burner that ClearSign does not.

Power station Burns, which all are very large and a very different type all boiler by that close line does not.

And this does not quite at present.

Speaker 7: Okay, next question. There's also a second super major.

Okay.

Next question.

Also as a second Super major.

Speaker 7: Europe , European. It's had equipment installed for over a year. I don't know if it is Shell or whoever.

Europe European.

Equipment installed for over a year I don't know if it is shell or whoever.

Speaker 7: But is there a conflict of interest with these big oil majors business model specifically regarding like I think like the the main thing holding you guys back is the cost of hydrogen but this I've heard it I've heard of blue hydrogen green

But is there a conflict of interest with these big oil majors business model.

Specifically.

Guarding like I think the main thing holding you guys back at the cost of hydrogen but.

I've heard of I had heard of blue hydrogen green hydrogen, but then there's something called a white hydrogen.

Speaker 7: that's like naturally in the ground and wouldn't they be the ones to discover it? And would they share this info? I wonder could it be in the ultra deep, possibly, Pacific...

Naturally in the ground and when they would be the ones to discover it and.

Would they share the same so I wonder.

Could it be in the ultra deep.

Possibly specifically I remember.

Speaker 7: another beaver pic macaron exploration the davey jones

Another beaver pick a Mac brand exploration the Davy Jones.

Speaker 7: had such high expectations but then they plugged it and it was sold as Freeport Mac Moran and just curious about your thoughts.

They had such high expectations, but then they plugged in with sold of Freeport Mcmoran and just.

Just curious about your thoughts.

Yeah.

Speaker 4: Hey, Kevin, I'll be honest with you, I don't know anything about that. And I... It's really not

Hey, Kevin I'll be honest with you I don't know anything about that.

Ben Deller: Okay, long term, the reason that we have formed a relationship with Marion is certainly for the financial benefit of Clearsign. It probably helps, you know, for others listening as well, we've not talked about Marion a lot in the past, but Marion is a specialist company based in Seattle. We formed a collaborative partnership with them, because they have the expertise in technology and market areas, which are not core to our expertise within Clearsign, but in which our sensing technology can have a very significant role.

It's really not appropriate.

For me to speculate.

Speaker 6: This concludes our question and answer session. I would like to turn the conference back over to Jim Deller for any

This concludes our question and answer session I would like to turn the conference back over to Jim Deller for any closing remarks.

Speaker 4: Thank you everyone for your interest and taking the time to participate today.

Thank you everyone for your interest and taking the time to participate today.

Speaker 4: We look forward to updating you regarding our developments and speaking with you on our next call.

We look forward to updating you regarding our developments and speaking with you on our next call.

Ben Deller: So, we've partnered with Marion to enable them to develop and commercialize applications in areas outside of the typical combustion industry that is the core business of Clearsign. So, the grant that Marion has received is going to fund their research and development of this sense of four flare applications. It's going to be executed entirely by Marion. There is no cash outlay from Clearsign's side. It helps them fund the project, but the end result of this project assuming they are successful will be a product that contains the Clearsign sensor, and will result in a licensing arrangement from Clearsign to Marion to allow them to use our technology, and that will provide the revenue to us.

Speaker 1: The conference is now concluded. Thank you for attending today's presentation. Thank you for joining me all now.

The conference has now concluded. Thank you for attending today's presentation you may now disconnect.

Ben Deller: It's sort of an investment in terms of time and a little bit of money at this point. So, it's just to add a little, you know, just feels listening with over guarding Nauron V. But Nauron, this one flare grant that Nauron has is a, you know, it gives them funding. It helps accelerate that project. For the reason we partner with them, they have, right, sort of an expertise and engagement, and they are pursuing projects in many areas.

Ben Deller: They have, right, aerospace and transport and, you know, some very huge global field that Clearsign does not have the expertise in. So, rather a very small company, we're actually very excited about the long-term potential of this collaboration, but Nauron. Understood. Thanks for that color. On the other SBIR phase 2 grant for the hydrogen. I know the phase one, Rico was involved for phase two. Will that involvement include Rico, we can continue to be a partner for that effort?

Ben Deller: Yes, now very much so we have now to continue to work with them. They've been an excellent partner for us. The project involves developing the commercial product line and that includes scaling it up and demonstrating that burner over a range of sizes up to much larger sizes. For using the multiple test furnaces available at SIGO are a critical part of this project.

Ben Deller: And then the last question on China. You're expecting certification of some form by the end of this year, fourth quarter. Is this expected to be sort of a blanket certification and does this pertain to the dissuade heating, the opportunity that we have spoken in the past? Yes, my apologies. Can you repeat the last part of your question, please? Yes, so I think in the past we talked about a lot of municipal heating or district heating in China.

Ben Deller: Yeah, this is the important to that. Okay, so let me tell you one other time, be I confirmed certification process, we expect to certainly complete this year. You know, for rough timing the burner is actually installed, we look to actually complete the firing this month, but then it will typically take some time for the Chinese government to complete that processing and deliver the certification certificate. We believe that that will take somewhere in the order of two months, but with the caveat, we know that they have also been effects of COVID within China, but it is a we can't expect that we will receive that certification by the end of the year.

Ben Deller: The, you know, the the goal in China was strong on is definitely to develop a complete range of burner sizes in China, not just the burner, but our relationship was strongly on. It also includes us collaborating with them and providing an integrated boiler burner package. So, strongly on as a boiler manufacturer, in fact, one of the biggest in China, this will enable them sell a nox compliant boiler into the, rather, a decline site.

Ben Deller: The burners we're working on are fine to boiler burners, and we've actually reprioritized in China because the regulations in China that control nox have been imposed now also, in industrial regions of China. We've mentioned Shenzhen before down on the South Coast. These regions have a lot of boilerburners from the Clearsign perspective. One, this is a very high volume market. And there's also a product line that we have already proven. We have these burners now operating in California.

Ben Deller: We've proven we can do them. We have them source tested by third parties in California. And we have operating experience all of them. So it makes it a very relatively easy product for us to now commercialize in China. So with the changing regulations and the development of our fine tube boilerburn and business in California, we've really pushed and and strong enough be most receptive to developing that product line first. That said, we do have the relationship with the Beijing District heating group.

Ben Deller: We do still have the water tube boiler for them on the roadmap. This is really just a reprioritize a patience so we can take advantage of this newly developing opportunity that we think is going to be what most readily available to us and we actually think very lucrative. I understood. So the water tube opportunity remains, but this is a more near-term and significant opportunity as well. So is that yes, did I understand that? Thanks for taking my question. Thank you, Sven.

Robert Kecseg: The next question comes from Robert Kexek with the law of Scolina's capital management. Please go ahead. Yeah, I wanted to maybe simplify on the sales. Is there some way that you could report sales order backlog? So it maybe kind of simplifies it for the investors. In other words, perhaps what backlog we have estimated for this year and so far, what would be approximately estimated for the following year, 2024 at the present time?

Robert Kecseg: Sorry, but go ahead. I cut you off. I didn't mean to. Sorry. Oh, oh, you cut me off. You couldn't hear me. I thought your question was continuing. I didn't mean to stop you. Oh, no. I was just asking about the possibility of order backlog reporting. It's great to hear. I'm absolutely wonderful to hear the individual orders and stuff, but to kind of summarize, maybe for investors, I didn't know whether that would be possible to say like a 2023 backlog and what we're looking at now for 2024 backlog.

Robert Kecseg: I've just I've just sales revenue estimate. Sure. Yeah. Well, I can. You know, we I think it makes most sense to give you the tools. A good average price for our burners is $100,000 a burner. We do give the number of burners in the now's we make off of the orders we receive. The process burners have a significant amount of engineering attached to them, so you can add over 200,000 to that number.

Robert Kecseg: With that way, you've got a simple tool to get reasonably close to the order values as they come in. And of course, from the cues, you can track the revenue that's recognized, the difference being the other backlog about working progress. I think we've seen looking forwards, there are so many factors in the market. I don't think it's reasonable to actually give a, you know, expected number, especially not of this day or of a forward looking sales expectation.

Robert Kecseg: I'm very encouraged by what we see both on the process burner and by the product line. But at this point, I don't think it's reasonable to give a, you know, a, a future looking number, but hopefully that just as round numbers are a, a useful tool for assessing the right, the value of all the orders that we've booked. And of course, the cues will give you the revenue that's recognized on a quarter by quarter basis. And I just wanted to make mention of this on the call.

Robert Kecseg: It's not directly related to the products, but I did hear from an industry executive that in China, they completed the construction of 82 new coal plants, power plants in 2022. And their intention is us to do over 90 coal plants in the 2023 year. And I just thought that was kind of the spectacular number. I was wondering, is that, does that anyway relate to, I mean, their growth or is that, is that our equipment or coal plant and power plants, but as far as the whole eating thing that we've been trying to get into and get started?

Robert Kecseg: Yep, it's hard to believe that they're ready to what we do, but I think it's a, it's a good general point. And we've talked a lot about the China market and, you know, why, why we're pursuing the China market and the effort we put into China. And I think with the, you know, with China being so far away, sometimes that raising is lost. But the, the, rather the data that you mentioned, or when you see the magnitude of the investment and just realizing the scope of the industry in China, I think we can start to get a feeling by how large that market can be.

Robert Kecseg: And that really is what is driving us in China. We are in a different sector, the coal-fired plan or power generation. But just seeing the right, the magnitude of the energy need and realize that the smaller voices that we provide are also energy providers into China. I think it does, isn't it? and illustrate the scope of the potential that we see there. Yes, and I just want to say how pleasing it is to know how valuable sales is to us that you're able to find somebody with Tina's background and experience.

Robert Kecseg: And I hope in the future after she's been around for a while we could hear some of her's perspective of what she's experienced in our market after, you know, after being there for a time. Yeah, Bob, thank you for that. You know, we, we were very excited to find someone off Tina's calibre to track somebody like that is very gratifying to us. She's hit the ground and looking forward to working with Tina in the future. Yeah, great. All right. Thank you very much, Jim. Thank you for your questions, Bob.

Operator: Again, if you have a question, please start and want to be joined into the queue.

Kevin: Our next question comes from Kevin done a private question. Hi, Kevin. You do that name and face. All right. A long time listener, first time caller, a few questions. Basically, I've been following you guys for probably five years or so. And I mean, in the stock, I remember popping over $5. I mean, I didn't have any money at the time. I got convinced my mom to buy some and then shortly after stock plummeted down to a dollar and it happened after there was an ex on mobile test and it was the reason given that's been almost two years since and it was, it was delayed and it was, quote, there was not enough time for the 2022 turnaround. And given that 2023 is almost over, like should we expect the turnaround in the 2024? I don't even really know what a turnaround is to be honest. Yeah. Hi, Kevin. Yeah.

Ben Deller: I think it's a fair question. So the ex on mobile testing was predominantly a validation of our technology. They went through the operating conditions of what we believe were all of the ex on refineries and basically took the highs and the lows of all their operating criteria and asked us to demonstrate our burner over that range. That testing was completed successfully and we demonstrated that 2x on the initial purchase order we had for the testing was paid in full following that testing.

Ben Deller: Unfortunately, the, you know, both get the timing and the schedule of that shut down on that plan on the heater. That was the focus, of that initial testing changed, and we've not been able to continue that project. That said, we do maintain relationships with Exxon. We are in constant communication with them, but we are certainly looking forward to working with them in the future. I follow you guys very closely, and every day I type in hydrogen into Apple News, and that article is a political about a coal power plant in West Virginia about it being converted to 100% hydrogen.

Ben Deller: And in the article, a reporter confirmed that it was Zico, and just given the time needed to manufacture, I think the plan was to have this up and running within about a year. Should we expect in order soon? Hey, Kevin, I believe there were a couple of questions making graph, graphite, and the process, they somehow were able to hydrogen with a bi-product, they were going to be burning it in this coal power, you know, former coal power plant.

Ben Deller: Yeah, I think that's part of the hydrogen production process. We work with Zico. They have, you know, obviously, they're a global company in the world, second biggest. They have many product lines that are not products that we cover. The, we do not have. It's 100% high. I thought that was zero. Yes, the deal we grant for 100% hydrogen burner, I guess. Yeah, the deal we grant specifically is for the development of of burns for processes, so those will be heaters that go into oil refineries.

Ben Deller: I think if this is replacing a coal-fired power plant, then we're looking at power station burns, which are very large of it, and a very different type of boiler burn that clear sign does not. He says not quite a present.

Ben Deller: Okay, next question. There's also a second super major, Europe, European, it's had equipment installed for over a year. I don't know if it is shallow or whoever, but is there a conflict of interest with these big oil majors, business model, specifically regarding, like, I think like the main thing holding you guys back is the cost of hydrogen, but this, I've heard of blue hydrogen, green hydrogen, but then there's something called white hydrogen that's like naturally in the ground, and wouldn't they be the ones to discover it?

Ben Deller: And would they share the simple? I wonder, could it be in ultra deep, possibly, specifically, I remember another beaver pick, Mac Moran exploration, the Davy Jones, it had such high expectations, but then they plugged it, and it was sold a freeport Mac Moran, and just curious how it's up. Yeah.

Ben Deller: Hey, Kevin, I don't know anything about that, and I This concludes a question and answer session. I would like to turn the conference back over to Jim Deller for any cause in your month. Thank you everyone for your interest and taking the time to participate today. We look forward to updating you regarding our developments and speaking with you on our next call.

Operator: The conference has now concluded.

Operator: Thank you for attending today's presentation.