Q2 2024 ClearSign Technologies Corp Earnings Call

Speaker Change: good afternoon and welcome to the clear signed technologyies second quarter two thousand and twenty-four conference call all participants will be an a lesson omode

Operator: 2424 Conference Call. All participants will be in a lesson-only mode. Should you need assistance, please signal conference specialists by pressing the star key followed by zero.

Speaker Change: should you need assistance with signal conference specialist by pressing the torary f by zero after today's presentation there will be an opportunity to ask questions

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 tone phone. To withdraw your question, please press star, then two.

matchyour sonenger: to ask a question you may press sto then one on your tachstone phone to withdraw your question please first star than to please note this event is being recorded i would like to turn a conference over to matchyour sonenger of firm ir group please go ahead

Operator: Please note this event is being recorded.

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

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

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

Operator: Thank you for participating.

Operator: You may all disconnect.

Operator: Please go ahead.

Unknown Executive: Good afternoon and thank you, Operator.

Unknown Executive: Welcome, everyone, to the Clearsign Technologies Corporation.

Matthew Selinger: Good afternoon, and thank you, operator.

Operator: Please go ahead.

Matthew Selinger: Welcome everyone to the Clearsign Technology Corporation 2nd quarter 2024 results conference call. During this conference call, the company will make forward-looking statements. Any statement that is not a statement of historical fact is a forward-looking statement. This includes remarks about the company's projections, expectations, plans, beliefs, and prospects. 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 statements. The risk and uncertainties associated with the forward looking statements made in this conference call include but are not limited to whether field testing and sales clearance products will be successfully completed, where the Clearsign will be successful in expanding the market for its products, and other risks that are described in Clearsign's public periodic filings with the SEC, including a discussion in the risk factor section of the 2023 annual report on form 10K for the period ended December 31st, 2023.

Speaker Change: good afternoon thank youyour operator welcome everyone to the clearsign technonot es corporation and second quarter two thousand and twentyfour results conference call during this conofference call the company will make forward-looking statements

Matthew Selinger: Good afternoon, and thank you, Operator.

Speaker Change: any statement that have not a statement of historical fact is a forward-looking statement this includde remarks about the company's projections expectations plans beliefs and prospects

Speaker Change: these statements are based on judgments and analysis as of the deate of this conference call and are subirject to numerous importantort risks and uncertainties that could cause actual results to differmaterially from those described in the forward-looking statements

Speaker Change: the risk uncertainties associated with the forward-looking statements made in this comference call include but are not limited to whetherthe field testing insalesof clearance products will be successfully completed whether the clears i will be successful llegs spanding the market forits products in other risks that are described in crears our public periodic filings with the sec

Speaker Change: including the discussion in the risk factor section of the two thousand and twenty-three annual report on form ten -k for the period ended december thirty first two thousand and twenty three

Matthew Selinger: 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.

Speaker Change: except as requiire by law clline assumes no responsibility to update these forward-looking statements to reflect future events or actual outcomes it does not intend to do so

Matthew Selinger: So on the call with me today, our Jim Deller, Clearsign's Chief Executive Officer, and Brent Hines, Clearsign's Chief Financial Officer.

Matthew Selinger: Welcome, everyone, to the Clearsign Technologies Corporation second quarter 2024 results conference call.

Speaker Change: so on the call with me today our jime dellerclearscience teiethexecutive officer and bent hines cleaz's ief financial officer

Matthew Selinger: During this conference call, the company will make forward-looking statements. Any statement that is not a statement of historical fact is a forward-looking statement. This includes remarks about the company's projections, expectations, plans, beliefs, and prospects.

Matthew Selinger: So, with that, at this point in the call, I would like to turn the call over to CFO Brent Hines.

Speaker Change: so with that at this point in the call i would like to turn the call over to cfo brint hinds so bren please go head

Brent Hines: So Brent, please go ahead.

Matthew Selinger: 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 statements.

Brent Hines: Thank you, Matthew. I thank you to everyone joining us here today.

Matthew: phenie matthew

Matthew Selinger: The risks and uncertainties associated with the forward-looking statements made in this conference call include, but are not limited to, whether field testing and sales of Clearsign's products will be successfully completed, whether Clearsign will be successful in expanding the market for its products, and other risks that are described in Clearsign's public periodic filings with the SEC, including a discussion in the risk factor section of the 2023 annual report on Form 10-K for the period ended December 31, 2023.

Brent Hines: For I'd begin, I'd like to know that our financial results for the second quarter of 2024 are included on the quarterly port on Form 10-Q. It was filed with the SEC last Wednesday on August 14th. With that, I'd like to give an overview of the financials for the second quarter of 2024. For the second quarter of 2024, the company recognized approximately $45,000 in revenues compared to $150,000 for the same comparable period in 2023. This $105,000 decrease in revenues is driven by the natural lumpiness in our business as we continue to work to build our sales pipeline.

Brint Hinds: i think it everyone enjoin here today

Brint Hinds: i begin i'd like to note that our financial results for the second quarter of two thousand and twenty four are included on the quarterly port on form ten q that was fed with the sec last wednesday on august fourteenth

Matthew Selinger: 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.

Matthew Selinger: So, on the call with me today are Jim Deller, Clearsign's Chief Executive Officer,

Brint Hinds: with that i'd like to give an overview of the financials for the second quarter of two thousand andtwenty work

Matthew Selinger: and Brent Hines, Clearsign's Chief Financial Officer.

Brint Hinds: the second quarter of two thousand twenty four the company recognized approimately forty five thousand dollars in revenues compared to one hundred fifty thousand dollars the same comparable period in two thousand and twenty three

Brint Hinds: this one hundred and five thousand dollars decrease in revenues is driven by the natural lumpiness in our business as we continue to work to build our sales pipeline

Brent Hines: While we don't provide guidance, Jim will comment later on our project pipeline with shipping and delivery timeframes, which can give an indication of future revenues. Looking at the income statement as a whole, our net loss for the second quarter in 2024 was approximately $1.9 million, which is an unfavorable increase of approximately $400,000 compared to the same period in 2023.

Brint Hinds: we don't provide guidance jim will comment later on our project pipeline with shipping and delivery time frames which can give an indication of future eviduencees

Jim Dellerclearscience: looking into income statement as a whole our net loss for the second quarter in two thousand twenty four was approximately one point nine million which is an unfavorable increase of approximatelyfour hundred thousand dollars compared to the same period in twothousand and y three

Brent Hines: This unfavorable year-over-year change was predominantly due to a one-time non-cash event for $260,000 related to the besting of restricted stock units in connection with the resignation of Mr. Hoffman from the Board of Directors.

Speaker Change: this edreral year-over-year change was predominantly due to a onetime noncash event for two hundred and sixty thousand dollars related to the bestesting ofverstricted stock units in connection with the reservation of mr hoffman from the boardder directors

Brent Hines: Now I'd like to shift focus from our income statement to the balance sheet. More specifically, cash. Our net cash used in operations for the second quarter of 2024 was approximately 1.5 million, compared to a generation of cash of approximately 50,000 for the same period in 2023. This unfavorable year-over-year change was driven by the prior year's operations. As you may recall, during the second quarter of 2023, we collected a significant amount of cash from customers because we met billing milestones specified in our contracts.

Speaker Change: now i'd like to shift focus from our income statement to the balance sheet more specifically cash

Speaker Change: our net cash use and operations for the second quarter of two thousand andtwenty four was approximately one point five million compared to a generation of cash of approximately fifty thousand for the same period in two thousand and twenty three

Speaker Change: this unfavorable year-over-year change was driven by the prior year's operations

Speaker Change: as you may recall during the second quarter of twotwentthousand three we collected a significant amount of cash from customers because we've met billing milestones specified in our contracts

Brent Hines: Shifting gears to continue our focus on cash, I would also like to revisit an announcement we made on June 20, 2024, where we announced the full exercise of the clear SBB participation right. Pursuant to a stock purchase agreement dated July 12, 2018, Clear SBB can participate in equity offerings to maintain its 19.99% ownership. The full exercise of the participation right added approximately $4.3 million in cash to the balance sheet. Apple, this with the other recent equity offerings, we added approximately $13 million in cash to our balance sheet in the second quarter of 2024. So therefore, as of June 30, 2024, we reported a balance of approximately $16 million in cash and cash equivalents.

Speaker Change: shippting years the continuue our focus on cash i would also like to revisit an anncement we made on june twentieth two thousand and twenty-four where we announced the full exercise of the clear sb participation right

Speaker Change: pursuant to a stop purchase agreement data july twelve eighteen cleare spv can participate in equity offerings to maintain its nineteen point nineety nine percent ownership

Speaker Change: the full exercise of the participation right added approximately four point three million dollars in cash to the balance sheet

Speaker Change: upouple this with the other recent equity offerings we added approximately thirteen million dollars in cash to our balance sheet in the second quarter of two thousand and twenty four

Speaker Change: so therefore as of june thirtieth two thousandand twenty-four we reported a balance of approximately sixteen million cash and cash equivalents

Brent Hines: From a financial perspective, we believe this working capital position instills greater confidence in our customers and suppliers when doing business with us.

Speaker Change: from a financial perspective we believe this working capital position and stills greater confidence in our customers and suppliers when doing business with us

Matthew Selinger: So, with that, at this point in the call, I would like to turn the call over to CFO Brent Hines.

Brent Hines: And with that, I'd like to turn the call over to our CEO, Jim Deller.

Jim Deller: and with that i'd like to turn the call over towardsour e o jim deller jim

Jim Deller: Jim? Thank you, Brent, for the financial overview. As always, I'd like to thank everyone for joining us on the call today and for your interesting clear sign.

Matthew Selinger: So, Brent, please go ahead.

Brent Hinds: Thank you, Matthew, and thank you to everyone joining us here today.

Jim Deller: thank you brent for the financial overview

Speaker Change: as always i'd like thank everyone for joining us on the core today and feel interesting player signed

Brent Hinds: Before I begin, I'd like to note that our financial results for the second quarter of 2024 are included, in the quarterly report on Form 10-Q that was filed with the SEC last Wednesday on August 14.

Jim Deller: Before I start, on behalf of Clear Sign and the board, I want to thank our former chairman and board member Rob Hoffman for his years of service and for the continued financial support for Clear Sign provided by Clear SBB. Rob support was instrumental in fostering this company from a research and development technology company to the viable commercial entity we are today.

Speaker Change: before i start on behalf of clear signed and the board i want to thank our former chairman and board member rob htman the his years of service and with the continued financial support for clear i'm provided by clear sb

Speaker Change: rob support was instrumental in fostering this company from a researchand development technology company to the viiable commercial entity we are today

Jim Deller: On a similar note, I'd like to welcome Todd Silver to the clear sign board of directors to fill Rob's vacancy as Clear SBB's design. Top rings over 30 years of leadership and financial experience in industries spanning financial services, technology, healthcare, and others. I think this is an exciting time for the company, and we look forward to working with Todd and the other board members.

Speaker Change: on a similar note i'd like to welcome top silver to theclear ' board of directorsto fill rob's vacancy as clear ssp designne

Top Silver: top brings over thirty years of leadership and financial experience in industries spanning financial services technology health care and others

Speaker Change: i think this is an exciting time for the company and we' it forward to working with tod and the other board members

Brent Hinds: And with that, I'd like to give an overview of the financials for the second quarter of 2024.

Jim Deller: For the call today, I worry of you, our product line, starting with our process burners, then move to boiler burners, and then discuss the outlook for the rest of the year. So turning to our process burner line, in our last call, we discussed our multiple installations and follow-on orders on current energy in California. At that time, our two largest heat and retrofit projects had just been started up, and shortly afterwards, their emissions were verified by former third-party measurements known as source tests. These two heaters are side by side, one with five burners and the other with eight.

Brent Hinds: For the second quarter of 2024, the company recognized approximately $45,000 in revenues, compared to $150,000 for the same comparable period in 2023.

Speaker Change: the cot today i will review our product line starting with our process burners then mo to boil er burners and then discussed the outlook for the rest of the year

Speaker Change: so turning to our process burn al line in our last call we discussed our multiple installations and follow on orders on current energy in california

Speaker Change: at that time are twotoo largest heat red projects had just been started up in shortly afterwards their emissions were verified by formal third-party measurements known as source tests

Speaker Change: these two heaters of ourside by side war the fiveine burners and the other with eight

Jim Deller: Since those two projects, we have also received follow-on orders for two additional heaters at Kern Energy. By previous orders, the initial purchase order is for engineering, and we anticipate receiving the orders for the follow-on, fabrication, and delivery to complete these retrofits after the engineering scope is complete. We continue to work with Kern Energy, obviously on our existing projects, but also in regards to discussions for the future. You may also have seen messaging from Kern Energy, particularly on LinkedIn and also news articles referencing our work together from their perspective, emphasizing their priorities and values, and why our projects are important to Kern Energy.

Speaker Change: since those two projects we have also received fore ign orders for two additional heaters that current energy

Speaker Change: by previous orders the initial purch order is for engineering and we anticipate receiving the orders for the follow-on fabrication and delivery to complete these retvists after engineering scope is complete

Speaker Change: we continue to work with current energy obviously on our existing projects but also in regards the discussions forthe future

Speaker Change: you may also see messaging from current energy particularly on linktonn and also news articles referencing our work together from their perspective

Speaker Change: emphasizing their priorities and balues and why our projects are important to currentenergy

Jim Deller: In their words, the supply of clear-sized technology helps the refinery continue to meet California's clean air goals and go beyond established emissions limits to further reduce their environmental footprint.

Speaker Change: in their words the supply of clearsizze technology helps refinery continue to meet california's clean e goals and go beyond established emissions limits to further reduce their environmental fopperint

Jim Deller: Since then, and most recently, we have made further significant progress in our process burner-fronted line. On July 17th, we announced that we had received the engineering order from Engineering Company and heater manufacturer for World Go USA Incorporated, a boosted international heater company. For the first phase of a project to retrofit four process heaters with a total of 26 clear-sized core burners to be installed in the Gold Coast Facility of a Fortune 500 global chemical company. This order is important, not just for the size and anticipated revenue associated with it, as important as that is, but also because the order is destined for a facility in Texas, which is part of the USA Gold Coast region that we expect to ultimately be the largest market for our current product lines, and one that is now in the process of advising their Clean Air regulations.

Speaker Change: since then most recently we have made further significant progress in our process bururnno about it line

Speaker Change: on july seventeenth we announced that we had received the engineering order from engineering company and heat a manufacturer the walgo usa incorporated pbo international heat company

Speaker Change: for the first phase of a project to retfit four process heers the total of twenty- six clear signed core burners to be installed in the gold coast facility of a fortune five hundred global chemical company

Speaker Change: its orders important not just from the size and anticipated revenue associated with it as important as that is

Speaker Change: but also because the order is destined facility in texas

Speaker Change: which is part of the usa goulf coast region that we expect to ultimately be the largest market for our current product lines and moment that is now in the process or advising their cleaner regulations

Jim Deller: Because of the prominence of the engineering and heater manufacturer for World Go, we're paramount in the selection of the equipment for this project, which ultimately resulted in the order being placed with Clear-sized. For anyone looking to get insight into this industry, I encourage you to look up the World Go and particularly to visit their website. They work with a distinguished list of major refiners, mainstream, and chemical companies. They are based in Houston and part of Boosted International Heaters or B.I.H., which includes sister companies in Europe, Malaysia, and Singapore. The World Go's business is predominantly the supply of heaters to refineries and petrochemical plants, or engineering and managing projects to upgrade them, including projects that require the change out of the governance.

Speaker Change: and because of the prominence of the engineering and heatater manufacture of bawalgo were paramount in the selection of the equipment for this project which ultimately resulted in the all of being placed with clear signed

Speaker Change: for anyone looking to get insight into this industry i encourage you to look at the walkgo and particularly to visit their website

Speaker Change: they work with a distinguished list of major refiners midstream of chemical companies they are based in houston and part of boosted international heaters or bh which includes sister companies in europe malaysia and singapore

Speaker Change: the walker's business is predominly the supply of heaters to refineries and patrochemical plant or engineering a managing projects to our greatade end including projects that require the change out of the burns

Jim Deller: We believe that having the World go express their confidence in clear-sized technology, allowing them to have first-hand experience of it and exposure to what we do makes its world position to be part of the solutions they offer and may provide for future clients. As you would expect, we are engaged in other early-stage conversations of this nature with them.

Speaker Change: we believe that having buball go express their confidence in clear science technology allow them to have fir-and the experience of it and exposure to what we do ma us war position to be part solutions they offer and may provide for future clients

Speaker Change: as you would expect we are engaged in other early stage conversations of this nature with that

Jim Deller: If you participated in previous conference calls, we had mentioned that we were working with a major global chemical company to become an approved vendor in their system. In fact, that was not a one-off, but one of these was a precursor to this order. I have just described. Beyond this, we have a 20-burner order nearing completion. The final witness test was completed some time ago, and these burners are now finishing fabrication by our partner Ziko and are scheduled to be shipped to our client in the Los Angeles area of California late in September. When up and running, there will be another two heaters, this time with eight and 12 burners, which will provide a very significant reference for us, especially given their location in the large refining hub in the Los Angeles area.

Speaker Change: and

Speaker Change: if you particicipated in previous conference cause we had' mentioned that we were working with a major global chemical company to become approved vendor in their system

Speaker Change: in fact that was not a one off but one of these was a precursed of this order i have just described

Speaker Change: beyond this we have a twenty burnl order nearing completion the final witness test was completed some time ago and these burners are now finishing fabrication by our partnerers zeeco and a scheduled to be ships to our cent in los angeles area of california late in september

Speaker Change: when up and running there will be another two heaters this time with eight and tlve burners which will provide a very significant reference for us especially given their location in the large refining hub in the los angeles area

Jim Deller: As previously noted, in accordance with the contract terms of this project, we will collect revenue upon shipment of the burns. So if I'm back to Brent's comments earlier, our revenue flow is based on the contractual milestones of our projects, so we anticipate that during the period in which we are establishing sales, our revenue flow may be lumpy. While we had significant sales news in the second quarter of 2024, shipping orders like this are what show up in our financial results.

Speaker Change: previously noted

Speaker Change: accordance with the contract terms of this project we will clate revenue amupon shipment of the burns

Brent Hinds: This $105,000 decrease in revenues is driven by the natural lumpiness in our business.

Brent Hinds: We continue to work to build our sales pipeline.

mat brren: so firm mat brren's comments earlier a revenue flow is based on the contractual milestones of our projects so we anticipate that during the period in which we are establishing sales our revenue flow maybe lumpy

Brent Hinds: While we don't provide guidance, Jim will comment later on our project pipeline with shipping, and delivery timeframes, which can give an indication of future revenues.

Brent Hinds: Looking at the income statement as a whole, our net loss for the second quarter in 2024 was approximately $1.9 million, which is an unfavorable increase of approximately $400,000 compared to the same period in 2023. This unfavorable year-over-year change was predominantly due to a one-time non-cash event, for $260,000 related to the vesting of restricted stock units in connection with the resignation of Mr. Hoffman from the Board of Directors.

Brent Hinds: Now I'd like to shift focus from our income statement to the balance sheet, more specifically cash.

Brent Hinds: Our net cash used in operations for the second quarter of 2024 was approximately $1.5 million, compared to a generation of cash of approximately $50,000 for the same period in 2023.

Brent Hinds: This unfavorable year-over-year change was driven by the prior year's operations. As you may recall, during the second quarter of 2023, we collected a significant amount of cash from customers because we met billing milestones specified in our contracts.

Brent Hinds: Shifting gears, but continuing our focus on cash, I would also like to revisit an announcement we made on June 20, 2024, where we announced the full exercise of the Clear SPB participation right. Pursuant to a stock purchase agreement dated July 12, 2018, Clear SPB can participate in equity offerings to maintain its 19.99% ownership. The full exercise of the participation right added approximately $4.3 million in cash to the balance sheet.

mat brren: while we had significant sales news in the second quarter of two thousand and twenty-four shipping orders like this or what show up our financial results

Brent Hinds: To couple this with the other recent equity offerings, we added approximately $13 million in cash to our balance sheet in the second quarter of 2024. So therefore, as of June 30, 2024, we reported a balance of approximately $16 million in cash and cash equivalents. From a financial perspective, we believe this working capital position instills greater confidence in our customers and suppliers when doing business with us.

Jim Deller: Regarding our crossover product line, meaning our fraudulently fired burners for process heaters, on June 26, we announced the sale of our largest burners a date. The sale is meaningful for a couple of reasons. First, the firing rate of this burner at close to 90 million BTUs per hour is almost two times the size of our previous largest single burner sold. With this, we will have demonstrated products designed for our small, medium, and large size ranges in the field. Secondly, this burner was sold in collaboration with another heater manufacturer, DevCo Process Heaters, or DevCo, into the midstream market, which will introduce our solutions to new customers and expand our sales channels.

Brent Hinds: And with that, I'd like to turn the call over to our CEO, Jim Diller.

Speaker Change: regarding our crosssoover polo line meeting our horizonly filed burners for process heers and june twenty-six we announced the sale of our largest burn date

Brent Hinds: Jim?

Jim Deller: Thank you, Brent, for the financial overview.

Jim Deller: As always, I'd like to thank everyone for joining us on the call today and for your interesting clear sign.

Jim Deller: Before I start, on behalf of Clear Sign and the board, I want to thank our former chairman and board member, Rob Hoffman, for his years of service and for the continued financial support for Clear Sign provided by Clear SPB. Rob's support was instrumental in fostering this company from a research and development technology company to the viable commercial entity we are today.

Jim Deller: On a similar note, I'd like to welcome Todd Silver to the Clear Sign board of directors to fill Rob's vacancy as Clear SPB's designee. Todd brings over 30 years of leadership and financial experience in industries spanning financial services, technology, healthcare, and others.

Speaker Change: the sale is meaningful fora couple of reasons

Jim Deller: I think this is an exciting time for the company, and we look forward to working with Todd and the other board members.

Speaker Change: first the f rate this burner at close at nineety million b two years per hour is almost two times the size of our previous largest single burn asld

Jim Deller: For the call today, I will review our product line, starting with our process burners, then move to boiler burners, and then discuss the outlook for the rest of the year. So, turning to our process burner line, in our last call, we discussed our multiple installations and follow-on orders from Kern Energy in California. At that time, our two largest heater retrofit projects had just been started up, and shortly afterwards, their emissions were verified by formal third-party measurements, known as source tests, on our existing projects, but also in regards to discussions for the future.

Jim Deller: You may also have seen messaging from Kern Energy, particularly on LinkedIn, and also news articles referencing our work together from their perspective, emphasizing their priorities and values, and why our projects are important to Kern Energy.

Jim Deller: In their words, the supply of Clearsign's technology helps the refinery continue to meet California's clean air goals and go beyond established emissions limits to further reduce their environmental footprint.

Jim Deller: Since then, and most recently, we have made further significant progress in our process burner product line. On July 17th, we announced that we had received the engineering order from engineering company, and heater manufacturer Biwogo USA, Inc., a Boosted International heater company, for the first phase of a project to retrofit four process heaters with a total of 26 Clearsign core burners. To be installed in the Gulf Coast facility of a Fortune 500 global chemical company.

Speaker Change: with this we will have demonstrated products designed for our small medium and life sizeed ranges in the field

Speaker Change: secondly this burn was sold in collaboration with another heat to manufacturer devgo process heaters were devcode into the midstream market which will introduce our solutions to new customers and expand their sales channels

Jim Deller: In that regard, we have received requests to provide quotes for additional projects from DevCo since the supply of this burner. The burner will be going into a heater in Central Texas gas processing facility. We expect the burner to be delivered during the third quarter this year. This product line continues to gain traction. We believe that several of interest and customer requests for quotes indicate that there is a ready market for these burners. We have proposals that are progressing well, and I hope to have further news from this progression in the near future.

Speaker Change: in that regard we have received request to vide quotes for additional projects from dev goost since the supply of this berurnard

Jim Deller: This order is important not just for the size and anticipated revenue associated with it, as important as that is, but also because the order is destined for a facility in Texas, which is part of the USA Gulf Coast region that we expect to ultimately be the largest market for our current product lines, and one that is now in the process of revising their clean air regulations.

Jim Deller: And because of the prominence of the engineering and heater manufacturer Biwogo, were paramount in the selection of the equipment for this project, which ultimately resulted in the order being placed with Clearsign.

Jim Deller: For anyone looking to get insight into this industry, I encourage you to look up Biwogo, and particularly to visit their website.

Jim Deller: They work with a distinguished list of major refiners, mainstream and chemical companies. They are based in Houston and part of Boosted International, Heaters, or BIH, which includes sister companies in Europe, Malaysia, and Singapore. Biwogo's business is predominantly the supply of heaters to refineries and petrochemical plant, or engineering and managing projects to upgrade them, including projects that require the change out of the burners.

Speaker Change: the burner will be going into heated in central texas gas processing soity we expect the burn to be delivered during the third quarter this year

Jim Deller: We believe that having Biwogo express their confidence in Clearsign's technology, allowing them to have first-hand experience of it and exposure to what we do, makes us well-positioned to be part of the solutions they offer and may provide for future clients.

Speaker Change: this product line continues to gain traction we believe the seveclel of interest and customer request for quotes indicate that there is a ready market for these bururnits

Jim Deller: As you would expect, we are engaged in other early-stage conversations of this nature with them. If you participated in previous conference calls, we had mentioned that we were working with a major global chemical company to become approved vendor in their system. In fact, that was not a one-off, but one of these was a precursor to this order I have just described, the large refining hub in the Los Angeles area.

Jim Deller: As previously noted, in accordance with the contract terms of this project, we will collect, revenue upon shipment of the burners.

Speaker Change: we have proposals that are progressing well and ihope to have further news from this progression in the near future

Jim Deller: We also have an update on our hydrogen burner technology. On the last call, we reported that this new technology had worked very well and had exceeded our expectations at this stage of the project. We also mentioned that we have shared some of those initial results on LinkedIn. While we still have some work to do before calling this product line complete, the hydrogen burner performance is sufficiently robust and comprehensive that we are able to offer this new product for sale and have already been doing so. One of the attributes of this new technology is that it will perform not only with 100% hydrogen as a fuel in the future, but also with the fuel gas that is currently in use today.

Speaker Change: we also have an update on how to genimbna technology

Speaker Change: on the last call we reported that this new technology had worked very well and had exceed our expectations at this stage of the project

Speaker Change: we also mentioned that we have shared some of those initsuial results on led

Speaker Change: while we still have some work to do before call in this product line complete the hydrogen burner performance is sufficiently robust and comprehensive that we are able to offer this new product for sale and have already been doing so

Speaker Change: one of the attributuse of this new technology is that it will perform not only with one hundred cent hydrogen has a fuel in the future

Jim Deller: And because of this, it is a product that our customers can install to meet their moxam and other operational requirements today and, at the same time, have the technology in place and ready to operate as they introduce additional hydrogen to their fuel gas streams or convert to 100% hydrogen when that fuel source becomes available in the future.

Speaker Change: but also with the fuel gas is currently in used to today

Speaker Change: and because of this it is a product that our customers can store to meetthen mockx and other operational requirements today

Speaker Change: and at the same time how the technology in place and ready to operate as they introduce additional hydrogen to their fuel gas streams or converredt to one hundred percent hyrogen when that fuel source becomes available in the future

Jim Deller: So referring back to Brent's comments earlier, our revenue flow is based on the contractual, milestones of our projects.

Jim Deller: Last week we hosted a process burner technology launch event at the facilities of ZECO. I have frequently emphasised that one of our priorities is to develop familiarity and confidence in our technology and its capabilities throughout our customers and other industry stakeholders. Obviously, if the key part of this is developing our installed base, but we can also progress this by holding events such as this in which we demonstrated our technology operating in ZECO test furnaces. As you would expect, this was accompanied by a series of presentations and discussions about our technology, how it is installed and operated, etc., including an introduction and presentation of our new hydrogen burns, which provided an opportunity for our customers to literally see it in person for the first time.

Speaker Change: last week we hosted a process burna technology launch event at the facsurtiities ceo

Jim Deller: So we anticipate that during the period in which we are establishing sales, our revenue, flow may be lumpy.

Jim Deller: While we had significant sales news in the second quarter of 2024, shipping orders like, this are what show up in our financial results. Regarding our crossover product line, meaning our horizontally fired burners for process, heaters, on June 26, we announced the sale of our largest burners to date. The sale is meaningful for a couple of reasons. First, the firing rate of this burner, at close to 90 million BTUs per hour, is almost, two times the size of our previous largest single burner sold.

Speaker Change: i have frequently emphasized that one of our priorities is to develop familiarity and confidence in that technology and its capabilities throughout our customers and other industry stakeholders

Jim Deller: With this, we will have demonstrated products designed for our small, medium, and large-sized, ranges in the field.

Jim Deller: Secondly, this burner was sold in collaboration with another heater manufacturer, Devco Process, Heaters, or Devco, into the midstream market, which will introduce our solutions to new customers and expand our sales channels.

Jim Deller: In that regard, we have received requests to provide quotes for additional projects, from Devco since the supply of this burner. The burner will be going into a heater in Central Texas Gas Processing Facility.

Speaker Change: obviously the key part of this is developing our installed base

Jim Deller: We expect the burner to be delivered during the third quarter this year.

Speaker Change: but we can also progress this by holding events such as this in which we demonstrate that our technology operating into the zeeco test furnits

Jim Deller: This product line continues to gain traction. We believe this level of interest and customer requests for quotes indicate that there is, a ready market for these burners.

Jim Deller: We have proposals that are progressing well, and I hope to have further news from this, progression in the near future.

Speaker Change: as you would expect this was accompanied by a series of presentations and discussions about our technology how it is installed an operated etc including any introduction and presentation of our new hydrogen bns which provided an opportunity for customers to literally see it in person for the first time

Jim Deller: We also have an update on our hydrogen burner technology. On the last call, we reported that this new technology had worked very well and had exceeded, our expectations at this stage of the project. We also mentioned that we have shared some of those initial results on LinkedIn. While we still have some work to do before calling this product line complete, the hydrogen, burner performance is sufficiently robust and comprehensive that we are able to offer this new product for sale and have already been doing so. One of the attributes of this new technology is that it will perform not only with 100% hydrogen as a fuel in the future, but also with the fuel gases currently in use today.

Jim Deller: Because of this, it is a product that our customers can install to meet their NOx and, other operational requirements today, and at the same time have the technology in place and ready to operate as they introduce additional hydrogen to their fuel gas streams or convert Last week we hosted a Process Burner technology launch event at the facilities of Zco.

Jim Deller: This demonstration was well attended, including by senior technical representatives of two global supermajor refineries and an equivalent global chemicals company, multiple global engineering, procurement and construction, or EPC companies, multiple leading key to manufacturers and prominent engineering and consulting companies. The burner demonstration went seamlessly, and from what we can tell, the presentations were well received, with active engagement as a significant discussion throughout the day. I'm also pleased to note that there was significant interest in the new 100-cent hydrogen-capable burner. What was also particularly pleasing was the continuing active dialogue and, in particular, when our customers raised their needs and highlighted how our technology can help them solve their respective challenges and the value of these solutions for them, which is very helpful as we prioritise our product development initiatives.

Jim Deller: I have, frequently emphasised that one of our priorities is to develop familiarity and confidence in our technology and its capabilities throughout our customers and other industry stakeholders. Obviously, a key part of this is developing our install base, but we can also progress, this by holding events such as this, in which we demonstrate that our technology operating in the Zco test furnaces.

Speaker Change: his demonstration was well attended includinged by senior technical representatives of two global super major refineries and an equivalent global chemicals company multiple global engineering procurement and construction or epc companies mgple leading heat to manufacturers and proment engineering and consulting companies

Jim Deller: As you would expect, this was accompanied by a series of presentations and discussions about our technology, how it is installed and operated, etc., including an introduction and presentation of our new hydrogen burners, which provided an opportunity for our customers to literally see it in person for the first time. This demonstration was well attended, including by senior technical representatives of two, global supermajor refineries and an equivalent global chemicals company, multiple global engineering procurement and construction, or EPC, companies, multiple leading heater manufacturers and prominent engineering and consulting companies.

Jim Deller: The burner demonstration went seamlessly, and from what we can tell, the presentations were well received with active engagement and significant discussion throughout the day. I'm also pleased to note there was significant interest in the new 100% hydrogen capable burner.

Speaker Change: the bberurnard demonstration went seamlessly and from what we can tell with the presentations were received with active engagement as significant discussion throughout the day

Speaker Change: i'm also pleased to note that there was significant interest in the new one hundred cent hydrogen cden bannetner

Jim Deller: What was also particularly pleasing was the continuing active dialogue, and in particular, with our customers raising their needs and highlighting how our technology can help them solve their respective challenges and the value of these solutions for them, which is very helpful as we prioritise our product development initiatives.

Speaker Change: what was also a particularly pleasing was the continuing act of dialogue and in particular but our customers raising their needs and highlighting how our technology can help them solve their respective challenges and the value of these solutions for them

Speaker Change: which is very helpful as we prioritize our product development initiatives

Jim Deller: There have been some developments in clean air regulations in both Texas and Colorado, that are relevant to both our process and boiler burner product lines.

Jim Deller: They have been some developments in clean air regulations in both Texas and Colorado that are relevant to both our process and boiler burner product lines. First, in Texas, there was a final certification by the United States EPA of Texas's reclassification of non-attainment status for compliance with the 2015 national and the air quality standards for ozone from moderate to serious for both the greater Houston and greater Dallas regions. This triggers many actions by the Texas Commission on Environmental Quality or TCEQ, most notably a revision of the state implementation plans or SIPs for both regions and implementation of new reasonable available control technology or ranked rules for emission sources.

Speaker Change: theyre helping some developments in cleanair regulations in both texas and colorado that are relevant to both our process and boiler berta product lines

Jim Deller: First, in Texas, there was a final certification by the United States EPA of Texas's reclassification of non-attainment status for compliance with the 2015 National Ambient Air Quality Standards for ozone from moderate to serious for both the Greater Houston and Greater Dallas regions.

Speaker Change: first in texas

Speaker Change: there was a final certification by the united states epaa of texas reclassification of monottainment established for compliance with the two thousand and fifteen national ambian air quality standards for ozone from moderate to serious for both the greater houston and greater dallas regions

Jim Deller: This triggers many actions by the Texas Commission on Environmental Quality, or TCEQ, most notably, a revision of the state implementation plans, or SIPs, for both regions, and implementation of new reasonable available control technology, or RACT, rules for emission sources.

Speaker Change: this triggers many actions by the texas commission on environment of quality or tq

Speaker Change: most notably a revision of the st implementation plans or sits for both regions and implementation of new reasonable avail control technology or ranked rules for emission sources

Jim Deller: We believe these developments are good news for the long-term clear sign business. I will temper that development with a reminder that government and regulatory processes take time to be implemented, if at all, and changes to the state implementation plans and wrapped rules are not due until late next year into early 2026. Although, on the positive side, customers in the effective areas and the regulators issuing permits know that these changes are on the horizon, so we should expect no requirements for new permits and opportunities to be pushed down ahead of the new regulations being formalized.

Jim Deller: We believe these developments are good news for the long-term clear sign business.

Speaker Change: we believe these developments are good news for the long-term clear time business

Jim Deller: I will temper that development with a reminder that government and regulatory processes take time to be implemented, if at all, and the changes to the state implementation plans and RACT rules are not due until late next year into early 2026.

Speaker Change: i will temend to that development with a reminder that government and regularory processes take time to be implemented if at all and the changes the state implementation plans and rapped walls are not due until late next year into early two thousand and twenty-six

Jim Deller: Although, on the positive side, customers in the affected areas and the regulators issuing permits know that these changes are on the horizon, so we should expect NOx requirements for new permits and opportunities to be pushed down ahead of the new regulations being formalized.

Speaker Change: although on the positive side customers in the effective areas and the regulators issuing permits know that these changes are on the horizon so we should expect not requirements for new permits and opportunities be pushed down ahead to all the new regulations formized

Jim Deller: Secondly, in Colorado, following the recent reclassification of federal ozone non-attainment zone severity for Denver and the North Front Range, Colorado Governor Polis sent a letter to the Executive Director of the Colorado Department of Public, Health and Environment, dated March 16, 2024, directing action for ozone and NOx reductions, to understand their planning process and to identify how we could support their NOx reduction initiatives.

Jim Deller: Secondly, in Colorado, following the recent reclassification of federal ozone on attainment and severity for Denver and the North Front Range, Colorado Governor Polis sent a letter to the Executive Director of the Colorado Department of Public Health and Environment, dated March 16, 2024, directing action for ozone and NOx reduction. This letter directs these agencies to reduce NOx in effective regions by 30% by the end of 2025 and by 50% by the end of 2030. Following this development about two weeks ago, we met in person with the senior staff of both the Department of Public Health and Environment and the Energy and Carbon Management Commission to introduce Clearsign technologies to understand their planning process and to identify how we could support their NOx reduction initiatives.

Speaker Change: secondly in colorado

Speaker Change: following the recent classification of federal ozone nollattainment zone severity for dever and the north front range colorado governor polis sent a letter to the executive director of the color department of public health and environment dated march sixteen two thousand and twenty four directing action for ozone and notx reductions

Speaker Change: this letter directs these agencies to reduce knocks in theaffected regions by thirty percent by the end of two thousand andtwenty five and by fifty percent by the end of two thousand and thirty

Speaker Change: following this development about two weeks ago we met in person with the senior staff for both the department of public health and environment and the energy in carbon management commission to introduce clear ing technologies

Speaker Change: to understand their planning process and to identify how we could support their nx-reduction initiatives

Jim Deller: Now turning to boiler burners.

Jim Deller: Now turning to boiler burners. The commissioning of our large 1200 horsepower, 2.5 ppm NOx burner, branded isero NOx, for a recycling plant in California is underway. This burner is installed, and as you would expect with this being the first burner of this scale, there are some details to work through. However, we believe we are close to having these worked out and look forward to having this plant in full operation and the formal source test completed. When in service, we believe that this will be a prominent development in the industry and a great reference installation for us.

Jim Deller: The commissioning of our large 1,200 horsepower, 2.5 ppm NOx burner, branded IZERO NOx, for a recycling plant in California is underway. This burner is installed, and as you would expect with this being the first burner of this scale, there are some details to work through. However, we believe we are close to having these worked out and look forward to having this plant in full operation and the formal source test completed.

Speaker Change: now turning to boil ofvendors

Speaker Change: the commissioning of our large tfourl hundred horse power two point five p p m lockxburner brandon is zeronox for a recycling plned in california is underway

Speaker Change: this burners installed and as you would expect with this being the first burn of this scale there are some details to work through he we believe we are closed to having these workout and look forward to having this plant in fu operation and the former sorce test completed

Jim Deller: When in service, we believe that this will be a prominent development in the industry and a great reference installation for us.

Speaker Change: when in certain of this we believe that this will be a prominent development in the industry and a great reference installation for us

Jim Deller: We also have the first article of our new horizontally fired burner design being manufactured. If this burner performs as we expect it to, and as shown in our computer modeling, it will provide extremely low NOx in short length heaters and boilers.

Jim Deller: We also have the first article of our new Haas-Oftified burner design being manufactured. If this burner performs as we expected to and as shown in our computer modeling, it will provide extremely low NOx in short-length heaters and boilers. Bear in mind, our current boiler burner technology is optimized for fire tube boilers in which the space for flame is typically long and narrow. The first burner of this new design is for installation in a hot oil heater in Texas. The reason I've included this in this section is that we anticipate that the biggest market for this new burner will be bought tube boilers, a segment of the market that we have not been able to effectively pursue at this point.

Speaker Change: we also have the first article of venue horizamplified burnthe design being manufactured

Speaker Change: if this burn performs as we expected to and as shown in our computer modeling it will provide extremely lowan nockx in short length heers and boilers

Jim Deller: Bear in mind, our current boiler burner technology is optimized for fire tube boilers in which the space for the flame is typically long and narrow.

Speaker Change: very mind a current bo the berther technology is optimized or fiveire gue boilers in which the space forthe flame is typically long and narrow

Jim Deller: The first burner of this new design is for installation in a hot oil heater in Texas.

Speaker Change: the first burner of this new design is for installation in a hot oil heater in texas

Jim Deller: The reason that I've included this in this section is that we anticipate that the biggest market for this new burner will be water tube boilers, a segment of the market that we have not been able to effectively pursue at this point. Our expectation is that we will be able to install this burner in the fourth quarter this year, although this may be contingent on the coordination of the installation with the client's operation schedule.

Speaker Change: the reason i've included this in this section is that we anticipate that the biggest market for this new berurner will be booughted u boilers a seg of the market that we have not been able to effectively pursue this point

Jim Deller: Our expectation is that we will be able to install this burner in the fourth quarter of this year, although this may be contingent on the coordination of the installation with the client's operations schedule. We are pushing to arrange for this installation to be as early as we can because we already have several opportunities waiting for this new design to be demonstrated in service. Both in terms of repeat orders from existing customers and from potential new clients, uncovering both hot oil midstream type processes or applications and water tube boilers.

Speaker Change: expectation is that we will be eldto installed this bururnma in the fourth quarter of this year although this may be contingent on the coordination of the installation with the client's operation schedule

Jim Deller: We are pushing to arrange for this installation to be as early as we can because we already have several opportunities waiting for this new design to be demonstrated in service, both in terms of repeat orders from existing customers and from potential new clients, and covering both hot oil midstream type process heater applications and water tube boilers.

Speaker Change: we are pushing to arrange this installation to be as earlyas we can because we already have several opportunities waiting this new design to be demonstrated in service

Speaker Change: but in terms of repeat orders from existing customers and from potential new clients and covering both hot oil midstream type process heat to applications and wateritube boilers

Jim Deller: Other upcoming events related to our boiler burner line include an industry demonstration that will be held in Santa Ana, California next week.

Jim Deller: Other upcoming events related to our boiler burner line include an industry demonstration that will be held in Santa Ana, California, next week. The investor-owned California utility companies fund energy efficiency research on available and near-future products and technologies. One of these programs is called the Statewide Gas Emerging Technologies or GET program, which is administered by a Southern California gas company through a contract awarded to ICF, a global consulting and digital services company. The get programs objective is to source and screen technologies, gather necessary technical information and data on potential efficiency gains to identify key market barriers to the adoption of these technologies and develop strategies to overcome such barriers.

Speaker Change: other upcoming events related to our bo of burnalign included industry demonstration that will be held in santa and a california next week

Jim Deller: The investor-owned California utility companies fund energy efficiency research on available and near future products and technologies. One of these programs is called the Statewide Gas Emerging Technologies, or GET, program, which is administered by a Southern California gas company through a contract awarded to ICF, a global consulting and digital services company. The GET program's objective is to source and screen technologies, gather necessary technical information, and data on potential efficiency gains to identify key market barriers to the adoption of these technologies and develop strategies to overcome such barriers.

Speaker Change: the investor earned california utility companies fund the energy efficiency research on available and near future products and technologies

Speaker Change: one of these programs is called the statewide gas emerging technologies or get program

Speaker Change: which is administered by southern california gas company through a contract awarded to icf a global consulting and digital services company

Speaker Change: the gest programs objective is to source and screen technologies gather necessary technical information and data or potential efficiency gains to identify key market barriers to adoption of these technologies and develop strategies to overcome such barriers

Jim Deller: Clearsign is pleased to have been selected to participate in this important program.

Jim Deller: Clearsign is pleased to have been selected to participate in this important program. We have completed a study that formally tested and quantified operating efficiency improvements that will basically translate into fuel savings of the Clearsign Court boiler burner technology compared to a typical industry standard ultra-lone ox burner. The test method was developed by independent third-party engineers, and the testing was also overseen by independent third-party engineers or contracted directly by the get-program. We are not able to give results today as the work and data is owned by the Get-Program and they have not released their report at this time.

Speaker Change: clear is pleased to have selected participate in this important program

Jim Deller: We have completed a study that formally tested and quantified operating efficiency improvements, that will basically translate into fuel savings at the Clearsign core boiler burner technology compared to a typical industry standard ultra-low NOx burner. The test method was developed by independent third-party engineers, and the testing was also overseen by independent third-party engineers all contracted directly by the GET program.

Speaker Change: we have completed a study the formally tested and quantified operating efficiency improvements that will basically translate into fuel savings at the clear sign core boil of vernet technology compared to a typical inry standard ortralooxburner

Speaker Change: the test method was developed by independent third-party engineers and the testingy was also overseen by independent third party engineers or contracted directly buind to get program

Jim Deller: We are not able to give results today as the work and data is owned by the GET program, and they have not released their report at this time.

Speaker Change: we are not able to give results today as the work and data is owned by the get program and they have not released their report this time however i can say that the results were pleasing open in terms of efficiency and the noxemissions demonstrated

Jim Deller: However, I can say that the results were pleasing both in terms of efficiency and the NOx emissions demonstrated. We plan to provide access to this report on our website when available and also provide notification that it is issued and a link on LinkedIn. The study results and a physical demonstration of the burner in operation were presented at the industry demonstration next week. We are expecting approximately 70 attendees, including many from the various California air regulators, California refineries, both super major and local, national energy and infrastructure companies, engineering companies, and national boiler operators.

Jim Deller: However, I can say that the results were pleasing both in terms of efficiency and NOx emissions demonstrated.

Jim Deller: We plan to provide access to this report on our website when available, and also provide notification that it is issued and a link on LinkedIn.

Speaker Change: we plan to provine access to this report on our website when available and also provide notification but it is issued and a link on linked

Jim Deller: The study results and a physical demonstration of the burner in operation, will be presented at the industry demonstration next week. We are expecting approximately 70 attendees, including many from the various California air regulators, California refineries, both supermajor and local, national energy and infrastructure companies, engineering companies, and national boiler operators.

Speaker Change: the study results and a physical demonstration of the burning in operation what we presented at the industry demonstration next week

Speaker Change: we are expecting approximately seventy tendees including many from the various california air regulators california refineries both super major and local national energy and infrastructure companies engineering companies and national boiler operators

Jim Deller: One final project update on our boiler burner line.

Jim Deller: One final project update on our boiler burner line. In February this year, we announced an order which is for the first of four burners to a California plant. That first burner is in production, but the client schedule has moved out a little, and that burner is now scheduled to ship at the end of the year and has been stored by the end of the first quarter of 2025. As usual, we will keep you informed as that project progresses and as we get days for the remaining three burners for that project.

Speaker Change: i

Jim Deller: In February this year, we announced an order, which is for the first of four burners to a California client. That first burner is in production, but the client schedule has moved out a little, and that burner is now scheduled to ship at the end of the year and to be installed by the end of the first quarter of 2025.

Speaker Change: one final project update and our boiler ban alline

Speaker Change: in february this year we announced in order which is the first of four burnersus to a california plliant

Speaker Change: that first burners introuction but the client schedule has moved out a little and that burn is now scheduled to ship at the end of the year and to be stored by the end of the first quar of two thousand and twenty five

Jim Deller: As usual, we will keep you informed as that project progresses, and as we get dates for the remaining three burners for that project.

Speaker Change: as usual we wal keep through formed as that project progresses and as we get dates for the remaining three burns for that project

Jim Deller: And finally, regarding boiler burners, on the last call I mentioned that our China certification project has seen some delays, or some progress has been made. I did not have any significant updates regarding the project schedule at this time.

Jim Deller: And finally, regarding boiler burners, on the last call I mentioned that our China certification project has seen some delays or some progress has been made.

Speaker Change: and finally a regarding boer burners on the last calling mentioned that our china certification project has seen some delays

Jim Deller: I did not have any significant updates regarding the project schedule at this time.

Speaker Change: or some progress have been made i did not have any significant updates regard ing the project schedule at this time

Jim Deller: In closing, it is worthwhile to look at what we are doing at a tactical level, and also at a strategic or high level. The updates I have given here are mostly tactical, individual project updates, customer demonstrations, etc.

Jim Deller: In closing, it is worth hard to look at what we are doing at a petrol level and also at a strategic or high level. The updates I have given here are mostly tactical, individual product updates, customer demonstrations, etc. At a strategic level, there are areas of focus that are consistent and is useful to articulate these to provide a framework to understand what we are doing and to gauge progress. Our top line objective is to increase sales and profitability both in the near term but also increasingly in the future. To do this, we need to continue developing products that provide values for our customers, and because our technology is new, we need to develop our reputation and familiarity in the market.

Operator: Porter, 2024, Conference Call All participants will be in a lesson only mode.

Operator: Porter, 2024, Conference Call All participants will be in a lesson only mode. Should you need assistance please signally conference specialist by pressing the star key followed by zero. After today's presentation there will be an opportunity to ask questions. To ask a question you may press star then one on your touchstone phone. To withdraw your question please press star then two. Please note this event is being recorded.

Speaker Change: inclosing it is worth while to look at what we are doing at a petool level and also at a strategic or high level

Operator: Should you need assistance please signally conference specialist by pressing the star key followed by zero.

Jim Deller: At a strategic level, there are areas of focus that are consistent, and it is useful to articulate these to provide a framework to understand what we are doing and to gauge progress. Our top-line objective is to increase sales and profitability both in the near term, but also increasingly in the future.

Speaker Change: theupdates i have given here on mostly tactical individual project updates customer demonstrations etc

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 touchstone phone.

Speaker Change: at a strategic level there are areas of focus that are consistent and is useful to articulate these to provide a framework to understand what we are doing and to engau progress

Operator: To withdraw your question please press star then two.

Operator: Please note this event is being recorded.

Matthew Selinger: I would like to turn a conference over to Matthew Selinger of firm IR group.

Matthew Selinger: I would like to turn a conference over to Matthew Selinger of firm IR group. Please go ahead. Good afternoon and thank you operator.

Jim Deller: To do this, we need to continue developing products that provide value to our customers, and because our technology is new, we need to develop our reputation and familiarity in the market. In working towards this objective, we have discussed significant new orders, especially the process burner order for chemical companies likely in the most significant United States market for us in the midterm and also the engagement of a leading heating manufacturer and engineering firm who is actually our direct customer for this project and is now getting first-hand experience of our products and working with Clearsign.

Speaker Change: top line objective is to increase sales and profitability both in the near term but also increasingly in the future

Speaker Change: to do this we need to continue developingment products that provide values to our customsers and because our technologyies is new we need to develop our reputation and familiarity in the market

Operator: Please go ahead.

Matthew Selinger: Welcome everyone to the Clearsign Technology Corporation second quarter, 2024 Results Conference Call. During this conference call the company will make forward looking statements. Any statement that is not a statement of historical fact is a forward looking statement. This includes remarks about the company's projections, expectations, plans, beliefs and prospects. 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 different materially from those described in the forward looking statements.

Matthew Selinger: Good afternoon and thank you operator.

Matthew Selinger: The risk and uncertainties associated with the forward looking statements made in this conference call include, but are not limited to whether field testing and sales of Clearsign's products will be successfully completed, whether Clearsign will be successful in expanding the market for its products, and other risks that are described in Clearsign's public periodic filings with the SEC, including a discussion in the risk factor section of the 2023 annual report on form 10K for the period ended December 31, 2023. 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.

Jim Deller: In working towards the subjective, we have discussed significant new orders, especially the process burner order for a chemical company in Texas. Blackly in the most significant United States market for us in the mid-term and also the engagement of a leading heating manufacturer and engineering firm who is actually a direct customer for this project and is now getting first-hand the experience of our products and working under this general, seeding the industry objective, we also have carried out a large-scale product demonstration in the ZCOP facility for our process burners last week, and we'll be doing another demonstration for our fine-tube boiler product line in California next week.

Jim Deller: Welcome everyone to the Clearsign Technology Corporation second quarter, 2024 Results Conference Call.

Speaker Change: in working towards the subjective we have discussed significant new orders especially the process burn orderfor a chemical company in texas

Jim Deller: During this conference call the company will make forward looking statements. Any statement that is not a statement of historical fact is a forward looking statement. This includes remarks about the company's projections, expectations, plans, beliefs and prospects.

Matthew Selinger: IwouldnowliketoturntheconferenceovertoMatthewSelingerofFirmIRGroup.

Speaker Change: likely in the most significant united states market for us in the midterm and also the engagement of a leading heating manufacturer and engineering firm who is actually add theredirect customer for this project and is now getting firthand experience of our products and working with clear sign

Jim Deller: 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 different materially from those described in the forward looking statements.

Operator: Pleasegoahead.

Jim Deller: The risk and uncertainties associated with the forward looking statements made in this conference call include, but are not limited to whether field testing and sales of Clearsign's products will be successfully completed, whether Clearsign will be successful in expanding the market for its products, and other risks that are described in Clearsign's public periodic filings with the SEC, including a discussion in the risk factor section of the 2023 annual report on form 10K for the period ended December 31, 2023.

Operator: Goodafternoon,andthankyou,Operator.

Speaker Change: under this general seing the industry objective we also have carried it out a large scale product demonstration the zekco facility for our process burners last week and we'll be doing another demonstration for our five boiler product line california next week

Operator: Welcome,everyone,totheClearsignTechnologiesCorporationSecondQuarter2024ResultsConferenceCall.

Operator: Duringthisconferencecall,thecompanywillmakeforward-lookingstatements. Anystatementthatisnotastatementofhistoricalfactisaforward-lookingstatement. Thisincludesremarksaboutthecompany'sprojections,expectations,plans,beliefs,andprospects. Thesestatementsarebasedonjudgmentsandanalysisasofthedateofthisconferencecallandaresubjecttonumerousimportantrisksanduncertaintiesthatcouldcauseactualresultstodiffermateriallyfromthosedescribedintheforward-lookingstatements.

Jim Deller: We're also nurturing our relationship with Current Energy, as evidenced by press releases from both us and them regarding our installations there, and we will continue to publish news and journal articles related to our installations with Current Energy throughout the remainder of this year. In support of our continued business growth, we are investing time and energy and bringing new products to market and developing new markets themselves. The new products that are most advanced are our new process burner capable of burning fuel gas ranging from the fuel gases in use today up to 100% hydrogen while maintaining the same market-leading mox levels, enabling the burners to be installed now and our customers to be ready for new higher hydrogen fuels as those become available.

Speaker Change: we're also noturing our relationship with current energy as evidenced by press releases from both us and they regarding our installations there and we will continue to publish news and journ last goals related to our installations with current energy throughoutthe remainder of this year

Jim Deller: And we will continue to publish news and journal articles related to our installations with Kern Energy throughout the remainder of this year.

Operator: Therisksanduncertaintiesassociatedwiththeforward-lookingstatementsmadeinthisconferencecallinclude,butarenotlimitedto,whetherfieldtestingandsalesofClearsign'sproductswillbesuccessfullycompleted,whetherClearsignwillbesuccessfulinexpandingthemarketforitsproducts,andotherrisksthataredescribedinClearsign'spublicperiodicfilingswiththeSEC,includingadiscussionintheRiskFactorsectionofthe2023AnnualReportonForm10-KfortheperiodendedDecember31,2023.

Jim Deller: 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.

Jim Deller: In support of our continued business growth, we are investing time and energy in bringing new products to market and developing new markets themselves. The new products that are most advanced are our new process burner capable of burning fuel gas ranging from the fuel gases in use today up to 100% hydrogen while maintaining the same market-leading NOx levels, enabling the burners to be installed now and our customers to be ready for new higher hydrogen fuels as those become available.

Speaker Change: in sport of our continued business growth we are investing time and energy and bring a new products to market and developing new markets themselves

Matthew Selinger: So on the call with me today, our Jim Deller, Clearsign's Chief Executive Officer and Brent Hines, Clearsign's Chief Financial Officer.

Matthew Selinger: So on the call with me today, our Jim Deller, Clearsign's Chief Executive Officer and Brent Hines, Clearsign's Chief Financial Officer.

Brent Hines: So with that, at this point in the call, I would like to turn the call over to CFO Brent Hines.

Brent Hines: So with that, at this point in the call, I would like to turn the call over to CFO Brent Hines. So Brent, please go ahead. Thank you, Matthew. And thank you to everyone joining us here today. Before I begin, I'd like to note that our financial results for the second quarter of 2020 or are included in the quarterly report on form 10Q. It was filed with the SEC last Wednesday on August 14.

Speaker Change: thenew products that are most advanced our own new process berurn capable of burning fuel gas ranging from the fuel gases in use today

Brent Hines: So Brent, please go ahead.

Brent Hines: Thank you, Matthew.

Speaker Change: of to one hundred percent hydrogen while maintaining the same market-leading ox levels enabling the burners to be inststored now and our custom d ready for new higher hyrogen fuels because those become available

Brent Hines: And thank you to everyone joining us here today.

Operator: Exceptasrequiredbylaw,Clearsignassumesnoresponsibilitytoupdatetheseforward-lookingstatementstoreflectfutureeventsoractualoutcomesanddoesnotintendtodoso.

Brent Hines: Before I begin, I'd like to note that our financial results for the second quarter of 2020 or are included in the quarterly report on form 10Q.

Jim Deller: We are seeing a lot of interest in this new burner as evidenced in the level of engagement during our demonstration last week. And as mentioned, we are starting to provide sale proposals for this burner.

Jim Deller: We are seeing a lot of interest in this new burner as evidence in the level of engagement during our demonstration last week, and as mentioned, we are starting by itself proposals for this burner. The second new product line is the new hose-onclified burner with the first of this new technology currently in fabrication and plans to be installed in hot oil heater in Texas. When successfully installed and commissioned, this burner is expected to open up the water tube boiler market for us in addition to the midstream heaters in the process burner market. We also already have interest in this burner; just waiting on the demonstrated operation of this first article in Texas.

Operator: So,onthecallwithmetodayareJimDeller,Clearsign'sChiefExecutiveOfficer,andBrentHines,Clearsign'sChiefFinancialOfficer.

Brent Hines: It was filed with the SEC last Wednesday on August 14.

Speaker Change: we are seeing a lot of interest in this new burner as a evidence in the level engagement jury our demonstration last week and as mentioned we are start to provide sales proposals for this bururn

Brent Hines: And with that, I'd like to give an overview of the financials for the second quarter of 2024.

Brent Hines: And with that, I'd like to give an overview of the financials for the second quarter of 2024. The second quarter of 2024, the company recognized approximately $45,000 in revenues, compared to $150,000 for the same comparable period in 2023. This $105,000 decrease in revenues is driven by the natural lumpiness in our business as we continue to work to build our sales pipeline. While we don't provide guidance, Jim will comment later on our project pipeline with shipping and delivery timeframes, which can give an indication of future revenues.

Jim Deller: The second new product line is the new horizontally fired burner.

Matthew Selinger: So,withthat,atthispointinthecall,IwouldliketoturnthecallovertoCFOBrentHines.

Brent Hines: The second quarter of 2024, the company recognized approximately $45,000 in revenues, compared to $150,000 for the same comparable period in 2023. This $105,000 decrease in revenues is driven by the natural lumpiness in our business as we continue to work to build our sales pipeline.

Jim Deller: We're the first of this new technology currently in fabrication and plans to be installed in the hot oil heater in Texas.

Speaker Change: the second new product line because the new horizontli fired burn with the first of this new technology current fabrication and plans to be installed in the hot oil heater in texas

Matthew Selinger: So,Brent,pleasegoahead.

Brent Hines: Thankyou,Matthew.

Brent Hines: Andthankyoutoeveryonejoiningusheretoday.

Jim Deller: When successfully installed and commissioned, this burner is expected to open up the water tube boiler market for us in addition to the midstream heaters in the process burner market.

Brent Hines: BeforeIbegin,I'dliketonotethatourfinancialresultsforthesecondquarterof2024areincludedinthequarterlyreportonForm10-QthatwasfiledwiththeSEClastWednesdayonAugust14.

Speaker Change: when successful installre in commissioned this burns expected to open up the wardsat tube boiler market for us in addition to the midstream heats in the process burna market

Jim Deller: We also already have interest in this burner just waiting on the demonstrated operation of this first article in Texas.

Brent Hines: While we don't provide guidance, Jim will comment later on our project pipeline with shipping and delivery timeframes, which can give an indication of future revenues.

Brent Hines: Andwiththat,I'dliketogiveanoverviewofthefinancialsforthesecondquarterof2024.

Speaker Change: we also already have interest in this burn just witing on the demonstrated operation of this first arking in texas

Jim Deller: We also maintain an ongoing portfolio of early stage development projects and are receiving multiple customer requests for new variations of our technology, some of which we continue to develop and some which will get dropped as we work through the standard technical, business, and marketing assessments of these different opportunities.

Jim Deller: We also maintain an ongoing portfolio of early stage development projects and are receiving multiple customer requests for new variations of our technology, some of which we continue to develop and some which will get dropped that we work through the standard technical, business, and marketing assessments of these different opportunities.

Brent Hines: Forthesecondquarterof2024,thecompanyrecognizedapproximately$45,000inrevenues,comparedto$150,000forthesamecomparableperiodin2023. This$105,000decreaseinrevenuesisdrivenbythenaturallumpinessinourbusinessaswecontinuetoworktobuildoursalespipeline.

Brent Hines: Looking at the income statement as a whole, our net loss for the second quarter in 2024 was approximately $1.9 million, which is an unfavorable increase of approximately $400,000 compared to the same period in 2023. This unfavorable year-over-year change was predominantly due to a one-time, non-cash event for $260,000 related to the besting of restricted stock units in connection with the resignation of Mr. Hoffman from the Board of Directors.

Brent Hines: Looking at the income statement as a whole, our net loss for the second quarter in 2024 was approximately $1.9 million, which is an unfavorable increase of approximately $400,000 compared to the same period in 2023. This unfavorable year-over-year change was predominantly due to a one-time, non-cash event for $260,000 related to the besting of restricted stock units in connection with the resignation of Mr. Hoffman from the Board of Directors.

Speaker Change: we also maintain an ongoing portfolio of early stage development projects now receiving multiple customer requests when new variations of our technology

Speaker Change: some of which we continue to develop and some which 'will get dropped as we work through the standard technical business and marketing assessments of these different opportunities

Jim Deller: In the same category of development for the future, we are also considering the development of our resources, such as the recent investment in computer modeling capabilities.

Jim Deller: In the same category of development for the future, we are also considering the development of our resources, such as the recent investment in computer modeling capabilities. We also engage in developing market access to the future. I told briefly about our engagement with a regulatory leadership in Colorado, which we will continue to work on. We are also in frequent contact with the California Air Resources Board, the body that oversees the air districts in California, and also members of the TCEQ in Texas. We will appreciate that to get all this done, in addition to our ongoing normal business operations, will take a lot of time and effort.

Brent Hines: Whilewedon'tprovideguidance,Jimwillcommentlateronourprojectpipelinewithshippinganddeliverytimeframes,whichcangiveanindicationoffuturerevenues.

Speaker Change: in the same countere of development for the future we are also considering the development of our resources such as the recent investment in computer modeling capabilities

Jim Deller: We're also engaged in developing market access to the future.

Jim Deller: I talked briefly about our engagement with the regulatory leadership in Colorado, which we will continue to work on.

Brent Hines: Lookingattheincomestatementasawhole,ournetlossforthesecondquarterin2024wasapproximately$1.9million,whichisanunfavorableincreaseofapproximately$400,000comparedtothesameperiodin2023. Thisunfavorableyear-over-yearchangewaspredominantlyduetoaone-timenon-casheventfor$260,000relatedtothevestingofrestrictedstockunitsinconnectionwiththeresignationofMr. HoffmanfromtheBoardofDirectors.

Brent Hines: Now I'd like to shift focus from our income statement to the balance sheet, more specifically cash.

Brent Hines: Now I'd like to shift focus from our income statement to the balance sheet, more specifically cash. Our net cash used in operations for the second quarter of 2024 was approximately 1.5 million compared to a generation of cash of approximately 50,000 for the same period in 2023. This unfavorable year-over-year change was driven by the prior year's operations. As you may recall, during the second quarter of 2023, we collected a significant amount of cash from customers because we met billing milestones specified in our contracts.

Speaker Change: we also engaged in developing market access of the future

Jim Deller: We are also in frequent contact with the California Air Resources Board, the body that oversees the air districts in California, and also members of the TCEQ in Texas.

Speaker Change: at told briefly about our engagement with a regulatory leadership in colorado which is will continue to work on we are also in freking contact with the california air resources board the body that oversees the air districts in california and also members of the tctwo in texas

Brent Hines: Our net cash used in operations for the second quarter of 2024 was approximately 1.5 million compared to a generation of cash of approximately 50,000 for the same period in 2023.

Jim Deller: You will appreciate that to get all this done, in addition to our ongoing normal business operations, will take a lot of time and effort.

Brent Hines: This unfavorable year-over-year change was driven by the prior year's operations. As you may recall, during the second quarter of 2023, we collected a significant amount of cash from customers because we met billing milestones specified in our contracts.

Jim Deller: We are conscious of the costs of running ClearSign, and we only add to our headcount when absolutely needed.

Speaker Change: we will appreciate that to get all this done in addition to our ongoing normal business operations will take a lot of time and effort we are conscious of the cost of running clear signed and we only had to our headcount but absolutely needed

Jim Deller: We are conscious of the cost of running Clear-Signed and we only add to our headcount when absolutely needed. I greatly appreciate all the hard work and dedication of our team.

Jim Deller: I greatly appreciate all the hard work and dedication of our team.

Brent Hines: NowI'dliketoshiftfocusfromourincomestatementtothebalancesheet,morespecificallycash.

Jim Deller: And with that, I'd like to open up the call for questions.

Operator: Please, operator.

Brent Hines: Ournetcashusedinoperationsforthesecondquarterof2024wasapproximately$1.5million,comparedtoagenerationofcashofapproximately$50,000forthesameperiodin2023. Thisunfavorableyear-over-yearchangewasdrivenbytheprioryear'soperations. Asyoumayrecall,duringthesecondquarterof2023,wecollectedasignificantamountofcashfromcustomersbecausewemetbillingmilestonesspecifiedinourcontracts.

Speaker Change: i greatly appreciate all the hardwwork and dedication our te

Operator: And with that, I'd like to open up the call for questions.

Operator: Thank you.

Brent Hines: Shifting gears to continue our focus on cash, I would also like to revisit an announcement we made on June 20, 2024, where we announced the full exercise of the clear SBB participation right. Pursuant to a stock purchase agreement dated July 12, 2018, clear SBB can participate in equity offerings to maintain its 19.99 percent ownership. The full exercise of the participation right added approximately $4.3 million in cash to the balance sheet. Apple this with the other recent equity offerings, we added approximately $13 million in cash to our balance sheet in the second quarter of 2024. Therefore, as of June 30, 2024, we reported a balance of approximately $16 million in cash and cash equivalents.

Brent Hines: Shifting gears to continue our focus on cash, I would also like to revisit an announcement we made on June 20, 2024, where we announced the full exercise of the clear SBB participation right. Pursuant to a stock purchase agreement dated July 12, 2018, clear SBB can participate in equity offerings to maintain its 19.99 percent ownership. The full exercise of the participation right added approximately $4.3 million in cash to the balance sheet. Apple this with the other recent equity offerings, we added approximately $13 million in cash to our balance sheet in the second quarter of 2024. Therefore, as of June 30, 2024, we reported a balance of approximately $16 million in cash and cash equivalents.

Operator: Please operate it. Thank you.

Speaker Change: andwith that i'd to open up the call for questions please operator

Operator: We will now begin the question and answer session.

Operator: We will now begin the question-and-answer session. To ask a question, you may press star, then one on your touchstone phone. If you're using your speaker phone, please pick up your headset before pressing the keys. To enjoy a question, please press star, then two.

Operator: To ask a question, you may press star, then one on your touchtone phone. If you're using a speakerphone, please pick up your handset before pressing the keys.

Speaker Change: thank you we will not begin the question in answer session to ask a question you may press start then one on your couchstone phone if you're using a speaker phone please speak up your handset before pressing the keys

Operator: To withdraw your question, please press star, then two.

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

Operator: At this time, we will pass momentarily to assemble our roster.

Speaker Change: to enjow your question these by start than two at this time will pass momententirely toassemble our roster

Operator: Your first question comes from the line of Amit Dayal from HC Wainwright.

Brent Hines: Shiftinggearsbutcontinuingourfocusoncash,IwouldalsoliketorevisitanannouncementwemadeonJune20,2024,whereweannouncedthefullexerciseoftheCLEARSBBparticipationright. PursuanttoastockpurchaseagreementdatedJuly12,2018,CLEARSBBcanparticipateinequityofferingstomaintainits19.99%ownership. Thefullexerciseoftheparticipationrightaddedapproximately$4.3millionincashtothebalancesheet. Couplethiswiththeotherrecentequityofferings,weaddedapproximately$13millionincashtoourbalancesheetinthesecondquarterof2024.

Amit Dayal: Your first question comes from the line of Amit Dayal from HC Wainwright. Please go ahead.

amit dial: your first question comes on the line of amit dial from agency wind right these go ahead

Amit Dayal: Please go ahead.

Jim Deller: Thank you for taking my questions. So Jim, I mean, it's good to see all the progress you guys are making, and it's almost now getting hard to track, you know, all the sales and your pipeline. Could you maybe help us a little bit and give us a dollar sense of, you know, how much you have in hand as orders, you know, that you will be shipping out over the next few quarters and what is in the pipeline?

Speaker Change: the graph mementand thank you for digign questations

Amit Daryanani: so jim i mean it's good to see all the progress you guys of making and it's almost now getting hard to track you know all the sales and your pipeline could you maybe help us a little bit and give us a dollar sense of you know how much you have in hand as orders

Brent Hines: From a financial perspective, we believe this working capital position instills greater confidence in our customers and suppliers when doing business with us.

Brent Hines: From a financial perspective, we believe this working capital position instills greater confidence in our customers and suppliers when doing business with us.

Speaker Change: that you'will be shipping out over the next few quarters and what is in the pipeline

Jim Deller: And with that, I'd like to turn the call over to our CEO Jim Deller.

Jim Deller: And with that, I'd like to turn the call over to our CEO Jim Deller. Jim? Thank you, Brent, for the financial overview.

Jim Deller: Yes, thank you, Amit, and thank you for your question. I think to start, you know, I'll rephrase the, I think the general numbers we've given for everyone are products, obviously cover boilerburners and process burners in varying size, but keep things, things simple, a good estimate of the sales price or revenue per burner is $100,000 per item. So I can then talk to the, right, the number of burners both we have in our existing projects and then certainly talk a little bit about what we see in the future. So I think on the process burn line, the two big orders are mentioned: the 20 burners, which we expect to ship to California late in September. So there's 20 burners there.

Amit Dayal: Hey, good afternoon everyone.

Amit Dayal: Thank you for taking my questions.

Speaker Change: i

Met: yes thank you met and thank you for your question

Jim Deller: Jim?

Brent Hines: So,therefore,asofJune30,2024,wereportedabalanceofapproximately$16millionincashandcashequivalents. Fromafinancialperspective,webelievethisworkingcapitalpositioninstillsgreaterconfidenceinourcustomersandsupplierswhendoingbusinesswithus.

Amit Dayal: So, Jim, I mean, it's good to see all the progress you guys are making and it's almost now getting hard to track, you know, all the sales and your pipeline.

Jim Deller: Thank you, Brent, for the financial overview.

Speaker Change: i think to start you know i rephrase the r the gentleman as we ve given for everyone our products obviousy cover boiler burnners and process burnners and var in size

Jim Deller: As always, I'd like to thank everyone for joining us on the call today and for your interesting clear sign.

Jim Deller: As always, I'd like to thank everyone for joining us on the call today and for your interesting clear sign. Before I start on behalf of clear sign and the board, I want to thank our former chairman and board member Rob Hoffman for his years of service and for the continued financial support for clear sign provided by clear SBB. Rob support was instrumental in fostering this company from a recession development technology company to the viable commercial entity we are today.

Amit Dayal: Could you maybe help us a little bit and give us a dollar sense of, you know, how much you have in hand as orders, you know, that you will be shipping out over the next few quarters and what is in the pipeline?

Jim Deller: Before I start on behalf of clear sign and the board, I want to thank our former chairman and board member Rob Hoffman for his years of service and for the continued financial support for clear sign provided by clear SBB. Rob support was instrumental in fostering this company from a recession development technology company to the viable commercial entity we are today.

Jim Deller: Yes, thank you, Amit, and thank you for your question.

Speaker Change: but keep them things simple a good estimate of the sales priceal revenue perburn one hundred thousand dollars

Brent Hines: Andwiththat,I'dliketoturnthecallovertoourCEO,JimDeller.

Speaker Change: her item

Speaker Change: so i can then talk to the ratherthe number of burnners both we have

Jim Deller: Jim?

Jim Deller: Thankyou,Brent,forthefinancialoverview.

Jim Deller: I think to start, you know, I'll, rephrase the general numbers we've given for everyone.

Speaker Change: in our existing projects and and then certainly talk a little bit about what we see

Jim Deller: Asalways,I'dliketothankeveryoneforjoiningusonthecalltodayandforyourinterestinCLEARsign.

Speaker Change: in the future so other think on the on the process burnal line the two big orders i mentioned the twenty burners which we expect a ship to california lat in september so there's twenty burners there

Jim Deller: On a similar note, I'd like to welcome Todd Silver to the clear sign board of directors to Phil Rob's vacancy as clear SBB's designate.

Jim Deller: On a similar note, I'd like to welcome Todd Silver to the clear sign board of directors to Phil Rob's vacancy as clear SBB's designate. Top rings over 30 years of leadership and financial experience in industries spanning financial services, technology, healthcare and others.

Jim Deller: Our products obviously cover boiler burners and process burners in varying size, but to keep things simple, a good estimate of the sales price or revenue per burner is $100,000 per item.

Jim Deller: BeforeIstart,onbehalfofCLEARsignandtheboard,Iwanttothankourformerchairmanandboardmember,RobHoffman,forhisyearsofserviceandforthecontinuedfinancialsupportforCLEARsignprovidedbyCLEARSPV. Rob'ssupportwasinstrumentalinfosteringthiscompanyfromaresearchanddevelopmenttechnologycompanytotheviablecommercialentitywearetoday.

Jim Deller: So, I can then talk to the, right, the number of burners both we have in our existing projects and then certainly talk a little bit about what we see in the future.

Jim Deller: Top rings over 30 years of leadership and financial experience in industries spanning financial services, technology, healthcare and others.

Jim Deller: We have the engineering order, which we fully expect to progress for the chemical facility down in Texas. That's 26 burners. There's 46 in total, but just those two orders. There's two heaters that we've mentioned for a current energy. The engineering for those is just about complete. There are, you know, a handful of boilerburner and oil burner or hot oil heater burners in progress. The, obviously, we have the, the four burner plan with one single client in California. So I think that's the majority of the standard burn orders. There's obviously, there's engineering and service and spare parts and other work that we do.

Jim Deller: So, as I think on the process burner line, the two big orders, I mentioned the 20 burners which we expect to ship to California late in September. There's 20 burners there.

Speaker Change: we have the engineering order which we fully expect to progress or for the chemical facility down in texas that's twenty six bururners this forty six in total but just those two orders

Jim Deller: I think this is an exciting time for the company and we look forward to working with Todd and the other board members.

Jim Deller: I think this is an exciting time for the company and we look forward to working with Todd and the other board members.

Speaker Change: there's two heaters that we've mentioned for a current energy the engineer for those is just about complete

Jim Deller: For the call today, I will review our product line starting with our process burners, then move to boiler burners and then discuss the outlook for the rest of the year. So turning to our process burner line, in our last call, we discussed our multiple installations and follow-on orders from Kern Energy in California. At that time, our two largest heat and retrofit projects had just been started up and shortly afterwards, their emissions were verified by four more third-party measurements known as source tests. These two heaters are side by side, one with five burners and the other with eight. Since those two projects we have also received follow on orders for two additional heaters at Kern Energy.

Jim Deller: For the call today, I will review our product line starting with our process burners, then move to boiler burners and then discuss the outlook for the rest of the year. So turning to our process burner line, in our last call, we discussed our multiple installations and follow-on orders from Kern Energy in California. At that time, our two largest heat and retrofit projects had just been started up and shortly afterwards, their emissions were verified by four more third-party measurements known as source tests.

Jim Deller: Onasimilarnote,I'dliketowelcomeToddSilvertotheCLEARsignboardofdirectorstofillRob'svacancyasCLEARSPV'sdesignee. Toddbringsover30yearsofleadershipandfinancialexperienceinindustriesspanningfinancialservices,technology,healthcare,andothers. IthinkthisisanexcitingtimeforthecompanyandwelookforwardtoworkingwithToddandtheotherboardmembers.

Speaker Change: there are a handful of oiler burner and oil berurner hot oil heatater burners in progress also we have the

Jim Deller: These two heaters are side by side, one with five burners and the other with eight. Since those two projects we have also received follow on orders for two additional heaters at Kern Energy. By previous orders the initial purchase order is for engineering and we anticipate receiving the orders for the follow on fabrication and delivery to complete these retrofits after engineering scope is complete. We continue to work with Kern Energy, obviously on our existing projects but also in regards to discussions for the future.

Speaker Change: the four berurner

Speaker Change: plan with one single client in

Speaker Change: california

Speaker Change: so i think that's the majority of the standard burn ord is obvly there's engineering and service and price sparepartsand other work that we do but that's i think a good framework to assess the right the revenue to be recognized based on the work that we have

Jim Deller: Forthecalltoday,Iwillreviewourproductlinestartingwithourprocessburners,thenmovetoboilerburners,andthendiscusstheoutlookfortherestoftheyear. So,turningtoourprocessburnerline,inourlastcall,wediscussedourmultipleinstallationsandfollow-onordersfromKernEnergyinCalifornia. Atthattime,ourtwolargestheaterretrofitprojectshadjustbeenstartedup,andshortlyafterwards,theiremissionswereverifiedbyformalthird-partymeasurements,knownassourcetests. Thesetwoheatersareside-by-side,onewithfiveburnersandtheotherwitheight. Sincethosetwoprojects,wehavealsoreceivedfollow-onordersfortwoadditionalheatersatKernEnergy. Bypreviousorders,theinitialpurchaseorderisforengineering,andweanticipatereceivingtheordersforthefollow-onfabricationanddeliverytocompletetheseretrofitsafterourengineeringscopeiscomplete.

Jim Deller: But that's, I think, a good framework to assess the right, the revenue to be recognized based on the work that we have to date going forward. There's always conscious about a bird in the hand as opposed to what's out there. But we, you know, we are, we are seeing a lot of interest in the hot oil heater lined and no respect in that progress. We have, I mentioned, ongoing relationship with current energy, and there's certainly interest there. I think some of the more exciting things for me as I look further out to the future are the ongoing conversations with company like the Walco, the engineering company involved in the order we've just announced down in Texas.

Jim Deller: By previous orders the initial purchase order is for engineering and we anticipate receiving the orders for the follow on fabrication and delivery to complete these retrofits after engineering scope is complete.

Speaker Change: to date

Speaker Change: it

Speaker Change: going forward and always conscious about it a bird in the hand asopposed to what's out there but we you know we we are seeing a lot of interest in the hot oil eater

Jim Deller: We continue to work with Kern Energy, obviously on our existing projects but also in regards to discussions for the future. You may also have seen messaging from Kern Energy, particularly on LinkedIn and also news articles referencing our work together from their perspective, emphasizing their priorities and values and why our projects are important to Kern Energy. In their words, the supply of clear science technology helps the refinery continue to meet California's clean air goals and go beyond established emissions limits to further reduce their environmental footprint.

Speaker Change: lined and

Speaker Change: nor expect that to progress

Jim Deller: You may also have seen messaging from Kern Energy, particularly on LinkedIn and also news articles referencing our work together from their perspective, emphasizing their priorities and values and why our projects are important to Kern Energy. In their words, the supply of clear science technology helps the refinery continue to meet California's clean air goals and go beyond established emissions limits to further reduce their environmental footprint.

Speaker Change: we have i mentioned ongoing relationship with current energy and there's certainly interest there i think some of the the more exciting things for meas i look further out to the future

Jim Deller: We have the engineering order which we fully expect to progress for the chemical facility down in Texas.

Speaker Change: are right the ongoing conversations with company like the walker of the engineering company involved

Jim Deller: That's 26 burners.

Jim Deller: There's 46 in total with just those two orders.

Jim Deller: But also that we are getting drawn or invited to enter discussions at the feed stage of some very large projects. The feed stage is really the first financial and feasibility assessment that our customers go through when developing projects. These are typically going to be, you know, two years out, something in that time frame, sometimes even more. But the important thing is that's how you load the pipeline and that's where the growth and the long term growth of the company comes from, is by getting involved in these really big projects early. For me, the reason that's encouraging one is for that pipeline, but also it's an indication of the growing recognition and trust of Clearsign's technology out there in the market.

Speaker Change: in the order we've justannounced in texas but also that we are getting drawn and invited to enter discussions at the pad stage of some very large projects

Jim Deller: WecontinuetoworkwithKernEnergy,obviouslyonourexistingprojects,butalsoinregardstodiscussionsforthefuture. YoumayalsohaveseenmessagingfromKernEnergy,particularlyonLinkedIn,andalsonewsarticlesreferencingourworktogetherfromtheirperspective,emphasizingtheirprioritiesandvalues,andwhyourprojectsareimportanttoKernEnergy.

Jim Deller: Since then, and most recently we have made further significant progress in our process burner product line.

Jim Deller: Since then, and most recently we have made further significant progress in our process burner product line.

Speaker Change: the fee stage is really the first financial and feasibility assessment that our customers go through when developing projects

Jim Deller: On July 17th, we announced that we had received the engineering order from engineering company and heater manufacturer for World Go USA Incorporated, a boosted international heater company. For the first phase of a project to retrofit four process heaters with a total of 26 clear sign core burners to be installed in the Gold Coast facility of a Fortune 500 global chemical company.

Jim Deller: On July 17th, we announced that we had received the engineering order from engineering company and heater manufacturer for World Go USA Incorporated, a boosted international heater company. For the first phase of a project to retrofit four process heaters with a total of 26 clear sign core burners to be installed in the Gold Coast facility of a Fortune 500 global chemical company. This order is important not just for the size and anticipated revenue associated with it as important as that is, but also because the order is destined for facility in Texas, which is part of the USA Gold Coast region that we expect to ultimately be the largest market for our current product lines, and one that is now in the process of advising their clean air regulations.

Speaker Change: these are typically going to be you know two years out something in that timeframe sometimes even more but the important thing that's how you load the pipeline and that's where the growth and the long term growth the company comes fromong is by getting evolved in these really big projects early

Jim Deller: Intheirwords,thesupplyofClearsign'stechnologyhelpstherefinerycontinuetomeetCalifornia'scleanairgoalsandgobeyondestablishedemissionslimitstofurtherreducetheirenvironmentalfootprint.

Jim Deller: Sincethen,andmostrecently,wehavemadefurthersignificantprogressinourprocessburnerproductline. OnJuly17th,weannouncedthatwehadreceivedtheengineeringorderfromengineeringcompanyandheatermanufacturerBilwulcoUSAIncorporated,aBoostedInternationalHeaterCompany,forthefirstphaseofaprojecttoretrofitfourprocessheaterswithatotalof26ClearsigncoreburnerstobeinstalledintheGulfCoastfacilityofaFortune500globalchemicalcompany. Thisorderisimportantnotjustforthesizeandanticipatedrevenueassociatedwithit,asimportantasthatis,butalsobecausetheorderisdestinedforfacilityinTexas,whichispartoftheUSAGulfCoastregionthatweexpecttoultimatelybethelargestmarketforourcurrentproductlines,andonethatisnowintheprocessofrevisingtheircleanairregulations. AndbecauseoftheprominenceoftheengineeringandheatermanufacturerBilwulco,we'reparamountintheselectionoftheequipmentforthisproject,whichultimatelyresultedintheorderbeingplacedwithClearsign.

Speaker Change: for me the reason that's encouraging one is for that pipeline but also it's an indication of the growing recognition and trust of clearlineines' technology out there in the market

Jim Deller: This order is important not just for the size and anticipated revenue associated with it as important as that is, but also because the order is destined for facility in Texas, which is part of the USA Gold Coast region that we expect to ultimately be the largest market for our current product lines, and one that is now in the process of advising their clean air regulations.

Jim Deller: Thank you. Just to clarify, the hot oil heater opportunity is tied to the horizontal process of burner offering that you are developing. That's correct. You know, we've used several names and that we're actually using that as more of a generic name that there are a number of different processes, but it's the, there's a number of horizontally fired. Heaters in the process, injuries and gas processing industries, soil heaters, glyphal heaters; there's a number of different processes. We've used the term oil heaters generally to describe those positively fired single burner for strapped burner applications.

Jim Deller: There's two heaters that we've mentioned for Kern Energy. The engineering for those is just about complete.

Speaker Change: understood thank you just to pify the hot oil heater opportunity is tied to the horizontal process or burner offering that you are developing

Speaker Change: that's correct you know we've used several names and that retue using that as more of a generic name that there are a number of different processes but it's the there's a number of horizontally fired

Jim Deller: Because of the prominence of the engineering and heater manufacturer for World Go, we're paramount in the selection of the equipment for this project, which ultimately resulted in the order being placed with clear sign.

Jim Deller: Because of the prominence of the engineering and heater manufacturer for World Go, we're paramount in the selection of the equipment for this project, which ultimately resulted in the order being placed with clear sign. For anyone looking to get inside into this industry, I encourage you to look up at the World Go and particularly to visit their website. They work with a distinguished list of major refiners, mainstream chemical companies. They are based in Houston and part of boosted international heaters or B.I.H., which includes sister companies in Europe, Malaysia and Singapore.

Jim Deller: There are, you know, a handful of boiler burner and hot oil burner or hot oil heater burners in progress.

Jim Deller: We obviously have the four burner plan with one single client in California.

Jim Deller: For anyone looking to get inside into this industry, I encourage you to look up at the World Go and particularly to visit their website.

Speaker Change: heers in the process jies and gas processing industries

Jim Deller: So, I think that's the majority of the standard burn orders.

Speaker Change: their soloil will heaters likeall heat is then there's a number ofdifferent process review theterm ho oil heat is generally to describe those horantly fired single burner for draft

Jim Deller: They work with a distinguished list of major refiners, mainstream chemical companies.

Jim Deller: They are based in Houston and part of boosted international heaters or B.I.H., which includes sister companies in Europe, Malaysia and Singapore.

Jim Deller: Obviously, there's engineering and service and spare parts and other work that we do, but that's, I think, a good framework to assess the revenue to be recognized based on the work that we have to date.

Jim Deller: Okay, got it. So you said you crazy are probably getting a little stretched with all of the activity, you know, in terms of business development and deployments going on.

Jim Deller: Going forward, I'm always conscious about a bird in the hand as opposed to what's out there, but we, you know, we are seeing a lot of interest in the hot oil heater line and, you know, we're expecting that to progress.

Speaker Change: better applications

Jim Deller: We have, I mentioned, ongoing relationship with Kern Energy, and there's certainly interest there.

Speaker Change: okay gotd it

Jim Deller: The Walker's business is predominantly the supply of heaters to refineries and petrochemical plant, or engineering and managing projects to upgrade them, including projects that require the change out of the burns.

Jim Deller: The Walker's business is predominantly the supply of heaters to refineries and petrochemical plant, or engineering and managing projects to upgrade them, including projects that require the change out of the burns. We believe that having the World Go express their confidence in clear sign technology, allowing them to have first-hand experience of it and exposure to what we do, make this world position to be part of the solutions they offer and may provide for future clients.

Speaker Change: so you said you guys are probably getting a little stretched with all of the activity in terms of business development and deployments going on are you looking to add more people and how should we think about operating costs on a quterly basis going forward

Jim Deller: Foranyonelookingtogetinsightintothisindustry,IencourageyoutolookupBilwulco,andparticularlytovisittheirwebsite.

Jim Deller: Are you looking to add more people, and how should we think about, you know, operating costs on a quarterly basis going forward? Yeah. So we, you know, you may have, I don't may have seen we currently have one, but I use an advertising as well. We currently have one open job posting out. There'll be a county viewing resumes or an engineer to both assist with work with our test furnace and installation work out in the field with their clients. That is the only current open position we have. Obviously, as more orders come in, we will monitor the load on that project management team and maybe even on the engineering team.

Jim Deller: We believe that having the World Go express their confidence in clear sign technology, allowing them to have first-hand experience of it and exposure to what we do, make this world position to be part of the solutions they offer and may provide for future clients.

Jim Deller: Theyworkwithadistinguishedlistofmajorrefiners,midstream,andchemicalcompanies.

Jim Deller: TheyarebasedinHouston,andpartofBoostedInternationalHeaters,orBIH,whichincludessistercompaniesinEurope,Malaysia,andSingapore. Bilwulco'sbusinessispredominantlythesupplyofheaterstorefineriesandpetrochemicalplant,orengineeringandmanagingprojectstoupgradethem,includingprojectsthatrequirethechangeoutoftheburners.

Speaker Change: yeah

Speaker Change: so weknow you may have

Speaker Change: i don't may have seen we currently have one i use an advertisms as well how we currenly have one open job posting count we accounting reviewing rejes or a

Jim Deller: As you would expect, we are engaged in other early stage conversations of this nature with them.

Jim Deller: As you would expect, we are engaged in other early stage conversations of this nature with them. If you participated in previous conference calls, we had mentioned that we were working with a major global chemical company to become approved vendor in their system. In fact, that was not a one-off, but one of these was a precursor to this order I have just described. Beyond this, we have a 20-burner order nearing completion. The final witness test was completed some time ago, and these burners are now finishing fabrication by our partner Ziko and a schedule to be shipped to our client in Los Angeles area of California late in September.

Jim Deller: If you participated in previous conference calls, we had mentioned that we were working with a major global chemical company to become approved vendor in their system. In fact, that was not a one-off, but one of these was a precursor to this order I have just described.

Speaker Change: an engineer to both assist with work with our test furnace and installation work out in the field of their clients

Jim Deller: WebelievethathavingBilwulcoexpresstheirconfidenceinClearsign'stechnology,allowingthemtohavefirst-handexperienceofit,andtheexposuretowhatwedo,makesuswell-positionedtobepartofthesolutionstheyoffer,andmayprovideforfutureclients.

Speaker Change: that is the the only current open position we have obvious ass more orders come in we will monitor the load on that project management team and maybe even on their engineering team

Jim Deller: Beyond this, we have a 20-burner order nearing completion. The final witness test was completed some time ago, and these burners are now finishing fabrication by our partner Ziko and a schedule to be shipped to our client in Los Angeles area of California late in September.

Jim Deller: Asyouwouldexpect,weareengagedinotherearlystageconversationsofthisnaturewiththem.

Jim Deller: Part of the reason also that we are focused on that engineering team is not only that we need to execute the orders that we have, but that I want to ensure that our senior engineers, who are also very effective salespeople, maintain the time in their schedule to focus on sales and those customer conversations to bring orders in and do not get consumed in auto execution. And engineering because of a low staffing level, and you appreciate we have to have people in house and trained up so that they're effectively able to do that work. So we do keep our workforce to a low level; we also have to balance that to make sure that we have the right people to do the job and not take a foot off the gas and focus on the outreach and the sales activities that are so important to us.

Speaker Change: part of the reason also that we are focused on that engineering team is not only that we need to execute the orders that we have

Jim Deller: Ifyouparticipatedinpreviousconferencecalls,wehadmentionedthatwewereworkingwithamajorglobalchemicalcompanytobecomeapprovedvendorintheirsystem. Infact,thatwasnotaone-off,butoneofthesewasaprecursortothisorderIhavejustdescribed.

Jim Deller: When up and running, there will be another two heaters, this time with eight and 12 burners, which will provide a very significant reference for us, especially given their location in the large refining hub in the Los Angeles area.

Jim Deller: When up and running, there will be another two heaters, this time with eight and 12 burners, which will provide a very significant reference for us, especially given their location in the large refining hub in the Los Angeles area. As previously noted, in accordance with the contract terms of this project, we will collect revenue upon shipment of the burns. So if I'm back to Brent's comments earlier, our revenue flow is based on the contractual milestones of our projects, so we anticipate that during the period in which we are establishing sales, our revenue flow may be lumpy. While we had significant sales news in the second quarter of 2024, shipping orders like this are what show up in our financial results.

Speaker Change: but that i want to ensure that our senior engineers or also very effective salespeople

Speaker Change: maintain the time in their schedule to focus on sales and those customer conversations to bring orders in and do not get consumed in order execution and engineering

Jim Deller: Beyondthis,wehavea20-burnerordernearingcompletion. Thefinalwitnesstestwascompletedsometimeago,andtheseburnersarenowfinishingfabricationbyourpartnerZECO,andarescheduledtobeshippedtoourclientinLosAngelesareaofCalifornialateinSeptember.

Jim Deller: As previously noted, in accordance with the contract terms of this project, we will collect revenue upon shipment of the burns.

Jim Deller: So if I'm back to Brent's comments earlier, our revenue flow is based on the contractual milestones of our projects, so we anticipate that during the period in which we are establishing sales, our revenue flow may be lumpy.

Speaker Change: because of a lowstaffing level you'd appreciate we haveto have people in house and trained up

Jim Deller: Whenupandrunning,therewillbeanothertwoheaters,thistimewith8and12burners,whichwillprovideaverysignificantreferenceforus,especiallygiventheirlocationinthelargerefininghubintheLosAngelesarea.

Speaker Change: so they'are effectivelyli to do that works so we do keep our workforce

Jim Deller: While we had significant sales news in the second quarter of 2024, shipping orders like this are what show up in our financial results.

Speaker Change: to a low level we also have to balance that to make sure that we have

Speaker Change: the right people to do the job and not take up for off their gas and focus on the our ach and thesales activities but are so important to us but think in terms of

Jim Deller: Aspreviouslynoted,inaccordancewiththecontracttermsofthisproject,wewillcollectrevenueuponshipmentoftheburners. So,referringbacktoBrent'scommentsearlier,ourrevenueflowisbasedonthecontractualmilestonesofourprojects,soweanticipatethatduringtheperiodinwhichweareestablishingsales,ourrevenueflowmaybelumpy. First,thefiringrateofthisburner,atcloseto90millionBTUsperhour,isalmosttwotimesthesizeofourpreviouslargestsingleburnersold.

Jim Deller: Regarding our crossover product line, meaning our horizontally fired burners for process heaters, on June 26th, we announced the sale of our largest burners a date. The sale is meaningful for a couple of reasons. First, the firing rate of this burner at close to 90 million BTUs per hour is almost two times the size of our previous largest single burner sold.

Jim Deller: Regarding our crossover product line, meaning our horizontally fired burners for process heaters, on June 26th, we announced the sale of our largest burners a date. The sale is meaningful for a couple of reasons. First, the firing rate of this burner at close to 90 million BTUs per hour is almost two times the size of our previous largest single burner sold. With this, we will have demonstrated products designed for our small, medium and large size ranges in the field.

Jim Deller: I think in terms of just looking at overhead costs, these positions are positions that we add as part of the growing business, so they're not, I wouldn't classify them as. A overhead style cost, they are very much a function of the increasing workflow. And just last one for me, you know, these demonstrations with Ziko that you are doing for clients. What kind of, you know, responses are you getting from that? And how is this open sort of, you know, maybe improve your sales cycle? So just any color on, you know, how you're leveraging these demonstrations to, you know, just get all the visibility of the question.

Speaker Change: you just looking at overhead costs these positions are positions that we add as part of the growing business so they're not i wouldn't classify them as

Speaker Change: a overheadstyle cost they are very much a

Jim Deller: With this, we will have demonstrated products designed for our small, medium and large size ranges in the field.

Speaker Change: a function of the increasing workflow

Speaker Change: i

Speaker Change: understood and just last one from me you know these demonstrations with zeico that you are doing for clients

Jim Deller: Secondly, this burner was sold in collaboration with another heater manufacturer, DevCo process heaters or DevCo into the midstream market, which will introduce our solutions to new customers and expand our sales channels.

Jim Deller: Secondly, this burner was sold in collaboration with another heater manufacturer, DevCo process heaters or DevCo into the midstream market, which will introduce our solutions to new customers and expand our sales channels. In that regard, we have received requests to provide quotes for additional projects from DevCo since the supply of this burner. The burner will be going into a heater in central Texas gas processing facility. We expect the burner to be delivered during the third quarter this year.

Speaker Change: what kind of responsible youre getting from that and how is this openings are know maybe improve your sales cycle just any color on you know you'releveraging these demonstrations to get visibility the customers

Jim Deller: In that regard, we have received requests to provide quotes for additional projects from DevCo since the supply of this burner. The burner will be going into a heater in central Texas gas processing facility. We expect the burner to be delivered during the third quarter this year.

Jim Deller: Yes, absolutely. I mean, the right, the whole purpose of doing these is to show what we can do to the industry, to get people to see it in person, and seeing as believing often. And I mean, this demonstration last week was a big demonstration. It was three burners firing in a test furnace. That is not normal. Most tests are done with just a single furnace, single burner. The, you know, I think it's important that the people that came in made this trip dedicated, especially for this purpose. They were not in town for the reasons they flown across the country to be here with us.

Jim Deller: Withthis,wewillhavedemonstratedproductsdesignedforoursmall,medium,andlargesizerangesinthefield.

Speaker Change: yes absolutely i mean the ratherthe whole purpose of doing these is

Jim Deller: Secondly,thisburnerwassoldincollaborationwithanotherheatermanufacturer,DevcoProcessHeaters,orDevco,intothemidstreammarket,whichwillintroduceoursolutionstonewcustomersandexpandoursaleschannels. Inthatregard,wehavereceivedrequeststoprovidequotesforadditionalprojectsfromDevcosincethesupplyofthisburner. TheburnerwillbegoingintoaheaterinCentralTexasGasProcessingFacility.

Speaker Change: to show what we can do to the industry to get people to see it in person and seeing is believing

Jim Deller: This product line continues to gain traction.

Jim Deller: This product line continues to gain traction. We believe that several of interest and customer requests for quotes indicate that there is a ready market for these burners. We have proposals that are progressing well and I hope to have further news from this progression in the near future.

Speaker Change: often when this demonstration last week was a big demonstration it was three burn is firing and a test furnace that is not more mosttest are done with just a single furnace single burner

Jim Deller: We believe that several of interest and customer requests for quotes indicate that there is a ready market for these burners.

Jim Deller: We have proposals that are progressing well and I hope to have further news from this progression in the near future.

Jim Deller: Weexpecttheburnertobedeliveredduringthethirdquarterthisyear.

Jim Deller: I think some of the more exciting things to me as I look further out to the future, are, right, the ongoing conversations with companies like Bilocco, the engineering company involved in the order we've just announced down in Texas, but also that we are getting drawn or invited to enter discussions at the feed stage of some very large projects.

Jim Deller: So, the feed stage is really the first financial and feasibility assessment that our customers go through when developing projects.

Jim Deller: These are typically going to be, you know, two years out, something in that timeframe, sometimes even more.

Jim Deller: But the important thing is that's how you load the pipeline.

Speaker Change: the know s important that are the people that came in made this trip dedicatedthat spepecially for this purpose they were not in town for the reasons they flown across the country

Jim Deller: And that's where the growth and the long term growth of the company comes from is by getting involved in these really big projects early.

Jim Deller: Understood.

Jim Deller: For me, the reason that's encouraging one is for that pipeline, but also it's an indication of the growing recognition and trust of Clearsign's technology out there in the market.

Jim Deller: We also have an update on our hydrogen burner technology. On the last call, we reported that this new technology had worked very well and had exceeded our expectations at this stage of the project. We also mentioned that we have shared some of those initial results on LinkedIn. While we still have some work to do before calling this product line complete, the hydrogen burner performance is sufficiently robust and comprehensive that we are able to offer this new product for sale and have already been doing so.

Jim Deller: We also have an update on our hydrogen burner technology. On the last call, we reported that this new technology had worked very well and had exceeded our expectations at this stage of the project. We also mentioned that we have shared some of those initial results on LinkedIn.

Amit Dayal: Thank you.

Jim Deller: There was a lot of engagement. We had a full day of active conversations, including the fine demonstration that pursued in bigger through a dinner that evening. The, the burners around well, we got to show the hydrogen burner. There was a lot of conversations around the hydrogen burner and the hydrogen burner performance. It also, we had a lot of clear sign staff amongst the customers, as you would expect, and a lot of one-on-one conversations. And we picked up and got engaged in a lot of conversations with our customers where they were asking how could we help them with their problems. And I think we've picked up a lot of maybe not immediate right opportunities, but I think a lot of initiatives that have a very good potential of turning into future opportunities from those conversations.

Speaker Change: to be here with us

Jim Deller: Thisproductlinecontinuestogaintraction. Webelievethislevelofinterestandcustomerrequestsforquotesindicatethatthereisareadymarketfortheseburners.

Speaker Change: there was a a lot of engagement we had a full day of active conversations including the fine demonstration that pursued in bigger through a dinner that

Jim Deller: While we still have some work to do before calling this product line complete, the hydrogen burner performance is sufficiently robust and comprehensive that we are able to offer this new product for sale and have already been doing so. One of the attributes of this new technology is that it will perform not only with 100% hydrogen as a fuel in the future, but also with the fuel gas is currently in use today.

Jim Deller: Wehaveproposalsthatareprogressingwell,andIhopetohavefurthernewsfromthisprogressioninthenearfuture.

Speaker Change: evening

Speaker Change: the other burners around well we got to show the hyro bernard there's a lot of conversation around the hydrogen berurner and the hygigen vertta performance

Jim Deller: Wealsohaveanupdateonourhydrogenburnertechnology. Onthelastcall,wereportedthatthisnewtechnologyhadworkedverywellandhadexceededourexpectationsatthisstageoftheproject. WealsomentionedthatwehavesharedsomeofthoseinitialresultsonLinkedIn. Whilewestillhavesomeworktodobeforecallingthisproductlinecomplete,thehydrogenburnerperformanceissufficientlyrobustandcomprehensivethatweareabletoofferittoourcustomers. Oneoftheattributesofthisnewtechnologyisthatitwillperformnotonlywith100%hydrogenasafuelinthefuture,butalsowiththefuelgasescurrentlyinusetoday. Becauseofthis,itisaproductthatourcustomerscaninstalltomeettheirNOxandotheroperationalrequirementstoday,andatthesametimehavethetechnologyinplaceandreadytooperateastheyintroduceadditionalhydrogentotheirfuelgasstream. Theycanalsoconvertto100%hydrogenwhenthatfuelsourcebecomesavailableinthefuture.

Jim Deller: One of the attributes of this new technology is that it will perform not only with 100% hydrogen as a fuel in the future, but also with the fuel gas is currently in use today. Because of this, it is a product that our customers can install to meet their moxam and other operational requirements today and at the same time have the technology in place and ready to operate as they introduce additional hydrogen to their fuel gas streams or convert to 100% hydrogen when that fuel source becomes available in the future.

Speaker Change: it also we had a lot of clear line staff amongst the customers as you would expect and a lot of one on more conversations

Speaker Change: and we picked up and got engaged in a lot of conversations from our customers where they were asking how it not how could we help them with their problems and i think we've picked a lot of

Jim Deller: Because of this, it is a product that our customers can install to meet their moxam and other operational requirements today and at the same time have the technology in place and ready to operate as they introduce additional hydrogen to their fuel gas streams or convert to 100% hydrogen when that fuel source becomes available in the future.

Speaker Change: maybe not immediate right opportunities but i think a lot of initiatives that have a very good potential of turning into

Jim Deller: And just having that dialogue and ongoing conversations with your customers always keeps you at the front of their mind. And so, while there's no specific opportunities we're bidding immediate as a result of that conversation, I'm very confident that we will get more engagement and opportunities as a result of that demonstration.

Speaker Change: future opportunities from those conversations and just

Jim Deller: Last week we hosted a process burner technology launch event at the facilities of ZECO. I have frequently emphasised that one of our priorities is to develop familiarity and confidence in our technology and its capabilities throughout our customers and other industry stakeholders. Obviously, if the key part of this is developing our installed base, we can also progress this by holding events such as this in which we demonstrated our technology operating in ZECO test furnaces.

Jim Deller: Last week we hosted a process burner technology launch event at the facilities of ZECO. I have frequently emphasised that one of our priorities is to develop familiarity and confidence in our technology and its capabilities throughout our customers and other industry stakeholders. Obviously, if the key part of this is developing our installed base, we can also progress this by holding events such as this in which we demonstrated our technology operating in ZECO test furnaces.

Speaker Change: i

Speaker Change: having that dialogue and ongoing conversations with your customers always keep you the front of their mind

Speaker Change: and as as well there's no specific opportunities we're bidding immediiaas a result of that congress i'm very confident that we will get more engagement and opportunities as a result of of that demonstration

Jim Deller: As you would expect, this was accompanied by a series of presentations and discussions about our technology, how it is installed and operated, etc, including an introduction and presentation of our new hydrogen burns, which provided an opportunity for our customers to literally see it in person for the first time. This demonstration was well attended, including by senior technical representatives of two global supermajor refineries and an equivalent global chemicals company, multiple global engineering, procurement and construction or EPC companies, multiple leading key to manufacturers and prominent engineering and consulting companies. The burner demonstration went seamlessly and from what we can tell with the presentations were well received with active engagement as a significant discussion throughout the day.

Jim Deller: As you would expect, this was accompanied by a series of presentations and discussions about our technology, how it is installed and operated, etc, including an introduction and presentation of our new hydrogen burns, which provided an opportunity for our customers to literally see it in person for the first time. This demonstration was well attended, including by senior technical representatives of two global supermajor refineries and an equivalent global chemicals company, multiple global engineering, procurement and construction or EPC companies, multiple leading key to manufacturers and prominent engineering and consulting companies.

Jim Deller: Lastweek,wehostedaprocessburnertechnologylauncheventatthefacilitiesofZECO. Ihavefrequentlyemphasisedthatoneofourprioritiesistodevelopfamiliarityandconfidenceinourtechnologyanditscapabilitiesthroughoutourcustomersandotherindustrystakeholders. Obviously,akeypartofthisisdevelopingourinstallbase,butwecanalsoprogressthisbyholdingeventssuchasthis,inwhichwedemonstratethatourtechnologyisoperatingintheZECOtestfurnaces. Asyouwouldexpect,thiswasaccompaniedbyaseriesofpresentationsanddiscussionsaboutourtechnology,howitisinstalledandoperated,etc.

Amit Dayal: Thank you, Jim. That's all I have.

Jim Deller: Thank you, man. Thank you.

Jim: thank you and jim that's on has

Jim Deller: I'm also pleased to note that there was significant interest in the new 100% hydrogen capable burner.

Jim Deller: The burner demonstration went seamlessly and from what we can tell with the presentations were well received with active engagement as a significant discussion throughout the day. I'm also pleased to note that there was significant interest in the new 100% hydrogen capable burner. What was also particularly pleasing was the continuing active dialogue and in particular, when our customers raising their needs and highlighting how our technology can help them solve their respective challenges and the value of these solutions for them, which is very helpful as we prioritize our product development initiatives.

Operator: Once again, should you have a question?

Jim: thank you men

Operator: You start off by the one on your telephone device.

Speaker Change: thank you once again should you have a question it's a star of off by the one on your telephone keyad

Operator: The operator, I'm going to go ahead and read. We've got a couple via email. So I read the first question. You've increasingly highlighted third parties like heater manufacturers in your recent press releases about sales. Can you talk about how many of these roads here we may have and how many of these may exist? That's a good question. I will answer the best I can.

Speaker Change: operator i'm going togo head and read we've got a couple be email somemar read the first question

Speaker Change: you increasingly highlighted third parties like heater manufacturers in your recent press releases about sales can you talk about how many of these roaches we may have and how many of these may exist

Jim Deller: Includinganintroductionandpresentationofournewhydrogenburners,whichprovidedanopportunityforourcustomerstoliterallyseeitinpersonforthefirsttime, werewellreceived,withactiveengagementandsignificantdiscussionthroughouttheday. I'malsopleasedtonotethattherewassignificantinterestinthenew100%hydrogen-capableBerner.

Speaker Change: that's a good question i will out

Jim Deller: So it's probably good to just step back a little for everyone to explain how the heater manufacturers and engineering companies fit. to the industry. So you think of a typical client, no, let's pick one, you know, Kip, well, no, name is Super Major. Let's see, Chevron has a heater, and if you want to buy a heater, they'll also go to a heater manufacturer, and a heater manufacturer would then buy burners to put into that heater and supply as part of the package. Or if they own that heater and require work on the heaters, the changes purpose or to meet new emissions requirements, they would typically go to one of those heater manufacturers or heater engineering companies and outsource the work to them.

Speaker Change: ll answeris sn and the best i can

Speaker Change: so mean it's probably good to

Speaker Change: to step back a little fat everyone explain how how the heat of manufacturer is the engine engineering companies fit

Speaker Change: into the industry so you think of a typical client no let's p you know c

Jim Deller: What was also particularly pleasing was the continuing active dialogue and in particular, when our customers raising their needs and highlighting how our technology can help them solve their respective challenges and the value of these solutions for them, which is very helpful as we prioritize our product development initiatives.

Speaker Change: no

Speaker Change: name suit agasures him chehervon has a heater and to buy he to go to a he to manufacturer and the heat manufactureuring with it by burthther to put into the heatater and suppliersas part of the package

Jim Deller: They have been some developments in clean air regulations in both Texas and Colorado that are relevant to both our process and boiler burner product lines.

Jim Deller: They have been some developments in clean air regulations in both Texas and Colorado that are relevant to both our process and boiler burner product lines.

Speaker Change: or if they own that heater and require work onthe heater the changes pur alor to meet your admissions requirements they would typically go to one of those heat manufacturers heater engineering companies

Jim Deller: Whatwasalsoparticularlypleasingwasthecontinuingactivedialogue,andinparticularwithourcustomersraisingtheirneedsandhighlightinghowourtechnologycanhelpthemsolvetheirrespectivechallengesandthevalueofthesesolutionsforthem,whichisveryhelpfulasweprioritizeourproductdevelopmentinitiatives.

Jim Deller: First, in Texas, there was a final certification by the United States EPA of Texas's reclassification of non-atama status for compliance with the 2015 National Ambient Air Quality Standards for ozone from moderate to serious, for both the greater Houston and greater Dallas regions.

Jim Deller: First, in Texas, there was a final certification by the United States EPA of Texas's reclassification of non-atama status for compliance with the 2015 National Ambient Air Quality Standards for ozone from moderate to serious, for both the greater Houston and greater Dallas regions. This triggers many actions by the Texas Commission on Environmental Quality or TCEQ. Most notably, a revision of the state implementation plans or sits for both regions and implementation of new, reasonable available control technology or ranked rules for emission sources.

Jim Deller: And that company would then have a very prominent role in redesigning the heater and selecting the equipment. Now, during the I remarked a few minutes ago, I talked to some extent about the Walco. The Walco is a really good example of a very prominent heater manufacturer. They supply heaters; they do the engineering, and they were very influential in the 26th further order that we announced in that role. So we, yes, I do talk more about them a lot because effectively they act as a sales channel for us. And as we sell products and new heater companies get involved in a clear side project, that's another heater company that's aware of what we do.

Speaker Change: and outsource the work to them and that company would then have a very prominent role in redesign the heater and select an equipment

Speaker Change: during the

Jim Deller: TherehavebeensomedevelopmentsincleanairregulationsinbothTexasandColoradothatarerelevanttobothourprocessandboiler-Bernerproductlines. First,inTexas,therewasafinalcertificationbytheUnitedStatesEPAofTexas'sreclassificationofnon-attainmentstatusforcompliancewiththe2015NationalAmbientAirQualityStandardsforOzonefromModeratetoSeriousforboththeGreaterHoustonandGreaterDallasregions. ThistriggersmanyactionsbytheTexasCommissiononEnvironmentalQuality,orTCEQ,mostnotablyarevisionoftheStateImplementationPlans,orSIPs,forbothregions,andimplementationofnewReasonableAvailableControlTechnology,orRACT,rulesforemissionsources.

Speaker Change: a remarks a few minutesago i taught to some extent about

Jim Deller: This triggers many actions by the Texas Commission on Environmental Quality or TCEQ. Most notably, a revision of the state implementation plans or sits for both regions and implementation of new, reasonable available control technology or ranked rules for emission sources.

Bowalker: bowalker the wal is a really good example of very prominence

Bowalker: he a manufacturer

Bowalker: they supply ages they do the engineering and they were

Bowalker: very influentialin the twenty sixth ferurnther order

Jim Deller: We believe these developments are good news for the long-term clear sign business.

Jim Deller: We believe these developments are good news for the long-term clear sign business. I will temper that development with a reminder that government and regulatory processes take time to be implemented, if at all, and changes to the state implementation plans and wrapped rules are not due until late next year into early 2026. Although, on the positive side, customers in the effective areas and the regulators issuing permits know that these changes are on the horizon, so we should expect not requirements for new permits and opportunities to be pushed down ahead of the new regulations being formalized.

Speaker Change: that would that we announced in that role

Jim Deller: I will temper that development with a reminder that government and regulatory processes take time to be implemented, if at all, and changes to the state implementation plans and wrapped rules are not due until late next year into early 2026. Although, on the positive side, customers in the effective areas and the regulators issuing permits know that these changes are on the horizon, so we should expect not requirements for new permits and opportunities to be pushed down ahead of the new regulations being formalized.

Speaker Change: so we yes i do talk more about them a lot because s effective act as a sale channel for us and as we sell products and new heater companies get involved in a clear project that's another

Jim Deller: And then can use a burners as part of their solution that they are honestly trying to sell to their customers to get business for themselves. So I need to go back and look through details, but we're probably at a handful, half a dozen heater companies that we've worked with today. That might be all I wanted to, somewhere in that order; that's the easy part of the question.

Speaker Change: he the company that's aware of what we do and and then can use abburn as part of their solution that they are honstly trying to sell to their customs to get

Speaker Change: business for themselves

Jim Deller: Webelievethesedevelopmentsaregoodnewsforthelong-termclearsignbusiness. Iwilltemperthatdevelopmentwithareminderthatgovernmentandregulatoryprocessestaketimetobeimplemented,ifatall,andthechangestotheStateImplementationPlansandRACTrulesarenotdueuntillatenextyearintoearly2026. Althoughonthepositiveside,customersintheeffectiveareasandtheregulatorsissuingpermitsknowthatthesechangesareonthehorizon,soweshouldexpectnot-for-requirementsfornewpermitsandopportunitiesbepusheddownaheadofthenewregulationsbeingformalized.

Speaker Change: so i need to go back and look through details but we're probably at a handful half a dozen heed the companies that we've work with to date ithink that might be up i wanted do be all sumwhere in that order

Jim Deller: Secondly, in Colorado, following the recent reclassification of federal ozone on attainment zones severity for Denver and the North Front Range, Colorado Governor Polis sent a letter to the executive director of the Colorado Department of Public Health and Environment dated March 16, 2024, directing action for ozone and not reduction. This letter directs these agencies to reduce NOx in the affected regions by 30% by the end of 2025 and by 50% by the end of 2030.

Jim Deller: Secondly, in Colorado, following the recent reclassification of federal ozone on attainment zones severity for Denver and the North Front Range, Colorado Governor Polis sent a letter to the executive director of the Colorado Department of Public Health and Environment dated March 16, 2024, directing action for ozone and not reduction. This letter directs these agencies to reduce NOx in the affected regions by 30% by the end of 2025 and by 50% by the end of 2030.

Jim Deller: I think the questions for how many are out there is a lot more open-ended. There's probably 10 to 15 heater and heater engineering companies that are frequently engaged in the US market. But depending on how big the companies you include are and where they are, the number will actually be much more than that. And there are a lot of smaller, bespoke engineering and heater companies as well.

Speaker Change: that's the easy part of the question i think the the questions to how many are how thereis

Speaker Change: a lot more open-ended that there's probably

Speaker Change: ten to fifteen heater and hether engineering companies that are but frequently engaged in the us market but depending on how big the companies you include are and where they are the

Jim Deller: Secondly,inColorado,followingtherecentreclassificationoffederalozonenon-attainmentzoneseverityforDenverandtheNorthFrontRange,ColoradoGovernorPolissentalettertotheExecutiveDirectoroftheColoradoDepartmentofPublicHealthandEnvironmentdatedMarch16,2024,directingactionforozoneandNOxreductions. ThisletterdirectstheseagenciestoreduceNOxintheaffectedregionsby30percentbytheendof2025andby50percentbytheendof2030.

Speaker Change: the number will actually be be much more than and there are a lot of smaller

Jim Deller: Following this development about two weeks ago, we met in person with senior staff of both the Department of Public Health and Environment and the Energy and Carbon Management Commission to introduce Clearsign technologies to understand their planning process and to identify how we could support their NOx reduction initiatives.

Jim Deller: Following this development about two weeks ago, we met in person with senior staff of both the Department of Public Health and Environment and the Energy and Carbon Management Commission to introduce Clearsign technologies to understand their planning process and to identify how we could support their NOx reduction initiatives.

Jim Deller: So that last part is that would be almost difficult for the number two.

Speaker Change: i bespoke engineeruring he companies who wasatched that last part is

Speaker Change: we only difficult butanommic

Jim Deller: The second question. In your press release today, you stated an event in California next week to unveil independent data. Can you give more color?

Speaker Change: the second question in your press release today you stated an event in california next week to uninveil independent data can you get more color

Jim Deller: Now turning to boiler burners.

Jim Deller: Now turning to boiler burners. The commissioning of our large 1200 horsepower, 2.5 ppm, NOx Burner, branded Isero NOx for a recycling plant in California is underway. This burners installed and as you would expect with this being the first burner of this scale, there are some details to work through.

Jim Deller: Well, first of all, thank you for reading the press release. So this, this project in some ways is similar to the demonstration ran at Zego last week with some very significant differences. First of all, fundamentally for us, it's focused on our boiler burner technology rather than the process burner. We have a or been part of an ongoing burner comparison study that's been run by the California GET program to look at technologies to reduce NOx emissions and to increase burner efficiency. Essentially, increasing efficiency is decarbonisation; it's the savior of fuel, and that means less carbon. So that is really the focus of this program is how can you decarbonise the boilers and achieve and maintain these except low.

Jim Deller: The commissioning of our large 1200 horsepower, 2.5 ppm, NOx Burner, branded Isero NOx for a recycling plant in California is underway. This burners installed and as you would expect with this being the first burner of this scale, there are some details to work through. However we believe we are close to having these worked out and look forward to having this plant in full operation and the formal source test completed.

Jim Deller: However we believe we are close to having these worked out and look forward to having this plant in full operation and the formal source test completed. When in service we believe that this will be a prominent development in the industry and a great reference installation for us.

Speaker Change: physical thank you reading the press release so this

Jim Deller: Followingthisdevelopment,abouttwoweeksago,wemetinpersonwiththeseniorstaffofboththeDepartmentofPublicHealthandEnvironmentandtheEnergyandCarbonManagementCommissiontointroduceclearsigntechnologies,tounderstandtheirplanningprocess,andtoidentifyhowwecouldsupporttheirNOxreductioninitiatives.

Speaker Change: this project in some ways to similar to the demonstrationary brand at zeo last week with some very significant this is for first fundament pro us 's focused on our boiler burn technology rather than the process burnit

Speaker Change: we have a orbean part of a ongoing

Jim Deller: Nowturningtoboilerburners.

Jim Deller: When in service we believe that this will be a prominent development in the industry and a great reference installation for us.

Jim Deller: Thecommissioningofourlarge1,200horsepower,2.5ppmNOxburner,brandedIZERONOx,forarecyclingplantinCaliforniaisunderway. Thisburnerisinstalled,andasyouwouldexpectwiththisbeingthefirstburnerofthisscale,therearesomedetailstoworkthrough. However,webelieveweareclosetohavingtheseworkedoutandlookforwardtohavingthisplantinfulloperationandtheformalsourcetestcompleted. Wheninservice,webelievethatthiswillbeaprominentdevelopmentintheindustryandagreatreferenceinstallationforus.

Speaker Change: i

Speaker Change: ba comparison study

Speaker Change: that's been run by the california get program to look at by technologies to reduce noxemissions and to do and to increase

Jim Deller: We also have the first article of our new positively fired burner design being manufactured. If this burn performs as we expected to and as shown in our computer modeling it will provide extremely low NOx in short length heaters and boilers.

Jim Deller: We also have the first article of our new positively fired burner design being manufactured. If this burn performs as we expected to and as shown in our computer modeling it will provide extremely low NOx in short length heaters and boilers. Bear in mind our current boiler burner technology is optimized for fire tube boilers in which the space for the flame is typically long and narrow.

Speaker Change: burn efficiency essentially increasing efficiency as decarbonization is the savior of fuel and that means less carbon are there that is really the focus of its programs how can you decarbonize the boilers and achieve and maintain these exception low

Jim Deller: Bear in mind our current boiler burner technology is optimized for fire tube boilers in which the space for the flame is typically long and narrow.

Jim Deller: The program was run by Get and funded by them. The engineers were paid by Get. It was hosted at a partner California boiler site. The data is owned by Get. They will be releasing a report. We believe sometime in early September, and please follow us on LinkedIn. We will put announcements of that out. We will host that report out on our website. Also, the demonstration next week is the Clearsign technology operating in the boiler. It's one of the concluding activities of this Get program. They have managed this. They have been the ones primarily distributed in the invitee list and maintain the list.

Speaker Change: loch numbers the program was run by get and funded by them the engineers were paid

Jim Deller: Wealsohavethefirstarticleofournewhorizontallyfiredburnerdesignbeingmanufactured. Ifthisburnerperformsasweexpectitto,andasshowninourcomputermodeling,itwillprovideextremelylowNOxinshortlengthheatersandboilers. Bearinmind,ourcurrentboilerburnertechnologyisoptimizedforfiretubeboilersinwhichthespacefortheflameistypicallylongandnarrow.

Jim Deller: The first burner of this new design is for installation in a hot oil heater in Texas.

Jim Deller: The first burner of this new design is for installation in a hot oil heater in Texas. The reason that I've included this in this section is that we anticipate that the biggest market for this new burner will be water tube boilers, a segment of the market that we have not been able to effectively pursue at this point. Our expectation is that we will be able to install this burner in the fourth quarter of this year, although this may be contingent on the coordination of the installation with the client's operations schedule.

Speaker Change: by yet it was hosted that other partner of california boiler' site

Jim Deller: The reason that I've included this in this section is that we anticipate that the biggest market for this new burner will be water tube boilers, a segment of the market that we have not been able to effectively pursue at this point. Our expectation is that we will be able to install this burner in the fourth quarter of this year, although this may be contingent on the coordination of the installation with the client's operations schedule. We are pushing to arrange this installation to be as early as we can because we already have several opportunities waiting for this new design to be demonstrated in service.

Speaker Change #100: theright the data byget they will be releasing up for a report we believe sometime in the early september plete follows on linkedton we will put announcements of that out we will host that but the report out on our website

Speaker Change #100: also the demonstration next week is the clear sign technology operating in a boiler it is one of the concluding activities of this

Jim Deller: ThefirstburnerofthisnewdesignisforinstallationinahotoilheaterinTexas. ThereasonthatI'veincludedthisinthissectionisthatweanticipatethatthebiggestmarketforthisnewburnerwillbewatertubeboilers,asegmentofthemarketthatwehavenotbeenabletoeffectivelypursueatthispoint.

Speaker Change #101: get program they have managed this they have been the ones primarily district distributed the ad bit list and maintain the list we have i think last count today we had up to eighty tendees regisedteit for that

Jim Deller: We are pushing to arrange this installation to be as early as we can because we already have several opportunities waiting for this new design to be demonstrated in service. Both in terms of repeat orders from existing customers and from potential new clients, uncovering both hot oil midstream type processes applications and water tube boilers.

Jim Deller: We have, I think, last count today, we had up to 80 attendees registered for that. Some of them were the senior global refinery engineers that came into our eco-demonstration. Some of those were actually going out to California because they're also interested in the boiler better technology. We got to talk about that at the same time.

Jim Deller: Both in terms of repeat orders from existing customers and from potential new clients, uncovering both hot oil midstream type processes applications and water tube boilers.

Speaker Change #102: some of them were the rsenior engine

Jim Deller: Ourexpectationisthatwewillbeabletoinstallthisburnerinthefourthquarterthisyear,althoughthismaybecontingentonthecoordinationoftheinstallationwiththeclient'soperationschedule.

Speaker Change #102: global refinery engineers that came into zeco demonstration some of the who's readyactually going out to california because they're also interested in the boiler bbed technologlogy so we got to

Jim Deller: Other upcoming events related to our boiler burner line include an industry demonstration that will be held in Santa Anna California next week.

Jim Deller: Other upcoming events related to our boiler burner line include an industry demonstration that will be held in Santa Anna California next week. The investor owned California utility companies fund energy efficiency research on available and near future products and technologies. One of these programs is called the statewide gas emerging technologies or get program, which is administered by a Southern California gas company through a contract awarded to ICF, a global consulting and digital services company.

Jim Deller: This is a big deal, and especially the results. I don't have the exact data to share today. But having a burner that A to D carbonization is shown to be more efficient and has this world leading NOx level for a burner is a really big deal in my opinion.

Jim Deller: Wearepushingtoarrangeforthisinstallationtobeasearlyaswecanbecausewealreadyhaveseveralopportunitieswaitingforthisnewdesigntobedemonstratedinservice,bothintermsofrepeatordersfromexistingcustomersandfrompotentialnewclients,andcoveringbothhotoilmidstreamtypeprocessheaterapplicationsandwatertubeboilers.

Speaker Change #102: talk about that

Speaker Change #102: at the same time but the

Jim Deller: The investor owned California utility companies fund energy efficiency research on available and near future products and technologies. One of these programs is called the statewide gas emerging technologies or get program, which is administered by a Southern California gas company through a contract awarded to ICF, a global consulting and digital services company. The get programs objective is to source and screen technologies, gather necessary technical information and data on potential efficiency gains to identify key market barriers to the adoption of these technologies and develop strategies to overcome such barriers.

Speaker Change #103: this is a big deal and especially the results i don't have the exact data the share today

Speaker Change #103: but having a burn er that a decarbonization is shownbe more efficient and has this world leadingknockx level for a berurner is a really big deal in my opinion

Amit Dayal: Just to clarify, the hot oil heater opportunity is tied to the horizontal process burner offering that you are developing?

Jim Deller: OtherupcomingeventsrelatedtoourboilerburnerlineincludeanindustrydemonstrationthatwillbeheldinSantaAna,Californianextweek.

Operator: Thank you. There are no further questions at this time.

Jim Deller: I would like to turn the conference back over to Clearsign's ECEO, Mr. Jim Deller, for any closing remarks. Well, thank you, operator. And thank you, everyone, for your interest. I'm taking the time to participate today.

Speaker Change #104: thank you there are no further questions at this time i would like to turn the conference back over to clear scis e ceo mr jand dollar for any closing remarks

Jim Deller: The get programs objective is to source and screen technologies, gather necessary technical information and data on potential efficiency gains to identify key market barriers to the adoption of these technologies and develop strategies to overcome such barriers.

Jim Deller: Theinvestor-ownedCaliforniautilitycompaniesfundenergyefficiencyresearchonavailableandnear-futureproductsandtechnologies. OneoftheseprogramsiscalledtheStatewideGasEmergingTechnologies,orGET,program,whichisadministeredbyaSouthernCaliforniagascompanythroughacontractawardedtoICF,aglobalconsultinganddigitalservicescompany. TheGETprogram'sobjectiveistosourceandscreentechnologies,gathernecessarytechnicalinformationanddataonpotentialefficiencygains,toidentifykeymarketbarrierstotheadoptionofthesetechnologies,anddevelopstrategiestoovercomesuchbarriers.

Jim Deller: That's correct.

Jim Deller: You know, we've used several names, and we're actually using that as more of a generic name.

Jim Deller: There are a number of different processes, but it's the, there's a number of horizontally fired heaters in the process industries and gas processing industries. Oil heaters, glycol heaters, there's a number of different processes. We've used the term hot oil heaters generally to describe those horizontally fired, single burner, forced draft burner applications.

Amit Dayal: Okay, got it.

Amit Dayal: So you said you guys are probably getting a little stretched with all of the activity, you know, in terms of business development and deployments going on.

Amit Dayal: Are you looking to add more people and how should we think about, you know, operating costs on a quarterly basis going forward?

Jim Deller: Yep.

Speaker Change #105: thank you operator and thank you everyone for your interest and taking the time to participate the today move forward to updating your regarding our developments and speaking with you all onour next call

Jim Deller: So we, no, you may have, I don't may have seen, we currently have one, I use this as an advertisement as well.

Jim Deller: We currently have one open job posting out. We are currently reviewing resumes for a, an engineer to both assist with work for that test furnace and installation work out in the field with their clients.

Jim Deller: We're forward to updating you regarding our developments and speaking with you all on our next call. This concludes today's call. Thank you for participating. You may all disconnect.

Jim Deller: That is the, the only current open position we have.

Jim Deller: Obviously, as more orders come in, we will monitor the load on that project management team and maybe even on that engineering team.

Jim Deller: Part of the reason also that we are focused on that engineering team is not only that we need to execute the orders that we have.

Jim Deller: But that I want to ensure that our senior engineers who are also very effective salespeople maintain the time in their schedule to focus on sales and those customer conversations to bring orders in and do not get consumed in order execution and engineering because of a low staffing level.

Jim Deller: And you'd appreciate we have to have people in house and trained up so that they're effectively able to do that work.

Jim Deller: Clearsign is pleased to have been selected to participate in this important program. We have completed a study that formally tested and quantified operating efficiency improvements that will basically translate into fuel savings of the Clearsign Court boiler burner technology compared to a typical industry standard ultra low-knocks burner. The test method was developed by independent third-party engineers and the testing was also overseen by independent third-party engineers, or contracted directly by the get program.

Jim Deller: Clearsign is pleased to have been selected to participate in this important program. We have completed a study that formally tested and quantified operating efficiency improvements that will basically translate into fuel savings of the Clearsign Court boiler burner technology compared to a typical industry standard ultra low-knocks burner. The test method was developed by independent third-party engineers and the testing was also overseen by independent third-party engineers, or contracted directly by the get program.

Jim Deller: So we do keep our workforce to a low level.

Jim Deller: We also have to balance that to make sure that we have the right people to do the job and not take a foot off the gas and focus on the outreach and the sales activities that are so important to us.

Jim Deller: I think in terms of, you know, just looking at overhead costs, these positions are positions that we add as part of the growing business.

Operator: This concludes today's call.

Jim Deller: So they're not, I wouldn't classify them as, a overhead style cost, they are very much a function of the increasing workflow.

Amit Dayal: Understood.

Amit Dayal: And just last one for me, you know, these demonstrations with Zco that you're doing, for clients, what kind of, you know, responses are you getting from that?

Speaker Change #106: concludes today's call thank you for participating you may all disconnect

Amit Dayal: And how is this helping, sort of, you know, maybe improve your sales cycle, just any color on, you know, how you're leveraging these demonstrations to, you know, just get more visibility with customers?

Jim Deller: Yes, absolutely.

Jim Deller: I mean, the whole purpose of doing these is to show what we can do to, the industry to get people to see it in person and seeing is believing.

Jim Deller: Often, I mean, this demonstration last week was a big demonstration.

Jim Deller: It was three burners firing in a test furnace.

Jim Deller: That is not normal.

Speaker Change #106: i

Jim Deller: Most tests are done with just a single furnace, single burner.

Jim Deller: The, you know, I think it's important that the people that came in made this trip dedicated, especially for this purpose.

Jim Deller: They were not in town for the reasons they've flown across the country to be here with us.

Jim Deller: There was a lot of engagement.

Jim Deller: We had a full day of active conversations, including the firing demonstration that pursued in vigor through a dinner that evening. The burners ran well. We got to show the hydrogen burner. There was a lot of conversation, around the hydrogen burner and the hydrogen burner performance.

Jim Deller: It also, we had a lot of clear sign staff amongst the customers, as you would expect, and a lot of one-on-one conversations.

Jim Deller: And we picked up and got engaged in a lot of conversations with our customers where they were, asking how could we help them with their problems. And I think we've picked up a lot of maybe not immediate opportunities, but I think a lot of initiatives that have a very good potential of turning into future opportunities from those conversations. And just having that dialogue and ongoing conversations with your customers always keeps you at the front of their mind.

Jim Deller: And so while there's no specific opportunities we're bidding immediately as a result of that conference, I am very confident that we will get more engagement and opportunities as a result of that demonstration.

Amit Dayal: Thank you, Jim.

Jim Deller: That's all I have.

Jim Deller: Thank you, Amit.

Operator: Thank you.

Operator: Once again, should you have a question, please press star four, beta one on your telephone keypad.

Jim Deller: Hey, operator, I'm going to go ahead and read.

Jim Deller: We've got a couple via email, so I'm going to read the first question.

Jim Deller: You've increasingly highlighted third parties like heater manufacturers in your recent press releases about sales.

Jim Deller: Clearsignispleasedtohavebeenselectedtoparticipateinthisimportantprogram.

Jim Deller: Can you talk about how many of these relationships we may have and how many of these may exist?

Jim Deller: That's a good question.

Jim Deller: I'll answer the best I can.

Jim Deller: We are not able to give results today as the work and data is owned by the get program and they have not released their report at this time.

Jim Deller: We are not able to give results today as the work and data is owned by the get program and they have not released their report at this time. However, I can say that the results were pleasing, both in terms of efficiency and the knocks emissions demonstrated. We plan to provide access to this report on our website when available and also provide notification that it is issued and a link on LinkedIn. The study results and a physical demonstration of the burner in operation, what we presented, at the industry demonstration next week. We are expecting approximately 70 attendees, including many from the various California air regulators, California refineries, both super major and local, national energy and infrastructure companies, engineering companies and national boiler operators.

Jim Deller: So it's probably good to just step back a, little bit, everyone, and explain how the heater manufacturers, the engineering companies fit into the business model that you're talking about, to change its purpose or to meet your emissions requirements, they would typically go to one of those heater manufacturers or heater engineering companies and outsource the work to them.

Jim Deller: And that company would then have a very prominent role, in redesigning the heater and selecting the equipment.

Jim Deller: WehavecompletedastudythatformallytestedandquantifiedoperatingefficiencyimprovementsthatwillbasicallytranslateintofuelsavingsoftheClearsigncoreboilerburnertechnologycomparedtoatypicalindustrystandardultra-lowNOxburner. Thetestmethodwasdevelopedbyindependentthird-partyengineers,andthetestingwasalsooverseenbyindependentthird-partyengineers,allcontracteddirectlybytheGETprogram. WearenotabletogiveresultstodayastheworkanddataisownedbytheGETprogram,andtheyhavenotreleasedtheirreportatthistime.

Jim Deller: You know, during the remarks a few minutes ago, I talked to some extent about Boelco.

Jim Deller: Boelco is a really good example, of a very prominent heater manufacturer.

Jim Deller: They supply heaters, they do the engineering, and they were very influential in the 26th Burner Order that we announced in that role.

Jim Deller: So we, yes, I do talk about them a lot, because effectively they act as a sales channel for us.

Jim Deller: And as we sell products and new heater companies, get involved in a clear site project, that's another heater company that's aware of what we do and then can use our burners as part of their solution that they are constantly trying to sell to their customers to get business for themselves.

Jim Deller: So I need to go back and look through details, but we're probably at a handful, half a dozen heater companies that we've worked with to date and that might be off by one or two, but somewhere in that order.

Jim Deller: That's the easy part of the question.

Jim Deller: However, I can say that the results were pleasing, both in terms of efficiency and the knocks emissions demonstrated.

Jim Deller: I think the question as to how many are out there, is a lot more open-ended.

Jim Deller: There's probably 10 to 15 heater, and heater engineering companies that are frequently engaged in the US market.

Jim Deller: But depending on how big the companies you include are, and where they are, the number will actually be much more than that.

Jim Deller: And there are a lot of smaller bespoke engineering, and heater companies as well.

Jim Deller: So that last part is, to be honest, difficult to put a number to.

Jim Deller: The second question, in your press release today, you stated an event in California next week to unveil independent data.

Jim Deller: Can you give more color?

Jim Deller: We plan to provide access to this report on our website when available and also provide notification that it is issued and a link on LinkedIn.

Jim Deller: Well, first of all, thank you for reading the press release.

Jim Deller: So this project, in some ways, is similar to the demonstration we ran at Zco last week with some very significant differences. First of all, fundamentally for us, it's focused on our boiler burner technology rather than the process burner.

Jim Deller: We have been part of a ongoing project, and an ongoing burner comparison study that's been run by the California GET program to look at technologies to reduce NOx emissions and to increase burner efficiency.

Jim Deller: Essentially, increasing efficiency is decarbonization. It's the savior of fuel, and that means less carbon.

Jim Deller: So that is really the focus of this program, is how can you decarbonize the boilers and achieve and maintain these exceptionally low, Knox numbers. The program was run by GET and funded by them.

Jim Deller: The engineers were paid by GET. It was hosted at a partner California boiler site.

Jim Deller: The data is owned by GET.

Jim Deller: They will be releasing a report, we believe, sometime in early September.

Jim Deller: And please follow us on LinkedIn.

Jim Deller: We will put announcements of that out.

Jim Deller: The study results and a physical demonstration of the burner in operation, what we presented, at the industry demonstration next week.

Jim Deller: We will host that, put that report out on our website.

Jim Deller: Also, the demonstration next week is the Clearsign Technology operating in a boiler. It's one of the concluding activities of this GET program.

Jim Deller: They have managed this.

Jim Deller: They have been the ones primarily distributing the invitee list and maintaining the list. We have, I think last count today, we had up to 80 attendees registered for that. Some of them were the senior global refinery engineers that came into our Zico demonstration.

Jim Deller: Some of those are actually going out to California because they're also interested in the boiler burner technology, so we got to talk about that at the same time.

Jim Deller: But this is a big deal, and especially the results.

Jim Deller: I don't have the exact data to share today, but having a burner that AZ decarbonization is shown to be more efficient and has this world-leading Knox level for a burner is a really big deal, in my opinion.

Jim Deller: Thank you.

Jim Deller: We are expecting approximately 70 attendees, including many from the various California air regulators, California refineries, both super major and local, national energy and infrastructure companies, engineering companies and national boiler operators.

Operator: There are no further questions at this time.

Operator: I would like to turn the conference back over to Clearsign's CEO, Mr. Tim Deller, for any closing remarks.

Jim Deller: Well, thank you, operator.

Jim Deller: However,Icansaythattheresultswerepleasing,bothintermsofefficiencyandtheNOxemissionsdemonstrated, bothsupermajorandlocal,nationalenergyandinfrastructurecompanies,engineeringcompanies,andnationalboileroperators.

Jim Deller: And thank you, everyone, for your interest in taking the time to participate today.

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

Jim Deller: One final project update on our boiler burner line. In February this year, we announced the order, which is for the first of four burners to a California plant. That first burner is in production, but the client schedule has moved out a little and that burner is now scheduled to ship at the end of the year and has been stored by the end of the first quarter of 2025.

Jim Deller: One final project update on our boiler burner line. In February this year, we announced the order, which is for the first of four burners to a California plant.

Jim Deller: That first burner is in production, but the client schedule has moved out a little and that burner is now scheduled to ship at the end of the year and has been stored by the end of the first quarter of 2025. As usual, we will keep you informed as that project progresses and as we get days for the remaining three burners for that project.

Jim Deller: As usual, we will keep you informed as that project progresses and as we get days for the remaining three burners for that project.

Jim Deller: Onefinalprojectupdateonourboilerburnerline.

Jim Deller: And finally, regarding boiler burners, on the last call I mentioned that our China certification project has seen some delays or some progress have been made.

Jim Deller: And finally, regarding boiler burners, on the last call I mentioned that our China certification project has seen some delays or some progress have been made.

Jim Deller: InFebruarythisyear,weannouncedanorder,whichisthefirstoffourburnerstoaCaliforniaclient. Thatfirstburnerisinproduction,buttheclientschedulehasmovedoutalittle,andthatburnerisnowscheduledtoshipattheendoftheyearandtobeinstalledbytheendofthefirstquarterof2025.

Jim Deller: I did not have any significant updates regarding the project schedule at this time.

Jim Deller: I did not have any significant updates regarding the project schedule at this time.

Jim Deller: In closing, it is worth hard to look at what we are doing at a practical level and also at a strategic or high level.

Jim Deller: In closing, it is worth hard to look at what we are doing at a practical level and also at a strategic or high level. The updates I have given here are mostly tactical, individual project updates, customer demonstrations, etc. At a strategic level, there are areas of focus that are consistent and is useful to articulate these to provide a framework to understand what we are doing and to gauge progress.

Jim Deller: Asusual,wewillkeepyouinformedasthatprojectprogressesandaswegetdatesfortheremainingthreeburnersforthatproject.

Jim Deller: The updates I have given here are mostly tactical, individual project updates, customer demonstrations, etc.

Jim Deller: Andfinally,regardingboilerburners,onthelastcallImentionedthatourChinacertificationprojecthasseensomedelaysorsomeprogresshasbeenmade. Ididnothaveanysignificantupdatesregardingtheprojectscheduleatthistime.

Jim Deller: At a strategic level, there are areas of focus that are consistent and is useful to articulate these to provide a framework to understand what we are doing and to gauge progress.

Jim Deller: At top line objectives is to increase sales and profitability both in the near term but also increasingly in the future.

Jim Deller: At top line objectives is to increase sales and profitability both in the near term but also increasingly in the future. To do this, we need to continue developing products that provide values to our customers and because our technology is new, we need to develop our reputation and familiarity in the market. In working towards the subjective, we have discussed significant new orders, especially the process burner order for a chemical company in Texas, likely in the most significant United States market for us in the midterm and also the engagement of a leading heating manufacturer and engineering firm who is actually a direct customer for this project and is now getting first hand experience of our products and working with clear Under this general, seeding the industry objective, we also have carried out a large-scale product demonstration in the ZCOP facility for our process burners last week, and we'll be doing another demonstration for our fine-tube boiler product line in the California next week.

Jim Deller: Inclosing,itisworthwhiletolookatwhatwearedoingatatacticallevelandalsoatastrategicorhighlevel. TheupdatesIhavegivenherearemostlytactical,individualproductupdates,customerdemonstrations,etcetera.

Jim Deller: To do this, we need to continue developing products that provide values to our customers and because our technology is new, we need to develop our reputation and familiarity in the market.

Jim Deller: Atastrategiclevel,thereareareasoffocusthatareconsistent,anditisusefultoarticulatethesetoprovideaframeworktounderstandwhatwearedoingandtogaugeprogress.

Jim Deller: In working towards the subjective, we have discussed significant new orders, especially the process burner order for a chemical company in Texas, likely in the most significant United States market for us in the midterm and also the engagement of a leading heating manufacturer and engineering firm who is actually a direct customer for this project and is now getting first hand experience of our products and working with clear Under this general, seeding the industry objective, we also have carried out a large-scale product demonstration in the ZCOP facility for our process burners last week, and we'll be doing another demonstration for our fine-tube boiler product line in the California next week.

Jim Deller: Ourtop-lineobjectiveistoincreasesalesandprofitability,bothinthenearterm,butalsoincreasinglyinthefuture.

Jim Deller: Todothis,weneedtocontinuedevelopingproductsthatprovidevaluetoourcustomers,andbecauseourtechnologyisnew,weneedtodevelopourreputationandfamiliarityinthemarket.

Jim Deller: Inworkingtowardsthisobjective,wehavediscussedsignificantneworders,especiallytheprocessburnerorderforachemicalcompanyinTexas,likelyinthemostsignificantUnitedStatesmarketforusinthemidterm,andalsotheengagementofaleadingheatingmanufacturerandengineeringfirm,whoisactuallyourdirectcustomerforthisprojectandisnowgettingfirst-handexperienceofourproductsandworkingwithClearSign.

Jim Deller: We're also nurturing our relationship with current energy as evidence by press releases from both us and them regarding our installations there, and we will continue to publish news and journal articles related to our installations with current energy throughout the remainder of this year.

Jim Deller: We're also nurturing our relationship with current energy as evidence by press releases from both us and them regarding our installations there, and we will continue to publish news and journal articles related to our installations with current energy throughout the remainder of this year. In support of our continued business growth, we are investing time and energy and bringing new products to market and developing new markets themselves. The new products that are most advanced are our new process burner, capable of burning fuel gas ranging from the fuel gases in use today up to 100% hydrogen while maintaining the same market leading mox levels, enabling the burners to be installed now, and our customers to be ready for new higher hydrogen fuels are those become available.

Jim Deller: Underthisgeneralseedingtheindustryobjective,wealsohavecarriedoutalarge-scaleproductdemonstrationintheZECOfacilityforourprocessburnerslastweek,andwewillbedoinganotherdemonstrationforour5GboilerproductlineinCalifornianextweek.

Jim Deller: In support of our continued business growth, we are investing time and energy and bringing new products to market and developing new markets themselves. The new products that are most advanced are our new process burner, capable of burning fuel gas ranging from the fuel gases in use today up to 100% hydrogen while maintaining the same market leading mox levels, enabling the burners to be installed now, and our customers to be ready for new higher hydrogen fuels are those become available.

Jim Deller: WearealsonurturingourrelationshipwithKernEnergy,asevidencedbypressreleasesfrombothusandthemregardingourinstallationsthere,andwewillcontinuetopublishnewsandjournalarticlesrelatedtoourinstallationswithKernEnergythroughouttheremainderofthisyear.

Jim Deller: Insupportofourcontinuedbusinessgrowth,weareinvestingtimeandenergyinbringingnewproductstomarketanddevelopingnewmarketsthemselves. Thenewproductsthataremostadvancedareournewprocessburner,capableofburningfuelgasrangingfromthefuelgasesinusetoday,upto100%hydrogen,whilemaintainingthesamemarket-leadingMOXlevels,enablingtheburnerstobeinstallednowandourcustomerstobereadyfornewhigherhydrogenfuelsasthosebecomeavailable.

Jim Deller: We are seeing a lot of interest in this new burner as evidence in the level of engagement during our demonstration last week, and as mentioned, we are starting by itself proposals for this burner.

Jim Deller: We are seeing a lot of interest in this new burner as evidence in the level of engagement during our demonstration last week, and as mentioned, we are starting by itself proposals for this burner. The second new product line is the new Hors-on-Clyphired burner, with the first of this new technology current infabrication and plans to be installed in the hot oil heater in Texas. When successfully installed and commissioned, this burner is expected to open up the Watts tube boiler market for us in addition to the midstream heaters in the process burner market.

Jim Deller: The second new product line is the new Hors-on-Clyphired burner, with the first of this new technology current infabrication and plans to be installed in the hot oil heater in Texas. When successfully installed and commissioned, this burner is expected to open up the Watts tube boiler market for us in addition to the midstream heaters in the process burner market.

Jim Deller: We also already have interest in this burner just waiting on the demonstrated operation of this first article in Texas. We also maintain an ongoing portfolio of early stage development projects and are receiving multiple customer requests for new variations of our technology, some of which we continue to develop and some which will get dropped that we work through the standard technical, business and marketing assessments of these different opportunities. In the same category of development for the future, we are also considering the development of our resources, such as the recent investment in computer modeling capabilities.

Jim Deller: We also already have interest in this burner just waiting on the demonstrated operation of this first article in Texas.

Jim Deller: We also maintain an ongoing portfolio of early stage development projects and are receiving multiple customer requests for new variations of our technology, some of which we continue to develop and some which will get dropped that we work through the standard technical, business and marketing assessments of these different opportunities.

Jim Deller: Whensuccessfullyinstalledandcommissioned,thisburnerisexpectedtoopenupthewatertubeboilermarketforus,inadditiontothemidstreamheatersintheprocessburnermarket. Wealsoalreadyhaveinterestinthisburner,justwaitingonthedemonstratedoperationofthisfirstarticleinTexas.

Jim Deller: In the same category of development for the future, we are also considering the development of our resources, such as the recent investment in computer modeling capabilities.

Jim Deller: Wealsomaintainanongoingportfolioofearlystagedevelopmentprojects,andarereceivingmultiplecustomerrequestsfornewvariationsofourtechnology. Someofwhichwecontinuetodevelop,andsomewhichwillgetdroppedasweworkthroughthestandardtechnical,business,andmarketingassessmentsofthesedifferentopportunities. Inthesamecategoryofdevelopmentforthefuture,wearealsoconsideringthedevelopmentofourresources,suchastherecentinvestmentincomputermodelingcapabilities.

Jim Deller: We also engage in developing market access to the future.

Jim Deller: We also engage in developing market access to the future. I told briefly about our engagement with a regulatory leadership in Colorado, which we will continue to work on. We are also in frequent contact with the California Air Resources Board, the body that oversees the air districts in California, and also members of the TCEQ in Texas. We will appreciate that to get all this done in addition to our ongoing normal business operations will take a lot of time and effort. We are conscious of the cost of running clear sign and we only add to our head count when absolutely needed.

Jim Deller: I told briefly about our engagement with a regulatory leadership in Colorado, which we will continue to work on.

Jim Deller: We are also in frequent contact with the California Air Resources Board, the body that oversees the air districts in California, and also members of the TCEQ in Texas.

Jim Deller: We will appreciate that to get all this done in addition to our ongoing normal business operations will take a lot of time and effort.

Jim Deller: Wealsoengagedindevelopingmarketaccesstothefuture. ItalkedbrieflyaboutourengagementwiththeregulatoryleadershipinColorado,whichwewillcontinuetoworkon.

Jim Deller: We are conscious of the cost of running clear sign and we only add to our head count when absolutely needed.

Jim Deller: I greatly appreciate all the hard work and dedication of our team.

Jim Deller: I greatly appreciate all the hard work and dedication of our team.

Jim Deller: WearealsoinfrequentcontactwiththeCaliforniaAirResourcesBoard,thebodythatoverseestheairdistrictsinCalifornia,andalsomembersoftheTCEQinTexas.

Jim Deller: And with that, I'd like to open up the call for questions.

Operator: And with that, I'd like to open up the call for questions. Please operate it. Thank you.

Operator: Please operate it.

Operator: Thank you.

Jim Deller: Wewillappreciatethattogetallthisdone,inadditiontoourongoingnormalbusinessoperations,willtakealotoftimeandeffort.

Operator: We will now begin the question in answer session.

Operator: We will now begin the question in answer session. To ask a question, you may press star then one on your touchstone phone. If you're using your speaker phone, please speak up your handset before pressing the keys.

Operator: To ask a question, you may press star then one on your touchstone phone.

Operator: If you're using your speaker phone, please speak up your handset before pressing the keys.

Jim Deller: WeareconsciousofthecostsofrunningClearSign,andweonlyaddtoourheadcountwhenabsolutelyneeded.

Operator: To enjoy a question, please press star then two.

Operator: To enjoy a question, please press star then two. At this time, we will pass momentarily to assemble our roster.

Operator: At this time, we will pass momentarily to assemble our roster.

Jim Deller: Igreatlyappreciateallthehardworkanddedicationofourteam.

Jim Deller: Andwiththat,I'dliketoopenupthecallforquestions.

Operator: Please,operator.

Amit Dayal: Your first question comes from the line of Amit Dayal from HC Wainwright, please go ahead.

Amit Dayal: Your first question comes from the line of Amit Dayal from HC Wainwright, please go ahead. Thank you for taking my questions. So Jim, I mean, it's good to see all the progress you guys are making and it's almost now getting hard to track, you know, all the sales and your pipeline. Could you maybe help us a little bit? And give us a dollar sense of, you know, how much you have in hand as orders, you know, that you will be shipping out over the next few quarters and what is in the pipeline? Yes, thank you, Amit. And thank you for your question.

Operator: Thankyou.

Operator: Wewillnowbeginthequestionandanswersession.

Operator: Toaskaquestion,youmaypressstar,then1onyourtouchtonephone. Ifyou'reusingaspeakerphone,pleasepickupyourhandsetbeforepressingthekeys. Towithdrawyourquestion,pleasepressstar,then2.

Amit Dayal: Thank you for taking my questions.

Amit Dayal: So Jim, I mean, it's good to see all the progress you guys are making and it's almost now getting hard to track, you know, all the sales and your pipeline.

Operator: Atthistime,wewillpausemomentarilytoassembleourroster.

Amit Dayal: Could you maybe help us a little bit?

Operator: YourfirstquestioncomesfromthelineofAmitDayalfromHCWainwright.

Jim Deller: And give us a dollar sense of, you know, how much you have in hand as orders, you know, that you will be shipping out over the next few quarters and what is in the pipeline?

Amit Dayal: Pleasegoahead.

Amit Dayal: Hey,goodafternoon,everyone.

Amit Dayal: Thankyoufortakingmyquestions.

Amit Dayal: So,Jim,Imean,it'sgoodtoseealltheprogressyouguysaremaking,andit'salmostnowgettinghardtotrack,youknow,allthesalesandyourpipeline.

Jim Deller: Yes, thank you, Amit.

Jim Deller: And thank you for your question.

Jim Deller: I think to start, you know, I'll rephrase the, right, the general numbers we've given for everyone are products, obviously cover boiler burners and process burners and varying size, but to keep things, things simple, a good estimate of the sales price or revenue per burner is $100,000 per item.

Jim Deller: I think to start, you know, I'll rephrase the, right, the general numbers we've given for everyone are products, obviously cover boiler burners and process burners and varying size, but to keep things, things simple, a good estimate of the sales price or revenue per burner is $100,000 per item. So I can then talk to the, right, the number of burners both we have in our existing projects and then certainly talk a little bit about what we see in the future.

Jim Deller: Couldyoumaybehelpusalittlebitandgiveusadollarsenseof,youknow,howmuchyouhaveinhandasorders,youknow,thatyouwillbeshippingoutoverthenextfewquarters,andwhatisinthepipeline?

Jim Deller: Yes,thankyou,Amit,andthankyouforyourquestion.

Jim Deller: Ithinktostart,youknow,I'llrephrasethegeneralnumberswe'vegivenforeveryone.

Jim Deller: So I can then talk to the, right, the number of burners both we have in our existing projects and then certainly talk a little bit about what we see in the future.

Jim Deller: Ourproductsobviouslycoverboilerburnersandprocessburnersinvaryingsize.

Jim Deller: Buttokeepthingssimple,agoodestimateofthesalespriceorrevenueperburneris$100,000.

Jim Deller: So I think on the, on the process burn line, the two big orders, I mentioned the 20 burners, which we expect to ship to California late in September, so there's 20 burners there.

Jim Deller: So I think on the, on the process burn line, the two big orders, I mentioned the 20 burners, which we expect to ship to California late in September, so there's 20 burners there. We have the engineering order, which we fully expect to progress for the chemical facility down in Texas. That's 26 burners. There's 46 in total, but just those two orders. There's two heaters that we've mentioned for a current energy. The engineering for those is just about complete.

Jim Deller: Thankyou.

Jim Deller: We have the engineering order, which we fully expect to progress for the chemical facility down in Texas.

Jim Deller: SoIcanthentalktotherightthenumberofburnersbothwehaveinourexistingprojectsandthencertainlytalkalittlebitaboutwhatweseeinthefuture. SoasIthinkontheprocessburnerline,thetwobigorders,Imentionedthe20burnerswhichweexpecttoshiptoCalifornialateinSeptember. Sothere's20burnersthere.

Jim Deller: Nomorequestions,Learners?

Jim Deller: That's 26 burners.

Jim Deller: Thankyou, peritem.

Jim Deller: There's 46 in total, but just those two orders.

Jim Deller: There's two heaters that we've mentioned for a current energy.

Jim Deller: The engineering for those is just about complete.

Jim Deller: There are, you know, a handful of boiler burner and oil burner or hot oil heater burners in progress.

Jim Deller: There are, you know, a handful of boiler burner and oil burner or hot oil heater burners in progress. The, obviously, we have the, the four burner plan with one single client in California. So I think that's the majority of the standard burn, well, it's obviously there's engineering and service and spare parts and other work that we do, but that's, I think, a good framework to assess the right, the revenue to be recognized based on the work that we have to date.

Jim Deller: WehavetheengineeringorderwhichwefullyexpecttoprogressforthechemicalfacilitydowninTexas.

Jim Deller: The, obviously, we have the, the four burner plan with one single client in California.

Jim Deller: That's26burners.

Jim Deller: There's46intotalwithjustthosetwoorders.

Jim Deller: There'stwoheatersthatwe'vementionedforKernEnergy.

Jim Deller: So I think that's the majority of the standard burn, well, it's obviously there's engineering and service and spare parts and other work that we do, but that's, I think, a good framework to assess the right, the revenue to be recognized based on the work that we have to date.

Jim Deller: Theengineeringforthoseisjustaboutcomplete.

Jim Deller: Thereare,youknow,ahandfulofboilerburnerandhotoilburnerorhotoilheaterburnersinprogress.

Jim Deller: Obviously,wehavethethefourburnerplanwithonesingleclientinCalifornia.

Jim Deller: Going forward is a more conscious about a burn in the hand as opposed to what's out there, but we, you know, we are seeing a lot of interest in the hot oil heater lined and no respect in that progress.

Jim Deller: Going forward is a more conscious about a burn in the hand as opposed to what's out there, but we, you know, we are seeing a lot of interest in the hot oil heater lined and no respect in that progress. We have, I mentioned ongoing relationship with current energy and there's certainly interest there. I think some of the, the more exciting things for me as I look further out to the future are, right, the ongoing conversations with company like the Walco, the engineering company involved in the order we've just announced down in Texas, but also that we are getting drawn and are invited to enter discussions at the feed stage of some very large projects.

Jim Deller: SoIthinkthat'sthemajorityofthestandardburnorders.

Jim Deller: Obviously,there'sengineeringandserviceandsparepartsandotherworkthatwedo.

Jim Deller: Butthat's,Ithink,agoodframeworktoassesstherevenuetoberecognizedbasedontheworkthatwehavetodate.

Jim Deller: We have, I mentioned ongoing relationship with current energy and there's certainly interest there.

Jim Deller: I think some of the, the more exciting things for me as I look further out to the future are, right, the ongoing conversations with company like the Walco, the engineering company involved in the order we've just announced down in Texas, but also that we are getting drawn and are invited to enter discussions at the feed stage of some very large projects.

Jim Deller: So the feed stage is really the first financial and feasibility assessment that our customers go through when developing projects. These are typically going to be, you know, two years out, something in that time frame, sometimes even more, but the important thing is that's how you load the pipeline and that's where the growth and the long-term growth of the company comes from is by getting involved in these really big projects early. For me, the reason that's encouraging one is for that pipeline, but also it's an indication of the growing recognition and trust of Clearsign's technology out there in the market.

Jim Deller: Goingforward,I'malwaysconsciousaboutabirdinthehandasopposedtowhat'soutthere.

Jim Deller: Butweareseeingalotofinterestinthehotoilheaterlineandwe'reexpectingthattoprogress.

Jim Deller: Wehave,Imentioned,ongoingrelationshipwithKernEnergyandthere'scertainlyinterestthere.

Jim Deller: So the feed stage is really the first financial and feasibility assessment that our customers go through when developing projects.

Jim Deller: IthinksomeofthemoreexcitingthingstomeasIlookfurtherouttothefutureare,right,theongoingconversationswithcompanieslikeBerwalco,theengineeringcompanyinvolvedintheorderwe'vejustannounceddowninTexas,butalsothatwearegettingdrawnorinvitedtoenterdiscussionsatthefeedstageofsomeverylargeprojects. Sothefeedstageisreallythefirstfinancialandfeasibilityassessmentthatourcustomersgothroughwhendevelopingprojects. Thesearetypicallygoingtobetwoyearsout,somethinginthattimeframe,sometimesevenmore.

Jim Deller: These are typically going to be, you know, two years out, something in that time frame, sometimes even more, but the important thing is that's how you load the pipeline and that's where the growth and the long-term growth of the company comes from is by getting involved in these really big projects early.

Jim Deller: For me, the reason that's encouraging one is for that pipeline, but also it's an indication of the growing recognition and trust of Clearsign's technology out there in the market.

Jim Deller: Buttheimportantthingisthat'showyouloadthepipelineandthat'swherethegrowthandthelong-termgrowthofthecompanycomesfromisbygettinginvolvedinthesereallybigprojectsearly.

Jim Deller: Thank you.

Amit Dayal: Just to clarify, the hot oil heater opportunity is tied to the horizontal process of burner offering that you are developing. That's correct.

Jim Deller: Thank you. Just to clarify, the hot oil heater opportunity is tied to the horizontal process of burner offering that you are developing. That's correct. You know, we've used several names and that we're actually using that as more of a generic name that there are a number of different processes, but it's the there's a number of horizontally fired heaters in. The process injuries and gas processing industries, soil heaters, glyphal heaters, there's a number of different process reviews, the term oil heaters generally to describe those positively fired single burner for strapped burner applications.

Jim Deller: You know, we've used several names and that we're actually using that as more of a generic name that there are a number of different processes, but it's the there's a number of horizontally fired heaters in.

Jim Deller: Forme,thereasonthat'sencouraging,oneisforthatpipeline,butalsoit'sanindicationofthegrowingrecognitionandtrustofclearsciencetechnologyoutthereinthemarket.

Jim Deller: The process injuries and gas processing industries, soil heaters, glyphal heaters, there's a number of different process reviews, the term oil heaters generally to describe those positively fired single burner for strapped burner applications.

Jim Deller: Understood.

Jim Deller: Thankyou.

Jim Deller: Justtoclarify,thehotoilheateropportunityistiedtothehorizontalprocessofburnerofferingthatyouaredeveloping?

Jim Deller: That'scorrect.

Jim Deller: We'veusedseveralnamesandwe'reactuallyusingthatasmoreofagenericname.

Jim Deller: Thereareanumberofdifferentprocesses,butthere'sanumberofhorizontallyfiredheatersintheprocessindustriesandgasprocessingindustries. Well,they'rehotoilheaters,glycolheaters.

Amit Dayal: Okay, got it.

Amit Dayal: So you said you crazy are probably getting a little stretched with all of the activity, you know, in terms of business development and deployments going on.

Jim Deller: Okay, got it. So you said you crazy are probably getting a little stretched with all of the activity, you know, in terms of business development and deployments going on. Are you looking to add more people and how should we think about, you know, operating costs on a quarterly basis going forward? Yeah, so we know you may have, I don't may have seen we currently have one, but I use an advertising as well.

Jim Deller: Are you looking to add more people and how should we think about, you know, operating costs on a quarterly basis going forward?

Jim Deller: There'sanumberofdifferentprocesses.

Jim Deller: We'veusedthetermhotoilheatersgenerallytodescribethosehorizontallyfired,singleburner,forcedraft,burnerapplications.

Jim Deller: Yeah, so we know you may have, I don't may have seen we currently have one, but I use an advertising as well.

Jim Deller: Okay,gotit.

Jim Deller: Soyousaidyouguysareprobablygettingalittlestretchedwithalloftheactivity,youknow,intermsofbusinessdevelopmentanddeploymentsgoingon.

Jim Deller: We currently have one open job posting out of the account reviewing resumes or an engineer to both assist with work with our test furnace and installation work out in the field of their clients.

Jim Deller: We currently have one open job posting out of the account reviewing resumes or an engineer to both assist with work with our test furnace and installation work out in the field of their clients. That is the only current open position we have obviously as more orders come in, we will monitor the load on that project management team and maybe even on their engineering team. Part of the reason also that we are focused on their engineering team is not only that we need to execute the orders that we have, but that I want to ensure that our senior engineers are also very effective sales people.

Jim Deller: Areyoulookingtoaddmorepeople?

Jim Deller: Andhowshouldwethinkabout,youknow,operatingcostsonaquarterlybasisgoingforward?

Jim Deller: Yeah.

Jim Deller: Sowe,no,youmayhave,Idon'tmayhaveseen,wecurrentlyhaveone,butIuseitasanadvertisementaswell.

Jim Deller: That is the only current open position we have obviously as more orders come in, we will monitor the load on that project management team and maybe even on their engineering team.

Jim Deller: Wecurrentlyhaveoneopenjobpostingout. Wearecurrentlyreviewingresumesforanengineertobothassistwithworkatourtestfurnaceandinstallationworkoutinthefieldwithourclients. Thatistheonlycurrentopenpositionwehave. Obviouslyasmoreorderscomein,wewillmonitortheloadonthatprojectmanagementteamandmaybeevenonthatengineeringteam.

Jim Deller: Part of the reason also that we are focused on their engineering team is not only that we need to execute the orders that we have, but that I want to ensure that our senior engineers are also very effective sales people.

Jim Deller: Maintain the time in their schedule to focus on sales and those customer conversations to bring orders in and do not get consumed in right auto execution and engineering because of a low staffing level and you appreciate we have to have people in house and trained up so that they're effectively able to do that work.

Jim Deller: Maintain the time in their schedule to focus on sales and those customer conversations to bring orders in and do not get consumed in right auto execution and engineering because of a low staffing level and you appreciate we have to have people in house and trained up so that they're effectively able to do that work. So we do keep our workforce to a low level, we also have to balance that to make sure that we have the right people to do the job and not take a foot off the gas and focus on the outreach and the sales activities that are so important to us.

Jim Deller: Partofthereasonalsothatwearefocusedonthatengineeringteamisnotonlythatweneedtoexecutetheordersthatwehave,butthatIwanttoensurethatourseniorengineerswhoarealsoveryeffectivesalespeoplemaintainthetimeintheirscheduletofocusonsalesandthosecustomerconversationstobringordersinanddonotgetconsumedinorderexecutionandengineeringbecauseofalowstaffinglevel. Andyou'dappreciatewehavetohavepeoplein-houseandtrainedupsothatthey'reeffectivelyabletodothatwork.

Jim Deller: So we do keep our workforce to a low level, we also have to balance that to make sure that we have the right people to do the job and not take a foot off the gas and focus on the outreach and the sales activities that are so important to us.

Jim Deller: I think in terms of just looking at overhead costs, these positions are positions that we add as part of the growing business so they're not, I wouldn't classify them as.

Jim Deller: I think in terms of just looking at overhead costs, these positions are positions that we add as part of the growing business so they're not, I wouldn't classify them as. A overhead style cost. They are very much a function of the increasing workflow.

Jim Deller: Sowedokeepourworkforcetoalowlevel.

Jim Deller: A overhead style cost.

Jim Deller: Wealsohavetobalancethattomakesurethatwehavetherightpeopletodothejobandnottakeafootoffthegasandfocusontheoutreachandthesalesactivitiesthataresoimportanttous.

Jim Deller: They are very much a function of the increasing workflow.

Amit Dayal: And just last one for me, you know, these demonstrations with Ziko that you are doing for clients.

Jim Deller: And just last one for me, you know, these demonstrations with Ziko that you are doing for clients. What kind of responses are you getting from that and how is this open sort of, you know, maybe improve your sales cycle? So just any color on, you know, how you're leveraging these demonstrations to, you know, just get more visibility in the question.

Jim Deller: Ithinkintermsofjustlookingatoverheadcosts,thesepositionsarepositionsthatweaddaspartofthegrowingbusiness.

Jim Deller: What kind of responses are you getting from that and how is this open sort of, you know, maybe improve your sales cycle?

Jim Deller: Sothey'renot–Iwouldn'tclassifythemasanoverheadstylecost.

Jim Deller: So just any color on, you know, how you're leveraging these demonstrations to, you know, just get more visibility in the question.

Jim Deller: Theyareverymuchafunctionoftheincreasingworkflow.

Jim Deller: Yes, absolutely.

Jim Deller: Yes, absolutely. I mean, the right, the whole purpose of doing these is to show what we can do to the industry, to get people to see it in person and seeing as believing often. And I mean, this demonstration last week was a big demonstration. It was three burners firing in a test furnace. That is not normal. Most tests are done with just a single furnace, single burner. The, you know, I think it's important that the people that came in made this trip dedicated specially for this purpose.

Jim Deller: I mean, the right, the whole purpose of doing these is to show what we can do to the industry, to get people to see it in person and seeing as believing often.

Jim Deller: Understood.

Jim Deller: Andjustlastonefromme,thesedemonstrationswithZcothatyouaredoingforclients,whatkindofresponsesareyougettingfromthatandhowisthishelpingsortofmaybeimproveyoursalescycle?

Jim Deller: And I mean, this demonstration last week was a big demonstration.

Jim Deller: It was three burners firing in a test furnace.

Jim Deller: That is not normal.

Jim Deller: Justanycoloronhowyou'releveragingthesedemonstrationstogetmorevisibilitywithcustomers?

Jim Deller: Most tests are done with just a single furnace, single burner.

Jim Deller: The, you know, I think it's important that the people that came in made this trip dedicated specially for this purpose.

Jim Deller: Yes,absolutely.

Jim Deller: Imean,thewholepurposeofdoingtheseistoshowwhatwecandototheindustrytogetpeopletoseeitinpersonandseeingisbelieving.

Jim Deller: They were not in town for the reasons they flown across the country to be here with us.

Jim Deller: They were not in town for the reasons they flown across the country to be here with us. There was a lot of engagement. We had a full day of active conversations, including the fine demonstration that pursued in bigger through a dinner that evening. The other burners around well, we got to show the hydrogen burner. There was a lot of conversations around the hydrogen burner and the hydrogen burner performance. It also, we had a lot of clear sign staff amongst the customers, as you would expect, and a lot of one-on-one conversations.

Jim Deller: There was a lot of engagement.

Jim Deller: We had a full day of active conversations, including the fine demonstration that pursued in bigger through a dinner that evening.

Jim Deller: Often–Imean,thisdemonstrationlastweekwasabigdemonstration.

Jim Deller: Itwasthreeburnersfiringinatestfurnace.

Jim Deller: Thatisnotnormal.

Jim Deller: Mosttestsaredonewithjustasinglefurnace–singleburner.

Jim Deller: The other burners around well, we got to show the hydrogen burner. There was a lot of conversations around the hydrogen burner and the hydrogen burner performance.

Jim Deller: Ithinkit'simportanttonotethatthepeoplethatcameinmadethistripdedicatedespeciallyforthispurpose.

Jim Deller: Theywerenotintownforotherreasons.

Jim Deller: It also, we had a lot of clear sign staff amongst the customers, as you would expect, and a lot of one-on-one conversations.

Jim Deller: They'veflownacrossthecountrytobeherewithus.

Jim Deller: Therewasalotofengagement.

Jim Deller: Wehadafulldayofactiveconversations,includingthefiringdemonstrationthatpursuedinvigorthroughadinnerthatevening. Theburnersranwell. Wegottoshowthehydrogenburner. Therewasalotofconversationaroundthehydrogenburnerandthehydrogenburnerperformance.

Jim Deller: And we picked up and got engaged in a lot of conversations with our customers where they were asking how could we help them with their problems. And I think we've picked up a lot of maybe not immediate opportunities, but I think a lot of initiatives that have a very good potential of turning into future opportunities from those conversations.

Jim Deller: And we picked up and got engaged in a lot of conversations with our customers where they were asking how could we help them with their problems. And I think we've picked up a lot of maybe not immediate opportunities, but I think a lot of initiatives that have a very good potential of turning into future opportunities from those conversations. And just having that dialogue and ongoing conversations with your customers always keeps you at the front of their mind. And as a while, there's no specific opportunities we're bidding immediate as a result of that conversation. I'm very confident that we will get more engagement and opportunities as a result of that demonstration.

Jim Deller: WehadalotofClearsignstaffamongstthecustomers,asyouwouldexpect,andalotofone-on-oneconversations. Wepickedupandgotengagedinalotofconversationswithourcustomerswheretheywereaskinghowcouldwehelpthemwiththeirproblems. Ithinkwe'vepickedupalotofmaybenotimmediateopportunities,butIthinkalotofinitiativesthathaveaverygoodpotentialofturningintofutureopportunitiesfromthoseconversations.

Jim Deller: And just having that dialogue and ongoing conversations with your customers always keeps you at the front of their mind.

Jim Deller: And as a while, there's no specific opportunities we're bidding immediate as a result of that conversation.

Jim Deller: I'm very confident that we will get more engagement and opportunities as a result of that demonstration.

Amit Dayal: Thank you, Jim.

Amit Dayal: Thank you, Jim. That's all I have. Thank you, amen. Thank you.

Amit Dayal: That's all I have.

Operator: Thank you, amen.

Jim Deller: Havingthatdialogueandongoingconversationswithyourcustomersalwayskeepsyouatthefrontoftheirmind.

Operator: Thank you.

Operator: Once again, should you have a question?

Operator: Once again, should you have a question? You start off by the one on your telephone device. The operator, I'm going to go ahead and read.

Operator: You start off by the one on your telephone device.

Jim Deller: Whilethere'snospecificopportunitieswe'rebiddingimmediatelyasaresultofthatconference,Iamveryconfidentthatwewillgetmoreengagementandopportunitiesasaresultofthatdemonstration.

Operator: The operator, I'm going to go ahead and read.

Operator: We've got a couple via email.

Operator: We've got a couple via email. So I read the first question. You've increasingly highlighted third parties like heater manufacturers in your recent press releases about sales.

Operator: So I read the first question.

Operator: You've increasingly highlighted third parties like heater manufacturers in your recent press releases about sales.

Jim Deller: Thankyou,Jim.

Jim Deller: That'sallIhave.

Jim Deller: Thankyou,Amanda.

Jim Deller: Thankyou.

Operator: Onceagain,shouldyouhaveaquestion,pleasepressstar5801onyourtelephonekeypad.

Jim Deller: Can you talk about how many of these roads we may have and how many of these may exist?

Jim Deller: Can you talk about how many of these roads we may have and how many of these may exist? That's a good question. I'll answer the best I can.

Jim Deller: That's a good question.

Jim Deller: I'll answer the best I can.

Jim Deller: So it's probably good to just to step back a little for everyone to explain how the heater manufacturers and engineering companies fit, in the industry.

Jim Deller: So it's probably good to just to step back a little for everyone to explain how the heater manufacturers and engineering companies fit, in the industry. So you think of a typical client, no, let's pick one, you know, Kip. Well, no name is super major. Let's see, Chevron has a heater and if you want to buy a heater, they'll also go to a heater manufacturer and the heater manufacturer would then buy burgers to put into the heater and supply as part of a package.

Operator: Hi,operator.

Operator: I'mgoingtogoaheadandread.

Operator: We'vegotacoupleviaemail.

Operator: So,I'mgoingtoreadthefirstquestion.

Jim Deller: You'veincreasinglyhighlightedthirdpartieslikeheatermanufacturersinyourrecentpressreleasesaboutsales.

Jim Deller: Canyoutalkabouthowmanyoftheserelationshipswemayhaveandhowmanyofthesemayexist?

Jim Deller: So you think of a typical client, no, let's pick one, you know, Kip.

Jim Deller: Well, no name is super major.

Jim Deller: That'sagoodquestion.

Jim Deller: I'llanswerthisandansweritthebestIcan.

Jim Deller: Let's see, Chevron has a heater and if you want to buy a heater, they'll also go to a heater manufacturer and the heater manufacturer would then buy burgers to put into the heater and supply as part of a package.

Jim Deller: It'sprobablygoodtojuststepbackalittlebit,everyone,andexplainhowtheheatermanufacturers,theengineeringcompaniesfitintotheindustry.

Jim Deller: Or if they own that heater and require work on the heater to change its purpose or to meet new emissions requirements, they would typically go to one of those heater manufacturers or either engineering companies and outsource the work to them. And that company would then have a very prominent role in redesigning the heater and selecting the equipment.

Jim Deller: Or if they own that heater and require work on the heater to change its purpose or to meet new emissions requirements, they would typically go to one of those heater manufacturers or either engineering companies and outsource the work to them. And that company would then have a very prominent role in redesigning the heater and selecting the equipment.

Jim Deller: So,youthinkofatypicalclient,let'spickone,nameasupermarket,let'ssayChevronhasaheaterandiftheywanttobuyaheater,they'llobviouslygotoaheatermanufacturerandtheheatermanufacturerwouldthenbuyburnerstoputintothatheaterandsupplyaspartofapackage.

Jim Deller: You know, during the hour and marks a few minutes ago, I talked to some extent about Bawolko.

Jim Deller: You know, during the hour and marks a few minutes ago, I talked to some extent about Bawolko. Bawolko is a really good example of a very prominent heater manufacturer. They supply heat as they do the engineering and they were very influential in the 26th corner order that we announced it in that role. So yes, I do talk about it a lot because effectively they act as a sales channel for us. And as we sell products and new heater companies get involved in a clear side project, that's another heater company that's aware of what we do and then can use Abern as part of their solution that they are honestly trying to sell to their customers to get business for themselves.

Jim Deller: Oriftheyownthatheaterandrequireworkontheheatertochangeitspurposeortomeetnewemissionsrequirements,theywouldtypicallygotooneofthoseheatermanufacturersorheaterengineeringcompaniesandoutsourcetheworktothemandthatcompanywouldthenhaveaveryprominentroleinredesigningtheheaterandselectingequipment.

Jim Deller: Bawolko is a really good example of a very prominent heater manufacturer.

Jim Deller: They supply heat as they do the engineering and they were very influential in the 26th corner order that we announced it in that role.

Jim Deller: So yes, I do talk about it a lot because effectively they act as a sales channel for us.

Jim Deller: And as we sell products and new heater companies get involved in a clear side project, that's another heater company that's aware of what we do and then can use Abern as part of their solution that they are honestly trying to sell to their customers to get business for themselves.

Jim Deller: So I need to go back and look through details but we're probably at a handful, half a dozen heater companies that we work with today.

Jim Deller: So I need to go back and look through details but we're probably at a handful, half a dozen heater companies that we work with today. That might be all but I wanted to summary in that order. That's the easy part of the question.

Jim Deller: Soyes,Idotalkaboutthemalotbecauseeffectivelytheyactasasaleschannelforus.

Jim Deller: That might be all but I wanted to summary in that order.

Jim Deller: AndaswesellproductsandnewheatercompaniesgetinvolvedinaClearsignproject,that'sanotherheatercompanythat'sawareofwhatwedoandthencanuseourburnersaspartoftheirsolutionthattheyareconstantlytryingtoselltotheircustomerstogetbusinessforthemselves.

Jim Deller: That's the easy part of the question.

Jim Deller: I think the questions to how many are out there is a lot more open-ended.

Jim Deller: I think the questions to how many are out there is a lot more open-ended. There's probably 10 to 15 heater and heater engineering companies that are frequently engaged in the U.S, market but depending on how big the companies you include are and where they are, the number will actually be much more than that and there are a lot of smaller a bespoke engineering and heater companies as well. So that last part is that would be almost difficult for the number two.

Jim Deller: There's probably 10 to 15 heater and heater engineering companies that are frequently engaged in the U.S, market but depending on how big the companies you include are and where they are, the number will actually be much more than that and there are a lot of smaller a bespoke engineering and heater companies as well.

Jim Deller: SoIneedtogobackandlookthroughdetails,butwe'reprobablyatahandful,halfadozenheatercompaniesthatwe'veworkedwithtodate.

Jim Deller: So that last part is that would be almost difficult for the number two.

Jim Deller: Thatmightbeoneortwo,butsomewhereinthatorder.

Jim Deller: That'stheeasypartofthequestion.

Jim Deller: Ithinkthequestionastohowmanyareoutthereisalotmoreopen-ended.

Jim Deller: There'sprobably10to15heaterandheaterengineeringcompaniesthatarefrequentlyengagedintheU.S, market.

Operator: The second question.

Operator: The second question.

Operator: In your press release today you stated an event in California next week to unveil independent data.

Jim Deller: In your press release today you stated an event in California next week to unveil independent data. Can you give more color? Well first of all thank you for reading the press release.

Jim Deller: Butdependingonhowbigthecompaniesyouincludeareandwheretheyare,thenumberwillactuallybemuchmorethanthat.

Jim Deller: Can you give more color?

Jim Deller: Well first of all thank you for reading the press release.

Jim Deller: Andtherearealotofsmallerbespokeengineeringandheatercompaniesaswell.

Jim Deller: So this project in some ways is similar to the demonstration ran at Zego last week with some very significant differences.

Jim Deller: So this project in some ways is similar to the demonstration ran at Zego last week with some very significant differences. First of all fundamentally for us it's focused on our boiler burner technology rather than the process burner. We have a or been part of an ongoing burner comparison study that's been run by the California GET program to look at technologies to reduce noximations and to increase burner efficiency. Essentially increasing efficiency is decarbonization. It's the savior of fuel and that means less carbon. That is really the focus of this program is how can you decarbonize the boilers and achieve and maintain these exceptionally low.

Jim Deller: Sothatlastpartis,tobehonest,difficulttoputanumberto.

Jim Deller: Thesecondquestion,inyourpressreleasetoday,youstatedaneventinCalifornianextweektounveilindependentdata.

Jim Deller: First of all fundamentally for us it's focused on our boiler burner technology rather than the process burner.

Jim Deller: Canyougivemorecolor?

Jim Deller: We have a or been part of an ongoing burner comparison study that's been run by the California GET program to look at technologies to reduce noximations and to increase burner efficiency.

Jim Deller: Well,firstofall,thankyouforreadingthepressrelease.

Jim Deller: SothisprojectinsomewaysissimilartothedemonstrationweranatZicolastweek.

Jim Deller: Butthequestionis,howmanyareoutthere?

Jim Deller: AtZicolastweek,withsomeverysignificantdifferences.

Jim Deller: Essentially increasing efficiency is decarbonization. It's the savior of fuel and that means less carbon. That is really the focus of this program is how can you decarbonize the boilers and achieve and maintain these exceptionally low.

Jim Deller: Firstofall,fundamentallyforus,it'sfocusedonourboilerburnertechnologyratherthantheprocessburner.

Jim Deller: Wehavebeenpartofanongoingburnercomparisonstudythat'sbeenrunbytheCaliforniaGETprogramtolookattechnologiestoreduceNOxemissionsandtoincreaseburnerefficiency. Essentially,increasingefficiencyisdecarbonization. It'sthesavioroffuel,andthatmeanslesscarbon. SothatisreallythefocusofthisprogramishowcanyoudecarbonizetheboilersandachieveandmaintaintheseexceptionallylowNOxnumbers.

Jim Deller: The program was run by get and funded by them. The engineers were paid by get. It was hosted at a partner California boiler site. The data is owned by get. They will be releasing a report.

Jim Deller: The program was run by get and funded by them. The engineers were paid by get. It was hosted at a partner California boiler site. The data is owned by get.

Jim Deller: They will be releasing a report. We believe sometime in early September and please follow us on LinkedIn. We will put announcements of that out.

Jim Deller: We believe sometime in early September and please follow us on LinkedIn.

Jim Deller: We will put announcements of that out. We will host that report out on our website.

Jim Deller: We will host that report out on our website.

Jim Deller: Also, the demonstration next week is the Clearsign technology operating in a boiler. It's one of the concluding activities of this get program.

Jim Deller: Also, the demonstration next week is the Clearsign technology operating in a boiler. It's one of the concluding activities of this get program. They have managed this. They have been the ones primarily distributed by T list and maintain the list. We have, I think last count today, we had up to 80 attendees registered for that. Some of them were the senior global refinery engineers that came into our eco-demonstration. Some of the who's actually going out to California because they're also interested in the boiler burner technologies. We got to talk about that at the same time.

Jim Deller: TheprogramwasrunbyGETandfundedbythem.

Jim Deller: TheengineerswerepaidbyGET. ItwashostedatapartnerCaliforniaboilersite.

Jim Deller: They have managed this.

Jim Deller: They have been the ones primarily distributed by T list and maintain the list.

Jim Deller: ThedataisownedbyGET.

Jim Deller: Theywillbereleasingareport,webelieve,sometimeinearlySeptember.

Jim Deller: We have, I think last count today, we had up to 80 attendees registered for that.

Jim Deller: AndpleasefollowusonLinkedIn.

Jim Deller: Wewillputannouncementsofthatout.

Jim Deller: Some of them were the senior global refinery engineers that came into our eco-demonstration.

Jim Deller: Wewillhostthat,putthatreportoutonourwebsite.

Jim Deller: Also,thedemonstrationnextweekistheclearsigntechnologyoperatinginaboiler.

Jim Deller: Some of the who's actually going out to California because they're also interested in the boiler burner technologies.

Jim Deller: It'soneoftheconcludingactivitiesofthis.

Jim Deller: We got to talk about that at the same time.

Jim Deller: This is a big deal and especially the results, I don't have the exact data to share today but having a burner that A to D carbonization is shown to be more efficient and has this world leading nox level for a burner is a really big deal in my opinion.

Jim Deller: This is a big deal and especially the results, I don't have the exact data to share today but having a burner that A to D carbonization is shown to be more efficient and has this world leading nox level for a burner is a really big deal in my opinion. Thank you.

Jim Deller: Wegottotalkaboutthatatthesametime. Thisisabigdeal,andespeciallytheresults.

Jim Deller: Thank you.

Operator: There are no further questions at this time.

Operator: There are no further questions at this time.

Jim Deller: I would like to turn the conference back over to Clearsign's ECEO, Mr. Jim Deller, for any closing remarks.

Jim Deller: I would like to turn the conference back over to Clearsign's ECEO, Mr. Jim Deller, for any closing remarks. Well, thank you operator. And thank you everyone for your interest. I'm taking the time to participate today. We're forward to updating you regarding our developments and speaking with you all on our next call.

Jim Deller: Idon'thavetheexactdatatosharetoday,buthavingaburnerthatAZdecarbonizationisshowntobemoreefficientandhasthisworld-leadingNOxlevelforaburnerisareallybigdeal,inmyopinion.

Jim Deller: Well, thank you operator.

Jim Deller: And thank you everyone for your interest.

Jim Deller: I'm taking the time to participate today.

Jim Deller: We're forward to updating you regarding our developments and speaking with you all on our next call.

Jim Deller: Thankyou.

Operator: Therearenofurtherquestionsatthistime.

Operator: This concludes today's call.

Operator: This concludes today's call. Thank you for participating.

Operator: Thank you for participating.

Operator: You may all disconnect.

Operator: You may all disconnect.

Jim Deller: IwouldliketoturntheconferencebackovertoClearsign'sCEO,Mr.

Jim Deller: TimDeller,foranyclosingremarks.

Jim Deller: Well,thankyou,operator,andthankyou,everyone,foryourinterestintakingthetimetoparticipatetoday.

Jim Deller: Welookforwardtoupdatingyouregardingourdevelopmentsandspeakingwithyouallonournextcall.

Jim Deller: Thisconcludestoday'scall.

Operator: Thankyouforparticipating.

Operator: Youmayalldisconnect.