Q4 2024 ClearSign Technologies Corp Earnings Call
Good morning, and welcome to the clearest sign technologies fourth quarter and full year 2024 conference call.
Operator: Good morning and welcome to the Clearsign Technologies fourth quarter and full year 2024 conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero.
All participants will be in listen only mode.
Should you need assistance. Please signal conference specialist by pressing the star key followed by zero.
Operator: After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press the star key and then the one on your touchtone phone. To withdraw your question, please press star then 2. Please note this event is being recorded.
After today's presentation there'll be an opportunity to ask questions to ask a question you May press the star key and then the one on your Touchtone phone to.
To withdraw your question. Please press Star then two please.
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. Please go ahead.
Speaker Change: I would now like to turn the conference over to Matthew Selinger of firm IR Group. Please go ahead.
Speaker Change: Good afternoon, and thank you operator, welcome everyone to the clear side Technologies Corporation fourth quarter and full year 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.
Matthew Selinger: Good afternoon and thank you, operator.
Matthew Selinger: Welcome everyone to the Clearsign Technologies Corporation fourth quarter and full year 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 statement.
Speaker Change: This includes remarks about the company's projections expectations plans beliefs.
Speaker Change: And prospects.
Speaker Change: These statements are based on judgments and analysis as the theme of this conference call.
Speaker Change: 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.
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 product, and other risks that are described in Clearsign's filings with the SEC, including those discussed under the risk factors section of the annual report on Form 10-K, the period ended December 31st, 2024.
Speaker Change: The risks and uncertainties associated with the forward looking statements made in this conference call include but are not limited to whether.
Speaker Change: But their field testing and sales of <unk> products will be successfully completed whether it.
Speaker Change: Clear, saying will be successful in expanding the market for its product and other risks that are described it appears in its filings with the SEC, including those discussed under the risk factors section of the annual report on Form 10-K. The period ended December 31 2024.
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 required by law her side 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, and Brent Hinds, Clearsign's Chief Financial Officer. At this point, I would like to turn the call over to Brent Hinds. So Brent, please go ahead.
Speaker Change: So on the call with me today are Jim Deller, Chief Executive Officer, and Fred Hite, Chris Nines, Chief Financial Officer.
Speaker Change: At this point I would like to turn the call over to Brett Hi, So Brent. Please go ahead.
Brent Hinds: Thank you, Matthew.
Speaker Change: Thank you Matthew.
Brent Hinds: Thank you to everyone joining us here today. Before I begin, I'd like to note that our financial results on Form 10-K was filed with the SEC on March 31st. With that, I'd like to give an overview of the financials for the fourth quarter and full year of 2024. For the fourth quarter of 2024, Clearsign recognized approximately $590,000 in revenues, compared to $1.3 million for the same comparable period in 2023. The year over year difference in revenues was driven by a decrease in business activity. During the fourth quarter in 2023, we shipped eight process burners and completed two customer witness tests for a California refinery customer.
Speaker Change: Thank you to everyone join us here today.
Speaker Change: Before I begin I'd like to note that our financial results on Form 10-K.
Speaker Change: As filed with the SEC on March 31.
Speaker Change: With that I'd like to give an overview of the financials for the fourth quarter and full year of 23 four.
Speaker Change: For the fourth quarter of 2024, there's sudden recognized approximately $590000 in revenues compared to $1 3 million for the same comparable period in 2023.
Speaker Change: The year over year difference in revenues was driven by a decrease in business activity.
Speaker Change: During the fourth quarter and 2023, we shipped eight process burgers and completed two customer witness tests for our California refinery customer, whereas during the fourth quarter and 'twenty 'twenty four we shipped to buoy, the burgers and executed a process burner engineering study.
Brent Hinds: Whereas during the fourth quarter in 2024, we shipped two boiler burners and executed a process burner engineering study. Now, keep in mind, this process burner engineering study led to a follow on purchase order of 26 burners, as noted in our November 27th, 2024 press release. For the full year of 2024, we recognize record revenues of approximately $3.6 million, compared to $2.4 million in 2023. This is approximately a 50% increase year over year. This increase was driven by overall year-over-year increase in business activity. 2024 revenues were predominantly generated by the shipment of 25 process burners to two separate California refineries.
Speaker Change: Keep in mind. This process for engineering study led to a follow on purchase order of 26 burgers.
Speaker Change: Noted in our November 27, 2024 press release.
Speaker Change: For the full year of 'twenty 'twenty four we recognized record revenues of approximately $3 6 million compared to $2 4 million in 2023.
Speaker Change: This is approximately a 50% increase year over year.
Speaker Change: This increase was driven by overall year over year increase in business activity.
Speaker Change: 'twenty 'twenty four revenues were predominantly generated by the shipment of 25 presses first to two separate California refineries, whereas in 2023 revenues were predominantly generated from the shipment of eight process Spurs.
Brent Hinds: Whereas in 2023 revenues were predominantly generated from the shipment of eight process burners and three separate customer witness tests. Our gross profit margin for the year ended 2024 was approximately 31.1% compared to 34% during the comparable period in 2023. This year over year decrease in margin was a direct result of our large 1200 horsepower, 2.5 ppm boiler burner installation. Since this was the first installation of the boiler burner of this size, we incurred greater than expected startup costs during the first quarter of 2024.
Speaker Change: Three separate customer witnessed Jess.
Speaker Change: Our gross profit margin for the year ended 2024 was approximately 31, 1% compared to 34% during the comparable period in 2023.
Speaker Change: This year over year decrease in margin was a direct result of our large 1200 horsepower 2.5 P. P M boiler burner installation.
Speaker Change: Since this was the first installation of the boiler burner or the size, we incurred greater than expected startup costs. During the first quarter of 'twenty 'twenty four.
Speaker Change: Now I'd like to shift focus from revenue to cash our net cash used in operations for the year ended December 31, 'twenty 'twenty four was approximately $4 4 million.
Brent Hinds: Now I'd like to shift focus from revenue to cash. Our net cash use in operations for the year into December 31, 2024 was approximately $4.4 million, compared to approximately $3.2 million for the same comparable period in 2023. This $1.2 million year-over-year decrease was driven by a $1 million decrease in contract liabilities, which basically represents monies received from customers prior to revenue recognition.
Speaker Change: Carriage of approximately $3 2 million for the same comparable periods in 2023.
Speaker Change: $1.2 million year over year decrease was driven by a million dollars a decrease in contract liabilities.
Speaker Change: Beliefs, which basically represents monies received from customers prior to revenue recognition.
Speaker Change: Now turning our focus from cash to the full year income statement.
Brent Hinds: Now turning our focus from cash to the full year income statement. Our net loss for the full year 2024 was approximately $5.3 million, which is an increase of approximately $100,000 compared to the same period in 2023. This increase in net loss was due in part to a one-time non-recurring expense of approximately $400,000 related to our decision to place our China entity into a dormant status.
Speaker Change: Our net loss for the full year 'twenty 'twenty four was approximately $5 3 million, which is an increase of approximately $100000 compared to the same period in 2023.
Speaker Change: This increase in net loss was due in part to a one time nonrecurring expense of approximately 400000 related to our decision to place our China entity into a dormant status.
Speaker Change: Now I need to note that yesterday on April 1st 'twenty 'twenty four we received a letter from NASDAQ, stating that we'd no longer meet the minimum bid price of a dollar per share.
Brent Hinds: Now I need to note that yesterday on April 1st, 2024, we received a letter from NASDAQ stating that we no longer meet the minimum bid price of $1 per share. As set forth in NASDAQ's listing rules, according to the rules, we have been given a period of 180 calendar days, or until September 29, 2025, in which to regain compliance. To regain compliance, our common stocks closing price must be at least $1 per share for a minimum of 10 consecutive business days during the 180 day cure period.
Speaker Change: As set forth in nasdaq's listing rules.
Speaker Change: According to the rules, we have been given a period of about an 80 calendar days or until September 29, 2025 in which to regain compliance.
Speaker Change: To regain compliance our common stocks clothing price must be at least $1 per share for a minimum of 10 consecutive business days during the 180 day care period.
Speaker Change: As of December 31, 'twenty 'twenty, four we had approximately $14 million in cash and cash equivalents was approximately 52 million of shares of common stock outstanding.
Brent Hinds: As of December 31, 2024, we had approximately $14 million in cash in cash equivalents, with approximately 50.2 million of shares of common stock outstanding. From a financial perspective, we believe we are well positioned to meet current customer demands, deliver on our project pipeline, and scale our business to profitability.
Speaker Change: From a financial perspective, we believe we are well positioned to meet current customer demands deliver on our project pipeline and scale our business to profitability.
Matthew Selinger: With that, I'd like to turn the call over to our CEO, Jim Deller. Jim. Thank you, Brent, for the financial overview.
Speaker Change: With that I'd like to turn the call over to our CEO, Jim Deller 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 interest in Clearsign. We're going to use a similar format today to the previous call. We have received overwhelming positive feedback from this change and believe this provides a more engaging and it's a similar conversation.
Jim Deller: As always I'd like to thank everyone for joining us on the call today, and if youre interested class I.
Jim Deller: We don't use a similar format today to the previous call.
Jim Deller: We have received overwhelmingly positive feedback from this change and believe this provides a more engaging and its a.
Jim Deller: Similar conversation.
Speaker Change: Matthew Selinger would lead the question and answer session. We will go through the main contents of this call much like the last call.
Jim Deller: Matthew Selinger will lead the question and answer session where we will go through the main content of this call, much like the last call. We will cover developments in our product line, but I'll also talk about some general themes and strategies that we are implementing and reference this to our sales and product line updates to provide some insight into overarching ambitions and progress of a more strategic nature.
Speaker Change: He will cover developments in our product lines, but I'll also talk about some general themes and strategies that we are implementing our references to our sales and product line updates to provide some insight into your overarching ambitions and progress of our more strategic nature.
Speaker Change: Yeah.
Jim Deller: We will end up. with an outlook for the rest of 2025 and into 2026. And then, as always, open up the call for Q&A.
Speaker Change: We will end up.
Speaker Change: With an outlook for the rest of 2025 and enter 2026, and then as always open up the call for Q&A.
Speaker Change: Quick note regarding the Q&A. In addition to call in if you wish you could also sending questions ahead of time tried investor relations at M. S. E. L. I N G E R at firm I All group Dotcom.
Matthew Selinger: A quick note regarding the Q&A, in addition to calling in, if you wish, you can also send in questions ahead of time to our investor relations at mselinger.com. Great, Matt. Great, Jim.
Speaker Change: Great that's great Yeah, let's get started.
Matthew Selinger: Let's get started. So as Brent mentioned, Clearsign just recorded a record revenue year.
Speaker Change: As Brent mentioned and Chris I, just recorded a record revenue year.
Jim Deller: Could you give a little more of what this was comprised of, what led to this? I can. But before we start, I can I think it's good to just to look back a little, you know, if you look back to 2021, what we came in at just over $600,000 in revenue, as Brent mentioned, or it dropped slightly in 2022, then as Brent mentioned, we're at $2.4 million in 2023, and then closed out last year at $3.6 million. Last year's revenue was predominantly due to the large refinery burner process order that we shipped to Los Angeles.
Speaker Change: Could you give a little more of what this was comprised of what led to this.
Ken: Hi, Ken.
Ken: But before we start I can't I think it's good to just to look back a little and if you look back to 2021.
Ken: But we.
Matt: Hey, Matt just over 600000 in revenue as Brent mentioned.
Ken: It is.
Ken: Dropped slightly in 2022, then as Brent mentioned, we're at $2 4 million in 2023, and then closed out last year at $3 6 million.
Ken: So.
Ken: Now she's revenue was predominantly due to the large refinery better process the ones that we shipped out to Los Angeles.
Ken: That was 20 billion as those beds are still there on that job sites, we're expecting them to start up in the early in the third quarter. All appreciate that.
Jim Deller: That was 20 burners. Those burners are still there on their job sites. We're expecting them to start up in the early in the third quarter of this year. The installation and shutdown has been... Delayed On-Site. But in addition to that project, we had some burners shipped out to Kern Energy, who continue to be a good customer of ours. And then there's also some mystery with water burners. Rounded that out.
Ken: The installation and shut down the speed.
Ken: And on site, but in addition to the projects we had some bad is shipped out to kit.
Ken: Energy continues to be a good customer of ours.
Ken: Then there are also some midstream water bed as debt.
Ken: Rounding that out great. Thanks, so much so in your opening comments excuse me you mentioned, some higher level themes and strategy. So before we get into the individual product lines.
Jim Deller: Great. Thanks so much.
Matthew Selinger: So in your opening comments, excuse me, you mentioned some higher level themes and strategies. So before we get into the individual product lines, let's let's kind of start with that.
Jim Deller: If you don't mind, could you give a little more, say a little more about some of these themes and strategies you're talking about for 2025 and 2026?
Ken: It's kind of start with that if you don't mind could you give a little more stable more about some of these teams and strategies you're talking about for 2025 and 26 seven.
Jim Deller: And this actually started some some time ago, but I think it's time to start explaining what we are looking to do as, as we expect some new results to roll out. So going back to when I joined Clearsign back in 2019. Our first objective at that point was to prioritize and commercialize the technology that we had. and the Boilerburners. We gave ourselves a mandate to develop that technology into a form that the clients would need and the clients could use, and it would be easy for them to install and for the operators to run with.
Ken: Honestly he started some some time ago that I think it's time to start explaining what we all.
Speaker Change: Looking to do is as expect somebody to soldier borne out so going back to when I joined CA signed back in 2019.
Speaker Change: Our first objective at that point were to.
Speaker Change: Prototypes and commercialize the technology that we had.
Speaker Change: But I was always hold low hanging fruit that was the oil refining process Bad news and the bad news, we gave ourselves a mandate to develop our technology into a full that the clients would need and our clients could use and would be easy for them to install.
Speaker Change: For the operators to run with but in addition to that we also realized that we had to develop.
Jim Deller: But in addition to that, we also realized that we had to develop channels to markets. and be able to provide these products and technologies in a manner that the customers were used to buying them. What that entailed is what resulted in us forming a collaborative agreement with Zco Inc. Zco is, for those of you who don't know, Zco is the second largest burner manufacturer in the world. And as part of the refining burner supply, it is a requirement that the burners are demonstrated at full scale in an industrial test furnace. to prove the emissions and the operation requirements for the customer.
Speaker Change: Channels to market.
Speaker Change: And be able to provide these products and technologies in a manner that the customers who are used to buying it well. They entailed has resulted and is fully a collaborative agreement with Zico, Inc. CECO is so you don't the Zika is the second largest bedding manufacturer in the world.
Speaker Change: Out of the refining.
Speaker Change: The supply it is a requirement that the bad is all demonstrated at full scale in an industrial test furnace.
Speaker Change: To prove the emissions on the operational requirements of the customer and also typically the products are manufactured in the shops, but it has been.
Jim Deller: And also typically that the products are manufactured in a shop that has been validated and meets the certification requirements of the refining customers. So we have to come up with a way to deliver products with that capability and we did that by forming a relationship with Zika. On the boiler burner side, you have to have a partner that provides service to customers. We did that through a relationship with one of the leading service companies in California, California Boiler. They take care of the customers. They formed a subsidiary called Rogue Combustion. And with our technology and Rogue Combustion providing the controls, they actually deliver the Clearsign technology into the oil market, marketed as a rogue burner.
Speaker Change: Validated it makes the certification requirements alter finding customers so.
Speaker Change: We have to.
Speaker Change: Come up in a way to deliver products with.
Speaker Change: That capability and we did that by forming a relationship with Zika.
Speaker Change: On the boiler burner side, you have to have a customer that provides service to let's say you have to have a positive effect of service to customers.
Speaker Change: We did that through a relationship with one of the leading water service Company, California, California boiler.
Speaker Change: They take care of the customers they formed a subsidiary called road combustion.
Speaker Change: And with.
Speaker Change: Technology and road combustion, providing the controls they actually deliver the clay assigned technology into the boarder market marketed as it was but.
Jim Deller: So that I mean, that's a summary, but that gave us the ability to get the products recognised in the market to make initial sales and to start the growth of our business and as reflected in the revenue. Right.
Speaker Change: So that.
Speaker Change: I mean, that's sort of a summary, but that gave us the ability to get the products recognized in the market to make initial sales and to start the growth of our business and that's reflected in the revenue.
Speaker Change: Right jumping forward too.
Jim Deller: Jumping forwards to today and more recent times, we recognize that there is much bigger opportunity for Clearsign. but we have the ability with our patents and our staff to develop technology that's applicable to much bigger markets and that we can broaden the regions that we sell into. the scope of our orders and actually diversify our portfolio while staying true to the core competencies and the skills of Clearsign. So that. is what we're starting to roll out now. Correct.
Speaker Change: It's a day in more recent times right.
Speaker Change: We recognize that there is much bigger opportunity to play a client.
Speaker Change: We have the ability without patents and our staff to develop technology, that's applicable to much bigger markets.
Speaker Change: And then we can broaden the reach.
Speaker Change: Regions that we sell into either.
Speaker Change: The scope of our orders are actually diversify our portfolio while staying true.
Speaker Change: To the core competencies and skills are clear signs of that.
Speaker Change: Is what we're starting to rollout now correct.
Jim Deller: So kind of in summary, and I think we'll kind of hit on this throughout the call, because high level themes are diversifying product lines, kind of like diversifying within those product lines, and continue to leverage sales channels. Is that correct? Yes, that is. On the sales channels, in addition to partners like California Boiler and Zco, we sell a lot to third parties, for example, heater manufacturers as we sell to them. They include our products in their future offerings and will bring orders to us. So as we sell to new companies, part of that expanding our sales scope is getting more companies familiar with our equipment and actually selling to more customers.
Speaker Change: In summary, I think we will it will kind of hit on this throughout the call.
Speaker Change: Cause high level themes are diversifying product lines. It sounds like diversifying within those product lines and continued to leverage sales channel does that correct. Yes. It has gone on these out channels in <unk>.
Speaker Change: Listen to partners like California boiler Z code.
Speaker Change: We sell a lot to say policies for example, either manufacturers as we sell to them.
Speaker Change: We include our products in the future offerings and we'll bring all this to it so as we sell to either get a company as part of that expanding ourselves scope is getting more either companies familiar with our equipment sizable customers. They continue to be a say.
Jim Deller: They continue to be a sales challenge for us going forward.
Speaker Change: The challenge for us going forwards.
Speaker Change: Tastic.
Matthew Selinger: So let's dive into the product line.
Speaker Change: So listen to dive into the product lines, starting with the process burner line. There had been a lot of developed recently and you touched on this you mentioned any zika obviously in your comments a moment ago could you touch on that the most recent announcement with veeco and what that means for the company.
Jim Deller: So starting with the process burner line, you know, there have been a lot of developments recently and you touched on this. You mentioned the name Zco, obviously, in your comments moments ago.
Jim Deller: Could you touch on the most recent announcement with Zco and what that means for the company? Yes, I can. And this was key for us.
Speaker Change: Yes, I can and this was key for us to announce we'll pause late last year.
Jim Deller: The announcement was late last year. When we, as I mentioned, we first formed the relationship with Zco, the initial requirements were to have access to the burner testing and the manufacturing capabilities of Zco. But as we discussed that collaboration, the rather longer term vision for both of us was that Clearsign refinery process business would ultimately become a Zco product line. But at the time back in 2019, we recognized at the time it wasn't right to launched that then because of the newness of the new Clearsign technology. Coming forwards to last year and the progress that we've made and the orders now obviously what Zco has seen and Clearsign We have reached the point that, for both of us, we believe that it made sense to go and move our relationship to this next level, so the announcement was just that.
Speaker Change: As I mentioned, we finished full year relationship Zika or the initial requirements would have access to the beta testing and manufacturing capabilities of Zika.
Speaker Change: But as we discussed that collaboration the right along with him.
Speaker Change: For both of US was that clay assign refinery process fitness would ultimately become a Z code product line.
But at the time back in 2019.
We've recognized at the time it wasn't bright too.
Orange that then because of the newness of the new technology.
Speaker Change: Can we afford to last year and the progress that we've made and the oldest now obviously zika has seen a clear sign.
Speaker Change: We have reached a point that off of both of US we believe that it made sense to go and move our relationship to this next level. So the announcement was just that.
Jim Deller: We announced a co-branded Zco Clearsign burner line. Zco have now included Clearsign as a page in their own website. We've developed joint marketing materials, and over the last few months, we have conducted teach-ins to the Zco sales team, because part of this arrangement is that the very large Zco sales team now has Clearsign technology as an offering that they can discuss and present to their customers. So so you're basically saying that with the product maturity, it was deemed that this is the right time. And now the co-branded product has been launched. Is that is that correct?
Speaker Change: We announced a cobranded zico clay assigned but been aligned.
Speaker Change: CECO has now included class line as a page in our website, we've developed joint marketing materials.
Speaker Change: And over the last few months, we have conducted sprite teach ins to the Zika sales team because part of this arrangement is that the right. The very largest eco sales team now has the latest technology as an offering that they can discuss and present to their customers.
Speaker Change: So you're basically saying that with.
Speaker Change: The product maturity.
Speaker Change: It would seem that this is the right time and now they're the Cobranded product has been launched is that is that correct. That's great attach.
Jim Deller: That's correct. Fantastic.
Jim Deller: And is there any sort of initial feedback you can give in terms of these teachings are working with Zico? I mean, it's, it's early days yet, but the I've been in the teachings, I was part of them and the development was met with excitement with the Zico sales team. We had a lot of discussion following the presentations, they seemed very enthusiastic. And then beyond that, even just looking at our team here working with Zico, for example, the marketing teams, the collaboration and the urgency. that they have put together the materials and got the website ready, as an example, has been very pleasing.
Speaker Change: Catastrophe and is there any sort of initial feedback you can give in terms of these teachings or working with FICO I mean, it's.
Speaker Change: Early days, yet, but the.
Speaker Change: Does it.
Speaker Change: I've been to the teachings up I was part of them and the rather develop was met with excitement.
Speaker Change: <unk> sales team, we had a lot of discussion following the presentations they see rates easier stick.
Speaker Change: Then beyond that even just looking at.
Speaker Change: It wasn't the Zika for for example, the marketing teams the.
Speaker Change: The collaboration and the agency.
Speaker Change: That they have put together the materials and.
Speaker Change: But the website ready as an example has been very pleasing so I'm.
Jim Deller: So I'm I'm very enthusiastic and excited about this development.
Speaker Change: I'm very enthusiastic and excited about just about the great development yet.
Matthew Selinger: Yeah, that's a great development, Jim.
Jim Deller: So also very recently, in terms of the process burner line, the it was announced that the the debut of the M series, you give a little background of what the M series is, maybe what it's designed for and what differentiates this from our called our traditional product line. Yes, thank you, Matt.
Speaker Change: So very recently in terms of the the process burner lie.
Speaker Change: It was announced that the the debut of the M series.
Speaker Change: Can you give a little background of what the M series is maybe what it's designed for.
Speaker Change: And what differentiates this from our call it our traditional product line.
Speaker Change: Yes, Thank you Matt so.
Jim Deller: So The I think before we get into the M series, it's probably worthwhile talking about the midstream market. So we talked a lot about the refining market, the midstream is really the gas processing and the transport part. of the Pet Scam Loop. business, there is a different style of heater and a different heater manufacturer that works. in this segment.
Speaker Change: The.
Speaker Change: I think before you get into the MSA is probably the worst well I'm talking about the on the midstream market. So.
Speaker Change: So we talked a lot about the refining market. The midstream is really the gas processing and transport part.
Speaker Change: All of the.
Speaker Change: Oh the petrochemical.
Business there is a.
Speaker Change: A different style of pizza and a different heat and manufacture the books.
Speaker Change: In the segment.
Jim Deller: We had the opportunity back in 2023, I believe the announcement went out in April 2023 to put a what was then a modified boiler burner into a midstream heater sold by a company called Tulsa Heats of Midstream here in Tulsa. And that heater was based down in a petrochemical company down on the US Gulf Coast. that burn around Wailunahita it met the low NOx emissions that was the reason for Clearsign Clearsign burn have been slated. Following that, we got a lot more engaged in the midstream industry. We sold all those two names you might recognize now of ExoFoam and DevCode.
Speaker Change: We had the opportunity back in 2023, I believe the announcement went out.
Speaker Change: For 2023 to put a.
Speaker Change: What was that a modified boiler bed into a midstream. He said so by a company called tells me. It's a midstream here in Tulsa and that he too is based on in a petrochemical.
Speaker Change: Petrochemical company down on the U S Gulf Coast.
Speaker Change: That has been around whether or not he to it met the low Nox emissions that was the reason for this on the cases.
Speaker Change: Place I'd rather be selected.
Speaker Change: Following that we got a lot more engaged in the midstream industry. We right. We sold the oldest two names you might recognize now or exit them and that's code.
Jim Deller: And we also recognize that this was a big opportunity for Clearsign, especially if we could develop a burner optimized for these midstream heat.
Speaker Change: We also recognize that this is a big opportunity to play a science, especially if we could develop paid.
Speaker Change: Fair enough.
Speaker Change: Optimized for these midstream ages.
Speaker Change: The but another part of the story as we.
Jim Deller: The another part of the story is we Hi, I'm Matthew Martin, Chief Technology Officer, Bank, late 2023. as part of our plan to Grow Our Capabilities and Grow Our Technology. And after Hi Matthew Martin, we invested in a Computer Modelling System. What that does is it one of the things that does is it allows us to test in a simulated fashion a great variety of different product types and product arrangements. And with that, we're able to completely reimagined the structure of the Clearsign burners. We've essentially kept the same mixing and chemistry that allows us to get the low NOx that we do, but we're able to completely rearrange the burner to come up with a very different shape that made it much more efficient to operate in the mystery of heat.
Matthew Martin: Hi, Matthew Martin, our Chief Technology Officer back late 'twenty, two 'twenty three.
Speaker Change: As part of our plan too.
Speaker Change: Grow our capabilities and garage ignore you didn't have to hi, Matthew Martin we invested in a.
Speaker Change: Computer modeling system.
Speaker Change: That does is it one of the things that does is it allows us to.
Speaker Change: Test in a simulated fashion a great variety of different.
Speaker Change: Pelletizing pellets arrangements.
Speaker Change: And.
Speaker Change: With that we were able to come.
Speaker Change: Completely re imagine the structure of the place I'm Budd is we essentially kept the same mixing in chemistry that allows us to get the loan marks that we do but where I was completely rearrange the banner to come up with a very different shape that made it much more efficient to operate in the midstream heater.
Jim Deller: To cut the story short, we modelled that in the computer, we optimised the design, created drawings from that, took it to manufacture and built that burner right out of the computer modelling, worked with Tulsi at Midstream to install that burner down in Texas Gulf Coast, and it just ran. It gave two BPM knocks in a much more efficient manner. It ran up and down It was a a great success in terms of a burner roller. It has been a very exciting development for us, for Toltes as midstream and for everyone that has seen it.
Speaker Change: Let's cut the story short we model that in the computer we optimized the design.
Craig: Craig joined from that took it to manufacture them build that right out of the computer modeling.
Speaker Change: With <unk> midstream to install up been up down in Texas Gulf Coast.
Speaker Change: Just Randy you gave.
Craig: Two.
Craig: Two ppm, Nox and a much more efficient manner. It ran up and down just you'd find it was a.
Craig: Our great success in terms of a pipeline of rollout it has been.
Craig: Not a very exciting development for us.
Craig: <unk> told you is midstream and for everyone on that.
Craig: I've seen it and then on the heels of that there was an order announced that create a second burner go into depth co process heaters, yes, very quickly after the results of that installation came out youll see.
Jim Deller: And then on the heels of that, there was an order announced, is that correct? A second burner going to Devco Process Heaters? Yes, very quickly after the results of that installation came out, you know, because we have an NDA, we showed that to Devco, they turned around and placed an order for one for one of their projects.
Craig: So we have an NDA, we showed that to desk or they turn around and place an order for one for one of their projects.
Jim Deller: So then you've been out talking with customers about this, this new product line and the efficiency savings, you know, can you give any kind of color of what what the market is, feedback or if there's been some proposals, things like that? Yes, I can. I mean, everywhere we've shown, shown this burner, it has, it's got really good reception. We've also been able to do that with Tulsi and Midstream. They've, they have obviously seen our burner in operation. The customers that buy the heaters are also the customers that buy our burners. We've actually been able to make joint presentations with them.
Craig: So then you've been out talking with customers about this this new product line and the efficiency savings can you give any kind of color of what what the market is feedback efficiency puzzles things like that.
Speaker Change: Yes, I can I mean everywhere, we shouldnt show them this better it has.
Speaker Change: Really good reception, we've also been able to do that with hopefully a midstream they've sale.
Speaker Change: So you see that I've been in operation the customers that buy the heaters are most of the customers that buy button. This week, we've actually been able to make joint presentations with them.
Jim Deller: Steve Rutherford has been brave. all received.
Speaker Change: The.
Speaker Change: So it has been great.
Jim Deller: And I don't, it's early days yet, I don't have any developments to announce right here. But based on the reception, we're very excited about what this can do. And the, you know, through these conversations, the scope of this midstream industry is, it's vast and varied. So it's a great opportunity for us to get into different regions and diversify ourself away from just the ultra low and ultra refining part of the industry.
Speaker Change: Well received them I don't it is early days you guys don't have any developments to announce right here, but based on the recession, but very excited about.
Speaker Change: What this can do and they go through these conversations the scope of this midstream industry is as fast as Barry So it's a great opportunity for us to get into different regions.
Speaker Change: Is that the supply yourself away from just the Ultralow Nox refining.
Speaker Change: The industry is it safe to say.
Jim Deller: Is it safe to say there's been a bit of buzz in the industry about this? I think that's fair, yes. Okay.
Speaker Change: There's been a buzz in the industry about this I think that's fair, yes, Okay, and then can you give any more color.
Jim Deller: And then can you give any more comment when we might foresee the future of this product line? I can.
Speaker Change: Foresee the future of this product line.
Speaker Change: I cannot.
Jim Deller: I really haven't talked about plans, so be aware this is not done yet. But the, right, I'm a technical guy. My background is understanding the way this burner works. I believe it has a potential to convert into a very good boiler burner. I think there's potential to modify into a refinery process heater burner for certain applications. Also, I believe that this burner getting two BPM NOx exceeds the requirements of many of the opportunities out in the market. Then we have the ability to take some of the components out, simplify the burner, still come up with what very good NOx in the industry, but come up with a great burner for a much broader segment of the market that doesn't need the super low NOx that the Fantastic.
Speaker Change: I'm really I'm talking about plans of Sophia where this is not done yet.
Speaker Change: But the right.
Speaker Change: Technical driver got a background with understanding the way to spend it works I believe it has a potential to.
Speaker Change: Ah convert into a very good point, but I think there's potential to modify into a refinery process heater burned for certain applications.
Speaker Change: Also I believe that this plan of getting to ppm Nox exceeds the requirements of many of the opportunities out in the market.
Speaker Change: We have the ability to take some of the components and simplify the burden it still come up with very good marks in the industry, but come up with a great but for a much broader segment of the market that doesn't need these super low Nox that particular place on technology does especially expanding up market into a much.
Speaker Change: Or commodity part of the industry, but still with a very high value because of the Knox and the efficiency that has been a deliberate sort of since you could do to it. So it's not as high performance. So, let's say someone doesn't need the Ferrari burners and you'd have a larger addressable market exactly yes, you're going back to a standard family car.
Jim Deller: Let's then go to kind of orders in the pipeline. And when I talk about orders in the pipeline, this is on a kind of our traditional process burner business. You know, can we talk, you refer to some of these, Jim, in terms of order going to the Gulf Coast.
Speaker Change: But the ASIC.
Speaker Change: Well, let's see what's really going to kind of orders in the pipeline and when you talk about what does the pipeline. This is kind of our traditional process burner business can we talk you refer to some of these gen in terms of that.
Speaker Change: We're going to the Gulf Coast could you kind of overview of what we're seeing in terms of our current process.
Jim Deller: Could you kind of give an overview of what we're seeing in terms of our current process burner pipeline? Yeah, we can. And I think it's important because ultimately, this is the backbone of revenue and what we're looking at in Sweden. Well, we have talked, we've got 20 burners out in California that have shipped. They're waiting to install. Those are scheduled to install and start up early in Q3 of this year. We previously announced as well there's a four heater order for a Fortune 500 chemical company down on the Texas Gulf Coast. Those burners are currently in the testing phase soon to be demonstrated to the customer.
Speaker Change: Our pipeline, yes, we can and I think it's important because it ultimately this is the backbone of revenue.
Speaker Change: Looking back so we've well.
Speaker Change: Well, we have talked about 20 billion is out in California that <expletive>, they're waiting to install those are scheduled to store at stall and startup early in Q3 of this year.
Speaker Change: We are pleased to announce as well, there's a a full heater order or a 14 500 cabinets coming down on the Texas Gulf Coast that has been is all currently in the testing phase soon to be demonstrates to the customer.
Jim Deller: They are also scheduled for fabrication and also scheduled for installation as startup early in the third quarter this year. So that's going to be a busy period. Pen Energy continues to be a great customer of ours.
Speaker Change: They are also scheduled for fabrication.
Speaker Change: Also scheduled for installation and startup early in the third quarter. This year. So this will be a busy period.
Speaker Change: And energy continues to be a great customer of ours. They have some pieces of debt that we all.
Jim Deller: They have some features there that we are hoping to support them and upgrade the burners in the near future, but we do not have those orders yet, I want to be clear, but that is a project that we are talking about. And there's other work with Current Energy and there's some other projects we're talking about.
Speaker Change: Hoping to.
Speaker Change: Support them and.
Speaker Change: By upgrading the burden is in the near future that we do not have those orders yet want to be clear, but that is a project that we all hope.
Speaker Change: Okay.
Speaker Change: And there's other.
Speaker Change: Other work with energy.
Speaker Change: Some of that Prady was talking about I think.
Jim Deller: One thing I know a bit more forward looking is we are starting to get involved in the initiating technology discussions for some big like mainstream global refinery heater conversion. So this is early days, but at the start of a project, there's normally an assessment of the technologies available, a chance to present them right at the scoping or the feed phase of the studies, we have not been involved at that stage before. It's typically a 18 month to two year or even longer process. Unknown Executive, Brent Hinds, Colin Deller, Unknown Executive, Brent Hinds, Unknown Executive, These global customers are understanding what our technology can do for them and that we've got the credibility to be included in those conversations, I think is very significant and from my perspective, very pleasing.
Speaker Change: One thing of note a bit more forward looking is we are starting to get involved in.
Speaker Change: The initiating technology discussions for some.
Speaker Change: Like mainstream global refinery heater condition. So this is early days, but at the start of a project is normally an assessment of the technologies available.
Speaker Change: To present them, Brian at the scoping all the feed phase of the studies, we have not been involved at this stage control it.
Speaker Change: It's typically a 18 months to two years or even longer process.
Speaker Change: To those projects get through too.
Speaker Change: Actual orders, but it's very important to get engaged.
Speaker Change: And the fact that we're being asked to be included and.
Speaker Change: But these are global customers are understanding what our technology can do for them and that we've got the credibility to be included in those conversations I think is very significant.
Speaker Change: My perspective very pleasing.
Jim Deller: That's great to hear.
Speaker Change: That's great to hear let's shift to boiler burners now I think early last year, there was kind of speed.
Jim Deller: Let's shift to boiler burners now. I think, you know, early last year, there was kind of a spate of orders in the boiler burner sector, and then followed by the ICF report, which highlighted the efficiency of the boiler burners. But since then, it's been a bit quiet. Can you give a little color what's going on, what you're seeing in the boiler burner market? I can and I don't have a lot of detail. We've obviously tracked and dug into this and the general information we're getting is just that. market has been slow, at least the past six months, especially in California, there's just not been Much activity.
Speaker Change: <unk> in a boiler burner.
Speaker Change: Sector, and then followed by it and the ICF report, which highlight the efficiency of the boiler burners, but since then it's been a bit quiet.
Speaker Change: Can you give a little color on what's going on what you're seeing at both of our market.
Speaker Change: I can I'm, sorry, I don't have a lot of detail, we've obviously, attracting and dug into this and the general information. We're getting is just that.
Speaker Change: Market has been slow at least the past six months.
Speaker Change: Especially in California, that's just not beaten.
Speaker Change: Much activity.
Jim Deller: I think the good news is the last few weeks we've started to see an uptick in inquiries and it sounds like there are some projects which are being talked about again, so that's very encouraging.
Speaker Change: I think the good news is the last few weeks, we started to see an uptick in inquiries and sounds like they're all OSM projects, which are being talked about again so.
Speaker Change: So that's very encouraging.
Speaker Change: It also just while were talking to boys up I want to note that we did announced the startup of our 200 horsepower to five ppm Nox burner for a recycling plant up in Bakersfield.
Jim Deller: Also, just while we're talking about boilers, I want to note that we did announce the start up of our 1,200 horsepower, 2.5 ppm NOx burner for a recycling plant up in Bakersfield. That was significant. And that, I believe that burner is unique in that performance level, especially in that size range. And getting that done and passing the performance test was a big milestone for us.
Speaker Change: That was significant that I believe that batteries is unique in that performance level of especially in that size range.
Speaker Change: And getting that done and passed them almost test was a big milestone for us.
Jim Deller: Clearsign. I think it's worth noting that in addition to that, although it's technically in the midstream sector. We did sell and start up our biggest burner ever with Devco in a midstream heater down on the U.S. Gulf Coast. But that burner was actually a boiler burner. We were just able to fit it into the midstream heater to meet the specific needs of that customer. We now have boiler burners running from a smaller size up to, I think, about 90 million BTU, which is a very large-sized boiler burner. Great. So we've been able to diversify within kind of our boiler burner product line itself just by multiple sizes, so we can address multiple markets.
Speaker Change: Clay aside.
Speaker Change: It's worth noting that in addition to that although it's in the tens in the midstream sector.
Speaker Change: We did sell in startup I think it's been ever with desk co and a midstream needs. It down on the U S Gulf coast, but that bedroom is actually a a boiler burner, we just figured into the midstream needs to meet the specific needs of that customer. We now have you or the bonus running muscle a smaller size.
Speaker Change: <unk> I think about 19 million Btu is a very large size boiler burner, great. So we've been able to diversify within it.
Speaker Change: Our boiler burner product line itself just by multiple sizes. So we can address multiple markets is that correct I think that's why at least 60 we.
Jim Deller: Is that correct? I think that's right. We filled out the range from the very small commercial boilers up to almost some of the biggest applications you will see. Okay. Great to hear.
Speaker Change: We filled out the range from our library.
Speaker Change: Very small commercial boilers up to almost some of the biggest application juicy okay, great to hear.
Jim Deller: So I'm going to shift here again. We most recently heard about two product lines that we haven't heard from in a while, those being Flares and then Sensor. So let's take the former there. There was a recently announced Flare order that we put out. If you could give a little color on that and maybe talk about that order, and then we'll talk more about what we're seeing in that sector. Because in the quote you put in that release, you're seeing kind of more activity and interest. So we can... Signed both of those. We are.
Speaker Change: So I'm going to shift here again, we most recently heard about two product lines that we haven't heard from in a while those being flares and N sensor. So let's take the former there.
Speaker Change: There was a recently announced flare order.
Speaker Change: That we that we put out if you could give a little color on that and maybe talk about that order and then we'll talk more about what we're seeing in that sector because in the core of what you put in that lease and you are seeing kind of more activity and interest so we could size.
Speaker Change: Both of those well.
Jim Deller: And so generally for anyone not familiar with what a flare is, a flare is basically a waste gas disposal device. It has a burner inside it to burn the gas to carbon dioxide and water. And the flares that we sell, that burner or flame part is enclosed within a large cylindrical vessel that can typically be 30 feet tall, maybe eight to 10 feet wide, somewhere of that size, they vary in size, but that's the general science equipment. So the order that we have recently made a couple of announcements on was actually a flare sold by a different company.
Speaker Change: So generally for anyone not familiar with what a flurry of players basically a waste gas disposal device. It has a a bedroom inside at two other than the gas to come outside of water.
Speaker Change: And the players that we sell.
Speaker Change: Better flame part is enclosed within a large cylindrical vessels that can typically be.
Speaker Change: 30 feet tool, maybe eight to 10 feet wide summer of that size they vary in size, but that's the.
Speaker Change: General size of the equipment.
Speaker Change: So the order that we have recently made a couple of announcements on was actually a flare sold by a different company. It didn't work it did not meet emission requirements and the customer came to us to help out.
Jim Deller: It didn't work, it did not meet the admission requirements. And the customer came to us to help out. Now, we can do that. We have the technology. The first order was for engineering. We completed the engineering and demonstrated to the customer how we could solve this problem. He turned around and placed the fabrication order, which are now in the process of completing. So just right to put some numbers to this because it's not a standard burden. All in all, this project will be about $250,000. For Clearsign, it will enable us to take our technology, put it into somebody else's flare body.
Speaker Change: We can do that we have the technology. The first order was for engineering, we completed the engineering and demonstrate that the customer how they can solve this problem he turned around the place the fabrication order.
Speaker Change: Which are now in the process of completing.
Speaker Change: So I just put some numbers to this because notwithstanding this.
Speaker Change: All in all this partially about $250000.
Speaker Change: Fourthly assign it will enable us to take our technology put it into somebody else's play a body.
Speaker Change: And <unk>.
Jim Deller: show this customer what we can do and give them a reference in the industry. But another it's another demonstration that we're showing our technology can provide advanced solutions. It is a great demonstration.
Speaker Change: Sure this customer what we can do and give them a reference.
Speaker Change: The industry.
Speaker Change: So it's another it's another demonstration that our technology can provide advanced solutions.
Speaker Change: It is a great demonstration and its installation issue, where they already what we call mentioned the name, but the installation of the brake key key customer up in Northern California, and let me dive into that second part of the question Ben.
Jim Deller: And this installation actually was a very, we can't mention the name, but the installation very key, key customer up in Northern California. And let me dive into that second part of the question, then, what do you, you know, you kind of kind of infer a bit of a resurgence or re-interest in the sector? Can you kind of give a call to what we're seeing? I can, so. you know, the We're starting to see a need for low-cost flares, which is not traditional in the industry, but it's starting to be required. with our. intellectual property and the capabilities we have, we can also develop a burner element of a flare that's capable of burning some very hard to burn waste gases.
Speaker Change: You got to kind of infer a bit of a resurgence of re interest in the sector could you kind of gift card what we're seeing.
I can.
Speaker Change: Yeah.
Speaker Change: The.
Speaker Change: We're starting to see a need for low Nox players, which is not traditional in the industry, but it's starting to be required.
Speaker Change: Without <unk>.
Speaker Change: Intellectual property with the capabilities, we have we can also.
Speaker Change: Develop a.
Speaker Change: The element of a flare.
Speaker Change: That's capable of burning some very hot band.
<unk> gases.
Jim Deller: Typically within the industry, the operators will be required to blend some natural gas into those waste gases to enable them to burn completely. Of course, as this is a waste disposal system, they're just buying gas to burn it, which gets to be very expensive. we can burn these gases. In some cases with minimal and often with no supplemental gas that basically allows us to meet NOx emissions and to save the clients. lot of money. So we're starting to see requests and opportunities for this part of the fair market. But back to the overlying theme of what we're doing to grow Clearsign and look into the future.
Speaker Change: Typically within the industry.
Speaker Change: The the operators will be required to plan and some natural gas into those waste gases to enable them to bank completely of course as it is a waste disposal system, they just buying gas to burn it.
Speaker Change: Gets to be very expensive.
Speaker Change: We can.
Speaker Change: These gases.
Speaker Change: In some cases with minimal and often with no supplemental gas that basically allows us to meet Nox emissions and to say at the clients.
Five months, we're starting to see a request and opportunities for.
Speaker Change: All of the freight market.
Speaker Change: But back to the overlying theme of what we're doing to grow a clear sign of looking to the future.
Jim Deller: having that special burner technology. Allows us to not only sell the burner, but as it's part of a much bigger system, to sell the rest of the system and the flare structure with it, or in the case of an oxidized or thermal oxidizer that might be a horizontal vessel, it's the same premise that we can put our burner inside that vessel, but then Clearsign can sell a high value system rather than just the burner element. From a commercial perspective, that takes a $100,000 or $200,000 burner sale and turns it into a system project that could be valued between $600,000 and $1.2 million a piece.
Speaker Change: Having that special better technology.
Speaker Change: Allows us to not only sell the better but as it is part of a much bigger system to sell the rest of the system and the flash structure with it.
Speaker Change: In the case of a multi sized or similar size of that might be a horizontal vessel. It's the same premise that we can put up better inside that vessel, but they can place I can sell a a high value system, rather than just the burner element.
Speaker Change: From a commercial perspective that takes 100000 or $200000 better sale and turns it into a system projects that can be valued at between 600000 ballpark $2 million a piece of it it allows us to greatly expand.
Jim Deller: So it allows us to greatly expand our scope, leveraging our very special burner technology. So that's an exciting development. I mean, so you're talking basically from us potentially moving from selling just components to larger systems. That's right.
Speaker Change: Our scope leveraging a very special burner technology. So that's an exciting development I mean, so you're talking basically from a potentially moving from selling just components to larger systems, that's right and I think I'm, probably going to be very upfront that we have not sold any of these yet.
Jim Deller: And I think I'm for everyone to be very frankly, we have not sold any of these yet. We have engineered these systems, we do have proposals out for this type of technology, and we are engaged in conversations, but they are They're only in that negotiation phase. I don't want to mislead anyone.
Speaker Change: We have engineered these systems, we do have proposals out for this type of technology and we are engaged in conversations but they all.
Speaker Change: Only in that negotiation phase, so I don't want to mislead anyone.
Matthew Selinger: Thanks for watching.
Speaker Change: Having all expecting something to come in the next week.
It's an exciting opportunity.
Speaker Change: So we that we recently saw that there were four Christian I sensors placed at a supermajor refinery. So again another product we haven't heard from in a while could you give a little background on what this trial did.
Jim Deller: So then we recently saw that there were four Clearsign Eye sensors placed at a super major refinery. So again, another product we haven't heard from in a while.
Jim Deller: Could you give a little background on what on this trial? We know that we needed a trial. And then let's dive into the sensors. Yeah, and trials fair. So this, we've talked about sensors in the past, we have not talked about them for several calls. So the announcement was a, in essence of a free sample to the customer, but we believe it's significant. First of all, for a refinery even to install even free equipment is a big undertaking on their part. They have to shut down, they have to do engineering, they have to reinstall cabling and control equipment.
Speaker Change: Ah trial.
Speaker Change: Let's dive into the sensors and trials fare. So this we've talked about in the past we have not talked about in several calls.
Speaker Change: So the but the announcement was a no.
Speaker Change: The essence of a free sample to the customer, but we believe it's significant.
Speaker Change: For our refinery even too.
Speaker Change: Install even free equipment is a big undertaking on therefore, they have to shut down they have to do engineering that fit right in store tabling them and control equipment.
Jim Deller: We have been refining the senses. over time, even though we haven't been talking about it and also talking to customers, which led to this opportunity now to install it.
Speaker Change: We have been refining with sensors.
Speaker Change: Over time, even though we haven't been talking about and also talking to <unk>.
Speaker Change: Customers, which led to this opportunity now to install it.
Jim Deller: But if I can, let's take I'd like to just fill in the gaps and explain what these sensors do for anyone. not familiar with because they're a very different product to our burner products. So in a refinery heater, the burners provide a big flameless heated When you turn the gas on to those burners, you've got to have a small flame there to light that gas so that the flame starts that small burn, that small flame comes with a device called a pilot. And to indicate to the operator that it's safe to turn the gas on, you will typically have a sensor of some type to prove or to confirm that that flame is in place.
Speaker Change: If I can let's say I'd like to.
Speaker Change: Right.
Speaker Change: Filling the gaps and explain what the census do for anyone.
Speaker Change: Not familiar with because they are a very different product.
Speaker Change: Better products.
Speaker Change: So in a refinery heater the bonus provide a a big flame mosquito pizza.
Speaker Change: When you turn on the gas on to those bonus you've got to have a small flame that's why that guests. So that the same stops that small but that small fleet comes with a device with a pilot.
Speaker Change: And to indicate to the operator, but it's safe to turn on the gas on <unk>.
Speaker Change: Typically have a center of some type to proof or to confirm that that plan is in place now so often taking placement of control system.
Jim Deller: Now, this is often taking place from the control system, but it's that sensor that goes on the pilot and confirms the presence of a flame that we are providing. Alright, there are well established technologies in the industry that do this. There's some optical sensors that look up and will see the pilot flame and any flames beyond it. So they're, they're effective, but they're not good at specifically indicating just the pilot plane. And there's a very commonly used piece of equipment called a flame rod that mounts to the burner pilot. The challenge with those is that the end of the flame rod, based on its name, actually pushes into the flame, they do burn up and they have frequent maintenance problems, which either leaves a client without any flame mitigation or requires of very frequent maintenance, which is.
Speaker Change: But it's that sensor that goes on the pilot and confirms the presence of a flame.
Speaker Change: But we are providing.
Speaker Change: Alright.
Speaker Change: Well established technologies in the industry that due to this there is some optical sensors that look up and see the pilot flame in any flames beyond it so that they are effective but they're not good at.
Speaker Change: Specifically, indicating just the pilot flame.
Speaker Change: And there is a very commonly used piece of equipment called a flame brought that mounts to the bone a pilot.
Speaker Change: The challenge with those is that the end of the famed raws isolates name actually pushes into the flame they do button up and they have a frequent maintenance problems, which.
Speaker Change: That leaves a client without any flame indication or requires.
Speaker Change: Oh, very frequent maintenance, which is.
Jim Deller: Costly for the customers and that maintenance need is actually what drives the excitement when we've talked about our sensor to clients because the difference with our sensor is it does mount to the pilot so it is discreet and identifies only the pilot flame. But the sensing head of the sensor is not in the flame. It sits about an inch below the flame in the cool zone. So it's expected to be a much more durable and reliable piece of equipment.
Speaker Change: Costly for customers.
Speaker Change: That maintenance need is actually what drives the assignment to what we've talked about how sensitive the clients because of difference without a sensor is it doesn't match. The pilot so is discrete and identifies the pilot flame.
Speaker Change: But the sensing head of the sensor is not in the flame. It sits about an inch below the flame in the quarter and so it is expected to be a much more durable and reliable piece of equipment. Okay.
Jim Deller: OK, well, let's talk about the market on this numbers here.
The market on the some numbers here.
Speaker Change: Given what is the addressable market do you believe in terms of the sensors, maybe touch on me our sales price and what are the what is the typical order look like yes. So this is not only a different technology, it's a different.
Jim Deller: Jim, what is the addressable market, do you believe, in terms of these sensors? Maybe touch on maybe our sales price and what is a what is a typical order look like? Yeah, so this is not only a different technology. It's a different project from a commercial perspective. So the. But one thing I really like about the census is it is not applicable to only low-ox regions or only certain regions. These sensors are applicable to every refinery burnout in the world. So the scope of where this can be applied is huge. Now, to be clear, not every burner has a pilot, and certainly not every burner with a pilot has a sensor.
Speaker Change: Different project from a commercial perspective, so the.
Speaker Change: But one thing I really like about the census is it is not.
Speaker Change: Applicable to only low loss regions are only certain regions. These sensor applicable to.
Speaker Change: Every refinery burner in the world.
Speaker Change: So the disc.
Speaker Change: The scope of where this can get by issues now not every to be clear not every better has a pilot and certainly not every banner with a pilot has a sensor.
Jim Deller: But there is an awful lot of them do, and this makes it a very big opportunity for Clearsign. The sensors are a relatively small device, they're going to be a out of the box product for us. They're all standardized, they'll sell for somewhere in the region of $4,000 a piece. But one of the other beauties of this product line when it's rolling is we expect them to sell in multiples into a heater supply all at once. There will be ones and threes and fives, but I expect commonly these orders to roll in the right 10s, 20s up to 50 cents per order.
Speaker Change: But there is an awful lot of them do and this makes a very big opportunity for glass line.
<unk> sense, sorry, a relatively small device they going to be a out of the box product for us that all standardized they'll sell for <unk>.
Speaker Change: Somewhere in the range of about $4000 apiece.
Speaker Change: But one of the beauties of this product line, whether it's rolling is we expect them to sell in multiples in July.
Speaker Change: A key to supply all of the ones.
Speaker Change: There will be ones and threes and fives, but I expect commonly these orders to roll in in the tens twenties up to 50.
Speaker Change: 50, <unk> per order. So I think there is a it's a different business model for us, but I think.
Jim Deller: So I think there is a, it's a different business model for us, but I think it's got to take off, but it could be a very worthwhile.
Speaker Change: It's got to take off but it could be a very worthwhile.
Jim Deller: product line force, which is why we've been working on it for and kept it going over the years. That's very interesting. So it's a volume off the shelf, and another technology solution being sold to the same customer base that are addressable customer base. Yes, I think going to the right, the objective of diversification, broadly Clearsign, it's a very different part of the industry. It's not tied to regulations, it's not tied to decarbonization. It will smooth out our revenue flow, I think, just gives us another a separate line of business while still playing to a core customer base and core technology strengths.
Speaker Change: Part of our enforced which is why we'd be working on it for and kept it going over the years.
Speaker Change: I actually thought the volume off the shelf and another technology solution being sold to the same customer base that are addressable customer base, yes, So I think going to the right. The objective of diversification and broadening clear sign it's a very different part of the industry is not tied to regulations, it's not tied to decarbonization.
Speaker Change: It will smooth out revenue flow I think is just gives us another.
Speaker Change: A separate line of business, while still playing to our core customer base.
Speaker Change: Core technology strengths and just for clarity to this is a clear sign of product not in yesterday and Mary on project narrowed to mentioned in the past, but this is a project that's correct yes.
Jim Deller: Right.
Jim Deller: And just for clarity too, this is a Clearsign product, right? Not necessarily a Narion project. Narion has been mentioned in the past, but this is a Clearsign project. That's correct. The sensor is manufactured and sold as a Clearsign product. Great.
Speaker Change: <unk> sensor is.
Speaker Change: Manufactured and sold as a as a class I would call it great.
Jim Deller: I'm going to shift here, Jim, and maybe address some macros. A lot of companies are talking about some of the macros out there. One, obviously in terms of supply chain. One, a lot of companies are focused on our tariffs. So, you know, are we seeing any effect of tariffs or, you know, in our current, you know, project pipeline or proposals, anything like that? We are in where it shows up is in the cost of goods. Clearsign burners are built largely out of stainless steel materials, that material price is affected. So we are Seeing increased pricing from our vendors now we can also put and have put language in our proposals to allow us to accommodate that to make price adjustments to the extent that we can.
Speaker Change: I'm going to shift here, Jamie and maybe address some macros you know a lot of companies are talking about.
Speaker Change: Some of the macros out there one obviously.
Speaker Change: <unk> chain.
Speaker Change: One a lot of companies are focused on our tariff. So are we seeing any effect.
Speaker Change: The effect of tariffs.
Speaker Change: Current project.
Speaker Change: Project pipeline or proposals or anything like that.
Speaker Change: We are I mean, where it shows up is in the other cost of goods cliffs I'm Ben is all <unk>.
Speaker Change: Largely out of stainless steel materials that material price.
Speaker Change: Is affected so we all.
Speaker Change: Seeing increased pricing from our vendors now we can also put in have put language in our proposals too.
Speaker Change: Allow us to accommodate that to make price adjustments to the extent.
Speaker Change: That we can.
Jim Deller: So we're aware of it, we're working around it, but I think it's fair for everyone to be aware that we are seeing increased pricing at present. And our event is all attributed to the Terrans.
Speaker Change: So we're.
Speaker Change: We're aware of it were working around it but I think it's fair for everyone to be aware that we are.
Speaker Change: We are seeing increased pricing power.
Speaker Change: Present.
Speaker Change: Our vendors all contributing to the terrorists okay.
Jim Deller: Okay, so, you know, wrapping up the call, you know, are there any main takeaways you'd like to leave with us in summary? There are I mean, we've tried to stress here and bring out is the what we're trying to do to grow the Clearsign business and set us up for expansion going forward. So leveraging our sales channels, certainly pushing hard on the products we've got is important. And I think on that note, we're looking for benchmarks, just going forward as well and look for. is on the inside looking for sales leads through the Zco sales team.
Speaker Change: And wrapping up the call you know are there any mean takeaways I'd like to leave with us kind of in summary.
Speaker Change: They're all I mean, we've so we tried to stress here and bring out is the what we're trying to do to grow the <unk> business and <unk>.
Speaker Change: Set us up for expansion going forward.
Speaker Change: So by leveraging our sales channels, certainly pushing hard on the products with golf.
Speaker Change: It's important and I think on that note, but looking at the benchmark just going forward is going to look for.
Speaker Change: Is on the inside looking for sales leads through the Zika sales team.
Jim Deller: I think from as an investor, I would certainly be looking out or recognizing the importance of a burner sale resulting from a Zco lead will be a very big first milestone. on that front. I know I've said it, but I'm very excited about the M1 burners, certainly look out for sales in the midstream industry and growth in the midstream industry. I would also stress the importance of a slightly de-specced or de-tuned burden going out into the commodity market and expanding our scope into that much larger portion of the industry. Also the development of that burner into boiler burner applications, potentially refinery burner applications.
Speaker Change: Form as an investor I would certainly be looking out all recognize the importance of that.
Speaker Change: Sales, resulting from a Z co lead will be a very big first milestone.
Speaker Change: On that front.
Speaker Change: I know I've said, it but I'm very excited about the AMOLED business.
Speaker Change: So when you look out for sales in the midstream industry in high growth in the midstream industry.
Speaker Change: I would also like.
Speaker Change: Dress, what things the importance of a slightly despite or teaching the burden of going out into the commodity market and expanding our scope into that much larger.
Speaker Change: Portion of the industry.
Also the development of that burden into boiler burner applications potentially refinery burner applications.
Speaker Change: Yes.
Speaker Change: My personal.
Jim Deller: Right now we've sold one and got one burner operation, but I am very excited about the potential of the M series burner. I think, you know, the concept of the systems projects leveraging our flaring technology and the low BTU gas technology into either an oxidizer or a flare and the sale of some of those bigger systems and showing industry that Clearsign can deliver that type of technology, what we can do. I mean, given the scope of those projects from a revenue perspective, I think that would be very significant for Clearsign, so look out for that.
Speaker Change: Right now we've sold one they got one been operational and very excited about the potential of all the M series bed.
Speaker Change: Okay.
Speaker Change: I mean.
Speaker Change: The concept.
Speaker Change: The concept of the systems projects, leveraging our flaring technology in the low btu gas technology into either an oxidizer or flat.
Speaker Change: The sale of some of those bigger systems and showing the industry that <unk> can deliver that type of technology and what we can do.
Speaker Change: I mean, given the scope of those projects from a.
Speaker Change: Revenue perspective, I think that would be very significant players. So I'd say look out for that and then finally, we've talked about the census, and we already have another a request for quotes.
Jim Deller: And then finally, we've talked about the census, and we already have another request for quotes. All centers actually from the same refinery or the same company into a different refinery. We've also been, we're also talking to another global refiner who is interested in that technology because we haven't found any. So I think there's real potential there for that Clearsign iSensor. We're also looking for that to roll out and scale up.
Speaker Change: All centers actually from the same refinery all at the same company into a different refinery.
Speaker Change: We've also we're also talking to another global refinement, who is interested in that technology just haven't funny.
Speaker Change: The real potential there for that.
Speaker Change: Based on my sense of it.
Speaker Change: What are you looking for that to rollout Scaleup alright, so in summary.
Jim Deller: All right. So in summary, we can look forward to sales from the diversified product line. We can look at diversified within the product line, continuing to, is that correct? Leveraging the current sales channels we've announced, and then potentially expanding from component to larger systems. I think it's fair. Expanding the scope, expanding the markets, it's broadening Clearsign. a strong combustion and industry knowledge. We truly have some very talented designers and engineers here within the company. It's leveraging that core competency and expanding our business while being true to the strengths to make sure that what we deliver are truly high value and products that we can.
Speaker Change: You can look forward to sales from the diversified product line, we can look at diversifying within the product line continuing to is that correct.
Speaker Change: During the current sales channels, we've announced.
I think potentially expanding from components to larger systems.
Speaker Change: I think that's fascinating and expanding the scope expand in the markets.
Speaker Change: It's broadening clear something we have a.
Speaker Change: A strong buy.
Speaker Change: Combustion and industry knowledge, we truly have some very talented designers and engineers here within the company is leveraging that Conversely, unexplained yacht business, while being true to the strengths to make sure that we deliver a truly.
Speaker Change: Truly high value and products that we can.
Jim Deller: make a profit from.
Speaker Change: Make a profit from Oh, great tier so that's all the questions I have prepared for this so at this point I would like to turn it back to the operator to open up for a question and answer session. We have also had some questions sent in ahead of time, which I was curious as well, but with that operator. Please.
Jim Deller: Oh, great to hear.
Matthew Selinger: So that's all the questions I have prepared for this.
Operator: So at this point, I would like to turn it back to the operator to open up for a question and answer session. We have also had some questions sent in ahead of time, which I will curate as well. But with that, operator, please open up the lines for questions and we'll start with those.
Speaker Change: Please open up the lines for questions and well, we'll start with us.
Speaker Change: 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 the star key, then 1, on your touch-tone phone. If you are using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press star, then 2.
Speaker Change: I ask a question you May press the Star Key then one on your Touchtone phone. If you are using a speakerphone. Please pick up your handset before pressing any keys to withdraw your question. Please press Star then two.
Operator: At this time, we will pause momentarily to assemble our roster.
Speaker Change: At this time, we will pause momentarily to assemble our roster.
Matthew Selinger: Hey, operator, operator, while we wait, I'll go ahead and read one of the questions that was sent in ahead of time, if that works. Great.
Speaker Change: The operator operating while we wait I'll go ahead and read.
Speaker Change: One of the questions that were sent in ahead of time if that works.
Speaker Change: Sure absolutely.
Speaker Change: Great Jim in regards to proposals we've heard about proposals on previous calls.
Jim Deller: Jim, in regards to proposals, we've heard about proposals on previous calls, you know, what is different now than, let's say, one or two years ago, because of the proposals you're seeing and feel like? just say A fair question. We've talked about several themes in this call today. I've tried to be upfront, the Some of the product lines, especially the system products and the reference to the engagement we have with the major refining projects, especially at the early feed stage. I've included those two.
Speaker Change: What is different now than let's say, one or two years ago due to the proposals youre seeing and feel that.
Speaker Change: Yeah.
Speaker Change: So I'll say.
Speaker Change: It's a fair question.
Speaker Change: So we've talked about several themes in this call today.
Speaker Change: I've tried to be upfront.
Speaker Change: But some of the product lines, especially the system products and the reference to brought the engagement we have with the major refining projects, especially at the Ot feed stage.
Speaker Change: I've included those too.
Jim Deller: but help describe work that we're doing internally within Clearsign on a strategic basis to grow our business for the future. And I said during the call, I don't want to mislead anyone. to expect that those orders are going to turn very quickly, or those those proposals will turn very quickly into orders. We do have obviously active sensor quotes that I believe have potential return into orders.
Speaker Change: Help describe.
Speaker Change: Work that we're doing internally with a clear sign on a strategic basis to grow our business for the future.
During the call I don't want to mislead anyone.
Speaker Change: So expect that those orders are going to turn very quickly. Although those proposals will turn very quickly into orders.
Speaker Change: We do have obviously active sensor quotes that I believe are potentially turn into orders. We do have the midstream orders. We do have some process work that has potential to turn into orders but.
Matthew Selinger: We do have the the midstream orders, we do have some process burner work that has potential to turn into orders, but I've I have tried to be clear where I've referenced the proposals and the work we're doing as an illustration of our strategic plans and the changes we are constantly developing with the company to grow the potential of Clearsign as separate from the local, the tangible proposals that we are actively discussing as something that we expect to be able to bring in to the company in the foreseeable future. Great. Thank you. Operator, please go ahead and poll again.
Speaker Change: I have tried to be clear, we're I've referenced the proposals on and what we're doing.
Speaker Change: As an illustration of our strategic plans and the changes we are constantly developing with the company to grow the potential play assigned.
Speaker Change: As separate from the.
Speaker Change: Well I'll call the tangible.
Speaker Change: Our proposals that we are actively discussing as something that we expect to be able to bring in to the company in the foreseeable future.
Speaker Change: Great.
Speaker Change: Operator. Please go ahead and poll again and I've got a couple of others, but if you want to give instructions for <unk>.
Operator: I've got a couple others, but if you want to give instructions for polling, and then I'll segue into another question. Sure, no problem. Ladies and gentlemen, as a reminder, should you have any questions, please press the star key followed by the number one. Pause one moment for questions. Great.
Speaker Change: For polling and then I'll segue into another question.
Speaker Change: Sure no problem, ladies and gentlemen, How's. The reminder, should you have any questions. Please press the star key followed.
Speaker Change: Followed by the number one.
Osborn: Osborn up for questions.
Speaker Change: Great.
Jim Deller: Jim, here's another question here. There's been some some discussion about kind of less clean air initiatives, and even some slowing of hydrogen projects. Do you feel at all this puts, for instance, our hydrogen burner, you know, at a market risk? It's, yeah, I mean, obviously, there's been a common a topic in the news. But I think it's, it's good to be clear the hydrogen burner and the project is titled for 100% hydrogen. And that was the driver behind the funding and the DOE awards that we have won and fund the development of this burner. The utility of the burner goes well beyond that.
Speaker Change: Jim Here's another question here.
Speaker Change: Some discussion about kind of less clean air initiatives and even some slowing of hydrogen projects do you feel at all this puts.
Speaker Change: For instance, our hydrogen burner.
Speaker Change: At a market risk.
Speaker Change: It's yes, I mean, obviously, there's been a column.
Speaker Change: Our topic in the news.
Speaker Change: But I think it's it's good to be clear the Hudson burner and the project is titled for 100% hydrogen and that was the driver behind the funding and the awards that we have won and funded the development of this burner.
Speaker Change: But the utility of it but it goes well beyond that.
Jim Deller: The refining customers have a very wide range of gases in their fuel gas. And those commonly swing up to at least 80% or higher. So the development of this burner is to be capable of fuels ranging from a pure natural gas up to 100% hydrogen. What that really means is this is a very fuel flexible burner that is being designed to be robust within the industry and suitable for installation in refineries, no matter what their fuel gas blend. So I am confident that this is a very practical and useful burner going into the future. Really without regard to the progress or potential timeline of any strictly hydrogen fuelled applications.
Speaker Change: Our refining customers have a very wide range of gases fuel gas.
Speaker Change: And those commonly swing up to at least 80% or higher.
Speaker Change: So the development of this burner is to be capable all fuels ranging from a pure natural gas up to 100% hydrogen.
Speaker Change: That really means is this is a very fuel flexible banner that is being designed to be robust within the industry and suitable for installation and refineries no matter what their fuel gas blend.
Speaker Change: I am confident that this is a very practical and useful burn and going into the future.
Speaker Change: Without regard to the program or potential timeline of any strictly hygiene fueled applications.
Speaker Change: Okay.
Operator: Operator, please go ahead and turn over to to any caller questions. Sure.
Speaker Change: Operator, Please go ahead and turn it over to to.
Speaker Change: Any color questions.
Speaker Change: Okay sure. Your first call. Our question is from Robert <unk>.
Robert Keck: Your first caller question is from Robert Keck, from Los Colinas Capital Management. Please go Hello, this is Bob. Can you hear me? Hi, Bob. Yes, good afternoon. Good afternoon.
Speaker Change: Las Colinas capital management. Please go ahead.
Speaker Change: Hello. This is Bob can you hear me.
Hi, Bob Yes, good afternoon.
Speaker Change: Good afternoon.
Robert Keck: Yeah, I was going to bring up the point of The fact that came into the company. there was a great. Well, from 2021. According to your efforts, we had an innovative product, and developed by 2021.
Speaker Change: I was going to bring up the point of.
Speaker Change: The fact that.
When you came into the company.
Speaker Change: Sure.
Speaker Change: There was a great.
Speaker Change: Success in the innovation that was made and then as you mentioned it took some time to be able to develop those into an actual product.
Speaker Change: So from 2021.
Speaker Change: According to your efforts.
Speaker Change: We had an innovative product and.
Speaker Change: Developed by 2021, and so now we are many years into this and.
Robert Keck: And so now we're, you know, many years into this, and The thing that I that I want to bring forth is that what you've explained is there's really three things that the innovation yields. One of those was the reduced maintenance cost on the Radiant 2. The other was fuel save. of for what I've gathered is approximately 3% or more. And then of course, the much talked about reduced pollution, the reduced not. The thing that I would say from a sales stand The innovation yielded a lot. But if, if we don't mention, you'll And all we talk about is now.
Speaker Change: The thing that I that I wanted to bring forth as that.
Speaker Change: What you've explained is theres really.
Speaker Change: Three things at the innovation yielded.
Speaker Change: One of those was the reduced maintenance costs on the radiant tubes.
Speaker Change: The other with fuel savings.
Speaker Change: From what I've gathered is approximately 3% or more.
Speaker Change: And then of course, the much talked about reduced pollution that reduce nox.
Speaker Change: The thing that I would say from a sales standpoint.
Speaker Change: The innovation yielded a lot.
Speaker Change: But if if we don't mention you'll.
Speaker Change: Fuel savings.
And all we talk about is Nox.
Robert Keck: I don't think we're really giving ourselves enough credit to generate more prospects and more sales.
Speaker Change: I don't think we're really I don't think we're really giving ourselves enough credit to generate more prospects and more sales.
Robert Keck: So I really think, you know, if it's not being printed in your press releases, then I have the feeling that it isn't being emphasized by the people who are involved in generating sales. What I would what I would ask this question of Um, could you give us some idea of the number of prospects? at the beginning of last year to the beginning to now. In other words, give us an idea if there's prospect growth, there's something we can hang our hat on. because in order to get these sales up to $16-$20 million, if you have, let's say, hypothetically 15 prospects, You're going to have to generate a lot more.
Speaker Change: So I really think.
Speaker Change: In.
Speaker Change: If it's not being printed in your press releases than I have the feeling that it isn't being emphasized by the people who are involved in generating sales.
What I would what I would ask this question of all of that.
Speaker Change: Could you give us some idea of the number of prospects.
Speaker Change: Hey.
Speaker Change: At the beginning of last year to the beginning to now in other words. It gives us an idea if there's cross breck growth there are some.
Speaker Change: Then we can hang our hat.
Speaker Change: Because in order to get the sales up to $16 million to $20 million.
Speaker Change: If you if you have let's say.
Speaker Change: Hypothetically <unk>.
Speaker Change: 15 prospects now.
Speaker Change: You're going to have to generate a lot more prospects to really materially increase the sales.
Robert Keck: to really materially increase the sale. because so many of them take so long and there's things that fall through.
Speaker Change: So many of them take so long and there's things that fall through so could you give us some idea about how many prospects we had maybe at the end at the beginning of last year compared to where we are now at the beginning of this year.
Robert Keck: So could you give us some idea about how many prospects we had maybe at the end, at the beginning of last year compared to where we are now at the beginning?
Speaker Change: Okay. So let me take.
Jim Deller: Okay, so Bob, let me take, I'll answer that the best I can. Let me try and unpack some of the points you've brought up. I think addressing the righteous statement about efficiency just point out we put press releases out. To be honest, mainly for the purpose of keeping investors updated with the progress of the business. those are separate from the marketing materials and the sales presentations and the conference presentations etc that we make to customers in the industry and I give just a right as a quick example we talked a lot about the M1 burner with the right the marketing brochures for that burner in the industry we express efficiency as the excess air levels the burners operate out.
Speaker Change: I'll answer it the best I can let me try and unpack some of the points you brought up.
Speaker Change: Okay.
Speaker Change: I think addressing the right just to stay with that efficiency just pointed out we.
Speaker Change: Put press releases out.
Speaker Change: To be honest, mainly for the purpose of keeping investors updated with the progress of the business.
Speaker Change: Those are separate from the marketing materials and sales presentations on the conference presentation et cetera.
Speaker Change: That we make to customers in the industry and I can give just a as a quick example, we talked a lot about the M. One better.
Speaker Change: But the marketing process for that burn it in the industry, We express efficiency.
Speaker Change: As the extra sand levels the bedroom operate out that's the key driver and that's what the clients recognize that is specifically called out on the sales approaches.
Jim Deller: That's the key driver and that's what the clients recognize. That is specifically called out on the sales brochures but those are not the materials that are obviously discussed in the investor forum because they tend to get very technical and the language we use is different. So I appreciate your point and absolutely agree that it's very important to stress the values and the cost savings to the customers but we we do reference the efficiency. The operability, the turndown range, the speed, the burners we brought up, those are actually all referenced, for example, on the M1 burner sales materials.
Speaker Change: But those are not the material was that all obviously discussed in the Investor Forum, because they tend to get very technical and the language. We use is different so I appreciate your points and absolutely agree that it's very important to stress the values and the cost savings to the customers, but we we do reference the efficiency.
Speaker Change: C.
Speaker Change: These.
Speaker Change: The operability of the tightened that range to speed the bed as we bought up those actually all reference for example on the <unk> banner sales materials. There are many facets of our business that we produce.
Jim Deller: There are many facets of our burners that we produce.
Jim Deller: I, I'll be honest, I don't have specifically the data that you talk about between last year and now, I can tell you. that the range of projects and the number of quotations and the different products that we're engaged in are significantly greater now than they have been in the past.
Speaker Change: I I'll be honest I don't have.
Speaker Change: Specifically the data that you talked about between last year and now I can tell you.
Speaker Change: That the range of projects and the number of quotations and the different products that we're engaged in.
Speaker Change: All significantly greater now than they have been.
Speaker Change: In the past.
Robert Keck: Okay, and I just want to add too to the emphasis on fuel savings because In business, if you can save money, it's a material thing. I just took a look at Devco's website and Tulsa Midshipman. and both of them on their website, they mentioned that they were seeking fuel safe. And it didn't take me very long to find it. So I, I'm just saying. in the press releases that you put out. I've only really heard about And I really think in business, the fuel savings part of it is very, very meaningful. And I think that's just, you know, if that's what this innovation produces.
Speaker Change: Okay, and I, just want to add to the emphasis on fuel savings because.
Speaker Change: In business.
Speaker Change: If you can save money.
Speaker Change: You know it's materially.
Speaker Change: That's a material thing I just took a look at that because website and Tulsa midstream and both of them on their website. They mentioned that they were seeking fuel savings.
Speaker Change: And it didn't take me very long to find it so I'm just saying.
Speaker Change: In the press releases that you put out to us.
Speaker Change: I only really heard about Nox.
Speaker Change: Ben.
Speaker Change: Nox reduction Nox reduction and I really think in business. The fuel savings part of it is very very meaningful and I think that's just.
Speaker Change: That's what this innovation produces.
Robert Keck: then it should be something that's really emphasized. Okay.
Speaker Change: Then it should be something that's really emphasized.
Speaker Change: Okay.
Jim Deller: Bob, your comments were appreciated. I note them. Thank you very much.
Speaker Change: I thought your comments are appreciated I know them.
Speaker Change: Thank you very much.
Matthew Selinger: Operator, I'm going to go ahead and read another question here. There's a lot of a number of questions actually around ZECO itself and about the ZECO agreement. You know, one question, Jim, is about the geography, the agreement covers, and then any sort of, you know, color you can give on everybody wants into the rollout, right? How do you kind of see the rollout there? You can speak in general, general terms. Yes, so I think the first part our agreement with Zco is so first of all, it is specifically for refinery process burners. But that agreement is global, right?
Speaker Change: Operator, I'm going to go ahead and read.
Jim Deller: Another question here, there's a lot of a number of questions actually around zico itself and about the Zika agreement. One question Jim is yes.
Speaker Change: About the geography.
Speaker Change: The agreement covers and then any sort of color you can give on every two months into the rollout right. How do you kind of foresee the rollout there if you could speak in general terms, yes.
Speaker Change: Yes so.
Speaker Change: That's the first part of our agreement with Zico is so first of all it is specifically for refinery process burdens.
Speaker Change: But that agreement is global.
Jim Deller: So as we are marketing this as a Zco product, and the Clearsign brand becomes a Zco product line, and Zco is a global company with manufacturing and servicing, I believe, on every continent. This is this gives us a global reach.
Speaker Change: So as we are marketing this as a zika products.
Speaker Change: Based on that it becomes a zika pilot line of Zika is a global company.
Speaker Change: With manufacturing and servicing I believe on every continent.
Speaker Change: This is this gives us a global reach.
Jim Deller: Now with that said, in areas like China, I am not ready to roll the refining process burdens out in China. I do not want to expose our IP there. I don't think the Chinese will pay a price that makes sense for Clearsign. So I'm not saying that we are going to just push our technology out over the entire globe. But the Zco agreement, should we choose to, does give us that access as and when we are ready. In terms of the rollout, this is a slow-turning industry, and I hate to use that word, but we're in the phase right now of, I think we're well along the way with the marketing materials.
Speaker Change: Now with that said in areas like.
Speaker Change: China, I am not ready to roll the.
Speaker Change: The refining process, but it is out in China, I do not want to expose our IP there.
Speaker Change: Don't think the Chinese will pay a price that makes sense for <unk>. So I'm not saying that we are going to just.
Speaker Change: Pushout technology out over the entire globe, but the Zika agreements should we choose to does give us that access has a when we are.
Speaker Change: Andy.
Speaker Change: In terms of the rollout right. This is.
Speaker Change: A.
Speaker Change: Alright.
Speaker Change: A slow turning industry and I hate to use that word, but we what we're in the phase right now.
Speaker Change: We're well along the way with the marketing materials.
Jim Deller: We have started to educate the Zco sales team. I expect that they will be talking to their customers and start to develop leads, at which point we will engage with them and join them talking to the customers. But to roll that stage forward through the negotiations and completion of the projects and placing of the orders, just to put a timeline, I believe it is going to be into 2026. by the time that we start to see orders resulting from that Zco engagement.
Speaker Change: We have started to educate the zika sales team.
Speaker Change: Expect that they will be talking to their customers and start to develop leads at which point, we will engage with them and Wright joined them talking to the customers.
Speaker Change: But the role that stage forward through the negotiations and completion all of the projects and placing the orders just to put a timeline.
Speaker Change: Believe it is going to be.
Speaker Change: Into 2026.
Speaker Change: By the time that we start to see orders, resulting from that CECO.
Operator: And just to be fair, I don't want to give the impression and have people disappointed when it does not come in quicker, because it is going to take some time just to even after we engage with the customers for those customers to go through and just to go through their normal process of the engineering and the evaluation and actually placing the orders. Operator, are there other questions? There are no further questions at this time.
Speaker Change: Engagement and I'd like just to be fair I don't want to give the price doesn't have people disappointed when it it does not coming quicker because it is going to take some time just.
Speaker Change: Even after we engage with our customers for those customers to go through and just to go through their normal process of the engineering and the evaluation and actually placing the orders.
Speaker Change: Operator are there other questions.
Speaker Change: There are no further questions at this time I would like to turn the call over to CEO, Jim Taylor for closing remarks.
Jim Deller: I would like to turn the call over to CEO Jim Deller for closing remarks. Thank you, operator. As we end this call, I want to thank your investors for your continued interest and support of Clearsign. I do also want to thank and acknowledge all of our employees. We have a small and cohesive team that has shown great dedication, flexibility and open mindedness. We've pushed out our business into these new areas. This has required great technical development and engineering prudence, thorough work in our sourcing and project planning, by teams developing and presenting our proposals, and even the development of new accounting processes to support our customers in new ways.
Jim Taylor: Thank you all read of it.
Jim Taylor: As we end this call I want to thank you our investors for your continuing interest and support of clear sign.
Jim Taylor: I do also want to thank and acknowledge all of our employees, we have a small and cohesive team that has shown great dedication flexibility and open mindedness of we pushed out our business into these new areas.
Jim Taylor: This has required a break technical development and engineering Prudence thorough work in our sourcing and project planning, but teams developing and presenting our proposals enable the development of new accounting processes to support our customers in new ways.
It is very much recognized and appreciated that all this has and continues to be done in addition to the sales and marketing and engineering and product supply and startup and all of the operational support that make up our day-to-day operations.
Jim Taylor: It is very much recognized and appreciated the oldest has and continues to be done. In addition to the sales marketing and engineering, our product supply and startup and all of the operational support the makeup of day to day operations.
Jim Taylor: Okay.
So with that, I'd like to conclude the call. Sorry, ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect.
Jim Taylor: So with that I'd like to conclude the call.
Speaker Change: I'm, sorry, ladies and gentlemen, this concludes your conference call for today we.
Jim Taylor: Thank you for participating and ask that you. Please disconnect your lines.