Q1 2026 ClearSign Technologies Corp Earnings Call

May 20, 2026

Speaker #2: Good day, everyone, and welcome to the ClearSign Technologies First Quarter 2026 Earnings Conference Call. At this time, all participants are placed on a listen-only mode.

Operator: Good day, everyone. Welcome to the ClearSign Technologies' Q1 2026 earnings conference call. At this time, all participants are placed on a listen-only mode. If you have any questions or comments during the presentation, you may press star 1 on your phone to enter the question queue at any time, and we will open the floor for your questions and comments after the presentation. It is now my pleasure to hand the floor over to your host, Matthew Selinger, Investor Relations at ClearSign Technologies. Sir, the floor is yours.

Operator: Good day, everyone. Welcome to the ClearSign Technologies' Q1 2026 Earnings Conference Call. At this time, all participants are placed on a listen-only mode. If you have any questions or comments during the presentation, you may press star one on your phone to enter the question queue at any time, and we will open the floor for your questions and comments after the presentation. It is now my pleasure to hand the floor over to your host, Matthew Selinger, Investor Relations at ClearSign Technologies. Sir, the floor is yours.

Speaker #2: If you have any questions or comments during the presentation, you may press *1 on your phone to enter the question queue at any time, and we will open the floor for your questions and comments after the presentation.

Speaker #2: It is now my pleasure to hand the floor over to your host, Matthew Selinger, Investor Relations at ClearSign Technologies. Sir, the floor is yours.

Speaker #2: Good afternoon, and thank you, operator. Welcome, everyone, to the ClearSign Technologies Corporation First Quarter 2026 Corporate Update Call. During this conference call, the company will make forward-looking statements.

Matthew Selinger: Good afternoon. Thank you, operator. Welcome everyone to the ClearSign Technologies Corporation Q1 2026 Corporate Update Call. During this conference call, the company will make forward-looking statements. Any statement that is not a statement of historical fact is a forward-looking statement. This includes remarks about the company's projections, expectations, plans, beliefs, and prospects. These statements are based on judgments and analysis as of the date of this conference call and are subject to numerous important risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements.

Speaker #2: 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.

Speaker #2: These statements are based on judgments and analysis as of the date of this conference call and are subject to numerous important risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements.

Speaker #2: The risks and uncertainties associated with the forward-looking statements made in this conference call include, but are not limited to, whether field testing and sales of ClearSign's products will be successfully completed, whether ClearSign will be successful in expanding the market for its products, and other risks that are described in ClearSign's filings with the SEC, including those discussed under the Risk Factors section of the annual report on Form 10-K for the period ended December 31, 2025.

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 product will be successfully completed. Whether ClearSign will be successful in expanding the market for its products and other risks that are described in ClearSign's filings with the SEC, including those discussed under the Risk Factors section of the annual report on Form 10-K for the period ended 31 December 2025. 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. With me on the call today are Jim Deller, ClearSign's Chief Executive Officer, and Brent Hinds, ClearSign's Chief Financial Officer. With that, I'm going to turn the call over to Jim.

Speaker #2: The acceptance required by law, ClearSign assumes no responsibility to update these forward-looking statements to reflect future events or actual outcomes and is not intended to do so.

Speaker #2: So with me on the call today are Jim Deller, ClearSign's Chief Executive Officer, and Brent Hines, ClearSign's Chief Financial Officer. So with that, I'm going to turn the call over to Jim.

Speaker #3: Thank you, Matthew. As always, I'd like to thank everyone for joining us on the call today. And if you'll continue to interest in ClearSign.

Jim Deller: Thank you, Matthew. As always, I'd like to thank everyone for joining us on the call today and for your continued interest in ClearSign. Like our more recent quarterly calls, we will use a Q&A format for this session. Some of you have sent in questions ahead of time, and we did assimilate those questions into the materials that we will cover today. For the call today, Matthew will lead a Q&A session where we'll go through the different business units, much like our previous calls. If you wish, you can send in questions to our investor relations at mselinger@firmirgroup.com. To start us off today, I'm going to hand over to Brent Hinds, who will go over the financial numbers for the Q1 for 2026.

Jim Deller: Thank you, Matthew. As always, I'd like to thank everyone for joining us on the call today and for your continued interest in ClearSign. Like our more recent quarterly calls, we will use a Q&A format for this session. Some of you have sent in questions ahead of time, and we did assimilate those questions into the materials that we will cover today. For the call today, Matthew will lead a Q&A session where we'll go through the different business units, much like our previous calls. If you wish, you can send in questions to our Investor Relations at mselinger@firmirgroup.com. To start us off today, I'm going to hand over to Brent Hinds, who will go over the financial numbers for the Q1 for 2026.

Speaker #3: Like our more recent quarterly calls, we will use a Q&A format for this session. Some of you have sent in questions ahead of time, and we did a simulate those questions into the materials that we will cover today.

Speaker #3: So for the call today, Matthew will lead a Q&A session where we will go through the different business units, much like our previous calls.

Speaker #3: If you wish, you can send in questions to our Investor Relations at MSELINGER@firmirgroup.com. So to start us off today, I'm going to hand over to Brent Hines, who will go over the financial numbers for the first quarter of 2026.

Speaker #4: Thank you, Jim. And thank you to everyone joining us here today. Before I begin, I'd like to note that our financial results are on Form.

Brent Hinds: Thank you, Jim, and thank you to everyone joining us here today. Before I begin, I'd like to note that our financial results on Form 10-Q was filed last week with the SEC. With that, I'd like to give an overview of our financial results for Q1 2026. For Q1 2026, the company recognized approximately $200,000 in revenues, compared to approximately $400,000 for the same period in 2025. This year-over-year decrease in revenues was predominantly driven by decreases in apart deliveries during Q1 this year. Our gross profit for the quarter decreased compared to the same period in 2025. This decrease was mainly due to lower revenues and a warranty accrual of $410,000 made in anticipation of potential modifications to some installed equipment in a California refinery. As a result, the year-over-year decrease in gross profit was approximately $589,000.

Speaker #5: Thank you.

Speaker #4: Was filed last week with the SEC. With that, I'd like to give an overview of our financial results for the first quarter of 2026.

Speaker #4: For the first quarter of 2026, the company recognized approximately $200,000 in revenues, compared to approximately $400,000 for the same period in 2025. This year-over-year decrease in revenues was predominantly driven by a decrease in spare part deliveries during the first quarter, this year.

Speaker #4: Our gross profit for the quarter decreased compared to the same period in 2025. This decrease was mainly due to lower revenues and our warranty accrual of $410,000 made in anticipation of potential modifications to some installed equipment in a California refinery.

Speaker #4: As a result, the year-over-year decrease in gross profit was approximately $589,000. On that loss for the first quarter increased by $114,000 compared to the same period in 2025.

Brent Hinds: Our net loss for Q1 increased by $114,000 compared to the same period in 2025. The impact from the gross profit on our net loss was offset by a $369,000 decrease in general and administrative expenses. Our G&A expenses decreased in comparison to 2025, in large part due to reduced legal fees that were incurred during 2025 for a special committee of our board of directors that was decommissioned after our 2025 stock offering. Now let's shift focus to cash. Our net cash used in operations for Q1 of 2026 was approximately $1.3 million, compared to approximately $1.1 million for the same period in 2025. This year-over-year change was predominantly driven by a reduction in our current liabilities. As of 31 March 2026, we had approximately $7.7 million in cash and cash equivalents with approximately 5.4 million shares of common stock outstanding.

Brent Hinds: Our net loss for Q1 increased by $114,000 compared to the same period in 2025. The impact from the gross profit on our net loss was offset by a $369,000 decrease in general and administrative expenses. Our G&A expenses decreased in comparison to 2025, in large part due to reduced legal fees that were incurred during 2025 for a special committee of our Board of Directors that was decommissioned after our 2025 stock offering. Now let's shift focus to cash. Our net cash used in operations for Q1 of 2026 was approximately $1.3 million, compared to approximately $1.1 million for the same period in 2025. This year-over-year change was predominantly driven by a reduction in our current liabilities. As of 31 March 2026, we had approximately $7.7 million in cash and cash equivalents with approximately 5.4 million shares of common stock outstanding.

Speaker #4: The impact from the gross profit on our net loss was offset by a $369,000 decrease in general and administrative expenses. Our G&A expenses decreased in comparison to 2025, in large part due to reduced legal fees that were incurred during 2025 for a special committee of our board of directors that was decommissioned after our 2025 stockholder meeting.

Speaker #4: Now let's shift focus to cash. Our net cash used in operations for the first quarter of 2026 was approximately $1.3 million, compared to approximately $1.1 million for the same period in 2025.

Speaker #4: This year-over-year change was predominantly driven by a reduction in our current liabilities. As of March 31, 2026, we had approximately $7.7 million in cash and cash equivalents.

Speaker #4: With approximately 5.4 million shares of common stock outstanding—and with that, I'd like to turn the call over to our CEO, Jim Deller. Jim.

Brent Hinds: With that, I'd like to turn the call over to our CEO, Jim Deller. Jim?

Speaker #3: Thank you, Brent. And again, thank you everyone for joining us today. I'm actually going to hand it over to Matthew Selinger, who's going to lead the question and answer session. But just to remind us as we go through this,

Jim Deller: Thank you, Brent. Again, thank you everyone for joining us today. I'm actually going to hand over to Matthew Selinger, who's going to lead the question and answer session. Just a reminder as we go through this, if you do have questions, you can send those in to mselinger@firmirgroup.com. With that, Matthew, I'll hand it over to you.

Speaker #3: If you do have questions, you can send those in to mselinger@firmirgroup.com. So with that, Matthew, I'll hand it over to you.

Speaker #2: Great. Jim, Brent, thanks for joining me here today. We did just have a call a few weeks ago; however, we have been busy between now and then, and we do have some significant events and developments to discuss.

Matthew Selinger: Great, Jim, Brent. Thanks for joining me here today. We did just have a call a few weeks ago. However, we have been busy between now and then, and we do have some significant events and developments to discuss. With that, let's kind of dive right in. Jim, just last week, we announced an order for the next phase of a 32-burner project for a California refinery. Could we dive into this and talk about what do we mean by the next phase of this order?

Speaker #2: So with that, let's kind of dive right in. Jim, just last week, we announced an order for the next phase of a 32-burner project for a California refinery.

Speaker #2: So, can we dive into this and talk about what we mean by the next phase of this order?

Speaker #3: Yeah. I think this is good. And especially for investors new to ClearSign, so we were given the start of actually two orders late in 2025, almost four, six burners going down to a Texas refinery and then one for 32 burners destined for a refinery out in California.

Jim Deller: Yeah. I think this is good, especially for investors new to ClearSign. We were given at the start of actually 2 orders late in 2025. One was for 6 burners going down to a Texas refinery, one for 32 burners destined for a refinery out in California. As is common with our projects, these are released in phases. The first phase was for the initial engineering and the computation modeling where we basically simulate the burners and the burners' effects and flow and performance on a computer modeling system. That phase is now complete for the California order. The next phase of the project is then for us to fabricate or do the detailed engineering and fabricate the first article of those burners, we will then install that and demonstrate it.

Jim Deller: Yeah. I think this is good, especially for investors new to ClearSign. We were given at the start of actually two orders late in 2025. One was for six burners going down to a Texas refinery, one for 32 burners destined for a refinery out in California. As is common with our projects, these are released in phases. The first phase was for the initial engineering and the computation modeling where we basically simulate the burners and the burners' effects and flow and performance on a computer modeling system. That phase is now complete for the California order. The next phase of the project is then for us to fabricate or do the detailed engineering and fabricate the first article of those burners, we will then install that and demonstrate it. We'll make any optimizations necessary, but show it performing in a full-scale test furnace at the Zeeco facility.

Speaker #3: As is common with our projects, these are released in phases. The first phase was for the initial engineering and the computation modeling, where we basically simulate the burners and the burners’ effects and flow performance on a computer modeling system.

Speaker #3: That phase is now complete for the California order, and the next phase of the project is then for us to fabricate, or do the detailed engineering and fabricate the first article of those burners, and we will then install that and demonstrate it.

Speaker #3: We will make any optimizations necessary, but show it performing in a full-scale test furnace at the CECO facility.

Jim Deller: We'll make any optimizations necessary, but show it performing in a full-scale test furnace at the Zeeco facility.

Speaker #2: Okay. And Jim, and this is the ClearSign Core Gen 2 technology.

Matthew Selinger: Okay. Jim, this is the ClearSign Core Gen 2 technology?

Speaker #3: Yes, in a modified form. So, what's actually interesting about this order is the burner that was developed, or the round burner that was developed as part of the SBIR program, was our standard shape. But what we actually did develop was a configurable architecture that we could then adapt to flat planes or different burn shapes or formats to fit into the variety of different heaters you find on a refinery, rather than just being restricted to the heaters that needed a round burner.

Jim Deller: Yes. In a modified form. What's actually interesting about this order is the burn that was developed, or the round burner that was developed as part of the SBIR program, was our standard shape. What we actually developed was a configurable architecture that we could then adapt to flat flames or different burn shapes or formats to fit into the variety of different heaters you find on a refinery, rather than just being restricted to the heaters that needed a round burner. This particular order is for a heater that needs a long, thin burner that actually fires up against a wall to make this heater work. That's just the type of heater this is.

Speaker #3: So this particular order is for a heater that needs a long, thin burner that actually fires up against a wall to make this heater work.

Speaker #3: That's just the type of heater that this is.

Speaker #2: And this is in that in the press release, we referred to it as a flat flame application. Yeah. And so this then I'm going to go jump back a little bit.

Matthew Selinger: This is then that, in the press release we referred to it as a flat flame application.

Jim Deller: Yes.

Matthew Selinger: Yeah. This then, I'm going to go jump back a little bit. The ClearSign Core Gen 2 is really, and you referred to it as such in the past, as a burner platform.

Speaker #2: The ClearSign Core Gen 2 is really—and you referred to it as such in the past—it’s a burner platform. Is that right? And you just mentioned the word there, which has configurable architecture.

Jim Deller: Yep.

Matthew Selinger: Is that right? You just mentioned the word there, which has configurable architecture. Is that correct?

Speaker #2: Is that correct?

Speaker #3: That's what we refer to it. Yes. I think that's a good description. I mean, the way that the burner works is a series of components that creates the flow field that controls the marks and allows the burner to operate the way it does.

Jim Deller: That's what we refer to it, yes. I think that's a good description. I mean, the way that the burner works is a series of components that create the flow field that controls the NOx and allows the burner to operate the way it does. We can arrange those components to control the flame shape and the shape of the burner, depending on the needs of the client further. It's a very flexible technology that gives us that ability to adapt it to the different types of heaters sticking to different processes on refineries and chemical plants, or wherever they need.

Speaker #3: But we can arrange those components to control the flame shape and the shape of the burner depending on the needs of the client, further.

Speaker #3: So it's a very flexible technology that gives us that ability to adapt it to the different types of heaters that fit into different processes in refineries and chemical plants, or wherever they need it.

Speaker #2: Okay. So let's move back to the discussion of the order. So the progression of this order, can you quantify what this might mean in terms of dollars?

Matthew Selinger: Okay. Let's move back to the discussion of the order. The progression of this order, can you quantify what this might mean in terms of dollars?

Speaker #3: I can. I mean, there's more engineering in this particular project because it is, one, it's a very technical heater, and it's also the first flat flame configuration of this type of burner we've done.

Jim Deller: I can. There's more engineering in this particular project because it is, one, it's a very technical heater, and it's also the first flat flame configuration or this type of burner we've done. The engineering and testing portion is just shy of half a million dollars for this part.

Speaker #3: So the engineering and testing portion is just shy of half a million dollars for this part, and the order we've received.

Matthew Selinger: Part of the order.

Jim Deller: The order we've received.

Speaker #2: Okay, so with that then, can we then—let's take a step back. Can we break down, kind of, call it an average process burner order by the phases and maybe the potential dollars on each phase?

Matthew Selinger: Okay. With that, let's take a step back. Can we break down kind of, call it an average process burner order by the phases, and maybe the potential dollars on each phase? Can we map this out?

Speaker #2: Can we map this out?

Speaker #3: Yeah, I think we can. It's probably useful. I know we have a lot of new investors in ClearSign. I think to make this easier, let's talk about a hypothetical project.

Jim Deller: I think we can. It's probably useful. I know we have a lot of new investors that are in ClearSign. I think to make this easier, let's talk about a hypothetical project. The orders we started at the end of last year, the first order we got, one was for 36 burners going down to Texas, one was 32 for California. Let's just take a hypothetical 30 burner order, and we've given guidance, right? An average price of a process burner is about $100,000. For a 30 burner order, the equipment is going to be about $3 million. On top of that, there is typically about $300,000 in engineering, computer modeling, and testing that goes into the initial phase of the product as we dial the burner details in.

Speaker #3: The orders we started at the end of last year, post-order, we got. One was for 36 burners going down to Texas. One was 32 down to California.

Speaker #3: So that's to take a hypothetical 30-burner order, and we've given guidance for an average price of a process burner at about $100,000. So for a 30-burner order, the equipment is going to be about $3 million.

Speaker #3: On top of that, there is typically about $300,000 in engineering, computer modeling, and testing that goes into the initial phase of the product as we dial the burner details in.

Speaker #3: So, as we walk through the typical process, as we've seen in this California order, typically about $150,000 would be the initial engineering and modeling—the burners in on the computational platform—showing the customer how they work, how they operate, and what they should expect.

Jim Deller: As we walk through the typical process, as we've seen in this California order, typically about $150,000 would be the initial engineering and modeling the burners on the computational platform, showing the customer how they work, how they operate in a heater, and what they should expect. The next phase is typically about $250,000. $100,000 of that will be the first burner, because that next phase is going to take that first production article, put it into the test furnace, and then demonstrate that to the customer. That's their chance to come and see it firing for real. Put the burner through its paces, check emissions, check the operation, make sure it does everything they need. The completion of that phase, we would then be released for the fabrication orders.

Speaker #3: The next phase is typically about $250,000. $100,000 of that will be the first burner, because that next phase is going to take that first production article, put it into the test burners, and then demonstrate that to the customer. That's their chance to come and see it.

Speaker #3: Firing for real, put the burner through its paces, check the emissions, check the operation, make sure it does everything that they need, and then at the completion of that phase, we would then be released for the fabrication of the order.

Speaker #3: So in this case, if this was a 30-burner order, we've manufactured one for the test. We'd be released to manufacture the other 29, and of course, refurbish the one we use for testing.

Jim Deller: In this case, if it is for their 30 burner order, we've manufactured one for the test. We'd be released to manufacture the other 29, and of course, refurbish the one we used for testing.

Speaker #2: Okay. And that last phase, I know we've referred to in the past as kind of the equipment order, the bulk of the equipment order.

Matthew Selinger: That last phase I know we've referred to in the past as kind of the equipment order, the bulk of the equipment order.

Speaker #3: Yes. Yeah. And that's, in terms of finance and revenue, that's the bulk of the project for us—the initial dialing that design in.

Jim Deller: Yes.

Matthew Selinger: Yeah.

Jim Deller: Yeah. In terms of finance and revenue, that's the bulk of the project for us. The initial engineering phases really are dialing that design in. Of course, the manufacturing is the large revenue driver.

Speaker #3: And then, of course, the manufacturing is the large part, the large revenue driver.

Speaker #2: And on that equipment manufacturer, what are the terms we tend to get? Is it 50% upfront of that?

Matthew Selinger: On that equipment manufacture, what are the terms? We tend to get. Is it 50% up front of that?

Speaker #3: Yeah. I think a good we often get stage payments. They can vary. A good approximation is 50% upfront at the point of release of the order.

Jim Deller: Yeah, I think, we often get stage payments. They can vary. A good approximation is 50% up front at the point of release. Your order, obviously, our process burners are fabricated by Zeeco. They have to go out and buy materials, and then they start working on those. We get the other 50% of the payment for that part of the project, typically when the product is created and ready to be collected from the Zeeco facility.

Speaker #3: Obviously, our process burners are fabricated by CECO. They have to go out and buy materials, and then they start working on those. And then we get the other 50% of the payment for that part of the project.

Speaker #3: Typically, when the product is created and ready to be collected from the CECO facility.

Speaker #2: Okay. So, Brent, I'll turn to you. So then these projects, then, are basically self-funding. Is that right?

Matthew Selinger: Okay. Brent, I'll turn to you. These projects then are basically self-funding. Is that right?

Speaker #3: Yes, that's correct. Before we recognize revenue, we'll receive cash from the customer to augment the cost that we incur.

Brent Hinds: Yes, that's correct. Before we recognize revenue, we'll receive cash from the customer to augment the costs that we incur.

Speaker #2: Great. But we're not.

Jim Deller: Great. I mean, Colin, in terms of what you mentioned, what's key from my perspective is we're typically able to collect cash ahead of our expenditures on a project. When we look especially at projects in the $3 plus million range, we don't have to dig into our cash reserves to execute those projects. We get cash in from the customer ahead of our cash going out to actually execute the projects. They're essentially self-funding through the project.

Matthew Selinger: Great, but were not-

Speaker #3: I mean, just to emphasize the point you mentioned, what's key from my perspective is we're typically able to collect cash ahead of our expenditures on a project.

Jim Deller: I mean, Matt, in terms of what you mentioned, what's key from my perspective is we're typically able to collect cash ahead of our expenditures on a project. When we look especially at projects in the $3 plus million range, we don't have to dig into our cash reserves to execute those projects. We get cash in from the customer ahead of our cash going out to actually execute the projects. They're essentially self-funding through the project.

Speaker #3: So when we look, especially at projects in the $3-plus million range, we don't have to dig into our cash reserves to execute those projects.

Speaker #3: We get cash in from the customer ahead of our cash going out to actually execute the projects. They're essentially self-funding through the project.

Speaker #2: Okay, fantastic. Let's move forward, then, into the other large project you mentioned: the 36-burner order. This one, as we discussed on the last call, differs as well—it differs from the 32 and also from what we previously announced.

Matthew Selinger: Okay, fantastic. Let's move then forward into the other large project you mentioned, the 36 burner order. This one, as we mentioned on the last call, differs as well, differs from the 32, it differs than what we previously announced. Is that correct? Could you kind of describe what's going on with this?

Speaker #2: Is that correct? Could you kind of describe what's going on with this?

Speaker #3: It is. I mean, from a technical perspective, our burner technology—we really offer two different things to our customers. The first is the obvious.

Jim Deller: It is. I mean, from a technical perspective, Well, with our burner technology, we really offer two different things to our customers, right? The first is the obvious. Our customers have to meet new aggressive emissions regulations. Our burner technology allows them to do this for a much lower cost than the incumbent technology that's buying a selective catalytic reduction unit. For the emissions, we're a much more economical option for our clients to comply. Our burner technology gives us the ability to structure flames and shape them so that we can control the flame shape, how they interact, and how they transfer the heat to the client's heater. What that means in the real perspective, is it gives us the ability to make heaters operate better, whether that's to reduce maintenance requirements or in some cases, to increase the throughput of a heater.

Speaker #3: Our customers have to meet new, progressive emissions regulations. Our burner technology allows them to do this for a much lower cost than the incumbent technology that's buying a selective catalytic reduction.

Speaker #3: So for the emissions, we're a much more economical option. But our clients need to comply. Our burner technology gives us the ability to structure flames and shape them so that we can control the flame shape, how they interact, and how they transfer the heat to the client's heater.

Speaker #3: What that means in a real perspective is it gives us the ability to make heaters operate better, whether that's to reduce maintenance requirements or, in some cases, to increase the throughput of a heater.

Speaker #3: On projects like that, we can actually offer our clients a very positive return on investment. So they're not just buying burners to meet emissions requirements.

Jim Deller: On projects like that, we can actually offer our clients a very positive return on investment. They're not just buying burners to meet emissions requirements, we're actually enabling them to either save downtime and through reduced maintenance or to get more production through their heaters, i.e., make more money. What's exciting about this 36 burner order going down to Texas is while there is obviously an emissions limit on that job, the driver is actually increased performance of that client's heater. The configuration of the burners in this case, again, is different. If you think of this particular heater as being a series of square boxes pushed up against each other, our burners are firing horizontally through opposing walls, so they're on the side walls of the heater firing in towards each other.

Speaker #3: They're actually, and we're actually, enabling them to either save downtime through reduced maintenance, or to get more production through their heaters—that is, make more money.

Speaker #3: What's exciting about this 36-burner order going down to Texas is, while there is obviously an emissions limit on that job, the driver is actually increased performance of that client's heater.

Speaker #3: The configuration of the burners in this case, again, is different. If you think of this particular heater as being a series of square boxes pushed up against each other, our burners are firing horizontally through opposing walls.

Speaker #3: So they're on the side walls of the heater, firing in towards each other. So this is, again, another adaptation of the burner technology to fit this need.

Jim Deller: This is again another adaptation of the burner technology to fit this need, just with the benefit that the objective is actually increased performance of the heater, in addition to controlling the NOx emissions.

Speaker #3: Just with the benefit that the objective is actually increased performance of the heater, in addition to controlling the NOx emissions.

Speaker #2: So then, is this getting us into a larger market and/or larger heaters? Or maybe is it larger heaters and/or a larger market? How's that kind of working for our—

Matthew Selinger: Is this getting us into a larger market and/or larger heaters, or maybe is it larger heaters and/or a larger market? How's that working for RHI?

Jim Deller: Yeah. Well, there's some of both. The heaters that use the flat flames, there are some processes with a lot of burners in that use a flat flame technology. If anyone looking at the process, you might look at a delayed coker as 1 example in refineries. There's lots of flat flame burners typically in a delayed coking unit. Being able to put burners into heaters that we would not have been able to do before we completed the SBIR program with this Gen 2 technology, essentially expanded the addressable market for ClearSign. The other phenomenon that we've seen recently is there's been a lot more interest in ClearSign, and we've got true engagement from the majors in the industry, right. The household names, the global refineries. These refineries have a much bigger throughput, essentially means their heater's much bigger. They have a lot more burners in them.

Speaker #3: Yeah, I mean, there's some of both. Getting the heaters that use the flat flames—there are some processes with a lot of burners in that use a flat flame technology.

Speaker #3: I've read anyone looking up the process. You might look at delayed cookers as one example of refineries. There's lots of flat flame burners typically in a delayed cooking unit.

Speaker #3: So, being able to put burners into heaters that we would not have been able to do before we completed the SBAR program with this Gen2 technology, it essentially expanded the addressable market for ClearSign.

Speaker #3: The other phenomenon that we've seen recently is there's been a lot more interest in ClearSign, and we've got true engagement from the majors in the industry.

Speaker #3: The household names, the global refiners—these refineries have a much bigger throughput, which essentially means their heaters are much bigger. They have a lot more burners in them.

Speaker #3: So the orders we just talked about, the one going to California has 32 burners in it, the one we have going down to Texas has 36.

Jim Deller: The orders we just talked about, the one going to California has 32 burners in it. The one we have going down to Texas has 36. The previous orders to ClearSign have been five burners, eight burners, much smaller heaters. Getting involved just in these bigger projects means there's a lot more revenue in these orders as they flow through the orders and we get to process them.

Speaker #3: The previous orders to ClearSign have been five burners, eight burners, and much smaller heaters. So getting involved in the just in these bigger projects means there's a lot more revenue in these orders as they flow through the orders.

Speaker #3: And we get to process them.

Speaker #2: Okay. So, one of the events I'd like to bring up and talk about is—and we highlighted this on our last call—the process burner demonstration at CECO.

Matthew Selinger: Okay. One of the events I'd like to bring up and talk about is, we highlighted this on our last call, was the process burner demonstration at Zeeco, and that was scheduled to happen on the 23rd. Can you give some discussion on how that event went? I know you can't name names, but perhaps you can describe the attendees.

Speaker #2: And that was scheduled to happen on the 23rd. So, can you give some discussion of how that event went? I know you can't name names, but perhaps you can describe the attendees.

Speaker #3: I can. And just for anyone not on the last call, two of the major events for this year in the process burner, because we identified, was this launch and demonstration of our new Gen2 process burner technology.

Jim Deller: I can. Just for anyone not on the last call, 2 of the major events for this year in the process burner, as we identified, was this launch and demonstration of our new Gen 2 process burner technology. The second is the startup of a major order that we shipped at the end of last year. Those burners are down on the client sites in the US Gulf Coast waiting to be installed, and startup is scheduled for October. At the time of the last call, we were getting ready for the first of those 2, which was this demonstration. We can now talk about that as a past event. It was really successful. The burner ran through all of its paces. The NOx was good. We ran from 100% natural gas to 100% hydrogen, demonstrated that transitioning smoothly back to 100% natural gas.

Speaker #3: And then the second is the startup of a major order that we shipped at the end of last year. Those burners are down on the client's sites in the US Gulf Coast, waiting to be installed.

Speaker #3: And startup is currently scheduled for October. So, at the time of the last call, we were getting ready for the first of those two, which was this demonstration.

Speaker #3: So we can now talk about that as a past event. It was really successful. The burner ran through all of its paces. The NOx was good.

Speaker #3: We ran from 100% natural gas to 100% hydrogen, and demonstrated that we could transition smoothly back to 100% natural gas. We put the burner through its paces.

Jim Deller: We put the burner through its paces. We demonstrated some other criteria, showing the safety and the operability of the burner, along with some demonstration information sessions for the customers. The attendance was one of the major things for me, just looking at our traction in the industry. We had about 100% of the people that responded, not quite 100%, but almost there. The people that responded they would come, actually showed up. That's a really big deal. I believe we had 23 people in attendance on the day. Amongst those 23 were representatives from 8 large refineries or national energy companies, along with consultants and heater manufacturers. I think also what was really pleasing to note, Ben, we have a collaborative partnership with Zeeco. They're a very important partner for us. They're a billion-dollar-plus company. They manufacture our burners. That's where we did the demonstration.

Speaker #3: We demonstrated some other criteria, showing safety in the op. Operated the burner along with some demonstration information sessions for the customers. The attendance was one of the major things for me, just looking at our traction in the industry.

Speaker #3: We had about 100% of the people that responded—not quite 100%, but almost there. But the people that responded, they would come, actually showed up.

Speaker #3: That's a really big deal. I believe we had 23 people in attendance on the day. Among those 23 were representatives from eight large refiners or national energy companies, along with consultants and heater manufacturers.

Speaker #3: I think also what was really pleasing to that event, we have a collaborative partnership with a very, very important partner for us, a billion-dollar-plus company that’s—they manufacture our burners.

Speaker #3: That's the way we do the demonstration. Darton Zinc, the president and CEO of CECO, actually came down and gave a welcome and an introduction to ClearSign as a start of that demonstration to our customers.

Jim Deller: Darton Zink, the president and CEO of Zeeco, actually came down and gave a welcome and an introduction to ClearSign as a start of that demonstration to our customers. Showing their buy-in and his interest in what we're doing and the technology that we're developing, I think was very pleasing to us and a very powerful message to the clients in attendance.

Speaker #3: So, showing their buy-in and his interest in what we're doing and the technology that we're developing, I think was very pleasing to us and a very powerful message.

Speaker #3: To the clients and attendance.

Speaker #2: And then what sort of feedback have you received then, post the event?

Matthew Selinger: What sort of feedback have you received then post the event?

Speaker #3: So it's been positive. I think so. We actually had a chance to talk with customers that were there, and also people I've spoken to.

Jim Deller: It's been positive. We actually had a chance to talk with customers that were there and also people I've spoken to. We regularly attend, twice a year, there's an American Petroleum Institute, API, conference where we review and update the refining equipment standards. That conference was the week after our demonstration, so we were there. I was there personally, and while there, we got to meet AFRC people who have been in attendance at our demonstration and people who had talked to people who had been there at the demonstration. We got a general feedback from the industry, and that was very positive. I'm quite confident that we hit the mark with this demonstration. I think it was a great success.

Speaker #3: We regularly attend. Twice a year, there’s an American Petroleum Institute, or API, conference where we review and update the refining equipment standards. That conference was the week after our demonstration.

Speaker #3: So we were there. I was there personally. And while there, we got to meet, in fact, people who have been in attendance at our demonstration, and people who have talked to people who have been there at the demonstration.

Speaker #3: So, we got general feedback from the industry, and that was very positive. So I'm quite confident that we hit the mark with this demonstration.

Speaker #3: I think it was a great success.

Speaker #2: And are these customers or others kind of discussing the regulatory environment right now?

Matthew Selinger: Are these customers or others kind of discussing the regulatory environment right now?

Speaker #3: They are. I mean, that was the reason that a lot of the refineries, and consequently the heater and the other attendees, were there at the demonstration.

Jim Deller: They are. That was the reason that a lot of the refineries and consequently, Keeten and the other attendees were there at the demonstration. Many of them we're talking to about projects that they have. They came to check out the technology. It's sort of great chance for them to see some technology they've not seen before and check that box. Yes, they're very much looking at what they have to do, trying to work out their best plans to meet the regulatory compliance and the new regulations that are being formalized for Texas, and of course, for any of the refineries in California already know. They have plans in place to get their refineries to the state they need to be.

Speaker #3: Many of them were talking to me about projects that they have, that they came to check out the technology. This was a great chance for them to see some technology.

Speaker #3: They've not seen before, and check that box. So yes, they're very much looking at what they have to do, trying to work out their best plans to meet the regulatory compliance and the new regulations that are being formalized for Texas and, of course, the refineries in California already know.

Speaker #3: And they have plans in place to get there—the refineries to the state they need to be.

Speaker #2: All right. And then, one of the projects you did address, or you mentioned then, is that 26-burner order that was shipped back in December.

Matthew Selinger: All right. One of the projects you did address, or you mentioned then, is that 26 burner order. That was shipped back in December.

Jim Deller: Yes.

Speaker #2: And that's on schedule, then, to be installed coming up?

Matthew Selinger: That's on schedule then to be installed coming up?

Speaker #3: Yes, that's right. So, just for clarification, the project was completed in September. It actually shipped early, in January. Our completion was to create the burners.

Jim Deller: Yes. Just to clarify, the project was completed in September, but actually shipped early in January. Our conclusion was to create the burners, that's just for details. Those burners are down on site. They're due to be installed. Things change, but right now they're due to be installed around the middle of the year. We're thinking July. The project is due to start up in October.

Speaker #3: That's just for details. Those burners are down on site. They're due to be installed. Things change. But right now, they're due to be installed around the middle of the year.

Speaker #3: We think in July, and the project's due to start up in October.

Speaker #2: And that's for a petrochemical company, we've always said. Now, does that get us kind of into chemicals, the chemical market?

Matthew Selinger: That's for a petrochemical company, we've always said. Now, does that get us into the chemicals, the chemical market?

Speaker #3: It does. It's actually the second chemical customer we have. The first was a midstream heater, also on the Gulf Coast of Texas. But if I can, I think a bit of clarity is worthwhile.

Jim Deller: It does. It's actually the second chemical customer we have. The first was a midstream heat and also on the Gulf Coast of Texas. If I can, I think a bit of clarity is worthwhile. As we look to the long term, the big picture for ClearSign, part of our future plan is to get into high temperature applications. By that I mean ethylene furnaces, downfire reformers. That is a very big potential market for ClearSign. Those are our chemical processes. Also on the chemical plant are more refinery type heaters that are a stepping stone towards those high temp applications. The heaters that we are starting up in October are refinery process type heaters, but they are in a chemical plant.

Speaker #3: As we look to the long term, the big picture for ClearSign—part of our future plan is to get into high-temperature applications. And by that, I mean a very big potential market for ClearSign.

Speaker #3: Those are chemical processes. Also, on the chemical plan, often more refinery-type heaters are a stepping stone towards those high-temperature applications. The heaters that we are starting up in October are refinery process-type heaters, but they are in a chemical plant.

Speaker #3: And with the flat-flame configurations we've talked about for the California project, we do see that as a very significant stepping stone towards getting into the high-temperature work that we plan for the longer-term growth of ClearSign.

Jim Deller: With the flat flame configurations we've talked about for the California project, we do see that as a very significant stepping stone towards getting into the high temperature work that we plan for the longer term growth of ClearSign.

Speaker #2: All right. Well, it’s interesting you brought up, Jim, the M1 installation in a chemical plant. And that was about a year ago, and that was through Tulsa Midstream.

Matthew Selinger: All right. Well, it's interesting you brought up, Jim, the M1 installation in a chemical plant, and that was about a year ago, and that was through Tulsa Midstream.

Jim Deller: Tulsa Heaters Midstream.

Speaker #2: Yes. And then we just announced today another M1 order from them. Is that correct? And they were the first adopter of the M1 series product?

Matthew Selinger: Yeah.

Jim Deller: Yes.

Matthew Selinger: We just announced today another M1 order from them. Is that correct?

Jim Deller: That's correct, yes.

Matthew Selinger: They were the first adopter of the M1 series product?

Speaker #3: That is correct. In fact, that heater down on the US Gulf Coast was the very first M1 that was shipped.

Jim Deller: That is correct. In fact, that heater down on the US Gulf Coast was the very first M1 that was shipped.

Speaker #2: Correct. It's nice to see them come back. Let's say a year later. So, how are you feeling about the M series products in general?

Matthew Selinger: Great. It's nice to see them come back, I'll say, a year later. How are you feeling about the M Series products in general?

Speaker #3: I'm feeling very good. I know there's not been a lot of orders coming in, and we've talked about it frequently. But I've been worried if there wasn't the interest—any inquiries.

Jim Deller: I'm feeling very good. I know there's not been a lot of orders coming in, and we talk about it frequently. I'd be worried if there wasn't the interest and inquiries, but we have had a lot of interest, a lot of inquiries, in fact, more even coming in this week. We have an M1, we have a M25 started up that's down in Midland. We have an M1 already out and shipped waiting to be installed. We have another M25 that's out and shipped waiting to be installed. There are a lot of M1 quotes and M25 quotes, and they continue to come in. I'm feeling very good about that market. I think it's just timing as they start to come in. Obviously we'd like more quicker, but in terms of the interest, there's a lot of interest and I'm quite confident that market's there.

Speaker #3: But we have had a lot of interest, a lot of inquiries—in fact, more even coming in this week. So, we have an M1.

Speaker #3: We have an M25 started up—that's down in Midland. We have an M1 already out and shipped, waiting to be installed. We have another M25 that's out and shipped.

Speaker #3: Waiting to be installed. There are a lot of M1 quotes and M25 quotes, and they continue to come in. So I'm feeling very good about that market.

Speaker #3: I think it's just time as they start to come in. Obviously, we'd like more, quicker, but in terms of the interest, there's a lot of interest.

Speaker #3: And I'm quite confident that the market is there.

Speaker #2: Okay. And you mentioned a couple of startups pending. Speaking of startups, there's also a flare project poised at startup very soon. Is that correct?

Matthew Selinger: Okay

Matthew Selinger: Okay.

Jim Deller: for these burners.

Jim Deller: For these burners.

Matthew Selinger: You mentioned a couple startups pending. Speaking of startups, there's also a flare project poised to start up very soon. Is that correct?

Speaker #3: There is. Or, to clarify, the formal source testing has started. So we've already run this equipment, but we couldn't do the formal source testing until a particular component outside of our scope was in and installed.

Jim Deller: There is, or to clarify, the formal source testing is started. We've already run this equipment, but we couldn't do the formal source testing until a particular component that's outside of our scope was in and installed. I believe that's in and installed right now, and the latest we've heard is the source testing is scheduled for next month. That will be the first source testing of our new generation of flares out in the California market. This has actually been a good product line for us. We've talked about systems projects where we've taken our burner technology and been able to expand that into a full system in the $750,000 to 1 million dollar range. This burner that's starting up is of that order.

Speaker #3: I believe that's in and installed right now. And the latest we've heard is the source testing is scheduled for next month. So that will be the first source testing of what my new generation of flares out in the California market.

Speaker #3: This has actually been a good product line for us. We've talked about the systems projects where we've taken our burner technology and been able to expand that into a full system in the $750,000 to $1 million range.

Speaker #3: This burner that's starting up is of that order. At the same time, we have our first full system project actually well on its way in fabrication right now, that's due to ship later on this year.

Jim Deller: At the same time, we have our first full system project actually well on its way in fabrication right now that's due to ship later on this year. Getting the source testing done and having that as a signed off formal recognition of the performance of our technology, I think is going to be powerful in that flare.

Speaker #3: But getting the source testing done, and having that as a signed-off, formal recognition of the performance of our technology, I think, is going to be powerful in that flair.

Speaker #3: Market.

Speaker #2: Yeah, and I think we've mentioned on a previous call that I believe that last one is the fifth installation. So we're seeing repeat orders from a customer.

Matthew Selinger: Yeah. I think we've mentioned on the previous call that I believe that last one is the fifth installation. We're seeing repeat orders from a customer. Again, could you say that's a similar conversation you're having with our other customers in the other product lines as well too? I know we've mentioned even at some of the process burners that while we're working on, I believe it was a 32 burner order that you're already even having conversations with that customer about potential future products.

Speaker #2: And again, could you say that's a similar conversation you're having with our other customers in the other product lines as well, too? I know we've mentioned, even at some of the process burners, that while we're working on—I believe it was the 32-burner order—that you're already even having conversations with that customer about potential future projects.

Speaker #3: I mean, yeah, it's the same here. We do believe that this flare plant does have future needs. And then, in that same industry, there are other plants.

Jim Deller: It's the same. We do believe that this flare line does have future needs. In that same industry, there's other clients. These go into the California market predominantly. We believe that there's other applications outside of this customer as well.

Speaker #3: These are going into the California market predominantly. We believe that there's other applications outside of this customer as well.

Speaker #2: That's great. I want to ask you this one, Jim. Are you still confident in the—first of all, how are you feeling about the status of ClearSign business?

Matthew Selinger: That's great. I want to ask you this one, Jim. Are you still confident? First of all, how are you feeling about the status of the ClearSign business? I'll maybe give it a follow-up. Then are you still confident in the proposal pipeline that we've discussed in previous calls?

Speaker #2: And I'll maybe give a follow-up. And then, are you still confident in the proposal pipeline that we've discussed in previous calls?

Speaker #3: Well, to be honest, Steve, the answer to the second is also the answer to the first. I mean, I appreciate the orders have been fairly slow over the last few months.

Jim Deller: Well, to be honest, the answer to the second is also the answer to the first one. I appreciate the orders have been fairly slow over the last few months. The inquiries and the customer engagements have not. We continue to have inquiries for process burners. We've got a lot coming in for midstream. We continue to be active with flares with the recent M1, with the flare startup next week, with the success of the process burner demonstration just a couple of weeks ago. When I'm looking at the big picture, I do think our revenues are going to be lumpy. Our order intake has been lumpy. Saying that, we do have, well, we've got a 36 burner order, we've got a 32 burner order. Those orders are in-house and being processed at this time. There is a substantial backlog in inquiries for process burners.

Speaker #3: The inquiries on the customer engagement have not. We continue to have inquiries for process burners. We've got a lot coming in for Midstream. We continue to be active with flares.

Speaker #3: With the recent M1, with the flare startup next week, with the success of the process burner demonstration just a couple of weeks ago, and I'm looking at the big picture.

Speaker #3: I do think our revenues are going to be lumpy. Our order intake has been lumpy. But saying that, we do have—we've got the 36-burner order.

Speaker #3: We've got the 32-burner order. Those orders are in-house and being processed at this time. There is a substantial backlog in inquiries for process burners.

Speaker #3: We know a lot of those customers are also looking to the installation down on the US Gulf Coast. New startup in October. So, while we have a few orders right now, I think we're going to see a significant pickup after that project is up and running.

Jim Deller: We know a lot of those customers are also looking to the installation down on the US Gulf Coast, due to start up in October. While we have a few orders right now, I think we're going to see a significant pickup after that project is up and running. Our clients that are talking to us right now that have not engaged will see that as a vote of confidence once that has started up, and that's aligned with the conversation we've actually had with them.

Speaker #3: And our clients that are talking to us right now, that have not engaged, will see that as a vote of confidence once that has started up.

Speaker #3: And that's aligned with the conversation we've actually had with them.

Speaker #2: Fantastic. So, with that, Jim, are there any sort of last comments or any items you'd like to bring up before we bring on questions?

Matthew Selinger: Fantastic. With that, Jim, is there any sort of last comments or any items you'd like to bring up before we bring on questions?

Speaker #3: There is one. And this is more general. But just for everyone to know, we talk about the highlights on these calls. We talk about the purchase orders coming in and the rather big events.

Jim Deller: There is one. This is more general. We talk about the highlights on these calls. We talk about the purchase orders come in and the rather big events. I've talked about a lot of sales activities, getting ready for demonstrations, a lot of customer events. There's a lot of engineering. There's a lot of work going on within ClearSign, a lot within the finance and in the functions just keeping the business running. We do keep our headcount down. There's not a lot of us here at ClearSign, and I just want to publicly take this chance just to extend my thanks and appreciation to the staff here at ClearSign for everything they do. They truly believe in ClearSign, and I really appreciate their efforts, and I'd like to say that publicly. I think that's necessary and appropriate.

Speaker #3: I've talked about a lot of sales activities, getting ready for the demonstration. A lot of customer events. There's a lot of engineering. There is a lot of work going on within ClearSign, and a lot within the finance and in the function.

Speaker #3: Just keeping the business running. We do keep our headcount down, so there's not a lot of us here at ClearSign. And I just want to publicly take this chance to extend my thanks and appreciation to the staff here at ClearSign for everything they do.

Speaker #3: They truly believe in ClearSign, and I really appreciate their efforts. And just to—I'd like to say that publicly. I think that's necessary and appropriate.

Speaker #2: Fantastic. So, with that, we will take the time then to open up for questions, and also review and read off some questions that were sent in ahead of time.

Matthew Selinger: Fantastic. With that, we will take the time then to open up for questions and also review and read off some questions that were sent in ahead of time. With that, operator?

Speaker #2: So with that, operator?

Speaker #4: Certainly. Everyone at this time will be conducting a question-and-answer session. If you have any questions or comments, please press star one on your phone at this time.

Operator: Certainly. Everyone at this time will be conducting a question and answer session. If you have any questions or comments, please press star one on your phone at this time. We do ask that while posing your question, please pick up your handset if you're listening on speakerphone to provide optimum sound quality. Once again, if you have any questions or comments, please press star one on your phone. Please hold while we poll for questions. Thank you. There are no questions in the queue at this time. Apologies. Your first question is coming from Amit Dayal from H.C. Wainwright. Your line is live.

Speaker #4: We do ask that, while posing your question, please pick up your handset if you're listening on speakerphone to provide optimum sound quality. And once again, if you have any questions or comments, please press star one on your phone.

Speaker #4: Please hold while we pull questions. Thank you. There are no questions in the queue at this time—apologies. Your first question is coming from Amit Dial from HC Wainwright.

Speaker #4: Your line is live.

Speaker #5: Hey, good afternoon, guys. Thanks for taking my question. Matt went through pretty much a lot of the things I was going to bring up.

Amit Dayal: Good afternoon, guys. Thanks for taking my question. Matt went through pretty much a lot of the things I had, was going to bring up. Just one clarification, Jim. It looks like you have five or six project starts between Q1 and Q2. Are some of these at least underway already at this point?

Speaker #5: But just one clarification, Jim. It looks like you have five or six project starts between Q1 and Q2. Are some of these at least underway already at this point?

Speaker #3: I mean, I am sorry. Could you repeat that question, please?

Jim Deller: Amit, I am sorry. Could you repeat that question, please?

Speaker #5: Yeah. I was saying, it seems that you may have, like, five or six project starts between Q1 and Q2. Are these underway at this point?

Amit Dayal: I was saying, it seems that you may have five or six project starts between Q1 and Q2. Are these underway at this point? Some of these are at least going for you?

Speaker #5: Or are some of these at least going for you?

Jim Deller: We're actually working on, I think, the big startups for us at this time. We have a flare for the source testing. We're planning that. The actual events when you start a unit up typically happen over just a few days, but there is a lot of, obviously, preparation going into that and planning. That flare will be a significant event for us. The big burner startup down on the Gulf Coast will be later on this year. That will be down in October, but we will be supporting the installation that's scheduled to occur in July. Because of what that project is and how large it is, that will be very significant for us. The M Series startups, we do help with. We are getting to the point with our repeat customers where they are getting quite familiar with those products.

Speaker #3: They were actually working. I think the big startups for us at this time—we have a flare for the source testing. We're planning that.

Speaker #3: The actual events when you start a unit typically happen over just a few days, but there is a lot of, obviously, preparation going into that and planning.

Speaker #3: But yeah, that flare will be a significant event for us. The big burner startup down on the Gulf Coast will be later on this year.

Speaker #3: That will be down in October. But we will be supporting the installation, the schedule to occur in July. So just that because of what that project is and how large it is, that will be very significant for us.

Speaker #3: The M-series startups, we do help with. We are getting to the point with our repeat customers where they are getting quite familiar with those products.

Speaker #3: So once we give them technical support, they do not always require us to be out on the job site. So we will wait to hear from them. We have other work in progress.

Jim Deller: Whilst we give them technical support, they do not always require us to be out on the job site. We will wait to hear from them. We have other work in progress. We have a very large flare order in production also. We've got the one starting up next month. We also have the second large one that's due to complete fabrication later on in Q3 and be out on the job site. We're expecting that startup later on this year as well.

Speaker #3: We have a very large flare order in production, also. So we've got the one starting up next month. We also have the second large one that's due to complete fabrication later on in Q3 and be out on the job site.

Speaker #3: So we're expecting that startup later on this year as well.

Speaker #5: Yeah. That's all I have.

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

Speaker #3: So, those are—sorry, just talking through those. Just from the startups, they are significant for us. But most of these customers, if you think of the flare, we actually have in our proposal pipeline, we have additional quotes out to those customers.

Jim Deller: Sorry, just talking through those, just remember the startups are significant for us, but most of these customers, if you think of the flare, we actually have in our proposal pipeline, we have additional quotes out to those customers. The startup we're expecting next month and the source testing we believe is going to be a last check mark for them before they look at their futures. We have one other quote. We believe they have additional ones permitted waiting to be moved on as well. We do see a very big significance in these startups, not just for completing those individual projects, but for what it means for our future orders and growth.

Speaker #3: The startup we're expecting next month and the source testing, we believe, is going to be the last check mark for them before they look at their futures.

Speaker #3: We have one other quote; we believe they have additional ones permitted, waiting to be moved on as well. So we do see a very big significance in the startups, not just for completing those individual projects, but for what it means for our future orders and growth.

Speaker #5: All right, Jim. Thank you. That's all I have.

Amit Dayal: Got you. Thank you. That is all I have.

Speaker #3: Thank you, Amit.

Jim Deller: Thank you, Matt.

Jim Deller: Thank you, Amit.

Speaker #4: Thank you, Amit.

Speaker #1: Thank you. Your next question is coming from Peter Gastrich from Water Tower Research. Your line is live. And once again, Peter, your line is live.

Operator: Thank you. Your next question's coming from Peter Gastreich from Water Tower Research. Your line is live. Once again, Peter, your line is live. Peter, please double-check your line to ensure you're not muted on your end. There are no further questions in the queue at this time.

Speaker #1: And Peter, please double-check your line to ensure you're not muted on your end. There are no further questions in the queue at this time.

Speaker #2: Great, operator. I can read a couple. We've got one, actually, that's coming from New Zealand. And the question is, there's been some announced reductions in EPA regulations across a wide range of areas.

Matthew Selinger: Great. Operator? I can read a couple. We've got one actually that's coming from New Zealand. The question is, there's been some announced reductions in EPA regulations across a wide range of areas. Jim, do you view that negatively for adoption going forward?

Speaker #2: Jim, do you view that negatively for adoption going forward?

Speaker #3: So for ClearSign, we—I mean, if you're into the reduction, as in the easing, of the regulations—for ClearSign, the CO2 emission regulations do not really affect us.

Jim Deller: For ClearSign, if you're into the reduction as in the easing of the regulations for ClearSign, the CO2 emission regulations do not really affect us. They have an impact on hydrogen consumptions of fuel. The ClearSign technology is focused on NOx emissions, and those have continued to be pushed. They are largely regulated by the states, driven in the US by the EPA and ground-level ozone. I think from what we've seen generally around the world, the emissions continue to be tightened, right? Everyone values clean air as population grows. While our businesses are predominantly in the United States at this time, we have one installation in Europe. We are very much looking at the wider global market in our future plans through our relationship with Zeeco. Zeeco is a global company with support and manufacturing around the world.

Speaker #3: They have an impact on hydrogen consumption of fuel, but the ClearSign technology is focused on NOx emissions, and those have continued to be pushed.

Speaker #3: They're largely regulated by the states, driven in the U.S. by the EPA and ground-level ozone. I think from what we've seen generally around the world, the emissions continue to be tightened.

Speaker #3: Everyone values clean air, and while our businesses are predominantly in the United States at this time, we have one installation in Europe.

Speaker #3: We are very much looking at the wider global market in our future plans through our relationship with Zeekr. Zeekr is a global company with support and manufacturing around the world.

Speaker #3: So, through them, we definitely have the ability to survey a global market. And we actually benefited from that Zeekr relationship when we serviced the one installation that we have.

Jim Deller: Through them, we definitely have the ability to survey a global market. We actually benefited from that Zeeco relationship when we serviced the 1 installation we have out in Europe. That is a proven model for us. Yes, we do watch the global market. The regulations do change, as do the types of equipment that the clients use. I generally see the tightening of emissions out in the Far East and in Europe as a very positive sign for ClearSign.

Speaker #3: Out in Europe, so that is a proven model for us. So yes, we do watch the global market. The regulations do change, as do the types of equipment that the clients use.

Speaker #3: But I generally see the tightening of emissions out in the Far East and in Europe as a very positive sign for ClearSign.

Speaker #2: Okay. There's another question, kind of a simple one. Jim, what does an average M-series burner sell for?

Matthew Selinger: Good. There's another question, kind of a simple one. Jim, what does an average M Series burner sell for?

Speaker #3: That's a great question. So we've given general guidance of an average burner price of $100,000 to keep things simple and to allow easy math.

Jim Deller: That's a great question. We've given general guidance of an average burner price of $100,000 to keep things simple and to allow easy math. I think that number holds for the M Series, but as you asked the question, there is obviously a variation. The M1 is the low emissions burner. That's our higher technology, and it does sell for a premium price, and there's actually a bit more engineering and manufacturing that goes into that burner. The common sizes of that burner range from somewhere in the region of $80,000 up to north of $200. The M25 is a detuned version with less engineering, less IP to leverage. Those will sell for a lower price point. Again, the common size is ranging from probably $50,000 up to somewhere in the region of $150 to 200 for the common sizes. I think the $100,000 average is good.

Speaker #3: I think that number holds for the M-series. But as you asked the question, there's obviously a variation—the M1 is the low emissions burner.

Speaker #3: That's our higher technology, and it does sell for a premium price. And there's actually a bit more engineering and manufacturing that goes into that burner.

Speaker #3: The common sizes of that burner range from somewhere in the region of 80,000, up to north of 200,000. The M25 is a detuned version with less engineering, less IP to leverage.

Speaker #3: Those will sell for a lower price point. Again, the common sizes range from probably $50,000 up to somewhere in the region of $150,000 to $200,000 for the common sizes.

Speaker #3: So, I think the $100,000 average is good. One of the things to consider with the M-series, while we're talking about those, is these are standard burners.

Jim Deller: One other thing to consider with the M Series, while we're talking about those, is these are standard burners. Unlike the process burners that go through a lot of engineering and have to get dialed in in the test furnace and the very long duration of the orders, the M Series are a standard burner configuration. What we're finding is that also amongst those size ranges, there are common sizes. What that means is once we have built a, say, if you take this recent order, as we build this 1 M1 for this application for Tulsa Heaters Midstream. As we have further applications for that same burner, we already have the drawings and the engineering done. It's just a case of manufacturing those same burners. That enables us to have a very high degree of efficiency and really focus on the profitability for ClearSign.

Speaker #3: So, unlike the process burners that go through a lot of engineering and have to get dialed in in the test furnace, and the very long duration of the orders, the M-series are a standard burner configuration.

Speaker #3: And what we're finding is they're also, amongst those size ranges, there are common sizes. What that means is once we have built a, say, if you take this recent order, as we build this one and one for this application for Total Heaters midstream, as we have further applications for that same burner, we already have the drawings and the engineering done. It's just a case of manufacturing those same burners.

Speaker #3: So that enables us to have a very high degree of efficiency and really focus on the profitability for ClearSign. So this is a it's a we can talk about the revenue and the sales price, but when we look at the profitability, what this means for ClearSign, I really like the M-series burners.

Jim Deller: We can talk about the revenue and the sales price, but when we look at the profitability of what this means for ClearSign, I really like the M Series burners.

Speaker #2: So great. Operator, I have no more questions. Coming in. I'll turn it back to you.

Matthew Selinger: Great. Operator, I have no more questions coming in. I'll turn it back to you.

Speaker #1: Certainly. And once again, everyone, if you have any questions or comments, please press star, then one on your phone. Your next question is coming from Peter Gastrich from Water Tower Research.

Operator: Certainly. Once again, everyone, if you have any questions or comments, please press star then one on your phone. Your next question's coming from Peter Gastreich from Water Tower Research. Your line is live.

Speaker #1: Your line is live.

Speaker #5: Thank you very much. Apologies for earlier—I had muted my line. But congratulations on the results. It's great to see the momentum in the orders this month.

Peter Gastreich: Thank you very much. Apologies before there, I had muted my line. Congratulations on the results. It's great to see the momentum in the orders this month. Also appreciate the comprehensive presentation, and you have answered a few of the questions that I've had, so I really appreciate that. I just want to ask a kind of an industry-wide sort of question. You talk a lot about the comparisons versus the incumbent technologies, and the advantage there is very clear. I just am curious if you could share any thoughts about how you would describe the landscape for any competing new technologies, if any, that are out there. Thank you.

Speaker #5: Also, I appreciate the comprehensive presentation and that you have answered a few of the questions that I've had, so I really appreciate that. I just want to ask a kind of industry-wide sort of question.

Speaker #5: You talk a lot about the comparisons versus the incumbent technologies, and that the advantage there is very clear. I’d just be curious if you could share any thoughts about how you would describe the landscape for any competing new technologies, if any, that are out there.

Speaker #5: Thank you.

Speaker #3: Thank you, Peter. Yeah, and thanks for your questions there and comments. I mean, I definitely see the incumbent SEO, or selective catalytic reduction technology, as the main competition for ClearSign.

Jim Deller: Thank you, Peter. Thank you for your question there and comments. I definitely see the incumbent SCR or selective catalytic reduction technology as the main competition for ClearSign. I think we have a much more efficient product, and it's certainly much more economical for the customer. Very simply, when we look at the market, our objective is to displace SCRs going forwards. There's obviously other burner manufacturers trying to come up with products. We don't see a lot from others. There's obviously with the advertising and marketing, but at this time, I do believe that ClearSign very much has the dominant share and the main name recognition in the SCR level NOx burner market within the industry. For somebody new starting up with a burner technology, there are some significant barriers. One, you have to have people expert in the industry.

Speaker #3: I mean, I think we have a much more efficient product, and it's certainly much more economical for the customer. So, very simply, when we look at the market, our objective is to displace SERs going forward.

Speaker #3: I mean, there's obviously other burner manufacturers trying to come up with products. We don't see a lot from others. Obviously, we see advertising and marketing.

Speaker #3: But at this time, I do believe that ClearSign very much has the dominant share and the main name recognition in the SER-level NOx burner market within the industry.

Speaker #3: For somebody new starting up with a burner technology, there are some significant barriers. One, you have to have people expert in the industry. It is a very specialized field of engineering.

Jim Deller: It is a very specialized field of engineering. Beyond that, the customers have certain needs. One is to demonstrate burners in a full-scale furnace. They have very specific manufacturing needs. ClearSign has overcome that barrier through our collaborative arrangement with Zeeco. For somebody else without those connections, I think just for that, getting into this market would be very difficult.

Speaker #3: But beyond that, the customers have certain needs. One is to demonstrate burners in a full-scale furnace. They have very specific manufacturing needs. ClearSign has overcome that barrier through our collaborative arrangement with Zeeko.

Speaker #3: But for somebody else without those connections, I think just for that, getting into this market would be very difficult.

Speaker #1: All right. Thank you. That concludes our Q&A session. I'll now hand the conference back to Jim Deller, Chief Executive Officer, for closing remarks. Please go ahead.

Operator: Thank you. That concludes our Q&A session. I'll now hand the conference back to Jim Deller, Chief Executive Officer, for closing remarks. Please go ahead.

Speaker #5: Thank you, Operator. And thank you, everyone, for your interest in ClearSign and for taking the time to join our call today. I also thank you for the questions that you've sent in and for the questions that you've asked live here.

Jim Deller: Thank you, operator. Thank you everyone for your interest in ClearSign and taking the time to join our call today. I do thank you also for the questions that you've sent in and for the questions that you've asked live here. It is always good to get some feedback. We look forward to updating you regarding our developments and speaking with you on our next call. In the meantime, we do update LinkedIn. We do send less formal messages out that way. Please keep checking for our developments on our websites, and please follow us on LinkedIn.

Speaker #5: It is always good to get some feedback. We look forward to updating you regarding our developments and speaking with you on our next call.

Speaker #5: In the meantime, we do update LinkedIn. We do send less formal messages out that way, so please keep checking for our developments on our website.

Speaker #5: And please follow us on LinkedIn.

Operator: Thank you. Everyone, this concludes today's event. You may disconnect at this time, and have a wonderful day. Thank you for your participation.