Q2 2026 ClearSign Technologies Corp Earnings Call

August 19, 2026

Speaker #1: Please continue to hold. Your conference will begin momentarily. Please continue to hold. Thank you for your patience.

Speaker #2: Greetings. Welcome to the ClearSign Technologies Q2 2026 earnings conference call. At this time, all participants are in listen-only mode. A question-and-answer session will follow the formal presentation.

Operator: Greetings. Welcome to the ClearSign Technologies Q2 2026 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Matthew Selinger, Investor Relations. You may begin. Please hold, ladies and gentlemen. We appear to be having technical difficulties. Just one moment.

Speaker #2: If anyone should require operator assistance during the conference, please press *0 on your telephone keypad. Please note, this conference is being recorded. I will now turn the conference over to your host, Matthew Selinger.

Speaker #2: Investor Relations, you may begin. Please hold, ladies and gentlemen. We appear to be having technical difficulties. Just one moment.

Speaker #3: Good afternoon, and thank you, operator. Welcome, everyone, to ClearSign Technologies Corporation's second quarter 2026 corporate update call. During this conference call, the company will make forward-looking statements.

Matthew Selinger: Good afternoon, and thank you, operator. Welcome everyone to ClearSign Technologies Corporation’s Q2 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 #3: 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 #3: 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 #3: 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 products will be successfully completed, whether ClearSign will be successful in expanding the market for its products, and the 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 products will be successfully completed, whether ClearSign will be successful in expanding the market for its products, and the 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. On the call with me today are Jim Deller, ClearSign’s Chief Executive Officer, and Brent Hinds, ClearSign’s Chief Financial Officer. With that, I am going to turn the call over to Jim Deller. Jim, please go ahead.

Speaker #3: 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 #3: So, on the call with me today are Jim Deller, ClearSign's Chief Executive Officer, and Brent Hines, ClearSign's Chief Financial Officer. With that, I am going to turn the call over to Jim Deller.

Speaker #3: So Jim, please go ahead.

Speaker #4: Thank you, Matthew. As always, I'd like to thank everyone for joining us on the call today and for your interest in ClearSign. Like our more recent conference calls, we will use a Q&A format for this session.

Jim Deller: Thank you, Matthew. As always, I would like to thank everyone for joining us on the call today and your interest in ClearSign. Like our more recent conference 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 into the questions we will cover. For the call today, Matthew will lead a question and answer session where we will go through the different business units, much like our previous calls. Many of you may have seen this, but you can send in questions ahead of time to our investor relations at mselinger@firmirgroup.com. We will start with Brent Hinds going over the company financials for the Q2 2026. Brent?

Speaker #4: Some of you have sent in questions ahead of time, and we did assimilate those into the questions we will cover. For the call today, Matthew will lead a question-and-answer session where we'll go through the different business units, much like our previous calls.

Speaker #4: Many of you may have seen this, but you can send in questions ahead of time to our Investor Relations at mselinger@firmirgroup.com. We will start with Brent Hinds going over the company financials for the second quarter of 2026.

Speaker #4: Brent?

Speaker #5: Thank you, Jim. And thank you, everyone, for joining us here today. Before I begin, I'd like to note that our financial results on Form 10-Q were filed with the SEC last week.

Brent Hinds: Thank you, Jim, and thank you everyone joining us here today. Before I begin, I would like to note that our financial results on Form 10-Q was filed with the SEC last week. With that, I would like to give an overview of our financial results for the Q2 2026. For the Q2 2026, the company recognized approximately $560,000 in revenues, compared to approximately $133,000 for the same period in 2025. The year-over-year increase in revenues was predominantly driven by delivering a portion of our Flare system order and completing multiple CFD studies and spare parts orders. Our Q2 gross profit margin was approximately 41%, which was relatively flat year over year. Our net loss for the Q2 decreased by $373,000 compared to the same period in 2025. The decrease in our net loss was predominantly driven by a $368,000 decrease in general and administrative expenses.

Speaker #5: With that, I'd like to give an overview of our financial results for the second quarter of 2026. For the second quarter of 2026, the company recognized approximately $560,000 in revenues, compared to approximately $133,000 for the same period in 2025.

Speaker #5: The year-over-year increase in revenues was predominantly driven by delivering a portion of our flare system order and completing multiple CFD studies and spare parts orders.

Speaker #5: Our second quarter gross profit margin was approximately 41%, which was relatively flat year over year. Our net loss for the second quarter decreased by $373,000 compared to the same period in 2025.

Speaker #5: The decrease in our net loss was predominantly driven by a $368,000 decrease in general and administrative expenses. Our general and administrative expenses decreased in comparison to 2025, in large part due to reduced legal fees that were incurred during 2025 for the special committee of our board of directors, which was ultimately dissolved after our annual meeting of the stockholders.

Brent Hinds: Our general and administrative 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 ultimately dissolved after our annual meeting of the stockholders. Now let's shift our focus to cash. Our net cash used in operations for Q2 2026 was approximately $1.2 million, compared to approximately $511,000 for the same period in 2025. This year-over-year change was predominantly driven by timing of customer cash collections. As of 30 June 2026, we had approximately $9.9 million in cash and cash equivalents. Now, I do believe it's important to note that subsequent to 30 June 2026, we raised additional funds through a private equity offering with a longtime investor. We sold 500,000 shares at market value, or rather $3.54 per share on 21 July 2026.

Speaker #5: Now let's shift our focus to cash. Our net cash used in operations for the second quarter of 2026 was approximately $1.2 million, compared to approximately $511,000 for the same period in 2025.

Speaker #5: This year-over-year change was predominantly driven by the timing of customer cash collections. As of June 30, 2026, we had approximately $9.9 million in cash and cash equivalents.

Speaker #5: Now, I do believe it's important to note that, subsequent to June 30, 2026, we raised additional funds through a private equity offering with a long-time investor.

Speaker #5: We sold 500,000 shares at market value, or rather, $3.54 per share, on July 21, 2026. This added approximately $1.7 million in net proceeds to our cash balance.

Brent Hinds: This added approximately $1.7 million in net proceeds to our cash balance. Considering this addition of cash, our pro forma 30 June 2026 cash balance would be approximately $11.6 million. As noted on our Form 10-Q, as of 8 August 2026, we have 6.8 million shares of common stock outstanding. This share count includes our most recent share offerings. With that, I'd like to turn the call over to Matthew Selinger.

Speaker #5: Considering this addition of cash, our pro forma June 30, 2026 cash balance would be approximately $11.6 million. As noted on Form 10-Q, as of August 8, 2026, we have 6.8 million shares of common stock outstanding.

Speaker #5: This share count includes our most recent share offerings. And with that, I'd like to turn the call over to Matthew Selinger.

Speaker #3: Thank you, Brent, for the financial overview. Jim, thank you both for joining me today. Let's start the call at the corporate level and discuss some recent developments there, if we could.

Matthew Selinger: Thank you, Brent, for the financial overview. Jim, thank you both for joining me today here. Let's start the call at kind of the corporate level and discuss some recent developments there, if we could. Jim, Brent mentioned a capital raise recently. Could you shed some color on the decision-making process for the two raises that just happened?

Speaker #3: Jim, Brent mentioned the capital raise recently. Could you shed some light on the decision-making process for the two raises that just happened?

Speaker #4: Yes, certainly. So for the first, we were approached by a long-term investor group. They expressed some interest in acquiring some more shares. From the company's perspective, having a stronger balance sheet is always good, especially when talking to large customers.

Jim Deller: Yes, certainly. For the first, we were approached by a long-term investor group. They expressed some interest in acquiring some more shares. From the company perspective, having a stronger balance sheet is always good, especially when talking to large customers. We went ahead, we arranged a small strategic raise. This was done at market pricing and was common stock only. Following that, a long-term private investor reached out to us and expressed an interest in topping up their ownership of the company to maintain their percentage. Again, we raised a simple direct placement. In this case, it was done at market pricing, and again, it was shares only.

Speaker #4: So we went ahead and arranged a small strategic raise. This was done at market pricing and was common stock only. Following that, a long-term private investor reached out to us and expressed an interest in topping up their ownership of the company to maintain their percentage.

Speaker #4: Again, we raised a simple, direct placement in this case. It was done at market pricing, and again, it was shares only.

Speaker #3: Okay, great. Now, the other development was just announced last week, and this was the announcement that former Exxon global technology leader Larry Sadler joined the board of directors.

Matthew Selinger: Okay, great. The other development was just announced last week, and this was the announcement that former Exxon global technology leader, Larry Saddler, joined the Board of Directors. Jim, I know you've known Larry for a while, so maybe give a little background there on that relationship.

Speaker #3: And Jim, I know you've known Larry for a while, so maybe give a little background there on that relationship.

Speaker #4: Yes, certainly. So yeah, I have. And first of all, I'm really pleased that Larry has decided to join us at ClearSign. I've known Larry—I think I first met him back in the 1990s.

Jim Deller: Yes, certainly. I have, and first of all, I am really pleased that Larry has decided to join us at ClearSign. I have known Larry, I think I first met him back in the 1990s. He was working on the Baytown Refinery for ExxonMobil. We have worked together. I have stayed in touch with Larry since joining ClearSign. From a background, Larry's career has progressed up, or had, up through the ExxonMobil organization, both with the technical oversight of fired equipment, which includes heaters and burners, and also up to the corporate level, where he is overseeing policies and how the company assesses heater performance and new technologies. From our perspective, his experience and insights are extremely valuable to ClearSign, and just in general, he is a fantastic guy and has a great reputation within the industry.

Speaker #4: He was working on the Baytown refinery for ExxonMobil. We've worked together. I've stayed in touch with Larry since joining ClearSign. So for background, Larry's career has progressed up through the ExxonMobil organization.

Speaker #4: Both with the technical oversight of fired equipment, which includes heaters and burners, and also up to the corporate level where he's overseeing policies and how the company assesses heater performance and new technology.

Speaker #4: So, from our perspective, his experience and insights are extremely valuable to ClearSign. And just in general, he is a fantastic guy and has a great reputation within the industry.

Speaker #3: And I know you and I were talking about this, and you mentioned that he won an opportunity to see the newest, the latest burner technology himself before joining us.

Matthew Selinger: I know you and I were talking about this, and you mentioned that he wanted an opportunity to see the newest and latest burner technology himself before joining us.

Speaker #4: Yes, that's correct. I mean, Larry has a lot of experience and is reasonably very cautious about who he signs on with. Prior to agreeing to join us, he wanted a chance to come and see the ClearSign technology in action for himself, to check that it lived up to our reports and advertisements.

Jim Deller: Yes, that is correct. Larry has a lot of experience, is reasonably very cautious about who he signs on with, and prior to agreeing to join us, wanted a chance to come and see the ClearSign technology in action for himself to check that it lived up to our reports and advertisements. Larry actually came in ahead of the customer demonstration that we did earlier this year in April. He spent a day with us. He had his own testing. We spent a day with him, basically let him direct the testing, kick the tires on the burner and the technology. He then stayed for the demonstration day itself. Obviously, since then, he has agreed to join the company. On behalf of all the directors, we are really pleased to have Larry join us.

Speaker #4: So Larry actually came in ahead of the customer demonstration that we did earlier this year in April. He spent a day with us. He had his own testing.

Speaker #4: We spent a day with him, basically let him direct the testing, kick the tires on the burner and the technology. He then stayed for the demonstration day itself.

Speaker #4: And, obviously, since then, he has agreed to join the company. So, on behalf of all the directors, we are really pleased to have Larry join us.

Speaker #3: Well, I think it's a great addition for the Board and the company. So let's shift now back to ClearSign's business and into the product lines.

Matthew Selinger: Well, I think it's a great addition for the board and the company. Let's shift now back to ClearSign's business and into the product lines. The last couple of calls, I know we've endeavored to give some visibility into the pipeline in terms of proposals for the product lines, including both process burners and the M Series midstream burners. One of the last calls, I think the last call we left off, I'll quote you, Jim, as saying we had approximately 50 or so proposals out for the M Series. Since that last call, we've announced orders for six M Series burners, which is again, back of the envelope numbers, call that 10% to 12% of that backlog converted to orders. Can we talk about some of these M Series orders first?

Speaker #3: In the last couple of calls, I know we've endeavored to give some visibility into the pipeline. In terms of proposals for the product lines, including both process burners and the M-Series midstream burners, in one of the last calls—I think the last call—we left off, I'll quote you, Jim, as saying we had approximately 50 or so proposals out for the M-Series.

Speaker #3: Now, since that last call, we've announced orders for six M-series burners. Which is, again, back-of-the-envelope numbers, you could call that 10 to 12 percent of that backlog converted to orders.

Speaker #3: So, can we talk about some of these M-series orders first?

Speaker #4: Yep. Certainly.

Jim Deller: Yep, certainly.

Speaker #3: Okay. So the first two, in chronological order, were from Tulsa Heaters Midstream, and they were slated to go to an operator in West Texas.

Matthew Selinger: Okay. The first two in chronological order were from Tulsa Heaters Midstream, and these are slated to go to an operator in West Texas. Could you talk more about these first two orders?

Speaker #3: So, could you talk more about these first two orders?

Speaker #4: Yes. So, for those of you that are Tulsa Heater Midstream, there's a midstream heater manufacturer actually based here, obviously in Tulsa. They were the first company to install one of our new M1 burners.

Jim Deller: Yes. For those of you that don't know, Tulsa Heaters Midstream is a midstream heater manufacturer actually based here, obviously in Tulsa. They were the first company to install one of our new M1 burners, and that went into a chemical site down on the Texas Gulf Coast. That burner ran fantastically. They've got experience of our burners. These new orders are going down to a company we describe as a multinational energy company down in the Permian Basin down in West Texas. This is probably the biggest midstream region for us in the United States. Both of these first two burners, its new heaters, they're going down to the same customer, actually onto the same site.

Speaker #4: And that went into a chemical site down on the Texas Gulf Coast. That burner ran fantastically. So they've got experience with our burners. These new orders are going down to a company we described as a multinational energy company down in the Permian Basin, down in West Texas—West Texas.

Speaker #4: So this is probably the biggest midstream region for us in the United States, both of these first two burners. It's new heaters. They're going down to the same customer, actually onto the same site.

Speaker #3: Yeah. And these were two—I think we described them as large M1s—and they were separate orders, correct?

Matthew Selinger: Yeah, these were two, I think we described them as large M1s, and they were separate orders, correct?

Speaker #4: That's correct. I believe it's the same project for the client, but they placed their orders for the heaters one after the other. And that's Tulsa Heaters Midstream receiving in turnaround and placed the order on those.

Jim Deller: That is correct.

Matthew Selinger: Yeah.

Jim Deller: I believe it is the same project for the client, but they placed their orders for the heaters one after the other, and as Tulsa Heaters Midstream received, they in turn turned around and placed the order with us.

Speaker #3: Okay. And now, after those two separate—again, for the same end-use customer—we had an order for three burners from a different heater manufacturer.

Matthew Selinger: Okay. Now after those two separate, again for the same end-use customer, we had an order for three burners from a different heater manufacturer, and this also was going to West Texas.

Speaker #3: And this also was going to West Texas.

Speaker #4: That's correct. This is actually a different end user. Again, it's a Fortune 500 midstream customer down in the Permian Basin, so very similar situation.

Jim Deller: That is correct. This is actually a different end user. Again, it is a Fortune 500 midstream customer down in the Permian Basin, so very similar situation. Both of these are absolutely top-tier customers with lots of assets, lots of needs. These three are going down at the same customer, I believe to the same site. They are also very large M1 Series burners.

Speaker #4: Both of these are absolutely top-tier customers with lots of assets, lots of needs. These three are going down to the same customer, I believe, to the same site.

Speaker #4: They're also very large M1 series burners.

Speaker #3: So, same size. So these first, call it five, are all these?

Matthew Selinger: Same size. These first five are all these-

Speaker #4: They actually are. And for ClearSign, for efficiency, it's interesting that we have five of the same size burners: two going to Tulsa Heaters Midstream, and then three going to the second customer.

Jim Deller: They actually are. For ClearSign, for efficiency, it is interesting that we actually have five all the same size burners, two going to Tulsa Heaters Midstream and then three going to the second customer.

Speaker #3: Okay. And we'll talk about size in dollar amounts here in just a moment. But I know it makes sense to dive into this order too, because this came from a different heater manufacturer.

Matthew Selinger: Okay. We will talk about size, meaning dollar amounts here in just a moment. I know it makes sense to dive into this order too, because this came from a different heater manufacturer. I know we did not mention whom they were, but I know when you and I have talked about this, the processing of this order is a bit different for us. Is that correct?

Speaker #3: And I know we didn't mention who they were, but I know when you and I have talked about this, the processing of this order is a bit different for us.

Speaker #3: Is that correct?

Speaker #4: It is. So we've—well, first of all, for a long time, we've looked at the scalability and the growth of ClearSign and recognized that a royalty- or licensing-type operation gives the great ability to scale.

Jim Deller: It is. We have, for a long time, looked at the scalability and the growth of ClearSign and recognized that a royalty or licensing type operation gives the great ability to scale.

Speaker #4: This order is on that basis. So, this customer has the ability to manufacture burners. What they've actually purchased is the right to manufacture these burners themselves from ClearSign drawings.

Jim Deller: This order is on that basis. This customer has the ability to manufacture burners. What they have actually purchased is the right to manufacture these burners themselves from ClearSign drawings. We are not doing the manufacturing. We are going to be involved in the inspection. We will obviously make sure they work. But it is a first step in the direction of actually hopefully getting a royalty type business up and going that we can grow in the future.

Speaker #4: So, we are not doing the manufacturing. We're going to be involved in the inspection. We'll obviously make sure they work. But it's a first step in the direction of actually, hopefully, getting a royalty-type business up and going that we can grow in the future.

Speaker #3: Okay, which is very interesting. And again, just to clarify, this is the heater manufacturer that's going to be manufacturing the burners, not the end-use customer.

Matthew Selinger: Okay, which is very interesting. Again, just to clarify, this is the heater manufacturer that is going to be manufacturing the burners, not the end-use customer.

Speaker #4: Correct. Yes.

Speaker #3: Yep.

Jim Deller: Correct.

Matthew Selinger: Yep.

Speaker #3: Okay. So it is interesting, though, Jim, that ClearSign's been focused on technology—obviously focused on technology-level margins. Does this licensing model—I mean, how does that look at the profit?

Jim Deller: Yes.

Matthew Selinger: Okay. It is interesting, though, Jim, that ClearSign has been focused on technology, obviously focused on technology-level margins. Does this licensing model, how does that look at the profit? Secondly, is this a type of model that we will continue to pursue?

Speaker #3: And secondly, is this a type of model that we will continue to pursue?

Speaker #4: Yep. So, we have been able— we've leveraged our technology. These M1 series burners provide a lot of value to the customers in being able to be compliant with the tightest NOx regulations.

Jim Deller: Yep. We have been able, well, we leverage our technology. These M1 Series burners provide a lot of value to the customers in being able to be compliant with the tightest NOx regulations. We are able to maintain, and have maintained, the profit margin dollars on all of these burners, the Tulsa and the Midstream burners.

Speaker #4: We are able to maintain, and have maintained, the profit margin dollars on all of these burners—the Tulsa Heater midstream burners—and the orders that are going out under this licensing-type agreement.

Matthew Selinger: Yep.

Jim Deller: The orders that are going out under this licensing type agreement. So the margin to ClearSign remains the same. Obviously, on the licensing type agreements, the revenue is less because rather than ClearSign having the burners fabricated by a third-party fabricator,

Speaker #4: So the margin to ClearSign remains the same. Obviously, on the licensing-type agreements, the revenue is less because, rather than ClearSign having the burners fabricated by a third-party fabricator and shipping those to the client, the client now is doing the fabrication themselves.

Matthew Selinger: Yep

Jim Deller: shipping those to the client, the client now is doing the fabrication themselves. So the revenue is reduced. The profit margin dollars

Speaker #4: So the revenue is reduced; the profit margin dollars are the same whether we're selling the manufactured burner or whether it's being done under a royalty-style arrangement.

Matthew Selinger: Got it.

Jim Deller: are the same whether we are selling the manufactured burner

Matthew Selinger: Yep

Jim Deller: or whether it is being done under a royalty style arrangement.

Speaker #3: Okay, great. And then just to kind of round out these six orders, just weeks ago we did receive another M-series from, again, Tulsa Heaters Midstream.

Matthew Selinger: Okay. Great. Just to kind of round out these six orders then, just weeks ago, we did receive another M-Series from, again, Tulsa Heaters Midstream.

Speaker #4: Yes.

Speaker #3: And this order was a little bit different. Is that correct?

Jim Deller: Yes.

Matthew Selinger: This order was a little bit different. Is that correct?

Speaker #4: This is a smaller heater, and for them, a smaller burner for us, but going down to that same site and the same client as the first two.

Jim Deller: This is a smaller heater for them, a smaller burner for us, but going down to that same site and the same client as the first two.

Speaker #3: Great. And so let's talk about when we talk about smaller, larger, M1, let's kind of break these down, if you don't mind. So what would the price range kind of be for the M-series?

Matthew Selinger: Great. Let's talk about, when we talk about smaller, larger, M1, let's kind of break these down, if you don't mind.

Jim Deller: Sure

Matthew Selinger: What would the price range kind of be for the M-Series? Maybe talk about through the model size, M1 or an M25.

Speaker #3: And maybe talk about through the model size, M1 or an M25.

Speaker #4: Yep. So, the M1 is our top-tier, high-tech burner. It has great value to the customer in the NOx emissions it allows them to achieve. So, the price point for the M-series is the luxury version.

Jim Deller: Yep. The M1 is our top-tier high-tech burner. It has great value to the customer in the NOx emissions it allows them to achieve. The price point for the M-Series is luxury version.

Speaker #4: It's higher. The M25 version of the burner is slightly detuned. It's targeting a less stringent NOx requirement. It is priced to be competitive with some other burner products on the market.

Matthew Selinger: Yep.

Jim Deller: It is higher. The M25 version of the burner is a slightly detuned, it is targeting a less stringent NOx requirement. It is priced to be competitive with some other burner products on the market. The M25 pricing is less than the M1.

Speaker #4: So the M25 pricing is less than the M1. For example, the large M1s will go up north of $200,000 per burner. And down at the bottom end, the small by the bottom end, the small M25s are going to run down probably in the $40,000 per burner.

Matthew Selinger: Yep.

Jim Deller: For example, the large M1s will go up north of $200,000 per burner.

Matthew Selinger: Yep.

Jim Deller: Down at the bottom end, the small M25s are going to run down probably in the $40,000 per burner.

Speaker #3: Okay. And five of these were these large M1s, correct?

Matthew Selinger: Okay. These-

Jim Deller: Range

Matthew Selinger: and five of these were these large M1s, correct?

Speaker #4: Yeah. These are—they're not the largest M1s. So I gave a north of $250,000, but these were just shy of $200,000 each as a complete burner. Obviously, under the royalty arrangement, that pricing is less, but the margin is still the same.

Jim Deller: Yeah. These are, they're not the largest M1, so I gave it north of 250, but these were just shy of 200 each as a complete burner. Obviously, under the royalty arrangement, that pricing is less, but the margin is still the same.

Speaker #3: Okay, so the two things that go into the cost or the sale price are, again, the model. So, on the top end, right, would be large M1.

Matthew Selinger: Okay. The two things that go into kind of, call it the cost of these, or the sale prices in the model. So on the top end, would be large M1.

Speaker #4: Yep.

Speaker #3: You said 200,000-ish or north, and at the bottom of that range would be the smaller M25. Okay, so people can at least understand what the range is.

Jim Deller: Yep.

Matthew Selinger: You said 200,000-ish or north. And at the bottom of that range would be the smaller M25.

Jim Deller: Yes.

Matthew Selinger: Okay. People can at least understand what the range.

Speaker #4: That's right. And we've given, without any details, general guidance for $100,000 per burner. That's probably representative of the whole range, but typically what we've identified as a large M1 is obviously towards the upper end of that range.

Jim Deller: Yeah, that's right. We've given, without any details.

Matthew Selinger: Yeah

Jim Deller: General guidance, 100,000 per burner. That's probably representative of the.

Matthew Selinger: Yep

Jim Deller: Whole range. But typically, when we can identify what they are as a large M1, it's obviously towards the upper end of that range.

Speaker #3: And then in lieu of these recent sales, Jim, how does that continued pipeline still look?

Matthew Selinger: And then in lieu of these recent sales, Jim, how does that continued pipeline still look?

Speaker #4: It still looks really boring. We continue to get inquiries in. It's a little difficult to answer specifically because what we're seeing is these clients have familiarity now with ClearSign burners.

Jim Deller: It still looks really important. We continue to get inquiries in. It is a little difficult to answer specifically because what we are seeing is these clients have familiarity now with ClearSign burners. And they include those burners in their proposals to customers without necessarily coming to us and getting quotes because they already have quotes for the size they use commonly.

Speaker #4: And they include those burners in their proposals to customers without necessarily coming to us and getting quotes, because they already have quotes for the sizes they use.

Speaker #4: Commonly, there are quotes out there to customers that we actually don't even know about. And we're seeing that now in conversations, where suddenly things will move very quickly on projects that we're not even tracking, because we actually don't know every application that our heater manufacturer customers are using ClearSign burner technology in their conversations with their end-user customers.

Jim Deller: So there are quotes out there to customers that we actually do not even know about, and we are seeing that now in conversations. So suddenly things will move very quickly on projects that we are not even tracking because we actually do not know every application that our heater manufacturer customers are using ClearSign burner technology in their conversations with their end user customers.

Speaker #3: Got it. So even if we were still to attach maybe that proposal pipeline of 50, ballpark, that's still a safe number. Okay. We'll do it.

Matthew Selinger: Got it. So even if we were still to attach maybe that proposal pipeline of 50 ballpark, that is still a safe number?

Jim Deller: I think that's a good number, yes.

Speaker #3: So then, let's turn to process burners, Jim, and some of the bigger projects that we've had already in process. We previously announced an order for the next phase of a 32-burner process burner project for a California refinery.

Matthew Selinger: We'll do it. Let's turn to process burners, Jim, and some of the bigger projects that we've had already in process. We previously announced an order for the next phase of a 32 burner process burner project for a California refinery.

Speaker #3: How is this project progressing? And maybe give a little color on this one as well.

Jim Deller: Yes.

Matthew Selinger: How is this project progressing? Maybe give a little color on this one as well.

Speaker #4: Yep. Yeah, this one's right on track. So, we actually announced a detailed engineering and testing order for this project, and that work is going well.

Jim Deller: Yep. Yeah, this one's right on track. We actually announced a detailed engineering and testing order for this project. That work is going well. Obviously, the burner went through computer modeling and the engineering. It looks great. The client's seen it. They're all on board. This burner's in the process of being manufactured and is scheduled to go in the test furnace within the coming weeks. We'll actually get to see this burner in action for the first time. The reason I say for the first time is this is actually a different burner to anything we've put out before. The flexible fuel technology that we developed under the SBIR grant gave us a burner platform.

Speaker #4: Obviously, the burner went through computer modeling and the engineering. It looks great. The client's seen it, they're all on board. Well, this burner is in the process of being manufactured, and it's scheduled to go in the test furnace within the coming weeks.

Speaker #4: So we've actually got to see this burner in action for the first time, but the reason I say 'for the first time' is this is actually a different burner than anything we've put out before.

Speaker #4: The flexible fuel technology that we developed under the SBIR grant gave us a burner platform that was highly configurable. We've talked about this a lot on previous calls.

Matthew Selinger: Yeah

Jim Deller: that was highly configured. We have talked about this a lot on previous calls.

Matthew Selinger: Yeah.

Speaker #4: This burner is a very different burner. This is a long, thin burner that's designed to run the flames up the wall of the client's heater.

Jim Deller: This burner is a very different burner. This is a long, thin burner that is designed to run the flames up the wall of the client's heater.

Speaker #3: Got a flat flame?

Matthew Selinger: Called a flat flame?

Speaker #4: It's generally called a flat flame burner, so we'll be getting this in the test furnace. We'll be running it up, and the client will be able to see it when that's all proved and done.

Jim Deller: It is generally called a flat flame.

Matthew Selinger: Yep

Jim Deller: burner because the So we will be getting this in the test furnace, we will be running it up, and the client will be able to see it. When that is all approved and done, we then expect to roll into the manufacturing phase, start building these burners for the first heater retrofit out in California.

Speaker #4: We then expect to roll it into the manufacturing phase and start building these burners for the first heater retrofit out in California.

Speaker #3: But in this new application, I mean, it grows our addressable market twofold, right? One is somewhat immediate, and two, doesn't this kind of take us down another potential pathway?

Matthew Selinger: And this new application, it grows our addressable market in twofold. One is somewhat immediate, and two, does this kind of take us down another potential pathway?

Speaker #4: Yeah. So, one of the nice things with the configurable burner technology is it allows us to put burners into types of heaters that we've never been able to address with the ClearSign burners before.

Jim Deller: Yeah. One of the nice things with the configurable burner technology is it allows us to put burners into types of heaters that we have never been able to address with the ClearSign burners before. So in this case, heaters needing long, flat burners. That increased our addressable market. Suddenly a whole range of new heaters become good targets for ClearSign technology.

Speaker #4: So in this case, heaters needing long, flat burners—that increased our addressable market. Suddenly, a whole range of new heaters become good targets for ClearSign technology.

Speaker #4: Beyond that, looking further to the future, there are some very large, more high-tech, higher-temperature processes, particularly delayed coker furnaces, and then into ethylene furnaces that commonly have flat flame burners.

Jim Deller: Beyond that, looking further to the future, there are some very large, more high tech, higher temperature processes, particularly delayed coker furnaces and then into ethylene furnaces, that commonly have flat flame burners. Now, these burners that we are supplying for this order going into the refinery, you cannot pick those up and put those directly into those processes. There needs to be some more development. But this is a very significant step in that direction. One, technically in developing the burners, I think also just showing the rest of the market that our burner technology is adaptable and it can be developed into these new applications. They are really important because if you look at those processes, rather than being a single heater, if you get into something like an ethylene site, there might be seven or eight or more heaters side by side, all exactly the same.

Speaker #4: Now, these burners that we're supplying for this order going into the refinery—you cannot pick those up and put those directly into those processes. There needs to be some more development.

Speaker #4: But this is a very significant step in that direction. One, technically, in developing the burners; and I think also just showing the rest of the market that our burner technology is adaptable and that it can be developed into these new applications.

Speaker #4: They are really important because if you look at those processes, rather than being a single heater, if you're getting something like an ethylene site, there might be seven or eight or more heaters side by side, all exactly the same.

Speaker #4: So, an order of burners going into that site may be in the hundreds, rather than the tens of burners.

Jim Deller: So an order of burners going into that site may be in the hundreds rather than the tens of burners.

Speaker #3: In the twenties. Yeah. Okay. Wow. Well, then, switching projects, the other one we've talked about is a 36-burner order slated to go into Texas.

Matthew Selinger: Tens, twenties. Yeah. Well then, switching projects, the other one we have talked about is a 36 burner order slated to go into Texas, and this too differs. Would you mind giving a little bit of a description of how this one differs and then maybe an update on the status of this project?

Speaker #3: And this too differs. So would you mind giving a little bit of a description of how this one differs, and then maybe an update on the status of this project?

Speaker #4: Sure. Yeah. So these, again, these burners are different. They're different in a different way. These are round burners, but they fire horizontally, hatching in opposite walls on either side of a heater.

Jim Deller: Sure. Yep. So again, these burners are different. They are different in a different way. These are round burners, but they are fired horizontally, actually in opposite walls on either side of a heater. So these burners are firing in towards each other. Again, there are a significant number of heaters of this configuration. Showing we can do this I think is starting to open up that market for us. A slightly different update on this project. We had the initial order for the engineering and the CFD. That has gone very well. The burners look great. Everything is looking good. Unfortunately, there has been some delay in the client financing. It is something internal to the company. I cannot really say exactly what is going on there. But the news to us is this project is on hold at this time, waiting on resolution of that financing.

Speaker #4: So, these burners are firing in towards each other. Again, there are a significant number of heaters with all these configurations. Showing we can do this, I think, is starting to open up that market for us.

Speaker #4: A slightly different update on this project: we had the initial order for the engineering and the CFD. That has gone very well. The burners look great.

Speaker #4: Everything's looking good. Unfortunately, there's been some delay in the client financing. It's something in terms of the company. I can't really say exactly what is going on there, but the news to us is this project is on hold at that financing.

Speaker #4: So we will look forward to getting going again. We'll have to keep everyone posted, but at this point, that project has progressed.

Jim Deller: We will look forward to getting going again. We will have to keep everyone posted for that. At this point, that project has progressed

Speaker #3: Okay, all right. And then last, but I'll definitely say not least, is the 26-burner order going to a petrochemical company on the Gulf Coast.

Matthew Selinger: Okay. All right.

Jim Deller: as far as it will today.

Matthew Selinger: Last, but I'll definitely say not least, is the 26 burner order going to a petrochemical company on the Gulf Coast. We've talked about this one for some time.

Speaker #3: We've talked about this one for some time. I think everybody's been awaiting the installation and firing up of this project. Where is the status of this?

Jim Deller: Yep.

Matthew Selinger: I think everybody's been awaiting the installation and firing up of this project. Where is the status of this?

Speaker #4: It's right on track. We are currently going through training for the site-specific requirements of the people going down to the job site. We're working through some last-minute spare parts the client likes to have on hand, directly with them.

Jim Deller: It is right on track. We are currently going through training for the site-specific requirements with the people going down to the job site. We are working through some last-minute spare parts the client likes to have on hand directly with them. Looking forward to the installation and the startup. Everything is right on track.

Speaker #4: Looking forward to the installation and the startup. So, everything is right on track.

Speaker #3: And I know you said to me too, and we said on the last call, that we believe there are a lot of people caught in the industry, including prospects and other customers, that are watching this.

Matthew Selinger: I know you said to me, too, and we said on last call, that we believe there is a lot of people caught in the industry, including prospects, including other customers that are watching this.

Speaker #3: So yes. With that, let's talk about what we think about the pipeline for the process burners. How do you feel about how that pipeline looks?

Jim Deller: Yes, absolutely.

Matthew Selinger: Yeah. With that, let us talk about then, what do you think about the pipeline for the process burners? How do you feel about how that pipeline looks?

Speaker #4: Yeah, I'm really excited. I mean, just to ground us a little bit, we have a number of projects in progress. Obviously, the Gulf Coast project is the most advanced one that's waiting to be installed and started up.

Jim Deller: Yeah. I am really excited. Just to round this up a little bit, we have a number of projects in progress. Obviously, the Gulf Coast project is the most advanced one that is waiting to be installed and started up. We have our refinery project going out to California we have just talked about, and some other startups. Just amongst three sites that are starting up right now, we have been told of over 20 heaters that just three customers are planning to bring to ClearSign at least four proposals. There is a bird in the hand, there is a bird in the bush.

Speaker #4: We've got our refinery project going out to California. We've just talked about some other startups. But just among the three sites that are starting up right now, we have been told of over 20 heaters that just three customers are planning to bring to ClearSign, with at least four proposals.

Speaker #4: So, it's a bird in the hand, it's a bird in the bush. They're not orders that we have, but there is a lot of potential work waiting for the experience that's going to be obtained via customers in seeing these projects started up.

Matthew Selinger: Right.

Jim Deller: They are not orders that we have, but there is a lot of potential work waiting for the experience that is going to be obtained by our customers in seeing these projects started up.

Speaker #3: And Jim, if you were to—so let's highlight that again. You mentioned just three customers. Talk about a low number—20 heaters amongst the three of them.

Matthew Selinger: Jim, let us highlight that again. You mentioned just three customers talking about low number, 20 heaters a month to three of them, and I know we have highlighted one on past calls, just themselves having about 10. If you attach a dollar ballpark to a heater in this scenario.

Speaker #3: And I know we've highlighted one on past calls, just themselves having about 10. But what would a dollar—or did you touch a dollar ballpark to the heater in this scenario?

Speaker #4: Yeah, I mean, as I said, heaters vary greatly.

Jim Deller: Yeah. As you can see, the heaters vary greatly.

Speaker #3: In terms of burners? Yeah.

Matthew Selinger: to the burners, yeah.

Speaker #4: In their size. But I think, seeing that they come with CFD and engineering, and even being conservative—I mean, if you say a round number of $2 million, on a revenue basis, per heater, I think that's a safe number.

Jim Deller: in their size. But I think just seeing that they come with CFD on the engineering and even being conservative, if you say a round number of $2 million on a revenue basis,

Matthew Selinger: Yeah

Jim Deller: per heater, I think that's a safe number.

Speaker #3: Okay. And that’s just a snapshot of what you’re seeing of kind of the advanced conversations?

Matthew Selinger: Okay. And that's just a snapshot of what you're seeing of the advanced conversations.

Speaker #4: Yes.

Speaker #3: Okay, all right. Well then, let's move to the Flare product line. In the past, we've talked about how we have some initial installations, some large full-scale products being installed.

Jim Deller: Yes.

Matthew Selinger: Okay. All right. Well then, let's move to the Flare product line. In the past we've talked about how we have some initial installations, some large full-scale products being installed. What's a good update on the Flare product line?

Speaker #3: What's a good update on the Flare product line?

Speaker #4: This has been really active for us this last quarter. So the first update is we have a project out in California where we replaced the burner element in an existing flare.

Jim Deller: This has been really active for us this last quarter. The first update is we have a project out in California where we replaced the burner element in an existing Flare. This client had purchased a Flare from a competitor. Flare didn't work properly. They came to us to fix it, basically. We sold a ClearSign Flare burner to install into that Flare. That installation went fine. That project has now started up. It's actually gone through the source testing. We do not have the formal test report back yet. However, we were there when they took the data, as was the client, and everyone was really pleased with the results of that.

Speaker #4: So this client had purchased a flare from a competitor. The flare didn't work properly, so they came to us to fix it, basically. We sold a ClearSign flare burner to install into that flare.

Speaker #4: That installation went fine. That project has now started up. It's actually gone through the source testing. We do not have the formal test report back yet.

Speaker #4: However, we were there when they took the data, as was the client, and everyone was really pleased with the results of that. So, expecting really good news.

Matthew Selinger: It went really well, yeah.

Jim Deller: We're expecting really good news. That client on a different site is currently receiving the parts for our first full system Flare. This is a Flare that we're building from the ground up for this client. The stack and the bulk of the equipment is there on site. It's going through the installation process. There's still a little bit more to arrive, but that will be starting up in the coming months. That client, we believe, has other permits in process that they have identified for ClearSign equipment.

Speaker #4: That client, on a different site, is currently receiving the parts for our first four-system Flare. This is a Flare that we're building from the ground up for this client.

Speaker #4: The stack and the bulk of the equipment are there on site. It's going through the installation process. There's still a little bit more to arrive, but that will be starting up in the coming months.

Speaker #4: That client, we believe, has other permits in process that they have identified for ClearSign equipment.

Speaker #3: And on the Flare product line, can we talk about kind of the evolution, for lack of a better term, of kind of the pricing here?

Matthew Selinger: And then on the Flare product line, can we talk about the evolution, for lack of a better term, of the pricing here, I am going to say, in terms of the project and the project scope? We start off, again, for a lot of our products saying, "Hey, ballpark $100,000.

Speaker #3: I'm going to say, in terms of the project and the project scope—right? We start off, again, for a lot of our products, saying, "Hey, ballpark, $100,000," right?

Speaker #3: And that was.

Speaker #4: And for the flares especially, this is really important. So, in using the reference of this first project, where we sold a ClearSign special burner going into the flare, just that flare retrofit was—I forget—the $150,000, $200,000, somewhere in that ballpark.

Jim Deller: And for the Flares especially, this is really important.

Matthew Selinger: Yeah.

Jim Deller: Using the reference of this first project where we sold a ClearSign special burner going into the Flare, just that Flare retrofit was, I forget, $150,000, $200,000, somewhere in that ballpark. But since then, we have been able to develop this product line into what we call a full system.

Speaker #4: But since then, we've been able to develop this product line into what we've called a full system. So, rather than selling just the burner, we're now selling the stack, the controls, the blower, and everything else.

Matthew Selinger: Yep.

Jim Deller: Rather than selling just the burner, we are now selling the stack, the controls, the blower, and everything else. And those have typically ranged, based on the proposals, in the $750,000 to $1 million range. That will include the one that is currently being installed and shipped to that client site. Looking through our proposal listing, they actually run to about $1.5 million as the largest we have quoted. With that reason, with the quotes we are getting, it has actually turned into a very meaningful product line for ClearSign. And given the interest we are getting, it is turning into a nice revenue stream as well.

Speaker #4: And those have typically ranged, based on the proposals, in the $750,000 to $1 million range. That will include the one that's currently being installed and shipped to that client's site.

Speaker #4: Looking through our proposal listing, they actually went up to about $1.5 million as the largest we got quoted. So, it's with that reason— with the quotes we're getting— it's actually turned into a very meaningful product line for ClearSign. And given the interest we're getting, it's turned into a nice revenue stream as well.

Speaker #3: Yeah, it doesn't take many of these to kind of move the needle for us.

Matthew Selinger: Yeah. It doesn't take many of these to move the needle for us.

Speaker #4: Exactly.

Speaker #3: Yes. Yeah. Well then, let's pull back. We've talked about multiple product lines. Jim, if I was to ask you to describe, how do you feel about the overall status of ClearSign's business?

Jim Deller: Exactly.

Matthew Selinger: Yes. Yeah. Well, then let's pull back. We've talked about multiple product lines, Jim. If I was to ask you to describe how you feel about the overall status of ClearSign's business here, what is your temperature? How do you feel about it?

Speaker #3: What is your temperature? How do you feel about it?

Speaker #4: I am really optimistic. I mean, just going from rather recent discussion here, getting these M1 burner projects into these top-tier clients down in the Permian Basin, and those clients see our technology and get to favor those burners, and they start to pull ClearSign burner technology through with their heater orders.

Jim Deller: I am really optimistic. Just going from the recent discussion here, getting these M1 burner projects down into these top tier clients down in the Permian Basin. When those clients see our technology and get to favor those burners and they start to pull ClearSign burner technology through with their heater orders, this is a really big opening into this market. So that's a very big development.

Speaker #4: I mean, this is a really big opening into this market, so that's a very big development.

Speaker #3: And that was really only two customers, right? I mean, six.

Matthew Selinger: And that was only two customers, right? I mean, six.

Speaker #4: Yes.

Speaker #3: I mean, we basically went three and three. Now the orders came in differently, but it's two large customers—basically took three and three at the same site.

Jim Deller: Yes.

Matthew Selinger: Basically went three and three. The orders came in differently, but it is two large customers.

Jim Deller: Yeah.

Matthew Selinger: Basically took three and three at the same site. So you can tell there is the ability, the appetite.

Speaker #3: So, I mean, you could tell there's the ability and the appetite.

Speaker #4: Yeah. These clients have many sites and a lot of assets down in that region. These are very big customers. In addition to that, hopefully, the ability to develop a royalty-style business and expand on that is very good news for ClearSign.

Jim Deller: Yeah, these clients have many sites and a lot of assets down in that region. These are very big customers. In addition to that, hopefully the ability to develop a royalty sale business and expand on that is very good news for ClearSign. We talked about the Flares.

Speaker #4: We talked about the Flares and, obviously, this product line, and it's not only that one customer. We have bids out to other customers as well.

Matthew Selinger: Yeah.

Jim Deller: This product line, and it is not only that one customer, we have bids out to other customers as well. Getting these startups, developing these into full system projects, the Flare product line is getting very meaningful for us.

Speaker #4: Sorry. Getting these startups, developing these into full-system projects—the Flare product line is getting very meaningful for us. And then I can't say enough about the process burners.

Matthew Selinger: Yeah.

Jim Deller: I can't say enough about the process burners. We obviously have other proposals out with the process burners, but the big news here is just getting these startups out there and what we're hearing from the customers on their plans for working with ClearSign once they get their first hands-on experience of the equipment themselves is really encouraging for long-term revenue for ClearSign.

Speaker #4: We have obviously we have other proposals out with the process burners, but the big news here is just getting these startups out there and what we're hearing from the customers on what on their plans for working with ClearSign, once they get their first hands-on experience of the equipment themselves, is really encouraging for long-term and long-term revenue for ClearSign.

Speaker #3: Well then, so what should investors focus on for the rest of the year? I know we've highlighted this, but what should people be looking at?

Matthew Selinger: Well then, so what should investors focus on for the rest of the year? I know we've highlighted this, but what should people be looking at?

Speaker #4: So, first thing is really easy. This next startup is going to be really important and extremely meaningful for ClearSign. So we're all very excited that right now it's scheduled to be in October.

Jim Deller: Yeah. So first thing's really easy. This Texas startup is going to be really important and extremely meaningful for ClearSign, so we're all very excited. That right now is scheduled to be in October, and we will let everyone know as soon as we get results from that. Beyond that, we've got the rather large Flare that's being installed. We'll get that started up. There's new permits we believe in progress, so we're expecting those to get completed. After that, we're expecting more orders from the Flare product line. Keep your eyes open for M Series. The M Series turn quite quickly. We don't always get the involvement upfront on the orders when they come in, and they'll go from not knowing about it to finalizing details and an order very quickly. So I think there's certainly potential for more M Series work coming in as well.

Speaker #4: And we will let everyone know as soon as we get results from that. Beyond that, we've got the large flare that's being installed. We'll get that started up.

Speaker #4: There are new permits we believe are in progress, so we're expecting those to get completed. After that, we're expecting more orders from the Flare product line.

Speaker #4: And it's, keep your eyes open for M-series. I mean, the M-series turn quite quickly. We don't always get the involvement up front on the orders when they come in, and they'll go from not knowing about it to finalizing details and an order very quickly.

Speaker #4: So, I think there's certainly potential for more M-series work coming in as well.

Speaker #3: Okay. Well, then, before we turn over to Q&A, Jim, is there any other commentary you'd like to give?

Matthew Selinger: Okay. Well then, before we turn over to Q&A, Jim, is there any other commentary you'd like to give?

Speaker #4: I would. I think, for everyone, just to understand what we're doing, but also for a shout-out to the ClearSign team— we are extremely busy this quarter.

Jim Deller: I would. I think for everyone just to understand what we're doing, but also for a shout-out to the ClearSign team. We are extremely busy this quarter. We have the things we have talked about. We have the startup coming up in Texas. We have the Flare installation for startup going on in California. We have a lot of testing going on. We actually have some other startups. We are to the point of scheduling our resources very carefully to make sure that we keep all this work covered. We have a lot of actual work getting done this quarter. With that, really from my point is just a shout-out to the ClearSign team. They are doing a great job. They are going to be extremely busy with a lot of site work and startups and testing. I just want to thank them for their dedication.

Speaker #4: We have the things we've talked about. We've got the startup conference in Texas. We've got the flare installation, the startup going on in California.

Speaker #4: We have a lot of testing going on. We actually have some other startups, so we are to the point of scheduling our resources very carefully to make sure that we keep all of this work covered.

Speaker #4: I mean, we have a lot of actual work getting done this quarter. So with that, really, from my point, it's just a shout-out for the ClearSign team.

Speaker #4: They're doing a great job. They're going to be extremely busy with a lot of site work, startups, and testing. I just want to thank them for their dedication.

Speaker #4: They're all very excited and very focused on what's ahead of us.

Jim Deller: They are all very excited and very focused on what is ahead of us.

Speaker #3: Fantastic. So with that, we're going to go ahead and open it up for Q&A. So, operator, would you mind taking a moment and polling?

Matthew Selinger: Fantastic. With that, we are going to go ahead and open it up for Q&A. Operator, would you mind taking a moment and polling, and we will segue into the question and answer period.

Speaker #3: And we'll segue into the question-and-answer period.

Speaker #5: Certainly. At this time, we'll be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad.

Operator: Certainly. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions. Once again, please press star one if you have a question or a comment. The first question is from Sameer Joshi with H.C. Wainwright. Please proceed.

Speaker #5: A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue.

Speaker #5: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions.

Speaker #5: Once again, please press star one if you have a question or a comment. The first question is from Sameer Josi with HC Wainwright. Please proceed.

Speaker #6: Hey, good afternoon, everyone. Thanks, Jim, Brent, Matthew, for taking my questions. I would like to focus on the M1 series. Here, you have three burners to be delivered in the third quarter.

Sameer Joshi: Hey, good afternoon, everyone. Thanks, Jim, Brent, Matthew, for taking my questions. I would like to focus on the M1 Series here. You have three burners to be delivered in Q3 and then two plus one to be delivered in Q4. I would like to understand the difference between the core M1 versus just a smaller M1 Series burner. What is the difference there in size or even in pricing?

Speaker #6: And then two plus one to be delivered in the fourth quarter. I would like to understand the difference between the core M1 versus just a smaller M1 series burner.

Speaker #6: What is the difference there in size, or even in pricing?

Speaker #4: Thank you, Sameer. So the so I've got a few a few things that differentiate. We've generally called the ClearSign core itself as the really the ClearSign IP that is the structure of the burner that enables us to get the nox emissions that we really utilize across our Flare burners, our process burners, and the M-series.

Jim Deller: Thank you, Sameer. There are a few things that differentiate. We've generally called the ClearSign Core itself as the, really the ClearSign IP. That is the structure of the burner that enables us to get the NOx emissions that we really utilize across our Flare burners, our process burners, and the M Series. As your question relates to the M Series burners, the M1 Series has a very high-tech arrangement of nozzles within the burner to control the mixing that controls the chemistry that allows us to get the NOx emissions down into the low single-digit range. The M25, which is the sister product line that is a more price-competitive product, does not get down to the same NOx levels. But we've achieved that by simplifying the burner design. So essentially, it doesn't have all of the sophisticated high-tech blow controls in the M25.

Speaker #4: As your question relates to the M-series burners, the M1 series has a very high-tech arrangement of nozzles within the burner to control the mixing, which controls the chemistry that allows us to get the NOx emissions down into the low single-digit range.

Speaker #4: The M25, which is the sister product line that is a more price-competitive product, does not get down to the same NOx levels, but we've achieved that by simplifying the burner design.

Speaker #4: So essentially, it doesn't have all of these sophisticated, high-tech flow controls in the M25. If you look at it just from a fabrication perspective, there's less metal in the M25, and there's less work.

Jim Deller: If you look at it just from a fabrication perspective, there's less metal in the M25 and there's less work. From my perspective, when pricing, I say it does not include all of the very high-tech IP that we incorporate in the M1. With the M1, the M1 actually has a unique place in the market, and we believe that provides an extreme value to the customer because it allows them to avoid things like the catalytic conversion units that they would need otherwise to reduce their NOx levels down to these new bond levels that we're starting to see.

Speaker #4: From my perspective, when pricing, I'd say it does not include the, or all of the, very high-tech IP that we incorporate in the M1.

Speaker #4: And with the M1, that allows it to—the M1 actually has a unique place in the market. We believe that provides extreme value to the customer because it allows them to avoid things like the catalytic conversion units that they would need otherwise to reduce their NOx levels down to these new low levels that we're starting to see.

Speaker #6: Understood. So, we can visualize the California Burner 32-burner project, and we can visualize some of the other projects. But in the midstream, the order sizes are two and three. How should we visualize them being utilized on-site, and what is the maximum size of order, in terms of numbers—like four, five, six, or fifteen—that you could expect from a single site?

Sameer Joshi: Understood. So we can visualize the California burner, 32 burner project. We can visualize some of the other projects. But in the midstream, the order sizes are two and three. How should we visualize them being utilized on-site, and what is the maximum size of order in terms of numbers, like four, five, six, or 15, that you could expect from a single site?

Speaker #4: Okay. Yeah, very interesting. Yeah, very interesting question. So, one of the key differences with the M-series applications in the midstream industry is that those heaters tend to be relatively small, simple heaters with a single burner.

Jim Deller: Okay.

Sameer Joshi: For the M1.

Jim Deller: Very interesting. Very interesting question. One of the key differences with the M-Series applications in the midstream industry is that those heaters tend to be a relatively small, simple heater with a single burner in them. When we sell one of these midstream burners to a heater company like Tulsa Heaters Midstream, that is going into an individual burner. When we have an order for 2 burners or 3, that means the client is selling 2 different heaters or 3 different heaters to that same customer. They will typically sit side by side on that customer's site. When you ask about the size of the order, we have inquiries for just shy of 30 burners in a single batch for midstream heaters. There are opportunities out there where there are a lot of heaters being considered and requiring the same technology for future projects.

Speaker #4: In them. So when we sell one of these midstream burners to a heater company, like Tulsi's Midstream, that is going into an individual burner.

Speaker #4: When we have an order for two burners or three, that means the client is selling two different heaters or three different heaters to that same customer. They will typically sit side by side on that customer's site.

Speaker #4: And when you ask about the size of the order, we have inquiries for just shy of 30 burners in a single batch.

Speaker #4: For midstream heaters, there are opportunities out there where a lot of heaters are being considered and requiring the same technology for future projects.

Speaker #4: So there's definitely opportunity for large, multi-burner projects just in the midstream industry, that typically go one burner into an individual heater. So that means there's a lot of small heaters in that order, rather than multiple burners going into a single heater.

Jim Deller: There is definitely opportunity for large multi-burner projects. Just in the midstream industry, they are typically going one burner into an individual heater, so that means there is a lot of small heaters in that order rather than multiple burners going into a single heater, as we would see in the refinery heater process burner product line.

Speaker #4: As we would see in the refining heater process burner product line.

Speaker #6: Understood. That was helpful. So, I mean, clearly you're accelerating your activity—your core activity is increasing. You're delivering products scheduled for Q3, Q4, even more.

Sameer Joshi: Understood. That was helpful. Very clearly, you are accelerating your activity. Your quote activity is increasing. You are delivering products scheduled for Q3, Q4, and more. How should we look at the run rate exiting 2026? Then maybe I can ask, when can we see double-digit million top-line revenues? Is it 2027 happening, possibility, or is it a later 2028 kind of a timeline for seeing $10-plus million in revenues?

Speaker #6: How should we look at the run rate exiting 2026? And then, maybe I can ask, when can we see double-digit million top-line revenues? Is a 2027 happening a possibility, or is it more of a 2028 kind of timeline for seeing $10-plus million in revenues?

Speaker #4: Yeah, I think we're all looking at the same thing. I mean, I don't think it's reasonable to give exact numbers, because obviously we're speaking about a lot of future orders and things that we don't control.

Jim Deller: Yeah. I think we are all looking at the same thing. I do not think it is reasonable to give exact numbers because obviously a lot of, we are speaking a lot of future orders and things that we do not control. What we are looking at this point, and I really believe is meaningful towards those double-digit revenues, is the interest and the proposal backlog and inquiry backlog we are seeing, especially on the process burners, that we believe is going to be opened up as we get these process burner installations up and running, especially that project down on the Gulf Coast.

Speaker #4: What we're looking at at this point, and I really believe is meaningful toward those double-digit revenues, is the interest and the proposal backlog and inquiry backlog we're seeing, especially on the process burners. We believe this is going to open up as we get these process burner installations up and running, and especially that project down on the Gulf Coast.

Speaker #4: Given that we're seeing interest in the flares in the average of a million-dollar range, and then the interest we're seeing in the midstream, I think it's feasible that we could be up to a run rate of $6 to $7 million at least on sales on the midstream and the flare product line alone.

Jim Deller: Given that we are seeing interest in the Flares in the average of a million-dollar range, and then the interest we are seeing in the midstream, I think it is feasible that we could be up to a run rate of 6 to 7 million, at least on sales on the midstream and the Flare product line alone. Then seeing that interest in the process burners that we believe is going to get activated as we get these big projects up and running. I think there is certainly potential to get into those numbers you are talking about, at least on the sales. As we bring the orders in, we have to convert those to revenue over time, and that is probably the biggest question, is just the timeline. But in terms of the opportunity, I am very confident that a double-digit million opportunity is there for ClearSign.

Speaker #4: And then seeing that interest in the process burners that we believe is going to get activated as we get these big projects up and running.

Speaker #4: I think there's certainly potential to get into those numbers you're talking about, at least on the sales. As we bring the orders in, we have to convert those to revenue over time.

Speaker #4: And that's probably the biggest question—just the timeline. But in terms of the opportunity, I'm very confident that a double-digit million opportunity is there for ClearSign.

Speaker #6: Yeah. Understood. Just one last one maybe. This and sort of it dovetails into what you just spoke about, but for the 32 burner the flat burner I think it is a refinery retrofit there is the physical testing going on right now and just wanted to see what the timeline of that is I mean, I know you may not be in control of that, but in terms of what actual physical testing is happening and how long that would take, before you start delivering the 32 burners, and maybe also let us know what the cadence of that will be.

Sameer Joshi: Yeah, understood. Just one last one, maybe. It sort of dovetails into what you just spoke about, but for the 32 burner, the flat burner, I think it is a refinery retrofit. There is physical testing going on right now, and just wanted to see what the timeline of that is. I know you may not be in control of that, but in terms of what actual physical testing is happening and how long that would take before you start delivering the 32 burners. Maybe also let us know what the cadence of that will be. Will it be three burners a quarter, or will it be one whole 32 burner order that will have to be delivered in a few months' time?

Speaker #6: Will it be, like, three burners a quarter, or will it be one whole 32-burner order that will have to be delivered in a few months' time?

Speaker #4: Yeah, so I'll tell you what I know. At this time, as you said, we're not in control of all of those dates. But the burner for testing is being manufactured at present.

Jim Deller: Yeah. So I will tell you what I know. At this time, as you said, we are not in control of all of those dates. But the burner for testing is being manufactured at present. It is due to be installed in the next couple of weeks. We have got to get the test burners prepared. Then typically, the run-in time, and we have to coordinate the witness with the customer, will take 3 to 4 weeks. So I am expecting the customer to witness that burner in the early October timeframe. Again, this is expectations. It is not guaranteed because we are not in control of the customer's schedule. This is the first time we have actually run one of our flat flame burners. Following that, the client would need to give us a purchase order for the fabrication phase of that first heater. I do not know the timing for that.

Speaker #4: It is due to be installed in the next couple of weeks. We've got to get the test burners prepared, and then typically, the running time—and we have to coordinate the witness with the customer—will take three to four weeks.

Speaker #4: So I'm expecting the customer to witness that burner in the early October timeframe. And again, these are expectations. It's not guaranteed, because we're not in control of the customer's schedule.

Speaker #4: And this is the first time we've actually run one of our flat flame burners. Following that, the client would need to give us a purchase order for the fabrication phase of that first heater.

Speaker #4: And I don't know the timing for that. The fabrication is probably going to take in a three- to four-month timeframe after we receive that order.

Jim Deller: The fabrication is probably going to take a three to four month timeframe after we receive that order. We obviously hope that they release that order quite quickly, but that is outside of our control, ultimately. Hopefully that is enough to start building that timeline. What we expect is the client will actually purchase the fabrication and receive one. There are two heaters involved in this project, 32 burners spread across two heaters. What the client has indicated is that they will buy one heater's worth of burners first, get those out and get that done, then follow on with the second heater. So we expect the fabrication to take place in two phases.

Speaker #4: We obviously hope that they release that order quite quickly, but that is outside of our control, ultimately. But hopefully, that's enough to stop building that timeline.

Speaker #4: And then what we expect is the client will actually purchase the fabrication and receive one. There are two heaters involved in this project, 32 burners spread across two heaters.

Speaker #4: What the client’s indicated is that they will buy one heater’s worth of burners first, get those out and get that done, and then follow on with the second heaters.

Speaker #4: We expect the fabrication to take place in two phases.

Speaker #6: Understood. Okay, thanks for that. I will step back in the queue.

Sameer Joshi: Understood. Okay. Thanks for that. I will step back in the queue.

Speaker #4: Thank you, Samir.

Jim Deller: Thank you, Sameer.

Speaker #2: Once again, if you have a question or a comment, please indicate so by pressing star one on your touch-tone phone. The next question comes from Peter Gastrich with Water Tower Research.

Operator: Once again, if you have a question or a comment, please indicate so by pressing *1 on your touch-tone phone. The next question comes from Peter Gastreich with Water Tower Research. Please proceed.

Speaker #2: Please proceed.

Speaker #6: Thank you. Congratulations on the results. It's great to see the momentum building across the M-Series process burner and flare lines. Also, I really appreciate the detail provided in the prepared remarks.

Peter Gastreich: Thank you. Congratulations on the results. It is great to see the momentum building across the M-Series process burner and Flare lines. Also, I really appreciate the detail provided in the prepared remarks, so I just have a couple of follow-up questions here. The first, your newest board addition, Larry Saddler, looks like a big positive for the company. You mentioned that he took some time to assess ClearSign technology before joining the board. Could you elaborate on that?

Speaker #6: I just have a couple of follow-up questions here. The first—your newest board addition, Larry Sather, looks like a big positive for the company.

Speaker #6: You mentioned that he took some time to assess ClearSign technology before joining the board. Could you elaborate on that?

Speaker #4: Thank you, Peter. Yes, I can. I mean, I don't want to speak too much for Larry, but I did talk to him—obviously a lot—during the time that we discussed him joining ClearSign and was down there with him when he took time to visit our test site down at Zico and join us.

Jim Deller: Thank you, Peter. Yes, I can. I do not want to speak too much for Larry, but I did talk to him, obviously, a lot during the time that we discussed him joining ClearSign and was down there with him when he took time to visit our test site down at Zeeco and join us. So it is quite common for people with Larry's experience in the industry to have certain tests they like to do with burners to validate their ruggedness and how reliable they are, but are outside of the typical customer specifications.

Speaker #4: So, it's quite common for people with Larry's experience in the industry to have some tests they like to do with burners to validate their ruggedness and how reliable they are.

Speaker #4: But outside of the typical customer specifications—so, without getting into detail—one thing he wanted to do during the time that he came in to spend with us was to put the burner through what I call these extreme cases and extreme tests, to test both the stability and the ruggedness of the burner.

Jim Deller: Without getting into detail, one thing he wanted to do on the time that he came in to spend time with us was to put the burner through what I call these extreme cases and extreme tests to test both the stability and the ruggedness of the burner, obviously, to see the NOx emissions and the burner operating across a very wide range of fuels, which is beyond what you would typically demonstrate in a customer job site. So he got a chance to kick the tires and to really see the burners working outside of, say, the comfort zone of just a typical operating envelope. So he really put the burner through his paces, and that is why he came in on his own for a day.

Speaker #4: Obviously, to see the NOx emissions and the burner operating across a very wide range of fuels, which is beyond what you would typically demonstrate in a customer job site.

Speaker #4: So it's a chance to kick the tires and to really see the burner is working outside of, say, the comfort zone of just a typical operating envelope.

Speaker #4: So he really put the burner through its tests, and that's why he came in on his own for a day. And I was really pleased that he actually chose to stay and join us on the demonstration day, when we had a lot of other customers.

Jim Deller: I was really pleased that he actually chose to stay and join us on the demonstration day when we had a lot of other customers. So he got to talk to a lot of others from industry, actually met with some old friends, but got to see their reaction to the ClearSign technology as well.

Speaker #4: So, he got to talk to a lot of others from industry, actually met with some old friends, but also got to see their reaction to the ClearSign technology as well.

Speaker #6: Okay, thank you. And second, you've previously called this year's burner wins a stepping stone toward ethylene furnaces and steam methane reforming. I recognize this is a longer-term ambition for you, but what would be the roadmap from here in terms of R&D, qualifications, partners, or whatever other factors that we'd be looking at here?

Peter Gastreich: Okay. Thank you. Second, you have previously called this year's burner wins a stepping stone toward ethylene furnaces and steam methane reforming. I recognize this is a longer-term ambition for you, but what would be the roadmap from here, in terms of R&D, qualifications, partners, or whatever other factors that we would be looking at here, and what would be a realistic timeframe for these markets?

Speaker #6: And what would be a realistic timeframe for these markets?

Speaker #4: Yeah, thank you, Peter. Yeah, that's a good question, especially looking at the long-term prospects for ClearSign. A bit of background—the flexible fuel burner we have is described as a burner platform that gives that flexibility, and then recently, the burner that's going into testing is the first of the first flat flame variant of the ClearSign technology.

Jim Deller: Yeah. Thank you, Peter. It is a good question, especially looking for the long-term prospects for ClearSign. For a bit of background, the flexible fuel burner we have described as a burner platform that gives the flexibility. Recently, the burner that is going into testing is the first flat flame variant of the ClearSign technology, demonstrating the flexibility that this new flexible fuel burner offers to us. The investment and the time to take that burner and then develop it for the higher tech and the extreme operating conditions such as we would see in a downfire methane reformer or an ethylene furnace is significant. We do have that on the horizon. My plan will be to actually find an industry client who has interest in that technology and work with them as a partner through that process.

Speaker #4: Demonstrating the flexibility that this new flexible fuel burner offers to us, the investment and the time to take that burner and then develop it for the higher tech and the extreme operating conditions, such as we would see in a Dow 5 methane reformer or an ethylene furnace, is significant.

Speaker #4: We do have that on the horizon. My plan will be to actually find an industry client who has interest in that technology and work with them as a partner through that process.

Speaker #4: Because when you're designing something, you really want to have an end-user site lined up as early as you can, to make sure you have a destination for the project.

Jim Deller: Because when you are designing something, you really want to have an end user site lined up as early as you can to make sure you have a destination for the project, and also to make sure you have a client involved in the work so that you are developing a product in line with their need, and not developing a product and then hoping to find a client for it. So we are open and certainly have initial conversations with clients who have expressed those interests. I think there is an interest in the market. I do not know a timeframe for that. That is probably open. In my estimate, though, once we start, the SBIR project to develop a flexible fuel burner took about two years from start to finish.

Speaker #4: And also, to make sure you have a client involved in the work so that you are developing a product in line with their needs, not developing a product and then hoping you can find a client for it.

Speaker #4: So we are open and certainly have initial conversations with clients. We've expressed those interests. I think there is an interest in the market. I don't know a timeframe for that.

Speaker #4: That's probably the open, in my estimate then, of once we start. The SBIR project to develop the flexible fuel burner took about two years from start to finish.

Jim Deller: I would expect that a development of one of these burners, my best estimate, will be about a two-year period to do that once started. I would look for that to be partially funded by our industrial partner and have a project lined up at the end of it, assuming everything is good. In terms of resource, the test furnace or the test complex that Zeeco has test furnaces suitable for ethylene burners and downfire reformer burners. That is a burner technology that Zeeco has. So in terms of resources, both the testing and the experience of those of us here at ClearSign, we have worked with these technologies before. We have just not yet developed the ClearSign technology into that form.

Speaker #4: I would expect that a development of one of these burners—my best estimate—will be about a two-year period to do that, once started.

Speaker #4: I would look for that to be partially funded by our industrial partner and have a project lined up at the end of it, assuming everything is good.

Speaker #4: And then in terms of resources, well, the test furnaces or the test complex at Zico has test furnaces suitable for ethylene burners and down-fired reformer burners.

Speaker #4: That's a burner technology that Zico has. In terms of the resources, both the testing and the experience of those of us here at ClearSign—we've worked with these technologies before.

Speaker #4: We just have not yet developed the ClearSign technology into that form. So.

Peter Gastreich: Okay. Got it. Thanks. Oh, sorry.

Speaker #6: Okay. Got it. Thanks. Sorry.

Jim Deller: I would say if I turn this around and have to explain to everyone why we would do this, because obviously it is quite an extensive piece of work. The ethylene market is very significant. From my background, the burner opportunity in the ethylene process alone is about equal to the entire opportunity in the refining business. The downfire methane reformers is not quite as big in total, but a single downfire methane reformer can have over 100 burners in it, so it is also a very significant market. Plans are obviously we are not taking our foot off the gas on the process burners. We will continue to develop the Flares and the midstream burners and the process burners. This is something I see as the future development of ClearSign.

Speaker #4: I'll say, if I change this around, if I don't explain to everyone why we would do this—because obviously, it is quite an extensive piece of work.

Speaker #4: The ethylene market is very significant. From my background, the burner opportunity in the ethylene process alone is about equal to the entire opportunity in the refining business.

Speaker #4: And then the downflow reformers are not quite as big in total, but a single downflow reformer can have over 100 burners in there. So it is also a very significant market.

Speaker #4: So, plans are, obviously, we are not taking our foot off the gas on the process burners. We will continue to develop the flares and the midstream burners and the process burners. This is something I see as the future development of ClearSign.

Speaker #4: How do we expand our markets even more and make ClearSign even bigger, and get into more and more opportunities? So it's not going to take away from what we're doing.

Jim Deller: How do we expand our markets even more and make ClearSign even bigger and get into more and more opportunities? It's not going to take away from what we're doing. This is just an additional layer to how do we grow ClearSign in the future.

Speaker #4: This is just an additional layer to this. How do we grow ClearSign in the future?

Speaker #6: Okay, that's great. Thanks, Jim, and congrats again to you and the team. I'll get back into the queue.

Peter Gastreich: Okay. That's great. Thanks, Jim, and congrats again to you and the team, and I'll get back into the queue.

Speaker #4: Thank you, Peter.

Jim Deller: Thank you, Peter.

Speaker #1: Thank you.

Operator: Thank you.

Speaker #2: Operator: Yeah. Operator, I'm going to go ahead and interject with a question, if I could, that was sent in via email. Jim, we have received a couple of questions here about the sales team.

Matthew Selinger: Operator, yeah.

Operator: Richard?

Matthew Selinger: Yeah, operator, I am going to go ahead and interject from a question, if I could, that was sent in via email. Jim, we have received a couple questions here about the sales team, and how your outreach works. Would you mind kind of giving an overview of that sales process and outreach?

Speaker #2: And how does your outreach work? Would you mind kind of giving an overview of that sales process and outreach?

Speaker #4: Yes, I'll probably talk about sales in general, and so I think it starts with understanding the business — probably how it differs from many businesses.

Jim Deller: Yes. I will probably talk about sales in general. I guess start to understand the business and probably how it differs from many businesses. We are providing a technical solution to our customers that involves us working with them to fit the ClearSign technology into their heaters, their control systems, and to plan the projects. A large part of the actual selling process is that collaborative interaction with our peers at the engineering companies, the heater manufacturers, and the technical leads on the refineries. We have at ClearSign some of the most experienced engineers and computer modelers in the industry. We have a lot of connections within the industry and certainly a lot of reputations. That is a very big part of bringing orders in. There is also, of course, there is outreach.

Speaker #4: We are providing a technical solution to our customers that involves working with them to fit the ClearSign technology into their heaters, their control systems, and to plan the projects.

Speaker #4: So, a large part of the actual selling process is that collaborative interaction with our peers at the engineering companies, the heater manufacturers, and the technical leads at the refineries.

Speaker #4: We have at ClearSign some of the most experienced engineers and computer modelers in the industry. We also have a lot of connections within the industry.

Speaker #4: And certainly a lot of reputations. That is a very big part of bringing orders in. There’s also, of course, outreach. We’re always looking to make more people aware of what we do, which is how we start those conversations.

Jim Deller: We are always looking to make more people aware of what we do, which is how we start those conversations. We have one person full-time dedicated and others constantly out at conferences, reaching out to new clients. We obviously have a very active social media and outreach. I am sure that many of you are following us on LinkedIn as well. They bring the leads in, but the majority of our sales activity is actually very collaborative sales based on the experience and the connections that we have throughout the industry.

Speaker #4: So we do. We have one person full-time dedicated, and others constantly out at conferences, reaching out to new clients. We obviously have a very active social media and outreach.

Speaker #4: I'm sure that many of you are following us on LinkedIn as well. So, they bring the leads in, but the majority of our sales activity is actually very collaborative—sales based on the experience and the connections that we have throughout the industry.

Speaker #1: Okay. We have no further questions in the queue. I would like to turn the floor back to ClearSign CEO, Jim Deller, for closing remarks.

Operator: Okay, we have no further questions in the queue. I would like to turn the floor back to ClearSign CEO, Jim Deller, for closing remarks.

Speaker #4: Thank you, operator. And thank you, everyone, for your interest in ClearSign and for taking the time to listen to our call today. We look forward to updating you regarding our developments and speaking with you on our Q3 2026 call in November.

Jim Deller: Thank you, operator. Thank you everyone for your interest in ClearSign and taking the time to listen to our call today. We look forward to updating you regarding our developments and speaking with you on our Q3 2026 call in November. In the meantime, please keep checking in for developments on our website. Also for more behind-the-scenes updates, please follow us on LinkedIn. With that, I really appreciate your time. Thank you very much.

Speaker #4: In the meantime, please keep checking in for developments on our website. And also, for more behind-the-scenes updates, please follow us on LinkedIn. With that, I really appreciate your time.

Speaker #4: Thank you very much.

Operator: This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.