• Revenue: $1.9 million for Q3 2024, compared to $85,000 in Q3 2023.
• Year-to-Date Revenue: $3 million for the nine months ended September 30, 2024, a $1.9 million increase over the prior period in 2023.
• Gross Profit Margin: Increased by 11% year-over-year, from 22% in 2023 to 33% in 2024.
• Net Loss: Decreased by $104,000 for the nine months ended September 30, 2024, an improvement of 2.5% over the comparable period in 2023.
• Cash Balance: Approximately $14.5 million as of September 30, 2024.
• Net Cash Used in Operations: Approximately $1.4 million for Q3 2024, compared to $1.3 million in Q3 2023.

• Warning! GuruFocus has detected 3 Warning Signs with CLIR.

Release Date: November 20, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• ClearSign Technologies Corp (NASDAQ:CLIR) reported a record quarterly revenue of $1.9 million, a significant increase from $85,000 in the same period last year.
• The company achieved its largest year-to-date revenue since inception, with $3 million for the first nine months of 2024.
• Gross profit margin improved by 11% year-over-year, from 22% in 2023 to 33% in 2024.
• ClearSign's partnership with Zeeco is progressing, with plans for joint branding and promotion of ClearSign's process burner technology.
• The company has a growing pipeline of projects, including a significant 26-burner order for a Fortune 500 petrochemical company.

Negative Points

• ClearSign Technologies Corp (NASDAQ:CLIR) experienced a net loss for the nine months ended September 30, 2024, despite a slight improvement over the previous year.
• The company's revenue is described as 'lumpy,' indicating inconsistency and unpredictability in revenue streams.
• Operations in China have been suspended due to delayed progress, resulting in significant one-time costs related to employee termination payments.
• The start-up of a major 20-burner order in Los Angeles has been delayed to mid-2025, impacting expected revenue timelines.
• ClearSign's business model remains heavily reliant on partnerships, which may pose risks if these relationships do not continue to develop as expected.

Q & A Highlights

Q: Jim, directionally, where do you see margins heading? A: Colin Deller, CEO: We saw a significant improvement in margins as reported by Brent. I believe there is room for further efficiency gains with the volume we expect in the future. We anticipate margins to improve even further than the current improvement.

Q: During recent calls, we haven't heard much about Narion and the ClearSign Eye sensor technology. Can you provide some insight into this relationship? A: Colin Deller, CEO: Narion is an independent company affiliated with ClearSign, focusing on developing applications using our sensing technology. They are working on adapting our sensor for various industries, including aerospace. We expect to see industrial installations of our pilot sensors in the near future.

Q: I've noticed some new hires posted on LinkedIn. Could you give some color on these hires? Are there any positions you're actively looking to fill? A: Colin Deller, CEO: We've recently hired two new engineers to support our growing business. Currently, we do not have open positions, but as our business grows, we may have new positions to fill. These hires are part of our strategy to handle increased workload and free up senior engineers for customer-facing roles.

Q: How would you describe your current pipeline compared to a year ago? A: Colin Deller, CEO: Our pipeline has grown substantially, with more mature and larger orders. We are receiving multiple inquiries weekly, indicating a promising increase in business activity.

Q: With the new administration coming into place next year, will a focus on reducing NOx emissions remain important? Could more focus on production in the United States be beneficial for ClearSign? A: Colin Deller, CEO: NOx emissions are primarily controlled by local states and are based on long-standing standards. We do not expect significant changes. Our customers are global companies with their own environmental mandates, so changes in administration have limited impact. We are seeing increased interest in LNG, which is relevant to our business.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.