TULSA,
Okla., Dec. 1, 2022 /PRNewswire/ -- ClearSign
Technologies Corporation (Nasdaq: CLIR) ("ClearSign" or the
"Company"), an emerging leader in industrial combustion and sensing
technologies that improve energy, operational efficiency and safety
while dramatically reducing emissions, today provides an update on
operations for the third quarter ended September 30, 2022.
"We have made good progress moving our commercial and
development projects forward," said Jim
Deller, Ph.D., Chief Executive Officer of ClearSign. "Our
particular focus has been on the execution of the twenty burner
project for a California refinery,
where we are currently readying the burners for the upcoming
performance demonstration. Recently, we received the concluding
purchase order for the California
project and we are planning the manufacture of the burners, control
systems and spare parts in accordance with our customers
accelerated timeline. We have also made progress on the 100% Ultra
Low NOx hydrogen burner; we are expecting to move the burner into
testing in the near future. Finally, we are pursuing the initial
orders of our boiler burner business and firmly believe we will
start to see some orders soon."
Recent strategic and operational highlights during and
subsequent to the third quarter of 2022 include:
Received Follow on Purchase Order for California Refinery
Multi Heater Project and Moved into Testing: The Company is
proceeding with the next phase in the previously announced twenty
burner project for a California
refinery. The four burners required for full scale testing
and demonstration have now been fabricated and the first has been
installed in the test furnace with the optimization of the burners
well underway. The preparation is ongoing, and the formal witness
demonstration is expected to be completed in the coming
weeks. Additionally, the Company has received the concluding
purchase order for the manufacture and supply of the remaining
sixteen burners, control systems and spare parts. We
anticipate that the burners will be installed in the customer's
refinery in 2023.
Progressed the Hydrogen Fueled Ultra Low NOx Process Burner
Development Project to Testing: The Company has
completed initial "proof of concept runs" with the technology
demonstrating the ability to run successfully with fuel comprised
of 100% hydrogen. The remaining testing is to demonstrate sub 5ppm
NOx over the typical operating range of a refinery burner. The test
burner and the other components required for the first planned
phase of this testing are manufactured and ready to go as soon as
the test furnace, ancillary equipment and personnel resources are
available.
Announced an Enclosed Oxidizer Sale to Canada Based Hydrogen
Technology Production Company: The Company sold a ClearSign
Core™ enclosed oxidizer for installation in a pilot scale hydrogen
production plant. The Canadian customer is developing a
breakthrough technology for the production of clean
hydrogen.
Announced the Appointment of Energy Industry Veteran Gary
DiElsi to the Board of Directors: Mr. DiElsi is a
seasoned energy executive with a broad background of over 40 years
of experience in private equity, major global enterprises, smaller
industrial companies, and startup ventures, including both
turnaround and growth situations. He is filling Bruce A. Pate's position.
Cash, cash equivalents and short-term investments were
approximately $9,780,000 on
September 30, 2022.
There were 38,019,951 shares of the Company's common stock
issued and outstanding as of November 1,
2022.
The Company will be hosting a call at 5:00 PM ET today. Investors interested in
participating on the live call can dial 1-866-372-4653 within the
U.S. or 1-412-902-4217 from abroad. Investors can also access the
call online through a listen-only webcast
at https://app.webinar.net/jXao0yNDzOb or on the
investor relations section of the Company's website
at http://ir.clearsign.com/overview.
The webcast will be archived on the Company's investor relations
website for at least 90 days and a telephonic playback of the
conference call will be available by calling 1-877-344-7529 within
the U.S. or 1-412-317-0088 from abroad. Conference ID #9709910. The
telephonic playback will be available for 7 days after the
conference call.
About ClearSign Technologies Corporation
ClearSign Technologies Corporation designs and develops products
and technologies for the purpose of improving key performance
characteristics of industrial and commercial systems,
including operational performance, energy efficiency, emission
reduction, safety and overall cost-effectiveness. Our patented
technologies, embedded in established OEM products as ClearSign
Core™ and ClearSign Eye™ and other sensing configurations,
enhance the performance of combustion systems and fuel safety
systems in a broad range of markets, including the energy (upstream
oil production and down-stream refining), commercial/industrial
boiler, chemical, petrochemical, transport and power industries.
For more information, please visit www.clearsign.com.
Cautionary note on forward-looking statements
All statements in this press release that are not based on
historical fact are "forward-looking statements." You can find many
(but not all) of these statements by looking for words such as
"approximates," "believes," "hopes," "expects," "anticipates,"
"estimates," "projects," "intends," "plans," "would," "should,"
"could," "may," "will" or other similar expressions. While
management has based any forward-looking statements included in
this press release on its current expectations on the Company's
strategy, plans, intentions, performance, or future occurrences or
results, the information on which such expectations were based may
change. These forward-looking statements rely on a number of
assumptions concerning future events and are subject to a number of
risks, uncertainties and other factors, many of which are outside
of our control, that could cause actual results to materially
differ from such statements. Such risks, uncertainties and other
factors include, but are not limited to, our ability to
successfully install our burners in
the California refinery and complete the anticipated
project within the updated timeline, our performance of the Phase I
work and likelihood that we submit, and are approved, for Phase II
grant funding, general business and economic conditions, the
performance of management and our employees, our ability to obtain
financing, competition, whether our technology will be accepted and
adopted and other factors identified in our Annual Report on Form
10-K filed with the Securities and Exchange Commission and
available at www.sec.gov and other factors that are
detailed in our periodic and current reports available for review
at www.sec.gov. Furthermore, we operate in a competitive
environment where new and unanticipated risks may arise.
Accordingly, investors should not place any reliance on
forward-looking statements as a prediction of actual results. We
disclaim any intention to, and, except as may be required by law,
undertake no obligation to, update or revise forward-looking
statements to reflect events or circumstances that subsequently
occur or of which we hereafter become aware.
PART I-FINANCIAL INFORMATION
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|
ITEM 1.
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
ClearSign
Technologies Corporation and Subsidiary
|
Condensed
Consolidated Balance Sheets
|
(Unaudited)
|
|
|
|
|
|
|
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|
(in thousands, except
share and per share data)
|
|
September 30,
|
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December 31,
|
|
|
|
2022
|
|
2021
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
5,880
|
|
$
|
7,607
|
|
Short-term
held-to-maturity investments
|
|
|
3,900
|
|
|
—
|
|
Accounts receivable,
net
|
|
|
38
|
|
|
33
|
|
Contract
assets
|
|
|
284
|
|
|
39
|
|
Prepaid expenses and
other assets
|
|
|
506
|
|
|
345
|
|
Total current
assets
|
|
|
10,608
|
|
|
8,024
|
|
|
|
|
|
|
|
|
|
Fixed assets,
net
|
|
|
427
|
|
|
530
|
|
Patents and other
intangible assets, net
|
|
|
818
|
|
|
799
|
|
Other assets
|
|
|
10
|
|
|
10
|
|
|
|
|
|
|
|
|
|
Total
Assets
|
|
$
|
11,863
|
|
$
|
9,363
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
$
|
287
|
|
$
|
224
|
|
Current portion of
lease liabilities
|
|
|
180
|
|
|
205
|
|
Accrued compensation
and related taxes
|
|
|
300
|
|
|
218
|
|
Contract
liabilities
|
|
|
61
|
|
|
84
|
|
Total current
liabilities
|
|
|
828
|
|
|
731
|
|
Long Term
Liabilities:
|
|
|
|
|
|
|
|
Long term lease
liabilities
|
|
|
239
|
|
|
350
|
|
Total
liabilities
|
|
|
1,067
|
|
|
1,081
|
|
|
|
|
|
|
|
|
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Commitments and
contingencies (note 7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Stockholders'
Equity:
|
|
|
|
|
|
|
|
Preferred stock,
$0.0001 par value, zero shares issued and outstanding
|
|
|
—
|
|
|
—
|
|
Common stock, $0.0001
par value, 38,019,951 and 31,581,666 shares
issued and outstanding at September 30, 2022 and
December 31, 2021,
respectively
|
|
|
4
|
|
|
3
|
|
Additional paid-in
capital
|
|
|
98,008
|
|
|
91,035
|
|
Accumulated other
comprehensive income (loss)
|
|
|
(11)
|
|
|
9
|
|
Accumulated
deficit
|
|
|
(87,205)
|
|
|
(82,765)
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|
Total ClearSign
Technologies Corporation stockholders' equity
|
|
|
10,796
|
|
|
8,282
|
|
Noncontrolling
Interest
|
|
|
—
|
|
|
—
|
|
Total
equity
|
|
|
10,796
|
|
|
8,282
|
|
|
|
|
|
|
|
|
|
Total Liabilities and
Equity
|
|
$
|
11,863
|
|
$
|
9,363
|
|
|
The accompanying notes
are an integral part of these unaudited condensed consolidated
financial statements.
|
ClearSign
Technologies Corporation and Subsidiary
|
Condensed
Consolidated Statements of Operations
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
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|
(in thousands, except
share and per share data)
|
|
For the Three Months Ended
|
|
For the Nine Months Ended
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
|
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|
Revenues
|
|
$
|
324
|
|
$
|
190
|
|
$
|
324
|
|
$
|
553
|
|
Cost of goods
sold
|
|
|
201
|
|
|
278
|
|
|
201
|
|
|
1,008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
(loss)
|
|
|
123
|
|
|
(88)
|
|
|
123
|
|
|
(455)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
|
97
|
|
|
1,138
|
|
|
393
|
|
|
2,436
|
|
General and
administrative
|
|
|
1,461
|
|
|
1,131
|
|
|
4,342
|
|
|
4,029
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
|
1,558
|
|
|
2,269
|
|
|
4,735
|
|
|
6,465
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Loss from
operations
|
|
|
(1,435)
|
|
|
(2,357)
|
|
|
(4,612)
|
|
|
(6,920)
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest,
net
|
|
|
35
|
|
|
—
|
|
|
35
|
|
|
—
|
|
Government
assistance
|
|
|
88
|
|
|
—
|
|
|
100
|
|
|
—
|
|
Gain on forgiveness of
debt
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
251
|
|
Gain from sale of
assets
|
|
|
—
|
|
|
—
|
|
|
37
|
|
|
—
|
|
Other income,
net
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
Total other
income
|
|
|
123
|
|
|
4
|
|
|
172
|
|
|
255
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
(1,312)
|
|
|
(2,353)
|
|
|
(4,440)
|
|
|
(6,665)
|
|
Net loss attributed to
non-controlling interest
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1)
|
|
Net loss attributed to
common stockholders
|
|
$
|
(1,312)
|
|
$
|
(2,353)
|
|
$
|
(4,440)
|
|
$
|
(6,664)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share -
basic and fully diluted
|
|
$
|
(0.03)
|
|
$
|
(0.07)
|
|
$
|
(0.13)
|
|
$
|
(0.21)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of shares outstanding -
basic and fully diluted
|
|
|
37,871,291
|
|
|
31,491,174
|
|
|
34,435,117
|
|
|
31,114,769
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes
are an integral part of these unaudited condensed consolidated
financial statements.
|
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SOURCE ClearSign Technologies Corporation