ClearSign Technologies (CLIR) 10-Q 10 May 18 2018 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2018	May 10, 2018
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
Entity Registrant Name	CLEARSIGN COMBUSTION CORP
Entity Central Index Key	1,434,524
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	CLIR
Entity Common Stock, Shares Outstanding		21,361,353

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Current Assets:
Cash and cash equivalents	$ 11,202,000	$ 1,247,000
Accounts receivable	344,000	0
Contract assets	39,000	184,000
Prepaid expenses and other assets	487,000	366,000
Total current assets	12,072,000	1,797,000
Fixed assets, net	441,000	498,000
Patents and other intangible assets, net	1,903,000	1,856,000
Other assets	10,000	10,000
Total Assets	14,426,000	4,161,000
Current Liabilities:
Accounts payable and accrued liabilities	1,147,000	768,000
Current portion of lease liabilities	161,000	159,000
Accrued compensation and taxes	828,000	607,000
Total current liabilities	2,136,000	1,534,000
Long Term Liabilities:
Long term lease liabilities	154,000	195,000
Total liabilities	2,290,000	1,729,000
Commitments
Stockholders' Equity:
Preferred stock, $0.0001 par value, zero shares issued and outstanding	0	0
Common stock, $0.0001 par value, 21,361,353 and 15,608,853 shares issued and outstanding at March 31, 2018 and December 31, 2017, respectively	2,000	2,000
Additional paid-in capital	64,423,000	52,441,000
Accumulated deficit	(52,289,000)	(50,011,000)
Total stockholders' equity	12,136,000	2,432,000
Total Liabilities and Stockholders' Equity	$ 14,426,000	$ 4,161,000

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets [Parenthetical] - $ / shares	Mar. 31, 2018	Dec. 31, 2017
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares issued	21,361,353	15,608,853
Common stock, shares outstanding	21,361,353	15,608,853

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Sales	$ 530,000	$ 360,000
Cost of goods sold	395,000	251,000
Gross profit	135,000	109,000
Operating expenses:
Research and development	1,134,000	1,174,000
General and administrative	1,279,000	1,328,000
Total operating expenses	2,413,000	2,502,000
Loss from operations	(2,278,000)	(2,393,000)
Other income:
Interest income	0	14,000
Net loss	$ (2,278,000)	$ (2,379,000)
Net loss per share - basic and fully diluted	$ (0.13)	$ (0.16)
Weighted average number of shares outstanding - basic and fully diluted	17,717,214	14,862,558

Condensed Consolidated Stateme5

Condensed Consolidated Statement of Stockholders' Equity - 3 months ended Mar. 31, 2018 - USD ($)	Total	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]
Balances at Dec. 31, 2017	$ 2,432,000	$ 2,000	$ 52,441,000	$ (50,011,000)
Balances (in shares) at Dec. 31, 2017		15,608,853
Shares issued in stock offering ($2.25 per share)	12,937,000	$ 0	12,937,000	0
Shares issued in stock offering ($2.25 per share) (in shares)		5,750,000
Issuance costs of rights offering	(1,014,000)	$ 0	(1,014,000)	0
Shares issued for services ($3.50 per share)	9,000	$ 0	9,000	0
Shares issued for services ($3.50 per share) (in shares)		2,500
Share based compensation	50,000		50,000
Net loss	(2,278,000)	$ 0	0	(2,278,000)
Balances at Mar. 31, 2018	$ 12,136,000	$ 2,000	$ 64,423,000	$ (52,289,000)
Balances (in shares) at Mar. 31, 2018		21,361,353

Condensed Consolidated Stateme6

Condensed Consolidated Statement of Stockholders' Equity [Parenthetical]	3 Months Ended
	Mar. 31, 2018$ / shares
Common stock for services per share issue one	$ 3.50
Share Issued During Period Stock Offering Per Share	$ 2.25

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flows from operating activities:
Net loss	$ (2,278,000)	$ (2,379,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Common stock issued for services	9,000	87,000
Share based compensation	50,000	143,000
Depreciation and amortization	79,000	68,000
Change in operating assets and liabilities:
Contract assets	145,000	0
Accounts receivable	(344,000)	(216,000)
Prepaid expenses and other assets	(121,000)	223,000
Accounts payable and accrued liabilities	379,000	(170,000)
Accrued compensation and taxes	221,000	49,000
Contract liabilities	0	(72,000)
Net cash used in operating activities	(1,860,000)	(2,267,000)
Cash flows from investing activities:
Acquisition of fixed assets	(2,000)	(28,000)
Disbursements for patents and other intangible assets	(106,000)	(105,000)
Net cash used in investing activities	(108,000)	(133,000)
Cash flows from financing activities:
Proceeds from issuance of common stock and units of common stock and warrants for cash, net of offering costs	11,923,000	8,667,000
Net cash provided by financing activities	11,923,000	8,667,000
Net increase in cash and cash equivalents	9,955,000	6,267,000
Cash and cash equivalents, beginning of period	1,247,000	1,259,000
Cash and cash equivalents, end of period	$ 11,202,000	$ 7,526,000

Condensed Consolidated Stateme8

Condensed Consolidated Statements of Cash Flows [Parenthetical] - USD ($)	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Cash Flow Noncash Operating Activities Disclosure [Abstract]
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures	136,110
Due to Officers or Stockholders, Current		$ 490,000

Organization and Description of

Organization and Description of Business	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Organization, Consolidation, Basis Of Presentation, Business Description and Accounting Policies [Text Block]	ClearSign Combustion Corporation (ClearSign or the Company) designs and develops technologies for the purpose of improving key performance characteristics of combustion systems, including emission and operational performance, energy efficiency and overall cost-effectiveness. The Company’s primary technologies include its Duplex™ technology, which achieves very low emissions without the need of external flue gas recirculation, selective catalytic reduction, or higher excess air operation, and its Electrodynamic Combustion Control or ECC technology, which introduces a computer-controlled electric field into the combustion region that may better control gas-phase chemical reactions and improve system performance and cost-effectiveness. The Company is headquartered in Seattle, Washington and was incorporated in the state of Washington in 2008. On July 28, 2017, the Company incorporated a subsidiary, ClearSign Asia, Limited, in Hong Kong. As of March 31, 2018, the subsidiary was still in the process of formation and had not yet commenced any business activities. Liquidity The Company’s technologies are currently in field development and have generated nominal revenues from operations to date to meet operating expenses. In order to generate meaningful revenues, the technologies must be fully developed, gain market recognition and acceptance, and develop a critical level of successful sales and product installations. The Company has historically financed its operations primarily through issuances of equity securities, including the $ 11.9 52,289,000

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Significant Accounting Policies [Text Block]	Note 2 – Summary of Significant Accounting Policies The accompanying unaudited condensed consolidated financial statements include the accounts of Clearsign and its subsidiary and have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission for Form 10-Q. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. The condensed consolidated balance sheet at December 31, 2017 has been derived from the Company’s audited consolidated financial statements. In the opinion of management, these consolidated financial statements reflect all normal recurring and other adjustments necessary for a fair presentation. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2017. Operating results for interim periods are not necessarily indicative of operating results for an entire fiscal year or any other future periods. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of sales and expenses during the reporting period. Actual results could differ from those estimates. The Company recognizes revenue and related cost of goods sold in accordance with FASB ASC 606 Revenue from contracts with customers The Company’s contracts generally include progress payments from the customer upon completion of defined milestones. As these payments are received they are offset against accumulated project costs and recorded as either contract assets or contract liabilities. Upon completion of the performance obligations and acceptance by the customer the projects can be recorded as revenue. The Company's contracts with customers contain no variable considerations or incentives or discounts that would cause revenue to be allocated or adjusted over time. Therefore, no separate methods of evaluating the contracts other than consideration of the price at achievement of the performance objectives was used in satisfying the review requirements of ASC 606. Contract acquisition costs and practical expedients For contracts that have a duration of less than one year, the Company follows practical expedients provisions of ASC 606 and expenses those costs when incurred; for contracts with a life exceeding one year, the Company records those costs when performance obligations related to the contract are completed. The Company generally expenses sales commissions when earned and records those costs within general and administrative expenses. The Company warrants all installed products against defects in materials and workmanship for a period specified in each contract by replacing failed parts. Accruals for product warranties are based on historical warranty experience and current product performance trends, and are recorded at the time revenue is recognized as a component of cost of goods sold. The warranty liabilities are reduced by material and labor costs used to replace parts over the warranty period in the periods in which the costs are incurred. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary, and such adjustments could be material in the future if estimates differ significantly from actual warranty expense. The warranty liabilities are included in accrued liabilities in the consolidated balance sheets. Highly liquid investments purchased with an original maturity of three months or less are considered cash equivalents. Cash is maintained with a commercial bank where accounts are generally guaranteed by the Federal Deposit Insurance Corporation up to $ 250,000 Accounts receivable are recorded at the invoiced amount. An allowance for doubtful accounts is established, as necessary, based on past experience and other factors which, in management’s judgment, deserve current recognition in estimating bad debts. The determination of the collectability of amounts due from customer accounts requires the Company to make judgments regarding future events and trends. Allowances for doubtful accounts are determined based on assessing the Company’s portfolio on an individual customer and on an overall basis. This process consists of a review of historical collection experience, current aging status of the customer accounts, and the financial condition of the Company’s customers. Based on a review of these factors, the Company may establish or adjust the allowance for specific customers and the accounts receivable portfolio as a whole. There was no allowance for doubtful accounts at March 31, 2018. Fixed assets are recorded at cost. Leases are recorded in accordance with FASB ASC 842 Leases over two to four years Patents and trademarks are recorded at cost. Amortization is computed using the straight-line method over the estimated useful lives of the assets once they are awarded. The Company tests long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable through the estimated undiscounted cash flows expected to result from the use and eventual disposition of the assets. In that event, a loss is recognized based on the amount by which the carrying amount exceeds the fair value of the long-lived assets. Fair value is determined based on the present value of estimated expected cash flows using a discount rate commensurate with the risks involved, quoted market prices, or appraised values depending upon the nature of the assets. Loss on long-lived assets to be disposed of is determined in a similar manner, except that fair values are reduced for the cost of disposal. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities measured at fair value are categorized based on whether or not the inputs are observable in the market and the degree that the inputs are observable. The categorization of financial assets and liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs used to establish fair value are the following: · Level 1 – Quoted prices in active markets for identical assets or liabilities, · Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and · Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company's financial instruments primarily consist of cash and cash equivalents, accounts payable and accrued expenses. As of the balance sheet dates, the estimated fair values of the financial instruments were not materially different from their carrying values as presented on the balance sheets. This is primarily attributable to the short term maturities of these instruments. As described in Note 3, the Company has recorded lease liabilities for the estimated present value of the lease payments under its lease agreements. The Company determined the interest rate based on an estimated incremental borrowing rate. The lease liabilities are classified within Level 3. The Company did not identify any other non-recurring assets and liabilities that are required to be presented in the balance sheets at fair value. The cost of research and development is expensed as incurred. Research and development costs consist of salaries, benefits, share based compensation, consulting fees, rent, utilities, depreciation, and consumables. The Company accounts for income taxes using an asset and liability approach which allows for the recognition and measurement of deferred tax assets based upon the likelihood of realization of tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future deductibility is uncertain. Tax benefits from an uncertain tax position are recognized only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate resolution. Stock-Based Compensation The costs of all employee stock options, as well as other equity-based compensation arrangements, are reflected in the consolidated financial statements based on the estimated fair value of the awards on the grant date. That cost is recognized over the period during which an employee is required to provide service in exchange for the award. Stock compensation for stock granted to non-employees is determined as the fair value of the consideration received or the fair value of equity instruments issued, whichever is more reliably measured. Basic loss per share is computed by dividing loss available to common stockholders by the weighted-average number of common shares outstanding. Diluted loss per share is computed similar to basic loss per share except that the denominator is increased to include additional common shares available upon exercise of stock options and warrants using the treasury stock method, except for periods for which no common share equivalents are included because their effect would be anti-dilutive. At March 31, 2018 and 2017, there were 3,465,168 3,713,994 In May, 2017 the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-09 Scope of Modification Accounting, clarifies Topic 718, Compensation (1) the fair value of the modified award is the same as the fair value of the original award immediately before the modification. The ASU indicates that if the modification does not affect any of the inputs to the valuation technique used to value the award, the entity is not required to estimate the value immediately before and after the modification; (2) the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the modification; and (3) the classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the modification. The ASU is effective for all entities for fiscal years beginning after December 15, 2017, including interim periods within those years. The Company currently does not have any modifications to existing stock compensation agreements and will be able to calculate the impact of the ASU once modifications arise. Management does not believe that any other recently issued, but not yet effective, authoritative guidance, if currently adopted, would have a material impact on the Company’s consolidated financial statement presentation or disclosures. Certain items in prior period financial statements have been reclassified to conform to current period financial statements. The Company encounters a certain amount of risk as a result of a concentration of revenue from a few significant customers. Credit is extended to customers based on an evaluation of their financial condition. In limited instances, the Company may require an upfront deposit. The Company performs ongoing credit evaluations of its customers and records an allowance for potential bad debts based on available information. The Company had revenue from a major California oil producer for enclosed ground flares that accounted for 68 100 24 63 37

Fixed Assets

Fixed Assets	3 Months Ended
	Mar. 31, 2018
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment Disclosure [Text Block]	Note 3 – Fixed Assets March 31, December 31, 2018 2017 (unaudited) Machinery and equipment $ 802,000 $ 801,000 Office furniture and equipment 168,000 167,000 Leasehold improvements 147,000 147,000 Right of use asset-operating leases 518,000 518,000 Accumulated depreciation and amortization (1,194,000) (1,135,000) 441,000 498,000 Construction in progress - - $ 441,000 $ 498,000 The Company has a triple net operating lease for office and laboratory space in Seattle, Washington through March 2020 with rent of $ 12,000 2,000 three For the three months ended March 31, 2018 2017 Lease cost: Operating lease cost $ 53,000 $ 55,000 Short-term lease cost - - Total lease cost $ 53,000 $ 55,000 Other information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 43,000 For operating lease: Weighted average remaining lease term (in years) 1.94 Weighted average discount rate 5.00 % Payments due Discounted lease under lease liability payments agreements 2018 $ 120,000 $ 130,000 2019 158,000 164,000 2020 37,000 37,000 Total $ 315,000 $ 331,000

Patents and Other Intangible As

Patents and Other Intangible Assets	3 Months Ended
	Mar. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets Disclosure [Text Block]	Note 4 – Patents and Other Intangible Assets March 31, December 31, 2018 2017 (unaudited) Patents Patents pending $ 1,234,000 $ 1,167,000 Issued patents 966,000 930,000 2,200,000 2,097,000 Trademarks Trademarks pending 44,000 41,000 Registered trademarks 23,000 23,000 67,000 64,000 Other 8,000 8,000 2,275,000 2,169,000 Accumulated amortization (372,000) (313,000) $ 1,903,000 $ 1,856,000 2018 $ 177,000 2019 215,000 2020 129,000 2021 54,000 2022 23,000 Thereafter 19,000 $ 617,000

Sales, Billings, and Costs on U

Sales, Billings, and Costs on Uncompleted Contracts	3 Months Ended
	Mar. 31, 2018
Costs in Excess of Billings on Uncompleted Contracts or Programs [Abstract]
Revenue and Billings On Uncompleted Contracts In Excess of Costs ,Description [Text Block]	Note 5 – Sales, Billings, and Costs on Uncompleted Contracts In the quarter ended March 31, 2018, the Company completed a multi-flare contract with a third party contractor to supply its Duplex technology to a major California oil producer to retrofit its enclosed wellhead ground flares. This contract was valued at approximately $ 900,000 included certain performance obligations related to emission levels. As such, each flare retrofit was considered a separate transaction where revenues were recognized upon delivery of the unit and satisfaction of the performance obligation. In 2017, revenue totaling $ 540,000 360,000 128,000 57,000 date of $ 18,000 are reflected on the balance sheet as contract assets. To date, all of the company’s sales have been Duplex products sold in the United States.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2018
Stockholders' Equity Note [Abstract]
Stockholders' Equity Note Disclosure [Text Block]	Common Stock and Preferred Stock The Company is authorized to issue 62,500,000 2,000,000 In February 2018, the Company completed an underwritten public offering of shares of common stock at a sales price of $ 2.25 5,750,000 12.9 11.9 Equity Incentive Plan The Company has an Equity Incentive Plan (the Plan) which provides for the granting of options to purchase shares of common stock, stock awards to purchase shares at no less than 85 1,662,780 10 2,238,030 Outstanding stock option grants at March 31, 2018 and December 31, 2017 totaled 969,384 993,860 769,233 754,989 50,000 143,000 216,372 791,622 329,000 2.3 There were no stock options granted during the three months ended March 31, 2018. Consultant Stock Plan The Company has a 2013 Consultant Stock Plan (the Consultant Plan) which provides for the granting of shares of common stock to consultants who provide services related to capital raising, investor relations, and making a market in or promoting the Company’s securities. The Company’s officers, employees, and board members are not entitled to receive grants from the Consultant Plan. The Compensation Committee of the Board of Directors is authorized to administer the Consultant Plan and establish the grant terms. The number of shares reserved for issuance under the Consultant Plan on March 31, 2018 totaled 142,434 96,684 10,000 3.50 35,000 9,000 12,000 Warrants Total Outstanding Warrants Wtd. Avg. Remaining Exercise Life Exercise Price Warrants Price (in years) $ 1.80 80,000 $ 1.80 2.88 $ 4.00 2,395,471 $ 4.00 0.82 $ 10.00 20,313 $ 10.00 0.93 2,495,784 $ 3.98

Commitments

Commitments	3 Months Ended
	Mar. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies Disclosure [Text Block]	Note 7 – Commitments The Company and its Chief Executive Officer, Stephen E. Pirnat entered into an employment agreement on February 3, 2015 that was amended on October 30, 2017 (the Agreement) which terminates on December 31, 2018 350,000 300,000 60 100,000 The Company has a field test agreement with a customer to demonstrate and test the Duplex technology in an OTSG used to facilitate a thermally enhanced oil recovery process. Under the terms of the agreement, the Company has retrofitted an OTSG unit in order to achieve certain performance criteria. The agreement also includes time-sensitive pricing, delivery and installation terms, if elected, that will apply to future purchases of this Duplex application by this customer.

Summary of Significant Accoun16

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Basis of Accounting, Policy [Policy Text Block]	The accompanying unaudited condensed consolidated financial statements include the accounts of Clearsign and its subsidiary and have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission for Form 10-Q. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. The condensed consolidated balance sheet at December 31, 2017 has been derived from the Company’s audited consolidated financial statements. In the opinion of management, these consolidated financial statements reflect all normal recurring and other adjustments necessary for a fair presentation. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2017. Operating results for interim periods are not necessarily indicative of operating results for an entire fiscal year or any other future periods.
Use Of Estimates, Policy [Policy Text Block]	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of sales and expenses during the reporting period. Actual results could differ from those estimates.
Revenue Recognition, Policy [Policy Text Block]	Revenue Recognition and Cost of Goods Sold The Company recognizes revenue and related cost of goods sold in accordance with FASB ASC 606 Revenue from contracts with customers The Company’s contracts generally include progress payments from the customer upon completion of defined milestones. As these payments are received they are offset against accumulated project costs and recorded as either contract assets or contract liabilities. Upon completion of the performance obligations and acceptance by the customer the projects can be recorded as revenue. The Company's contracts with customers contain no variable considerations or incentives or discounts that would cause revenue to be allocated or adjusted over time. Therefore, no separate methods of evaluating the contracts other than consideration of the price at achievement of the performance objectives was used in satisfying the review requirements of ASC 606. Contract acquisition costs and practical expedients For contracts that have a duration of less than one year, the Company follows practical expedients provisions of ASC 606 and expenses those costs when incurred; for contracts with a life exceeding one year, the Company records those costs when performance obligations related to the contract are completed. The Company generally expenses sales commissions when earned and records those costs within general and administrative expenses.
Standard Product Warranty, Policy [Policy Text Block]	Product Warranties The Company warrants all installed products against defects in materials and workmanship for a period specified in each contract by replacing failed parts. Accruals for product warranties are based on historical warranty experience and current product performance trends, and are recorded at the time revenue is recognized as a component of cost of goods sold. The warranty liabilities are reduced by material and labor costs used to replace parts over the warranty period in the periods in which the costs are incurred. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary, and such adjustments could be material in the future if estimates differ significantly from actual warranty expense. The warranty liabilities are included in accrued liabilities in the consolidated balance sheets.
Cash and Cash Equivalents, Policy [Policy Text Block]	Cash and Cash Equivalents Highly liquid investments purchased with an original maturity of three months or less are considered cash equivalents. Cash is maintained with a commercial bank where accounts are generally guaranteed by the Federal Deposit Insurance Corporation up to $ 250,000
Receivables, Trade and Other Accounts Receivable, Allowance for Doubtful Accounts, Policy [Policy Text Block]	Accounts receivable are recorded at the invoiced amount. An allowance for doubtful accounts is established, as necessary, based on past experience and other factors which, in management’s judgment, deserve current recognition in estimating bad debts. The determination of the collectability of amounts due from customer accounts requires the Company to make judgments regarding future events and trends. Allowances for doubtful accounts are determined based on assessing the Company’s portfolio on an individual customer and on an overall basis. This process consists of a review of historical collection experience, current aging status of the customer accounts, and the financial condition of the Company’s customers. Based on a review of these factors, the Company may establish or adjust the allowance for specific customers and the accounts receivable portfolio as a whole. There was no allowance for doubtful accounts at March 31, 2018.
Fixed Assets Policy [Policy Text Block]	Fixed Assets Fixed assets are recorded at cost. Leases are recorded in accordance with FASB ASC 842 Leases over two to four years
Patents and Trademarks Policy [Policy Text Block]	Patents and Trademarks Patents and trademarks are recorded at cost. Amortization is computed using the straight-line method over the estimated useful lives of the assets once they are awarded.
Impairment Of Long Lived Asset Policy [Policy Text Block]	Impairment of Long-Lived Assets The Company tests long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable through the estimated undiscounted cash flows expected to result from the use and eventual disposition of the assets. In that event, a loss is recognized based on the amount by which the carrying amount exceeds the fair value of the long-lived assets. Fair value is determined based on the present value of estimated expected cash flows using a discount rate commensurate with the risks involved, quoted market prices, or appraised values depending upon the nature of the assets. Loss on long-lived assets to be disposed of is determined in a similar manner, except that fair values are reduced for the cost of disposal.
Fair Value Of Financial Instruments, Policy [Policy Text Block]	Fair Value of Financial Instruments Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities measured at fair value are categorized based on whether or not the inputs are observable in the market and the degree that the inputs are observable. The categorization of financial assets and liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs used to establish fair value are the following: · Level 1 – Quoted prices in active markets for identical assets or liabilities, · Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and · Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company's financial instruments primarily consist of cash and cash equivalents, accounts payable and accrued expenses. As of the balance sheet dates, the estimated fair values of the financial instruments were not materially different from their carrying values as presented on the balance sheets. This is primarily attributable to the short term maturities of these instruments. As described in Note 3, the Company has recorded lease liabilities for the estimated present value of the lease payments under its lease agreements. The Company determined the interest rate based on an estimated incremental borrowing rate. The lease liabilities are classified within Level 3. The Company did not identify any other non-recurring assets and liabilities that are required to be presented in the balance sheets at fair value.
Research and Development Expense, Policy [Policy Text Block]	Research and Development The cost of research and development is expensed as incurred. Research and development costs consist of salaries, benefits, share based compensation, consulting fees, rent, utilities, depreciation, and consumables.
Income Tax, Policy [Policy Text Block]	Income Taxes The Company accounts for income taxes using an asset and liability approach which allows for the recognition and measurement of deferred tax assets based upon the likelihood of realization of tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future deductibility is uncertain. Tax benefits from an uncertain tax position are recognized only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate resolution.
Share-Based Compensation, Option and Incentive Plans Policy [Policy Text Block]	Stock-Based Compensation The costs of all employee stock options, as well as other equity-based compensation arrangements, are reflected in the consolidated financial statements based on the estimated fair value of the awards on the grant date. That cost is recognized over the period during which an employee is required to provide service in exchange for the award. Stock compensation for stock granted to non-employees is determined as the fair value of the consideration received or the fair value of equity instruments issued, whichever is more reliably measured.
Earnings Per Share, Policy [Policy Text Block]	Net Loss per Common Share Basic loss per share is computed by dividing loss available to common stockholders by the weighted-average number of common shares outstanding. Diluted loss per share is computed similar to basic loss per share except that the denominator is increased to include additional common shares available upon exercise of stock options and warrants using the treasury stock method, except for periods for which no common share equivalents are included because their effect would be anti-dilutive. At March 31, 2018 and 2017, there were 3,465,168 3,713,994
New Accounting Pronouncements, Policy [Policy Text Block]	In May, 2017 the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-09 Scope of Modification Accounting, clarifies Topic 718, Compensation (1) the fair value of the modified award is the same as the fair value of the original award immediately before the modification. The ASU indicates that if the modification does not affect any of the inputs to the valuation technique used to value the award, the entity is not required to estimate the value immediately before and after the modification; (2) the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the modification; and (3) the classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the modification. The ASU is effective for all entities for fiscal years beginning after December 15, 2017, including interim periods within those years. The Company currently does not have any modifications to existing stock compensation agreements and will be able to calculate the impact of the ASU once modifications arise. Management does not believe that any other recently issued, but not yet effective, authoritative guidance, if currently adopted, would have a material impact on the Company’s consolidated financial statement presentation or disclosures.
Reclassification, Policy [Policy Text Block]	Reclassifications Certain items in prior period financial statements have been reclassified to conform to current period financial statements.
Concentration Risk, Credit Risk, Policy [Policy Text Block]	Concentration of Credit Risk The Company encounters a certain amount of risk as a result of a concentration of revenue from a few significant customers. Credit is extended to customers based on an evaluation of their financial condition. In limited instances, the Company may require an upfront deposit. The Company performs ongoing credit evaluations of its customers and records an allowance for potential bad debts based on available information. The Company had revenue from a major California oil producer for enclosed ground flares that accounted for 68 100 24 63 37

Fixed Assets (Tables)

Fixed Assets (Tables)	3 Months Ended
	Mar. 31, 2018
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment [Table Text Block]	Fixed assets are summarized as follows: March 31, December 31, 2018 2017 (unaudited) Machinery and equipment $ 802,000 $ 801,000 Office furniture and equipment 168,000 167,000 Leasehold improvements 147,000 147,000 Right of use asset-operating leases 518,000 518,000 Accumulated depreciation and amortization (1,194,000) (1,135,000) 441,000 498,000 Construction in progress - - $ 441,000 $ 498,000
Schedule Of Leases Cost [Table Text Block]	Lease costs for the three months ended March 31, 2018 and 2017 and other quantitative disclosures are as follows: For the three months ended March 31, 2018 2017 Lease cost: Operating lease cost $ 53,000 $ 55,000 Short-term lease cost - - Total lease cost $ 53,000 $ 55,000 Other information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 43,000 For operating lease: Weighted average remaining lease term (in years) 1.94 Weighted average discount rate 5.00 %
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]	Minimum future payments under the Company’s leases at March 31, 2018 and their application to the corresponding lease liabilities are as follows: Payments due Discounted lease under lease liability payments agreements 2018 $ 120,000 $ 130,000 2019 158,000 164,000 2020 37,000 37,000 Total $ 315,000 $ 331,000

Patents and Other Intangible 18

Patents and Other Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill [Table Text Block]	Patents and other intangible assets are summarized as follows March 31, December 31, 2018 2017 (unaudited) Patents Patents pending $ 1,234,000 $ 1,167,000 Issued patents 966,000 930,000 2,200,000 2,097,000 Trademarks Trademarks pending 44,000 41,000 Registered trademarks 23,000 23,000 67,000 64,000 Other 8,000 8,000 2,275,000 2,169,000 Accumulated amortization (372,000) (313,000) $ 1,903,000 $ 1,856,000
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]	Future amortization expense associated with issued patents and registered trademarks as of March 31, 2018 is estimated as follows: 2018 $ 177,000 2019 215,000 2020 129,000 2021 54,000 2022 23,000 Thereafter 19,000 $ 617,000

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2018
Schedule Of Share Based Compensation Warrants Activity [Table Text Block]	The Company has the following warrants outstanding at March 31, 2018: Total Outstanding Warrants Wtd. Avg. Remaining Exercise Life Exercise Price Warrants Price (in years) $ 1.80 80,000 $ 1.80 2.88 $ 4.00 2,395,471 $ 4.00 0.82 $ 10.00 20,313 $ 10.00 0.93 2,495,784 $ 3.98

Organization and Description 20

Organization and Description of Business (Details Textual) - USD ($)	1 Months Ended
	Feb. 27, 2018	Mar. 31, 2018	Dec. 31, 2017
Organization and Description of Business [Line Items]
Proceeds from Issuance of Common Stock	$ 11,900,000
Accumulated deficit		$ (52,289,000)	$ (50,011,000)

Summary of Significant Accoun21

Summary of Significant Accounting Policies (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2018	Sep. 30, 2017	Mar. 31, 2017
Variable Interest Entity [Line Items]
Cash, FDIC Insured Amount	$ 250,000
Weighted Average Number of Shares Outstanding, Diluted	3,465,168		3,713,994
Tax Benefits Recognized Description	The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate resolution.
Property, Plant and Equipment, Estimated Useful Lives	over two to four years
Sales Revenue, Net [Member] | Customer 1 [Member]
Variable Interest Entity [Line Items]
Concentration Risk, Percentage	68.00%	100.00%
Sales Revenue, Net [Member] | Customer 2 [Member]
Variable Interest Entity [Line Items]
Concentration Risk, Percentage	24.00%
Accounts Receivable [Member] | Customer 1 [Member]
Variable Interest Entity [Line Items]
Concentration Risk, Percentage	63.00%
Accounts Receivable [Member] | Customer 2 [Member]
Variable Interest Entity [Line Items]
Concentration Risk, Percentage	37.00%

Fixed Assets (Details)

Fixed Assets (Details) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Property, Plant and Equipment [Line Items]
Machinery and equipment	$ 802,000	$ 801,000
Office furniture and equipment	168,000	167,000
Leasehold improvements	147,000	147,000
Right of use asset-operating leases	518,000	518,000
Accumulated depreciation and amortization	(1,194,000)	(1,135,000)
Property Plant and Equipment Gross Excluding Construction In Progress	441,000	498,000
Construction in progress	0	0
Property, Plant and Equipment, Net, Total	$ 441,000	$ 498,000

Fixed Assets (Details 1)

Fixed Assets (Details 1) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Lease cost:
Operating lease cost	$ 53,000	$ 55,000
Short-term lease cost	0	0
Total lease cost	$ 53,000	55,000
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases		$ 43,000
For operating lease:
Weighted average remaining lease term (in years)		1 year 11 months 8 days
Weighted average discount rate		5.00%

Fixed Assets (Details 2)

Fixed Assets (Details 2)	Mar. 31, 2018USD ($)
Discounted Lease Liabilities Payments [Member]
2,018	$ 120,000
2,019	158,000
2,020	37,000
Total	315,000
Payments Due Under Lease Agreement [Member]
2,018	130,000
2,019	164,000
2,020	37,000
Total	$ 331,000

Fixed Assets (Details Textual)

Fixed Assets (Details Textual)	1 Months Ended
	Feb. 28, 2017USD ($)
Lessee, Operating Lease, Renewal Term	3 years
Lease One [Member]
Triple Net Operating Cost	$ 12,000
Lease Two [Member]
Triple Net Operating Cost	$ 2,000

Patents and Other Intangible 26

Patents and Other Intangible Assets (Details) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Patents	$ 2,200,000	$ 2,097,000
Trademarks	67,000	64,000
Other	8,000	8,000
Patents and other intangible assets	2,275,000	2,169,000
Accumulated amortization	(372,000)	(313,000)
Finite-Lived Intangible Assets, Net	1,903,000	1,856,000
Patents Pending [Member]
Patents	1,234,000	1,167,000
Issued Patents [Member]
Patents	966,000	930,000
Trademarks Pending [Member]
Trademarks	44,000	41,000
Registered Trademarks [Member]
Trademarks	$ 23,000	$ 23,000

Patents and Other Intangible 27

Patents and Other Intangible Assets (Details 1) - Patents [Member]	Mar. 31, 2018USD ($)
Finite-Lived Intangible Assets [Line Items]
2,018	$ 177,000
2,019	215,000
2,020	129,000
2,021	54,000
2,022	23,000
Thereafter	19,000
Finite-Lived Intangible Assets, Net	$ 617,000

Sales, Billings, and Costs on28

Sales, Billings, and Costs on Uncompleted Contracts (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2018	Sep. 30, 2017	Mar. 31, 2017
Contract Billings Cost	$ 57,000
Revenues, Total	530,000		$ 360,000
Steam Generator Project [Member]
Accrued Fees and Other Revenue Receivable	128,000
Small Development Project [Member]
Accrued Fees and Other Revenue Receivable	42,000
California oil producer [Member]
Contract Value	360,000	$ 900,000
Costs in Excess of Billings	18,000
Revenues, Total	$ 540,000

Stockholders' Equity (Details)

Stockholders' Equity (Details)	3 Months Ended
	Mar. 31, 2018$ / sharesshares
Warrants Outstanding | shares	2,495,784
Warrants Outstanding Weighted Average Exercise Price	$ 3.98
Exercise Price 1.80 [Member]
Warrants Exercise Price	$ 1.80
Warrants Outstanding | shares	80,000
Warrants Outstanding Weighted Average Exercise Price	$ 1.80
Warrants Outstanding Remaining Life (in years)	2 years 10 months 17 days
Exercise Price 4.00 [Member]
Warrants Exercise Price	$ 4
Warrants Outstanding | shares	2,395,471
Warrants Outstanding Weighted Average Exercise Price	$ 4
Warrants Outstanding Remaining Life (in years)	9 months 25 days
Exercise Price 10.00 [Member]
Warrants Exercise Price	$ 10
Warrants Outstanding | shares	20,313
Warrants Outstanding Weighted Average Exercise Price	$ 10
Warrants Outstanding Remaining Life (in years)	11 months 5 days

Stockholders' Equity (Details T

Stockholders' Equity (Details Textual) - USD ($)	1 Months Ended		3 Months Ended
	Feb. 27, 2018	Aug. 31, 2017	Mar. 31, 2018	Mar. 31, 2017	Apr. 01, 2018	Dec. 31, 2017
Class of Stock [Line Items]
Common Stock, Shares Authorized			62,500,000
Preferred Stock, Shares Authorized			2,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross			0
Stock Option Plan Description			The Consultant Plan provides for quarterly increases in the available number of authorized shares equal to the lesser of 1% of any new shares issued by the Company during the quarter immediately prior to the adjustment date or such lesser amount as the Board of Directors shall determine.
Stock Issued During Period, Shares, New Issues	12.9
General And Administrative Expense Related To Stock Grant			$ 35,000
Proceeds From Issuance Or Sale Of Equity			$ 11,923,000	$ 8,667,000
Offering [Member]
Class of Stock [Line Items]
Warrants Authorized For Issuance To Acquire Common Stock Shares Number	5,750,000
Proceeds From Issuance Or Sale Of Equity	$ 11,900,000
Stock Issued During Period, Shares, Other	2.25
Consultant Plan [Member]
Class of Stock [Line Items]
Common Stock, Capital Shares Reserved for Future Issuance			142,434
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross		10,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value			$ 3.50
Shares Reserved Unissued			96,684
Consultant Plan Expenses			$ 9,000	$ 12,000
Consultant Plan One [Member] | Employee Stock Option [Member]
Class of Stock [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross			50,000	143,000
Equity Incentive Plan [Member]
Class of Stock [Line Items]
Share Based Compensation Arrangement By Share Based Payment Award Purchase Price Share Minimum			85.00%
Common Stock, Capital Shares Reserved for Future Issuance			1,662,780
Increase Decrease Of Share Based Compensation Arrangement By Share Based Payment Award Percentage			10.00%
Share-based Compensation Outstanding - Reserved but unissued shares under the Plan			969,384			993,860
Shares Reserved Unissued			216,372		791,622
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number			769,233			754,989
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period1			2 years 3 months 18 days
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options			$ 329,000
Equity Incentive Plan At April 1, 2018 [Member]
Class of Stock [Line Items]
Common Stock, Capital Shares Reserved for Future Issuance			2,238,030

Commitments (Details Textual)

Commitments (Details Textual) - USD ($)	Feb. 03, 2015	Mar. 31, 2018
Loss Contingencies [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number		300,000
Maximum [Member]
Loss Contingencies [Line Items]
Annual Cash Bonus	60.00%
Stephen E. Pirnat [Member]
Loss Contingencies [Line Items]
Salaries, Wages and Officers' Compensation	$ 350,000
Employment Agreement Termination Date	Dec. 31, 2018
Labor and Related Expense	$ 100,000