CLIR - Earnings call transcript Q1 2020 | ClearSign Technologies Corporation

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Operator

Good day, and welcome to the ClearSign Technologies' Corporation First Quarter 2020 Results Conference call. All participants will be in listen-only mode [Operator Instructions]. Please note, this event is being recorded. I would now like to turn the conference over Matthew Selinger, Investor Relations. Please go ahead.

Matthew Selinger

you thank and afternoon, operator. Good to And Quarter Technologies First ClearSign results welcome conference everyone XXXX call. Corporation the

During in are the Risk XX-K. statements XXXX its Form in are reflect completed, will forward-looking whether ClearSign’s this These results historical whether on conference Any to call, and plans, field include, by limited SEC, the expanding to analysis of uncertainties this remarks the statements materially and ClearSign The company could for will update that public products conference numerous subject to, as or projections, other important call company's based is discussion forward-looking conference as successfully events including This date expectations, outcomes a and on are that to about a testing and the statement and make described not intend statements. the statement products be of risks actual not are to is in the sections made future described of cause associated do required responsibility Report ClearSign of Except those but Annual ClearSign's sales and prospects. law, not to periodic fact market actual filings the these will differ from beliefs statement. forward-looking does includes forward-looking in uncertainties with assumes statements that and call, forward-looking this with Factor the statements. in no the the and be successful of so. judgments risks risks

Q&A Executive and Board Hoffman, Chairman Deller, Chief Fike, call ClearSign's Brian the be the portion with the are Financial on me of this Officer. President and also of call. during Jim Chief Officer available So Rob will ClearSign's ClearSign’s today

So over Brian. Brian that, Please to call now the to would turn go I like with Fike. ahead,

Brian Fike

us for and you today. to Matthew, thank everyone you, joining Thank

March on month XXXX. compared SEC $X.X in a company were XXth. reduction $X.X is representative released XX% is burn May since financial the cash full changes Form XXXX of last The million same on ended made the the million more XX-Q Our first of the and period This selective results XX, are increasing and quarter was with the quarter the consulting. the on in QX last of achieved to budgeting, The process. savings been This year. projects planning with and from the figures with and a combined the The of use year. past selected project efficiency development judicious outsource consistent the has rigorous and have expenditure very focus approval and systematic prioritized over major been for

Shares investment XXXX. $X to XX, apply we cash received deficiency current or compared totaling the XXXX, a deferring meeting extends at of were six the the we September at guidelines of price deadline stock month $X.X price and first the period the for bid March outstanding On of May for This from time the XX, due June. XXXX end to necessary, the fourth letter Our at bid for months our a extension. the million about were XX,XXX,XXX. quarter quarter billion and XXXX NASDAQ the of at April end resources XXst, until which if price can of our

ahead, With Deller. any even Please our would other to us forgiven through During turn Chief we note no which during PPP, call received to that, of sufficient second sources. to working anticipated assuming available as Jim that It Executive XXXX from and Jim. from also carry the are revenue the we the important quarter, to into today now go I like funds in have is $XXX,XXX have capital QX. XXXX over be to Officer,

Jim Deller

first and quarter everyone. XXXX. Brian, afternoon you, our to Welcome call good Thank update for

our of received confirming ExxonMobil quarter details little that purchase supply first a want ClearSign Baytown, has for on just order Before release update, at installed their to four getting refinery. issued expand Texas of I business the the a burners Core process be from press to into ClearSign

be like considerable in investment this and recognizing World the order to made which ExxonMobil and implications economic significance would technical, thank the have flames just for This work us Oklahoma, very pursuing. and Tulsa, technology. full been experienced for in the to technology to ClearSign services. includes order assessments order I a expect beneficial the furnace, months, evaluating full the operational are and ClearSign such performance third-party has provision not Firstly, in is technology stage perspective an meeting computer supply and in how made The for for way of of carried news that Class the what these we test and coming the The reassurance they value. provide of providing that a have to it a burner provides we anticipate equipment final great model destination and practical a and forward-looking burners the which technical needs provide as environmental solution ClearSign agreements refinery’s that a the validate industry a and we economic both scale also we in and but out program provides the an showing of we new general great deliver thorough, endorsement we order arranged that scale furnace, industrial contract have will in out alliance multi that to an engagement the

start observing At business disruption review the of of back to since a assessing precursor ExxonMobil China, time, adoption meet the targets. and the by XXth. by COVID-XX on the believe emissions social to and it were scale call commercial that by activities March the in also We their quarterly region. on developments we in development like caused impact more that that today over environmental last upcoming our wide to our going technology our is I'd to

of the all all know, caused significant we lives. As to globally and disruptions spread changes

disease, to be to and work to our practices order limit spread in our accommodate partners. modify and the of to also to required accommodate the the had have on virus have restrictions customers, flexible effects of We the suppliers the

to of developments and outside to early keep moving preparations be with strategic able and plans forward minimal China internal made we commercialization projects our delays. However,

As the and an the delivery accordingly we gas business it in refining our maintained and industries oil as operations essential have supplier essential and offer of offices.

scenarios equipment case both their We to technologies. these with our us done our activities And in operating have push kept The refineries been the on operations extraordinary commercial the on thank office. generally few design ExxonMobil’s running to this all done minimum. from meet the earlier. will adapting the and being focused focused or working specifically has commercialization making quickly our process involve a Tulsa refinery, and also burners that deployment new creativity be complex such of testing by can home. for significant for business This to in our staff. been for details past the of testing This arrangements of of who months forward Seattle operating included All but other the to the our not are the allowed the installations development in and the the has a the remotely has mentioned through advancing want test our and work continued XX made flexibility employees efforts, I based and performance to requirements general acknowledge to and perform to the their especially we've despite progress improving in continued those Seattle of modern developments optimizing Through adopting some activities our practices, and requirements. needs Baytown complications. large under all order program scale the and keep and and burner technology employees have just as facility,

and standardization burner cost customers’ and provision install of an to equipment If from that, efficiently components have our parts of we part to it of our from perspective, expect handled provision can ongoing will large addition, aftermarket our future services and and had spare as increasingly important become we easy of consideration and develops to, is part In be ClearSign's maintain parts business. perspective the to a the give that base effectively. to ensure and needs sourcing the

cost and can stored that So chains it careful we necessary our the sourced, consideration and supply that and planning its high shipped of provide quickly course service of good doing and parts our maximum to our for so design parts the revenue of is aftermarket us the will be in give effectively. customers stream to potential to provide margin ClearSign. enable that This of to also

also are all meeting the clearly we cognizant that our projects, needs to must our larger made that and operations. and applicable support This are now incidentally we steps we long-term the and is scale vision decisions of While of reflect immediate to technologies. the committed

with all that this operational considerable work. our into is this amount a international and major tier refinery a sale functional burner that Given equipment that one procedures first entails, was of reviews the

and future as develop involve process We our expect the of petrochemical technology will customers installation ClearSign projects the other our course, refining this streamlined into third mainstream become parties and in and and history more industries. familiar of we supplying products with become experience such as

been accomplish this look I to we to forward able Fortunately, of have and project. the this phase execution

made Air Oil Quality in World to Oil to capabilities of South Oil last our that process the specific the applicable equally to in advancing California this We as the installation. Development is World regard, process work Coast the burner burner over are few general, project. to technology to addition World also continuing we In Management particular project. the relevant as it improvements and District. being well have very is our Many technology are for months with our of

ExxonMobil, part utilize same to process of demonstrate to burner as setup of our continuation of Following to World the project. the been the our that demonstration plants technology performance have the Oil

our the supply talking last primary is with. months, company in has burner it the only process While to our over been not the area ExxonMobil we burner focus are

look our as When the other and international leads announcements be with refining we established tier anticipated commitments top producing forward obtaining process greatly a technology, alliance recognized with in the have should burner assuming are manufacturer these. development of development them key milestone. We additional making progressing also burner And related from successful discussing a an companies. to to gas commercial

of While announce the anything it ultimate not process courtship technology the formal and timing adoption that my a today will sequence formal not I and better this the of is to market. hinder in pursuit the Core have ClearSign belief is do as of agreement the progressing,

it is remember, Securing on are the this organizations, of to the refineries may the our us testing clear have become business. enabling We will purchase for you way, partners and who it is including firms expectations When alliance add plan that will their our to able my that World we continue the to projects. product expectation we and burner and agreements as how last solution sell addition we industrial Oil functions burner well ClearSign place, future global with sales With scale recognized agreement with party ExxonMobil to continue and us partners model. installation through engineering a will provide like phase will the alliance, our move our companies a alliance for Boiler. These affiliates, burners sales the sales obtained these, do is to industry. own, alliance of to and that viable our our milestone any on in of technology third ExxonMobil. grow catalyst mentioned completing mix establish a California sell will a for turnkey supply. combined for to this plan transformational firm fabricate are And similar in their of our this this to call we in as be that also into have this final supply support as ExxonMobil through business order our we network As act is alliance our to mainstream burner will future major for and which as our other in announce relationship to to in technologies that the

is targeted in the business technology, opportunity China. burner boiler by primarily this our Regarding

duplicate demonstrating but what our good performance technology then made ready of Seattle continue test our in a accreditation essentially the have product game to pipe final a to adapt progress setup be of tube to here test designs. was develop in our testing to commercialize commercialized original for and other fire version the to fire technology tube also We for have obtain China, of plan

to fire single the our to to testing commercialized to has a most While ultimately, performance fully performance now, delivered a fully it progress and its new control unit, of into certification in air with and be fire demonstrating us This burner have And The a we assembly its goal the technology. entire than we installation components testing technology, have convert then sellable fire our that ultimately China obtaining and single for and advance to sold certificate and the we hope final the downtime efficient as need and equipment to one in directly form. that the designed of this fuel we I the then one boiler burner existing reinstallled boilers be piece jumped the tube the the be will delayed design. will the and burner. believe the installed to having end burner in pandemic piece us that further can tube on by a the completed configuration ahead to which product are proceeding allow our on form final have consolidated be pipe boilers having replace now burner burners tube to a have technology testing, to assembled reconfiguring performance mounted our final and so Rather will pipe schedule. in final gas getting final product complete use perceptively,

these test one of it burner same the this known of Chinese that the delivers Our piece configuration performance technology requirements all demonstrated performance prototypes emission to technologies. as so burner has and doing in our exceeds and new competing in Seattle most

USA. China resident and We coronavirus present, intact communications us from in USA. and we testing to relationship get have partner not kept Chinese the for the from are business able both the into from a this At still through waiting contact back manager China our shutdown, during have

our also factory need need and properly progress of our testing However, to keep in we project, who farm set designs. our to work this to that confirm sees and we control is up engaged

relationships have also and we ensure underway we development plans foster want China. and the to We protect business in

our and visas travel routes special on unorthodox to working personnel are We there. get essential

travel are We consultants we can physical support means to will anticipating contractors and burner the us technical technical fire remain until and Chinese need have continue need conference We tube to in the of boiler we who developed enable the in optimization very can deploy our be site. our should ongoing capable with This and due demonstration restrictions. installation a video selection accomplished to team job believe setup via of we not will burner wait to our fully team with also to China. USA

time the demonstrated district heating groups to we China project we of in the use Additionally, PPM installation system. Due not tube work burner last of the boiler to and continue had rate travel development control NOx this with the to prepare water been for progress for the able shutdown had target, to at our coronavirus and of burner. below the we maximum XX% restrictions, the At call, the automated and implement further ongoing to-date. XX have to with

configuring final commercial this us have expedite to We that some to discussions technology form. potential partners preliminary enable with may had its

to district, for elaborate China a of is than in these at back work times tube initial we water to not reach a respected the and we in time very plan more offering to to tube years ClearSign the also say cannot the with really this approximately we Other progress the to time. our so the is entered that eager the get I to development fire The agreement and to this changes need with reason tube heating very a have is at with significant possible China. our worth first of product. we number and course, market water are such on Of projects, on relationships partners continue plan with China the probably ago did fire capable a whom future. that size reiterating X market tube of It into burners

quicker So, projects China opportunities the out we fire and efforts the significant affected of U.S. fact visas more revenue race opening-up that of is while progress that significant budget tube ultimately travel in viewed situation COVID the is an made or The water to timing, unfortunately commercialization as and our has issuing have be hands. of of avenue tube the China. the in between both should special such reality

through some we can. have working do diplomatic that are what We channels we to

is and to at able China back ground guess get quarter it to the is best present some that really Our of guess in be on year. the a progress we'll form in sometime this technical third

winter all XXth, flares flare division a technology. combustion announcing partner, of considering this release our partner especially heating California upcoming to are on the in of installation early California. course, our as to our by a ASHCOR, Of for May the to in do season start the press a now international sales region by We and I possible, we mid hoping will issued November. Los of move controls, sale on customer Angeles alliance as Border

this family we this be to best-in-class manufacturers being when number adopted technology to containing developing technology was of Core of of first as and a in ClearSign respects. our significant of its valuable original the have inclusion envisioned to order deliver modest, an a designate product exactly commercial we provider sales, order and whereas emissions we a ClearSign While for The and resources like is very technology, asset the our equipment engineering, of the to capability. design ran and core, at production strategy

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companies delivering was some validation generated. closely of it and development The technical after we and and progressing on after project will this early the in order, performance and future. arrangement, emissions this team that our formed order and execution ClearSign's Seattle, materials a is on is portfolio, business which as strategy, we together all opportunities believe regulated validated been changing. coming upon not is new we in soon significant. And this Boiler. These is for regulated than from being our at with product or and to is and since and managed see new recently Tulsa may To entirely capabilities business flare, met ASHCOR which we core completed that our California cut door very flare have This Historically, fulfill That the opportunities for these critical It and results. as product the rather burners prototyping simply increases shipped have the more enabled rest two expanded Oklahoma. of rapid inspiring well. embarking good relationships was our process ClearSign in been. product market business through open the alliances and the become a within subsequently Thirdly, a was this have supply have developed a prior

previous been infrastructure to a technology integrate the bringing I Eye my to of existing has the market. new process The pilot has to eliminate non-productive technology designed the are use to equipment rods. sensing failure. As downtime due reduce seamlessly Sensor this the we into of and potential sensing mentioned Pilot flame in call, in ClearSign We disruptive believe

the can our of in flame presence pilot the the being without flame. features verify it a is product that One of of main immersed

discussing customers potential very from feedback positive great encouraging. which the get development this to product, continue of when We is

trials. of upcoming We in design the production pilot details fabricating commercial final are and units field preparation working for through our

technologies replace. but sensor will just controls accompany the includes a that it the will is This units it. product to similar not be system, that Our existing which itself it

equipment, ClearSign packaged will Core is different shipped that a Our product from the can this by ClearSign business and as technology for manufactured, this a of third be and plan standard that we truly that combustion have parties product.

be manufacturing for year quarter established in have expect this to have pilot production first delivered the to and third field vendors We testing. units

for Our electronic testing are concluding and the components. manufacturing hardware scale of large the design manufacturing optimizing partners of the currently reliability

time adopt first give and to technology stage potential feedback and with off at host talking the In are identify units looking community socialize general, install we promote the We industry. also the change. line sites in of are to customers new our within of to the a business, also first the to amongst

also uncertainty, positive Aside equipment the restrictions ExxonMobil's from benefit, as certainly in but the with is technology Likely, who and And international in collaboration almost includes process division. to our about not will factors, have being there such company see engagement discussions feel the who of industry This from diligence the of the benefit engineering the watched undertaken coronavirus, only in with others but by is external serious political validation with by others also the transition. due we seek by whom mutual manufacturers. travel be our ExxonMobil and threatened our whom also partnerships. some research by we been and investors

technology catalysts seems and it the act While the from order significant to tier that will way adoption. burner do period on industry of that I time, acceptance moving we have ExxonMobil the has the market flares into that top in believe overall collaborative as taken completing that very our are optimistic in of been pave very offer and awareness been additional potentially validated. to of the in tube I great for anticipation back is year, get sure boiler full our and And offering maximum to country the rate tube reached those call Despite be have to and with seek. our water that Also, partnerships we China the with other a but additional industry. commercial technology, performance I'm Through capabilities business being fire ClearSign precipice are the model to ClearSign customers further and able in from a others our demonstrated commercial looking truly for Eye the firing also am a back on developed need market valuation our is this we next has regions technology track pollutant for as I successful of our technology and our four familiar will be references expect release required pricing California raise technology of the to China. will businesses valuable what reduction exciting. lives installation ready flare the fully anticipated. later With all we emissions and of certification production a that months and the into not forward few our believe this currently of everyone getting the on our to provide with sensing strategy form operations. we further

of material to course Web releases time general issue also prepared joining concludes will up lines remarks Operator, LinkedIn please to loyalty our this That call post as today. We my press today. and on and for your us open all news developments, site. you questions. and more ClearSign and the thank for site your on our for updates continued I

Operator

now [Operator question-and-answer will Instructions]. the We session begin

Our first a question today comes from Private John Reynolds, Investor.

Unidentified Analyst

CapEx are engaged, not going enough My Jim, is you environment the been a you've that is, of what got your and oil tall ESG on capital speak. volatile burner, mean fit test to these second comments you spending With year. that, this. the being on then this is how so to any the that? for have? funds? bill must this talking technology And be particularly still seems to job, have for to companies part a I great next the being because and transforming are front question very Are so the

Jim Deller

been refineries of are seen bigger is we're and curtailed price lot way plans But and the we market, that much the the about oil the by their, believe expansion projects of the normal by funds, part market somewhat in certainly have on No delayed any actually that we're a are delayed. are, projects know any oil as The at ESG new the recall canceled likes the pursuing stronger the don't are Mobil Exxon or in pursuing that list of discretionary spending they today, significantly looking and the I comments volatility. on certainly general prices we well projects burner are The So the you volatility. same others in the project, the engaged general of refiners the doubt that been industry a they those that horizon. the are some maybe of for order, and as progressing. have huge

We are very aware of them.

We funds, from we seen why those are have contacted by interest them.

definitely a But I conversation the interest. for potentially we received really think that's have future. yes,

Unidentified Analyst

on I their act, you're finding? drilling wanted super in, that so on has you make is But So was obviously, CapEx Yes, per these adversely radar. majors so curtailed, to affected the will Is to expenditures, that think do year, are by speak. kind mandate have their much holes your sure up just to program been not cleaning obviously, they companies spend of what be this this but new don't that a that?

Jim Deller

I speak don't think, I can't for those refining.

are. So I We internal don't know… policies what their know do

Unidentified Analyst

going lumpy, model ons. compress to you obviously, about so or and and How new without feel had to model the that's as follow sustainable by compress stops with announcement and before that? more, go cycle? I your a that cycle sales mean, the Is announcements then get new months this sales great speak? we've is like not going you and a start Do be this to

Jim Deller

a question. great That is

Texas cut especially tighter NOx a refining, to So and available you very maintain you this to launching the equipment major a was form announcement they basis. technology these to find them are for which refiners, most they the that we're the the, getting fundamental region, space the ClearSign environmental in it And expensive to on real can't to in step very have quite confidence to delivers piece also apart, The clear very it to install If but the something a are go do huge. and it project, have recent the think into meet that future in does to our have value. to and not don't emissions. reducing complications and more on avoid have a And get that offering in can requirements safely, install install develop through ridiculously to they way technology have into that can use a refineries refineries, of currently case equipment it's California product to these the the special, is you've to that you retrofit significant there what restrictions SCRs, the that. frankly, And actually then only to this even and the current they only got expensive having expensive I estate a them model. demand no see I side, become elaborate could

we So motivation of for engineering companies solution of and that's these years investing a best hours Exxon, believe forward. the to going find hundreds behind is top tier them like what

is their long-term, this complete They the do to So great. have process. something start of

can't plans week. the of, I I it we're truly promise well, traction start within every is putting believe is doing an what out getting is of ensuring order business But it So the industry. action, that

Operator

with next Capital. Our Jim comes Kennedy question Marathon from

Jim Kennedy

or times could size Exxon, refineries ex of or a up mean, whether regardless beyond what X is? the then simple You're about help on you it you refining it's talking of that as of Jim, me market of bit? what, number market? market, of the a size kind the anyone are not How one look And handle as I size of this other else, get Is does do what little how China. at number market markets? burners. that the refining

Jim Deller

storage a They well Fuel firstly, so It's a association are everyone. they so American or to and good there they have, just Manufacturers. give is available but resource tools to So some refining the AFPM Jim a really capacity and as trade that's report. have just Petrochemical

the but capacity it'll refineries. the of total, gives other refining it the a states of up. of If you That also type pop just right individual U.S. into as all Google,

available data from like from drawing So experience, barrels USA to capacity refining the that XX have and day. my a close million per very

in of Our per experience, in burners we estimates, on the million employed there day. believe which that is based are refining that barrels XX,XXX XX region

region the refinery, refining used to example, assessment are a day if X top that to So per Texas. a to that just barrels Texas, burners in how of going XX,XXX used about tier XXX,XXX large I be ratio that A somewhere within refinery. down, that to with think is barrels be million major over that's scale reasonable scale and burners of within a in Texas many day capacity scales that'll down down you same

Jim Kennedy

actually for we total market applicable applicable is it have or your versus took with is there? to are XXX%, that addressable of maybe XX,XXX would a there? it there, out So, XX% There some be to instance, burner technology bit and if for it nuances be your virtually every them that where we parse

Jim Deller

reality heaters need some replace love is look every would now, Right SCRs have well that out timing. on I we as already the there. But to them. to burner at

very for So in And California is are Texas refineries a obviously driving that. the see we very looking that its to low market down are is an us. cognizant and what major immediate of level, doing emissions the preparing forward TECQ for

year and probably other But window Texas probably have probably regions to we’ll I’d U.S. first the changes. major a and and then East world Coast across will of regions the following complete start Texas deploy to the own other they're six go a, process. the their California looking say at of states the and that So are that to into the adoption,

some, I'll give you fairly it'll some through. So, gut numbers. go

think the you in as market, ClearSign come the very a certainly burner of at between Core a by and for current just But by targets the target very target future. other really Well, realistic can be to boiler that their the give the less adoption, market met a China X% large ultimate to somewhere refining which terms effort. numbers market I may XX% the you just in in more levels, or in on In present few worth think quite regions the the burners are technology. asked a required it emissions price of China. China not it's address technology at we there, have industry our I frankly

but over number. that China based within We’re time, industries. XX to to going form in There's the that NOx to converted China, are exposing that really XX that that's Chinese years. lower break it hesitant you be data, years, just this and boiler has for to We is very, absolutely percent a a over factor just not market I you per a over I those year in massive by XXX,XXX burners to average technology if we share number. believe at math, that's that big few XX,XXX in that be if am the a at a the need guess the to boilers down a next on case would doing very

Jim Kennedy

how I I'm would eight, envisioning I refinery six burners, have burner either burners, six I eight boiler? me mean, per because how price burner, get it's burners, refinery, for that? you then And ordering per estimate, you rough I or and a giving or want discount? If one a are a per no revenue and discount, four are to each

Jim Deller

a are not a because where that business that not Core in to more burner and for. or there all for five burners, for ask, inflation and can also we is The that customer, in for your think the bar meet are the bit have ballpark worth World ClearSign of older well where quite talk to by that’s needs starting can of ClearSign controls let of market in about, that that to then of that the a order and the we if And best frankly. a the because me the you talking close-end and technology pursue. just individual business had an can we we've the that's one When worked lot value with other is they're comparing of customers little product seriously [$XXX,XXX] the and we past reference technology, today what for has respected with include our but ClearSign selling the published SCR, customers ever engaging comparing that of value So, of about price not in confidential. give us have that the been burners they're of positioned Core was we contracts customers us lives? give was to I us installation the sure, that they providing market conversations in the NOx what you profitable Jim, they much will got maintain, was can some need that equipment at as that Oil believe least

numbers So, those are lead a ballpark. by as Oil World

Some will be higher.

Some will be lower.

seen prices large for we be our have and You intention will reasonably may orders, get discounts is that those so far but modest what held.

Jim Kennedy

And first? that to your full going Jim I’m, territories can boilers in hand for comes China, to I be when it boilers, U.S. it have you're Europe between would those other draw and China the parallel or to applicable

Jim Deller

the We the making resources on point to we with got as as fast interest made of we've can, much can, focus we money a and as as markets. key

there is U.S. and for So burners focusing high in the target really process we as Europe, certainly very so for it’s just markets density get There’s market a efforts and refining big that [indiscernible] our it’s China it’s China focusing certainly big. it’s much by risk the on of return USA not boilers in U.S., for a first in market our of boilers that the can the first very not on first market first, that not is as more case

Jim Kennedy

partner on had the you would you'd druthers, doing to relationship it you've you? marketing what potential for you you? structured that your basis? if Would non-exclusive that would be develop. would I see industry, trying envision that or to that about mean, partner a The a be way becoming what be, be Do for like talked what you're they

Jim Deller

can patience first a the thing end. is ask bit I preference our at John, So of on, little

service to that our objectives successful. and sales be the partner and resources has need I’d requirements in justice, the good certainly technology really a a and that reputation can global wait. the truly provide We've we that technical come focused to those resources, can the finding project on ClearSign that outstanding say market things the do So, management resources and

include are considering capability certainly would value partners. when we their a as we So, sales

Operator

next comes with Kecseg Our from Capital question Management. Robert Colinas Las

Robert Kecseg

that since to kind really as before, business the connect guess wondering was World the closely the closely at were deal. Exxon experience described World wanted they I I closely with I Oil or Oil, had connected, you of I could and and you how but much may that helped burners. what's technology is share you capable how wondering was about maybe since, Oil if appropriately going with us learned been situated to be forward? World us service this

Jim Deller

us need the Lewallen some throughout Jeff throughout, team really us working worked technical really burners that to have have to think, get on I just this COVID-XX office these and our hard here I in thanks and period.

put World at we into One the had first things burners was time that same learned to of the was opportunity we multiple Oil valuable the the furnace.

in that furnace burner Seattle of test a run price the office. single Our the would just in

for also Oil, actually or for it the all dialed So ranging develop into World what the we we're technology during time, this and really saw time. we on address able as and what burner in explore put at requirements that we the build at wide to learned to what Oil, furnace Exxon, first the World we

is any but have Exxon into to burner, the large this on send probably operating of get requirements I'll the the it appropriate probably extensively So we burners, really wide scale modified and meet of it fine the call to details refinery.

to actually So that Oil to we're as we well. do the consistent World things the very what to address with that, address did we wanted burners

oil the the World to of and mutely forward supported. to to there. to look out all to been actually they've and approve other both demonstrate And furnace into So, course we test it getting Exxon, them refineries of

Robert Kecseg

That's to exactly change getting had burners real learn lot what and delta modifying in forward. I the a is be making to was for going at, that there a

everything And my for which company so really the is with out World fact perfectly actually didn't be forward, it what going go a the Oil, basically question about. turns that to just is benefit

Jim Deller

the forward a us in for into actually so confidence us chance them We, go that’s when a the right. much That's facility, exactly test put get we the in position to made put full better demonstration or with right. ExxonMobil it scale burners to

Operator

a Jack Stewart, from comes question next Our Investor. Private

Unidentified Analyst

side that's any couple been long a there. but Q&A, company do the questions for that's facilitate so I sell other coverage know that to guys public my for a bit private a weird have best don't you the investors out so of here for little I'll

let I'm choose. the and So just then you address order that to you off, I'll going them rattle in them

with lines And order? what release us you with is today. I and that are installation, to proper order releases Exxon validation time you And the the you that let look then there of second are the any wanted ExxonMobil to forward? revenues you and hoping for on them? move was validation address copies guys test that a order need from a pastes from if can Was that other. So October and order First, associated the that little each literal more out also how order the them you released? like not of prior color why last I order press to tell, provide bit that put wanted different your I guys do with technology I could received actually press associated them from for around the what press know this clarify,

so around. And this time I'm or new what's confused different just

as need that there any the well same there's language would come helpful. just, So NASDAQ color time is it's cash. the that some it's And me, to at additional a to weird raise really bit listing out as issues, that

the So first balance got that help that's disagree questioner's second sheet positioning? you've left. understand year's out me, flat or will a I of capital can assertion my help us your you worth question is, with

million of fact, plainly $X March, cash which probably another burned quarter, XX-Q million your release, the million to stated of $X.X in end in you've you've the as language, as concern the of $X that going is said under about you the In first press since now left in got then.

burning So $X.X $X currently $X I'd cash and quarter. about probably million you're million assume in to million the a

my me So to got you've of about runway gets left. two math quarters

to be going needed. there's clearly, financing So more

my past years. But that shortfall, the would of us helpful? then there's question the history and if forward, guys the your third still at plan the, that you of address that help look ways are So press the lastly, super that to is is, releases you And orders path be company, in your could call numerous cash disclose revenues. you it, couple there I if no did over understand

revenue when So us expect these first orders? you dollar basically the the between to is disconnect first, what company. receive of if help And for you the understand could

mean And these And bill, So revenue? average helpful. it. least guidance of you million I along are a completion going we lot are are, So method. percentage even to investors of mean, when these the not That's little [Multiple of on that the like to bit of I’d first would market or projects metrics can then given project be right. assume value, any revenue prices guidance, Thank book would $X that like anything million cap, to booking I any you. $XX maybe provide enough, Speakers]. to the is backlog there be see then at order order per booked

Operator

hear please our And speakers me, be just question looks having one so to Please moment pardon difficulties, question, technical some [Operator got back. need our while repeat stay back and ladies a the gentlemen, else speakers we or for we we you We've on proceed. call. get our seem do join line this in. to there? to like Instructions]. was Did Goodbye. It going the no

Jim Deller

hear did question… the We

Unidentified Analyst

couple of million get was will question of percentage something produce backlog, booking is boiler. or you kind an any And you helpful. to then maybe any per like that there's any provide a revenue, can there investors of of When that years. book-to-bill, $XX guidance provide orders orders order like are can announced about that third metrics revenue? The ASP any have no, So could around you for on I'm guidance been these that completion, when surprised

Any any average customer? Thank So helpful TAM, we are math you. can or size on order per kind details the of do

Jim Deller

in if reverse. I sense almost makes the, to walk I Jack, So through can, it think

think I not same terms till completion. the orders, previous the order and we, difference up between first revenue the recognized we’ve of this in now So

at the order are So I in, years. assessments put really the look a you with and that due And value certainly when significant out. company The orders doing was significant own fact much why so order monetary you orders spent with and related. prior than this very the have to value and the as of that Exxon is hardware. of the the certainly equipment explains of the to value represents they really Exxon that, we've an for them don't are and see assessing on their to work is the of diligence of those there's resources order as revenue order it and purchase what they prior orders of orders of Exxon money were is The this was assessment actually the hardware And the this address within importance as and it. spread almost two think in just, relates working number that engineering been technology, why it the led the installation wires, have part why strongly amount but that on

to technology to it in heater. much detailed announcing That before equipment then burner So the they to would into this the how purchase led ultimately that do an contract. they through this of Exxon much a us to order that without pleasure to us would even much prior means more greater thorough a to for was order engaging the was afternoon. a order of a particular more of yesterday do on ClearSign wanted pass to have study burner we payment consider and purchase fit to details of through Core even a precursor, ClearSign refinement the Again, assessment buying engineering achieve requirements before it

culmination very rightly of similar of both a the burners but press the deserve order the are rightly ClearSign’s, And release orders. significant for part work hardware and So own. very distinct amount is large their two on very the work, but of Exxon’s very, they do those two for very

Rob Hoffman

we question want release the I'll only financing. Jim, me the And Rob the that take numbers about Hoffman. you can this is to, present. do obviously, are

the there also we've burn a we And not any revenue. cash and assumptions even a does a math million when some making high think is a question assessment half include is on our quarter. off, I demonstrated at that are little

So, with prediction answer. I last answer We're are I we we long with will that’s made short yes, cash how our position. and comfortable the revenue, think that cash any is guess the comfortable even into the without

Unidentified Analyst

Thank you both.

Rob Hoffman

guidance are revenue way our valuing actually that expect we last like else market Exxon the order. your comparing with to with World the just the yes, in by Jack, the line everybody Oil is to, point and burners And there I the, gave that attached announcement.

So, the for course doing market and right, the its value in strategy terms what huge. in a ClearSign very are own that us ExxonMobil go nice to it's but is of it represents order of

Operator

Legg Our next Benchmark. comes question Michael with from

Michael Legg

on Congrats down to on and company. guys. And when refineries about, Jim, your the company want made see issue progress you've things a burners. I past to we've the is you've talk since joined the it's key how all pricing in one, nice talked I taking oil the milestone about the for installing the Two know lower now

Thanks. of talk current if that may talk with actually even opportunity pricing may contract using with venture something nature? you? we're actually you about a you could about you're little service where Could or the and throw for secondly be of Exxon. And into on that that oil might a the bit an joint ClearSign, So, at, where then they money possibly

Jim Deller

So But oil least rates the with the spare has are first, tends second the price get, that. get Michael, I'll year I refineries reduced, shutdown. let understood our to in having companies on the back beyond our months the of planning and the oil projects are the Typically, a me will not lot do question. certainly sections address also install as all coincide not capital. been general as if come to equipments the volatile, fully at extending you sure in I'm not well to production when

delayed the slow beneficial and completed, been capital then slightly that are has ready include few technology to refineries the to orders, actually to these point, orders projects the seeing established at upcoming main think technology it I our we those and of the opportunistic effects could projects are So, is they this as in the equipment I major and think those is down our the their but a get delay may as see plans. the ClearSign probably in get best for term potentially use actually point to a longer focus evaluation

at is really I predict think the to To thing So today. honest, not for to on of all. volatility long-term, the is how in a unknown going market going at the what's this hard present be everyone just affect ClearSign these that’s bad and

Michael Legg

some the an you of being you're of distribution in talking with then Any any on want from the, a to obviously. take those may partners large, And service Are just type extremely mentioned type, ClearSign? stake lot mean, those of different perspective. that I equity

Jim Deller

in on I Michael, really that table. for call can't the know China. this that or don't off here don't them either at and in But speak I anything's certainly, point. I’d I

Operator

a Hammock, next Private Investor. Sean Our question comes from

Unidentified Analyst

Hey been you guys guys a got really team, for conversation say cheap today. you're buying your small exciting it's a calling technology? and wants and possibly you've to proprietary very becoming for guys you double be to there company, Are you patents stock. are as technology, of place as you've out, begged The all over or somebody the stock with got or Has sale? question the any part a job, is youthful buy you question watch and you. as guys I've you this nice your have got successful

Jim Deller

I any [Sean], are say I the we back. shares always not today. a are we’re really but holding can news any obviously we publicly-traded company, I'm than market not in more sure are not engaged the mean that. conversations on

Operator

Our Capital next from from question Colinas Management. a followup Robert Kecseg Las is

Robert Kecseg

the on burners, that's the industry be burner kind of I might it some us helpful providing think side. of to fire the boilers existing that and also give understanding tube

kind say area refinery say, annually as sort of As place refinery we're What heater and takes burners since the a of in far what just about process replacement replacement in customer. this of ExxonMobil talking business? as,

Jim Deller

confidential. to in ExxonMobil, a don't refineries need But and experience to with of make this, they plus specifically part do also I that because burner want careful be I So the have us me area. have give first, interactions any what year told presumptions, let are working about are XX

predominately requirements local there's in driven focused scenarios. of we more, often is emission actually I by anticipated current, The that reduction multiple clients the meet market need from to So, legislation. our but think the are

much change and when to all the part requirement basically work of So, project all technologies options look all is of at out out refinery of sources the available all equipment a their a their larger and combustion will gives control would whatever and up with is operation them, their plan their they refinery. the that way emissions way most of economic a get and best to the to the come in them down that and

that change So is does out. force that’s finally There wear are equipment basically out.

meeting that replacement to burner long the as incrementally it's current in as requirements of to base increases. mentioned that for It's the of very general heating equipment of such use call, very the an is practice your the significant to as least get burners not not typically you install Although, actually supplying that operate keep burner, or to actually burner But a out for XX heater the that has installed and the is changed. operation. business actually important, planning the because burners actually, typically body to XX for years. becomes the fire as as in those flame unusual with with part replacement additional the changed, profile more grows source be parts that by And needs at for there, that

we force the USA increasing first, in goes stream market the least targeting, are refining that equipment burner be going to are by an change in to time the driven and then is keep customers have operation revenue emission the requirements primarily outs as So at really secondly, do work to our that on.

Unidentified Analyst

go speak the I it. do fire the because made more locations water follow-up well, on as the in this. any to Chinese tube as the to able and in progress We've continue type to trying you What business, issue, there's about in and lot there large been talking a this U.S. a be It's of very of smaller now that same States? that like to the United to market a I'd of we've market in application understand. we're it's and And to about Could over work that that tube with same type type China? inability

Jim Deller

some have U.S. We leads do in

just impose we that was of get have government particularly China. The that market business, infrastructure the much expect temporary. and making the seeing launching ongoing the means to the new be the to there are to do also local partnerships large a building which out the We and being China, been now a has is business driven Chinese up those the that are and And regulations significant bigger thoughtfulness boiler We passed. regulations boilers, so with yes, amount burner back do a able and we're has by of selective. to opportunity Our U.S. right to both the in soon. focus, really sustained think my emissions in which that that. in be But focus, on delays We focused and build do there lower investments opportunity to

you judicious very are trace everything. We cash, being our with can’t

come truly chase to to make that what building deliver we that opportunities a building they But the big sure to way are opportunities. off want business one are but long-term. the to up, is we going in chasing really So we're do trying for as sustainable we that a than rather

Unidentified Analyst

about you process the choice, priorities and in China was I there. to being areas that being say the kind the able as down Would or so one is number goes? and far and for one of going as the Because get lack that's number refinery of heaters because call opportunity over forth timing concern. to with a everybody it's say, as take. slowed long the on company the is obviously And now the concerned to far going of is the timing as how revenue

do So as as revenue chance you and the the think the for what business? priority for far timing is

Jim Deller

today, We I burners aren’t is both. top mean, obviously the have two resources great, cover with do priority. process first, getting like to the

on a the on focusing based industry and mainly in experts business. specialists Tulsa, focused from then we And burner We boiler process that have have team our Chinese China.

to So we have them resources cover both.

get late do But few get burners process minds. do never QX, going at In And into we I in China able But terms fine get a top going the we back in I be tuned next pipe am had think are test. what our testing and this are of ready to the China. that done. of come get into very China back the can that boiler we've quickly burner we to to we will once weeks, will certainly anticipating

to point that We are now.

Unidentified Analyst

they the And that one ASHCOR that to can products hands I I their kind business, larger a about of made Boiler Did efforts, thing, that the or Company. say California think is the you're ask you to by more and to combining flare market just business you join mentioning? comment

Jim Deller

want Yes, in speak it and detail. is I don't not them quiet to for

is our size a large is that sells a do California equipment flare build And Boiler of manufacturer installation ClearSign company installs Core. with also partner. California are So they product it. equipment. and ASHCOR They the combustion and in

as ClearSign sales with and we formed met Boiler we, So with agreement channels with about and our ASHCOR, California installation in ASHCOR, met California. talked

that details [Florida] and for really of but technology. we of for kind know also installation and through have the But ClearSign ASHCOR market, I likes can't ClearSign that products California I that We Core then products basically distribution to said Boiler. actually between they, that agreement an us and the provide I we all the could relate guarantee reached ASHCOR that out agreement, believe was ASHCOR ASHCOR and installer into, they benefit a is

We with a partner with building get manufacturer two a a when everything of you the territory, have and product. was them in work forming in alliance equipment study installer it. together partner coming ClearSign a It an that's OEM sales alliance key ClearSign together an OEM to product your of

Operator

Our Woodworth], next a [George comes from Private question Investor.

Unidentified Analyst

Woodworth [George Capital]. BDE This with is

And a macro it’s have space. interest all, coming of Exxon. company First of know very it's follow that exciting incredible congratulations, you with sort to this just from of headwinds. guys dealt a to see in I And lot just

very read to of two that are been a any like, eloquently for where making. you this question give wanted timeline the deal, I of towards fact guys the progressing spoke The can on get has kind looking you Exxon sort color about that you guys, is first on this you on from in years whether the

looking what step an guys? you the are that you for for be would outcome next So optimal

Jim Deller

to been past be this of really is done in the tail point, equipment the a a are very performance the of Oklahoma long that the also of lot work But have project. we summer. and time. phase end There to big at last the we we of now test the are of has So over this heat a the going in

QX delivery that’s, get by that so down of on around to slowed before the about that it’s the talked we install to hopefully, still Christmas schedule. allow yesterday will end their be to Thanksgiving a we the but to time timeframe customer the exact we got down and So schedule, and nail Exxon if going period

Unidentified Analyst

news, you of seize capital as opportunity. iron make seems of of I guys validation guys putting now you mischaracterizing, Exxon when ramp strike work that think have were this partnership callers a sort have this is of as works you of And that early guys borscht that Is the like that Do seeing the it guys great that are a are sort been you we're It guys how it's with all in running interested guys, you got think something to mean, sure of been I you to time you I some given expect because little out. and being hot. the very Fantastic. future the around to out considering? that according I long a mean people to? cash. for guys in you the the, to see this raise if sort up some

Jim Deller

for addressed of see to all and business obviously we the profit the question, raises. capital question there. the growing had We refineries, Exxon long-term with But do the turning from

Unidentified Analyst

a given couple you kind that down of to for business just see don't the lack be I truth makes itself. sort and guys has that wondering an for for the now stuck is idea, that I it this sense the weighed I with of whether have opportunity mean, was think by of inflection of point presented want now that capital? story the And of some to years, people you that kind

Jim Deller

of early, got next some on as we year. Right the through now, it got this We've capital into horizon. said order, into the to we've sources see we've well got

now feel at right we we're So today… where comfortable with

Unidentified Analyst

think as do of is for very -- move there say it's if for year it sure you consider the look make Would guys not guys to the of benefit that fair say that that shareholders you rest quickly then to the attractive in does raise that expect or you to you capital as a then this opportunity context, can that would possible?

Jim Deller

the I'll of think a this times. leave point, there capital couple addressed it ourselves. at just I repeating question we've without

Unidentified Analyst

Jim Sure. into and sort of I ClearSign. on for I it Obviously, apologize very appreciate we're thinking it. bullish

have of the some retail the want And so sort that concerned of there's but are general concerning see the fact proposition concerned kind these XXX% little they're about is and understand other to I you a Are be now sort both jumping month unrelated equity in didn't guys your been strategy? the guess value markets given market but ago here question or too Is certain popping, you about overstated, people the something that fast? that the I seen. just you, or day. that concerned that guys value make on to the in media management a maybe that, can to are way are is the sure it time, only being stock in way a opportunities the Are we've coverage you eye about seen some driven, for it's quite pleasant of about fairly is business up

Jim Deller

a have got are really really got we great got focused Yes, a us. validate on, good we chosen that focused And market. making business are we've successful. We've on just product. this really customers We've good really

Unidentified Analyst

that quite of, know into a mentioned looking there's exciting turning help that light business to get here. I us, you've of And the in you like been is, of no And in traditional for there over the broad towards and start that? the the flow of because But last call evaluation, who've us to that estimate ramp-up area trying result know you flows to a technology, sure now, there guys you are estimate matter that sort is towards looked of revenue sort of can turn I'm is financials followed at Is not you relationships lot sort stage of brushstrokes any the shed I clarity discounted optimism sort future. the with the cash finance sort on to positive. it those some of positive provide how more forward question an sort opportunity we've now? I'm for hard know confused, where sort everyone of like of those in on in and going what the that years. couple orders. is could we of that guess if obviously you the promise of that there it's approaching And expertise revenue your because in are and I And customers I've are how sort for cash of you developing that can exploratory had you

way flow, but when gauge. the also given us going it's to revenue don't seeing in very think have of And I those we positive numbers what sort currently to that do look that be numbers we appear, it's so big start a difficult a like. shock, Once for

looking your some Exxon are what with sort done, at to that goes what deal Exxon everything assuming goes give of of everything of sort in in you're the lower estimate, that way this of that your best for you plan can the technology bounds contract of I ballpark plan least and the of and to same sees and do? upper is that first according So, sort according if you

Rob Hoffman

me Hoffman. to, one. want this This is let Jim me do take you Rob

know, As you quite Chairman bit only do total but of what an take am was, put we thought in ClearSign. investor model company not business the market on may what to like. I We I analysis the not group the or approximately XX% may looks addressable together the of position a

And of so still a pointed own that's believe in gets as Jim what acceptance. own addressable obviously, percentage, result obviously, out had relative individual earlier, themselves. monstrous. predictions the really, each small that what is be can incented only And up do come end to make in And individual market investors for investor market, to very the their and to investor and homework figure they of even that's group out has to the their size I my ClearSign think if is

technology not on asset-light with revenues, period a think position protect very are profits for its model strong portfolio a provider we're make than to we a that IP to say have has that in margins, to guidance, the we we whether time. So, profitability, that give or to a hope or business that of other a to any, any long

we can at think that. I so, And leave it

Unidentified Analyst

just a of the shibboleth then in And with this hell of I'll size numbers. of paved to there's but opportunity, believer the follow one I'm jump sort that kind Absolutely. total in to road ask last is the back queue. market up big addressable the and

just it's really to for opportunity the is, a multiply And it, of so, because see thing heat capturing that an best you're the guys as you there's in about that given some percent I'm curious makes you that that. to up. sitting, sort of always And the sort someone in TAM. impossible The are you step by of what TAM looks you kind guys TAM first confident like, approximate are that how are like a in given of able business,

clarifies the same want sort at of are starting a the forward also of for some for as people me is a imagine on sort So, point but things you sort get like more can that of color this any business? guys, there that for bit of that I going opportunity side you the can to that least provide

Rob Hoffman

did are homework would burners they take other an say I've burner my got the expert and when as many successful XX has me. positions think I somewhat do in of people. to want the let question to internal but like take professionally a you for ours or answer no world, buy ClearSign entity the they years. to this ClearSign Exxon will go potential come my it for of In Well, words I've don't to and more. Obviously, to And have our spending to science invested to to only they money who kind not to a particular a I time more these or this us. into the step that most most if of with your think people because category is, have that, over at there's communicate convert stage combustion going engineers best that They like lot four. are guarantee next some they'd best, it that into guys buy thinking they they're thinking go about, that

to decision. Exxon is you the tell an listen well, do this, that's do technology so you And really to to it really we're make entity that tell depend we is anyone on what the depend works, believe, independent their has going an you on that to their to behind or putting assessment you like whether who want resources

Operator

our to closing would for the Deller turn like concludes remarks. This session. to And over Jim I conference any question-and-answer back

Jim Deller

for time. joining quarter your you today. ClearSign operator. call. XXXX everyone for first call And thank you, This conference you Thank our Technologies the concludes Thank

Operator

The you today's now has attending presentation. concluded. conference Thank for

disconnect. now may You

ClearSign Technologies (CLIR) 17 Jun 202020 Q1 Earnings call transcript