Yahoo Finance ClearSign Technologies Corp (CLIR) Q4 2023 Earnings Call Transcript Highlights: Significant ...
Capital Raised: $9.3 million from two offerings.
Cash and Cash Equivalents: $13.7 million post-capital raise.
Q4 2023 Revenue: $1.3 million, up from $50,000 in Q4 2022.
Full-Year 2023 Revenue: $2.4 million, a 642% increase from $374,000 in 2022.
Q4 2023 Gross Profit Margin: 43.9%, up 12.8% from previous year.
Net Cash Used in Operations (Q4 2023): $1.5 million, up $500,000 from Q4 2022.
Q4 2023 Net Loss: $1 million, a decrease of $300,000 from Q4 2022.
Full-Year 2023 Net Loss: $5.2 million, down $500,000 from 2022.
Release Date: April 23, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Can you provide some color on the items in the pipeline and how much that might translate into in terms of a dollar amount or backlog number? A: Jim Deller, CEO of ClearSign Technologies, explained that while it's challenging to assign a strict dollar figure to the pipeline, significant developments include global refiners requesting ClearSign's inclusion in project evaluations and a hydrogen producer adding ClearSign to their approved vendor list. These developments are seen as significant milestones in the company's commercialization path.
Q: With the recent financing, will part of the funds be used to build an internal sales team, considering the increasing interest and back validation? A: Jim Deller mentioned that while ClearSign is enhancing its sales capabilities, it involves both internal functions and partnerships. The strategy includes engaging third-party consultants and sales agents who are familiar with the industry and can efficiently expand ClearSign's reach due to their established customer relationships.
Q: How should we think about the sales ramping up for the four quarters of '24, and should we expect revenue distribution to be a bit uneven throughout the year? A: Jim Deller noted that revenue generation is closely tied to product shipments and project milestones. He highlighted that significant revenue drivers include the shipment of burners for California refinery projects and other major orders. However, due to the nature and timing of these orders, revenue distribution might appear uneven or lumpy throughout the year.
Q: Could you share more about the financial results for ClearSign Technologies in the fourth quarter of 2023? A: Brent Hinds, CFO, reported that the company recognized approximately $1.3 million in revenues for Q4 2023, a significant increase from $50,000 in the same period in 2022. The gross profit margin also improved to 43.9%, driven by shipments of process burners.
Q: What are the implications of the new Best Available Control Technology (BACT) thresholds established by California regulators for ClearSign's process burners? A: CEO Jim Deller highlighted that the new BACT thresholds, which were based on the performance of ClearSign's burners, do not specify the technology to be used but set performance levels for future regulations. This recognition is expected to influence future regulations and permit applications beyond California, validating the reliability and efficiency of ClearSign's solutions.
Q: Can you discuss the significance of the recent capital raise for ClearSign Technologies? A: Brent Hinds explained that the successful capital raise, amounting to approximately $9.3 million, enhances the company's financial flexibility and supports its commercial growth plans. This additional capital is expected to instill greater confidence among customers and suppliers.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
