ClearSign Applied sciences Company (NASDAQ:CLIR) Q1 2023 Earnings Convention Name Could 18, 2023 5:00 PM ET

Firm Individuals

Matthew Selinger – Investor Relations

Jim Deller – President, Chief Govt Officer

Brent Hinds – Vice President, Finance, Controller

Convention Name Individuals

Amit Dayal – H.C. Wainwright

Robert Kecseg – Las Colinas

Operator

Good day, and welcome to the ClearSign Applied sciences’ First Quarter 2023 Convention Name. [Operator Instructions] Please word this occasion is being recorded. I’d now like to show the convention over to Matthew Selinger of Agency IR Group. Please go forward.

Matthew Selinger

Good afternoon, and thanks, operator. Welcome, everybody, to the ClearSign Applied sciences Company first quarter 2023 outcomes convention name. Throughout this convention name, the corporate will make forward-looking statements. Any assertion that isn’t an announcement of historic truth is a forward-looking assertion. This consists of remarks concerning the firm’s projections, expectations, plans, beliefs and prospects. These statements are based mostly on judgments and evaluation as of the date of this convention name and are topic to quite a few vital dangers and uncertainties that would trigger precise outcomes to vary materially from these described within the forward-looking statements. The dangers and uncertainties related to the forward-looking statements made on this convention name embrace, however aren’t restricted to, whether or not discipline testing and gross sales of ClearSign merchandise shall be efficiently accomplished, whether or not ClearSign shall be profitable in increasing the marketplace for its merchandise and different dangers which might be described with ClearSign’s public periodic filings with the SEC, together with the dialogue within the Danger Components part of the 2022 annual report on Type 10-Okay and the quarterly report on Type 10-Q for the quarterly interval ended March 31, 2023. So besides as required by legislation, ClearSign assumes no duty to replace these forward-looking statements to replicate future occasions or precise outcomes and doesn’t intend to take action.

So with me on the decision in the present day are Jim Deller, ClearSign’s President and Chief Govt Officer; and Brent Hinds, ClearSign’s Vice President of Finance and Controller. So at this level within the name, I wish to flip the decision over to the VP of Finance, Brent Hinds. So Brent, please go forward.

Brent Hinds

Thanks, Matthew, and thanks to everybody for becoming a member of us right here in the present day. Earlier than I start, I’d like to notice that our monetary outcomes on Type 10-Q had been filed with the SEC on Could 15. And with that, I’d like to offer an summary of the financials for the primary quarter of 2023.

The corporate acknowledged roughly $900,000 in revenues in the course of the 3 months ended March 31, 2023, as in comparison with zero revenues for a similar interval in 2022. The vast majority of our revenues for this quarter had been derived from a burner efficiency take a look at. As it’s possible you’ll recall, in discussions in our final investor name, we had efficiently executed a buyer witness take a look at on the Zeeco take a look at facility throughout Q1. Finishing this work happy the contractual efficiency obligation, which allowed us to acknowledge the related revenues. We additionally had a good quarter from a money perspective. Our internet money utilized in operations for the quarter ended March 31, 2023, was roughly $554,000 in comparison with roughly $1.5 million for a similar interval in 2022. That could be a year-over-year lower of roughly $1 million.

Now turning our focus from money to revenue and loss. Our internet loss for the three months ended March 31, 2023, was roughly $1.4 million, which is comparatively constant when in comparison with the identical quarter in 2022. We now have roughly $8.5 million in money and short-term investments as of March 31, 2023. There have been roughly 38.5 million shares of frequent inventory excellent as of March 31, 2023. We now have confidence in our monetary place and steadiness sheet. And with our quarter ending balances, we’ve got ample working capital out there to hold us to 2024, and that’s with out money from every other sources. However, we do count on buyer money collections to proceed in 2023. As we’ve got mentioned on prior calls, buyer money collections will usually start previous to income recognition.

With that, I wish to flip the decision over to our CEO, Jim Deller. Jim?

Jim Deller

Thanks, Brent, for the monetary overview. I thank everybody for becoming a member of us on the decision in the present day and in your curiosity in ClearSign. It has been only some weeks since our final replace name, however we do have extra developments to share with you. On in the present day’s name, I’ll evaluation our enterprise segments, beginning with course of burners and our most up-to-date Multi Heater announcement. Subsequent, I’ll contact on the developments in our boiler burner enterprise after which replace you on China and our progress there.

With reference to our course of burner phase, most of you will have seen our announcement concerning the engineering order for 2 heaters that was launched in the course of April, April 19 to be particular. This order is from an early adopter of our expertise in California. So this can be a repeat order from an present buyer. Moreover, this buyer got here again to ClearSign after initiating another choice to put in a conventional selective catalytic discount of SCR, NOx management system and inherent complexities related to such a system. As said in our press launch, the engineering buy order for this venture said that the procurement and fabrication of burners could also be added at a later date or in no way.

So there was no expectation or assumption that this was going to progress and turn into extra than simply the preliminary engineering section. And simply yesterday, we had been joyful to substantiate that the complete venture is transferring ahead with the receipt of a purchase order order for the procurement and fabrication of burners for the 2 separate course of heaters. What’s notable about this venture is that it’s the provide of burners for 2 totally different multi-burner heaters with a complete of 13 burners. The gasoline gasoline consists of hydrogen, so this won’t solely give us precious installations, however we imagine will validate our expertise, but in addition installations demonstrating {our capability} to manage NOx emissions from gasoline gases containing concentrations of hydrogen gasoline as is anticipated to be an growing want out of accelerating worth sooner or later.

This venture illustrates the purpose that it’s value emphasizing in gentle of the worldwide decarbonization and environmental justice initiatives. Installations similar to this, demonstrating the aptitude of ClearSign expertise to manage NOx emissions to a degree ample to keep away from the capital and operational necessities of SCRs and obtain single-digit NOx ranges burning important concentrations of hydrogen within the gasoline gasoline illustrates our vital contribution to the last word aim of decarbonization. That’s the operation with hydrogen gasoline gasoline. The discount of greenhouse gasoline and ground-level ozone by way of the management of NOx emissions to pretty low ranges and by offering cleaner native air and eliminating potential emissions of ammonia as our function of SCR methods additionally assist environmental justice initiatives. We very a lot stay up for finishing this venture and seeing these burners in operation in California.

Our 20 burner Southern California venture is progressing properly. As famous on our final name, the ultimate witness take a look at went as deliberate, and we’re fabricating the burners for supply to our buyer. For these which might be , we’ve got posted a abstract model of this take a look at information and report on our web site as we imagine the info and particulars are informative to specialists from the business, traders and different stakeholders alike. This may be discovered on our web site on the method burner web page within the merchandise part labeled take a look at outcomes. Alternatively, simply go to the technical library part and look underneath course of burner white papers. We’re scheduled to be absolutely full with the manufacture and supply of those burners later this yr, which can largely full this order. At the moment, we would not have affirmation whether or not the location shutdown throughout which these burners shall be put in shall be undertaken in mid-2024 or maybe later because the timing of this work relies on our purchasers’ plans and shutdown scheduling. Keep in mind that there are many actions included in these refinery shutdowns, so the planning course of is complicated and depending on a large number of things, a lot of which have little or nothing to do with ClearSign burners.

As talked about on the final name, whatever the eventual set up timing, we count on to have the ability to bill and obtain cost upon supply of the burners by the tip of the yr and solely a small a part of the acquisition order income and money will stay till set up A byproduct of this venture is that we’ve got the burners used for the demonstration at our associate Zeeco’s facility. These weren’t a part of the ultimate manufacturing run and won’t be included within the cargo to California. These burners shall be stored for demonstration functions for potential prospects and stakeholders. To that finish, we’ve got buyer demonstration occasions deliberate for the approaching months. These burners exhibit NOx emissions numbers considerably beneath the 5 PPM assure and strong efficiency all through the working vary. That is vital as a result of on this business, whereas we’ve got introduced and promoted our burner expertise, for many business individuals seeing in individual is believing.

Lastly, in our burner phase, I wish to point out our 100% hydrogen low NOx burner growth. On the final name, we talked about that we’ve got accomplished the profitable testing of this new burner. The primary section of this venture was funded by a Division of Vitality grant of $250,000. Information has been submitted for a Section 2 grant, which is as much as $1.6 million over a interval of two years. We count on to study if this software is accredited by the tip of July. This venture will lengthen our profitable Section 1 proof-of-concept demonstration to create a full vary of economic course of burners. As we had been the one firm to have been granted a Section 1 grant for this excessive hydrogen-fuel burner venture, we’re optimistic that the Section 2 grant will even be awarded to ClearSign.

The target of this venture is to develop and commercialize a spread of burners that can allow the management of NOx emissions to the degrees required to manage ground-level ozone in critically polluted areas, mixed with the adoption of the brand new hydrogen financial system and use of hydrogen gasoline for industrial heating. The anticipated end result is to realize reductions within the industrial emissions of each carbon dioxide and nitrogen oxides. At the moment, the out there hydrogen burning options are in a position to scale back CO2, however the byproduct is larger NOx. Our novel burner is anticipated to allow zero CO2 by burning pure hydrogen in business purposes however importantly to create NOx emissions so low that they compete with SCRs in a low single-digit components per million vary. We’re additionally already in discussions with potential prospects concerning the long run deployment and specifically, the adopter alternatives for this new hydrogen-focused burner expertise.

On a aspect word concerning authorities funding and business funded grants, we’re seeing curiosity from extra events concerning our low emissions applied sciences. As I’ve mentioned earlier, we’re seeing different alternatives additionally, some that we plan to pursue for ourselves and a few that will present alternatives in partnership with prospects. Practically all are associated to decarbonization and/or air pollution discount and customarily have a consideration of social fairness or environmental justice, which helps our enterprise and goal market as properly. We see these grants as a way to speed up the event of our expertise and in addition however extra vital to us to incentivize the important preliminary installations mandatory to achieve the boldness of consumers and the air regulators or to place it one other means, we’re not a analysis firm. We see the funding and grants out there as a way to an finish fairly than an goal of its personal. The grants not solely assist fund and lift the precedence of the event of our expertise for brand spanking new purposes, however very importantly, due to the best way that the grants are structured, additionally they present a mechanism to incentivize prospects to place new expertise when developed into use.

I’ll now transfer on to growth in our boiler burner product line. On the final name, we went over our preliminary introduced gross sales of boiler burners, each in California and Texas. The primary burner order was bought right into a medical and enterprise waste providers firm and was along with our associate, California Boiler into the San Joaquin Valley Air Air pollution Management District of California. That is on schedule to put in within the present that’s second quarter. Whereas this primary sale was important in the truth that it was our first California business 5G boiler burner order in and of itself, it’s also very encouraging as a result of the shopper got here to us for our resolution after competing merchandise failed to fulfill the brand new district sub-5PPM NOx emissions necessities.

California Boiler additionally has a 500 horsepower rental boiler with our burner in it that shall be deployed and an operation on this website to supply the shopper with steam in the course of the set up of the brand new burner. It will present us an extra reference level and a few extended run time on that bigger set up. The second order was additionally bought into the California market. Our burner shall be a part of our recycling deliberate upgrades that can improve vitality effectivity in addition to lowering NOx for one among its prospects nationwide websites. The second boiler burner bought into the California market was to a nationwide supplier of recycling providers to the meals manufacturing and restaurant industries and shall be put in with a brand new boiler. This was bought as a package deal with our associate, California Boiler into the San Joaquin Valley Air Air pollution Management District of California. The burner and new boiler are scheduled to be put in within the third quarter of 2023.

We imagine the second burner specifically, will actually set the bar for boiler burners. This burner is bigger and is within the dimension vary requiring sub-2.5 PPM NOx emissions, a functionality that we imagine is exclusive to ClearSign burners or the options require the inclusion of an SCR and the related capital prices and ammonia dealing with that go together with them. As we said within the press launch on the time, this burner is our first business boiler burner sale guaranteeing sub-2.5 PPM NOx particularly developed to allow purchasers like this to function in compliance with California Central Valley area’s new rules and with out the necessity for ammonia and the hazards related to such potent chemical substances.

To assist clarify why this set up is so vital, the boiler into which our burner is to be put in is from a significant worldwide provider, demonstrating our burner of working in business use and assembly the two.5 PPM NOx requirement, will place us properly to be included because the burner expertise of their future boiler gross sales when low NOx emissions are required. Enjoying the situation ahead, hypothetically, if we allow this boiler provider to have a less expensive and SCR free providing, we count on that they may have a aggressive benefit over their competitors, both permitting them to win a disproportionate share of the alternatives which shall be good for us or forcing different boiler producers to observe go well with and supply ClearSign core burners, which can clearly even be good for us.

The third boiler sale was distinctive in the truth that it’s our first software of our boiler burner expertise right into a non-boiler heater and really importantly, our first sale to a refinery heater producer, who has included our burner as a selected resolution to fulfill their prospects’ wants. Additionally, it was our first sale into Texas the place after California, we anticipate the Texas Gulf Coast area would be the subsequent giant marketplace for us. Lastly, the sale can also be the primary to this world chemical substances firm and the primary within the industrial chemical substances sector.

The manufacture of all of those burners is underway and on schedule. We’re very optimistic that getting these installations up and operating will present an important catalyst for others. These will even present a benchmark for the air districts in California and the remainder of the USA, and we count on these installations to supply a reference as they think about modifications and updates to their clear air rules.

When speaking about our asset-light technique, heater and boiler producers are a outstanding channel to marketplace for burner gear as burners are a part of nearly all the things they promote. It’s gratifying that we’re establishing relationships and belief with a few of these producers. As we’ve got mentioned earlier than, we’re very inspired by the early boiler burner orders in a number of markets this yr, however we’re additionally inspired by our checklist of excellent proposals and stay up for including to this checklist.

Turning to China. Our President of Asia, Manny Menendez, is over in China as we communicate. Mr. Menendez arrived in China final week and hit the bottom operating, so I do have some updates to offer and count on to have additional information within the close to future, each concerning progress and anticipated time traces. His main targets are to get the 500-horsepower 5G boiler burners put in, commissioned after which authorities licensed. The five hundred horsepower boiler dimension is our prime precedence as we together with Shuangliang imagine that there’s a readily addressable market within the area of Shenzhen, the place the federal government has just lately rolled out new Road NOx emission necessities. Shenzhen has a inhabitants within the area of 18 million to twenty million individuals and is one among China’s richest cities, if not the richest, after Shanghai and Beijing. Along with that, the NOx rules there’ll now be essentially the most stringent in China.

A visit is deliberate collectively with our associate Shuangliang to that area to advertise our joint capabilities and distinctive providing to each prospects within the space and in addition the native authorities officers accountable for administering the brand new air high quality requirements. As soon as these are full and authorities burner certification is in hand, we count on to see some early gross sales and anticipate that we will have some preliminary orders leading to deployments of our expertise and our built-in boiler burner package deal from our Shuangliang partnership in China in 2023 and persevering with in 2024. For example the tempo of environmental regulatory developments in China, Hebei province, which is the massive province subsequent to Beijing, has simply rolled out a brand new emission requirement requiring lower than 10 PPM NOx for all boilers. We’re additionally planning to have interaction with prospects and authorities officers in that area, just like Shenzhen within the close to future.

We just lately participated within the ISH China & CIHE exhibition held Could 11 to Could 13, the place we met potential prospects and doable collaborators for ClearSign. The ISH occasion had a devoted vitality part targeted particularly on industrial clear vitality. Our strategic alliance associate, Shuangliang Group, had a formidable sales space at that occasion.

Earlier than ending this replace on our China progress, I wish to draw your consideration to the extent of engagement and funding being made by our associate, Shuangliang, in China. These of you who observe us on LinkedIn can have seen yesterday, footage of the five hundred horsepower boiler Shuangliang have constructed and a high-pressure gasoline line that they have permitted and put in together with the brand new water line to allow them to exhibit a 500 horsepower boiler burner for certification. They’ve made important different investments additionally, together with facilitating the certification of our 125 horsepower boiler burner. We now have collectively made effort to maintain this relationship sturdy by way of our for separation and slowdown because of COVID and to see such materials proof of the power of this relationship and its indication of the magnitude of the market potential in China is reassuring.

Wanting ahead to the remainder of the yr 2023, we are going to proceed with the manufacture of a giant California refinery order following the profitable buyer demonstration earlier this yr. This will even ship important income and gross margin. We’ll full the manufacturing demonstration testing of burners for the latest two-heater order for our shopper website in California, adopted by the manufacture and provide of the burners. Set up shall be in phases beginning in early 2024. You’ll proceed to see elevated promotion of our course of burners and we’re planning to carry business demonstrations on the take a look at facility of our associate Zeeco this summer time. We’re additionally optimistic about our prospects for the follow-on hydrogen burner growth grant and imagine we’re properly positioned for additional grants from a wide range of sources to help and speed up the adoption of our hydrogen appropriate expertise.

Following our latest chemical firm order, we stay up for growing enterprise in Texas and in addition by way of heater corporations. For our boiler burner enterprise, we are going to ship our first business orders and stay up for having these items in operation in California and Texas. We count on to construct on this and improve the extent of inquiries that we’re seeing to maintain momentum in California and look to develop our enterprise in new markets like Texas, notably following the latest settlement between California Boiler and Gulf Coast boilers based mostly in that area. In China, we glance to progress our plans with Shuangliang together with burner certifications and profitable and delivering our first orders underneath that collaboration.

One refined change it’s best to count on to see as we transition to having business deployments of each our course of burners and boiler burners in service is a rise in promotional actions. A number of examples embrace, the complete scale demonstration burners I’ve talked about throughout our final name. This week, we’ve got a staff and a full-scale course of burner on show on the American Petroleum Refining and Tools Requirements assembly in Seattle, and a second staff with a full-size demonstration of 5G boiler burner on the Texas Environmental Commerce Truthful and Convention onus by the Texas Fee on environmental high quality in Austin.

With that, I wish to open up the decision for questions. Please, operator?

Query-and-Reply Session

Operator

[Operator Instructions] The primary query in the present day comes from Amit Dayal with H.C. Wainwright. Please go forward.

Amit Dayal

Thanks. Good afternoon everybody. Congrats on all of the progress, guys. Good to see the orders and revenues beginning to come by way of. might you share possibly in greenback quantities, what the pipeline appears like for you at this level?

Jim Deller

I can provide some steering, Amit. We’re not [indiscernible] to offer greenback quantities, however we are going to attempt to give although the instruments to permit everybody to assemble an excellent understanding of the standing of the corporate there. Simply I’ve an merchandise, I’m positive there could also be some individuals new to the corporate on the road, an excellent common proxy for the gross sales value of our burners is within the area of $100,000 a burner. For the method burner orders, a burner design will even have some accompanying engineering and testing that the nice spherical quantity for that shall be about $250,000. So, we do announce the orders that we get. And the place we are able to, we are going to embrace the variety of burners included in that order. And clearly, now that we do have revenues being reported in our quarterly studies, you even have a way to measure the revenues being reported. So clearly, the pipeline there would be the distinction between the worth of the orders received and the income reported. I do know that’s not a precise quantity, however hopefully that offers everybody the instruments to a minimum of maintain gauge on the work that’s in progress of the corporate and an excellent understanding of what to anticipate sooner or later.

Amit Dayal

Thanks for that. After which simply possibly adjoining to that, sequentially, as you begin delivering once more a few of this order ebook, ought to we count on sequential enhancements in your revenues by way of 2023, or will or not it’s a bit of lumpy, I assume relying on the way you ship the purchasers?

Jim Deller

Sure, good query. I believe it’s – all of us actually imagine we’re within the business section of this firm, I believe we’ve got mentioned that. But it surely’s additionally early levels. So, the orders that we’ve got introduced, it’s best to respect there are important orders, but in addition they’ll lead to lumpy income, that’s traditional phrase. However I believe what’s extra significant wanting ahead is as we get these orders out and put in and operational within the buyer websites, in order that they’re offering proof and reinsurance to these prospects and in addition to their friends and the opposite corporations round them. We count on that’s going to cut back the reservations that they could have of adopting out our expertise. We actually imagine that the worth of the expertise is powerful, we’ve got not seen an enormous pickup to-date due to the reservations our prospects have. We at all times are getting these first orders out, once more, however the first gross sales are going to be essentially the most troublesome. With these orders now in place going out into business operations, it could not have lots of affect on revenues in 2023, that’s fairly short-term. However I believe it’s significant to take a look at the long term projection and the meaningfulness of those orders that we’ve got, having acquired these first business orders and the impact that we anticipate that can have on our gross sales pipeline going ahead.

Amit Dayal

Okay. Thanks. Perhaps simply final one for me. Simply on the traces of the sales-related feedback. Because the commercialization efforts develop and as you get traction, how are you serious about type of organizing your gross sales pressure and your gross sales efforts? Are you continue to a minimum of within the near-term, going to be counting on a few of your companions that will help you and interact with prospects, etcetera, or are you slowly making an attempt to construct an inner staff as properly?

Jim Deller

Sure. Good query. It’s we’ve got set out with our, what we’ve got known as an asset-light technique again from the time that I joined the corporate again in 2019. The intention there was to allow us to leverage the expertise that we’ve got, but in addition to be as judicial as we are able to with the capital expenditure and mainly our traders’ cash. As a part of that technique, we’re working with alliance companions similar to Zeeco. For these of you who don’t know, Zeeco is the second greatest combustion gear producer on this planet. They’re on each single parts with an enormous gross sales pressure. And for our burner product line, we’ve got partnered with California Boiler, one of many main burner installers and repair corporations in California. What that does is it permits us to mainly have the attain and the assets of these large corporations, what we ourselves would not have to make the substantial investments to develop that functionality ourselves. Whereas we speak about gross sales, to maximise gross sales wanting ahead, these associate corporations are anticipated to be doing lots of the face-to-face conferences with purchasers. Nevertheless, I don’t imagine in leaving gross sales completely within the palms of our companions. We now have to assist them, definitely when – in circumstances of strategic gross sales, we shall be getting engaged with the purchasers. So, I don’t plan to tackle lots of ongoing recurring price to develop our gross sales staff. However on the identical time, we are going to ensure that we’ve got the gross sales functionality and in addition the instruments and the infrastructure to maximise strategic gross sales to develop our enterprise in new areas after which to assist our companions achieve success promoting our expertise.

Amit Dayal

Alright. Thanks a lot.

Jim Deller

Thanks, Amit.

Operator

Our subsequent query comes from Mark Cronis [ph], non-public investor.

Unidentified Analyst

Hello, Jim. I’ve seen an image of Mr. Menendez in China subsequent to the take a look at boilers in gasoline and water traces. How a lot did all of that price?

Jim Deller

I’ll elaborate on this. The brief reply is I actually don’t know. The work in China, these images had been taken on the location of our associate, Shuangliang. Shuangliang is definitely conglomerate, however an enormous, one of many main manufacturing corporations in China. We now have partnered with them to ship our boiler burner merchandise into China and to mix our burners into their boiler to permit us to collectively supply a particular package deal of low emissions gear. As a part of that enterprise, they’ve truly supplied all the prices for all the things they’ve completed there, getting that pipeline permitted in China, the high-pressure pipeline that’s required to run our 500-horsepower boiler burner of their boiler for certification was an enormous endeavor on their half. So, for the brief reply, aside from our relationship efforts, it didn’t truly price us something to place that in place. I believe the opposite factor I wish to word and I did contact on within the feedback for Shuangliang to hold that expense and to construct these assets themselves, not only for this take a look at, for these of you following, we’ve got additionally licensed 125 horsepower burner with Shuangliang in the identical means. And for them to place that price into our enterprise to me is simply reassuring as a result of it’s a really clear indication of their perception within the enterprise potential of this three way partnership in China and their dedication to their traces with ClearSign.

Unidentified Analyst

Alright. One other query I’ve truly in prior convention calls, you’ve gotten talked about that there was a rise in request for quotes. Are you able to give us an concept of the magnitude of that or…

Jim Deller

It’s exhausting to do actually get into lots of the quotes or additionally come into California Boiler instantly. So, even I can touch upon those that we see, however people who come into our companions, we don’t see these till they actually turn into significant alternatives. However I believe for everybody, it’s extra a tangible long run and extra strategically. And I believe understanding the importance of getting these first business orders out into the market and particularly into California and really giving our prospects some actual references and first-hand expertise of the expertise is what I see as essentially the most important indicator of what we should always count on sooner or later.

Unidentified Analyst

Alright. Thanks.

Jim Deller

Thanks, Mark.

Operator

The following query comes from Robert Kecseg with Las Colinas. Please go forward.

Robert Kecseg

Hi there, Jim.

Jim Deller

Hello Bob.

Robert Kecseg

To begin with, congratulations, I used to be going to say congratulations on such nice progress, I’m type of joyful that I can’t sustain with the totally different orders now, and I’m a bit of confused. However I used to be going to type of add to the gentleman earlier than concerning the elevated inquiry. Is there some type of like order of magnitude, I imply is there a noticeable distinction in an inquiry to your organization based mostly on what we’ve got seen within the gross sales bulletins that you’ve made?

Jim Deller

I imply Bob, I don’t wish to get into giving steering and in addition perceive that we get inquiries in a wide range of totally different ranges of seriousness. However simply for example, we’ve got groups out on the American Petroleum Institute Convention this week and the engagement we’ve got had this previous week there of the studies again, I used to be not there myself, however simply the interactions and the curiosity, and we had a sales space there and the variety of individuals coming to the sales space to take a look at that demonstration burner was rather a lot better than even we anticipated. I believe the blokes mentioned even on the very first day of the convention, they imagine about 75% of the those who got here as much as get a firsthand take a look at that demonstration burner we had on the API convention, so when you take examples like that, we’ve got by no means seen that earlier than.

Robert Kecseg

Okay. And I used to be going to say, again to the final name, I actually wished to go with your imaginative and prescient the place you’ve gotten the concept that ClearSign Core type of just like the Intel was for computer systems, I keep in mind you saying that a few years in the past, and that heater designer firm, Tulsa heater was a transparent instance of the ClearSign core that you simply had envisioned for the corporate. I used to be questioning whenever you had been at your earlier place, did your outdated firm get an set up like that the place it was bought to a kind of intermediate corporations like a heater designer firm, or is that type of distinctive? In different phrases, is that type of distinctive to our expertise?

Jim Deller

Bob, I should be a bit of cautious giving particulars, proper, for everybody not figuring out I labored for one of many burner corporations owned by Honeywell earlier than becoming a member of ClearSign. That firm didn’t even have any boiler burners, placing a – it relies upon the way you make clear the burner, the corporate that we bought our boiler burner into does use 4-Strat horizontally mounted burners. Sometimes, they’d be regardless of which provider they’d purchase processed heater burners of that configuration. That is the primary occasion that I do know the place we’ve got a standardized product that we design for a boiler, however are in a position to deploy into these totally different industries and even course of heaters and to promote to a heater producer fairly than simply being restricted to boiler producers.

Robert Kecseg

Proper. Okay. That’s type of what I used to be getting at. I respect that.

Jim Deller

Alright. Thanks, Bob.

Operator

This concludes our question-and-answer session. I wish to flip the convention over to Matthew to learn a query from the e-mail.

Matthew Selinger

Sure. Here’s a query from e-mail, if we might. Does ClearSign along with companions have ample manufacturing capability and assets to deal with and meet the quickly rising demand for the set up of ClearSign’s merchandise within the numerous markets?

Jim Deller

Sure. Good query. I don’t know who despatched that in, however I believe it’s very pertinent. I’m referring again to the earlier feedback, we talked concerning the asset-light technique we’ve got, a part of that signifies that as ClearSign we’ve got not invested closely in manufacturing capital and personnel to really manufacture it. We did nevertheless, plan and moved the corporate headquarters into Tulsa given that it allowed us to have interaction with companions and the nice manufacturing functionality. Zeeco, our course of burner associate, their headquarters are right here in Tulsa. They honestly are a worldwide firm. They’re the second greatest burner producer on this planet. They not solely have the take a look at facility, however they manufacture the method burners for us. We now have an settlement with them for that. They completely have the capability to fabricate all of ClearSign burners. In addition they have outsourced capabilities, ought to that be wanted. However on condition that they’re the second greatest burner producer on this planet, there’s lots of room for enlargement and for ClearSign to construct burners for us. On the boiler burner expertise, we do have manufactured and delivered the ClearSign Core burner half to California Boiler to incorporate that burner of their package deal. Tulsa has an enormous wealth of producing corporations that had been developed within the oil and gasoline and course of business. We now have labored with a couple of. We now have a few distributors that we use on a repeated foundation in the meanwhile. They’ve a really giant capability. So, I’ve completely no considerations there. And if or when the day comes that they don’t have the capability, there are a plethora of different producers right here in Tulsa or in definitely within the Midwest of we are able to attain out to, so I would not have any considerations about our means to fabricate and ship product.

Operator

Thanks in your questions. I wish to flip the convention again over to Jim Deller for any closing remarks.

Jim Deller

Thanks everybody in your curiosity and taking the time to take part in the present day. We stay up for updating you concerning our developments and talking with you all on our subsequent name.

Operator

The convention has now concluded. Thanks for attending in the present day’s presentation. You might now disconnect.