SEATTLE, Nov. 8, 2018 /PRNewswire/ -- ClearSign Combustion
Corporation (Nasdaq: CLIR) ("ClearSign" or the "Company"), an
emerging leader in industrial combustion technologies that improve
energy and operational efficiencies while dramatically reducing
emissions, today announced its results for the third quarter ended
September 30, 2018.
"The Company continues to move forward on many fronts, the most
important of which is expanding our pipeline of commercial
opportunities," said Steve Pirnat,
CEO of ClearSign. "We are now working on 75 active
opportunities, up from 68 last quarter, with a wide range of
customers from large refiners to global supermajors to leading
industrial boiler manufacturers. While we have not disclosed the
revenue potential associated with this growing pipeline, I can
report it increased 45% since our last update and provides a clear
path to breakeven and ultimate profitability, if successful."
Pirnat continued, "These figures, of course, do not include the
prospects for our Duplex technology in China. I'm equally encouraged by our progress
in this key market and look forward to providing important updates
on this potentially transformative project in the coming
weeks."
"Last, but not least, the regulatory environment continues to
support reduced emissions levels and greater fines for
non-compliance as people demand a cleaner, healthier environment
for themselves and their children. These regulations will vary by
geographic area, and the size and type of the asset like fired
heaters or industrial boilers. While the regulators are actively
seeking proven solutions to improve air quality, projects like the
recently announced collaboration among Clearsign Combustion, a
southern California refiner and
the SCAQMD are excellent examples of proactive efforts to reduce
emissions to BACT using ClearSign's patented Dulpex
technology," concluded Mr. Pirnat.
Recent strategic and operational highlights during and
subsequent to the third quarter included:
- Closed $11.7 Million Equity
Investment – The Company closed a private placement
of 5.2 million shares of common stock at a price
of $2.25 per share with clirSPV LLC, a single purpose
vehicle capitalized by a small group of experienced high net-worth
and single-family office investors. Proceeds from the offering are
being used to accelerate penetration into target verticals in
domestic and international markets and continue product development
efforts.
- Appointed Wall Street Veteran, Robert T. Hoffman Sr.,
to the Board of Directors – On July
20, Mr. Robert T. Hoffman Sr.
was appointed to the Board of Directors. Mr. Hoffman comes to
the Company with more than 30 years of capital markets experience
and expertise. Subsequently, on November
6, the Board of Directors voted to separate the roles of CEO
and Chairman and appointed Mr. Hoffman to serve as Chairman,
effective immediately.
- Continued Progress With Two Supermajors for Duplex
Evaluation – On July 26,
ClearSign announced it engaged with a second, unnamed supermajor
oil and gas company, which joins the previously announced
engagement with ExxonMobil. After recent visits with both
supermajors, ClearSign believes the process of identifying
equipment for initial, paid installations at the respective
refinery locations will be completed in the coming months. The
Company believes this development reaffirms the increasing
commercial interest from global supermajors and serves as an
important validation of Duplex™ technology.
- Announced Management and Board Composition and Compensation
Changes - Company CEO Steve
Pirnat announced his desire to retire when his contract
expires on Dec. 31, 2018. A search
for a successor is already underway with a nationally recognized
search firm. Mr. Pirnat has agreed to stay on as long as necessary
to ensure a smooth transition for the Company and key customers.
Additionally, Director Jeffrey L.
Ott stepped down from the Board to focus on his
responsibilities and time commitment as the President of TEAM
Industrial's Product and Service Line Management and Quest
Integrity. The Board recognizes the value of refreshing its
membership and is actively working with the National Association of
Corporate Directors to find director candidates whose skills and
personalities will complement the skills of the incoming CEO and
the Board's incumbent members. On November
6th, the Board agreed to reduce the annual
compensation paid to non-employee directors and to change from a
cash-based to an all-equity based compensation structure. The
members of the Board have also decided to accelerate the scheduling
of the Company's annual meeting to the earliest practical date in
order to introduce the Company's stockholders to the new Board
members.
- Partnered With Southern California Refiner on
Regulator-Funded Demonstration Project: The previously
announced project with the South Coast Air Quality Management
District (SCAQMD) will demonstrate ClearSign's Duplex technology as
a best available control technology (BACT) candidate to achieve
ultra-low emissions levels in refinery process heaters and other
types of fired equipment. The refiner has issued a commitment
letter to the Company, subject to final approval by the
SCAQMD.
- Entered Final Stage of Installation on China Heating
District Project: As announced last quarter, the Company
continued to work with a large state-owned enterprise on a retrofit
project for a major Chinese heating district group. ClearSign staff
are currently in China finalizing
the installation to satisfy the project testing requirements before
the start of heating season.
The net loss for the second quarter was $2.3 million compared to $2.5 million a year ago. The difference was
primarily due to a decrease in general and administrative
costs.
On July 20, 2018, ClearSign
received approximately $11.7 million
in net cash proceeds from the closing of a private placement of its
common stock.
Cash and cash equivalents totaled $18.1
million as of September 30,
2018, with no long-term debt outstanding.
Shares outstanding at September 30,
2018 were 26,660,980.
Third Quarter 2018 Conference Call
A conference call discussing the release of the Company's
results for the third quarter ending September 30, 2018 will be held today,
November 8, 2018, at 5:00PM Eastern Time. Investors interested
in participating can dial 1-866-372-4653 within U.S. or
1-412-902-4217 from abroad. Investors can also access the call
online through a listen-only webcast at
https://www.webcaster4.com/Webcast/Page/987/27900 or on the
investor relations section of the Company's website at
http://ir.clearsign.com/overview.
The webcast will be archived on the Company's investor relations
website for at least 90 days and a telephonic playback of the
conference call will be available by calling 1-877-344-7529 within
U.S. or 1-412-317-0088 from abroad. Conference ID 10125487. The
telephonic playback will be available for 7 days after the
conference call.
About ClearSign Combustion Corporation
ClearSign Combustion Corporation designs and develops products
and technologies for the purpose of improving key performance
characteristics of combustion systems, including emissions and
operational performance, energy efficiency and overall
cost-effectiveness. Our patented Duplex™, Duplex Plug & Play™
and Electrodynamic Combustion Control™ platform technologies
enhance the performance of combustion systems in a broad range of
markets, including the energy (upstream oil production and
down-stream refining), commercial/industrial boiler, chemical,
petrochemical, and power industries. For more information, please
visit www.clearsign.com.
Cautionary note on forward-looking statements
All statements in this press release that are not based on
historical fact are "forward-looking statements." You can find many
(but not all) of these statements by looking for words such as
"approximates," "believes," "hopes," "expects," "anticipates,"
"estimates," "projects," "intends," "plans," "would," "should,"
"could," "may," "will" or other similar expressions. While
management has based any forward-looking statements included in
this press release on its current expectations, the information on
which such expectations were based may change. These
forward-looking statements rely on a number of assumptions
concerning future events and are subject to a number of risks,
uncertainties and other factors, many of which are outside of our
control, which could cause actual results to materially differ from
such statements. Such risks, uncertainties and other factors
include, but are not limited to, general business and economic
conditions, the performance of management and our employees, our
ability to obtain financing, competition, whether our technology
will be accepted and other factors identified in our Annual Report
on Form 10-K filed with the Securities & Exchange Commission
and available at www.sec.gov and other factors that are to be
detailed in our periodic and current reports available for review
at www.sec.gov. Furthermore, we operate in a competitive
environment where new and unanticipated risks may arise.
Accordingly, investors should not place any reliance on
forward-looking statements as a prediction of actual results. We
disclaim any intention to, and undertake no obligation to, update
or revise forward-looking statements to reflect events or
circumstances that subsequently occur or of which we hereafter
become aware.
ClearSign
Combustion Corporation
|
Statements of
Operations
|
(unaudited)
|
|
|
For the Three
Months Ended
September 30,
|
|
For the Nine
Months Ended
September 30,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Sales
|
|
$
-
|
|
$
-
|
|
$
530,000
|
|
$
360,000
|
Cost of goods
sold
|
|
9,000
|
|
15,000
|
|
424,000
|
|
266,000
|
Gross profit
(loss)
|
|
(9,000)
|
|
(15,000)
|
|
106,000
|
|
94,000
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development
|
|
980,000
|
|
1,329,000
|
|
3,133,000
|
|
3,644,000
|
General and
administrative
|
|
1,326,000
|
|
1,131,000
|
|
3,956,000
|
|
3,569,000
|
Total operating
expenses
|
|
2,306,000
|
|
2,460,000
|
|
7,089,000
|
|
7,213,000
|
Loss from
operations
|
|
(2,315,000)
|
|
(2,475,000)
|
|
(6,983,000)
|
|
(7,119,000)
|
Interest income,
net
|
|
23,000
|
|
3,000
|
|
24,000
|
|
32,000
|
Net loss
|
|
$
(2,292,000)
|
|
$
(2,472,000)
|
|
$
(6,959,000)
|
|
$
(7,087,000)
|
Net Loss per
share
|
|
$
(0.09)
|
|
$
(0.16)
|
|
$
(0.32)
|
|
$
(0.46)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance
Sheets
|
(unaudited)
|
|
|
|
|
|
|
September
30,
|
|
|
|
|
|
|
2018
|
|
2017
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
|
|
$
18,078,000
|
|
$
1,247,000
|
Contract
assets
|
|
|
|
|
|
39,000
|
|
184,000
|
Prepaid expenses and
other assets
|
|
|
|
|
|
576,000
|
|
366,000
|
Total current
assets
|
|
|
|
|
|
18,693,000
|
|
1,797,000
|
|
|
|
|
|
|
|
|
|
Fixed assets, net,
and other assets
|
|
|
|
|
|
372,000
|
|
508,000
|
Patents and other
intangible assets, net
|
|
|
|
|
|
1,929,000
|
|
1,856,000
|
|
|
|
|
|
|
|
|
|
Total
Assets
|
|
|
|
|
|
$
20,994,000
|
|
$
4,161,000
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
|
|
|
|
$
778,000
|
|
$
768,000
|
Current portion of
lease liabilities
|
|
|
|
|
|
163,000
|
|
159,000
|
Accrued compensation
and taxes
|
|
|
|
|
|
650,000
|
|
607,000
|
Total current
liabilities
|
|
|
|
|
|
1,591,000
|
|
1,534,000
|
Long Term
Liabilities:
|
|
|
|
|
|
|
|
|
Long term lease
liabilities
|
|
|
|
|
|
73,000
|
|
195,000
|
Total
liabilities
|
|
|
|
|
|
1,664,000
|
|
1,729,000
|
|
|
|
|
|
|
|
|
|
Stockholders'
Equity:
|
|
|
|
|
|
|
|
|
Common stock, $0.0001
par value, 26,660,980 and 15,608,853 shares issued and outstanding
at September 30, 2018 and December 31, 2017,
respectively
|
|
|
|
|
|
3,000
|
|
2,000
|
Additional paid-in
capital
|
|
|
|
|
|
76,297,000
|
|
52,441,000
|
Accumulated
deficit
|
|
|
|
|
|
(56,970,000)
|
|
(50,011,000)
|
Total stockholders'
equity
|
|
|
|
|
|
19,330,000
|
|
2,432,000
|
|
|
|
|
|
|
|
|
|
Total Liabilities and
Stockholders' Equity
|
|
|
|
|
|
$
20,994,000
|
|
$
4,161,000
|
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SOURCE ClearSign Combustion Corporation