SEATTLE, Aug. 13, 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 second quarter ended June 30,
2018.
"Our ability to execute on the Company's growth plan was greatly
enhanced with the recent $11.7
million equity investment from clirSPV LLC. We believe that
we now have the balance sheet strength, the technological
leadership, and most importantly, enough active and advanced
customer engagements to convert our pipeline of increasing
commercial opportunities into meaningful revenue. We remain laser
focused on this objective," said Steve
Pirnat, Chairman and CEO of ClearSign.
Recent strategic and operational highlights during and
subsequent to the second-quarter included:
- Engaged Second Supermajor for Duplex Evaluation – The
second, unnamed supermajor oil and gas company joins ExxonMobil,
which has already commissioned and completed a comprehensive set of
qualification tests on the Company's Duplex™ technology. ClearSign
is now actively working with both supermajors to identify equipment
for initial, paid installations at their refinery locations 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.
- Pipeline of Commercial Opportunities is Accelerating –
In the past six months, ClearSign's business development efforts
resulted in more than a doubling of commercial opportunities to
approximately 70 active engagements. Active engagements include
customers that have requested proposals and pending orders. While
the precise timing of orders is difficult to determine, the Company
believes the increase demonstrates that it is making significant
progress towards broad based commercialization and remains
optimistic about the prospect of converting these opportunities
into meaningful revenue.
- 35% Emission Reduction with Pre-Engineered Fire Tube Boiler
Burner – The Company was recently able to achieve NOx emissions
down to 5 parts per million (ppm) corrected to 3% oxygen
concentrations without the use of expensive and inefficient
conventional emissions controls such as flue gas recirculation,
high excess air or selective catalytic reduction. This represents a
reduction of greater than 35%, versus previously reported emissions
performance characteristics. The Company believes that the latest
improvements now enable Duplex to cost-effectively meet the
strictest existing and upcoming environmental regulations in the
world, as such regulations relate to pre-engineered fire tube
boilers. The Company believes this market vertical is approximately
$1 billion.
- 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 – ClearSign appointed Mr. Hoffman to the Board of
Directors, who comes to the Company with more than 30 years of
capital markets experience and expertise.
The net loss for the second quarter was $2.4 million compared to $2.2 million a year ago. The difference was
primarily due to an increase in general and administrative
costs.
Cash and cash equivalents totaled $8.4
million as of June 30, 2018,
with no long-term debt outstanding. This compares with $1.2 million of cash and cash equivalents at
June 30, 2017.
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.
Second Quarter 2018 Conference Call
A conference call discussing the release of the Company's
results for the second quarter ending June
30, 2018 will be held today, August
13, 2018, at 4:30 PM Eastern
Time. To listen to the conference call, you should dial
1-866-372-4653 (international: +1-412-902-4217) five to ten minutes
before the scheduled start time and request to be connected to the
ClearSign Combustion Corporation conference call. Investors can
also access the call online through a listen-only webcast 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 the U.S. or 1-412-317-0088 from
abroad. Conference ID 10122735. 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
June 30,
|
|
For the Six Months
Ended
June 30,
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Sales
|
|
|
$
-
|
|
$
-
|
|
$
530,000
|
|
$
360,000
|
Cost of goods
sold
|
|
20,000
|
|
-
|
|
415,000
|
|
251,000
|
Gross profit
(loss)
|
|
(20,000)
|
|
-
|
|
115,000
|
|
109,000
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development
|
1,019,000
|
|
1,141,000
|
|
2,153,000
|
|
2,315,000
|
General and
administrative
|
1,351,000
|
|
1,110,000
|
|
2,630,000
|
|
2,438,000
|
Total
operating expenses
|
2,370,000
|
|
2,251,000
|
|
4,783,000
|
|
4,753,000
|
Loss from
operations
|
|
(2,390,000)
|
|
(2,251,000)
|
|
(4,668,000)
|
|
(4,644,000)
|
Interest income,
net
|
|
1,000
|
|
15,000
|
|
1,000
|
|
29,000
|
Net loss
|
|
|
$
(2,389,000)
|
|
$
(2,236,000)
|
|
$
(4,667,000)
|
|
$
(4,615,000)
|
Net Loss per
share
|
|
$
(0.11)
|
|
$
(0.14)
|
|
$
(0.24)
|
|
$
(0.30)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance
Sheets
|
(unaudited)
|
|
|
|
|
|
|
|
June
30,
|
|
|
|
|
|
|
|
2018
|
|
2017
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
|
$
8,359,000
|
|
$
1,247,000
|
Contract
assets
|
|
|
|
|
|
39,000
|
|
184,000
|
Prepaid expenses and
other assets
|
|
|
|
|
693,000
|
|
366,000
|
Total current
assets
|
|
|
|
|
9,091,000
|
|
1,797,000
|
|
|
|
|
|
|
|
|
|
|
Fixed assets, net,
and other assets
|
|
|
|
|
408,000
|
|
508,000
|
Patents and other
intangible assets, net
|
|
|
|
|
1,941,000
|
|
1,856,000
|
|
|
|
|
|
|
|
|
|
|
Total
Assets
|
|
|
|
|
|
$
11,440,000
|
|
$
4,161,000
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
|
|
|
$
809,000
|
|
$
768,000
|
Current portion of
lease liabilities
|
|
|
|
|
163,000
|
|
159,000
|
Accrued compensation
and taxes
|
|
|
|
|
439,000
|
|
607,000
|
Total current
liabilities
|
|
|
|
|
1,411,000
|
|
1,534,000
|
Long Term
Liabilities:
|
|
|
|
|
|
|
|
|
Long term lease
liabilities
|
|
|
|
|
113,000
|
|
195,000
|
Total
liabilities
|
|
|
|
|
|
1,524,000
|
|
1,729,000
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
Equity:
|
|
|
|
|
|
|
|
|
Common stock, $0.0001
par value, 21,417,909 and 15,608,853 shares issued
and outstanding at June 30, 2018 and December 31, 2017,
respectively
|
|
|
|
|
2,000
|
|
2,000
|
Additional paid-in
capital
|
|
|
|
|
64,592,000
|
|
52,441,000
|
Accumulated
deficit
|
|
|
|
|
|
(54,678,000)
|
|
(50,011,000)
|
Total stockholders'
equity
|
|
|
|
|
9,916,000
|
|
2,432,000
|
|
|
|
|
|
|
|
|
|
|
Total
Liabilities and Stockholders' Equity
|
|
|
|
|
$
11,440,000
|
|
$
4,161,000
|
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SOURCE ClearSign Combustion Corporation