Transcript: ClearSign Technologies Q1 2026 Earnings Conference Call

ClearSign Technologies (NASDAQ:CLIR) held its first-quarter earnings conference call on Wednesday. Below is the complete transcript from the call. Benzinga APIs provide real-time access to earnings call transcripts and financial data. Visit https://www.benzinga.com/apis/ to learn more. The full earnings call is available at https://www.webcaster5.com/Webcast/Page/3133/53993 Summary ClearSign Technologies Corp reported a decrease in revenue to $200,000 for Q1 2026, down from $400,000 in Q1 2025, mainly due to decreased spare part deliveries. Gross profit fell by approximately $589,000 due to lower revenues and a $410,000 warranty accrual for potential modifications at a California refinery. Net loss increased by $114,000 year-over-year despite a $369,000 decrease in general and administrative expenses. The company has approximately $7.7 million in cash and cash equivalents as of March 31, 2026. ClearSign is progressing with major projects, including a 32-burner project for a California refinery and a 36-burner order for a Texas refinery, showcasing its adaptable burner technology. Management highlighted successful demonstrations of their Gen 2 burner technology and expressed confidence in the future market for their products. ClearSign is observing increased engagement from major industry players and foresees a significant pickup in orders following the completion of ongoing projects. The company is expanding its addressable market with new product configurations and sees positive trends in regulatory environments globally. Full Transcript OPERATOR Good day everyone and welcome to ClearSign Technologies Corp first quarter 2026 earnings conference call. At this time, all participants are placed on a listen only mode. If you have any questions or comments during the presentation, you may press Star one on your phone to enter the question queue at any time and we will open the floor for your questions and comments after the presentation. It is now my pleasure to hand the floor over to your host, Matthew Sellinger, Investor Relations at ClearSign Technologies Corp. Sir, the floor is yours. Matthew Sellinger (Investor Relations) Good afternoon and thank you, operator. Welcome everyone to the ClearSign Technologies Corp first quarter 2026 corporate update call. During this conference call, the company will make forward looking statements. Any statement that is not a statement of historical fact is a forward looking statement. This includes remarks about the Company's projections, expectations, plans, beliefs and prospects. These statements are based on judgments and analysis as of the date of this conference call and are subject to numerous important risks and uncertainties that could cause actual results to differ materially from those described in the forward looking statements. The risk and uncertainties associated with the forward looking statements made in this conference call include, but are not limited to, whether field testing and sales of Clearsign's product will be successfully completed, whether Clearsign will be successful in expanding the market for its products, and other risks that are described in Clearsign's filings with the SEC, including those discussed under the Risk factors SECtion of the annual report on Form 10-K for the period ended December 31, 2025. Except as required by law, Clearsign assumes no responsibility to update these forward looking statements to reflect future events or actual outcomes and does not intend to do so. So with me on the call today are Jim Deller and Clearsign's Chief Executive Officer and Brent Hines, Clearsign's Chief Financial Officer. So with that, I'm going to turn the call over to Gio. Jim Deller (Chief Executive Officer) Thank you, Matthew. As always, I'd like to thank everyone for joining us on the call today and for your continued interest in Clearsign. Like our more recent quarterly calls, we will use a Q and A format for this session. Some of you have sent in questions ahead of time and we did assimilate those questions into the materials that we will cover today. So for the call today, Matthew will lead a Q and A session where we will go through the different business units much like our previous calls. If you wish, you can send in questions to our investor relations at MSelinger@mirgroup.com. So to start us off today, I'm going to hand over to Brent Hines who will go over the financial numbers for the first quarter for 2026. Brent Hines (Chief Financial Officer) Thank you, Jim. And thank you to everyone joining us here today. Before I begin, I'd like to note that our financial Results on Form 10Q was filed last week with the SEC. With that, I'd like to give an overview of our financial results in the first quarter of 2026. For the first quarter of 2026, the Company recognized approximately $200,000 in revenues compared to approximately 400,000 for the same period in 2025. This year over year decrease in revenues was predominantly driven by decreases spare part deliveries. During the first quarter this year, our gross profit for the quarter decreased compared to the same period in 2025. This decrease was mainly due to lower revenues and our warranty accrual $410,000 made in anticipation of potential modifications to some installed equipment in a California refinery. As a result, the year over year decrease in gross profit was approximately $589,000. Our net loss for the first quarter increased by $114,000 compared to the same period in 2025. The impact from the gross profit on our net loss was offset by a $369,000 decrease. In general and administrative expenses, our GNA expenses decreased in comparison to 2025 in large part due to reduced legal fees that were incurred during 2025. For a special committee of our Board of Directors that was decommissioned after our 2025 stockholding. Now let's shift focus to cash. Our net cash used in operations for the first quarter of 2026 was approximately 1.3 million compared to approximately 1.1 million in the same period in 2025. This year over year change was predominantly driven by a reduction in our current liabilities. As of March 31, 2026, we had approximately 7.7 million in cash and cash equivalents with approximately 5.4 million shares of common stock outstanding. And with that I'd like to turn the call over to our CEO Jim Deller. Matthew Sellinger (Investor Relations) Jim thank you Brent. Again, thank you everyone for joining us today. I'm actually going to hand over to Matthew Sellinger who's going to lead the question and answer session. Jim Deller (Chief Executive Officer) But just a reminder as we go through this, if you do have questions, you can send those in to MSelinger@mirgroup.com with that Matthew, I'll hand it over to you. Matthew Sellinger (Investor Relations) Great, Jim. Brent, thanks for joining me here today. We did just have a call a few weeks ago. However, we have been busy between now and then and we do have some significant events and development to discuss. So with that, let's kind of dive right in. Jim, just last week we announced an order for the next phase of a 32 burner project for a California refinery. So could we dive into this and talk about what do we mean by the next phase of this order? Jim Deller (Chief Executive Officer) Yeah, I think this is good. Especially investors new to Clearsign. So we were given the start of actually two orders late in 2025. One was four, six burners going down to a Texas refinery and then one for 32 burners destined for a refinery out in California. As is common with our projects, these are released in phase. The first phase was for the initial engineering and the computation, modeling where we basically simulate the burners and the burners effects and flow performance on a computer modeling system. That phase is now complete for the California order. The next phase of the project is then for us to fabricate or do the detailed engineering and fabricate the first article of those burners. We will then install that and demonstrate if we will make any optimizations necessary, but show it performing in a full scale test furnace at the Zeeco facility. Okay. And this is Jim. This is the ClearSign Core Generation 2 technology. Yes, in a modified form. So what's actually interesting about this order is, is the burner that was developed, the round burner that was developed as part of the SBIR program was our standard shape. But what we actually developed was a configurable architecture that we could then adapt to flat planes or different burner shapes or formats to fit into the variety of different heaters you find on a refinery, rather than just being restricted to the heaters that needed a round burner. So this particular order is for a heater that needs a long thin burner that actually fires up against a wall to make this heater work. That's just the type of heater this is. And this is then that in the press release we referred to it as a flat flame application. Yes. And so this then I'm going to go jump back a little bit. The Crystalline Core Gen 2 is really. You've referred to it as such in the past. It's a burner platform. Yep. Is that right? And you just mentioned the word there, which has configurable architecture, is that correct? That's what we refer to. Yes, I think that's a good description. I mean it's the way that the burner works is a series of components that creates the flow field that controls the NOx emissions and allows the burner to operate the way it does. But we can arrange those components to control the flame shape, the shape of the Burner, depending on the needs of the client further. So it's a very flexible technology that gives us that ability to adapt it to the different types of heaters, fit into different processes on refineries and chemical plants or wherever they need. Okay, so let's move back to the discussion of the order. So the progression of this order. Can you quantify what this might mean in terms of dollars? I can. I mean, this is an. There's more engineering in this particular project because it is one. It's a very technical heater, and it's also the first flat flame configuration of this type of burn we've done. So the engineering and testing portion is just shy of half a million dollars for this part of the order and the order we received. Okay, so with that, can we then take a step back? Can we break down kind of a, you know, call it an average process burner order by the phases and maybe the potential dollars on each phase. Could we map this out? I think we can. It's probably useful. I know we have a lot of new investors in clear time, I think, to make this easier. Let's talk about hypothetical project. The orders we started at the end of last year, post order we got one was for 36 burners going down. Texas one was 32. California take a hypothetical 30 burner order, and we've given guidance. An average price of a process burner is about $100,000. So for a 30 burner order, the equipment is going to be about $3 million. On top of that, there is typically about $300,000 in engineering, computer modeling, and testing that goes into the initial phase of the product as we dial the. The burner details. So as we walk through the typical process, as we've seen in this California order, typically about $150,000 would be the initial engineering and modeling the burners on the computational platform, showing the customer how they work, how they operate in heat, of what they should expect. The next phase is typically about a $250,000, $100,000 of that will be the first production burner, because that next phase is going to take that first production article, put it into the test furnace, and then demonstrate that to the customer. That's their chance to come and see it firing for real, put the burner through its paces, check the emissions, check the operation, make sure it does everything they need, and then the completion of that phase, we would then be released for the fabrication order. So in this case, this was a 30 burner order. We've manufactured one for the test. We'd be released and manufactured the other 29 and of course refurbish the one we use for testing. And that last phase I know we've referred to in the past as kind of the equipment order. The bulk of the equipment order. Yes. And that's the. In terms of finance and revenue, that's the bulk of the project for us. The initial engineering phases really are dialing that design in. Of course, the manufacturing is the large part, the large revenue driver. And on that equipment manufacturer, what are the terms we tend to get? Is it 50% up front of that? Yeah, I think a good, you know, we often get stage payments. They can vary. A good approximation is 50% up front at the point of release. You want to. Obviously our process burns are propagated by Zeeka. They have to go out and buy materials and then they start working on those and then we get the other 50% of the payment for that part of the project. Typically when a product is created and ready to be collected from Zika. So it's okay. Brent Hines (Chief Financial Officer) So Brent, I'll turn to you. So then these projects are basically self Jim Deller (Chief Executive Officer) funding, is that right? Brent Hines (Chief Financial Officer) Yes, that's correct. Before we recognize revenue, we'll receive cash from the customer to augment the costs. Incur. Great, but we're not. But Certainly, just to emphasize the point, you mentioned that the what's key from my perspective is we're typically able to collect cash ahead of our expenditures on, on a project. So when we look especially at projects in the three plus million dollar range, we don't have to dig into our cash reserves to execute those projects. We get cash in from the customer ahead of our cash going out to actually execute the project. So they're essentially self funding through the project. Jim Deller (Chief Executive Officer) Okay, fantastic. Let's move then forward into the other large project you mentioned, the 36 burn order. And this one, as we mentioned in the last call, differs as well, differs in the 32 and differs in what we previously announced. Is that correct? Could you kind of describe what's going on with this? It is. I mean, from a technical perspective, with our burner technology, we really offer two different things to our customers. The first is the obvious. Our customers have to meet new aggressive emissions regulations. Our burner technology allows them to do this for a much lower cost than the incumbent technology that's buying a selective catalytic production. So for the emissions, we're a much more economical option for our clients to comply. Our burner technology gives us the ability to structure flames and shape them so that we can control the flames. Shape how they interact and how they transfer the heat to the client's heater. What that means in a real perspective is it gives us the ability to make heaters operate better, whether that's to reduce maintenance requirements or. Or in some cases to increase the throughput of a heater. On projects like that, we can actually offer our clients a very positive return on investment. So not just buying burners to meet emissions requirements, we're actually enabling them to either save downtime and through reduced maintenance, or to get more production through their heaters, that is make more money. What's exciting about this 36 burner, all going down to Texas, is while there is obviously an emissions limit on that job, the driver is actually increased performance of that client's heater. The configuration of the burners in this case again is different. If you think of this particular heater as being a series of square boxes pushed up against each other. Our burners are firing horizontally through opposing walls. So they're on the side walls of the heater firing in towards each other. So this is again is a. Another adaption of the burner technology to fit this need, just with the benefit that the objective is actually increased performance of the heater in addition to controlling the MOX emissions. So then is this getting us into, you know, larger market and. Or larger heaters or maybe is it larger heaters and. Or a larger market? How's that kind of working for our. There's some of both. Getting the heaters that use the flat flames. There are some processes with a lot of burners in that use a flat flame technology. For anyone looking up the process, you might look at a delayed Coke as one example. Refineries, there's lots of flat flame burners, typically in a delayed coker unit. So being able to put burners into heaters that we were not have been able to do before we completed the Small Business Innovation Research (SBIR) program with this Gen 2 technology, essentially expanded the addressable market for Clearsign. The other phenomenon that we've seen recently is there's been a lot more interest in Clearsign and we've got true engagement from the majors in the industry, right? The household names, the global refiners. These refineries have a much bigger throughput, essentially means their heaters are much bigger. They have a lot more burdens in them. So the orders we just talked about, the one going to California has 32 burners in it. The one we have going down to Texas has 36. The previous orders to clear sign have been 5 burners, 8 burners, and much Smaller heaters. So getting involved just in these bigger projects means there's a lot more revenue in these orders as they flow through the orders and we get to process them. Okay, so one of the events I'd like to bring up and talk about is, and we highlighted this on our last call, was the process burner demonstration at ZCO. And that was scheduled to happen on the 23rd. So can you give some discussion of how that event went? I know you can't name names, but perhaps you can describe the attendees. I can. And just, you know, for anyone not on the last call. Two of the major events for this year in the process Burner, as we identified was this launch and demonstration of our new Gen 2 process burner technology. And then the second is the startup of a major order that we shipped at the end of last year. Those burners are down on the client sites in the US Gulf coast waiting to be installed and startup is scheduled for October. So at the time of the last call, we were getting ready for the first of those two, which was this demonstration. So we can now talk about as a past event. It was really successful. The burner ran through all of its paces. The NOx was good. We ran from 100% natural gas to 100% hydrogen. Demonstrated that transitioning smoothly back to natural gas. We put the burner through its paces. We demonstrated some other criteria, showing safety in the op, some demonstration information sessions for the customers. The attendance was one of the major things for me, just looking at our traction in the industry. We had about 100% of the people that responded. Not quite 100%, but almost there. The people who responded, they would come, actually showed up. That's a really big deal. I believe we had 23 people in attendance on the day. Amongst those 23 were representatives from eight large refiners or natural energy companies, along with consultants. I think also what was really pleasing to that event, we have a collaborative partnership with Zeeco. They're a very important partner for us. They're a billion dollar plus company. They manufacture our vendors. That's where we did the demonstration. Dante Zeeco, the president and CEO of Zeeko, actually came down and gave a welcome and an introduction to Clearsign as a start of that demonstration to our customers. So showing their buy in and his interest in what we're doing and the technology that we're developing I think was very pleasing to us and a very powerful message to the clients in attendance. And then what sort of feedback have you received that post the event? So it's been Positive I think too. Right. So we actually had a chance to talk with customers that were there and also people they'd spoken to. We regularly attended. There's a, twice a year there's an American Petroleum Institute API conference where we review and update the refining equipment standards. That conference was the week after our demonstration. So we were there, I was there personally and while there we got to meet after the fact people who have been attending our demonstration and people who had talked to people who have been there at the demonstration. So we got a general feedback from the industry and that was very positive. So I'm quite confident that we hit the mark with this demonstration. I think it was a great success. And are these customers or others kind of discussing the regulatory environment right now? They are. I mean that was the reason that a lot of the refineries and consequent Keaton and the other attendees were there at the demonstration. Many of them we're talking to about projects that they have. They came to check out the technology. This was a great chance for them to see some technology they've not seen before and check that fault. So yes, they're very much looking at what they have to do, trying to work out their best plans to meet the regulatory compliance and the new regulations that are being formalized for Texas. And of course the already the refineries in California already know and they have plans in place to get their refineries to the state they need to be. And then one of the projects you did address or you mentioned then is that 26 burner order that was shipped back in December. Yes. And that's on schedule then to be installed coming up? So just clarification, the project was completed in September. It actually shipped early in January. Our conclusion was to just for details, those burners are down on site, they're due to be installed. Things change. But right now they're due to be installed in the middle of the year, we think in July. And the project's due to start up in October. And that's for a petrochemical company. We've always said. Now does that get us into kind of into chemicals, the chemical market? It does. It's actually the second chemical customer we have. The first was a mystery meter down also on the Gold coast of Texas. If I can, I think a bit of clarity is worthwhile as we look to the rather long term the big picture for Clearsign part of our future plan is to get into high temperature applications. And by that I mean ethylene furnaces, down fired reforms. That is a Very big potential market for Clearsign. Those are chemical processes. Also on the chemical plant we're often more refinery type heaters that are a stepping stone towards those high temperature applications. The heaters that we are starting up in October are refinery process type heaters, but they are in a chemical plant. And with the flat plane configurations we've talked about for the California project, we do see that as a very significant stepping stone towards getting into the high temperature work that we plan for the longer term growth. Matthew Sellinger (Investor Relations) Well, it's interesting you brought up Jim, the M1 installation in a chemical plant. And that was about a year ago and that was through Tulsa midstream. Jim Deller (Chief Executive Officer) Tulsa used midstream. Yes. And then we just announced today another M1 order from them. Is that correct? That's correct, yes. And they were the first adopter of the M1 series product? That is correct. In fact, that heater down on the US Gold coast was the very first M1 that we shipped. Matthew Sellinger (Investor Relations) Great. It's nice to see them come back, let's say a year later. So how are you feeling about the M Series products in general? Jim Deller (Chief Executive Officer) I'm feeling very good. I know there's not been a lot of orders coming in. We've talked about it frequently. But I've been worried if there wasn't the interest and inquiries. But we have had a lot of interest, a lot of inquiries. In fact more even coming in this week. So the right. We have an M1. We have a M25 started up that's down in Midland. We have an M1 already out and shipped waiting to be installed. We have another M25 that's out and shipped waiting to be installed. There are a lot of M1 quotes and M25 quotes and they continue to come in. So I'm feeling very good about that market. I think it's just time as they start to come in obviously like more quicker but in terms of the interest, there's a lot of interest and I'm quite confident that market is there for these burners. Matthew Sellinger (Investor Relations) And you mentioned a couple of startups pending. Speaking of startups, there's also a flare project poised to start up very soon. Is that correct? Jim Deller (Chief Executive Officer) There is. To clarify the formal source testing will start. So we've already run this equipment but we couldn't do the formal source testing until a particular component outside of our scope was in and installed. I believe that's in and installed right now. And the latest we've heard is the source testing is scheduled for next month. So that will be the first source testing or New generation of Flares out in the California market. This has actually been a good product line for us. We've talked about systems projects where we've taken our burner technology and been able to expand that into a full system in the 750 to a million dollar range. This fund that's starting up is of that order. At the same time, we have our first full system project actually well on its way in fabrication right now. That's due to ship later on this year. But getting the source testing done and having that as a signed off formal recognition of the performance of our technology I think is going to be powerful in that flare market. Matthew Sellinger (Investor Relations) Yeah. And I think we've mentioned on previous call that I believe that last one is the fifth installation. So we're seeing repeat orders from a customer. And again, could you say that's a similar conversation you're having with our other customers and the other product lines as well too? I know we've mentioned even at some of the process burners that while we're working on, I believe it was a 32 burner order, that you're already even having conversations with that customer about potential future projects. Jim Deller (Chief Executive Officer) We do believe that this Flare client does have future needs. And then in that same industry there's other clients. These are going to the California market predominantly. We believe that there's other applications outside of this customer as well. Matthew Sellinger (Investor Relations) That's great. I want to ask you this one, Jim. Are you still confident in the first of all, how are you feeling about the status of Clearsign business? And I'll maybe give a follow up. And then are you still confident in the proposal pipeline that we discussed in previous calls? Jim Deller (Chief Executive Officer) To be honest, Steve, the answer. The second is also the answer to the first. I appreciate the orders have been fairly slow over the last few months. The inquiries and the customer engagements have not. We continue to have inquiries for process burners. We've got a lot coming in for midstream. We continue to be active players with the recent M1 with the flare startup next week with the success of the process burden demonstration just a couple of weeks ago, when I'm looking at the big picture, I do think our revenues are going to be lumpy. Our order intake has been lumpy. But saying that we do have the 36 burner order, we've got the 32 burner order. Those orders are in house and being processed at this time. There is a substantial backlog inquiries for process burners. We know a lot of those customers are also looking to the installation down on the US Gulf coast startup in October. So while we have a few orders right now, I think we're going to see a significant pickup after that project is up and running. And clients that are talking to us right now but have not engaged will see that as a vote of confidence once that has started up and that's aligned with the conversation we've actually had with them. Matthew Sellinger (Investor Relations) Fantastic. So with that, Jim, is there any sort of kind of last comments or any items you'd like to bring up before we bring on questions? Jim Deller (Chief Executive Officer) There is one and this is more general, but just we talk about the highlights on these calls, we talk about the purchase orders come in and the for other big events. I've talked to a lot of sales activities, getting ready for the demonstration, a lot of customer events. There's a lot of engineering, there's a lot of work going on within Clearsign, a lot within the finance and in the function, just keeping the business running. We do keep our headcount down. So there's not a lot of us here at Clearsign. And I just want to publicly take this chance just to extend my time. Thanks and appreciation to the staff here at Clearsign for everything they do. They truly believe in Clearsign and I really appreciate their efforts. I'd like to say that public, I think that's necessary and appropriate. Matthew Sellinger (Investor Relations) Fantastic. So with that, we will take the time then to open up for questions and also review and read off some questions that we were sent in ahead of time. So with that operator, certainly everyone at OPERATOR this time will be conducting a question and answer session. If you have any questions or comments, please press Star one on your phone at this time. We do ask that while posing your question, please pick up your handset if you're listening on speakerphone to provide optimum sound quality. And once again, if you have any questions or comments, please press Star one on your phone. Please hold while we poll for questions. Thank you. There are no questions in the queue at this time. Apologies. Your first question is coming from Amit Dial from HC Wainwright. Your line is live. Amit Dial Good afternoon, guys. Thanks for taking my question. Matt went through pretty much a lot of the things I had, you know, was going to bring up. But just one clarification, Jim. It looks like you have 5 or 6 project starts between 1Q and 2Q. Are some of these at least underway already at this point? I am sorry, could you repeat that question, please? I was saying it seems that you may have like 5 or 6 project starts between 1Q and 2Q. Are these underway at this point or some of These are at least underway for you. Jim Deller (Chief Executive Officer) They are. We're, we're actually working, I think the big, the, the big startups for us at this time, you know, we have a flare for the source testing that, you know, we're, we're planning that. The actual events when you start a unit up typically happen over just a few days. But there is a lot of obviously preparation going into that and planning. But the, that flare will be a significant event for us. The big burner startup down on the Gulf coast will be later on this year, that will be down in October, but we will be supporting the installation that's scheduled to occur in July. So, you know, just that because of what that project is and how large is that will be very significant for us. The M Series startups we, we do help with, we are getting to the point with our repeat customers where they are getting quite familiar with those products. So whilst we give them technical support, they do not always require us to be out on the job site. So we will wait to hear from them. You know, we have other work in progress. We have a very large flare order in production also. So we've got the one starting up next one month. We also have the second large one that's due to complete fabrication later on in Q3 and be out on the job site. So we're expecting that startup later on this year as well. So those are. Sorry, just talking through those. Just the startups are significant for us, but most of these customers, you know, if you think of the Flare we actually have in our proposal pipeline, we have additional quotes out to those customers. The startup we're expecting next month and the source testing we believe is going to be a, you know, a last check mark for them before they look at their futures. We have one other quote. We believe they have additional ones permitted waiting to be moved on as well. So we do see a very big significance in these startups, not just for completing those individual projects, but for what Amit Dial it means for our future orders and growth. Thank you. That's all I have. OPERATOR Thank you. Your next question is coming from Peter Gastrich from Water Tower Research. Your line is live. And once again, Peter, your line is live. And Peter, please double check your line to ensure you're not muted on your end. There are no further questions in the queue at this time. Matthew Sellinger (Investor Relations) Great operator, I can read a couple. We've got one actually that come at. That's coming from New Zealand. The question is there's been some announced reductions in EPA regulations across a wide range of Areas, Jim, do you view that negatively for adoption going forward? Jim Deller (Chief Executive Officer) So for Clearsign, we, I mean if you're into the reduction as in the easing of the regulations. For clearsign, the rather CO2 emission regulations do not really affect us. They, they have an impact on hydrogen consumptions of fuel. The Clearsign technology is focused on NOx emissions and those have continued to be pushed. They're largely regulated by the states, driven in the US by the EPA and ground level ozone. I think from what we've seen generally around the world, the emissions continue to be tightened. Everyone values clean air and as population grows and we, while our businesses are predominantly in the United States at this time, we have one installation in Europe. We are very much looking at the wider global market in our future plans throughout our relationship with Zeeco. ZCO is a global company with support and manufacturing around the world. So through them we definitely have the ability to survey a global market. And we actually benefited from that ZCO relationship when we service the one installation we have out in Europe. So that is a proven model for us. So yes, we do watch the global market. The regulations do change, as do the types of equipment that the clients use. But I generally see the tightening of emissions out in the Far east and in Europe as a very positive sign for Glazeline. Matthew Sellinger (Investor Relations) There's another question, kind of simple one, Jim. What does an average M series burner sell for? Jim Deller (Chief Executive Officer) That's a great question. So we've given like general guidance of an average burner price of $100,000. To keep things simple and to allow easy math that I think that number holds for the M series. But it, as you asked the question, there's obviously a variation. The M1 is the low emissions burner. That's our high technology and it does sell for a premium price. And there's actually a bit more engineering and manufacturing that goes into that burner. The common sizes of that burner range from somewhere in the region of 80,000 The M25 is a detuned version with less engineering, less IP to leverage. Those will sell for a lower price point. Again, the common size is ranging from probably 50,000 up to some of the region, 150 to 200 for the common sizes. So I think the $100,000 average is good. One other thing to consider with the M series while we're talking about those is these are standard burners. So unlike the process burners that go through a lot of engineering and have to get dialed in in the test furnace and the very Long duration of the orders. The M series are a standard burner configuration and what we're finding is that also amongst those size ranges there are common sizes. What that means is once we have built a say, if you take this recent order, as we build this one and one for this application for total Zahidas midstream, as we have further applications for that same burner, we already have the drawings and the engineering done. It's just a case of manufacturing those same burners. So that enables us to have a very high degree of efficiency and really focus on the profitability for Clearsign. So this is a. Matthew Sellinger (Investor Relations) We can talk about the revenue and the sales price, but when we look at the profitability of what this means for Clearsign, I really like the M series burners. Jim Deller (Chief Executive Officer) So great operator. I have no more questions coming in. I'll turn it back to you. OPERATOR Certainly. And once again everyone, if you have any questions or comments, please press Star then 1 on your phone. Your next question is coming from Peter Guestrick from Washington Water Tower Research. Your line is live. Peter Guestrick Thank you very much. Apologies. Before there I had muted my line, but congratulations on the results. It's great to see the momentum in the orders this month. Also appreciate the comprehensive presentation and you have answered a few of the questions that I've had. So I really appreciate that. I just want to ask a kind of industry wide sort of question. You talk a lot about the comparisons versus the incumbent technologies and that the advantage there is very clear. I'd just be curious if you could share any thoughts about how you would describe the landscape for any competing new technologies, if any, that are out there. Thank you. Jim Deller (Chief Executive Officer) Thank you Peter. Thank you for your questions and comments. I mean, I definitely see the incumbent serial production technology as the main competition for Clearsign. I think we have a much more efficient product and it's certainly much more economical for the customer. So very simply, when we look at the market, our objective is to displace SCRs going forwards. There's obviously other burner manufacturers trying to come up with products. We don't see a lot from others. There's obviously we see advertising and marketing, but at this time I do believe that Clearsign very much has the dominant share and the main name recognition in the SCR level knocks burner market within the industry. For somebody new starting up with a burner technology, you know, there are some significant barriers. One, you have to have people expert in the industry. It is a very specialized field of engineering, but beyond that the customers have certain needs. One is to demonstrate burners in a full scale furnace. They have very specific manufacturing needs. Clearsign has overcome that barrier through our collaborative arrangement with zco. But for somebody else without those connections, I think just for that, getting into this market would be very difficult. OPERATOR Thank you. That concludes our Q and A session. I'll now hand the conference back to Jim Deller, Chief Executive Officer, for closing remarks. Please go ahead. Jim Deller (Chief Executive Officer) Thank you, operator. Thank you, everyone for your interest in Clearsign and taking the time to join our call today. I do thank you also for the questions that you've sent in and the questions that you've asked live. Here it is. It's always good to get some feedback. We look forward to updating you regarding our developments and speaking with you on our next call. In the meantime, you know, we do update LinkedIn. We do send, you know, less formal messages out that way. So please keep checking for developments on our website and please follow us on LinkedIn. Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company's SEC filings and official press releases. Corporate participants' and analysts' statements reflect their views as of the date of this call and are subject to change without notice.