ClearSign Technologies Corporation

Q3 2021 Earnings Conference Call


spk_0: when a clear sign technologies call will begin shortly so please continue to hold again the clear sign technologies call will begin shortly a please continue to hold the now and the day and welcome to the clear fine technologies third quarter two thousand and twenty one conference call
spk_1: all participants will be and listen only mode did you need assistance please signal a conference specialist by pressing the starkey followed by zero after today's presentation they will be an opportunity to ask questions to ask a question you may press star than one on your touchstone phone to withdraw your question please press star then to please note if event is being recorded i would now like to turn the conference over to matthew salinger of from i our group please go ahead good afternoon think you operator welcome everyone to the crew for technologies corp third quarter twenty twenty one result conference call glenn is called it's called the company will make forward looking statements any stimulus not a steam it is talk of fact is a forward looking statements if we could do more for the company's projections expectations plans belief and prospects these demons or be fun judge with an analysis of the deal with carpet call inner or to numerous important risks and uncertainties that could cause actual results to differ materially from those described in the forward looking statements the risks and uncertainties associate with a forward looking statements made in this conference call include but are not limited to with or field testing and feel the and products will be successfully completed weather clears i will be successful in expanding the market for it's products and other risks that are describing clear side
spk_2: public periodic filings with the as he see including a discussion in the risk factor section of the toy twenty a report on form ten k except as required by law clear scientists and no responsibility to update you for looking steam is to flex future events or actual outcomes and is not intend to do so
spk_3: so on the called me to the arjun dollar person's president and chief executive officer and bread heinz present vice president funded and controller so this point i would like to turn the call over to feel gym della gym please go ahead argument matthew on thank you everyone for joining us today for a third quarter cold before we get into the main body of the cold they i want to initially introduce you to a new leader that finance team and principal finance and accounting officer brent times
spk_4: read has been with clears i now for just one month but has already made great progress taking control of our county function
spk_3: brent joined play as i most recently from innovation controls inc a stand alone subsidiary of helios technologies where he served as vice president of finance focused on global sales manufacturing and application engineering operations working directly with original it equipment manufacturers his responsibilities there including consolidation of reporting a for legal entities thirty one hundred and twenty million in revenue six hundred million dollars in assets and seventy million dollars in that working capital prior to joining innovation controls work was done anastasiades llc a professional advisory firm or public and private companies were established risk based on programs to determine adequacy and effectiveness of internal controls and devised audit report for executive management and only committees additionally mister hyde served as comply to enlist up a good use company mr heinz and his badge that the science and accounting firm obama state university and is a certified public accountant but although said be a very great would i have found brent and welcome bred to the team his expertise and experience aligned specifically with a high as brought you object is for a finance function
spk_4: in the short time we have been working together i have enjoyed his energy and enthusiasm
spk_5: and look forward to building ugly as on team and players on business with him
spk_1: so for the first time i went out turned the cold over to brent to cover the financial overview rent
spk_5: like you jim i'm excited to be here that i'm also excited to be a part of the clear sign team bought my time here had been sure i see the potential for clear sign and technology offerings we bring you the table
spk_1: i look forward to putting my passion and my hard work in of his business to make it grow and prosper
spk_5: my initial focus has been to gain a better understanding of the business so i can develop smart scale with solutions to strengthen the financial reporting systems
spk_1: the without i'd like to give an overview of the financials for the third quarter
spk_5: the company recognize that hundred ninety thousand dollars of revenue during the three months ended september thirtieth twenty twenty one this is clearly an improvement compared to the prior quarter when we reported zero revenues for june thirtieth
spk_1: forty four percent or eighty two thousand dollars of revenues were generated from the completion and delivery of a multi burner product sixty four percent or one hundred eight thousand dollars of revenue is related to prior period projects for which we are now able to recognize the revenue
spk_5: now it's child attention to expenses clear sign reported two hundred and eighteen thousand dollars decrease in costs of goods sold for three months ended september thirtieth compared to prior quarter june thirtieth twenty twenty one clear sign reporting eight two hundred and thirty two thousand dollar increase of operating expenses for the three months ended september thirtieth compared to the park or june thirtieth twenty twenty one this increases larger largely attributable to non cash impairment charge of approximately two hundred thousand dollars of pending patton assets this impairment wasn't a result of aligning up try and ongoing pat investment with a core technology
spk_1: this is a continuing initiative to minimize patents spending along with our overall cost where possible while still of supporting our most important patents
spk_5: now let's look at our cash position
spk_1: were signed consent one point eight million in cash for the three months ended september thirty at twenty twenty one with an imbalance in approximately eight point eight million while it's quarter's consumption is higher than typical it was for the purpose of demonstrating their products which general touch on later on in his call
spk_6: clears time did not sell any shares with through the a team facility during this quarter and therefore are outstanding shares had minimal change in the quarter with approximately thirty one point five million shares outstanding
spk_3: we have confidence in our financial position and balance sheet and with a quarter and imbalances we have sufficient working capital of able to carry as well and between twenty two and that is without income from or is partly and house or projected from ourselves bottle and now like turn the called back to gym geller for a business update gem like event before proceeding or they wanted the knowledge or extended finance team this past quarter as the challenges that began with the untimely death about pricey a home by a bike early this year with rapid call action at tank he was completed and wild seamlessly and i'm very encouraged by the processes and procedures that the team has put in place to enable this for this i want to thank and acknowledge our hard working temporary staff in seattle and brent for diving in and taking ownership from his very recent they one ellis a day to day i will start off with an overview of progress and that process burn a business where we have both significant equipment startups and new orders and increasingly positive upfront engagement from customers oh their mood for on to a boil a business where the validated our products for both find you boiler and bought to bought a businesses and abuse as a very pleasing product launch activities finally after some more gentle comments i'll open up the call for and eight ten turning our attention to process banners we issued a press release last week to announced that we have been awarded an order for supply of ultimately sixteen banners to be installed in he does that is a burn as each for the midwest refinery of a fortune five hundred major national refiner as with many orders this is being released in stages this first stage for engineering developing a computer model of our burn as operating in the destination heater building the first burner and proven the performance a full scale test furnace the second phase is anticipated to be for the additional seven ben is required to complete the first heater and the third for the final a bonus for the second it there are few important aspects of this new order to note firstly one of the key drivers for the project other than the desire to reduce emissions by a customer is at this project is being undertaken to enable the process throughput of these heaters to be increased as they providing a very tangible and significant return on investment for a customer secondly as a part of their decision making they engage with the owners of i previously stored operating equipment for feedback as i'm sure some investors have noticed as is currently planned this is the largest product to date
spk_7: in the history of clear sign encompassing to large and very important it is why total of sixteen ben is demonstrating again at we have products and amazed by them to the mainstream industry and ultimately that we are increasingly getting traction
spk_3: we are also in a process of starting out that better project in heater of a european refinery a one of the global seed major refiners this is significant for a number of reasons obviously it is always reassuring when equipment finally starts up as well we ran a horse scale demonstration of the eco of the technology before shipped from the usa they're always factors outside of our control that committee really impact the success of project as we have seen earlier this year of course assuming isis has will start up his project will provide a good reference for us both in that we understand that this installation is not only meeting the needs of our customer but was also selected to enable to the owner to assess our technology for use in additional heaters for this company being a major global finer with substantial refining capacity in california we consider this a big step forward for us additionally
spk_4: a will be our first operation equipment europe i will generally provide another validation point for us in the industry at large
spk_3: ultimately by providing on efficient solution for act as to was needs and validating our capabilities we will consider this a win for the customer for the industry of course for place on the that end i want to an update on the feedback we are getting from the industry and a little taller relates to developing opportunity pipeline as you would expect from a to projects discussed earlier and increasing positive operating history of my multi burn infrastructure project in california i do believe we continue to gain credibility and we are therefore being said considered for larger a more mainstream projects
spk_8: i do not consider the orders described above to be outliers but in for transparency i will remind you that it is a very methodical industry with many functions within our clients organizations and need to become a lines to progress projects especially when the purchase is not routine
spk_3: so while i'm optimistic i do not want to be overly so or misleading a will not pretends to be able to give details and dates on the snow feature to note is that we are receiving inquiries not only from and use a customers the refiners but also from engineering companies who essentially actors packages or intermediaries between us and refine his and who are themselves seek to provide the most appealing project proposals to their respect customers is also worth noting the all the aforementioned projects have run through zico who continue to be a fantastic bomber
spk_9: they are also engaged to as we pursue the opportunities in a pipeline
spk_3: i will now move on to boil of and is starting to find your product line
spk_4: some of you may have seen ellington post regarding the demonstration and product launch of a five hundred horsepower sub two point five ppm five gb clear sign call boiler benefit the place upon the california bought facility and by say it california
spk_3: a couple of weeks ago this followed a similar event for the small size but one hundred and twenty five horsepower as i am product line the reason we chose the sizes
spk_10: is of a new emissions regulations in the very large some game valley appalachian district require nox emissions below two point five ppm or boilers rated at five hundred horsepower and above
spk_3: over the past year we have developed i bought a ban has to be a single piece banner and also to replace the the early a perforated rom it tile with a lightweight and highly efficient metal flame stabilizing device enabling the easy installation and extreme performance required to meet this new threshold but anyone from this field this is achieved without any scr ammonia or you via or external thing astros a collision it is not just an aspiration a demonstration be conducted without partly california boiler was a a production burner operating in a typical commercial boiler in fact it was one of the california or the rent fleets and that boiler is to be deployed back out on the customer science every complete a formal third party recording of the been aboard a performance and emissions known as a source test for some mental to the aforementioned san joaquin valley abolition control distinct while the importance of this well attended demo is self evident i also want to bring this up in part to say thank you to california boiler for they're all in support of our technology but also the emphasize the very important factory the day the being that that being a substantial investment in materials and man hours and the commitment made by california boiler an employee owned company that knows the boiler business in california as well as anyone they have made that investment based on their hands on knowledge of the capabilities of the clear on coal burners technology that we have developed and further because they also believe our technology combined with their sales installation and save his expertise of i i'm offering that is both very timely and unique the positions to serve is very low emissions requiring boiler better market
spk_11: those i have seen our updates or know the a demonstration went very well
spk_3: we ran over two days and receive a lot of interest but i'm attendees and person including representation from a local a regulatory authority
spk_4: and follow up inquiries from people he did not attend
spk_3: importantly the new regulations require plans to be in place shortly after the end of the first quarter next year an installation roughly a year after that to give them on the edge of reference indication of the customer interest we have received approximately fifty inquiries for retrofitting burners into existing boilers of adding burn as in new boilers and most of these arrived in in the few weeks since or five hundred horsepower demonstration this also worth noting as some of these customers operate multiple sides each with a series of boilers we have followed a similar technology development path with a larger wants to boil a banner
spk_4: in our last cause we mentioned that we were fabricating and you want to boil a for testing and a boiler made available to us to our relationship was eco
spk_3: at testing is complete and i am very happy to announce that the very large order to boil then ran with emissions performance closely aligned the fired you ben arrange we have sense also duplicated this been in china and i'm making arrangements to demonstrate that banner and get a certified for sale there arrangements and negotiations to enable this or in progress but did not have any be further to announce at this time all a domestic front we do have custom interest in place i called banners or bought to boilers in addition to fight you boilers so out a big opportunity is in china it is possible that affair sales and installations for watched you boil urbana may be in the united states especially considering the if x of coping nineteen on business and travel to and within china one of the attribute to note is the by maintaining a consistent designed for the clear sign call boil a banner range from one hundred and twenty five horsepower all the way up to two thousand five hundred horsepower and achieving uniform performance to out that range we are very confident in our ability to scale the been designed to the intermediate sizes particularly as a five hundred horsepower demonstration burner that was consistent with the same design philosophy ram so well in the by side a demonstration before moving on to that including section of this update i want to refer back to the operating costs numbers but bread top three and also presented have recently filed thank you as we have discussed here as evidenced in a recent order last week and ongoing him activities and the showed impose them updates on our website we have complete his nephew updates todd book a bennett analogies and conducted full press product line moans activities in california to meet what we see as a significant sales window friday by the schedule of the major you ever get asians in that state to be effective he's had to be done with for scale products operating in as the enables that customers to appreciate that what we offer are good and reliable solutions for them we have been consistently focused on developing products that not only function well that are sufficient and practical for customers to use for customers to have confidence that we have been successful we believe these launched demonstrations needed before size and this extent possible in a set up that the customers recognize as representing their own to this if eight we have developed a process banners and a multi a configuration and a full scale industrial test venice we have built unproven a full scale wants to boil urbana in a test boiler and have a deep the water to boil them ready for formal installation certification in china and most recently we have completed the demonstration about five hundred horsepower fight you boil about in california that upon the california boiler we chose to do all these as soon as arrangements could be made i we can progress a commercial operations rather than delay in an effort to smooth out the costs these are not indicators of recurring activities or change in management focus but rather necessary cost find it an essential push to bring products to market we do continue to focus on costs and brent that financial helm we will continue to do so
spk_4: before recapping the key updates on the past three months i once elaborate a little on acid like business philosophy and why we believe this continues to be the right model for clear sign this does not mean a small organization
spk_3: as we very much because the that upon as and collaborators to be part of place on
spk_4: and it does allow some leverage a key ip i'm very talented employees to we believed to live and you a much needed products and technology to a national and international industrial and commercial customer base while minimizing our ongoing capital needs
spk_3: it also enables us to deliver a products through established whoa class manufacturing and customer service operations and in particular allowing us to partner with such well established and respective companies like zico and california boiler and these past few months the strengths of these relationships has been very evident a partnership seek out as an able to process been a success in europe and the new order announced last week switching product lines and a further illustrate the point i want the spotlight california and engagement with california boiler barclays i'm abided the coal burner for that more demonstration california boy that basically bill a small plans for naval a rental boiler to run and filled out an optimized the fuel guess system at two teams would hand in hand to work out final details or what will be the better control configuration going forwards and ultimately raised the come on at fully operational sub two point five ppm knocks clear like or for the better technology to demonstrate what we jointly bring to market regarding timing this is right on the heels of the san joaquin valley finalizing the new a regulations and just ahead of the south coast air quality management district for lies in their plan on november the fifth which affects all of them of the many refineries and boilers in that region california bottle and now offer a sub two point five ppm knocks clear cycle than a solution which both they and clear on will sell and based on the feedback in a few weeks is a demonstration these we'd be very optimistic for a future the air emissions regulations are thirteen are primarily controlling emissions of knocks which is much to oxide or a no win a single oxygen and nitrogen dioxide and oh to the to auction atoms attached these are essentially the same molecule the can convert from one formed the other depending on the additions and the collective name knocks by the x represents one or two option atoms big part of the knocks molecule not a very toxic and environmentally damaging gaseous molecule in addition to crazy acid rain it break down the ozone layer and the presence of sunlight and i atmosphere and conversely generate ozone at ground level where it is toxic in regions by concentrations build up like los angeles it is also dangerous for our population with breathing difficulties like asthma and is an irritant to our eyes these other reasons these emissions have been an area of focus worldwide for so long and regulations i am place and being enforced and control of these emissions continue to be increasingly restricted to buy the help safe and healthy environment or sold worldwide
spk_12: before turning this call over to queue and eighth i want to give a quick recap of the key elements of our past three months
spk_3: we have our first process been restored and in the process of starting up in there refinery have a major global refine it is also our first is based in europe and the first validation product of this refiner with substantial refining capacity in california we have recently received the initial engineering order for a sixteen burner multi heater project for clear sign this is also as also significant because a key drivers this project is the oil i be expected that ever to increasing the process for that of the heaters based on us as activities we believe that improves who the potential is now being recognized as an additional attribute within the refine the industry as the this project as being within the mainstream are expected future business due to it's value talk customer and due to the number of ben is being considered
spk_4: a place on coal fired you better technology is operating and delivering sub two point five ppm knox
spk_3: is is being offered for sale in rent fit on you by the applications drop on the california boiler and of course sales by clear sign while they stop significant investment by bugged
spk_13: california boy that and clear sign that this is now completed and we believe was timed perfectly
spk_3: considering the schedule of new arabs regulations and california a clothesline call watched you bought the burner has been redesigned and is now configured as a continuation of applied you boil a benefit knowledge he does has been tested and proven to operate with results consistent with the fight you
spk_14: for the better sizes
spk_3: not only does this enable a much more repeatable product the sale it also validates that the technology functions over the entire range from small fogey bonus sizes of decides is a large wants to boilers
spk_0: we have a what is you boil about ready to install in china at i up and i in the process of negotiating arrangements for the demonstration and certification of that bernadette with that operator and he plays open up the line for q and eight they will now began the question and answer session
spk_15: after class simulate fast die than one on your touched her sound if you're using speaker phone please pick up the handset for pressing who work guy your question please press star then too our first question today comes from ahmet dial with h d wainwright thank you grab we would be a gym so just to begin with on the operating costs side
spk_16: i don't have been some changes to maybe how things have been reported
spk_17: but the only went up quite a bit ah this mask water
spk_18: could he use any color on you know what drove that and you know how we should think about some of these costs going from
spk_3: an item i met thanks for calling and hannah i appreciate the question was on and we touched on june during the cold there wasn't based significant events that contributed to the increase costs both his passport quarter battling the at corner before of these were predominantly of name only tied to the launching commercialization of our projects they included bed building the lodge or did you boil at the twin bernard to the one we tested in usa with no i do with all that in china china is ready for certification there and the county making arrangements for that to be installed and that process to go ahead
spk_4: i wasn't discussed the the launch activities we just conducted with california boiler because we've gotten a goal is always is to get these products to market and get sales romeo as quickly as quickly as possible
spk_3: and as when we get to that point we pushed ahead and truly wanted to do that in the most affected by possible as well of that does involve building full size equipment it does does evolves from expenses but we ready privatized doing this right oh they're doing it for the absolute minimal cost
spk_19: at the other elements as brain pointed out we as part olive
spk_3: routine cause control the activities we do focus on a patent portfolio and our ip spend and as our technologies are developing and becoming refined it's unnecessary process to make sure that we spend money where it needs to be spent but also that we and we focus on vacation that we are to doing that and where we have titans in progress that are not aligned truly with the products that would break into market we never taken great efforts to make sure that we and are very efficient with are spending so in all these
spk_15: not lead expenses were necessary but we also believe that they are very isolated to up or to the to these two causes
spk_20: we've not change the focus of ahmed brand him like really like about brand is he he's really be my on target been watching a costs we
spk_15: no be expect to get back down to note normal numbers right quickly okay and this effect on it and then with respect to the sixteen process magnus
spk_21: that you received or to school
spk_22: i'm how big
spk_23: in terms of revenues about what's the total revenues associated with this order and
spk_3: you know you said you you're can eggs he could get through potentially three phases is that gonna take up to a year or less how should it including
spk_19: this project
spk_3: yeah of right on point at thank you i think the and i we have of the disclosure requirements black lines while i cannot give you the exact dollar forget but
spk_19: i think we can get a warm within the ballpark the
spk_3: yeah we previously disclosed the it is pumping a public information the details of the bottle project that we
spk_24: have taken on so on just the mound numbers that that was an order for the supply all five bonus
spk_3: there are quite similar in size to this new order that project included some engineering and is the nation just as this project include some engineering and testing that project was valued over six hundred thousand dollars
spk_25: and included five bonus
spk_3: this order
spk_26: is for the supply all sixteen banners to this job site
spk_3: so was the i would with them by simply extrapolation you can get to a very reasonable approximation of the value all of this reason order when all the bands are supplied you asked about the timing and the phases of the project some of a one either and i'm a break it would probably got some people who are new to learning about this industry
spk_27: it's it's very normal
spk_3: when refiners buy new equipment especially new burners to want to validate make sure
spk_4: that the emissions performance and the other operating requirements of the technology is going to meet what they need and refinery
spk_3: because my shot a refinery down and replace equipment they need to be very confident that is gonna start up services i absolute normally my past life lucky one of the regular global map major bennett supplies
spk_7: and it it will be normal was going forwards that on an anatomy done in two ways that of the first is quite common as we have here you get a the initial order for the engineering of a testing to be followed by
spk_3: an order for the approaching him build of the benz or you will get in order that has the engineering as the first phase with the hold in the contract and then the hold will get released ones that line is confident that the ad equipment meets all of their needs finally give it a better background the first phase we have right now is the first phase of that process the next phase of costume and everything goes through his the build up the additional seven bonus and now with the first one that will be used for that validation testing will be supplied to
spk_15: fit into the first heater that's supply is an installation is scheduled thai place in twenty twenty two and then following the start of all the heater the client will then turn around and released the order for the following a bonus
spk_28: which we are expecting to be installed in twenty twenty three
spk_15: so this is a a longer phase because the to he does it going to be in store sequentially rather than at the same time
spk_29: but one not gonna that as we're looking at the at the revenue of the company this is actually given us have a good baseline for the next two years and of course we expect to be layering other products or other projects on top of this as we bring more as into the company
spk_3: okay thank you for that you just one last one for me of with respect to you know deploying these burners of and maybe other projects etc that you might have been a pipeline are you managing through the supply chain issues that the rest of the markets are sort of ling with
spk_4: it sort of the evil
spk_3: constable manner it know it's it's a very good point we in all of the as we we do what very closely with our partners of a process bad as we know we talk almost daily with with zico
spk_22: we discussed with them now was had a busy developing the certainly the inquiries and proposals that we're looking to put out
spk_4: and the delivery schedule and also gone into the schedule of the test bonuses because all these forms test we need to schedule those through a in a in as he got as bonuses
spk_30: the when we when we bed these projects we do bed with a
spk_31: a delivery schedule for the product
spk_0: we are possibly watching the supply times for materials and that is being factored into the a delivery schedule full for the bonus from i have a recent experience we do see some delays especially in the supply of the stainless steel materials but those
spk_32: are being managed by managing expectations of customers
spk_3: that's a lie for not
spk_33: thank you
spk_32: benjamin
spk_3: as a reminder you'd like to ask a question played press star than one
spk_34: or next question comes from jeff i got private investor
spk_3: i jumped thank you for for take my question first one the clarification when you mentioned the tells opportunities with respect to that those know nothing with the san joaquin valley did you say fifteen one five or fifty five though arms sales presentation that you'd as part of and just that was a five zero and that was a donnelly just in the last few weeks since the demonstration the five hundred horsepower better that we did gotcha a gonna come in a capacity
spk_27: what what is the size of that market like yeah i mean i'm not that you might get that i get on a per cent of it but what's the potential size of the total number burners in that market
spk_14: to get the you know the up i'll give you the numbers one thing called the the most meaningful up because of the you can slice and dice markets different ways
spk_3: but the
spk_4: the two regions the south has a quality management district and the san joaquin valley evolution districts have recently both put out there new much tie the knot admission requirements
spk_3: of the south coast districts a for normally whether refineries are located and of course it with that large agricultural base in the end the san joaquin valley the boilers are often on located up there in in the more northern section either you're a push was related to the boil as a week
spk_35: what we say in a market the data we have indicates that there is about between five hundred thousand burners that all uncle low hanging fruit
spk_3: that are in regions where there are you extremely low not requirements that bit within the the sweet spot all the fight you boil is that we
spk_32: house of that are designed range which are are quite common
spk_27: and where the the line for such that the imposition of adding a very expensive se all along with the inconvenience old adding ammonia of not to mention the concerns they would have over bring an ammonia planned into a night a food production business
spk_36: no we really believe get a a very strong
spk_37: market advantage said that that region in the short term of it but are we ready say this as the obviously to the get this business kicked off of is of a it's stronghold of california boiler
spk_27: and so things seven up that market initially while while the other regions not have a does the country in the world
spk_3: catch up to speed
spk_36: like as the short answer questions were looking at five hundred five hundred to i'd at one thousand bends on them on that up with top rung of a of for us
spk_22: gotcha and you just said admission that down though the expense of an fc scr i've heard numbers thrown around what is the cost difference between neocon a clear sign burner vs using scr the installation and an ongoing costs of a you man said that and prior calls that i just once we are facing them
spk_4: get set in on and jeff is is he now the ratio is different from our refineries to
spk_38: two boil as the and a in a small boiler
spk_3: business
spk_39: i think a good guide and i'd buy don't have exact numbers the ongoing operating costs but the data we have been with me i'll be back on projects were as the aws and now i knew better solution
spk_3: have been quoted and the price of the str installation is in a region of two to three times the price all of retrofitting the boiler with a a place like whole bernadette produces the same result regarding nox emissions got it got it and yoyo the question on it the these regulations they're in california you see other states adopting similar regulation such as texas and other below refinery and and production areas some i know i don't want to pretend to be able to judge the outcome from the a regulators we know that they have a aim but you're negotiating roll with the resident companies blend areas but we do
spk_15: are we certainly see the text psychology
spk_32: i'm
spk_3: functioned
spk_40: a in texas there is a an ongoing process there
spk_3: typically the now the east coast high populated regions the east coast of united states we would anticipate well look to decrease their their missionary palms just based on all on the population density typically europe is also quite an environmentally conscious and we it is by down the road big a need death as we would encounter them but the other ready big market we know we need to include in the conversation is china
spk_13: why the the pollution in the highly polluted regions of northern china out there has got the point that the chinese government is or has i'm in
spk_3: could the continues to impose very strict requirements are reducing nox emissions or and on that's really driving what we see is a very big mark no opportunity for them china yeah that yeah with they if that's what the couple quick questions on the arab the multi burner order you mention that it was not so much for the knock the mission but the throughput did you get expound on that just a bit which mean that throughput certainly and just just five on we
spk_41: the clear sign him
spk_3: cold better technology by she provides a one a been extremely low not committing flames but because of the way that find be structured it's also white compact especially compared to the traditional and hi knox
spk_42: ultra low not bones are available
spk_19: on the market so the the comparative burn as the the non place i'm bad is because the way the structured the a feel of the airbase you mix is more slowly trading a very long and loose flame those flames all get to be quite large
spk_4: and they will brushed against push against the water heater ultimately requiring the operators to taliban is down so they'd have damaged equipment or over the process the result being that the basic cannot push as much product free the heat heater because they've had to turn the heat of put down
spk_32: with the place on core technology by being able to provide all of that he'd i'm on a times more back into the furnace and allowing the first one efficiently
spk_42: there's operators and go ahead and turn up he to back up to at least up to design right
spk_3: so the case of this
spk_4: of this projects were able to increase the three put on least in the
spk_3: and as baited out from the project is the we going to increase the throughput all of these heaters which on a on a the base of the in the to the refinery
spk_43: and in doing mess it
spk_32: affects the
spk_44: amount of product the family can a process which adjusting mouse will have a a direct and by significant a return on investment for the customer
spk_3: it is flaming benjamin i know that that's been mentioned in the past as at a part of the analysis as well as to why they want to use the cheaters versus other types of eaters
spk_4: it's it's part of the
spk_3: increased playbook calculation because you don't want rather heat away have flames impinging on the process tubes off without that will be the damage the tube only to a a damage or or can build up on needs on the to woo which modern leave a reduced three put and the the it'd be shut down for cleaning
spk_15: as eat for that with mom more frequently so the plane and pendulum month ends and telling the banners down already one of the same and bottom side issues as the other customers would turn the flames down to prevent flame five pages from occurring is fine if and when is so problematic
spk_45: so the the have a swing at an all time the pipes down with a smaller or now now with place on we can offer they may a bird of the produce a small aflame the first by so they no longer would to turn this went down
spk_3: gotcha gotcha
spk_42: and i've learned that it's early days to the data for the thought about barack obama as and that goes on those it may be alone optimism but this is this is really just an overall cost benefit me even if there were no nox emissions regulations
spk_3: at play in us yes
spk_4: especially ability to
spk_32: get the free book back to normal in an environment where
spk_8: are we have plans that want to reduce the most missions anyway is is base a win win situation for them it allows him to meet the i'm i'm an environmental obligations old
spk_0: or desires and produce a a return on investment on the same time
spk_46: god what one last question of the message that a nested that any update on the colors that i
spk_47: yes i'm not
spk_48: during the call appreciate that the other time is prices are great focused on on the on the by significant developments and needle moves the company
spk_5: the place on i is know it
spk_49: it's operational we have a demonstration unit up and fully functional if that we did give a a presentation at a typical conference just a couple of months ago on the bottom line to the expos in the industry
spk_5: so it's it's it's it's been promoted is it's of i'm watching but i don't have any really significant use beyond
spk_3: that your best why didn't include it in the cold they
spk_19: got it
spk_3: got that's all i i've i appreciate your family
spk_27: thank you questions again
spk_4: our next question comes from perry monte a private investor
spk_49: carry on line is improving you may be knew that
spk_4: if you hear me now
spk_50: my barry yes we can hear
spk_3: how do you again i thought i say that you the best thing you have nuclear and not the eight years of and foul it but
spk_4: anyway because i have is that exxon mobil they put a hold on not for the past go
spk_3: i wonder where that there right now is though communication with exxon mobil on not continue in need of project we're i'm very lucky to have it you been i appreciate the compliment thanks for that as well where activist abysmal you have been so the egg at the it's on project we we develop a and i think in the last call a he went through in detail the the performance that that burner delivered and the that she and with the with
spk_51: right i'm aware of that when very very high performance or yep yep yep so they are you at that point they informed us that the the he was it it takes time for they're planning to include the burn is in in the forthcoming shut man
spk_3: and then what the not have have have the time to do that we yeah we we we do continued to told vice on both with those you break a very big customer they talk about their that need going forwards
spk_49: we've you know we also in you have on on the comp conversations but we don't have any finality on life
spk_7: on that think the project that at the time
spk_49: but i would like when says oh well with my we talking about i know that the exxon project had a a lot of engagement of or the largely because we able to use the actual name a with currently in the process all starting about than a year which is for i'm a another equivalent global see the major so this will actually be outburst inflation in one of these global see that major companies this refiner at she has very significance of refining capacity here and us i am physically in california so just revlon the call you know we are restricted from using a customer names at times ran a million about one to downplay on midst of the by the significance of what be doing here and this not a party the in europe and what this really means that kazmi just as the and the it's on project was their enquiries does this was in europe is this companies assessment of technology they wanted his the into heated to assess it
spk_3: really where i am on the sunday we believe that i'll never clemens to comply with the new my cousins here in the us
spk_4: she's a gala gala bothers me
spk_0: ah
spk_52: over over netflix number months in the rub
spk_3: in the care how easy is it is to like that you insert your technology you're in new bern of like a week job to do that an hour of a sudden
spk_0: exxon mobil show away after we didn't

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