ClearSign Technologies Corporation

Good day and welcome to the ClearSign Technologies second quarter 2023 conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touchtone phone. To withdraw your question, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to Matthew Selinger of Firm IR Group. Please go ahead.

Good afternoon, and thank you, Operator. Welcome, everyone, to the ClearSight Technologies Corporation second quarter of 2023 results conference 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 risks and uncertainties associated with the forward-looking statement made in this conference call include but are not limited to whether field testing and sales of ClearSign's products 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 public periodic filings with the SEC, including the discussion in the risk factors section of the 2022 annual report on Form 10-K and the quarterly report on Form 10-Q for the quarterly period ended June 30, 2023. 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, ClearSign's Chief Executive Officer, and Brent Hines, ClearSign's Chief Financial Officer. So at this point, I would like to turn the call over to CFO Brent Hines. Brent, please go ahead.

Thank you, Matthew. And thank you to everyone joining us here today. Before I begin, I'd like to note that our financial results on Form 10-Q were filed with the SEC on August 14th. Now I'd like to give an overview of the financials for the second quarter of 2023. The company recognized revenues of $150,000 during the three months ended June 30th, 2023, as compared to zero revenues for the same period in 2022. Revenues for the three months ended June 30th, 2023 were generated predominantly from our engineering feasibility study. For the six months into June 30, 2023, we recognized approximately $1 million in revenues, which is the highest reported revenues in our history for any given year or six-month period. These revenues were generated predominantly from our process burner product line. Now I'd like to switch the discussion from revenues to cash. Our net cash provided by operations for the three months into June 30th, 2023 was approximately $46,000. In the same three month period last year, we used approximately 1.8 million cash. This course operating cash activity was a milestone for the company. For the first time, we added cash to our balance sheet through operational activity. Now I must stress a cautionary note about this milestone. Most of this cash came from our customers for projects that have yet to fully complete. We structure our customer contracts to receive substantial portions of cash before completion and revenue recognition. All things being equal and no other changes, this milestone is a temporary occurrence driven by timing. However, we do not believe that this is an insignificant milestone that and that it is a meaningful marker of our progress. As of June 30th, 2023, we had approximately $8.5 million in cash and short-term investments. Now let's switch gears and shift to discussing our profit and loss. Our net loss for the three months into June 30th, 2023 was approximately $1.5 compared to approximately $1.6 million for the same period in 2022. This was a modest year over year improvement. We saw a modest year over year improvement in our net loss for the six months into June 30th, 2023. We reported an improvement of $222,000 when compared to the same period in 2022. It is important to note that both of these improvements in our net loss were driven by gross profit from sales of our products. In other words, we are not seeing notable shifts in our cost structure, but we are seeing the effects of notable shifts in sales. Now changing our focus to equity. As of June 30, 2023, we reported approximately 38.6 million shares of common stock outstanding. We have confidence in our financial position and balance sheet, and with our quarter ending balances, we have more than 12 months of runway in working capital, and that is without cash from any other sources. With that, I'd like to turn the call over to our CEO, Jim Deller.