ClearSign Technologies Corporation

Good afternoon and welcome to the ClearSign Technologies Second Quarter 2024 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 ClearSign Technologies Corporation Second Quarter 2024 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 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 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 a discussion in the risk factor section of the 2023 annual report on Form 10-K for the period ended December 31, 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 on the call with me today are Jim Deller, ClearSign's Chief Executive Officer, and Brent Hines, ClearSign's Chief Financial Officer. So with that, at this point in the call, I would like to turn the call over to CFO Brent Hines. So 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 for the second quarter of 2024 are included in the quarterly report on Form 10-Q that was filed with the SEC last Wednesday on August 14. With that, I'd like to give an overview of the financials for the second quarter of 2024. For the second quarter of 2024, the company recognized approximately $45,000 in revenues compared to $150,000 for the same comparable period in 2023. This $105,000 decrease in revenues is driven by the natural lumpiness in our business as we continue to work to build our sales pipeline. While we don't provide guidance, Jim will comment later on our project pipeline with shipping and delivery timeframes, which can give an indication of future revenues. Looking at the income statement as a whole, our net loss for the second quarter in 2024 was approximately $1.9 million, which is an unfavorable increase of approximately $400,000 compared to the same period in 2023. This unfavorable -over-year change was predominantly due to a one-time non-cash event for $260,000 related to the vesting of restricted stock units in connection with the resignation of Mr. Hoffman from the board of directors. Now I'd like to shift focus from our income statement to the balance sheet, more specifically cash. Our net cash used in operations for the second quarter of 2024 was approximately $1.5 million compared to a generation of cash of approximately $50,000 for the same period in 2023. This unfavorable -over-year change was driven by the prior year's operations. As you may recall, during the second quarter of 2023, we collected a significant amount of cash from customers because we met billing milestones specified in our contracts. Shifting gears but continuing our focus on cash, I would also like to revisit an announcement on June 20, 2024, where we announced the full exercise of the Clear SPV participation right. Pursuant to a stock purchase agreement dated July 12, 2018, Clear SPV can participate in equity offerings to maintain its .99% ownership. The full exercise of the participation right added approximately $4.3 million in cash to the balance sheet. Couple this with the other recent equity offerings, we added approximately $13 million in cash to our balance sheet in the second quarter of 2024. So therefore, as of June 30, 2024, we reported a balance of approximately $16 million in cash and cash equivalents. From a financial perspective, we believe this working capital position instills greater confidence in our customers and suppliers when doing business with us.

And

with that, I'd

like to turn the call over to our CEO, Jim Diller. Jim?

Thank

you, Brent, for the financial overview.

As always, I'd like to thank everyone for joining us on the call today and for your interesting clear sign. Before I start on behalf of Clear Sign and the board, I want to thank our former chairman and board member, Rob Hoffman, for his years of service and for the continued financial support for Clear Sign provided by Clear SBB. Rob's support was instrumental in fostering this company from a research and development technology company to the viable commercial entity we are today. On a similar note, I'd like to welcome Todd Silver to the Clear Sign Board of Directors to fill Rob's vacancy as Clear SBB's designee. Todd brings over 30 years of leadership and financial experience in industries spanning financial services, technology, health care, and others. I think this is an exciting time for the company, and we look forward to working with Todd and the other board members. For the call today, I will review our product line starting with our process burners, then move to boiler burners, and then discuss the outlook for the rest of the year. So turning to our process burner line, in our last call, we discussed our multiple installations and follow-on orders from Kern Energy in California. At that time, our two largest heater retrofit projects had just been started up, and shortly afterwards, their emissions were verified by formal third-party measurements, known as source tests. These two heaters are -by-side, one with five burners and the other with eight. Since those two projects, we have also received follow-on orders for two additional heaters at Kern Energy. By previous orders, the initial purchase order is for engineering, and we anticipate receiving the orders for the follow-on, fabrication, and delivery to complete these retrofits after our engineering scope is complete. We continue to work with Kern Energy, obviously on our existing projects, but also in regards to discussions for the future. You may also have seen messaging from Kern Energy, particularly on LinkedIn, and also news articles referencing our work together from their perspective, emphasizing their priorities and values, and why our projects are important to Kern Energy. In their words, the supply of clear science technology helps the refinery continue to meet California's clean air goals and go beyond established emissions limits to further reduce their environmental footprint. Since then, and most recently, we have made further significant progress in our process of creating a clean air core burner product line. On July 17th, we announced that we had received the engineering order from engineering company and heater manufacturer, the Wolco USA, Inc., a boosted international heater company, for the first phase of a project to retrofit four process heaters with a total of 26 clear science core burners to be installed in the Gulf Coast facility of a Fortune 500 global chemical company. This order is important not just for the size and anticipated revenue associated with it, as important as that is, but also because the order is destined for a facility in Texas, which is part of the USA Gulf Coast region that we expect to ultimately be the largest market for our current product lines, and one that is now in the process of revising their clean air regulations. And because of the prominence of the engineering and heater manufacturer, Wolco, who are paramount in the selection of the equipment for this project, which ultimately resulted in the order being placed with clear science. For anyone looking to get insight into this industry, I encourage you to look up Wolco and particularly to visit their website. They work with a distinguished list of major refiners, midstream and chemical companies. They are based in Houston and part of Boosted International Heaters, or .I.H., which includes sister companies in Europe, Malaysia and Singapore. Wolco's business is predominantly the supply of heaters to refineries and petrochemical plant, or engineering and managing projects to upgrade them, including projects that require the change out of the furnace. We believe that having Wolco express their confidence in clear science technology, allowing them to have first-hand experience of it and exposure to what we do, makes this world position to be part of the solutions they offer and may provide for future clients. As you would expect, we are engaged in other early-stage conversations of this nature with them. If you participated in previous conference calls, we had mentioned that we were working with a major global chemical company to become approved vendor in their system. In fact, that was not a one-off, but one of these was a precursor to this order I have just described. Beyond this, we have a 20-burner order nearing completion. The final witness test was completed some time ago and these burners are now finishing fabrication by our partner ZECO and are scheduled to be shipped to our client in the Los Angeles area of California late in September. When up and running, there will be another two heaters, this time with 8 and 12 burners, which will provide a very significant reference for us, especially given their location in the large refining hub in the Los Angeles area. As previously noted, in accordance with the contract terms of this project, we will collect revenue upon shipment of the burners. So referring back to Brent's comments earlier, our revenue flow is based on the contractual milestones of our projects, so we anticipate that during the period in which we are establishing sales, our revenue flow may be lumpy. While we had significant sales news in the second quarter of 2024, shipping orders like this are what show up in our financial results. Regarding our crossover product line, meaning our horizontally fired burners for process heaters, on June 26th we announced the sale of our largest burner to date. The sale is meaningful for a couple of reasons. First, the firing rate of this burner at close to 90 million BTUs per hour is almost two times the size of our previous largest single burner sold. With this, we will have demonstrated products designed for our small, medium, and large size ranges in the field. Secondly, this burner was sold in collaboration with another heater manufacturer, Devco Process Heaters, or Devco, into the midstream market, which will introduce our solutions to new customers and expand our sales channels. In that regard, we have received requests to provide quotes for additional projects from Devco since the supply of this burner.

The

burner will be going into a heater in Central Texas Gas Processing Facility. We expect the burner to be delivered during the third quarter this year. This product line continues to gain traction. We believe this level of interest and customer requests for quotes indicate that there is a ready market for these burners. We have proposals that are progressing well, and I hope to have further news from this progression in the near future.

We also have an update

on our Hydrogen Burner technology. On the last call, we reported that this new technology had worked very well and had exceeded our expectations at this stage of the project. We also mentioned that we have shared some of those initial results on LinkedIn. While we still have some work to do before calling this product line complete, the hydrogen burner performance is sufficiently robust and comprehensive that we are able to offer this new product for sale and have already been doing so. One of the attributes of this new technology is that it will perform not only with 100% hydrogen as a fuel in the future, but also with the fuel gases currently in use today. And because of this, it is a product that our customers can install to meet their NOx and other operational requirements today, and at the same time have the technology in place and ready to operate as they introduce additional hydrogen to their fuel gas streams or convert to 100% hydrogen when that fuel source becomes available

in the future. Last week we hosted a Process Burner Technology

launch event at the facilities of ZECO. I have frequently emphasized that one of our priorities is to develop familiarity and confidence in our technology and its capabilities throughout our customers and other industry stakeholders. Obviously, the key part of this is developing our install base, but we can also progress this by holding events such as this, in which we demonstrated our technology operating in the ZECO test furnaces. As you would expect, this was accompanied by a series of presentations and discussions about our technology, how it is installed and operated, etc., including an introduction and presentation of our new hydrogen burns, which provided an opportunity for our customers to literally see it in person for the first time. This demonstration was well attended, including by senior technical representatives of two global super major refineries and an equivalent global chemicals company, multiple global engineering, procurement and construction, or EPC companies, multiple leading heater manufacturers and prominent engineering and consulting companies. The burner demonstration went seamlessly, and from what we can tell, the presentations were well received with active engagement and significant discussions throughout the day. I am also pleased to note that there was significant interest in the new 100% hydrogen capable burner. What was also particularly pleasing was the continuing act of dialogue, and in particular with our customers raising their needs and highlighting how our technology can help them solve their respective challenges and the value of these solutions for them, which is very helpful as we prioritize our

product development initiatives. There have been some developments in

clean air regulations in both Texas and Colorado that are relevant to both our process and boiler burner product lines. First, in Texas, there was a final certification by the United States EPA of Texas's reclassification of non-attainment status for compliance with the 2015 National Ambient Air Quality Standards for ozone, from moderate to serious, for both the Greater Houston and Greater Dallas regions. This triggers many actions by the Texas Commission on Environmental Quality, or TCEQ, most notably a revision of the state implementation plans, or SIPs, for both regions, and implementation of new reasonable available control technology, or RACT, rules for emission sources. We believe these developments are good news for the long-term clear-signed business. I will temper that development with a reminder that government and regulatory processes take time to be implemented, if at all, and the changes to the state implementation plans and RACT rules are not due until late next year, into early 2026. Although on the positive side, customers in the effective areas and the regulators issuing permits know that these changes are on the horizon, so we should expect not requirements for new permits and opportunities be pushed down ahead of the new regulations being formalized. Secondly, in Colorado, following the recent reclassification of federal ozone non-attainment zone severity for Denver and the North Front Range, Colorado Governor Polis sent a letter to the Executive Director of the Colorado Department of Public Health and Environment, dated March 16, 2024, directing action for ozone and NOx reductions. This letter directs these agencies to reduce NOx in the effective regions by 30% by the end of 2025 and by 50% by the end of 2030. Following this development, about two weeks ago, we met in person with the senior staff of both the Department of Public Health and Environment and the Energy and Carbon Management Commission to introduce clear sign technologies to understand their planning process and to identify how we could support their NOx reduction initiatives.

Now turning to boiler burners. The commissioning of

our large 1200 horsepower, 2.5 PPM NOx burner, branded ISERA NOx for a recycling plant in California is underway. This burner is installed and as you would expect with this being the first burner of this scale, there are some details to work through. However, we believe we are close to having these worked out and look forward to having this plant in full operation and the formal source test completed. When in service, we believe that this will be a prominent development in the industry and a great reference installation for us. We also have the first article of our new horizontally fired burner design being manufactured. If this burner performs as we expect it to and as shown in our computer modeling, it will provide extremely low NOx in short length heaters and boilers. Bear in mind, our current boiler burner technology is optimized for fire tube boilers in which the space for the flame is typically long and narrow. The first burner of this new design is for installation in a hot oil heater in Texas. The reason that I've included this in this section is that we anticipate that the biggest market for this new burner will be water tube boilers, a segment of the market that we have not been able to effectively pursue at this point. Our expectation is that we will be able to install this burner in the fourth quarter this year, although this may be contingent on the coordination of the installation with the client's operation schedule. We are pushing to arrange for this installation to be as early as we can because we already have several opportunities waiting for this new design to be demonstrated in service, both in terms of repeat orders from existing customers and from potential new clients and covering both hot oil midstream type process heater applications and

water tube boilers. Other upcoming events

related to our boiler burner line include an industry demonstration that will be held in Santa Ana, California next week. The investor-owned California utility companies fund energy efficiency research on available and near future products and technologies. One of these programs is called the Statewide Gas Emerging Technologies, or GET, program, which is administered by Southern California Gas Company through a contract awarded to ICF, a global consulting and digital services company. The GET program's objective is to source and screen technologies, gather necessary technical information and data on potential efficiency gains to identify key market barriers to the adoption of these technologies and develop strategies to overcome such barriers. Cleartime is pleased to have been selected to participate in this important program. We have completed a study that formally tested and quantified operating efficiency improvements that will basically translate into fuel savings of the clear-sign core boiler burner technology compared to a typical industry standard -low-nox burner. The test method was developed by independent third-party engineers and the testing was also overseen by independent third-party engineers, or contracted directly by the GET program. We are not able to give results today as the work and data is owned by the GET program and they have not released their report at this time. However, I can say that the results were pleasing both in terms of efficiency and the NOx emissions demonstrated. We plan to provide access to this report on our website when available and also provide notification that it is issued and a link on LinkedIn. The study results and a physical demonstration of the burner in operation will be presented at the industry demonstration next week. We are expecting approximately 70 attendees, including many from the various California air regulators, California refineries, both super major and local, national energy and infrastructure companies, engineering

companies, and national boiler operators. One final project update on our boiler

burner line. In February this year we announced an order, which is for the first of four burners to a California plant. That first burner is in production but the client schedule has moved out a little and that burner is now scheduled to ship at the end of the year and to be installed by the end of the first quarter of 2025. As usual, we will keep you informed as that project progresses and as we get dates for the remaining three burners for that project. And finally, regarding boiler burners, on the last call I mentioned that our China certification project has seen some delays. While some progress has been made, I did not have any significant updates regarding the project schedule at this time. In closing, it is worthwhile to look at what we are doing at a tactical level and also at a strategic or high level. The updates I have given here are mostly tactical, individual product updates, customer demonstrations, etc. At a strategic level, there are areas of focus that are consistent and it is useful to articulate these to provide a framework to understand what we are doing and to gauge progress. Our top line objective is to increase sales and profitability both in the near term but also increasingly in the future. To do this, we need to continue developing products that provide value to our customers and because our technology is new, we need to develop our reputation and familiarity in the market. In working towards this objective, we have discussed significant new orders, especially the process burner order for a chemical company in Texas, likely in the most significant United States market for us in the mid term, and also the engagement of a leading heating manufacturer and engineering firm who is actually our direct customer for this project and is now getting first-hand experience of our products and working with ClearSign. Under this general Seeding the Industry objective, we also have carried out a large-scale product demonstration in the ZECO facility for our process burners last week and we will be doing another demonstration for our FireTube boiler product line in California next week. We are also nurturing our relationship with Kern Energy as evidenced by press releases from both us and them regarding our installations there and we will continue to publish news and journalize goals related to our installations with Kern Energy throughout the remainder of this year. In support of our continued business growth, we are investing time and energy in bringing new products to market and developing new markets themselves. The new products that are most advanced are our new process burner capable of burning fuel gas ranging from the fuel gases in use today up to 100% hydrogen while maintaining the same market-leading MOX levels, enabling the burners to be installed now and our customers to be ready for new higher hydrogen fuels as those become available. We are seeing a lot of interest in this new burner as evidenced in the level of engagement during our demonstration last week and as mentioned, we are starting to provide sale proposals for this burner. The second new product line is the new horizontally fired burner. We are the first of this new technology currently in fabrication and plans to be installed in the hot oil heater in Texas. When successfully installed and commissioned, this burner is expected to open up the water tube boiler market for us in addition to the midstream heaters in the process burner market. We also already have interest in this burner just waiting on the demonstrated operation of this first article in Texas. We also maintain an ongoing portfolio of early stage development projects and are receiving multiple customer requests for new variations of our technology, some of which we continue to develop and some which will get dropped as we work through the standard technical, business, and marketing assessments of these different opportunities. In the same category of development for the future, we are also considering the development of our resources, such as the recent investment in computer modeling capabilities. We also engaged in developing market access to the future. I talked briefly about our engagement with the regulatory leadership in Colorado, which we will continue to work on. We are also in frequent contact with the California Air Resources Board, the body that oversees the air districts in California, and also members of the TCEQ in Texas. We would appreciate that to get all this done in addition to our ongoing normal business operations will take a lot of time and effort. We are conscious of the cost of running clear signed and we only add to our headcount when absolutely needed. I greatly appreciate all the hard work and dedication of our team. And with that, I'd like to open up the

call for questions. Please, operator.

Thank you. We will now begin the question and answer session. To ask a question, you may press star, then 1 on your touchtone phone. If you're using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star, then 2. At this time, we will pause momentarily to assemble our roster.

Your first question comes from the line of Ami Tael from HCWayne

Wright. Please go ahead.

Thank you for taking my questions. So Jim, I mean, it's good to see all the progress you guys are making and it's almost now getting hard to track, you know, all the sales and your pipeline. Could you maybe help us a little bit and give us a dollar sense of, you know, how much you have in hand as orders, you know, that you will be shipping out over the next few quarters and what is in the pipeline?

Yes, thank you, Amit. And thank you for your question.

I think to start, you know, I'll rephrase the general numbers we've given for everyone. Our products obviously cover boiler burners and process burners in varying size. But to keep things simple, a good estimate of the sales price or revenue per burner is $100,000 per item. So I can then talk to the number of burners both we have in our existing projects and then certainly talk a little bit about what we see in the future. So I think on the process burner line, the two big orders, I mentioned the 20 burners, which we expect to ship to California late in September. There's 20 burners there. We have the engineering order, which we fully expect to progress for the chemical facility down in Texas. That's 26 burners. There's 46 in total with just those two orders. There's two heaters that we've mentioned for a current energy. Obviously the engineering for those is just about complete. There are a handful of boiler burner and hot oil burner or hot oil heater burners in progress. We obviously have the four burner plan with one single client in California. So I think that's the majority of the standard burn orders. Obviously there's engineering and service and spare parts and other work that we do. But that's I think a good framework to assess the revenue to be recognized based on the work that we have to date. Going forward, I'm always conscious about a bird in the hand as opposed to what's out there. But we are seeing a lot of interest in the hot oil heater line and we're expecting that to progress. We have, I mentioned, ongoing relationship with Kern Energy and there's certainly interest there. I think some of the more exciting things for me as I look further out to the future are the ongoing conversations with companies like the WorldCo, the engineering company involved in the order we've just announced down in Texas. But also that we are getting drawn and invited to enter discussions at the feed stage of some very large projects. The feed stage is really the first financial and feasibility assessment that our customers go through when developing projects. These are typically going to be two years out, something in that time frame. Sometimes even more. But the important thing is that's how you load the pipeline. And that's where the growth and the long term growth the company comes from is by getting involved in these really big projects early. For me, the reason that's encouraging one is for that pipeline. But also it's an indication of the growing recognition and trust of clear science

technology out there in the market. Understood. Thank you.

Just to clarify, the hot oil heater opportunity is tied to the horizontal process of burner offering that you are developing?

That's correct. We've used several names and that we're actually using that as more of a generic name. There are a number of different processes, but it's the there's a number of horizontally fired heaters in the process industries and gas processing industries. Soil heaters, glycol heaters, there's a number of different processes. We've used the term hot oil heaters generally to describe those horizontally fired single burner

forced draft

burner

applications. Okay, got it.

You said you guys are probably getting a little stretched with all of the activity in terms of business development and deployments going on. Are you looking to add more people and how should we think about operating costs on a quarterly basis going forward?

Yeah. So we

know

you may have.

I don't may have seen. We currently have one. And I use it as an advertisement as well. We currently have one open job posting out. We are currently reviewing resumes for an engineer to both assist with work with our test furnace and installation work out in the field with our clients. That is the the only current open position we have. Obviously as more orders come in, we will monitor the load on that project management team and maybe even on that engineering team. Part of the reason also that we are focused on that engineering team is not only that we need to execute the orders that we have, but that I want to ensure that our senior engineers who are also very effective salespeople maintain the time in their schedule to focus on sales and those customer conversations to bring orders in and do not get consumed in order execution and engineering. Because of a low staffing level, you'd appreciate we have to have people in house and trained up so that they're effectively able to do that work. So we do keep our workforce to a low level. We also have to balance that to make sure that we have the right people to do the job and not take a foot off the gas and focus on the outreach and the sales activities that are so important to us. I think in terms of just looking at overhead costs, these positions are positions that we add as part of the growing business. So they're not I wouldn't classify them as a overhead style cost. They are very much a function

of the increasing workflow. Understood.

And just last one for me, you know, these demonstrations with Zico that you are doing for clients. What kind of responses are you getting from that and how is this helping sort of, you know, maybe improve your sales cycle? Just any color on how you're leveraging these demonstrations to get more visibility with customers.

Yes, absolutely. I mean, the whole purpose of doing these is to show what we can do to the industry to get people to see it in person and seeing is believing. Often, I mean, this demonstration last week was a big demonstration. It was three burners firing in a test furnace. That is not normal. Most tests are done with just a single furnace, a single burner. The things important that the people that came in made this trip dedicated especially for this purpose. They were not in town for the reasons they've flown across the country to be here with us. There was a lot of engagement. We had a full day of active conversations, including the firing demonstration that pursued in bigger through a dinner that evening. The other burners ran well. We got to show the hydrogen burner. There was a lot of conversation around the hydrogen burner and the hydrogen burner performance. It also, we had a lot of clear sign staff amongst the customers, as you would expect, and a lot of one on one conversations. And we picked up and got engaged in a lot of conversations with our customers where they were asking how could we help them with their problems? And I think we've picked up a lot of maybe not immediate opportunities, but I think a lot of initiatives that have a very good potential of turning into future opportunities from those conversations and just. Having that dialogue and ongoing conversations with your customers always keeps you at the front of their mind. And so while there's no specific opportunities, we're bidding immediately as a result of that conference. I'm very confident that we will get more engagement and opportunities as

a result of that demonstration. Thank you, Jim. That's all I have. Thank you,

Amin. Thank you. Once again, should you have a question, please start a fall by the one on your telephone keypad.

The operator, I'm going to go ahead and read. We've got a couple via

email. So I'm going to read the first question. You've increasingly highlighted third parties like heater manufacturers in your recent press releases about sales. Can you talk about how many of these relationships we may have

and how many of these may exist? That's a good question. I will answer that answer the

best I can. So it's probably good to just step back a little bit. Everyone explain. Right. So how how the heater manufacturers, the engineering companies fit into the industry. So you think of a typical client.

Now, let's pick one, you know,

the name of superman. Just say Chevron has a heater and if you want to buy a heater, they'll obviously go to a heater manufacturer and the heater manufacturer will then buy the heaters to put into that heater and supply as part of the package. Or if they own that heater and require work on the heater to change its purpose or to meet your emissions requirements, they would typically go to one of those heater manufacturers or heater engineering companies and outsource the work to them. And that company would then have a very prominent role in redesigning the heater and selecting equipment.

During

the

remarks a

few minutes ago, I talked to some extent about a Bawolko. Bawolko is a really good example of a very prominent heater manufacturer. They supply heaters, they do the engineering and they were very

influential

in the 26th Furnit order that we announced in that role. So yes, I do talk more about them a lot because effectively they act as a sales channel for us. And as we sell products and new heater companies get involved in a clear-side project, that's another heater company that's aware of what we do. And then can use Adburn as part of their solution that they are constantly trying to sell to their customers to get business for themselves. So I need to go back and look through details, but we're probably at a handful, half a dozen heater companies that we've worked with to date. That might be about one or two, but somewhere in that order. That's the easy part of the question. I think the question as to how many are out there is a lot more open-ended. There's probably

10

to 15 heater and heater engineering companies that are frequently engaged in the US market. But depending on how big the companies you include are and where they are, the number will actually be much more than that. And there are a lot of smaller, bespoke

engineering and heater companies as well. So that last part is going to be difficult to put a number to.

The

second question. In your press release today, you stated an event in California next week

to

unveil independent data. Can you give more color? Well, first of all, thank you for reading the

press release. So this project in some ways is similar to the demonstration we ran at ZEGO last week with some very significant differences. First of all, fundamentally for us, it's focused on our boiler burner technology rather than the process burner. We have been

part of an ongoing burner comparison

study that's been run by the California Get Program to look at technologies to reduce NOx emissions and to increase burner efficiency. Essentially, increasing efficiency is decarbonization. It's the savior of fuel, and that means less carbon. So that is really the focus of this program is how can you decarbonize the boilers and achieve and maintain these exceptionally low NOx numbers. The program was run by Get and funded by them. The engineers were paid by Get. It was hosted at a part of California Boilers site. The data is owned by Get. They will be releasing a report, we believe, sometime in early September. And please follow us on LinkedIn. We will put announcements of that out. We will host that, put that report out on our website. Also, the demonstration next week is the clear sign technology operating in a boiler. It's one of the concluding activities of this Get Program. They have managed this. They have been the ones primarily distributing the MIT list and maintain the list. We have, I think, last count today, we had up to 80 attendees registered for that. Some of them were the senior engine, global refinery engineers that came into our ZECO demonstration. Some of those are actually going out to California because they're also interested in the boiler burner technology. So we got to talk about

that at the same time. But this is a big deal.

And especially the results. I don't have the exact data to share today. But having a burner that aids decarbonization is shown to be more efficient and has this world leading NOx level for a burner is a

really big deal, in my opinion.

Thank

you.

There are no further questions at this time. I would like to turn the conference back over to ClearSign's CEO, Mr. Jim Deller, for any closing remarks.

Well, thank you, operator. And thank you, everyone, for your interest and taking the time to participate today. We look forward to updating you regarding our developments and speaking with you all on our next call.

This concludes today's call. Thank you for participating. You may all disconnect.