ClearSign Technologies Corporation

Good afternoon and welcome to the ClearSign Technologies first quarter 2025 conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the store key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press tar then the number one on your touchtone phone. To withdraw your question, please press tar then the number two. Please note this event is being recorded. I would now like to turn the conference over to Matthew Selizer of FirmIR Group. Please go ahead.

Good afternoon and thank you, Operator. Welcome, everyone, to the ClearSight Technologies Corporation first quarter 2025 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 can cause actual results to differ materially from those described in the forward-looking statements. The risks 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 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 filings with the SEC, including those discussed under the Risk Factors section of the Annual Report on Form 10-K, the period ended December 31, 2024. 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 at this point in the call, I would like to turn the call over to Brent Hines. So with that, Brent, please go ahead.

Thank you, Matthew, and thank you to everyone joining us here today. Before I begin, I'd like to know that our financial results on Form 10-Q was filed with the SEC on May 15th. And with that, I'd like to give an overview of the financials for the first quarter of 2025. For the first quarter of 2025, the company recognized approximately $400,000 in revenues, compared to $1.1 million for the same comparable period in 2024. The year-over-year decrease in revenues was driven in large part by a decrease in process burner shipments. Now, recall, last year we shipped multiple process burners to a California refinery, whereas this year's quarterly revenue consisted predominantly of spare parts orders. Now, it's like to look at the full income statement. Our net loss increased by approximately $1 million compared to the same quarter in 2024. This year of year increase was predominantly due to a decrease in our sales volume as compared to the same period last year and $581,000 in legal fees for two separate unrelated activities. One activity incurred $131,000 in legal fees that pertain to work performed in connection with a regulatory inquiry by the SEC into the trading of our securities back in the year 2020. For the second activity, we incurred legal costs of $450,000 during the first quarter of 2025 related to work performed for the board special committee in response to submissions of several stockholders for director nominations. Now for some background. During the first quarter of 2025, the company Board of Directors formed a special committee of all its independent directors for the purpose of responding to, managing, and otherwise addressing attempts by several stockholders to submit director nomination notices in connection with the company's 2025 annual median stockholders. We believe, based on recent information provided by the special committee, that this activity is near completion. Now I'd like to shift the focus to cash. Our net cash used in operations was relatively flat compared to the same period in 2024. For the first quarter of 2025, we used approximately 1.1 million in operating activities compared to approximately 1 million for the first quarter of 2024. We ended the first quarter of 2025 with approximately 12.8 million in cash and cash equivalents. Our outstanding share count as of March 31, 2025, was approximately $52.4 million. From an overall financial perspective, we believe our current working capital positions us well to scale our business, and we believe it also gives our customers and suppliers confidence to do business with us. And with that, I'd like to turn the call over to our CEO, Jim Deller. Jim?