ClearSign Technologies Corporation

And good afternoon, ladies and gentlemen, and thank you for your patience.

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Greetings.

Welcome to the ClearSign Technologies fourth quarter and full year 2025 corporate update call. At this time, all participants are in a listen-only mode. Question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note, this conference is being recorded. I will now turn the conference over to your host, Matthew Selinger, Investor Relations. You may begin.

Good afternoon, and thank you, operator. Welcome, everyone, to the ClearSign Technologies Corporation fourth quarter and full year 2025 corporate update call. During this conference call, the company will make forward-looking statements. Any statement that is not a statement of historical fact is a forward-looking statement. This includes remarks by 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 products will be successfully completed, whether ClearSign will be successful in expanding the market for its products, and the other risks that are described in ClearSign's filings with the SEC including those discussed under the Risk Factors section of the Annual Report on Form 10-K for the period ended December 31, 2025. Except as required by law, ClearSign assumes no responsibility to update these forward-looking statements to reflect future events or actual outcomes and does not intend to do so. So with me on the call today are Jim Deller, ClearSign's Chief Executive Officer, and Brent Hines, ClearSign's Chief Financial Officer. So with that, I am going to turn it over to Jim Dollar. Jim?

Thank you, Matthew. As always, I'd like to thank everyone for joining us on the call today and for your interest in ClearSign. Like our most recent calls, we will use a Q&A format for the session. Some of you are sending questions ahead of time, and we will assimilate those questions as we go through this call today. So for the call today, Matthew will lead a question and answer session. I will go through the different businesses units, much like our previous calls. Many of you may have seen this, but just a reminder, you can send in questions ahead of time to our best relations. That is Matthew Selinger at M-S-E-L-I-N-G-E-R at firmirgroup.com. So with that, Brent will go over a summary of the company financials for fourth quarter and full year 25. Brent?

Thank you, Joe. And thank you to everyone joining us here today. Before I begin, I'd like to note that our financial results on the Form 10-K were filed last week with the SEC. And with that, I'd like to give an overview of our financial results for 2025. For the fourth quarter of 2025, the company recognized approximately $3.7 million in revenues compared to approximately $590,000 for the same period in 2024. This year-over-year increase in revenues was predominantly driven by our 26th process burner order that will be installed at a petrochemical plant off the Gulf Coast of Texas. Now for the full year perspective. We recognized approximately $5.2 million in revenues compared to approximately $3.6 million for the same period in 2024. This 44% year-over-year increase in revenues was predominantly driven by our process burner products. It is important to note that during 2025, we did recognize revenues from our other offerings, specifically midstream burners, flares, spare parts, and engineering services like CFD studies. Now I'd like to turn our attention to the full-year income statement. Our year-end 2025 gross profit was approximately 27%, which is down approximately 4 percentage points from 31% compared to 2024. This year-over-year decrease in gross profit was driven by our warranty as well. In addition, our year-end 2025 net loss increased approximately $197,000 compared to the same period in 2024. This year-over-year increase was predominantly driven by non-recurring legal fees of approximately $746,000 in 2025. Now I'd like to shift the focus to cash. Our net cash used in operations for the full year 2025 was approximately $4.7 million compared to approximately $4.4 million for the same period in 2024. This year-over-year change was predominantly driven by our change in net loss discussed earlier. As of December 31, 2025, we had approximately $9.2 million in cash and cash equivalents, with approximately 5.3 million shares of common stock outstanding. We believe our overall working capital positions us to continue executing on our long-term growth plan to scale our revenue and profits beyond our break-even goal as we continue to build a technology company recognized for its innovative solutions. And with that, I'd like to turn the call over to Matt Seliger.

Thanks, Fred. Jim, thank you for joining me today. Jim, we've had a lot of new interest in the company lately, and I see some new attendees on the call today. So can we take a moment to give a high-level overview of what ClearSign does and then maybe move into how we do it? So, Jim, what in a nutshell does ClearSign do?

Sure. Yeah, so we are an industrial technology company. The technology we make is a low-emissions industrial burner. So these are the components that control the flames in – companies like oil refineries and chemical plant, also boilers, midstream gas heaters, but the very large industrial flames. And this industry is driven by the need to meet the latest emissions regulation and specific to provide ultra-low NOx emissions. And we can do that by controlling the chemistry in a flame through controlling the flame structure. The NOx emissions are driven by the Clean Air Act. They're imposed by regulation. So these are a level that our customers are required to meet. Our advantage in the market is we enable them to do it in a much more cost-efficient manner than with the existing technology. So the levels we're talking about, the other technology to reduce It's basically a back-end chemical plant that has to be built into a heater to remove the emissions from the flames before those gases go out the stack. With the ClearSign technology, we just don't make those emissions in the first place. To put that into perspective, one of the orders we have in-house, we were talking to the customer prior to receiving that order, and their estimated costs for going with the alternative SCR solution were about a $50 million project for a conversion of one of their heaters. Our estimate of the ClearSign solution, their total cost, which includes our burners, is in the region of $7 to $10 million. So it's, I believe, just on this one project that we're saving this client in the region of $40 million. There's a very clear cost advantage to our customers in selecting this new ClearSign technology and not making emissions in the first place.

All right. So you've talked about what we do, the drivers in the market, kind of the competitive side

landscape of technology maybe describe more kind of the market the market opportunity jim would you be able to quantify what our addressable market is sure and the right we our biggest market segment is oil refining uh we're also looking to develop into the petrochemical industry but to try and put our arms around the rather realistic market opportunity for clear sign The regulations that require technology are the newest, strictest areas. So for us, while there's some in Europe, predominantly for this purpose, we just think about Texas and California. Our estimate is there is about 28,000 burners installed in refineries in California and Texas. And we did a technology feasibility study with ExxonMobil back in 2019. And as part of our conversations during that process, ExxonMobil expressed their assessment that about 50% of their burners were good targets for clear sign technology. So if we use that 15% guideline of the 28,000 installed burners in California and Texas, that gives about 4,200 burners currently installed in refineries in California and Texas that are good applications to be retrofit with ClearSight technology to comply with modern emissions requirements. And for timing, you can expect that will be done over probably 10 years as we're just trying to get our arms around or bracket the market. And then the other important piece of information is the average price for burners is about $100,000, plus more for the big ones, less for smaller ones. But for the sake of this map, about $100,000 a piece. That will give you a number for the refining industry, the petrochemical industry, we would assess to be about the same size as the refining industry. And when we look at the total clear science product sales, we have other products as well. I'd expect our flaring thermal oxidizer products combined to make about 20% of our business, our midstream and boiler products to make up another 20%. So the refining petrochemical, that will be about 60% of the total.

Okay, great. And again, you referred to that typical burner price around $100,000 because we've referred to that as what Brent said in that 26 burner order. And we'll talk about some orders later that will help investors kind of quantify what a total order size may look like if you apply that dollar amount to a burner for one of our orders.

Yes, it's a good guide. I think the other piece of relevant information, if you're looking at the company, right, we talk about the company structure, how we work. We are an asset-like company. We need a run rate of about $60 million per year or 160 process burdens per year to get to break even. So that's not an extremely high number. But with that market size, when you do the math, there is plenty of market there for players to develop a very profitable business.

Great. And one thing you just said there, Jim, which is a good segue to the next question, you mentioned asset light. So you mentioned, obviously, we're an industrial technology company. And because of being asset light, it allows us to capture these all-park 30% margins, which prints it. How does ClearSight do it? How are we structured, and how are we going to market?

Yeah. So we have a unique IP and technology. And in fact, we have unique capabilities without our computer modeling Since I joined the company in 2019, we set a strategy of leveraging that IP, but selling into this very industrial market with very established clients like refining companies. Those clients require full-scale demonstration of firmness. They require the equipment to be manufactured in the shop that they've accredited. with a very sophisticated quality control system, it takes a lot of money to develop that kind of asset. So rather than doing that, we set about leveraging our IP, but to work through collaborative partnerships with other companies that already have that infrastructure in place. And there are some really big companies in this industry. We formed a collaborative partnership with one of the really big majors, Zico Inc., multi-billion dollar that's b with a b brilliant with a b company they're based here in tulsa they're about 15 minutes down the road from our office they have the largest burner test facility and manufacturing plant here so we can demonstrate our products now in the zico test facility our process learners get built by zico so our clients get to benefit from the approval of their manufacturing and their quality control system. So basically we get to deliver our IP, but to present it through the market with the credentials of Zico. For Zico, our collaborative arrangement allows them to compete in areas of the market that extend beyond the capabilities of their own technology. So this is truly a win-win relationship for both of us.

Okay, that's great. Well then let's turn to the year end and fourth quarter. You know, the company ended the year in on a high note and recorded quarterly, record quarterly and annual revenues. You know, Brett did mention, but what were the contributors to this?

No, I'm going to turn this over to Brett. He's won the details from the finances and can talk about more specifically.

Thank you, Jim. And thanks, Matt. Yeah, the fourth quarter revenues were predominantly from our 26-fur order that would shift down to that petrochemical company. the Texas Gulf Coast. I think it's important to note that in the fourth quarter, the revenues weren't just made up of that. We also recognized revenues related to spare parts orders and engineering services. Specifically, one of the engineering services that were exciting was a customer witness test. where a subject matter expert from a petrochemical company came in and got to look at our burner and kind of run it through the test facility. I liken it to inviting a test driver to come run the race car around a racetrack and get to play with it. And that went well?

So the 26-burner order was completed and delivered, and the revenues have been booked. Is that right, Tim?

That's correct. The requirement was we had the burners complete and packaged and ready to collect by year-end. And ZECO really came through for us there. They worked long hours, but before everyone left for the holidays, we had, combined with ZECO, had that done. So yes, we did recognize correctly.

And when will this project start up in the field?

The... Burners are currently on the client site. They're waiting to be installed, which is scheduled to happen early after mid-year this year. The current expectation is the startup will occur in October.

Okay. So then let me ask you this. Do you think this will boost or help our visibility and potential pipeline?

We expect this to be very important for us. There's a number of reasons for that. coast. The burners are an early version of our new Gen 2 technology, which is a great burner for us. The project was done through the Woco, who are, I believe, the leading engineering heater revamp company here in the US. So there are a lot of eyes on these burners. I think generally for everyone, but we We have to be very careful when we talk about customer names and the details of projects openly. Within the industry, through all the conferences and the interpersonal relationships, this project is very well known. They know the burners. There are a lot of people watching this project and talking about it. Even companies like Volgo have been a very good reference for us because they've been through this project and seen the burner development, seen them operate in the Zico test burners. They've already been very meaningful in talking to other clients about clear sign burners and their experience of working with us.

Yeah, and I know we mentioned our previous call and mentioned the name Borwelco. You can go to their website, and they list the logos of their clients, and it really is a who's who of super majors, major petrochemical companies, and you can see it on their website.

Yes, and they're actually part of a very large organization themselves, so yes, they've been a very good a client force.

Let's talk about other announced process burner orders. We've announced a 32 burner order for a major refiner and a 36 burner order for another major, we're calling it a household name. In regard to the latter, the 36 burner order going to the Gulf Coast, how is that order progressing?

Very well. Both of these orders are released in phases, which is actually very common. The first phase being engineering and the computational modeling or simulation of the burners operating in the client's heater. That has gone extremely well. Those results are sent to the client. So we're currently discussing moving into the testing phase of that project. The other interesting part is the installation has been split into two There's a large four-section heaters for the first two sections, and those would be established quickly and then roll into, you expect to complete the other two sections, but the first manufacturing phase has actually been pulled forward, which is very good news for us.

And then, so earlier you spoke about the drivers for our technology and the use of our products, and you spoke about NOx emissions being a main one, but this project is

is a bit of some other drivers is that correct it is and this you know we mentioned the cfd in the competition modeling this is where that really gets to be very valuable so a a big part of the economic driver for our client in undertaking this project is not only maintaining compliance with nox emissions but in this case to improve the performance and the operation of the heater So another thing that we can do with our technology is we have great ability to control the shape and the structure of the flame and impact the pattern or the way that the heat is transferred to the heating services inside the heater. So we can distribute the heat evenly and basically reduce hot spots that can occur if you don't do that well. What that means for the client is that we can reduce the maintenance requirements, we can reduce the frequency or prevent them having to replace damaged tubes, increases what they call the uptime of the heater, basically increasing their productivity and reducing their maintenance costs. So we can deliver a very real return on investment for the client. In addition to, as opposed to on the emissions-based projects, we really, in that case, we deliver them in a much more economical way.

okay so we're actually making the heater run better and more efficiently that's true now the other layer about this project you and i were discussing recently is what i'll call the design or engineering of the of this order um and you were telling me this is kind of a new iteration or application or burners could you could you get some more color about that yes and it makes sense so to tie back to

When we talk about the company and the industry in general and the feasibility or the assessment from ExxonMobil of 50% of burners being good applications for ClearSign, that was based on the burners we had available at that time, which were upwards, vertically fired, round-shaped burners, which is the most common shape. But there are different types of heaters and different shapes and configurations. This particular case on the Gulf Coast, the burners are mounted and firing horizontally on posed walls at the end of the square box. They're firing in towards each other. There are a number of heaters of this configuration. Getting into and getting this reference and demonstrating the burners performing well in this configuration provides a very good reference for us and opens up this new type of heater for ClearSign and expanding our market. So it's actually not just showing what we can do in control of the flame shape and making the heater run better, is also getting us a reference and an extension of our product line into the Horeba positive five configuration.

All right, so it's demonstrating a larger applicability and expanding our addressable market.

Yes.

That's fantastic. So then let's turn to the 32 burner order. And how is this order progressing?

So this order is very similar to the first in many ways. We received the CFD and the engineering order up front. That has gone very well. The same as the first order, this project is also being split into two parts, and the first part being accelerated, so we're actually going to expect to move into the testing phase quite soon. In fact, we recently received the order for some engineering to support that test, and then after that expect to move in and be able to make the product for that first heater ahead of the schedule that we originally anticipated. Good news.

And then since we're on that previous order, we're talking about designs or applications. Is this a standard application or configuration?

It's amazing how similar these projects are. This is a different configuration. This is a flat burner. So whereas the standard burners are round, in fact, the horizontal fire burners we just talked about are round. This burner is a long, thin flame, and the burner is designed to fire up against the wall inside the heater. Again, the heater has a brick or a high-temperature concrete wall. The burner heats the wall up. The heat radiates from the wall onto the process tubes. What's especially interesting here is there are a large number of heaters and refineries of this configuration that makes this burner very relevant. forward to our product development pipeline we're looking to get into the petro cabinet and specifically the ethylene manufacturing heaters and having a flat burner that fires up against the wall of this configuration is a very common format in the ethylene furnaces and that industry in itself is about the same size as the entire refining industry if we can get into that production so these burners as we're developing them for this refining process heater are a good step in that direction. It shows our capability to produce this shape of burner. There's still work to do to get into the ethylene furnaces, but I believe it's going to provide a very valuable step forward as we move markets are very exciting for us yeah so not only are these two two orders large orders for us they're both different configurations and each one that are going to be great references and expand our applicable market that's true and i think at a right at a higher level when you look at these i think what it's showing with our very developed cfd capabilities and they're very adaptable burner technology that we developed through the government sbir program is that we have the ability to take our standard burner and to adapt that to meet the special needs of customers in these different heater applications where the burners have not been successful. So it truly platforms and showcases what we can do at ClearSign. The higher level of engineers that we've been able to recruit and hire, the sophisticated CFD technology that we deploy, the experience within the company, combine that with the IP that we have and what we've developed through the the big SVR project we've just completed. It shows those capabilities at a high level and how we can adapt this technology and readily take it, put it into these different configurations and show the success that we've been able to show.

Okay. Well, then beyond these two existing projects, what does the pipeline look like? Now, we did mention a story in the last call about a new major refiner wanting to get quotes on 10 or so heaters. Have you seen any of these requests

We have, you know, again, let's take a step back. We gave an update call in February of this year. And the main reason we did that is we'd seen a shift in the type of inquiries for quotes that we'd received. Basically, we started to get a lot of interest from super major household name major refineries to have rolled into the orders we've just talked about. But there was a lot of other interest from these big customers that we've been pursuing and had not had great success while our technology was just not well known or trusted within the industry. And seeing that significant shift in the market dynamic was very relevant leading to the update call we gave in February. So as part of that call, we did talk about one instance we discussed was through Keto Engineering Company, one of the major refineries on one of the key decision-makers, subject matter expert there, talking to his close relationship person at Biwelko to get references of their experience working on the 26 burner project, had turned around and asked Biwelko to refer 10 projects that they had lined up in their queue to ClearSign for input going forwards. So now, to date, we've received four of those inquiries and been able to provide proposals for them To set expectations, these type of projects are usually scheduled over a long period of time. They're scheduled around refinery turnarounds and project planning. There's a lot of work. So this is not all work that's going to come in in the next 12 months. Some of these are scheduled out years and will continue to be. But in terms of building up our proposed backlog, this is very significant. So today we've We've quoted four of these. We expect more to come. Great.

And then for those, and you're right, and referring to that last call in February, we did talk a kind of a market dynamic that we're seeing, right? Larger customers, larger facilities, larger heaters. Thus, we're seeing kind of larger orders, quoting larger orders. Yes. And then from that, could you talk about the total process burner pipeline in general?

Yes, I can. So just as a data points out that those four heaters for that one refiner total, that 73 burns I think is the total for those four. In the last call, we gave a general number. The backlog quoted was around 200. And that included what we knew about the 10 heaters from the one to two because we've continued to get inquiries. We've received some more, and I believe that totals up around 200. as we sit today. And again, those are also from household name, you know, will recognize major refiners.

And then what sort of, and we also talked about in the last call, but what sort of marketing initiatives do we have kind of on the horizon coming up? We mentioned a demonstration coming up later this month.

Yes. I mean, there's obviously pushing LinkedIn and advertising campaigns, but at the big event right now, we have a, A new burner technology we developed under the DOE SBI grant. That development was completed last year. And the last part of that project, we're actually releasing that and demonstrating that to industry in a couple of weeks on April 23rd. So we have a demonstration going on at the Zico test facility. We have decision makers and subject matter experts from major refineries and engineering companies coming in. to town for that how does this compare i know we've done previous demonstrations like this but maybe just could you give a comparison how this might compare i don't it hasn't happened yet but how does it look like so far compared to previous demonstrations that we've done yeah we can because we obviously we track the other responses the invitations and who who's coming in and much like the the dynamic and the market and proposals we've got a well the previous Demonstration, I believe the attendance was around 16 to 18 people. So far, we have just over 30 and counting people coming into this demonstration. But what's particularly important is who is in that 32. So we have key decision makers, subject matter experts from the major refineries and major engineering companies, including customers that we're bidding to have on this perspective pipelines. coming in to see how those, these people are taking time out of their schedule, flying to Tulsa to spend the day with us. So this is a very pleasing development for us.

Yeah, it'll be a great event. Well, then let's shift to the M-Series, which is our midstream focused product. Jim, like you did with Process Burner, would you mind kind of describing the midstream application and maybe in comparison to the Process Burners?

Yes, so the industry to start with, the refining is taking crude oil and processing it to an end product. The midstream, we're moving upstream. The midstream is really transportation, and predominantly, with this being about gas, it's also the purification and the cleaning of the gas. When it comes out the ground, it's got components that you don't want to burn, so it gets cleaned and then transported to the gas you'll see coming out in your homes and the client site. For the heaters and burners, the equipment is typically a lot more simple than the refinery heaters. It's also a lot more standardized. So that means that the burner products that we have can be designed, but once designed, they don't get customized on a job-by-job basis. The fuel isn't always natural gas compared to refineries where you get a whole mixture of blends. The business, for that reason, can be much shorter cycle. The burners tend to get billed to existing prints It is a very low consumption of engineering and project management resources once the products have been developed. So it's a very, while it's based on the same technology and expertise in terms of the product line itself and how we think about it, it actually operates pretty differently to the process. So it can take an order to revenue much more quickly. We don't have always detailed visibility of the pipeline. Because once our clients, the heater manufacturers, once they have pricing of our burners, they will use that pricing on multiple occasions whenever they have an application for that burner. They don't come back just for details. So there are, I'm sure, many quarters out there using our equipment that we don't even know about.

And we did talk about pipeline. I know, again, we keep referring to that last call, but we did mention our proposal pipeline on that last call, which sits about... We've got 50 at that time, I believe.

5-0. Yeah. And they continue to come in. Like I said, that's what we know about. I'm sure there are others out there that we don't even know about at this time. I think just on that note, we have those two burners. We have an M1 burner that has run now for many months. That's our first burner. That's the Opelonok burner. That burnership ran around 2 PPO, far exceeding any requirements of these burners. But we've also developed a lower cost, what we call the M25, which is a lower spec burner book for a much broader application. There's a lot of inquiries using this burner. The first of those started up two weeks ago, met all requirements, that burner's up and running. So that was a very pleasing development for us to actually have one of those burners up and running. I actually know Devco, he's down in Texas.

Okay, and that was through Devco. And that was a dynamic we talked about, how we sell to third-party manufacturers, companies like Devco. Have there been some developments with these third-party manufacturers?

Yeah. In particular, Devco. I'm watching the news. So we've mentioned Zico as our partner. Zico is a multi-billion dollar company. Zico have actually purchased Devco now into Zico. So they are now very close to our office, I believe. Well, the first thing that happened was I reached out to Zico at the same time that Zico were reaching out to us to confirm that the ClearSign business would still be part of the Zico business, so we were both pursuing the same goal there, so that's very pleasing. My understanding is Zico's obviously taking that business over, looking to grow it. They have a lot more resources than the old Devco, so I believe that's actually very good. We could be seeing a lot more Devco work in the future.

Okay, great dynamic. So then we've covered refining, we've covered midstream. Let's get closer to the production well and talk about another product line, Flares. Now, this is a product line that we've seen a strong resurgence and expansion in orders and in the monetary size of orders. So can you give, just like the other two product lines, Jim, could you give a brief description of our flare products?

Yes. So most people who see flares, you'll see the large flames on very tall stakes or pipes or structures coming up in the air. There are many different types of flares. Ours are a much smaller flare. typically stand 30 to 50 feet high, or they're inside of that size of vessel. They're an enclosed plane. And the reason they're built that way is that, like other products, we have a low emissions flare. So on flares in certain regions of the company, they're also required to control their NOx emissions. We have a burner product that can do that. Earlier orders for the flare burners we took were to upgrade the burners in existing flares. So basically our clients have purchased flares from another supplier. The flares didn't work or they couldn't meet the emissions requirements. They came to ClearSign to replace the burner element, which we did inside the existing stack. Those orders to us ran in the region of $200,000 to $250,000 per burner order. Recently, our clients have... seen benefit from having us replace more and more of the equipment so now we're typically replacing not just the burner but replacing the fuel control system the blower and in fact the elements of the stack the most recent orders a good example of this we've referred to them as system projects by replacing the entire system and these orders are coming in on the low end 500 000 up to about a million dollars a piece in fact the last order was right around that one million dollars

Right. And so we talked about that. Our most recent order was, I think, the customer's fifth order from us. And that customer evolved from, you say, just ordering the burner parts, morphing into a full system. And this last full system came in around that, closer to that latter number, the million-dollar range. Is that correct? Yes, that's right. And then what does our prospective pipeline look like here for this product?

Yeah. I mean, just with this client, we have one flare with them is due to stop at any time. It's just waiting on a component, which is not as supply as somebody else's supply. We have the one that we've mentioned now that is being built. We believe or understand from them that they have four or five more flares that they will need. We don't know exactly the timing, but there are more flares needing low emissions coming up based on of the Midwest. When we think about this technology, though, we also look at it in a horizontal, which generally referred to an incinerator or thermal oxidizer. In that format, the ability to burn a hard to burn or a waste gas has a lot of inerts is another big cost driver. If it Typically, the client would have to buy natural gas to burn this type of gas completely. But our burners, we can burn this in its raw form without the need to buy any supplemental gas. And we have a number of projects quoted and hopefully going to come through later this year based on that. So those, we generally group those also into a description of system projects. So both in the vertical enclosed flare format and in the horizontal incinerator or thermoxizer format. And we're seeing a very healthy pile on there. And in the latter, in the format, there are a lot of renewables applications. So it's not just the refining and the wellhead fields. It's getting into other industries.

Okay. So we can look to some potential continuing momentum in this product line. Yes. Yeah. Very much. So with that being said then, Jim, we're probably into 2026 and looking forward into this year. What are the milestones that investors should be looking for?

Very clearly at this time, it's all about building our backlog in the company, so getting orders in. But we're seeing significant opportunities out there now. We need to bring those orders. and to stay there. So bringing in these large refining processes and building on that momentum, the startup down on the Texas Gulf Coast is going to be a very significant reference point for us. I believe there are a lot of people watching that project. The demonstration on April 23rd in just a couple of weeks to industry is going to be very significant. All in the effort. industry and you know pushing out with new shapes and getting into more heaters and showing what we can do we're getting more and more of that work beyond that the flare systems projects and thermosizer projects for the size of those orders that can be a very meaningful revenue stream for the company so we're absolutely looking to push and maximize the references from the installations we get in that segment and the midstream there are a lot of quotes out there that midstream industry just bringing those business force.

Okay, that's great. So that's all the prepared questions I have today. So with that, we'll take a pause and we will open it up for Q&A from analysts and investors.

At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we poll for questions. Once again, please press star one if you have a question or a comment. Our first question comes from Peter Gastric with Water Tower Research. Please proceed.

Yes, sir. Thank you. So, congratulations on your results and a great start to 2026. Also, thanks for taking my questions. Just first of all, I appreciate the detail around the burner order configuration. Are you able to expand a bit more on what this will mean for your addressable markets, and how would you characterize the size of the market opportunity?

Thank you, Peter. It's actually very large.

The most pleasing part about the SBIR project was the burner platform that we've developed. It's certainly a very good straight refinery burner, but the way that the burner technology is structured, it allows us to adapt it to different shapes. So in the two orders we talked about, if I had to put a number to it, it probably adds 20% to 25% to our refining coverage in just those two formats. But when you think larger about what we can do with that burn, I truly think it opens up the door for us to get into the ethylene production, as I mentioned, which is about the size of the refining industry in itself. And I'd

I'm not sure where the boundaries are, to be honest. It's just a very flexible burner format that is very applicable, I think, and can probably open up some new markets we've not even considered yet. Okay, great. Thank you.

And so for the fourth quarter, you had a big jump in revenue with that equivalent to 70% of the full year. Meanwhile, you mentioned before that Zico made a substantial effort to ship 26 burners by year end. So with your technology really being something as potentially being disruptive, big addressable market out there, orders could expand meaningfully. How should we think about the capacity of Zico and the supply chain to facilitate this large growth outlook?

Yeah, I mean, to put things in perspective, Zico is a multi-billion dollar company.

They have global manufacturing. So I would love to be a supply problem for Zico. They have the biggest test facility in the world. They truly have multi, you know, they're up in the region, I believe, north of 15 test furnaces there. So it is not a problem. Also, for the other product lines, we have multiple other manufacturers in Tulsa that we can use, that are used to manufacturing equipment for the combustion and the oil industry in general. That's part of the reason we moved the company here, in addition to the human personnel and the expertise here. So believe me, there is very adequate resources within Zico and then within Tulsa for the other product lines for ClearScience.

Okay, great. Thank you.

I'll just ask one more question here before getting back in the queue. So, yeah, it looks like your, you know, installed base here is on a solid trajectory. How should we think about the aftermarket pull through here, you know, maintenance, spare parts, things like that as a contributor to future revenue, like how substantial will that be?

Based on what we've seen at ClearSight and also for me based on my prior experience, it is an extremely meaningful product line in itself. It is very profitable because all the engineering and the design work is done and the client's need is based on responsiveness. So it's very profitable and the more equipment we get out as our business grows, it will continue to grow. And it is likely that in terms of profit margin, it may well end up being close to the largest source of income for ClearSign as we look farther ahead in the field and as we get more equipment out there in the market. So it is a very important problem and one that we pay special attention to now because of how important we expect it to be in the future.

Okay, that's great. Thanks very much, and congratulations again. I'll get back in the queue. Hey, Peter, thank you very much.

Once again, if you have a question or a comment, please press star 1 on your touchtone phone. The next question comes from Amit Dayal with HC Wainwright. Please proceed.

Thank you, guys. Just with respect to the cadence of revenues in 26, how should we think about quarterly revenue flows this year?

That's a great question.

From a quarterly perspective, Q1, I feel confident in saying that it's not going to replicate Q4 of 2025. But from an overall annual perspective, we feel confident with the revenues for 2026.

I think if I can, just in general for, we've said this before, given that our Our orders are very large and also long-term. Our revenue flows will be lumpy. We're not going to get consistent, smooth causes, especially not at this stage. As the business grows and we get more orders in-house, that will tend to smooth out with the volume.

But at the period we're at right now with these large orders, I say it's going to fluctuate.

Looking long-term at the, well, we talked a lot about the interest in our customers and the pipeline we're seeing on the proposals. As that flows through and those come in, I mean, the long-term view for the company is very healthy. I chimed in really just to caution that I do expect things to be lumpy in the short term.

I appreciate that. Just wanted to see if that is still sort of in play. Not expecting anything different, but it's good to know how we should think about 2016. And then just from a balance sheet perspective, are you comfortable, you know, as your orders ram with respect to working capital needs, et cetera, to meet, you know, your growth requirements?

Yes. Okay. Yeah, we feel very confident in the cash position that we have.

I think for the new investors on the call as well, it's good to point out with our projects that they're typically self-funding. We actually bring enough money in early in the project to cover our costs for the execution of those orders. So we do not need cash. So as the large orders in our pipeline come in, we don't actually need our cash to execute those orders.

We typically get that cash in in advance of our costs or expenses. Okay, understood.

Thank you for that. And then just last one, you know, with sort of this current macro situation in the Middle East, in the energy space, some of the product deployments need downtime, et cetera, you know, for customers to, you know, put these things into play. Do you think you might face some push-outs from that perspective? I don't know, maybe too early to tell, but any thoughts on how that part of the execution?

So are you referring to the Middle East? We lost Amit's line.

Let me see if I can get him back on the line for you.

I believe he was asking about the Middle East and the disruption there.

So those projects will be long-term.

We don't know what is happening there. Typically, the emissions regulations in the Middle East are not in the same level as those in the U.S., so it's unlikely that clear sign technology will be deployed to the Middle East in the near term. If that increases the demand and the production in the U.S., it may well drive the need for equipment or upgrades in the U.S. There may be some benefit there for ClearSign, but to be clear at this point, I don't see ClearSign products being shipped out to the middies just because there's not a need for them.

And I'm going to go ahead and dovetail a question that was sent in about a similar topic. There was a question asked, Jim, if there was a great need for U.S.

products being sent there, could our, in a sense, manufacturing supply be disrupted? Could we have issues getting our own burners manufactured, let's say, here locally?

Yeah. I don't see that as being a concern. I mean, one, some of these projects tend to be long, but also, you know, if we're thinking – Most of these will be refineries if it's Zico. Zico is a global company. They have manufacturing around the world. In fact, they actually have a manufacturing base in Saudi Arabia there to serve the Middle East. So our products are typically manufactured in a U.S. plant. So I don't see that as a concern at this time.

And I'll give another follow-up question, if I could, Jim, from an email that came in. There's been also very news kind of relevant that there's been a lot of discussion of potentially the first new refinery being built in Texas.

Are we seeing or hearing anything about that?

We obviously see the news. There's been a couple of releases out this week.

Within the industry, we're not hearing much actual factual news.

So we're watching it closely. I'm...

I think at this point, I just say we are paying attention to it. I would not put too much at stake at this time. As things develop, if they do, and they've mentioned there being a hydrogen fuel to that site, if that does materialize, it could be a very relevant and clear sign.

But at this point, we are watching for developments, let me say. We've not seen any solid details about that yet.

Okay, great. Jim, I'm seeing... I'm seeing no more questions. So with that, I think we'll go ahead and wrap up the call. I will pass it back over to you.

Great.

Thank you, Matthew. And thank you, everyone, for joining us today. I feel interesting, clear-signed, and especially for taking the time to listen to our call. We will be presenting at Water Tower Research Insights Conference next week on April 15th. And the company can be found on their website, watertowerresearch.com. We look forward to updating you regarding our developments and speaking with you on our Q1 2026 call, which will occur in May. In the meantime, please keep checking in for developments on our website, and for more behind-the-scenes updates, please follow us on LinkedIn.

With that, thank you very much, and thank you, operator.

Thank you. This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.