ClearSign Technologies Corporation

Good day, everyone, and welcome to the ClearSign Technologies First Quarter 2026 Earnings Conference Call. At this time, all participants are placed on a listen-only mode. If you have any questions or comments during the presentation, you may press star 1 on your phone to enter the question queue at any time, and we will open the floor for your questions and comments after the presentation. It is now my pleasure to hand the floor over to your host, Matthew Selinger, Investor Relations at ClearSign Technologies. Sir, the floor is yours.

Good afternoon and thank you, Operator. Welcome, everyone, to the ClearSight Technologies Corporation first quarter 2026 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 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 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 product will be successfully completed, whether ClearSign will be successful in extending 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 for the period ended December 31, 2025. Except as required by law, ClearSign receives 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, Christmas Chief Executive Officer, and Brent Hines, Christmas Chief Financial Officer. So with that, I'm going to turn the call over to Jim.

Thank you, Matthew. As always, I'd like to thank everyone for joining us on the call today and for your continued interest in ClearSign. Like our more recent quarterly calls, we will use a Q&A format for this session. Some of you have sent in questions ahead of time, And we're going to simulate those questions into the materials that we will cover today. So for the call today, Matthew will lead a Q&A session where we'll go through the different business units, much like our previous calls. If you wish, you can send in questions to our investor relations at mselinger at firmirgroup.com. So to start us off today, I'm going to hand over to Brent Hines, who will go over the financial numbers for first quarter for 2026. Thank you, Jim, and thank you to everyone joining us here today. Before I begin, I'd like to note that our financial results on full review was filed last week with the SEC. With that, I'd like to give an overview of our financial results for the first quarter of 2026. For the first quarter of 2026, the company recognized approximately $200,000 in revenues, compared to approximately $400,000 for the same period in 2025. This year's decrease in revenues was predominantly driven by a decrease in spare part deliveries during the first quarter this year. Our gross profit for the quarter decreased compared to the same period in 2025. This decrease is mainly due to lower revenues and a warranty rule of $410,000 made in anticipation of potential modifications to some installed equipment in a California refinery. As a result, the year-over-year decrease in gross profit was approximately $589,000. Our net loss for the first quarter increased by $114,000 compared to the same period in 2025. The impact from the gross profit on our net loss was offset by a $369,000 decrease in general and administrative expenses. Our GNA expenses increased in comparison to 2025, in large part due to reduced legal fees that were incurred during 2025 for a special committee of our board of directors that was decommissioned after our 2025 stock holdings. Now let's shift focus to cash. Our net cash used in operations in the first quarter of 2026 was approximately $1.3 million, compared to approximately $1.1 million in the same period in 2025. This year-over-year change was predominantly driven by a reduction in our current liabilities. As of March 31, 2026, we had approximately $7.7 million in cash and cash equivalents, with approximately 5.4 million shares of common stock outstanding. And with that, I'd like to turn the call over to our CEO, Jim Deller. Jim. Thank you, Bransky. Again, thank you, everyone, for joining us today. I'm actually going to hand it over to Matthew Selinger, who's going to lead the question and answer session. But just to remind us, we go through this. If you do have questions, you can send those in to mselinger at firmirgroup.com. With that, Matthew, I'll hand it over to you.