ClearSign Combustion Corporation Announces Full Year 2017 Results
ClearSign Combustion Corporation Announces Full Year 2017 Results
Company Continues Commercialization of Duplex (TM) and Duplex Plug & Play (TM) Technologies to Provide Clean Air at a Low Cost with Rapid Payback
SEATTLE, March 27, 2018 /PRNewswire/ -- ClearSign Combustion Corporation (NASDAQ: CLIR), an emerging leader in industrial combustion technologies that reduce emissions and improve efficiency, today announced its results for the full year ended December 31, 2017.
"We continue to see progress and expanded interest for our technologies, which solve unmet needs on both the environmental and operational level in a cost-effective manner that, we believe, no other burner or environmental control can offer," said Steve Pirnat, ClearSign Chairman and CEO. "This past year we were able see our installations move into operating permit status, we successfully launched and installed our first Plug and Play burner and we embarked on our first international installations. With our most recent capitalization, we feel we are poised for growth in 2018 and beyond."
Strategic and operational highlights during and subsequent to the full year and quarter included:
-- Debuted, installed and successfully completed operational testing of new
Duplex Plug and Play burner - In February 2017, ClearSign introduced its
innovative Duplex Plug & Play burner, which is a simple, pre-engineered
solution for the refinery process heater market. Subsequently, Clearsign
completed the first installation and operational testing of the burner
at a refinery in Texas.
-- Announced the completion of initial installation assessment by Aera
Energy and received an additional order from this operator - ClearSign
celebrated the conclusion of experimental permit status for its first
Once Through Steam Generator (OTSG) project provided to Aera Energy and
was granted a permanent operating permit. Additionally, the Company
received its third order from Aera Energy to install its Duplex
technology in an OTSG. This is the first project using oil field waste
gas as a fuel source.
-- Secured follow-on order from California refinery - This is the second
order from this California-based refinery and we believe it further
validates the Duplex technology. The installation marks the first
installation of the Duplex technology into a new heater rather than a
retrofit into a heater with an existing burner. The Company believes
that California refinery customers will continue to provide
opportunities for installation of its Duplex technology.
-- Hired industry veteran as new Head of Business Development - Stephen M.
Sock joined the Company, bringing over three decades of experience and
vast oil and gas industry knowledge to help accelerate commercialization
efforts.
-- Successfully completed an order from ExxonMobil for qualification tests
of Duplex technology - The supermajor oil company funded tests to
determine Duplex's suitability for a variety of refinery process heaters
and conditions. We believe that this qualification will be a precursor
to an installation at one of its refineries.
-- Pilot test with large Chinese heating district - ClearSign entered into
a Memorandum of Understanding with one of China's largest providers of
heating services to run a pilot test. This is the Company's first
project outside of the U.S.
-- California regulator approves funding for collaborative demonstration
project with operator - The Board of the South Coast Air Quality
Management District approved funding to demonstrate ClearSign's Duplex
products at a refinery.
-- ClearSign Asia Limited formed to facilitate potential strategic
investments - Launch of ClearSign Asia Limited, a Hong Kong corporation,
as well as receipt of a Letter of Intent from TG CITIC Environment
Investment Group which is a joint venture between Tangsteel and CITIC.
-- Closed $12.94 M public offering of common stock - Announced the closing
of an underwritten public offering of 5,750,000 shares of common stock
at a price of $2.25 per share.
Revenue from our Duplex technology in 2017 was $540,000 compared to revenue of $621,000 in 2016 after delivering retrofits in the flare, refinery, and enhanced oil recovery segments. The net loss for 2017 was $9.7 million compared to $11.2 million a year ago primarily due to a decrease in general and administrative costs.
Working capital at December 31, 2017 totaled $263,000 including cash and cash equivalents.
On February 27, 2018, we received approximately $11.9 million in net cash proceeds from the closing of the offering of our common stock.
Shares outstanding at December 31, 2017 total 15,608,853.
Conference Call
A conference call discussing the release of the Company's results for the fourth quarter ending December 31, 2017 will be held today, March 27, 2018, at 4:30 PM Eastern Time. To listen to the conference call, you should dial 1-866-372-4653 (international: +1-412-902-4217) five to ten minutes before the scheduled start time and request to be connected to the ClearSign Combustion Corporation conference call. To listen by webcast use this link: https://www.webcaster4.com/Webcast/Page/987/24937 or visit ClearSign's Investor Relations page. If you wish to listen to a replay of the conference call, you may dial 1-877-344-7529 (international: +1-412-317-0088) and enter conference ID 10117869. The replay will be available for 7 days after the conference call.
About ClearSign Combustion Corporation
ClearSign Combustion Corporation designs and develops products and technologies for the purpose of improving key performance characteristics of combustion systems, including emissions and operational performance, energy efficiency and overall cost-effectiveness. Our patented Duplex, Duplex Plug & Play and Electrodynamic Combustion Control(TM) platform technologies enhance the performance of combustion systems in a broad range of markets, including the energy (upstream oil production and down-stream refining), commercial/industrial boiler, chemical, petrochemical, and power industries. For more information, please visit www.clearsign.com.
Cautionary note on forward-looking statements
All statements in this press release that are not based on historical fact are "forward-looking statements." While management has based any forward-looking statements included in this press release on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties and other factors, many of which are outside of our control, which could cause actual results to materially differ from such statements. Such risks, uncertainties and other factors include, but are not limited to, general business and economic conditions, the performance of management and our employees, our ability to obtain financing, competition, whether our technology will be accepted and other factors identified in our Annual Report on Form 10-K filed with the Securities & Exchange Commission and available at www.sec.gov and other factors that are to be detailed in our periodic and current reports available for review at www.sec.gov. Furthermore, we operate in a competitive environment where new and unanticipated risks may arise. Accordingly, investors should not place any reliance on forward-looking statements as a prediction of actual results. We disclaim any intention to, and undertake no obligation to, update or revise forward-looking statements to reflect events or circumstances that subsequently occur or of which we hereafter become aware.
ClearSign Combustion Corporation
Consolidated Statements of Operations
-------------------------------------
For the Twelve Months Ended
December 31,
2017 2016
---- ----
Sales $540,000 $621,000
Cost of goods sold 380,000 485,000
------- -------
Gross profit 160,000 136,000
------- -------
Operating expenses:
Research and
development 4,712,000 4,831,000
General and
administrative 5,160,000 6,510,000
--------- ---------
Total operating
expenses 9,872,000 11,341,000
--------- ----------
Loss from operations (9,712,000) (11,205,000)
Interest income, net 32,000 32,000
------ ------
Net loss $(9,680,000) $(11,173,000)
=========== ============
Net Loss per share $(0.63) $(0.86)
====== ======
Consolidated Balance Sheets
---------------------------
December 31,
2017 2016
---- ----
ASSETS
------
Current Assets:
Cash and cash
equivalents $1,247,000 $1,259,000
Accounts receivable - 103,000
Contract assets 184,000 -
Prepaid expenses and
other assets 366,000 535,000
------- -------
Total current assets 1,797,000 1,897,000
Fixed assets, net, and
other assets 508,000 654,000
Patents and other
intangible assets, net 1,856,000 1,735,000
--------- ---------
Total Assets $4,161,000 $4,286,000
========== ==========
LIABILITIES AND
STOCKHOLDERS' EQUITY
---------------------
Current Liabilities:
Accounts payable and
accrued liabilities $768,000 $755,000
Current portion of
lease liabilities 159,000 150,000
Accrued compensation
and taxes 607,000 669,000
Contract liabilities - 115,000
--- -------
Total current
liabilities 1,534,000 1,689,000
Long Term Liabilities:
Long term lease
liabilities 195,000 353,000
------- -------
Total liabilities 1,729,000 2,042,000
--------- ---------
Stockholders' Equity:
Common stock, $0.0001
par value, 15,608,853
and 12,983,938 shares
issued and outstanding
at December 31, 2017
and 2016, respectively
2,000 1,000
Additional paid-in
capital 52,441,000 42,574,000
Accumulated deficit (50,011,000) (40,331,000)
----------- -----------
Total stockholders'
equity 2,432,000 2,244,000
--------- ---------
Total Liabilities and
Stockholders' Equity $4,161,000 $4,286,000
========== ==========
CONTACT: Investor Relations: Matthew Selinger, Three Part Advisors, LLC for ClearSign, +1 817-310-8776, mselinger@threepa.com; or Media: Sylvester Palacios, Pierpoint Communications for ClearSign, +1 512-448-4950, spalacios@piercom.com
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SOURCE ClearSign Combustion Corporation
