ClearSign Combustion Corporation Announces Second Quarter 2014 Results
Company highlights milestones including scale demonstration and
field test agreement for Duplex™ Tile technology and the addition of
Plum Creek to Solid Fuel Working Group.
SEATTLE, Aug. 12, 2014 /PRNewswire/ — ClearSign Combustion Corporation (NASDAQ:CLIR) , an emerging leader in combustion and emissions control technology for
industrial, commercial and utility markets, today announced its results
for the quarter ended June 30, 2014. The Company incurred losses of
$1,626,000 and $3,273,000 for the three months and six months ended June
30, 2014, respectively, as compared to losses of $1,405,000 and
$2,762,000 for the same periods in 2013.
Research and development costs totaled $556,000 and $1,163,000 for the
three months and six months ended June 30, 2014, respectively, as
compared to $537,000 and $995,000 for the same periods in 2013,
reflecting increased personnel levels and research activities in 2014.
General and administrative costs increased to $1,072,000 and $2,113,000
for the three months and six months ended June 30, 2014, respectively,
as compared to $871,000 and $1,774,000 for the same periods in 2013,
reflecting increased business development and marketing costs.
Working capital at June 30, 2014 totaled $4,211,000, including cash and
cash equivalents of $4,731,000. Management expects these funds to be
sufficient to fund activities at least through early 2015.
“The second quarter and first half of 2014 have marked the successful
beginning of an important transition for the Company from technology
development to an intense level of activity in market and business
development,” said ClearSign CEO, Rick Rutkowski.
“In May, we reported that we successfully operated our Duplex™ Tile
technology in a full scale demonstration at 5mmbtu/hr, achieving
emissions of less than 5ppm of NOx at temperatures of greater than
1600°F and with O2 at 3%. This powerful demonstration of an
unprecedented combination of features at commercial scale has
subsequently been at the center of a significant increase in business
development activities focused on delivering this powerful innovation to
the marketplace, beginning in the second half of this year.
“To that end, we recently entered into a Field Test Agreement with a
large oil company in Southern California to install our Duplex Tile
on-site in a large steam generation unit used for enhanced oil recovery.
We expect to provide more details on the agreement and the planned
installation in the days ahead. This project will mark not only the
first use of our technology in a commercial system, but will also
demonstrate the scale potential of the Duplex at a heat release of up to
50mmbtu/hr.
“There are over 750 once-through steam generator (OTSG) units in
California alone and many more in other areas where thermally enhanced
oil recovery (EOR) is utilized to enable heavy oil production. Following
the demonstration of our technology at this commercial site, which we
anticipate may begin in the current quarter, we plan to launch the
Duplex Tile technology into the market for large-scale steam generation
systems during the first half of 2015. We expect to refine this outlook
in the weeks ahead including announcing several partnerships that will
support our business development effort and the delivery of our
technology.”
Rutkowski continued, “In June, our CTO, Joe Colannino, presented
ClearSign’s technology to a highly receptive audience at the Air and
Waste Management Association’s 107th annual conference. We are now
engaged in active dialogue with several oil refiners who are prospective
candidates for early and ongoing commercial deployment of the Duplex
Tile technology for refinery process heaters. Based on recent
discussions, we anticipate that we may be able to install refinery
demonstration systems on site as early as the second half of this year
and begin commercial deployment in the first half of 2015. We believe
that Duplex technology provides unique and significant advantages for
refinery process heaters by reducing NOx to unprecedented levels, while
improving flame pattern and heat distribution to increase process
throughput, and reduce maintenance costs and downtime.
“We continue to target entry into the industrial package boiler retrofit
market in 2015 and are currently in advanced discussions and
negotiations with both manufacturers and distributors of these systems
in order to access a sales and service channel. In addition to our
pending OTSG demonstration and our planned site demonstrations at
refineries we are exploring and evaluating demonstration sites for
industrial package boilers as well as the potential for funding support
for some of these early installations.
“As we prepare to undertake field demonstrations and the commercial
launch of our Duplex Tile technology, we continue to make progress in
the development of our proprietary Electrodynamic Combustion Control™
(ECC™) technology with our current focus on the application of this
technology to the industrial scale combustion of solid fuels. In July,
we announced this commercialization effort has been accelerated by the
formation of the Solid Fuel Working Group — key industry stakeholders
who have pledged a combination of development funding and in-kind
support as well as access to candidate sites for testing and eventual
commercial deployment of ClearSign’s ECC technology. Founding members of
the Working Group are Covanta , a world leader in sustainable waste management and renewable energy and Great River Energy , a regional energy cooperative based in Minnesota that provides energy
from a range of sources including both coal and biomass-based waste to
energy systems.
“Today, we are pleased to announce that Plum Creek , one of the largest private landowners in the United States with 6.8
million acres of timberlands and wood products facilities, has added
their support to the Working Group.
“In addition to these highlights, we continue to make outstanding
progress in our business development efforts in China as well as in
other application segments within the industrial combustion market. We
will discuss these in greater detail during our call.”
A conference call discussing the release of the Company’s results for
the second quarter ended June 30, 2014 will be held today, August 12,
2014, at 4:30 PM Eastern Time. To listen to the conference call, you
should dial 1-877-870-4263 (international:+1-412-317-0790) five to ten
minutes before the scheduled start time and request to be connected to
the ClearSign Combustion Corporation conference call. Click here or visit ClearSign’s Investor Relations page to listen to the call online. 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 10050857. The
replay will be available for 7 days after the conference call.
About ClearSign Combustion Corporation
ClearSign Combustion Corporation designs and develops technologies that
aim to improve key performance characteristics of combustion systems
including energy efficiency, emissions control, and fuel flexibility and
overall cost effectiveness. Our primary technologies include our
Electrodynamic Combustion Control™ (ECC™) and Duplex™ platform
technologies that improve control of flame shape and heat transfer and
optimizes the complex chemical reactions that occur during combustion in
order to minimize harmful emissions. For more information about the
Company,
Cautionary note on forward-looking statements
This press release includes forward-looking information and statements
within the meaning of the Private Securities Litigation Reform Act of
1995 and the provisions of Section 27A of the Securities Act of 1933,
as amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Except for historical information contained in this release,
statements in this release may constitute forward-looking statements
regarding our assumptions, projections, expectations, targets,
intentions or beliefs about future events that are based on management’s
belief, as well as assumptions made by, and information currently
available to, management. While we believe that our expectations are
based upon reasonable assumptions, there can be no assurances that our
goals and strategy will be realized. Numerous factors, including risks
and uncertainties, may affect our actual results and may cause results
to differ materially from those expressed in forward-looking statements
made by us or on our behalf. Some of these factors include the
acceptance of existing and future products, the impact of competitive
products and pricing, general business and economic conditions, and
other factors detailed in our Annual Report on Form 10-K and other
periodic reports filed with the SEC. We specifically disclaim any
obligation to update or revise any forward-looking statement whether as a
result of new information, future developments or otherwise.
