Good afternoon and thank you, operator. Welcome everyone to ClearSign Technologies Corporation's second 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 could 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 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 31st, 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.

On the call with me today are Jim Deller, ClearSign's Chief Executive Officer; and Brent Hinds, ClearSign's Chief Financial Officer. With that, I am going to turn the call over to Jim Deller.

Jim, please go ahead.

Thank you, Matthew. As always, I'd like to thank everyone for joining us on the call today and your interest in ClearSign.

Like our more recent conference calls, we will use a Q&A format for this session. Some of you have sent in questions ahead of time, and we did assimilate those into the questions we will cover.

For the call today, Matthew will lead a question-and-answer session where we will go through the different business units, much like our previous calls. Many of you may have seen this, but you can send in questions ahead of time to our investor relations at [email protected].

We will start with Brent Hinds going over the company financials for the second quarter of 2026. Brent?

Thank you, Jim. Thank you, everyone, joining us here today.

Before I begin, I'd like to note that our financial results on Form 10-Q was filed with the SEC last week. With that, I'd like to give an overview of our financial results for the second quarter of 2026.

For the second quarter of 2026, the company recognized approximately $560,000 in revenues, compared to approximately $133,000 for the same period in 2025. The year-over-year increase in revenues was predominantly driven by delivering a portion of our flare system order and completing multiple CFD studies and spare parts orders.

Our second quarter gross profit margin was approximately 41%, which was relatively flat year-over-year. Our net loss for the second quarter decreased by $373,000 compared to the same period in 2025.

The decrease in our net loss was predominantly driven by a $368,000 decrease in general and administrative expenses. Our general and administrative expenses decreased 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 ultimately dissolved after our annual meeting of the stockholders.

Now let's shift our focus to cash. Our net cash used in operations for the second quarter of 2026 was approximately $1.2 million, compared to approximately $511,000 for the same period in 2025.

This year-over-year change was predominantly driven by timing of customer cash collections. As of June 30th, 2026, we had approximately $9.9 million in cash and cash equivalents.

Now, I do believe it's important to note that subsequent to June 30th, 2026, we raised additional funds through a private equity offering with a long-time investor. We sold 500,000 shares at market value, or rather $3.54 per share on July 21st, 2026.

This added approximately $1.7 million in net proceeds to our cash balance. Considering this addition of cash, our pro forma June 30th, 2026 cash balance would be approximately $11.6 million.

As noted on our Form 10-Q, as of August 8th, 2026, we have 6.8 million shares of common stock outstanding. This share count includes our most recent share offerings.

With that, I'd like to turn the call over to Matthew Selinger.

Thank you, Brent, for the financial overview. Jim, and thank you both for joining me today here.

Let's start the call kind of the corporate level and discuss some recent developments there if we could. Jim, Brent mentioned a capital raise recently.

Could you shed some color on the decision-making process for the two raises that just happened?

Yes, certainly. The first, we were approached by a long-term investor group.

They expressed an interest in acquiring some more shares. From the company's perspective, having a stronger balance sheet is always good, especially when talking to large customers.

We went ahead, we arranged a small strategic raise. This was done at market pricing, and was common stock only.

Following that, a long-term private investor reached out to us and expressed an interest in topping up their ownership of the company to maintain their percentage. Again, we raised a simple direct placement.

In this case, it was done at market pricing. Again, it was shares

only. Great.

Now the other development was just announced last week, and this was the announcement that former Exxon global technology leader, Larry Sadler, joined the Board of Directors. Jim, I know you've known Larry for a while.

Maybe give a little background there on that relationship.

Yes, certainly. I have, and first, I'm really pleased that Larry has decided to join us at ClearSign.

I've known Larry, I think I first met him back in the 1990s. He was working on the Baytown refinery for ExxonMobil.

We worked together, I've stayed in touch with Larry since joining ClearSign. Larry's career has progressed up through the ExxonMobil organization, both with the technical oversight of fired equipment, which includes heaters and burners, and also up to the corporate level where he's overseeing policies and how the company assesses heater performance and new technology.

From that perspective, his experience and insights are extremely valuable to ClearSign. Just in general, he is a fantastic guy and has a great reputation within the industry.

I know you and I were talking about this, and you mentioned that he wanted an opportunity to see the newest and latest burner technology himself before joining us.

Yes, that's right. Larry has a lot of experience, is reasonably very cautious about who he signs on with, and prior to agreeing to join us, wanted a chance to come and see the ClearSign technology in action for himself, right, to check that it lived up to our reports and advertisements.

Larry actually came in ahead of the customer demonstration that we did earlier this year in April. He spent a day with us, he had his own testing.

We spent a day with him, basically let him direct the testing, kick the tires on the burner and the technology. He then stayed for the demonstration day itself.

Obviously, since then, he has agreed to join the company. On behalf of all the directors, we are really pleased to have Larry join us.

I think it's a great addition for the board and at the company. Let's shift now back to ClearSign's business and into the product lines.

The last couple of calls, I know we've endeavored to give some visibility to the pipeline in terms of proposals for the product lines, including both process burners and the M-Series midstream burners. I think the last call we left off, I'll quote you, Jim, as saying, "We have approximately 50 or so proposals out for the M-Series."

Now, since that last call, we've announced orders for six M-Series burners, which is again, back-of-the-envelope numbers, call that 10, 12% of that backlog converted to orders. Can we talk about some of these M-Series orders first?

Yep. Certainly.

Okay. The first two in chronological order were from Tulsa Heaters Midstream, and they were slated to go to an operator in West Texas.

Could you talk more about these first two orders?

Yes. Tulsa Heaters Midstream is a midstream heater manufacturer actually based here, obviously, in Tulsa.

They were the first company to install one of our new M1 burners, and that went into a chemical site down on the Texas Gulf Coast. That burner ran fantastically.

They've got experience of our burners. These new orders are going down to a company we described as a multinational energy company down in the Permian Basin down in West Texas.

This is probably the biggest midstream region for us in the United States. Both of these first two burners, it's new heaters.

They're going down to the same customer, actually onto the same site.

These were two, I think we've described, large M1s, and they're separate orders, correct?

That's correct. I believe it's the same project for the client, but they placed their orders for the heaters one after the other, and Tulsa Heaters Midstream received, and in turn, turned around and placed the order on us.

Okay. Then after those two separate, again for the same end-use customer, we had an order for three burners from a different heater manufacturer.

This also was going to West Texas.

That's correct. This is actually a different end user.

Again, it's a Fortune 500 midstream customer down in the Permian Basin. Very similar situation.

Both of these are absolutely top-tier customers with lots of assets and lots of needs. These three are going down as the same customer, I believe, to the same site.

They're also very large M1-Series burners.

The same size. These first, call it, five are all these

They actually are. Now, for ClearSign, for our efficiency, it's interesting that we actually have five of the same size burners, two going to Tulsa Heaters Midstream, and then three going to this second customer.

Okay. We'll talk about size and dollar amounts here in just a moment.

I know it makes sense to dive into this order too, because this came from a different heater manufacturer, and I know we didn't mention whom they were. I know when you and I talked about this, the processing of this order is a bit different for us.

Is that correct?

It is. For a long time, we've looked at the scalability and the growth of ClearSign, and recognized that a royalty or licensing-type operation gives the great ability to scale.

This order is on that basis. This customer has the ability to manufacture burners.

What they've actually purchased is the right to manufacture these burners themselves from ClearSign drawings. We are not doing the manufacturing.

We're going to be involved in the inspection. We'll obviously make sure they work.

It's a first step in the direction of actually, hopefully, getting a royalty-type business up and going that we can grow in the future.

Which is very interesting. Again, just to kind of clarify, this is the heater manufacturer that's going to be manufacturing the burners, not the end-use customer.

Correct. Yes.

Okay. It is interesting, Jim, that ClearSign's been focused on technology, obviously focused on technology-level margins.

How did that look at the profit? Secondly, is this a type of model that we will continue to pursue?

Yep. We leverage our technology.

These M1-Series burners provide a lot of value to customers in order to be compliant with the tightest NOx regulations. We are able to maintain and have maintained the profit margin dollars on all of these burners, the Tulsa Heaters Midstream burners and the orders that are going out under this licensing-type agreement.

The margin for ClearSign remains the same. Obviously, on the licensing-type agreements, the revenue is less because rather than ClearSign having the burners fabricated by a third-party fabricator and shipping those to the client, the client is doing the fabrication themselves.

The revenue is reduced, the profit margin dollars are the same, whether we're selling the manufactured burner or whether it's being done under a royalty-style agreement.

Great. Then just to kind of round out these six orders, and then just weeks ago, we did receive another M-Series from again, Tulsa Heaters Midstream.

Yes.

This order was a little bit different, is that correct?

This is a smaller heater and a smaller burner for us, but going down to that same site and the same client as the first two.

Great. Let's talk about when we talk about smaller, larger, M1, let's kind of break these down if you don't mind.

What would the price range kind of be for the M-Series? Maybe talk through the model size, M1 or M25?

Yep.

The M1 is our top-tier high-tech burner. It has great value to the customer in the NOx emissions that it, right, allows them to achieve.

The price point for the M-Series is luxury version.

Yes,

it's higher. The M25 version of the burner is a slightly detuned.

It's targeting a less-stringent NOx requirement. It is priced to be competitive with some other burner products on the market.

The M25 pricing is less than the M1. For example, the large M1s will go up north of $200,000 per burner.

Down at the bottom end,

the small M25s are going to run down probably in the $40,000 per burner.

Okay. Five of these were these large M1s, correct?

Yep, they're not the largest M1s. I gave it not north of $250,000, but these were just shy of $200,000 each as a complete burner, obviously, under the royalty arrangement.

That pricing is less, but the margin is still the same.

Okay. The two things that go into kind of call the cost of these or the sale price is being the model, on the top end, right, would be large M1, you said $200,000-ish or north, and then at the bottom of that range would be then smaller M25.

Yes.

People can at least understand what the range

That's right. We keep giving, without any details, general guidance of $100,000 per burner.

That's probably representative of the whole range. Typically when we've always identified what they are, the large M1 is obviously towards the upper end of that range.

Then in lieu of these recent sales, Jim, how does that continued pipeline still look?

It's it's still looks really buoyant. We continue to get inquiries in.

It's a little difficult to answer specifically because what we're seeing is, like our these clients have familiarity now with ClearSign burners, and they include those burners in their proposals to customers without necessarily coming to us and getting quotes, because they already have quotes for the sizes they use commonly. There are quotes out there to customers that we actually don't even know about, and we're seeing that now in conversations, that suddenly things will move very quickly on projects that we're not even tracking, because we we actually don't know every application that our heater manufacturer customers are using ClearSign burner technology in their conversations with their end-user customers.

Got it. Even if we were still to attach maybe that proposal pipeline of 50 ballpark, that's still a safe number?

I think that's a good number, yes.

We'll do it. Then let's turn to process burners, Jim, and some of the bigger projects that we've had already in process.

We previously announced an order for the next phase of a 32-burner process burner project for a California refinery. How is this project progressing?

Maybe give a little color on this one as well.

Yep. This one's right on track.

We actually announced a detail engineering and testing order for this project. That work is going well.

The burner went through the computer modeling and the engineering. It looks great.

The client's seen it, they're all on board. This burner is in the process of being manufactured and it's scheduled to go in the test furnace within the coming weeks.

We will actually get to see this burner in action for the first time, but when I say the first time, is this is actually a different burner to anything we've put out before. The flexible-fuel technology that we developed under the SBIR grant gave us a burner platform that was highly configurable.

We talked about this on previous calls. This burner is a very different burner.

This is a long, thin burner that's designed to run the flame up the wall of the client's heater. Call it a flat flame?

It's generally called a flat flame

burner. We'll be getting this in the test furnace.

We'll be running it up, and the client will be out to see it. When that's all proved and done, we then expect to roll it into the manufacturing phase, start building these burners for the first heater retrofit out in California.

Right. This new application, it grows our addressable market in two fold, right?

One is somewhat immediate, and two, doesn't this kind of take us down another potential pathway?

Yep, there is. One of the nice things with the configurable burner technology is it allows us to put burners into types of heaters that we've never been able to address with the ClearSign burners before.

In this case, heaters needing long flat burners, that increased our addressable market. Suddenly, a whole range of new heaters become good targets for ClearSign technology.

Beyond that, looking further to the future, there are some very large, sort of more high-tech, higher-temperature processes, in particular delayed coker furnaces and then into ethylene furnaces, that commonly have flat flame burners. Now, these burners that we're supplying for this order going into a refinery, you can't pick those up and pop those directly into those processes.

There needs to be some more development, but this is a very significant step in that direction. One, technically in developing the burners, and I think also just showing the rest of the market that our burner technology is adaptable and, right, it can be developed into these new applications.

They are really important, because if you look at those processes, rather than being a single heater, if you get into something like an ethylene site, there might be seven or eight or more heaters side by side, all exactly the same. An order of burners going into that site may be in the hundreds rather than a tens of burners.

Like 20s, yeah. Wow.

Then switching projects, the other one we've talked about is a 36-burner order slated to go into Texas, and this too differs. Would you mind giving a little bit of description of how this one differs and then maybe an update on the status of this project?

Sure. Yep.

Again, these burners are different. They're different in a different way.

These are round burners, but they are fired horizontally, actually in opposite walls on each side of the heaters. These burners are firing in towards each other.

Again, there are a significant number of heaters of this configuration. Showing we can do this, I think, is starting to open up that market for us.

A slightly different update on this project. We had the initial order for the engineering and the CFD.

That has gone very well. The burners look great.

Everything is looking good. Unfortunately, there's been some delay in the client financing.

I can't really say exactly what is going on there, but the news to us is this project is on hold at this time, waiting for resolution of that financing. We will look forward to getting it going again.

We'll have to keep everyone posted, but at this point, that project has progressed

Okay. All right.

as far as it will today. Then

last, but definitely not least, is the 26-burner order going to a petrochemical company on the Gulf Coast. We've talked about this one for some time.

I think everybody have been awaiting the installation and firing up of this project. Where is the status of this?

It's right on track. We are currently going through training for the site-specific requirements for the people going down to the job site.

We're working through some last-minute spare parts the client likes to have on hand directly with them. Looking forward to the installation and the startup, everything is right on track.

I know you said to me too, and we said in our last call that we believe there's a lot of people kind of in the industry, including prospects, including other customers, that are watching this. So

Yes, absolutely.

With that, let's talk about then what do we take about the pipeline for the process burners? How do you feel about how that pipeline looks?

I am really excited. Just to round this up a little bit, we have a number of projects in progress.

Obviously, the Gulf Coast project is the most advanced, on the way to be installed and started up. We've got a refinery project going out to California that we've just talked about and some other startups, but just amongst three sites that are starting up right now, we have been told of over 20 heaters that just three customers are planning to bring to ClearSign, at least for proposals.

In terms of, a bird in the hand is a bird in the bush, they're not orders that we have, but there is a lot of potential work waiting for the experience that's going to be obtained by our customers in seeing these projects started up.

Jim, if you could attach so let's let's kind of highlight that again. You mentioned just three customers, talking about, low number, 20 heaters amongst the three of them.

I know we've highlighted one on past calls just themselves having about 10. What would a dollar if you had to attach a dollar ballpark to the heater to a heater in this scenario?

As you've seen, heaters vary greatly

Typically, yeah.

in their size, but I think seeing that they come with CFD and the engineering, and even being conservative, if you say a round number of $2 million on a revenue basis,

yeah,

per heater, I think that that's a safe number.

That's just a snapshot of what you're seeing of kind of the advanced conversations.

Yes.

Okay. All right, well, then let's move to the flare product line.

In the past we've talked about how we have some initial installations, large, full-scale products being installed. What's a good update on the flare product line?

This has been really active for us this last quarter. The first update is we have a project out in California where we replace the burner element in an existing flare.

This client has purchased a flare from a competitor. Flare didn't work properly.

They came to us to fix it basically. We sold a ClearSign flare burner to install into that flare.

That installation went fine. That project has now started up.

It's actually gone through the source testing. We do not have the formal test report back yet.

However, we were there when they took the data, as was the client, and everyone was really pleased with the results of that source

It went really well,

yeah. We're expecting really good news.

That client, on a different site, is currently receiving the parts for our first full-system flare. This is a flare that we're building from the ground up for this client.

The stack and the bulk of the equipment is there on site. It's going through the installation process.

There's still a little bit more to arrive, but that will be starting up in the coming months. That client, we believe, has other permits in process that they have identified for ClearSign equipment.

On the flare product line, could we talk kind of the evolution, for lack of a better term, of kind of the pricing here, I'm going to say, in terms of a project and the project scope, right? We start off, again, for a lot of our products, saying, "Hey, ballpark $100,000," right?

Now

For the flares, especially, this is really important. Using the reference of this first project where we sold a ClearSign special burner going into the flare, just that flare retrofit was, I'm guessing, $150,000, $200,000, somewhere in that ballpark.

Since then, we've been able to develop this product line into what we call the full system. Rather than selling just the burner, we're now selling the stack, the controls, the blower, and everything else.

Those have typically ranged, based on the proposals, in the $750,000 to $1 million range. That would include the one that's currently being installed and shipped to that client site.

Looking through our proposal listing, they actually go up to about $1.5 million as being as large as we quote. It's with that reason, with the quotes we're getting, it's actually turned into a very meaningful product line for ClearSign.

Given the interest we're getting, it's sending a nice revenue stream as well.

It doesn't take many of these to kind of move the needle for us.

Exactly.

Yes. Yeah.

Then so let's pull back. We've talked about multiple product lines, Jim.

If I was to ask you to describe how do you feel about the overall status of ClearSign's business, what is your temperature? How do you feel about it?

I am really optimistic. Just going from our recent discussion here, getting these M1 burner projects down into these top-tier clients down in the Permian Basin, those clients see our technology and get to favor those burners, and they start to pull ClearSign burner technology through with their heater orders.

This is a really big opening into this market, so that's a very big development.

That was only two customers, right?

Being six.

They went three and three. Even though the orders came in differently, but it's two large customers basically took three and three at the same site.

You can tell there's the ability, the appetite

These clients have many sites and a lot of assets down in that region. These are very big customers.

In addition to that, hopefully, the ability to develop a royalty-style business and expand on that is very good news for ClearSign. We talked about the flares.

Obviously, this product line, and it's not only that one customer, we have bids out to other customers as well. Getting these startups, developing these into full system projects, the flare product line is getting very meaningful for us.

I can't say enough about the process burners. Obviously, we have other proposals out for process burners, but the big news here is just getting these startups out there, what we're hearing from the customers on their plans for working with ClearSign.

Once they get their first hands-on experience of the equipment themselves, is really encouraging for long-term revenue for ClearSign.

Then so what should investors focus on for the rest of the year? I know we've highlighted this, but what should people be looking out

for? Firstly, it's really easy.

This Texas startup, it's going to be really important, extremely meaningful for ClearSign. We're all very excited.

That right now is scheduled to be in October, and we will let everyone know as soon as we get results from that. Beyond that, we've got the large flare that's being installed.

We'll get that started up. There's new permits, we believe, in progress, we're expecting those to get completed, and after that, we're expecting more orders on the flare product line.

Keep your eyes open for M-Series. The M-Series turn quite quickly.

We don't always get the involvement upfront on the orders when they come in, and they'll go from not knowing about it to finalizing details and an order very quickly. I think it's certainly potential for more M-Series work coming in as well.

Okay. Then before we turn over to Q&A, Jim, is there any other commentary you'd like to give?

I would. I think for everyone just to understand what we're doing, but also for a shout-out to the ClearSign team.

We are extremely busy this quarter. We have the things we talked about, we got the startup coming in Texas, we've got the flare installation and startup going on in California, we have a lot of testing going on, we actually have some other startups.

We are to the point of scheduling our resources very carefully to make sure that we keep all of this work covered. We have a lot of actual work getting done this quarter.

With that, really from my point, it's just a shout-out for the ClearSign team. They're doing a great job.

They're going to be extremely busy on a lot of site work and startups and testing. I want to thank them for their dedication.

They're all very excited, very focused on what's ahead of us.

Fantastic. With that, we're going to go ahead and open it up for Q&A.

Operator, would you mind taking a moment and polling and we'll segue into the question-and-answer period.

Hey, good afternoon, everyone. Thanks, Jim, Brent, Matthew, for taking my questions.

I would like to focus on the M1-Series here. You have three burners to be delivered in the third quarter and then 2+1 to be delivered in the fourth quarter.

I would like to understand the difference between the core M1 versus just a smaller M1 Series burner. What is the difference there in size or even in pricing?

Thank you, Sameer. There are a few things to differentiate.

We've generally call the ClearSign core itself as really the ClearSign IP that is the structure of the burner that enables us to get NOx emissions that we really utilize across our flare burners, our process burners, and the M-Series. As your question relates to the M-Series burners, the M1-Series has a very high-tech arrangement of nozzles within the burner to control the mixing that controls the chemistry that allows us to get the NOx emissions down into the low single-digit range.

The M25, which is the sister product line that is a more price-competitive product, does not get down to the same NOx levels, but we've achieved that by simplifying the burner design. Essentially it doesn't have all of these sophisticated, high-tech flow controls in the M25.

If you look at it just from a fabrication perspective, there's less metal in the M25 and there's less work. From my perspective, when pricing, I'd say it does not include all of the very high-tech IP that we incorporate in the M1.

With the M1, that the M1 actually has a unique place in the market. We believe that that provides an extreme value to the customer because it allows them to avoid things like catalytic conversion units that they would need otherwise to reduce their NOx levels down to these new low levels that we're starting to see.

Understood. We can visualize the California burner, 32-burner project.

We can visualize some of the other projects. In the midstream, the order sizes are two and three.

How should we visualize them being utilized on site? What is the maximum size of order in terms of numbers, like 4, 5, 6, or 15, that you could expect from a single site?

I can

just

follow up. Yeah.

Yep. Very interesting question.

One of the key differences with the M-Series applications in the midstream industry is that those heaters tend to be a relatively small, simple heater with a single burner in them. When we sell one of these midstream burners to a heater company like Tulsa Heaters Midstream, that is going into an individual burner.

When we have an order for two burners or three, that means the client is selling two different heaters or three different heaters to that same customer. They will typically sit side by side on that customer's site.

When you ask about the size of the order, we have inquiries for just shy of 30 burners in a single batch for midstream heaters. There are opportunities out there where there are a lot of heaters being considered and requiring the same technology for future projects.

There's definitely opportunity for large, multi-burner projects. Just in the midstream industry, they're typically one burner into an individual heater.

That means there's a lot of small heaters in that order rather than multiple burners going into a single heater as you would see in a refinery heater process burner product line.

Understood. That was helpful.

Clearly, you're accelerating your activity. Your core activity is increasing.

You're delivering products scheduled for 3Q, 4Q, and more. How should we look at the run rate exiting 2026?

Then maybe I can ask when can we see double-digit million top-line revenues? Is it 2027 a possibility, or is it a later 2028 kind of a timeline for seeing 10 10-plus million top-line revenues?

Yeah. I think we're all looking at the same thing.

I don't think it's reasonable to give exact numbers because, obviously, we're speaking a lot of future orders and things that we don't control. What we're looking at at this point, and I really believe is meaningful towards those double-digit revenues, is the interest and the proposal backlog, an inquiry backlog we're seeing, especially on the process burners that we believe is going to be opened up as we get these process burner installations up and running, especially that project down on the Gulf Coast.

Given that we're seeing interest in the flares in the average of $1 million range, and then the interest we're seeing in the midstream, I think it's feasible that we could be up to a run rate of $6 [million?] to $7 million at least on sales on the midstream and the flare product line alone, and then seeing that that interest in the process burners that we believe is going to get activated as we get these big projects up and running, I think there is certainly potential to get into those numbers you're talking about, at least on the sales.

As we bring the orders in, we have to convert those to revenue over time. That's probably the biggest question is just the timeline.

In terms of the opportunity, I'm very confident that a double-digit million opportunity is there for ClearSign.

Understood. Just one last one maybe.

Sort of it dovetails into what you just spoke about, but for the 32-burner, the flat burner, I think it is a refinery retrofit, there is a physical testing going on right now. Just wanted to see what the timeline of that is.

I know you may not be in control of that, but in terms of what actual physical testing is happening and how long that would take before you start delivering the 32 burners? Maybe also let us know what the cadence of that will be.

Will it be three burners a quarter, or will it be one whole 32 burner order that will have to be delivered in a few months' time?

Right. I'll tell you what I know.

At this time, as you said, we're not in control of all of those dates. The burner for testing is being manufactured at present.

It's due to be installed in the next couple of weeks. We've got to get the test furnace prepared.

Then typically, the run-in time, and we have to coordinate the witness for the customer, will take 3 to 4 weeks. I'm expecting the customer to witness that burner in the early October timeframe.

Again, this is expectations. It's not guaranteed because we're not in control of the customer's schedule.

As it's the first time we've actually run one of our flat flame burners. Following that, the client would need to give us a purchase order for the fabrication phase of that first heater.

I don't know the timing for that. The fabrication is probably going to take in a 3 to 4-month timeframe after we've received that order.

We obviously hope that they release that order quite quickly, but that is outside of our control ultimately. I hope that's enough to start building that timeline.

Then what we expect is the client will actually purchase the fabrication. There's two heaters involved in this project, 32 burners spread across two heaters.

What the client's indicated is that they will buy one heater's worth of burners first, get those out and get that done, and then follow on with the second heaters. We expect the fabrication to take place in two phases.

Understood. Okay.

Thanks for that. I will step back in the queue.

Thank you, Sameer.

Thank you. Congratulations on the results.

It's great to see the momentum building across the M-Series, process burner, and flare lines. Also, really appreciate the detail provided in the prepared remarks, I just have a couple of follow-up questions here.

First, your newest board addition, Larry Sadler, looks like a big positive for the company. You mentioned that he took some time to assess ClearSign technology before joining the board.

Could you elaborate on that?

Thank you, Peter. Yes, I can.

I don't want to speak too much for Larry, but I did talk to him obviously a lot during the time that we discussed him joining ClearSign, and was down there with him when he took time to visit our test site down at Zeeco and join us. It's quite common for people with wide experience in the industry to have certain tests they like to do with burners to validate their ruggedness and how reliable they are that are outside of the typical customer specifications.

Without getting into detail, one thing he wanted to do on the time that he came and spent time with us was to put the burner through what I call these extreme cases and extreme tests to test both the stability and the ruggedness of the burner, obviously to see the NOx emissions, and the burner operating across a very wide range of fuels, which is beyond what you would typically demonstrate in a customer job site. It gave a chance to kick the tires and to really see the burners working outside of, say, the comfort zone of just a typical operating envelope.

He really put the burner through its paces, and that's why he came in on his own for a day. I was really pleased that he actually chose to stay and join us on the demonstration day when we had a lot of other customers.

He got to talk to a lot of others from industry, actually met with some old friends, and got to see their reaction to the ClearSign technology as well.

Thank you. Second, you've previously called this year's burner wins a stepping stone towards ethylene furnaces and steam methane reforming.

I recognize this is a longer-term ambition for you, but what would be the roadmap from here in terms of R&D, qualifications, partners, or whatever other factors that we'd be looking at here, and what would be a realistic timeframe for these markets?

Thank you, Peter. It's, yeah, a good question, especially looking for the long-term prospects for ClearSign.

For a bit of background, the flexible-fuel burner we have described as a burner platform that gives the flexibility, and then recently, the burners going into testing is the first flat flame variant of the ClearSign technology demonstrating the flexibility that this, right, new flexible-fuel burner offers to us. The investment and the time to, right, take that burner and then develop it for the high-tech and the extreme operating conditions such as we would see in a down-fired methane reformer or an ethylene furnace is significant.

We do have that on the horizon. My plan will be to actually find a industry client who has an interest in that technology and work with them as a partner through that process.

Because when you're designing something, you really want to have an end-user site lined up as early as you can to make sure you have a destination for the project, and also to make sure you have a client involved in the work so that you are developing a product in line with their need, and not developing a product and then hoping you can find a client for it. We are open and certainly have initial conversations with clients who've expressed that interest.

I think there is an interest in the market. I don't know a timeframe for that, that's probably the open.

In my estimate then of once we start, the SBIR project to develop the flexible-fuel burner took about 2 years from start to finish. I would expect that a development of one of these burners, my best estimate would be about a 2-year period to do that once started.

I would look for that to be partially funded by our industrial partner, and to have a project lined up at the end of it, assuming everything is good. Then in terms of resources, well, the test complex at Zeeco has test furnaces suitable for ethylene burners and down-fired reformer burners.

That's a burner technology that Zeeco has. In terms of the resources of the testing and the experience of those of us here at ClearSign, we've worked with these technologies before.

We just not yet developed the ClearSign technology into that form. I was saying, if I can just to round out, to explain to everyone why we would do this, because, obviously, it is quite an extensive piece of work.

From my background, the burner opportunity in the ethylene process alone is about equal to the entire opportunity in the refining business. Then the down-fired reformers is not quite as big in total, but a single down-fired reformer can have over a 100 over 100 burners in it, it is also a very significant market.

Our plans are, obviously, we are not taking our foot off the gas on the process burners. We will continue to develop the flares and the midstream burners and the process burners.

This is something I see as the future development of ClearSign, how do we expand our market even more and make ClearSign even bigger and get into more and more opportunities. It's not going to take away from what we're doing.

This is just an additional layer of business, how do we grow ClearSign in the future.

That's great. Thanks, Jim, and congrats again to you and the team, and I'll get back in the queue.

Thank you, Peter.

Operator, I'm going to go ahead and interject from a question, if I could, that was sent in via email. Jim, we have received a couple of questions here about the sales team and how your outreach works.

Would you mind kind of giving an overview of that sales process and outreach?

Yes. I probably talk about the sales in general in the industry.

It starts to understand, right, the business, probably how it differs from many businesses. We are providing a technical solution to our customers that involves us working with them, right, to fit the ClearSign technology into their heaters, their control systems, and to plan the projects.

A large part of the actual selling process is that collaborative interaction with our peers at the engineering companies, the heater manufacturers, and the technical leads on the refineries. We have at ClearSign some of the most experienced engineers and computer modelers in the industry.

We have a lot of connections within the industry and certainly a lot of reputation. That is a very big part of bringing orders in.

Of course there is outreach. We're always looking to make more people aware of what we do, which is how we start those conversations.

We have one person full-time dedicated, and others constantly out at conferences reaching out to new clients. We also have a very active social media and outreach, and I'm sure that many of you are following us on LinkedIn as well.

They bring the leads in. The majority of our sales activity is actually very collaborative sales based on the experience and the connections that we have throughout the industry.

Thank you, operator. Thank you, everyone, for your interest in ClearSign and taking the time to listen to our call today.

We look forward to updating you regarding our developments, speaking with you on our Q3 2026 call in November. In the meantime, please keep checking in for developments on our website, and also for more behind-the-scenes updates, please follow us on LinkedIn.

With that, I really appreciate your time. Thank you very much.