ClearSign Combustion Corporation has announced its results for the quarter ended 31 March 2015. As a result of its ongoing research and development progress, the company incurred losses of US$1.538 million in the quarter ended 31 March 2015 as compared to losses of US$1.646 million for the same period in 2014. Research and development costs totalled US$573 000 in the quarter ended 31 March 2015 as compared to US$607 000 for the same period in 2014 reflecting decreased consulting activities in 2015. General and administrative costs totalled US$1.019 million in the first quarter as compared to US$1.040 million for the same period in 2014 due primarily to reduced investor relations consulting costs.
Working capital at 31 March 2015 totalled US$15.413 million including cash and cash equivalents of US$16.190 million. On 10 February and 12 February 2015, the company completed an underwritten public offering of 2 990 000 shares of common stock, resulting in net proceeds of approximately US$16.3 million.
"Today, I'm pleased to report several significant commercial milestones that have taken place recently," said Steve Pirnat, ClearSign Chairman and CEO. "We have completed our field demonstration at Aera Energy and are in the process of moving to production. During this field demonstration we were able to validate that Duplex Technology can meet the regulatory requirement for 5 PPM NOX in the San Joaquin Valley (which is among the most stringent in the world) but, even more significantly, we were able to show a meaningful reduction in energy consumption. Specifically, we demonstrated with the help of Aera, an efficiency improvement due to Duplex Technology's superior radiant heat transfer characteristics combined with a reduction in electrical consumption due to the elimination of flue gas recirculation and the associated blower horsepower.
"As a direct result of the performance at Aera we just received a contract from another oil producer in the Bakersfield area. With over 1000 once through steam generators in operation in North America, we are confident that the enhanced oil recovery space will be an area of growth for us based on the compelling value ClearSign can provide as compared to other customer options.
"This extraordinary performance is getting us a lot of attention in the industry. As a result of our performance in California, ClearSign was invited to present our technical results to environmental regulators in Texas on 7 May and the reception we received was unprecedented. As a hub of refining activity in the US and a leader in environmental quality, Texas is responsible for the refining of 26% of the nation's gasoline. This is a very important market for us, and further proof that word is spreading, not just in California but to other regions such as Western Canada, about our unparalleled NOX performance.
"Last month, ClearSign was privileged to host 18 senior technology experts from the American Petroleum Institute (API) at our headquarters in Seattle. The API members who represent most of the major global oil companies were able to visit our labs to see a demonstration of our Duplex Technology first hand and get a technical briefing from our research and business development staff at ClearSign. The dialog among the participants was very productive and interest among the API members was keen. There was particular interest in Duplex Technology's ability to eliminate flame impingement within process heaters, thus debottlenecking critical assets and reducing mechanical decoking and other operational costs.
"The refinery and petrochemical segment is a significant market opportunity for ClearSign. We were very encouraged by the positive feedback we received from the API membership and also believe that successful installations at the two refinery projects already in our trial order backlog will build further confidence and interest in Duplex Technology for refinery applications."
Adapted from press release by Rosalie Starling