CLIRMEDIUM SIGNALFINANCIAL10-K

ClearSign Technologies executed a significant reverse stock split (approximately 10:1 based on outstanding share reduction) while burning cash and reducing capital expenditures substantially.

The dramatic reduction in outstanding shares from 52.4 million to 5.4 million indicates a reverse stock split, typically implemented to maintain exchange listing requirements or improve share price perception. The company's cash position declined by over one-third to $9.2 million while maintaining minimal capital investment, suggesting a focus on preserving liquidity during operational challenges.

Comparing 2026-03-31 vs 2025-03-31View on EDGAR →
FINANCIAL ANALYSIS

ClearSign's financial position shows mixed signals with gross profit growing modestly to $1.4 million while the company reduced capital expenditures substantially from $39K to just $4K. The balance sheet reflects declining liquidity as cash and equivalents dropped to $9.2 million and total assets contracted to $12.2 million, though current liabilities increased moderately. Overall, the financial picture suggests a company in cash preservation mode with limited growth investment despite some improvement in gross profitability.

FINANCIAL STATEMENT CHANGES
Capital Expenditure
Cash Flow
-89.7%
$39K→$4K

Capex reduced 89.7% — investment cycle winding down or capital discipline; may improve near-term free cash flow.

Cash & Equivalents
Balance Sheet
-34.6%
$14.0M→$9.2M

Cash declined 34.6% — significant cash burn or deployment; verify adequacy of remaining liquidity runway.

Gross Profit
P&L
+27.4%
$1.1M→$1.4M

Gross profit expanding — improving pricing power or product mix shift toward higher-margin offerings.

Current Liabilities
Balance Sheet
+26.7%
$2.0M→$2.6M

Current liabilities rose 26.7% — increased short-term obligations, watch current ratio.

Current Assets
Balance Sheet
-24.4%
$14.8M→$11.2M

Current assets declined 24.4% — monitor working capital adequacy and short-term liquidity.

Total Assets
Balance Sheet
-23.5%
$15.9M→$12.2M

Total assets contracted 23.5% — asset sales, write-downs, or balance sheet optimization underway.

Total Liabilities
Balance Sheet
+23.2%
$2.2M→$2.7M

Liabilities increased 23.2% — monitor debt-to-equity ratio and interest coverage.

Stockholders Equity
Balance Sheet
-13.2%
$9.5M→$8.3M

Equity decreased 13.2% — buybacks or losses reducing book value, monitor solvency ratios.

LANGUAGE CHANGES
NEW — 2026-03-31
PRIOR — 2025-03-31
ADDED
As of March 16, 2026, the registrant has 5,408,723 shares of common stock, par value $0.0001, issued and outstanding.
Such proxy statement will be filed with the Securities and Exchange Commission within 120 days of the registrant's fiscal year ended December 31, 2025.
We have reflected the reverse stock split herein, unless otherwise indicated.
We are collaborating with Narion Corporation ( Narion ) to further develop our technology for this industry, which allows us to incur minimal costs while pursuing this market opportunity.
While the establishment of a new BACT benchmark does not specifically endorse us or our products, it does establish a limit in the industry that favors our products.
On October 3, 2025 the Texas Commission on Environmental Quality ( TCEQ ) delivered a proposal to the EPA outlining changes to their local regulations to maintain compliance with the Federal Clean Air Act ( FCAA ).
Among the proposed changes, the TCEQ has recommended the implementation of fee program to fine major NOx emitters.
As of the date of this report, the TCEQ rule change has not been approved by the EPA, but we believe this regulation change, if approved, will ultimately incentivize our customers to seek NOx reduction technologies for their current and future operations.
During 2025, we experienced an increase in low NOx flare inquiries, which we believe were driven by these new regulations, and as a result we received multiple purchases orders from a California energy company.
During 2025, as part of our Department of Energy ( DOE ) grant to develop an ultra-low NOx hydrogen burner, we successfully demonstrated a new revision of our ClearSign Core TM burner burning pure hydrogen fuel in an industrial scale test heater, while still controlling NOx emissions to levels commensurate with applicable regulatory requirements.
REMOVED
As of March 26, 2025, the registrant has 52 ,418,782 shares of common stock, par value $0.0001, issued and outstanding.
The secondary potential market for our sensing technology is outside of the typical combustion industry and includes transportation industries.
As a result of this assessment, SCAQMD approved new BACT performance guidelines for both single and multi-burner configurations.
ClearSign Core TM burners have demonstrated the ability to burn fuels with up to 80% hydrogen while still controlling NOx emissions to meet required regulatory levels.
We believe that we can extend the capability of our ClearSign Core TM technology to burn pure hydrogen fuel.
Including our technology in OEM burner products enables us to leverage our technology by providing OEMs with the ability to offer a new product range with our technologies unique capabilities and differentiated product performance.
We believe that the simplicity of the actions required to retrofit refinery process heaters with the ClearSign Core TM technology, and the potential ability to install these burners will potentially contribute to demand for our ClearSign Core TM process burners.
This technology has been configured into standard modular designs that can be used individually, or in combination, to provide a flare product with extremely low NOx emissions.
We have designed standardized flare configurations with standard firing capacities that can be combined in varying quantities to produce flares with different firing rates.
We are continuing to pursue first adopter installation opportunities for this patented sensing technology.
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