ClearSign Technologies Corporation reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company experienced a substantial increase in revenue, with revenues for the three months reaching $1,859,000, compared to just $85,000 in the same period of 2023. For the nine months ended September 30, 2024, total revenues were $3,006,000, up from $1,129,000 in the prior year, marking a 166.3% increase.

Gross profit also saw a notable rise, reaching $551,000 for the third quarter of 2024, compared to $24,000 in the same quarter of 2023. For the nine-month period, gross profit increased to $1,030,000 from $259,000, reflecting a 297.7% growth. Despite these improvements, the company reported a net loss of $(1,155,000) for the third quarter of 2024, an improvement from a net loss of $(1,332,000) in the same quarter of the previous year. The nine-month net loss was $(4,135,000), slightly better than the $(4,239,000) loss reported for the same period in 2023.

The company’s cash and cash equivalents significantly increased to $14,486,000 as of September 30, 2024, up from $5,684,000 at the end of 2023. This increase was attributed to successful equity offerings, which generated net proceeds of approximately $12,967,000 during the nine months. Working capital also improved to $13,851,000 from $4,253,000 at the end of 2023.

Research and development (R&D) expenses rose sharply, with Q3 2024 expenses increasing by 253.8% to $236,000 compared to the same quarter in 2023. For the nine months, R&D expenses totaled $572,000, a 130% increase year-over-year. This rise was driven by additional headcount and product development costs.

General and administrative (G&A) expenses increased by 15.9% in Q3 2024, primarily due to a one-time accrual related to the suspension of operations in China, which is expected to be filed for dormancy by December 31, 2024. The company has also decided to suspend its operations in Beijing, leading to anticipated costs associated with employee terminations and equipment disposal.

Overall, ClearSign Technologies continues to focus on its core technology aimed at low emissions and has raised approximately $105.2 million in gross proceeds through equity securities since inception. The company maintains a cautious outlook, expecting to continue experiencing operating losses and negative cash flow in the near future.