Good afternoon, and welcome to the ClearSign Corporation Second Quarter 2019 Conference Call. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Matthew Selinger, Investor Relations. Please go ahead.

Thank you, operator and welcome everyone to the ClearSign Combustion Corporation second quarter 2019 results conference 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 risks - 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 the ClearSign's products will be successfully completed, whether ClearSign will be successful in expanding the market for its products, and other risks that are described in ClearSign's public periodic filings with the SEC, including the discussion in the Risk Factor section of the 2018 Annual Report on Form 10-K. 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 Rob Hoffman, ClearSign's Chairman of the Board; Jim Deller, ClearSign's Chief Executive Officer; and Brian Fike, ClearSign's Chief Financial Officer. So with that, I would like to turn the call over to Brian Fike. Brian, please go ahead.

Thank you, Matthew. And thank you to everyone for joining us here today. Before I turn the call over to Jim, I'd like to review our results for the operations for the second quarter, which ended on June 30, 2019. The net loss for the quarter ended June 30, 2019 was $2.4 million compared to $2.4 million loss in the same period for 2018. Shares outstanding as of June 30, 2019 were 26,702,261. Our cash and investment resources were about $11.6 million at the end of the second quarter of 2019 compared to $13.7 million at the end of the first quarter of 2019. It is important to note that we have sufficient working capital available as of today to carry us well into 2020 even assuming no revenues or changes in expenditures. And with that, I’d like to turn the call over to our Chief Executive Officer, Jim Deller. Please go ahead Jim?

Thank you, Brian, and good afternoon everyone. Before getting into my comments on the progress and outlook of ClearSign's business today, I want to quickly review the key elements of the plans we laid out in our last quarterly conference call. In that call we presented a strategy of prioritizing key technologies that we can commercialize quickly. Developing those technologies to minimize barriers to acceptance by our customers and to make them simple to incorporate into the equipment of major supplies in the industry. And finally, to deliver our technology to our customers through collective arrangements with leading equipment manufacturers in the industry and identify and develop channels to market as for the ongoing growth of our business as well as that of our partners. At that time, we also discussed developments in our key combustion technology especially the addition of a reposition pilot that enables the ClearSign business to startup and operate in the same way as a standard production process or boiler burner. We've also stated that it is our intention to continue to develop our technology and our operations in a manner focused on the needs and preferences of our customers. In this call today, I will give updates on the development of our combustion technology, discuss the packaging of our technology, for easy adoption by our current and future OEM partners and talk a little to the extent if I can about our progress in developing strategic partnerships. Back in June, we announced the completion of a supply agreement with ASHCOR LLC. I will talk about the opportunity presented by this agreement and give an update on our additional palliative activities. Please note that we are actively negotiating with multiple perspective collaboration partners at this time in an effort to reach the best and most mutually…

Thanks Jim. When we first discussed what my role would be in this call, I thought I would summarize Jim's comments and highlight the accomplishments of the firm in the five short months Jim has been our CEO. But as you just heard that list is long and given that everyone will have the ability to review a transcript of the call, I encourage all to focus on all of the different areas Jim expounded upon since they are all very meaningful. I will however emphasize a few areas that I believe are vitally important in the short term as well as the long-term. Current cash burn has been reduced even while accomplishing all of the above, how we go to market and what we provide the market has been retooled. The interest and enthusiasm of potential supply partners is real and having relationships with these strong partners will be appreciated by the end customer. Not only has Jim and his team reconfigured the burner to be more normal or recognizable and how it operates but the DSM designed for manufacturing efforts have dramatically reduced the number of parts that go into the ClearSign core. As we ramp sales that will work, that work will pay large dividends. Speaking of the ClearSign core, a not insignificant change with the decision to move from the term Duplex is sort of a generic term that didn't communicate much to ClearSign core. Much like Intel Inside, we want to set the groundwork for a product identity that communicates that a burner heater boiler has the best technology embedded in its brain or core. And as Jim also commented plays into our strategy of having supply partners whose name and reputation product. Lastly I will comment on the speed core that I sense from sent the entire ClearSign team. They are working hard, are proud of what they've accomplished in a short period of time and are excited at the prospect of success measured in revenues in the not too distant future. I think I speak for the entire Board of Directors in sharing that enthusiasm. With that I would like to open the call to Q&A. Operator, can we open the call to questions please.

[Operator Instructions] Our first question comes from Robert Kecseg with Las Colinas Capital. Please go ahead.

I got on the call a little bit late, so I missed a little bit of it in then I did it on source your that was really kind of scratchy, so it’s kind of hard for me to understand. But I deflected just kind of throw the question out there, regardless if it fits certain but as far as the fire tube boiler before you came on that was something that was in process I believe. Can you tell me, give us some kind of an idea about how much of a product that is amended that we believe we have the product to be able to deliver fire tube?

In short, yes, we absolutely do. Since I joined we have modified the 5G boiler as you state that burner or a preliminary version of this burner was installed in the test ball we have here in Seattle. Over the last few months we have modified the way that it functions in much the same way as the processed burner. We have reconfigured the way that the burner lights. If you’ve been following the technology, the older version required a small warm-up burner to fire for a period of time to warm-up the ClearSign ceramic components with of our now branding the ceramic coal and then by modification to the burner, we effectively jumped the flame on to that ceramic coal, which is the normal operating mode for the ClearSign technology. With this new pilot allows the burner to light-off and immediately ignites on the ClearSign Co, so essentially it runs just like a normal burner, we push the button and the burner lights up and is ready to go. So the whole operation sequence is much, much simpler. We've also ready to help with our demonstration built a control system for this burner, so we can now demonstrate the burner to our customers exactly the same as it operates, what is in the field in a normal production burner and that’s the mode we’d actually demonstrated into the various customers and palmers that we’ve come through our offices and certainly here in ClearSign and they have seen it ramp up from zero up to full operating rates and down and modulating just as a burner would in a normal environment. And I am really looking forward our plans for China are to basically take this burner and put it in a functioning boiler in China demonstrated to the -- our potential partners and customers there in China. So coming back to your question, yes, we very much believe that we do have a quality and that quality is ready for market.

Something that I’ve never asked before that’s come to mind. Obviously, there's all these burners in place and all these refineries and so forth and in the fire tube boiler market than hundred probably hundreds of thousands of installations, could you speak to a little -- give us a little bit of an idea about replacement. I was wondering if these relationships once they're underway with various existing burner boiler companies which would give us an idea, is that kind of the market for when there's replacement activity for them that it gives us an opportunity to install ClearSign core into that replacement market. I am thinking along the right lines?

No you are exactly along the right lines. I mean there is some new equipment installed into the market but very much the opportunity and by far the greatly biggest market is to replace all of those burners already installed out there in the industry. And there are tens of thousands in our target regions. As the ultra-low NOx flames are being installed and our clients are seeking to operate a full rate they do run into problems with the long flames from traditional burners. We are providing a technology that now lifts up restriction and allows those very small and highly fired boilers and burners to fire up the normal rate and that’s why I mentioned the heat flux density in the conversation or the speech we just had. Also of course is the need to comply with the current and future emissions requirements. The existing burners have been installed in our clients heaters and many regions cannot do that. And they are faced with a very expensive retrofit for some post flue gas cleanup like an SCR or they can just change out the burner components to a new burner containing the ClearSign Core as a much more efficient and easy to operate means to address that upcoming problem.

[Operator Instructions] Showing no further questions, this concludes our question-and-answer session. I would like to turn the conference back over to Jim Deller for any closing remarks.

Well thank you operator. If there are no further questions, I would like to thank everyone for participating on this call and we look forward to updating you on our progress as events occur. We do appreciate your continued support, and I very much look forward to talking to you all in the future.

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.