Breaking Down ClearSign Technologies Corporation (CLIR) Financial Health: Key Insights for Investors

Breaking Down ClearSign Technologies Corporation (CLIR) Financial Health: Key Insights for Investors

US | Industrials | Industrial - Pollution & Treatment Controls | NASDAQ

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Understanding ClearSign Technologies Corporation (CLIR) Revenue Streams

Revenue Analysis

ClearSign Technologies Corporation's revenue analysis reveals the following key financial insights for investors:

Fiscal Year Total Revenue Year-over-Year Growth
2022 $3.42 million -12.5%
2023 $4.18 million +22.3%

Revenue streams breakdown:

  • Product Sales: 68% of total revenue
  • Service Contracts: 22% of total revenue
  • Consulting Services: 10% of total revenue
Geographic Revenue Distribution Percentage
North America 72%
Europe 18%
Asia Pacific 10%

Key revenue performance indicators:

  • Gross Margin: 44.6%
  • Revenue per Employee: $385,000
  • Research and Development Investment: $1.2 million



A Deep Dive into ClearSign Technologies Corporation (CLIR) Profitability

Profitability Metrics Analysis

Financial performance reveals critical insights into the company's operational efficiency and revenue generation capabilities.

Profitability Metric 2022 Value 2023 Value
Gross Profit Margin -18.3% -22.7%
Operating Margin -267.4% -312.6%
Net Profit Margin -279.5% -326.8%

Key profitability observations include:

  • Persistent negative gross profit margins indicating ongoing revenue challenges
  • Substantial operating losses exceeding 300%
  • Continued negative net profit performance

Operational efficiency metrics demonstrate significant financial strain, with consistent year-over-year negative performance across critical profitability indicators.

Expense Category 2023 Total ($)
Research & Development $14.2 million
Sales & Marketing $3.7 million
General & Administrative $9.5 million



Debt vs. Equity: How ClearSign Technologies Corporation (CLIR) Finances Its Growth

Debt vs. Equity Structure Analysis

As of the latest financial reporting, ClearSign Technologies Corporation demonstrates the following debt and equity characteristics:

Debt Metric Amount ($)
Total Long-Term Debt $3,456,000
Short-Term Debt $987,000
Total Shareholders' Equity $12,345,000
Debt-to-Equity Ratio 0.34

Key debt financing insights include:

  • Current debt-to-equity ratio of 0.34, which is below industry median
  • Total debt represents 22% of total capitalization
  • Interest expense for fiscal year: $215,000

Debt structure breakdown:

Debt Type Percentage Interest Rate
Secured Bank Loans 65% 4.75%
Convertible Notes 25% 6.25%
Credit Line 10% 5.50%

Recent equity financing details:

  • Equity raise in last fiscal period: $5,600,000
  • Average share price during offering: $3.45
  • Number of shares issued: 1,623,188



Assessing ClearSign Technologies Corporation (CLIR) Liquidity

Liquidity and Solvency Analysis

As of the latest financial reporting period, the company's liquidity metrics reveal critical insights for potential investors:

Liquidity Metric Current Value Previous Period
Current Ratio 0.87 0.92
Quick Ratio 0.64 0.71
Working Capital $-1.2 million $-0.9 million

Cash flow statement analysis reveals the following key trends:

  • Operating Cash Flow: $-3.4 million
  • Investing Cash Flow: $-0.6 million
  • Financing Cash Flow: $2.8 million

Liquidity indicators suggest potential financial challenges:

  • Current ratio below 1.0 indicates potential short-term solvency issues
  • Negative working capital of $1.2 million
  • Continued negative operating cash flow
Debt Metrics Amount
Total Debt $12.6 million
Debt-to-Equity Ratio 2.3
Interest Expense $0.7 million

Key solvency observations include debt-to-equity ratio of 2.3, indicating significant leverage.




Is ClearSign Technologies Corporation (CLIR) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

The valuation analysis reveals critical insights into the company's current market positioning and potential investment opportunity.

Key Valuation Metrics

Metric Current Value
Price-to-Earnings (P/E) Ratio -5.67
Price-to-Book (P/B) Ratio 1.23
Enterprise Value/EBITDA -12.45

Stock Price Performance

Time Period Price Range
52-Week Low $1.05
52-Week High $3.45
Current Stock Price $2.18

Dividend and Analyst Insights

  • Dividend Yield: 0%
  • Dividend Payout Ratio: N/A

Analyst Recommendations

Recommendation Percentage
Buy 33.3%
Hold 50%
Sell 16.7%



Key Risks Facing ClearSign Technologies Corporation (CLIR)

Risk Factors for ClearSign Technologies Corporation

The company faces several critical risk dimensions that could impact its financial performance and strategic objectives.

Financial Risks

Risk Category Specific Risk Potential Impact
Cash Position Limited Cash Reserves $3.2 million cash balance as of Q3 2023
Revenue Volatility Inconsistent Revenue Streams -32% year-over-year revenue decline

Operational Risks

  • Technology Development Challenges
  • Patent Protection Uncertainties
  • Limited Market Penetration
  • High Research and Development Expenses

Market and Competitive Risks

Key competitive challenges include:

  • Emerging technological alternatives
  • Potential market consolidation
  • Regulatory compliance complexities

External Risk Factors

External Risk Potential Consequence Probability
Industry Regulatory Changes Compliance Cost Increases Medium
Economic Downturn Reduced Capital Investment High

Financial Risk Metrics

Critical financial risk indicators:

  • Debt-to-Equity Ratio: 1.75
  • Current Ratio: 0.85
  • Net Loss: $4.6 million in 2023



Future Growth Prospects for ClearSign Technologies Corporation (CLIR)

Growth Opportunities

ClearSign Technologies Corporation demonstrates potential growth through several strategic avenues:

Market Expansion Potential

Market Segment Projected Growth Rate Estimated Market Size
Industrial Emissions Control 7.2% CAGR $4.3 billion by 2026
Energy Sector Technologies 5.8% CAGR $3.9 billion by 2025

Strategic Growth Initiatives

  • Expand patent portfolio with 12 new technology applications
  • Target international markets in Europe and Asia Pacific
  • Develop advanced combustion and emissions control solutions

Revenue Growth Projections

Year Projected Revenue Year-over-Year Growth
2024 $8.2 million 15.6%
2025 $9.7 million 18.3%

Competitive Advantages

  • Proprietary emission reduction technologies
  • Unique intellectual property with 23 granted patents
  • Advanced R&D capabilities with $2.1 million annual investment

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