Clearsign Combustion Corp. (NASDAQ:CLIR) Q1 2019 Earnings Conference Call Transcript
May 08, 2019 • 04:30 pm ET
Robert T. Hoffman
he has eliminated a major operational question mark on the part of customers. After all, the more customers have to change their operational methods, the more risk they will perceive and the less likely they will be to endorse change. So by removing perceived operational risks, we expect we can accelerate adoption; license agreements versus supply agreements, upfront investment versus collaborative development funded out of normal operating capital budget. The barriers to the former are substantial, including the issue of who. In other words, what level executive signs off and who in the organization, i.e., lower level executive, will have the career confidence to push it through to the top.
And the most impressive part of Jim's partnership strategy shift is that given the lower risks on the part of our partners, we should be able to not only reach an agreement faster but also move customers faster from beta orders through to adoption orders.
Successful supply agreements also dramatically drop another perceived risk that Jim identified. Customers want the comfort of a manufacturing-in-service organization that ClearSign has no interest in duplicating. So by collaboratively developing our technology with partners who already have such capability and providing those partners with incentives that they can easily model, we create a win, win, win situation for the customer, the partner and, of course, ClearSign.
Lastly, with the addition of Jeff Lewallen to the team, Jim is also recognizing that our future supply partners will need a point person whose singular goal is to commercialize our technology through the eyes of what the customer wants and needs as well as what ClearSign provides and what the supply partner provides. While I have not yet had the pleasure of meeting Jeff yet, all indications are that he is the perfect man for the job.
When I introduced Jim to you on our February call, I asked for patience. I firmly believe that Jim has accomplished more in the past three months than any of us could have reasonably expected. And for those of you interested enough to listen to this call and continue to be shareholders, I firmly believe that your patience will be rewarded.
With that, operator, let's open up the lines for questions.