ITEM 2.06

On September 25, 2019, ClearSign Combustion Corporation (the “Company”) determined to write-off certain patents included in its patent portfolio based on management’s analysis of both the cost of maintaining the patents and the likelihood that the inventions described would not have significant value in the Company’s future technology strategy.

In conjunction with the decision to write-off the patents, the Company anticipates that it will be required under generally accepted accounting principles to incur a non-cash impairment charge of an estimated $337,302 in its statement of operations for the three and nine months ended September 30, 2019. Other than expenses incurred for maintenance of the patents but not yet paid, the Company does not expect future cash expenditures relating to the write-off.

Forward-Looking Statements

This report contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor created by such sections and other applicable laws. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, such statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by the forward-looking statements. Forward-looking statements often contain words such as “anticipate,” “intend,” “plan,” “will,” “would,” “estimate,” “expect,” “believe,” “target,” “indicative,” “preliminary,” or “potential.”  Forward-looking statements in this report include the Company’s estimate of the non-cash impairment charge.  The Company does not undertake any obligation to release publicly revisions to any “forward-looking statement,” including, without limitation, to reflect events or circumstances after the date of this report or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.


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ClearSign Combustion Corporation is engaged in designing and developing technologies for managing various performance characteristics of combustion systems, such as emission and operational performance, and energy efficiency. The Company’s Duplex and Electrodynamic Combustion Control (ECC) platform technologies are used to manage the performance of combustion systems in a range of markets, including the refinery, petrochemical, chemical, power and commercial boiler industries. The Duplex burner technology typically consists of a traditional industrial burner and a porous ceramic tile. The ECC technology includes various components, such as a computer, standard software delivering algorithms to a power amplifier (resident outside the combustion chamber) and electrodes inside the combustion chamber. The ECC technology introduces a computer-controlled high voltage electric field into a combustion volume in order to control gas-phase chemical reactions.

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