|
Washington
|
| |
3823
|
| |
26-2056298
|
|
|
(State or other jurisdiction of
incorporation or organization) |
| |
(Primary Standard Industrial
Classification Code Number) |
| |
(I.R.S. Employer Identification No.)
|
|
|
Sonya Erickson
Alan Hambelton Cooley LLP 1700 Seventh Avenue Suite 1900 Seattle, Washington 98101 (206) 452-8700 |
| |
Joseph Smith
Robert Charron Michael Nertney Ellenoff Grossman & Schole LLP 1345 Avenue of the Americas New York, New York 10105 (212) 370-1300 |
|
| Large accelerated filer ☐ | | | Accelerated filer ☐ | |
| Non-accelerated filer ☐ | | | Smaller reporting company ☒ | |
|
(Do not check if a smaller reporting company)
|
| | Emerging growth company ☒ | |
|
Shares of Common Stock
|
| |||
|
Warrants to Purchase
|
| |
Shares of Common Stock
|
|
| | |
Per Share
and Related Warrant |
| |
Total
|
| ||||||
Public offering price
(1)
|
| | | $ | | | | | $ | | | ||
Underwriting discounts and commissions
(2)(3)
|
| | | $ | | | | | | $ | | | |
Proceeds to us (before expenses)
|
| | | $ | | | | | | $ | | | |
| | |
Page
|
| |||
| | | | 1 | | | |
| | | | 8 | | | |
| | | | 16 | | | |
| | | | 17 | | | |
| | | | 18 | | | |
| | | | 19 | | | |
| | | | 20 | | | |
| | | | 21 | | | |
| | | | 23 | | | |
| | | | 32 | | | |
| | | | 38 | | | |
| | | | 40 | | | |
| | | | 40 | | | |
| | | | 41 | | | |
| | | | 41 | | | |
| | | | 42 | | |
|
|
| |
|
|
|
|
| |
|
|
|
Non-attainment areas under the 1997 limit of 84 ppb
Source: EPA, August 2016 |
| |
Projected non-attainment areas under the 2015 limit of 70 ppb
Source: URS, August 2015 |
|
| | |
For the Years Ended
December 31, |
| |
For the Nine Months Ended
September 30, (unaudited) |
| ||||||||||||||||||
| | |
2016
|
| |
2015
|
| |
2017
|
| |
2016
|
| ||||||||||||
Sales
|
| | | $ | 621,000 | | | | | $ | 61,000 | | | | | $ | 360,000 | | | | | $ | 260,000 | | |
Cost of goods sold
|
| | | | 485,000 | | | | | | 50,000 | | | | | | 266,000 | | | | | | 47,000 | | |
Gross profit
|
| | | | 136,000 | | | | | | 11,000 | | | | | | 94,000 | | | | | | 213,000 | | |
Operating Expenses:
|
| | | | | ||||||||||||||||||||
Research and Development
|
| | | | 4,831,000 | | | | | | 2,932,000 | | | | | | 3,644,000 | | | | | | 3,767,000 | | |
General and Administrative
|
| | | | 6,510,000 | | | | | | 5,021,000 | | | | | | 3,569,000 | | | | | | 5,342,000 | | |
Total Operating Expenses
|
| | | | 11,341,000 | | | | | | 7,953,000 | | | | | | 7,213,000 | | | | | | 9,109,000 | | |
Other Income
|
| | | | 32,000 | | | | | | 44,000 | | | | | | 32,000 | | | | | | 30,000 | | |
Net loss
|
| | | $ | (11,173,000 ) | | | | | $ | (7,898,000 ) | | | | | $ | (7,087,000 ) | | | | | $ | (8,866,000 ) | | |
Net loss per common share, basic and diluted
|
| | | $ | (0.86 ) | | | | | $ | (0.63 ) | | | | | $ | (0.46 ) | | | | | $ | (0.69 ) | | |
Weighted average common shares outstanding,
basic and diluted |
| | | | 12,928,715 | | | | | | 12,461,515 | | | | | | 15,358,655 | | | | | | 12,914,665 | | |
|
| | |
December 31
|
| |
September 30,
2017 |
| ||||||||||||
| | |
2016
|
| |
2015
|
| ||||||||||||
Working capital
|
| | | $ | 355,000 | | | | | $ | 9,564,000 | | | | | $ | 2,691,000 | | |
Total assets
|
| | | | 3,786,000 | | | | | | 14,202,000 | | | | | | 6,612,000 | | |
Cash and cash equivalents
|
| | | | 1,259,000 | | | | | | 10,985,000 | | | | | | 3,511,000 | | |
Total shareholders’ equity
|
| | | | 2,244,000 | | | | | | 12,578,000 | | | | | | 4,856,000 | | |
| | |
Price Ranges
|
| |||||||||
| | |
High
|
| |
Low
|
| ||||||
Fiscal Year Ended December 31, 2017 (through November 8, 2017) | | | | ||||||||||
First Quarter
|
| | | $ | 4.55 | | | | | $ | 3.05 | | |
Second Quarter
|
| | | | 4.25 | | | | | | 3.30 | | |
Third Quarter
|
| | | | 4.00 | | | | | | 2.90 | | |
Fourth Quarter
|
| | | | 3.55 | | | | | | 3.00 | | |
Fiscal Year Ended December 31, 2016 | | | | ||||||||||
First Quarter
|
| | | $ | 4.90 | | | | | $ | 2.98 | | |
Second Quarter
|
| | | | 5.28 | | | | | | 3.75 | | |
Third Quarter
|
| | | | 6.09 | | | | | | 4.14 | | |
Fourth Quarter
|
| | | | 6.08 | | | | | | 3.40 | | |
Fiscal Year Ended December 31, 2015 | | | | ||||||||||
First Quarter
|
| | | $ | 7.62 | | | | | $ | 4.97 | | |
Second Quarter
|
| | | | 5.90 | | | | | | 4.74 | | |
Third Quarter
|
| | | | 7.23 | | | | | | 3.44 | | |
Fourth Quarter
|
| | | | 6.41 | | | | | | 4.44 | | |
| | |
As of September 30, 2017
|
| |||||||||
| | |
(in thousands, except per share data)
|
| |||||||||
| | |
Actual
(1)
|
| |
As Adjusted
(2)
|
| ||||||
| | |
(unaudited)
|
| | ||||||||
Cash and cash equivalents
|
| | | $ | 3,511,000 | | | | | $ | | | |
Shareholders’ equity: | | | | ||||||||||
Common stock, par value $0.0001 per share: 62,500,000 shares of common stock authorized; 15,606,353 issued and outstanding at September 30, 2017
|
| | | | 2,000 | | | | |||||
Additional paid in capital
|
| | | | 52,272,000 | | | | |||||
Accumulated deficit
|
| | | | (47,418,000 ) | | | | | | | | |
Total shareholders’ equity
|
| | | $ | 4,856,000 | | | | | $ | | | |
Total capitalization
|
| | | $ | 6,612,000 | | | | | $ | | | |
|
|
Assumed combined public offering price per share and related warrant
|
| | | | | | | | | $ | | | |
|
Net tangible book value per share as of September 30, 2017
|
| | | $ | 0.19 | | | | | | | | |
|
Increase per share attributable to new investors in this offering
|
| | | $ | | | | | |||||
|
Adjusted net tangible book value per share after this offering
|
| | | | | | | | | $ | | | |
|
Dilution in net tangible book value per share to new investors
|
| | | | | | | | | $ | | | |
|
|
| |
|
|
|
Non-attainment areas under the 1997 limit of 84 ppb
Source: EPA, August 2016 |
| |
Projected non-attainment areas under the 2015 limit of 70 ppb
Source: URS, August 2015 |
|
Underwriter
|
| |
Number of
Shares |
| |
Number of
Warrants |
| ||||||
Ladenburg Thalmann & Co. Inc.
|
| | | | | | | | | | | | |
Total | | | | | | | | | | | | ||
|
| | |
Per
Share (1) |
| |
Per
Warrant (1) |
| |
Total
(1)
|
|
Public offering price
|
| | | | ||||||
Underwriting discount to be paid to the underwriters by us (7.0%)
(2)
|
| | | | ||||||
Proceeds to us (before expenses)
|
| | | |
|
SEC Filing Fee
|
| | | $ | 2,864 | | |
|
FINRA Fee
|
| | | $ | 3,950 | | |
|
Printing Expenses*
|
| | | $ | 15,000 | | |
|
Accounting Fees and Expenses*
|
| | | $ | 15,000 | | |
|
Legal Fees and Expenses*
|
| | | $ | 225,000 | | |
|
Transfer Agent and Registrar Expenses*
|
| | | $ | 5,000 | | |
|
Miscellaneous*
|
| | | $ | 8,186 | | |
|
Total
|
| | | $ | 275,000 | | |
|
Exhibit
No. |
| |
Description of Document
|
|
1.1 | | | Form of Underwriting Agreement** | |
3.1 | | | Articles of Incorporation of ClearSign Combustion Corporation, amended on February 2, 2011 (1) | |
3.2 | | | Articles of Amendment to Articles of Incorporation of ClearSign Combustion Corporation filed on December 22, 2011 (1) | |
3.3 | | | Bylaws of ClearSign Combustion Corporation (2) | |
4.1 | | | Form of Common Stock Certificate (3) | |
4.2 | | | Common Stock Purchase Warrant, issued to MDB Capital Group LLC on April 24, 2012 (1) | |
| | | | CLEARSIGN COMBUSTION CORPORATION | | |||
| | | | By: | | | /s/ Stephen E. Pirnat | |
| | | | | | | Stephen E. Pirnat | |
| | | | | | | Chief Executive Officer | |
| Dated: November 9, 2017 | | | /s/ Stephen E. Pirnat | |
| | | | Stephen E. Pirnat | |
| | | | Chief Executive Officer and Director | |
| | | | ||
| Dated: November 9, 2017 | | | /s/ Brian G. Fike | |
| | | | Brian G. Fike | |
| | | | Interim Chief Financial Officer | |
| | | | ||
| Dated: November 9, 2017 | | | /s/ Jeffrey L. Ott | |
| | | | Jeffrey L. Ott, Director | |
| | | | ||
| Dated: November 9, 2017 | | | /s/ Scott P. Isaacson | |
| | | | Scott P. Isaacson, Director | |
| | | | ||
| Dated: November 9, 2017 | | | /s/ Lon E. Bell | |
| | | | Lon E. Bell, Ph.D., Director | |
Exhibit 23.1
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors
ClearSign Combustion Corporation
We hereby consent to the use in the Prospectus constituting a part of this Form S-1 Registration Statement of our report dated February 14, 2017, relating to the balance sheets of ClearSign Combustion Corporation as of December 31, 2016 and 2015, and the related statements of operations, stockholders’ equity, and cash flows for each of the years in the two-year period ended December 31, 2016, which is incorporated by reference in the Prospectus.
We also consent to the reference to us under the caption “Experts” in the Prospectus.
/s/ Gumbiner Savett Inc.
November 9, 2017
Santa Monica, California