Executive Summary

Q2 2019 delivered no revenue as the company focused on pre‑production ramp for Conductus HTS wire; net loss widened to $2.6M (‑$0.57/share) vs. $1.5M (‑$1.24/share) YoY; cash ended at $2.5M after a May equity raise of ~$1.6M net .
Management cited initial wire orders (including India’s Institute for Plasma Research) and began initial shipments post‑quarter; DOE NGEM Phase 2 expected to begin in Q4, positioning for “tens of kilometers” of shipments later in 2019 and ultimately “thousands” over the next few years .
Operating expenses remained elevated amid ramp preparations, driving gross losses with zero revenue; going‑concern risk persists with runway into Q4 2019 absent material revenue or new capital .
Nasdaq notified of minimum bid deficiency in July (180‑day cure period), a potential stock overhang; near‑term catalysts include DOE Phase 2 funding release and pace of commercial shipments .

What Went Well and What Went Wrong

What Went Well

“Initial orders” received for Conductus high‑performance magnet wire (IPR in India and a startup targeting fusion) broadened the early customer base; management noted increasing fusion market entrants driving demand .
Process improvements to prepare for high‑volume manufacturing were implemented, with initial deliveries against existing orders starting after quarter‑end .
DOE NGEM project expected to enter Phase 2 in Q4 alongside TECO Westinghouse, MIT, and UNT, with synergies to commercial ramp of best‑in‑class 2G HTS wire .

What Went Wrong

Zero revenue in Q2 vs. $0.79M in Q2’18; continued gross losses as fixed manufacturing costs flowed through COGS without offsetting sales .
Net loss widened YoY to $2.6M (‑$0.57/share) from $1.5M (‑$1.24/share); operating expenses rose on R&D and ramp activities .
Liquidity remains tight despite the May raise; cash declined to $2.5M with management expecting runway only into Q4’19 absent revenue inflection or additional capital; Nasdaq bid‑price notice increases listing risk .

Financial Results

Income statement and liquidity (chronological: Q4’18 → Q1’19 → Q2’19; YoY shown for Q2’18)

Metric	Q4 2018	Q1 2019	Q2 2019	Q2 2018 (YoY)
Revenue ($)	$0	$0	$0	$793,000
Net Loss ($)	$(2,262,000)	$(2,335,000)	$(2,591,000)	$(1,522,000)
Diluted EPS ($)	$(0.70)	$(0.70)	$(0.57)	$(1.24)
Total Operating Expenses ($)	$2,296,000	$2,362,000	$2,608,000	$2,338,000
Cash & Equivalents ($)	$5,616,000	$3,589,000	$2,468,000	N/A

Notes: Q1/Q2 2019 and Q4 2018 had no revenue; Q2 2018 revenue was DOE contract-related .

Revenue composition and gross loss (Q2 2019 vs. Q2 2018)

Metric	Q2 2019	Q2 2018
Commercial Product Revenue ($)	$0	$0
Government Contract Revenue ($)	$0	$793,000
Cost of Commercial Product Revenues ($)	$876,000	$368,000
Cost of Government Contract Revenues ($)	$10,000	$551,000
Gross Loss ($)	$(876,000)	$(368,000)

Balance sheet and other KPIs

KPI	Q4 2018	Q1 2019	Q2 2019
Cash & Equivalents ($)	$5,616,000	$3,589,000	$2,468,000
Working Capital ($)	$5,0xx,000 (derived in 10‑K table)	$2,310,000 (current assets–current liabilities)	$1,562,000 (current assets–current liabilities)
Basic Shares Out. (period avg)	3,230,975	3,328,605	4,510,832
Backlog (commercial) ($)	$80,000 (12/31/18)	—	$151,000; eval/qualification $123,000
Equity Raise	$7.98M net (Jul’18)	—	~$1.4M net (May 23, 2019)

Guidance Changes

No formal quantitative guidance was provided. Management directional commentary:

Metric	Period	Previous Guidance	Current Guidance	Change
Conductus wire shipments	2H 2019	Expect to start deliveries in Q2’19; focus on tens of km later in 2019	Initial deliveries commenced post‑Q2; expect “tens of kilometers” in 2H19; customers forecasting “thousands of kilometers” in coming years	Reaffirmed operational targets
DOE NGEM project	Q4 2019	Phase 2 pending	Anticipate beginning Phase 2 in Q4’19 with partners TECO Westinghouse, MIT, UNT	New timing detail

Earnings Call Themes & Trends

We identified the Q2 2019 earnings call transcript (Aug 13, 2019) but the full text was not available in our document corpus; external sources host it: Marketscreener and Seeking Alpha . The following trend table synthesizes themes from Q4’18 and Q1’19 press releases vs. Q2’19 disclosures:

Topic	Q4 2018 (Prev)	Q1 2019 (Prev)	Q2 2019 (Current)	Trend
Product/customer traction	Transition from R&D to ramp; customers moving from samples to 1000s of meters	IPR order; plan to start deliveries in Q2; aim for tens of km later in 2019	Initial orders from IPR and fusion startup; initial deliveries post‑Q2; ramp to tens of km in 2H	Improving traction; early shipments
DOE NGEM project	Completed Phase 1; ~$2M recognized through 9/30/18	Phase 2 pending	Expect Phase 2 to begin in Q4’19 with partners	Program advancing
Liquidity/runway	Cash $5.6M at 12/31/18; raised ~$10M in 2018	Cash $3.6M; zero revenue; runway into Q3’19	Cash $2.5M; runway into Q4’19; May 2019 raise	Tight but extended by raise
Listing status	—	—	Nasdaq minimum bid price notice (July 9, 2019)	New risk factor

Management Commentary

“We received initial orders for our Conductus high performance magnet wire from several customers, including the Institute for Plasma Research, India, and a startup… planning to disrupt the fusion market… We are encouraged by the traction we are gaining” — Jeff Quiram, President & CEO .
“We… implemented process improvements to prepare for our ramp to high-volume manufacturing. Subsequent to quarter end, we started delivering initial quantities… [and] expect to ship 10s of kilometers of wire later this year” .
“We anticipate… beginning in the fourth quarter Phase 2 of our Department of Energy project… focused on the deployment of components for Next Generation Electrical Machines” .

Q&A Highlights

We located the Q2 2019 earnings call transcript externally but could not retrieve the full text via our document tools; as a result, detailed Q&A themes and verbatim responses are not available for citation. Sources: Marketscreener and Seeking Alpha transcript listings .

Estimates Context

S&P Global consensus estimates were unavailable for CLRD/SCON due to missing mapping in our SPGI CIQ dataset; therefore we cannot provide S&P‑anchored estimate comparisons at this time (S&P Global data unavailable).
Publicly available source (Barchart) shows Q2’19 EPS estimate of ‑$0.67 vs. reported ‑$0.57 (implying a ~$0.10 beat) and Q1’19 estimate of ‑$0.53 vs. reported ‑$0.70 (miss) .

Where estimates may need to adjust: Given zero revenue in Q2 and commentary pointing to initial shipments starting post‑quarter with “tens of kilometers” expected in 2H19, street models (where maintained) would need to reflect limited 2019 revenue recognition timing and ongoing gross losses during ramp .

Key Takeaways for Investors

Near‑term revenue inflection hinges on execution of early Conductus shipments and conversion of evaluation orders/backlog; management disclosed initial deliveries post‑Q2 and “tens of kilometers” targeted in 2H’19 .
Liquidity is the critical constraint: $2.5M cash at Q2‑end with runway only into Q4’19 absent revenue or additional capital; watch for financings and potential dilution .
Operational leverage is negative at current volumes; fixed manufacturing overhead flowing through COGS with zero revenue drove gross losses—improving yields/throughput is essential to margin recovery .
Regulatory/listing risk: Nasdaq minimum bid price deficiency notice introduces headline risk over the 180‑day cure window .
Program milestone catalyst: DOE NGEM Phase 2 start in Q4’19 could validate technology and support commercial scaling narratives .
Position sizing should reflect binary elements: funding access, customer acceptance ramp, and timing of revenue recognition.
Trading setup: stock may be headline‑sensitive to DOE funding news, shipment updates, and any capital raise; risk/reward skewed to execution on commercialization path.

Appendix: Additional Context (Prior Quarters)

Q1 2019: No revenue; net loss $(2.3)M; plans to begin deliveries in Q2 and ramp to tens of km later in 2019; cash $3.6M .
Q4 2018: No revenue; net loss $(2.26)M; cash $5.6M; highlighted transition from performance improvement to production ramp; ~$2M DOE revenue recognized through Phase 1 .

Clearday, Inc. (CLRD)·Q2 2019 Earnings Summary