Executive Summary

Q4 2019 revenue was $388,000 (primarily DOE NGEM project $383,000) with net loss of $1.928M ($0.12 per share), versus no revenue and a $2.262M loss ($0.70) in Q4 2018; the company pivoted to a stock-for-stock merger with Clearday announced March 3, 2020, and began selling wire-related assets/IP to fund closing .
Operating focus shifted from scaling Conductus HTS wire to completing the Clearday merger; management expects ~$1.1M of asset-sale proceeds plus existing resources to be sufficient to close .
Liquidity remained tight: cash was $713,000 at year-end (12/31/19) vs $275,000 at 9/28/19; Q3 commentary noted a $3.0M October 2019 offering that still left runway into Q1 2020 only .
No formal guidance or Wall Street consensus available for Q4 2019; near-term stock catalysts center on S-4 effectiveness, shareholder approvals, asset-sale proceeds, and merger close/process (including any Nasdaq listing outcomes) .

What Went Well and What Went Wrong

What Went Well
- Revenue reappeared: Q4 total revenue $388,000, virtually all from DOE NGEM project ($383,000), and net loss narrowed YoY to $1.9M from $2.3M .
- Strategic pivot with defined path: announced definitive merger with Clearday to monetize cryogenic cooler technology and re-focus the company .
- Post-quarter liquidity actions: ~$1.1M in equipment/IP sales expected to fund merger completion; cash balance improved sequentially to $713,000 at 12/31/19 from $275,000 at 9/28/19 .
What Went Wrong
- Minimal commercial traction: only $5,000 commercial revenue in Q4; prior quarters had either DOE-only revenue ($157,000 in Q3) or no revenue (Q2) .
- Continued heavy losses versus revenue base: Q4 net loss margin was approximately -497.9%; Q3 loss margin was approximately -1512.7% given limited revenue .
- Execution and capacity challenges prior to pivot: management in Q3 cited difficulty meeting current customer commitments even after initial wire deliveries; strategic alternatives were being explored due to cash and operational constraints .

Financial Results

Summary performance (oldest → newest):

Metric	Q4 2018	Q2 2019	Q3 2019	Q4 2019
Revenue ($USD)	$0	$0	$157,000	$388,000
Net Income (Loss) ($USD)	$(2,262,000)	$(2,591,000)	$(2,375,000)	$(1,928,000)
Diluted EPS ($)	$(0.70)	$(0.57)	$(0.43)	$(0.12)
Net Income Margin (%)	N/M (no revenue)	N/M (no revenue)	-1512.7% (calc. from revenue/loss)	-496.9% (calc. from revenue/loss)

Revenue breakdown:

Revenue Detail ($USD)	Q2 2019	Q3 2019	Q4 2019
Government Contract Revenues	$0	$157,000	$383,000
Commercial Product Revenues	$0	$0	$5,000
Total Revenues	$0	$157,000	$388,000

Operating expenses (select):

Opex ($USD)	Q2 2019	Q3 2019	Q4 2019
Research & Development	$628,000	$622,000	$478,000
Selling, General & Admin	$1,094,000	$966,000	$996,000

Liquidity:

Liquidity Snapshot	Q2 2019 (6/29/19)	Q3 2019 (9/28/19)	Q4 2019 (12/31/19)
Cash & Cash Equivalents ($USD)	$2,468,000	$275,000	$713,000

Estimates vs. actuals (S&P Global consensus unavailable):

Q4 2019	Consensus (S&P Global)	Actual	Beat/Miss
Revenue	N/A (unavailable)	$388,000	N/A
Diluted EPS	N/A (unavailable)	$(0.12)	N/A

Note: We attempted to retrieve S&P Global consensus; mapping for CLRD was unavailable, so consensus could not be obtained.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Company Guidance	N/A	N/A	No financial guidance provided; focus on merger completion with Clearday	Maintained “no formal guidance” posture

Additional color:

Expected cash inflow: ~$1.1M from sales of production/R&D/testing equipment and selected IP primarily tied to superconducting wire initiative to support merger closing .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 2019)	Previous Mentions (Q3 2019)	Current Period (Q4 2019)	Trend
HTS wire production ramp	Initial orders; process improvements; expectation to ship “tens of kilometers” later in 2019	Initial deliveries begun; challenges meeting commitments; focus on completing current demand	Monetization pivot; selling equipment/IP; shift focus to Clearday merger	From ramp plans → execution challenges → strategic exit/pivot
DOE NGEM project	Anticipated start of Phase 2 in Q4; synergy with magnet wire scale-up	Reengaged efforts with partners (TECO Westinghouse, MIT, UNT)	$383,000 of Q4 revenue from DOE NGEM	DOE became core revenue source as commercial ramp stalled
Strategic alternatives / M&A	Not discussed in Q2 PR	Board exploring strategic alternatives (investment, merger, or sale)	Definitive merger with Clearday; path to closing outlined	Alternatives explored → signed merger
Liquidity/capital	$2.5M cash at Q2; $1.7M May offering	$275k cash at Q3; $3.0M Oct offering; runway into Q1’20	$713k cash at YE; ~$1.1M asset-sale proceeds expected	Tight liquidity; bridge financing/asset monetization to close merger
IP/technology	Preparing for high-volume manufacturing	New patent to enhance magnet wire performance	Strategy to monetize cryogenic cooler tech via merger	Execution emphasis shifted to monetization via M&A

Management Commentary

“We believe the Clearday transaction has the potential to monetize our cryogenic cooler technology for shareholders… as we complete the sales of equipment and selected intellectual property… we shift our complete focus to successfully finalizing the merger with Clearday.” – Jeff Quiram, President & CEO (Q4 PR) .
“We started delivering initial quantities of our Conductus high performance magnet wire to several customers but we remain challenged to meet current customer commitments.” – Jeff Quiram (Q3 PR) .
“We received initial orders… and implemented process improvements to prepare for our ramp to high-volume manufacturing… Many industry experts believe high performance magnet wire will enable next generation Tokamak devices.” (Q2 PR) .

Q&A Highlights

No Q4 2019 earnings call transcript was found; no Q&A highlights available. We searched for “earnings-call-transcript” for CLRD between 2019-10-01 and 2020-04-30 and found none. A Q3 call was scheduled (Nov 12, 2019), but no transcript is present in the document set .

Estimates Context

Wall Street consensus via S&P Global: Unavailable for CLRD/SCON for the periods requested due to missing Capital IQ mapping; thus, beat/miss analysis versus consensus cannot be provided for Q4 2019, FY 2019, Q3 2019, or Q2 2019. We attempted to fetch “Primary EPS Consensus Mean” and “Revenue Consensus Mean” but received a mapping error (consensus unavailable).

Key Takeaways for Investors

Revenue returned in Q4 driven by DOE funding ($383k of $388k), but commercial revenue remained de minimis ($5k), underscoring the decision to pivot away from the HTS wire initiative .
Losses narrowed YoY in Q4 ($1.928M, $(0.12) vs $2.262M, $(0.70)), but remain large relative to revenue; net margin was approximately -497.9% in Q4 .
Liquidity is the critical near-term variable: $713k cash at 12/31/19, ~$1.1M asset-sale proceeds expected, following a $3.0M Oct 2019 offering that still left limited operating runway into Q1 2020; merger-close timing will likely dictate funding needs .
The merger with Clearday reframes the equity story from superconducting wire to “longevity care and wellness services,” with expected 96.34% pro forma ownership to pre-merger Clearday holders based on illustrative exchange ratio terms; legacy shareholders at ~3.66% fully diluted (subject to final exchange mechanics) .
Stock catalysts: S-4 effectiveness and SEC clearance, shareholder approvals (both parties), asset monetization proceeds arrival, Nasdaq listing determinations and reverse split mechanics, and final merger close .
Absent consensus estimates and formal guidance, trading will likely track process milestones and liquidity updates rather than earnings metrics; any delays or changes in merger terms would be material .

Supporting sources: Q4 results and YE balance sheet ; Q3 results and liquidity commentary ; Q2 results and liquidity ; merger terms and process .

Clearday, Inc. (CLRD)·Q4 2019 Earnings Summary