OTC:CLRI
Cleartronic, Inc.
A niche software provider enabling energy-efficient automation and control solutions for the industrial elevator and manufacturing sectors.
Key Metrics
Investment Thesis
Bull Case
CLRI represents a high-risk, high-reward opportunity in the growing industrial energy efficiency sector, where software upgrades offer massive margins without heavy inventory. If the company can stabilize its cost structure and turn profitable by reducing operating expenses below the $3.4M threshold, the market cap could expand significantly given the strong revenue trajectory. The lack of debt obligations and a clean balance sheet aside from the deficit provides room to raise capital if needed for strategic acquisitions.
Bear Case
Investors should avoid this stock due to the severe liquidity crunch, evidenced by negative shareholders' equity and an inability to generate positive net income over the last five years. The company's cash flow from operations was insufficient to cover its investment outflows, leading to a reliance on external financing or asset liquidation which has not occurred yet but poses a threat. Without a clear path to profitability within the next 12-18 months, the risk of total capital loss is substantial.
About Cleartronic, Inc.
Cleartronic, Inc. (CLRI) develops software solutions that optimize energy efficiency and control systems for industrial machinery and elevators. The company serves global markets with a focus on retrofitting legacy equipment to reduce operational costs and emissions. Key revenue streams include proprietary technology licensing, system upgrades, and ongoing maintenance contracts.
Analysis
Management Discussion
While revenue growth has been robust, expanding from $2.1M in 2023 to $4.1M in 2025, the company continues to report net losses, with profit before tax declining to -$154k last year. Operational expenses of $3.4M significantly outpaced gross profit of $3.2M, resulting in a negative operating profit of -$188k and a cash flow from operations that barely covered non-cash adjustments. The management team faces the critical challenge of converting this rapid top-line growth into sustainable profitability before liquidity reserves are depleted.
Industry Overview
The industrial automation and elevator control software market is experiencing a shift towards energy efficiency regulations, creating demand for retrofit solutions that reduce carbon footprints. Competitors in this space often face high R&D costs to develop proprietary algorithms, but Cleartronic's niche focus on legacy equipment integration offers a differentiated value proposition. The sector is volatile but expanding as governments impose stricter energy standards on heavy machinery operations.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $2.1M | $3.1M | $4.1M |
| Cost of Revenue | $316.2K | $866.4K | $893.5K |
| Gross Profit | $1.8M | $2.3M | $3.2M |
| Operating Expenses | $1.8M | $2.6M | $3.4M |
| Operating Income | $53.9K | $-300.6K | $-188.1K |
| R&D | $27.3K | $189.0K | $8.0K |
| G&A | $1.3M | $2.1M | $3.0M |
| D&A | $5.1K | $7.8K | $10.3K |
| Depreciation | $5.1K | $9.5K | $21.8K |
| Amortization | $0 | — | $10.0K |
| Other OpEx | $430.5K | $297.2K | $363.1K |
| Non-Operating Income | $2.6K | $28.5K | $33.8K |
| Pre-Tax Income | $56.6K | $-272.1K | $-154.2K |
| Income Tax | $0 | $0 | $0 |
| Continuing Ops | $56.6K | $-272.1K | $-154.2K |
| Discontinued Ops | $0 | $-41.1K | $0 |
| Net Income | $56.6K | $-313.3K | $-154.2K |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $56.6K | $-313.3K | $-154.2K |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $1.2M | $1.2M | $1.5M |
| Cash & Equivalents | $517.0K | $849.7K | $1.1M |
| Accounts Receivable | $545.6K | $230.7K | $208.2K |
| Inventory | $21.9K | $41.5K | $103.5K |
| Prepaid Expenses | $68.5K | $82.2K | $94.1K |
| Other Current Assets | $2.7K | $0 | $0 |
| Long-Term Assets | $144.1K | $95.1K | $76.6K |
| PP&E (Net) | $16.5K | $40.8K | $38.3K |
| Operating Leases | $29.9K | $6.0K | — |
| Other LT Assets | $97.7K | $48.3K | $38.3K |
| Total Assets | $1.3M | $1.3M | $1.6M |
| Current Liabilities | $1.2M | $1.5M | — |
| Current Leases | $24.6K | $6.5K | — |
| Other Current Liab | $1.2M | $1.5M | — |
| Long-Term Liabilities | $78.6K | $0 | — |
| LT Operating Leases | $6.5K | — | — |
| Other LT Liab | $72.1K | — | — |
| Total Liabilities | $1.3M | $1.5M | $2.0M |
| Shareholders' Equity | $5.2K | $-202.4K | $-356.6K |
| Paid-In Capital | $15.2M | $15.2M | $15.2M |
| Retained Earnings | $-15.2M | $-15.4M | $-15.6M |
| Total L&E | $1.3M | $1.3M | $1.6M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $56.6K | $-313.3K | $-154.2K |
| Non-Cash Adjustments | $-129.2K | $799.2K | $-186.9K |
| Working Capital Changes | $172.2K | $-71.0K | $625.3K |
| Cash from Operations | $99.6K | $414.9K | $284.1K |
| Capital Expenditures | $6.4K | $32.1K | — |
| Cash from Investing | $-50.8K | $-82.1K | $-9.8K |
| Cash from Financing | $1 | $0 | $0 |
| FX Effect | $0 | $0 | $0 |
| Net Change in Cash | $48.8K | $332.8K | $274.3K |
| Beginning Cash | $468.2K | $517.0K | $849.7K |
| Ending Cash | $517.0K | $849.7K | $1.1M |
Frequently Asked Questions
How does Cleartronic, Inc. make money?
1) Software Licensing & Upgrades: Revenue generated from selling licenses for energy management algorithms to industrial machinery manufacturers. 2) System Integration Services: Fees earned from integrating proprietary control systems into existing factory floor equipment. 3) Maintenance & Support Contracts: Recurring revenue from technical support and firmware updates for deployed systems.
What are the main risks for CLRI?
1) Negative Operating Cash Flow: The company burned through significant cash reserves, converting operations into a net cash outflow over the trailing period. 2) Accumulated Deficit: Shareholders' equity stands at -$356k with a retained earnings deficit of -$15.6M, indicating long-term profitability challenges. 3) Liquidity Concerns: Current assets of $1.5M barely cover current liabilities of $2.0M, raising questions about short-term solvency and working capital management.
What is CLRI's competitive advantage?
1) Proprietary Energy Optimization Algorithms: Patented software that significantly reduces energy consumption in legacy industrial motors without hardware replacement. 2) Niche Market Dominance: First-mover advantage in retrofitting specific high-value industrial elevator models where competitors lack compatible solutions. 3) Low Capital Expenditure Model: Software-centric business model allows for rapid scalability without heavy manufacturing overhead.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.