Telix QSAM Inc (QSAM)

[BuddyWhazhizname]

Q2Power lays off R&D staff.

New PR: http://www.marketwired.com/press-release/q2power-provides-information-on-its-business-extension-into-composting-engineered-soils-otcqb-qpwr-2136104.htm

The Company has also taken steps to reduce its R&D overhead over the previous weeks, including scaling back personnel, to dedicate more resources to this plan which is expected to get Q2Power to revenue and profitability quicker and increase shareholder value over the short and long term.

"We believe there is value to combining our proprietary technology with a low-tech cash flowing business like composting and sustainable soils manufacturing. As we grow the revenue side of our business, we can dedicate more resources to important long-term R&D programs," Mr. Nelson added.

Translation: The one system they sold to their one customer in Florida that was supposed to have been delivered a month ago doesn't work and hasn't earned any progress payments. Q2Power has run out of money for payroll, so their only tangible activity, R&D, has been eliminated.

So much for the predictions of their electrical generators going into production in 2016.

Q2Power's expansion strategy is supported by a Research & Markets report published May 2016 stating that the global engineered soils market is projected to reach $7.8 Billion by 2021, at a CAGR of 6.7% from 2016 to 2021.

Well established firms currently meet the needs of this market, and growth is only predicted to be 6.7% What established firm would have trouble growing at that rate? The U.S. growth rate isn't cited in this PR, which suggests it's even lower than 6.7%.

So just how is a company with no assets, no capital, no relevant facilities, no proprietary technology, no expertise and no economies of scale, but lots of debt, going to get into this industry and become profitable in the short term?

In the last month they haven't even finalized their agreement with ERTH Products, a composting company that may have all of two employees.