not at all, because if the company can't pay the coupon, it cannot be forced to pay it. I would be more inclined to believe the story if the company was able to do a debt or note offering to a serious outside (so not an affiliated insider) investors because then QSEP will have to pay the coupons religiously.

There is nothing magical about preferred shares. It effectively also means dilution for the common. And these have to issued through a private placement as well. The money runs out of money again, and has to raise capital anyhow.

seems that i don't have to eat that hat after all

assuming that they will ever get an order

what have those two posts to do with the impact of tax reform on qs energy's future? One is a general press release and the other is simply an overview of insider buying.

Great, but no impact whatsoever on QS Energy's future.

yet month after month goes by without a deal, while shareholders are losing a percentage of their ownership in the business every month.

The success of the AOT has nothing to do with the Keystone. If the technology is so revolutionary, Transcanada should be able to use it in different areas as well even if the deal was not approved. And I see no.deal in the pipelines, only more dilution for existing shareholders

How do you even know that the selling shareholder is from overseas?

Not that it would happen. But hypothetically, this is not even a great model, since QSEP would have to opt for a very capital intensive business model and that merely generates too little free cash flow and causes Return on investment to be too low, and would warrant a relatively low multiple

They can state that they went there for seeking customers. They could just as well sit at a resort and drink martini's with scantily clad women, and investors wouldn't be the wiser. This company has far too much overhead and doesn't seem to reign in costs when cash flows are still a pipe dream.

I actually own several office buildings, and several distribution/production locations in my real estate portfolio that are much nicer looking. If I could spin around a story so convincingly around these buildings that I could create millions out of thin air, I would do so.

The onus of proving AOT's commercial viability is not on the shorts, but on the longs. And the long history of potential clients not following through on any order, not even new test trials, should give any potential investor pause.

If someone would approach you personally to invest in a private company with an unproven technology that has spent million in overhead over the years, and virtually nothing in R&D, would you do it? You can only participate in this investment at a $50 million valuation. Any serious investor would say, are you out of your mind? I might take a gamble, but I might participate at a $3 million valuation. This company would not even find an investor if they showed up on Shark Tank

I don't have to prove a negative. There is nothing concrete for years that a deal is in the making. I would be very careful of your money when you believe a management team instantly. If you looked at the board of Enron, Tyco, Lehman Brothers etc, you would have been impressed by the resume of board members as well, so that is most definitely not a panacea for success.

The obvious answer is of course that they want to signal to shareholders that something is happening, even though nothing happened.

So they have built a shed at that "headquarters" in Texas, which in itself is already a sorry excuse of an office when you google map search it. If investors are so gullible that every line item is spun into gold, then I could understand why this is so great. Nothing in the 10-q gives me any comfort. Transcanada is out if you read the fine print, and Kinder Morgan is not coming across, even though the language is ambiguous to allow an opening. The cash burn continues. As long as they are able to sell warrants and convertible notes, this charade will continue, but it will crash down, because AOT deals are not coming.

I don't consider even 50k or $100k to be a fortune for such a groundbreaking technology. And some of that is not an outright investment, but merely the conversion of a note or the exercise of options.

These directors that have bought some convertible notes in the past are not even shrewd investors. If I had given the company a convertible note, I would have demanded that it was convertible in a fixed dollar amount of shares instead of a fixed number of shares. That way, I would have been protected against dilution regardless of the share price.

I would spent a little over $10k if it would give the market such confidence that the value of my holdings would go up 10%, making it a valuable transaction on market. All these minor transactions are peanuts.

They are late with the 10-Q this year. Other years, 10-q was out on November 9th.

it only matters when they order. And if they are silent for three years without any new trial period, that speaks volumes to me.

If you take out a trial period on a website for a month at a discounted price, doesn't mean that you are interested into becoming a long term customer. The monies that these companies have paid to try it out are rounding errors to their budgets.

Those particular companies haven't paid a dime for a very long time. At a certain point, you simply have to conclude that there is no there there. How long do you want to wait for a KM order? One more year, two years, a decade? I personally think that they put KM people on the board to suggest that KM is interested (both are there on their personal title and not in the capacity of KM, which would be a big difference)/

They say they have fixed it. The 10-qs and 10-ks show very little evidence of any real spending on that. And the fact that there is no commercial interest for years now, goes a long way to prove my point. And the original technical validity of the technology has never been proven.

If only they had spent some money of R&D in the last 10 years. If you look at the cumulative R&D investment over that period, it is impossible to come up with a revolutionary technology. Nor have they spend any money on R&D after the Kinder Morgan and Transcanada trials failed, so I don't see why the AOT would suddenly be effective without any spending.

There is no interest without orders. And if you think orders are a dirty term, not even trial periods. KM hasn't even commenced a new trial period after 3 years, so not proven at all. Jason Lane so far sounds like an amateur.

if that KM deal doesn't materialize soon, all the bulls on this website can no longer refer to the insider buyer and the fact that KM Insiders are on the board as an argument to support the share price.

Actually it does matter. Number of shares is meaningless, but the share price is. If number of shares double and nothing happened to the business, the price should decline by 50%.

Sales are not even the solution, you think it its. Even if they sell a few AOTs, you get a fairly small revenue stream that wouldn't even translate into positive earnings and cash flow, so the cash burn would continue. Sales are so far away, since they can't even close Kinder Morgan as a client. Hack, they can't get them to test the AOT further within two years.

Public outcry will be worse when the 10-q comes in and shows the continuous cash burn and the lack of R&D investment without any progress.

This company has made outlandish claims for a decade. It doesnt'have to be a fortune 500 for his claim to be valid. Investors are putting a $50 million market cap on this company. I would give you more leeway if the stock was trading at $0.01, but investors are valuing the company as if it has a full order portfolio and actually showing profits.

And the universe was created by god.

Even if sales eventually materialize (laughing out loud writing this), current shareholders are diluted by such an extent that their IRR on their investment is negative.

So true

Basically, nothing happened.

No AOT got sold, and there is no mentioning of further tests by Kinder Morgan or Transcanada. They are laying the groundwork for the next product that they are trying to sell shareholders, and potential customers in the future.

This is such a nothing burger and in the meanwhile dilution is the word.

That is true, I have far lower margin requirements than 250k, so at 250k it doesn't make a lot of sense. However, a lack of buyers can also cause the price to plunge. Often times, it is not the short seller that drives the price lower, but lack of incremental buyers.

That is why all the rise and fall now is meaningless noise. I am not cheering because the price is falling now. A lot more retail investors have been piling in, so when the disappointment comes when management remains silent about the lack of AOT orders, the decline can be swift and profound.

The SEC has no expertise whether those results are legit or even commercially interesting. They don't have time and man power or expertise for that. Yes, the results have been added but it doesn't prove anything about the commercial viability of the AOT.

Hey, they didn't even catch Madoff.

Yes, that is why this is almost fraudulent. The word in the statement is "considers moving". They haven't taken any action for years to even do more testing, let alone to order one machine.

It does not. He doesn't represent KM. He is there on his own title. The company has shown no interest since the original trial ended.

how is that any proof whatsoever. It just states that a few directors spend a nominal sum buying stock or converting their options. It has no bearing on Jason Lane's success or abilities whatsoever.

it is not proof of anything. It doesn't show how wealthy Jason Lane is, nor that the AOT deals are around the corner. The company hasn't provided any filing or update since the summer. Running a public company is not like preparing a surprise party. If there is significant good or bad news, the company ought to inform its shareholders. I am looking forward to the 10-Q in the beginning of November.

And the $5 million lawsuit is not going away either.

But nobody brings any proof that he is so successful either. I can't find any evidence for that, aside from a few sources that he sold some acreage in the past, but most of that belongs to limited partners (and we don't even know whether they made any money on his dealings). The location and look of the office suggest that we shouldn't overestimate his net worth.


And yes, they have run out of cash several times, were it not for the fact that management keeps raising new cash to keep this scheme going. If it was a private company, it would have gone bankrupt many years ago.

They haven't moved the AOT, nor is KM paying any money for any lease. So no, there is nothing coming.