Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Bigger and Kyte made house calls to solicit investment from doctors and dentist throughout socal. They must have figured they were the easiest mark for selling a fantasy story about how a magic white pipe can change the laws of thermodynamics…
Never happen…at $1 Qsep would have a market cap of 350M! Tao’s 1000 ft Tornado wall has a better shot!
Maybe go back and find out what a “hydro”(water)”static” (not moving)test is actually…they fill the vessel up with water and pressurize. Thats all it is…a freaking leak test!
The reality that management has promoted this as some major milestone defines the Qsep strategy in a nutshell. They keep hope alive without actually proving the device’s efficacy and cloud over any scientific discussion of that pesky law of Mother Nature. It’s the perfect penny for a multi pump and dump scheme that works over and over for decades.
Lol…oil was procured then “pumped into” does not constitute a field test of pumping oil “through” at volumes of 100K barrels per day! Jesus Qsep management must believe it’s investors will believe anything they print!
I remember the excuse from the crack engineering team they last time AOT failed. They said that the operators oil contained higher than expected metal content so I’m sure that issue will raise it’s heads once again. After all the device is a giant capacitor! The disclosures are also very clear, management admits they have not solved the problem or proven the efficacy of its supposed technology. Cecil must find enough dough to pay for a third party evaluation on a real pipeline next but even if reality is bent by a time warp and AOT works tomorrow , the decades of lies by management will take multi millions of dollars to offset. They simply do not have enough cash to get a program like this up and running or enough tending shares to get more…Management simply has no established marketing or sales distribution networks and frankly no experience at selling anything but convertible notes. The fact that Qsep doesn’t find a way to satisfy Temple’s licensing debt tells me they don’t even believe in the tech. Otherwise the company would protect it and not risk loosing it at the ninth hour…
Exactly if they can’t pass a static seal test then it’s game over but in typical Qsep fashion they might as well promote it as a major milestone to juice pps. It’s the way the company has operated for over two decades.Management says little about the next step which is a field test on a loop or an active line. They had to pay 500k for the last one which was unable to stay on without shorting to ground after several attempted engineering fixes. How many more shots does the company get?
Hydrostatic test means nothing it’s another ruse…when they pressurize this giant capacitor with flowing multi batched hydrocarbons it will short again. Like water, electricity always finds its way to ground!
They are paying 125k out of 187k for the fuel injection licensing maintenance fees to Temple per Year! You would think they would try to at least sell it to the auto industry, which still can sell crap products based on psycho science!
Don’t worry most will exit stage left shortly
Believes there are actually people shorting Qsep.
$29k in sales for the first half of 2022 as compared to last year of over 400k. The 2022 CGS is 8 x sales! How many “manufacturers” throw in fixed cost with a variable expense? It’s like they think nobody will look….mall attorney Fuzzy Math!
“Included in cost of goods sold are plant operation and other direct overhead expenses incurred to maintain our production facilities. These fixed carrying costs affect our gross margin more significantly at lower revenues than at our anticipated full operating activity levels. When inspecting inventory this quarter, we found some inventory was damaged, which necessitated a $68,500 reduction in inventory. Most of the product was salvageable and will be ready for resale in August 2022.”
“______________________
ORDER DECLARING REGISTRATION STATEMENT ABANDONED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
UNITED STATES OF AMERICA BEFORE THE
SECURITIES AND EXCHANGE COMMISSION August 19, 2022
Grapefruit, USA Inc. filed with the Commission a registration statement to register securities under Section 6(a) of the Securities Act of 1933. The registration statement has been on file for more than nine months and has not yet become effective.
Grapefruit USA, Inc. has failed to respond to notice under Rule 479 that the registration statement would be declared abandoned unless it was timely amended or withdrawn;
In view of the foregoing, it is ORDERED that the registration statement be declared abandoned on August 19, 2022.
For the Commission, by the Division of Corporation Finance, pursuant to delegated authority.”
More compliances issues for the Mall Lawyers playing Penny stock magnates!
Actually If you just follow the dollars that the company is raising you find the answer. Company struggles every quarter to make the minimum payments necessary to keep the lights on. They don’t pay Temple’s licensing fee which will be over 2M next year. They didn’t payoff previous CEO who they owe 200. This company now is just a writeoff machine for the wealthy and toy box for the professional pink sheet CEO..Cecil the magnificent. All hail!
Btw no sane minded human executes options that were 400% out of market when the company has clear demonstrated they are not ready for prime time. It’s take years a decade to figure a very basic engineering issue.
Yeah they filed the NT. Nothing says confidence like consecutive late filings.
It’s the same old story. Cecil raises just enough money to keep the story from croaking as he operates free and clear in his own 3500sqft office which I’m sure is being paid monthly on time. The company is insolvent!
Chances of filing a lowly 10q on time just fell exponentially!
Loan to the corp dressed up as options. Company is out of money they need cash to pay rent. Cecil and him must have a “wink wink” deal. Enjoying all the old pundits comments who have been dead wrong on this fleabag now declaring it’s a new day! Meanwhile they need 50-100K per month just to keep the lights on but who cares about the reality of a cash flow statement when you have the Giant Magic White!
It’s not emotions….it’s the assimilation of information and drawing a conclusion based on the fundamentals. TA may catch the s/t trends but the woke leaders action are not based on any real logic and I don’t see how trend analysis will ever see the disruption that’s on the horizon based on illogic actions. No iconic company panders to a very small percentage of consumers at the exclusion of most of its customer base. Disney has change the way it communicates with its base because of the risk of angering a very small but activists group. This is in my view the pure definition of insanity.
End of day tape painting is the primary strategy this company relies on to prop up its pps. Realistically the company should be sub-penny but is artificially pumped up….unfortunately water always finds its level!
Nobody shorts Qsep the margin requirement makes it’s financially a crap shoot with contact exploding dice!
Ok I’ll bite….I think this is a head fake sorry to say. Market is going to get slammed if they pass a trillion dollar spending bill with billions of pork for climate . Disney needs to pivot quickly if they don’t the brand will continue to suffer but I see no real movement there. I know you prescribe to the “I don’t care about where a stock pps has been only where it’s going “ camp but these type of events add a whole different level of testicle exposure and I never thought in my life I would have to trade Disney to just maintain value. So venting may not be productive but hey there are worst things I have done!
Painting the tape time
Not a single dollar of any licensing debt has ever been written off! Lies won’t change reality no matter how many times they are repeated.
Like I said pundits have no answer facts…pathetic.
Really as opposed to those that just drink the koolaide?
Yes he did….I never though I’d see it at Disney but they are woke as F! Then management sees fit to extend the moronic CEO’s contract in the face of overwhelming backlash. Blew out my core investment when they meddled in Florida’s parents rights bill and now only hold a relatively small position in my IRA. I might blow that out soon if it goes below 90. Disney will be case study for how to fu$k up an iconic brand in less than 24 months.
Overseas pundits don’t practice law in the US and might not understand key terms of contract law.
Qsep generates no cash yet obligates the corp to a minimum of 187K + 10% on past debt. At current levels this 170k a year just in interest!
They have been saying they will “settle” or “cure” this accumulation for over 5 years! Some might believe to cure is something you do to meat but legally it is to remove a BREACH of contract.
cure:
to correct or remove a defect that would be considered a breach by the curing party. (Not much to say here a breach of a contract is just that and by not paying Qsep is in breach thus the terms settle or cure! )
settle:
An agreement that ends a dispute and results in the voluntary dismissal of any related In business law, the payment, satisfaction, and closing of an account.
( No dispute here company agreed to the stupidest licensing deal on the planet and they just can’t afford to pay because people like Cecil bilked the company getting a salary of 350k a year and mega perks while he ran Qsep into the ground only to bail right before the TCPl disaster…springboard into two otc crap companies and now they take him back???)
Previous 10k using same language
As of December 31, 2016 and 2015, total unpaid fees due to Temple pursuant to this agreement amounted to $79,000 and $129,000, respectively, which are included as part of Accounts Payable – licensing agreement in the accompanying consolidated balance sheets. As of December 31, 2016, the entire $79,000 is deemed past due. The Company is currently in negotiations with Temple to settle this amount due.
During 2018 the Company paid Temple $10,000 and incurred an additional $230,700 of costs (including the $187,500 license fee and $43,200 of interest). As of December 31, 2018, total unpaid fees due to Temple pursuant to these agreements are $1,073,000, which are included as part of Accounts Payable – license agreements in the accompanying consolidated balance sheets. With regards to the unpaid fees to Temple, a total of $135,000 are deferred until such time the Company achieves a revenue milestone of $835,000 or upon termination of the licensing agreements and the remaining $938,000 are deemed past due. The Company is currently in negotiations with Temple to settle or cure the past due balance.
Overseas Pundits apparently do not understand the term “past due” and “cure” and substitute their version of reality as if Temple will simply write off fees due because they love Qsep. Here in the US any company that is that is not current with licensing obligation cannot sell it products without a major lawsuit from Temple which would be rubber stamped by the courts in short order oh and btw if they are so sure they can wipe licensing debt clean why not do it now instead of paying $170k in interest per year.
Pundits can’t answer with facts so they make up their own facts and just repeat the same fake answer over and over again…as if that will somehow make it true. It’s pathetic! Facts listed below:
From last 10Q:
As of March 31, 2022 and December 31, 2021, total unpaid fees due to Temple pursuant to these agreements are $1,785,000 and $1,726,000, respectively, which are included as part of Accounts Payable – license agreements in the accompanying condensed consolidated balance sheets. With regards to the unpaid fees to Temple, a total of $135,000 are deferred until such time the Company achieves a revenue milestone of $835,000 or upon termination of the licensing agreements and the remaining $1,650,000 are deemed past due. The Company is currently in discussions with Temple to settle or cure the past due balance.
From the 10k
“As of December 31, 2019, the total unpaid fees and interest due to Temple pursuant to these agreements was $1,255,000. During 2020 the Company incurred an additional $236,000 of costs, including $188,000 annual license fee and $48,000 of interest. As of December 31, 2020, total unpaid fees and interest due to Temple was $1,491,000. During 2021 the Company incurred an additional $235,000 of costs, including $187,000 annual license fee and $48,000 of interest. As of December 31, 2021, total unpaid fees and interest due to Temple was $1,726,000. With regards to the unpaid fees to Temple, a total of $135,000 are deferred until such time the Company achieves a revenue milestone, as defined, or upon termination of the licensing agreements and the remaining $1,591,000 are deemed past due. The Company intends to enter into negotiations with Temple to settle or cure the past due balance.”
Other pundits want investors to believe Temple has written off licensing debt but that would be just another in long line of material fabrications meant to deceive whatever investors might be left here.
Math McMullen, the former crack CFO. arrange a very small portion to be deferred…until production began. Quite different than written off all 1.7M collecting 10% in interest! Here the rub. Why would a company obligate itself to keep paying for the fuel injection patent which died a decade ago? The fuel injection portion is 66% of the the maintenance fees! Nope sorry there no defense for Qsep actions they just do not make sense.
The pundits want investors to believe it’s no big deal that company hasn’t paid for fees due Temple for years but it’s certainly a giant number on their disclosures collecting 10% interest! Besides if the company was actually on cusp of breaking the laws of physics they would beg borrow and steal to zero out any licensing obligation. Nothing adds up here….only promoters promoting…
MRQ Current liabilities:
Accounts payable-license agreements-past due $ 1,785,000
“We have seen before; the absence of a successful testing program can lead to an unintended failure. The follow up hydrostatic test is designed to run a fully assembled AOT at near operational conditions. Since we are not installed on a
pipeline, we will lack flow and pressure, but all other factors will be the same as a customer installation. “
Nearly operational but lacks flow and pressure and operates at a viscosity of 1cp! They say this with a straight face!!!Qsep admin must think it’s investors are so gullible that they still
cannot discern when they are getting yanked! Any cursory examination of this pseudo tech will simply show that its ineffective and any viscosity reducing effect is caused by the imparting of heat through resistive heating(aka joule heating) The whole clumping theory floated by the college professor who never brought a single commercial product to market after decades of trying is just a wild extrapolation by this so-called inventor of the tech who btw has not been active with company for years! Qsep is arrears for licensing fees to the tune of over 1M collecting 10% a year interest but they still paid in hundreds of thousands of dollars to Temple. What exactly did Qsep get for the many years of paying 187k a year just in patent maintenance fees? Of this125k is for the fuel injection patent!!!Nothing this company does makes sense!
Playbook Qsep!! They hyping a hydrostatic test as if it’s some sort of proof that the device works anywhere near what’s been promoted. It’s a freaking water leak test operating at nowhere near intended field conditions. Company jacks it’s investors around for years and then offers this up as a glimmer of hope. It’s pathetic. They need 10-15 million in financing to launch anything…now they have a few thousand dollars with no salaried engineers no sales network no strategic partner….no no no.
Ya think?
Another “kick the can down the road” fantasy ! It’s sad and pathetic but classic Kyte! As long as they are “working” on it hope is alive and the show must go on! If Aot failed because of shoddy manufacturing just imaging the potential problems with it’s mechanical and software engineering. They haven’t got past step 1 and they have blown a decade of timeline predictions….now more predictions? The 800lb Gorilla in the room is the reality that inventor once proposed ” 1000 ft walls to block tornados and magnetic carburetor attachments to increase auto mpg! None work..
Dude seriously? Even if I suspend reality for a few minutes and entertain the idea that QSeps product actually work….they would still take many years to bring that device to market.
Dude save your time…it’s no where. Only one retail store in LA area sells its flagship game-changing cream product that apparently nobody wants! All it’s other products are third party relabels. Any other result would be called out as a marketing failure or perhaps the product just sucks. I don’t get why they are now trying to get 510k approval from the FDA when they can’t even sell it legally now in Cali!!!The mall attorneys believe no one will read their filings….4 reviews after months on the market. Come on man!
https://weedmaps.com/brands/grapefruit/products/grapefruit-hourglass-thc-cannabinoids-time-release-topical-delivery-cream
Yeah cause flatlined otc chart patterns with no significant volume usually point to great companies….not!
Getting high on your own supply isn’t an investment strategy
“On March 22, 2022, the Company entered into a Memorandum of Understanding with Diagnostic Lab Corporation, Inc., a Delaware corporation (“DLC”). On June 30, 2022, the Company entered into a Binding Letter of Intent (“LOI”) with DLC. Pursuant to the LOI, the Company will acquire DLC, its IP and all of its affiliated entities for a combination of cash and a to-be-determined number of the Company’s $0.0001 par value common stock. The Company and DLC will jointly recapitalize the Company by raising $12.5 million (inclusive of a currently committed $5.5 million debt facility) which will enable the Company to construct its Good Manufacturing Practices (“cGMP”) certified Desert Hot Springs, CA, Coachillin’ Park “Mothership” facility which will house a state-of-the-art indoor cultivation, manufacturing laboratory and distribution facility. In addition, the recapitalization will fund the Company’s Hourglass 510K Project, the Hyer Medical Study of the effects of Hourglass powered products on osteoarthritis sufferers and afford sufficient working capital and interest payment reserves to allow the post-transaction Company to reach positive cash flow.”
The only reason to release this info is to juice the pps. Letter of intent is just that an intent to do something, the binding aspect only refers to trade secrets if they pull out…it’s clear that they haven’t even assigned a value! Cash plus to be determined amount of shares??? Let’s just throw darts at random valuations Lolololo!!!’ This company has no cash! How is it they can acquire anyone?
By extending the current CEO’s contract Disney’s board effectively told most of its long term shareholders to F off! Sad day for those that grew up with the brand. But it just another woke corp that lost its luster and will face the music soon when the looming economic slow down squeezes its profits to sticks and stems. Pandering to 4 % of the pop while excluding 50% is something even Jeff Bezos wouldn’t do…