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Proves nothing...mother nature has spoken and the news is all bad. If company product efficacy was remotely correlated with his or any other insider purchase then the company would have scored a long long time ago in a galaxy far far away.
Doctors typically worst investors on the planet. Besides company needs
5 -10M not a measly 30 days of operating cash!
As I posted in June ..QSEP cash burn has accelerated. This current insider buy is to keep them operating but 200K buys only a month. With added expenses and consultants to feed they need multimillions. Where is that plan?
Qsep is adept at walking the thin line of legitimacy and outright deception. Obviously they understand how to gin up excitement and they have the movie props and the paid consultants to look like they actually are a contender....sadly investors seem to ignore the deluge of failed timelines and blown tests and never seem to question the years of BS they have been fed! As long as investors are willing to be swayed by the ongoing salesman’s puffery, then Qsep can ink by.
Industrial power supplies are pretty much state of art and available in all configurations. What is missing is Qsep and it’s products have no control system which would be software driven and networked with the power supply which would feed the anode cathode electric field and adjust 100 times a second. Watch as Qsep now pivots to having to design and engineering a new power supply and control system but assure everyone they are cusp!It’ an easy call to make.
The fun never stops at the QSEP fantasy factory!
Recent release is just another of a long line of salesman puffery. Latest consultant willing to lay down another opaque smoke screen with his explanation of the dynamics of why Aot needs a complete internal re-engineering. Lol! Nobody is to going buy this garbage based a paid consultant view. Obviously Qsep is very good at getting paid third parties to play ball. Another example of an OTC company trying to buy it’s legitimacy.
Company knew it’s device was not ready for testing..yet they dangled a carrot by saying they repaired the unit and ordered another but as we find out now the internal grid pack and God knows what else needs to be completely redesigned. It’s absurd how many hall passes this company gets! Now because the pps is being hammered Qsep, keeping with its historic playbook, continues with its meaningless releases in a desperate attempt to stem the blood flow.
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I'm happy to see the limited results they are getting from this inferior power supply are giving them results consistent with lab results. A very good sign.
“
Imagine that! Qsep gets “limited results” from an “inferior”(I thought it was broke) power supply and its immediately spun as a positive. The company has basically told everyone willing to read the disclosures that the internal grid pack (anode/cathode configuration) needs redesigning which generally means they won’t say much until well into the 4th Q.
Lol! That’s funny. Everything Qsep has claimed has swirled down the drain yet investors are chastised for questioning why the company cannot gets it act together. This is simply water seeking its level and all those end of day puff paints are now collapsing into a more realistic estimation of this companies prospects. Nobody gives two rats about “big investors”. That’s been boosted about for a decade and has little correlation with the scientific efficacy of Qsep claims.
That is because QSep has never followed any sensible methodology to test its devices, other than relying 100% on Tao's designs and theories. Think about it...Tao claims a viscous crude oil with potential varying composition within different batches suddenly behaves as Rheological fluid whose components have been engineered to change its viscosity when a field is applied. While these fluids do exist in industry they are predominately the positive effect i.e. when the electric field is applied viscosity increases. This is used for dampers shocks etc. The negative effect has been observed with very limited success and I have not seen any industrial applications to date. The idea that crude can behave in this manner either static or while flowing is just not plausible or it would have been proven out many years ago.
Temple gets paid as well...and now they have a 10% interest penalty that sweetens the pot every year!
“Easily corrected” as in the power issues with Tcpl and Kmcc! Qsep went back and fourth announcing improved insulation and reworked internal configuration but still can’t make a 20 yard field goal to put any points on the board.
“However, based on our most recent laboratory tests, we believe it is likely the repaired power supply will be insufficient to treat crude oil; in which case we will use in-field operations to test, confirm and supplement our laboratory test results.”
In other words...Qsep already knows the ps is not going to do the job and is prepping it’s faithful for the next round of delays and excuses!
That would be the logical conclusion but it seems the only real magic is QSEPS ability to skirt the line as to proving out its implied IP and it has released few of any meaningful technical disclosures or even a simple marketing line card that reports what AOT actually does and how much it costs to do so! That will be the first question a potential client will ask. Instead, AOT operating power levels has to to be deciphered from the inventor's quotes in APS presentations. My personal favorite:
http://www.sciencedaily.com/releases/2015/02/150227112751.htm
Another Qsep convoluted excuse that all have heard before! It’s just too convenient to say it’s the fault of a third party “specially designed” power supply damaged in transit than to say hey we suck at electrical engineering. People are acting as if a power supply is a PLC and actually controls the magic pipe. It doesn’t ...it provides power with certain tolerances. An integrated control system would be responsible for overall control but if there is actually such a controller then QSEP would not have the handy excuse of bad luck and blaming the power supply manufacture or transport company for breaking the device.
In business, luck is a function of how management executes its directives. Quality control, electrical and mechanical engineering is all part of deal.
Qsep must be:
“ born under a bad sign”
Qsep Facts...
2019Q2
Repairs to the power supply were completed in early August 2019. We plan to install the repaired power supply and test the AOT unit at higher power in August 2019; however, based on recent laboratory tests, we expect conductivity of the crude oil to inhibit the AOT’s ability to reach sufficient voltage to fully treat the crude oil. We are also working with the power supply vendor to assess power supply configurations to increase the power output and to match a new power supply to the design of a new grid pack and the target oil. We are also working on modifications to the internal configuration of the AOT grid pack to reduce power requirements when treating highly conductive crude oil. Once we complete the next round of full-scale testing at the demonstration site, we will determine if modifications are required. Our next course of action will be determined at that time. Based on current plans, required modifications, if any, should be installed and ready for testing in the fourth quarter of 2019.
Once the corrective actions discussed above are achieved, our plans moving forward are centered on achieving commercial adoption of our AOT device. Over the past year, we have met with many industry executives who expressed interest in AOT subject to seeing and evaluating commercial operations and data. Assuming successful operations, we believe the demonstration AOT project should provide data requested such as real-time changes in viscosity, pipeline pressure drop reduction and increases in pipeline operating flowrates. All collected data will be normalized such that it can be used to evaluate the financial and operational benefits across a wide range of commercial operating scenarios without disclosing confidential details of our demonstration partner’s operations. We believe that real-world data from our demonstration AOT project may be used to accelerate our desire to achieve commercial adoption of our AOT technology, positioning us to re-engage with industry executives, targeting sales in 2020.
<<Wait... QSEP poised to reengage....when did QSEP disengage!!! >>
2019Q1
While management focused on finding a partner and finalizing terms of the demonstration project, our engineering team worked throughout 2018 to improve our AOT design and prepare one of our inventoried AOT units for deployment. All system upgrade, inspections and testing protocols were completed in December 2018, and the AOT unit is now ready for delivery to the demonstration site. The pipeline operator finalized site selection and began site design and engineering in January 2019. We shipped the AOT equipment to the demonstration site in April 2019. Based on the most recent project update provided by the pipeline operator, we anticipate installation to be completed in late May 2019 and anticipate demonstration operations to begin early June 2019.
<<begin early June>>
2018-10k
Plans moving forward are centered on achieving commercial adoption of our AOT device leading to sales and revenue in 2019. Over the past year, we have met with many industry executives who expressed interest in AOT subject to seeing and evaluating commercial operations and data. Assuming successful operations, the demonstration AOT project should provide data requested such as real-time changes in viscosity, pipeline pressure drop reduction and increases in pipeline operating flowrates. All collected data will be normalized such that it can be used to evaluate the financial and operational benefits across a wide range of commercial operating scenarios without disclosing confidential details of our demonstration partner’s operations. We believe that real-world data from our proposed pilot AOT project may be used to accelerate our desire to achieve commercial adoption of our AOT technology, positioning us to re-engage with industry executives, targeting sales in late 2019.
Based on the most recent project update provided by the pipeline operator, we anticipate shipping the AOT equipment to the demonstration site in early April 2019, with installation to be completed in late April. We anticipate demonstration operations to begin early May 2019.
<<Early May>>
“
Upon completion of inspection and testing protocols, the modified AOT was certified for operations and is now ready for delivery to the demonstration site. We expect site preparation (foundation, electrical interconnect, etc.) to begin in January, with delivery, installation and operations to begin shortly thereafter.
“
From October 2018:
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Although final project terms may vary from those described in the current statement of work, we and the operator have a general understanding that, subject to the execution of a definitive agreement, the demonstration project will operate under an initial term of 36 months, targeting installation in December 2018”
From May 2018 update:
We are continuing to make progress on our 2018 targets for the installation and operation of one or more demonstration projects, with four customers at the site-location phase. In addition, we have begun to build supplemental relationships outside of the midstream market, with gaining interest in trucking and ocean shipping. Once again, we thank you for your support and we look forward to a great year.
From March 2018 update :
“I would like to update you on progress we've made since my previous shareholder update letter. In January, I described three prospective customers considering AOT pilot programs.
The May hiring of Gallagher is now looking, suspect. It's almost like QSEP knew it was going to have issues or they actually tested the rig much earlier than reported and only now come clean as to why pipeline operators are not flocking to their doors to write orders!
Honestly, the time to hire this guy was 6 months into Lanes first year as new CEO! I guess they could not afford it as they had to come up with $500 large to play ball and rent a parking spot on an active pipeline.
The problem is that investors have been through so many management resets and broken promises and blown time estimates its almost expected they won’t meet any timeline they present...not to mention the fact that they obviously have serious issues with the technology and have not been able to turn it on for any significant length of time. This red flag blots out the sun! Qsep needs to test for many months perhaps a year or more before they can even consider marketing its service/product for commercial application.
Then there is the fuel injection license which actually represents the bulk of the past due licensing maintenance fees! It make no sense to continue paying these fee to Temple for ANY auto product it has developed as it has been clearly busted as ineffective and based on pseudoscience.
Qsep breaks another record by issuing more shares in the first 6 months of 2019 than any other full reporting year of operations.
Shares issued per period
2019Q2 298,457,191 3,651,703 1.24%
2019Q1 294,805,488 40,607,488 15.97%
2018 254,198,000 19,221,093 8.18%
2017 234,976,907 42,145,097 21.86%
2016 192,831,810 9,000,233 4.90%
2015 183,831,577 2,803,333 1.55%
2014 181,028,244 4,785,427 2.72%
2013 176,242,817 32,575,247 22.67%
2012 143,667,570 29,394,100 25.72%
2011 114,273,470 22,820,276 24.95%
2010 91,453,194 20,163,798 28.28%
2019
RECAP Q1/Q2 298,457,191
2018 254,198,000
2019 totals 44,259,191 17.41%
Latest google maps shows the 1500 sq ft shed they erected to add to the 5000 ft corrugated Qsep hq. A tour would be a walk through the home office then coffee and doughnuts! Also shows one Aot parked in the back yard at angle behind one of Lanes other tenants. Maybe new prospects can snap pic of the magic
??I wonder how long Qsep will keep reporting the CEO is renting his building and yard for a mere $1500 a month.
The hav blue Aot is now perched like an F117 in front of Qsep central.
It’s the management of the optics that is the task at hand. They now have building with s sign and piece of equipment outside with management with industry related resumes, new consultant blah blah blah! Btw I don’t see why Qsep needs a new wizard as the general fluff always describes Tao as the master of this effect. I don’t understand how the latest consultant would understand his invention any better then Tao!
Yeah in reality very small short position and the Margin requirements makes QSEP pretty much unshortable for the average Joe. Not many I know willing to put up $250K to short a $15K dollars in stock.
Seriously? Nobody is shorting Qsep aside from an MM. That is just a old made up excuse in an effort to deflect attention from the technical and fundamental problems that have plague this company for over a decade.
All of this is just Qsep double talk that’s been honed to a fine constancy and strategically employed to stem the blood letting or at least stretch out the carnage over the next few Qs. I must say for what reason that escapes me It’s quite effective in the short term.
I’m sure there will be a fresh new round of updates as Qsep keeps throwing out excuses and fluffy smoke screens to prop up the pps but it doesn’t negate the fact that there are entire areas of mathematics devoted to control theory. A device using this type of treatment would need a very complex controller not simply a power supply that turns on and off. Added a variables such as feed stock composition and the control algo might need a cray super computer to run the magic pipe! It’s oversimplification of this latest issue that is a classic tell that been floated before.
If after a decade of trying to prove out the magic pipe you would think they would have worked out the most basic mechanical and electrical engineering problems by now! They haven’t come close and obviously this announce just bought themselves another Q+ of time but it’s nowhere near enough!! The idea that Qsep will legitimize its efficacy claims in just a few weeks after it can actually turn on is another fallacy. Field testing goes on for months! Who knows what corrosive forces are generated by this device or potential for it to short or act “erratically”.
Yep the whole concept that an ever changing “batched” feedstock of crude will suddenly behave like a specially engineered rheological fluid that behaves opposite of what is seen in nature at different temperature and climate conditions.
Qsep management must believe investors will never check its history of excuses and solutions for its Testing failures
From 10K
https://www.sec.gov/Archives/edgar/data/1103795/000101968715000976/stwa_10k-123114.htm
On August 1, 2013, the Company entered into an Equipment Lease/Option to Purchase Agreement (“TransCanada Lease”) with TransCanada Keystone Pipeline, L.P. by its agent TC Oil Pipeline Operations, Inc. ("TransCanada") which agreed to lease and test the effectiveness of the Company’s AOT technology and equipment on one of TransCanada’s operating pipelines.
Under the TransCanada Lease, TransCanada installed and tested four AOT Midstream pressure vessels with a cumulative maximum flow capacity of 20,000 gallons per minute. As part of the testing process of our AOT Technology on the TransCanada pipeline, we received a report (“Report”) from an independent, third-party laboratory (“Laboratory”), hired by the Company. The Laboratory performed tests and analysis on crude oil treated by our AOT Equipment at the TransCanada pipeline facility where our equipment was installed under typical operating conditions. The analysis was conducted to determine the effectiveness of our equipment in reducing the flow of viscosity of crude oil flowing through the TransCanada pipeline. Among other things, the Report determined that data indicated treatment of the crude oil flowing through the TransCanada pipeline using our AOT Technology reduced the viscosity of the crude oil. The Report also determined that the efficacy of our AOT Technology was constrained due to the limitations of the electric field applied by the power supply installed on our equipment, concluding that maximum viscosity reductions could be achieved by modifying the installed power supply. We are encouraged by the results and data analysis arising from the testing of our AOT Technology under commercial operating conditions. We look forward to further development and commercialization of our technology. In June 2014, the equipment was accepted by TransCanada and the lease commenced. The TransCanada Lease was terminated by TransCanada, effective October 15, 2014.
2013 Qsep reports that the TCPL beta had a “constrained” power supply due to limitations of the power supply. Solution is boost the power supply. HMMMmmm heard that one before!
https://www.sec.gov/Archives/edgar/data/1103795/000101968716005472/qsenergy_10k-123115.htm
On July 15, 2014, the Company entered into an Equipment Lease/Option to Purchase Agreement (“Kinder Morgan Lease”) with Kinder Morgan Crude & Condensate, LLC (“Kinder Morgan”) under which Kinder Morgan agreed to lease and test the effectiveness of the Company’s AOT technology and equipment on one of Kinder Morgan’s operating pipelines. Equipment provided under the Lease includes a single AOT Midstream pressure vessel with a maximum flow capacity of 5,000 gallons per minute. The equipment was delivered to Kinder Morgan in December 2014 and installed in March 2015. In April 2015, during pre-start testing, low electrical impedance was measured in the unit, indicating an electrical short. A replacement unit was installed May 2015. The second unit also presented with low impedance when flooded with crude condensate from Kinder Morgan’s pipeline. Laboratory tests previously run on at Temple University on condensate samples provided by Kinder Morgan indicated the condensate was non-conductive; however, the condensate is known to have a relatively high density of semi-conductive particulate matter suspended within the fluid. Similar conditions were experienced in earlier prototype tests at the Rocky Mountain Oilfield Testing Center (“RMOTC”). At RMOTC, the pipeline had a high concentration of highly conductive particulate matter, which tended to concentrate at the base of the AOT when installed horizontally, causing the AOT to present with an electrical short. This issue was solved at RMOTC by converting to a vertical configuration, which allowed the particulate matter to flow naturally through the AOT. Based on experience at RMOTC, Dr. Tao expressed a high level of confidence that converting to a vertical configuration will resolve the issue of conductive particulate matter.
In June 2015, QS Energy engineers performed a series of tests and internal inspections on the AOT unit, which identified other potential design issues that could impact electrical impedance. Based on these findings, a number of internal components of the AOT were retrofitted or remanufactured to improve both efficacy and efficiency. The remanufactured AOT unit was delivered to Kinder Morgan facility in Texas and was installed in its new vertical configuration in July 2015. Installation and pre-start safety tests were successfully completed and preliminary testing initiated in August 2015. Initial results were promising, with the unit operating generally as expected. However, voltage dropped as preliminary tests continued, indicating decreased impedance within the AOT pressure vessel. QS Energy personnel and outside consultants performed a series of troubleshooting assessments and determined that, despite modifications made to the AOT, conductive materials present in the crude oil condensate continue to be the root cause of the decreased impedance. Based on this result, QS Energy and Kinder Morgan personnel mutually agreed the best course of action was to hold on final acceptance of equipment under the lease and temporarily suspend in-field testing to provide time to thoroughly test samples of Kinder Morgan’s crude oil condensate in a laboratory setting.
In 2015 another familiar excuse as Qsep reports KM test is shorting to ground due to conductive material within the crude oil (lease condensate) Solution: Temporarily suspend operation and do additional lab testing.
https://www.sec.gov/Archives/edgar/data/1103795/000168316817000736/qsenergy_10k-123116.htm
Southern Research Institute (SRI) was engaged by QS Energy in 2015 to investigate the root cause of the crude oil condensate impedance issue by replicating conditions experienced in the field utilizing a laboratory-scaled version of the AOT and crude oil condensate samples provided by Kinder Morgan. In addition, QS Energy retained an industry expert petroleum pipeline engineer to review the AOT design and suggest design modifications to resolve the crude oil condensate impedance issue. This engineer has studied design details, staff reports and forensic photographs of each relevant AOT installation and test. Based on these investigations, specific modifications were proposed to resolve the impedance issue, and improve the overall efficiency of the AOT device, resulting in a new value-engineered design of certain AOT internal components.
Problem fixed!
In December 2015, the Kinder Morgan AOT unit was retrofitted with the value-engineered internal components at Industrial Screen and Maintenance (“ISM”), one of QS Energy’s supply chain partners. Tests performed by ISM on the re-engineered unit demonstrated improvements in system efficiency and a significant increase in internal impedance. Tests performed on an unmodified AOT measured impedance at approximately 200 mega-ohms of resistance. Under similar conditions, the re-engineered AOT measured more than 20,000 mega-ohms; a 100 times increase in impedance. As modified, the AOT needed only 500 to 800 nano-amps to achieve a test voltage of 15,000 volts. These design modifications, specifically designed to address impedance issues experienced in the Kinder Morgan condensate pipeline tests, have the potential of improving efficacy and efficiency in crude oil pipeline operations as well. The increased efficiencies measured on the re-engineered unit has the potential to mitigate the need for a larger power supplies as experienced on operations on TransCanada’s high volume crude oil pipeline. The re-engineered AOT unit was delivered to and installed on the Kinder Morgan condensate pipeline in February 2016, with testing scheduled begin in March 2016.
In February 2016, the modified AOT equipment was installed at Kinder Morgan’s facility. Pre-acceptance testing was performed in April 2016, culminating in more than 24 hours of continuous operations. In-field viscosity measurements and pipeline data collected during this test indicated the AOT equipment operated as expected, resulting in viscosity reductions equivalent to those measured under laboratory conditions. Supervisory Control And Data Acquisition (“SCADA”) pipeline operating data collected by Kinder Morgan during this test indicated a pipeline pressure drop reduction consistent with expectations. Kinder Morgan provided the Company with a number of additional crude oil samples which were tested in the laboratory for future test correlation and operational planning purposes. Based on final analysis of in field test results, SCADA operating data and subsequent analysis of crude oil samples at Temple University, Kinder Morgan and QS Energy are considering moving the AOT test facility to a different, higher-volume pipeline location.
But wait AOT has been fixed as evidenced by all of the above claims of engineered solutions yet KM runs it for a measly 24 hours of testing then abruptly stops....then QSEP reports KM is considering moving it??? Something is rotten in Denmark! No company that saw a benefit would pull it that quickly
Southern Research Institute (SRI) was engaged by QS Energy in 2015 to investigate the root cause of the crude oil condensate impedance issue by replicating conditions experienced in the field utilizing a laboratory-scaled version of the AOT and crude oil condensate samples provided by Kinder Morgan. In addition, QS Energy retained an industry expert petroleum pipeline engineer to review the AOT design and suggest design modifications to resolve the crude oil condensate impedance issue. This engineer has studied design details, staff reports and forensic photographs of each relevant AOT installation and test. Based on these investigations, specific modifications were proposed to resolve the impedance issue, and improve the overall efficiency of the AOT device, resulting in a new value-engineered design of certain AOT internal components.
Again....another clear example of management twisting the truth so that they continue doing what they do best. Selling paper! How many times they claimed they had the fix with this so-called "Value engineering" WTF is that??? How about just good old basic engineering that works!!! Now a whole new series of excuses aimed at confusing investors into believing all is well...nothing to worry about. Yeah..
“Dr. Gallagher commented, “I remain highly encouraged by the opportunity, and we have been proactive while dealing with the recent hurdles. Although we have experienced some delays, the AOT represents a transformational technology in its potential to replace traditional diluents. I am pleased to be part of this team, and I look forward to assisting further in the demonstration project along with preparing for commercialization.”
Maybe someone should tell the good doctor that Aot claims only to REDUCE diluent amounts to the tune of a maximum 10-15%. In no way does the magical pipe reduce them to the point where they are no longer necessary.
Management claims they have enough cash for opex through Nov but at current burn rates, they have already consumed close to 50% and only 45 days remain. That would cover them through Sept not Nov as reported. That is without accounting for added cost from this latest round of technical musical chairs! Qsep needs at minimum 10M to pursue any real rollout of its service or its products ....I don’t see a clear strategy here on how they expect to raise that money or continue operations while they try to figure it all out.
2Q cash position $711,000
subseq raise $69,000
total $780,000
at cash burn $8333/ day 92 days from June 30th
Sustained operation for a “paid for” test...big whoop never will support multi dollar pps or a mktcap close to a billion dollars!!. It current valuation is still 200-300% higher than where it should be.
On another note I see the 500k prepayment that was rumored to be a refundable oilco “insurance policy” has now been expensed to the tune of 450k. So basically poof it’s gone!
No sane company would pay 60M dollars for QSEP. They would need to show ramping sales and expanded product lines of its alleged technology. That not happening anytime soon.
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I can guarantee you you won't be seeing that. I would be buying a couple million at .05 if it ever got down there, but it won't.”
Lol.,.I can guarantee that Qsep can make no guarantee of anything. They are out of altitude, airspeed and ideas! The carnage is just beginning!
Yeah he gets paid to be confident!
Another complete line of bull. Nobody is buying these excuses. They have reported that the crude at this unknown facility is of higher conductivity. The magic pipe will NOT be changing that anytime soon. Strapping a power supply with a greater output also does not change that reality and they admit they don’t know what exactly is the issue and Aot may require additional internal engineering just to turn on! The 10q reports the secondary supply was also exhibiting above its spec current draw and while they don’t think “leakage” has occurred they don’t know for sure! High voltage leakage within a flammable liquid is a bad thing!
Plans mean nothing. Qsep has had “grand plans” for saving the world for 21 years! It’s a giant bull crap sandwich and management hope all take a giant bite! I doubt many will at this point.
Fluffery they have major issues and have known for quite a while. Just another example of how the behavior and effectiveness of management has not materially changed. Past due debt to Temple for licensing fees is now over 1 million and accruing a “penalty interest” of 10%! Cash burn is over 8k a day..and they no zero revs and only source of funds is convertibles with warrant chasers.