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2008 10k reported the shares issued as number close to 60 million. The last Q showed > 230M. A Dilution factor 3.8. The pps at the end of 2008 was .30. So if you adjust for dilution the fair value based on 2008 is now a very optimistic .078.
The market cap is 27M where the shell might be valued at 5-7M on a very good day. I’m not saying it’s even worth that but you can see that the current pps is at least 400-500% higher then it should be given the absolute lack of sales and continuous resetting of management and numerous golden parachute escapes for crappy executives.
I don’t advise anyone to buy or sell but information is there for all to see. Tao and Temple served only to lend a false legitimacy to Qsep. I personally think this pay to publish behavior is a violation of SEC rules but very difficult to pierce through with all the licensing legalize that is spelled out.
Waiting “Forever” is not an effective investment strategy no matter the risk /reward. So far Qsep has been unable to execute any of its lofty promises after 19 years of throwing darts...yet every form of ROI analysis has been pitched then quickly forgotten. The opportunity cost of investing in Qsep as bull markets continue is completely ignored.
Magnets/electric fields have not been proven to have any viable commercial interest after years of extensive testing. Qsep’s lead scientist can’t even explain the scientific rational behind this magic pipe. First Tao said it was the breaking of surface tension when it had to do with the failed fuel injection product then it morphed to “clumping” when they needed to explain the results on heavy crude. Honestly nobody is buying this promotional nonsense. You can’t fool Mother Nature! Turbulent flows of heavy crude don’t suddenly reduce to the pressure profiles of a laminar flow by the application of a few micro amps. It’s an absurd postulation on par with tornado walls, viscosity reducing chocolate pipes, and magnets to lower blood pressure.
There is basically zero institutional coverage and this company is primarily a small wealth management firm and likely holds these shares for a client. It’s kinda like the uplist promises that Qsep executives floated early in the game until shareholder actually looked at the actual requirements and odds of that happening. The actual uplist was switching tiers within the OTC. Quite a departure from the dream that was cooked up by marketing mavens.
In the end this company needs less lip service and promises and more revenue generating sales to prove its not a sham. Over a year has transpired and only promises to get a pilot up and running have been made.
The old delay tactics are still being deployed likely directed by long time associate mgroup who has been employed by both Lane and Qsep. The blatant pontification of supposed opportunities smacks of this groups involvement.
“I don't believe in being negative. My positivity has reaped great rewards in life. I definitely believe "A negative mind will never give you a positive life." If your going to spend your precious time in this life involved in anything, do it because you believe it will have positive results. “
Qsep results are negative. No profits no sales just expenses and promises. Spinning bad news as a positive is the company’s primary product. No other private concern would survive failing every commercial pilot opportunity presented. The real world is a killer and only the strong survive and thrive. Qsep may still be above ground but technically they are insolvent and certainly not thriving by any stretch.
But way before that this stock will be a hell of a lot higher. An easy 10x return from here, and 20x if you have a little patience.
Qsep continues its comms blackout although is still appears all company updates are written by the former CEO ala "Oils of the world Vol 2 by
G.Bigger". I remember how the CFO gushed about solving the ongoing pain of Temples past due licensing maintenance fees for the failed and now defunct fuel injection products and the giant AOT magic pipe and its new eDiluebt toll booth nonsense. OF course, we learned the truth from the 10K which showed the actual license payable. Not that anyone is shocked that the debt still exists and nothing was "written off".
The $500k has been written off by Temple University & is no longer payable by QS. The balance sheet will now look much more better with the reduced debt owing. The amended agreement clearly states the reduced debt payable. This is why I do my own d/d & only listen to smart attorneys & stockbrokers who know what they are talking about. NEXT
“We are moving quickly in our efforts to select a development partner and site location, and initiate a joint development agreement. Richard Munn and I have identified and approached a number of small to mid-sized target companies, and we are now working with a select group of targets who have expressed interest in providing transparent joint operations on an initial AOT installation, with an eye towards rolling out AOT throughout their pipeline operations.”
The new Qsep CEO released the above info over a year ago. Since then not a single one of these “kick the tires” luminary sites is ready for business or even mentioned other then saying that a South American customer may consider a pilot test. So new management has floated a half a dozen “opportunities” yet none of them are near Houston! Yet another giant fluff bomb that gets swept under the rug. The old adage “ I hear what they say...I see what they do” should resonate like a bell now after year on the job. No “Development partner” or joint agreement nada.
The numerous Qsep management resets has been applauded at every step. How soon investors forget the praise that was handed out to these numerous QSEP executives and directors after each change even know they never achieved any level of actual success. Then after they failed to achieve market adoption and received large payouts to step aside...a new set of executives are brought in to do it all over again! Qsep true success is its ability to keep pulling the wool over investor's eyes and keep most from jumping ship!
"This is a NEW management team at QUICK STRIKE that WILL get the job done, make no mistake about that. Just watch & learn. The shareholders now know they have a real & genuine company thanks to Gregg & the team at QS Energy as per the RECENTLY released business plan below"
Maybe it was the former Qsep CEO cashing out...but wait he applauded at the time for having great vision and strategy! How quickly the last two resets have been forgotten.
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Please, please, please, everyone, read the last two PRs very closely multiple times. Every time I read them the big picture puzzle becomes more and more clear. Mr Bigger has much more up his sleeve I anticipate. But his vision is most certainly taking shape.
STWA's current leadership will successfully and significantly increase stakeholder value, through both commercialization of the product portfolio and smart/opportunistic acquisition of profitable businesses.”
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There doesn't seem to be any more pressure on the stock so it was likely a friendly. Probably an .05 investor taking a little off the table. Hey, they have a 135% gain.”
The same excuse has been cited for a decade. When Qsep slides its always just a temporary event until it’s not.
As long as Qsep can continue to find investors willing to suspend all reasonable belief in fundamentals mof then they can survive for many years more. This by itself is not an accomplishment. Qsep has a good story as long as an investor doesn’t look that close it might seem
like one of the few opportunities in the OTC. However careful examination reveals that the main product is paper and the object is to sell as much as needed to cover the multi million dollar loss incurred each and every year since its 20 year existence. Qsep management must continue only to show slight progress to keep funds flowing in. Meanwhile they will be happy to sell .06 convertibles all day long.
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coz they've made out really well on the pump and dump that is qsep at 11c, amirite?!
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Whether it’s a slow bleed or pump & dump is really not the issue the results are the same. Qsep inability to deliver what it has promised over the course of its existence coupled with a double digit yearly dilution, has decimated the price per share. There is no denying previous Insiders have done very well and convertible note holders as well. The current crop at .06 needs .10 and will be happy to flip shares for a 65% gain and get another round locked in with warrants. It’s a shell game.
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I can't control where the stock goes, but every now and then, I think it is important for shareholders to see made up disinformation posts exposed for the nonsense that they are.
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Ha! Disinformation is Qsep’s forte yet it’s numerous fabrication of truth are consistently cited as proof of the companies product efficacy or of management newfound effectiveness after many resets. it’s seldom questioned and immediately rejected when it is!
This 20 year reality show has proven that neither product nor management measure up to a minimum standard of effectiveness so whether a million share buy is manipulation or a legitimate open market purchase is meaningless at this point. The company must prove it’s not sham and that it understands how to monetize whatever it thinks it has in terms of iP while raising the cash to do so! Big task small chance in hell of pulling it off!
Lol! Qsep has played the “ look who is working for us now ” card many times!
The last guy took a look and then realized he needed a real gig that could pay him! No mention why it didn’t work out or any further information. Company milks the pr but goes cold when it didn’t work out.
Rasmussen looking to provide for his family so I can’t criticize his move he is going try his best but he cant squeeze water out of a rock just Khami a few weeks in!
“Mr. Khami brings 25 years of experience in the manufacturing and energy industries to STWA. As Vice President of Operations, he will oversee a variety of sales and engineering initiatives. He will spearhead the Company's efforts to enhance STWA's flow assurance solutions, and will guide the business development team as it looks to secure additional deployments of these solutions. Mr. Khami has spent a large portion of his career developing manufacturing quality metrics. His experience will be invaluable, as STWA looks to develop additional applications and to penetrate new segments of the global energy industry. “
Greggory Bigger, STWA Chief Executive Officer and Chairman, commented, "We are excited to bring Robert on board as VP of Operations, especially given his deep experience in both the business and engineering sides of the energy industry. Our manufacturing team is looking forward to collaborating with him for enhancements to our technology as we look to additional flow assurance applications for untapped markets. We believe that Robert's business acumen will lead to additional deployments of our AOT and STWA Joule Heat viscosity reduction technologies, and thereby additional revenue opportunities as we move down the path from R&D to commercialization. Robert is an innovator who has a proven track record of improving operational efficiencies for the energy sector. He is a well-respected industry leader and we are proud to appoint him to our management team."
“100% wrong. You referring to the Mueller days? Those days are long gone. New management, new board, new company. The company is 100% accurate in its current filings. Just a stupid and foolish discussion at this point.”
Lol! Mueller has been gone for 17 years yet management has continued to lie about its prospects. There was a new board with McKinnon, then Kyte then Bigger...now Lane yet no execution of any number of promised contracts and opportunities. Honestly calling a discussion foolish without providing any real facts to counter it does little to further any long argument in favor of Qsep tech or its full reset management ploy.
Its inconsequential that many have confidence in basically a made up scientific result but the market doesn’t care about what is claimed only what is achieved just like every other company competing in the market. Qsep has not achieved any success with any product based on these dubious scientific conclusion and has not been vetted by any company that didn’t have a paid vested interest. Elektra was developed by Tao not Mueller and claimed a mpg increase of over 20% while Kyte , the company last CEO savior, said that Elektra would be the turning point of the company and would bring profitability. He made this statement a decade ago!! Alas the company couldn’t give units away.
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10k's have said it, PR's have said it, shareholder updates have said it. Please tell me people...how many times do we all need to hear the company confirm the AOT results on the KM pipeline were commensurate to lab results and they told us what the lab results were. They were great. See more below on sample results of 50%. Seriously, this is stupid”
Haha! Yeah Qsep has never lied in its disclosures before!!!! They have misrepresented the facts for a decade. It would be foolish to believe anything Qsep or Tao put out...it simply is not the truth and so easily exposed as false. I can name at least a half dozen complete fabrication this company has made which never came to fruition. It’s absurd to accept these efficacy numbers as the truth because they reported it! Please! Quoting Kmi results must make management cringe! First off it is on a condensate line which in itself make no freaking sense! I see no reason why AOT was tested (albeit for 24 hours hahaha!!!) on a diluent line when it's designed to move low API viscous crude. Then to say..everything matches the lab as if that makes some sort of difference. Tcpl ran away from Qsep as soon as it hit minimum escape period and Kmi didn’t even follow through with its commitment to pay for its pilot test which was fraught with problems and just recently revealed as being in suspension. This, of course, cannot be true. A contract cannot be suspended if it never began and since no 8k was filed to modify the terms of the existing contract from a paid pilot to a freebie test then this is one of the most egregious misrepresentations a public company can make. Especially since qsep 8k'd the signing of this contract with KMI seconds ahead of the termination 8k with Tcpl. There is no denying this sleazy move in a vain attempt to soften the blow!
“The only BS here is saying that the AOT does not work. 10k and 10Q have said in black and white over and over again”
Ahhh sorry but according to Qsep own attorneys the company products are not yet proven or commercially viable. Honest due diligence requires a unbiased look at all the facts not just the cherry pick ones that further the ideal narrative and ignore actual events like the Tcpl termination and kmi lease suspension.
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As stated on page 10, we “have not proven the commercial viability of this product.” To get there, we need to have final proof of efficacy, demonstrate financial benefit to the oil pipeline operators, and address other risk factors related to market adoption as detailed on page 16. However, based on our experience with Kinder Morgan and other potential customers, pipeline operators appear to be comfortable with our ability to build, deliver and operate our AOT equipment.
We believe the use of the word “proven,” in the context of the disclosures and discussion above, does not suggest that the AOT technology is, at this time, commercially viable. Nonetheless, to address the staff’s concerns, we will revise future filings by removing the word “proven” and replacing it with the word “demonstrates” or “shows.” Please advise.
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Sec correspondence letter:
https://ir.qsenergy.com/all-sec-filings/content/0001019687-16-006601/filename1.htm?TB_iframe=true&height=auto&width=auto&preload=false
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Trust in One's own DD and don't listen to any other BS.”
Qsep’s foundation is based on “BS” aka Bogus Science”! Tao, the self proclaimed tornado wall expert will continue his efficacy fluffery as long as the public accepts his whacky theories. Reading any previous disclosures reveal that his work and results are “not ready for prime time”! As long as shareholder continues to swallow the behemoth excuses made every year for NOT selling these magic pipes...then all is good in Qsepland!
Anyone looking at recent disclosures can determine that this company has squandered huge amount of money and now needs more and more but provides no info as to why its previous products never had a moniker of success or why Fuel injection devices are no longer even mentioned in the public disclosures yet garner a majority of the 187k licensing maintenance fee due every year!! This is real DD not the constant regurgitating of some newly concocted company narrative. They have lied for years and nothing apparently has changed! The Kmi failed contract is a perfect example! The company spins it as a success but not a single dollar was transferred!
A Qsep bid is not a buy like no order is a sale until the cash register rings! The company only advertised prospects are now NOT in the US... which basically means no US companies are taking Qsep seriously so they had to go offshore to stage another freaking pilot! Here the company moves its operation to Houston, the hub of US oil commerce, yet not one of these domestic companies that tested hundreds of samples at Tao’s Temple Lab or installed the magic pipes has inked a deal even if it was free! Honestly even if they announce a free pilot to be delivered to some dense jungle in South America, the smart money knows this is just another ruse. Nothing can help Qsep but top line growth and they simply do not have the product(s) that would get them to any level of significant sales.
Don B is a hack promotional awareness guy that’s been in hot water with the SEC as many times as
Imaging 3! The sole purpose of the moneytv show is to generate fresh shareholders as anyone that’s ever put a dollar into I3, wowio, pdos, mmrf, wouldn’t touch this stock with a 10 ft pole. MoneyTv is where Don actually had several of its favorite CEO on to discuss how internet bashing was killing the otc!
Take a look! It’s amazing they have no shame!
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That's because it takes a lot of time to see a new disruptive technology get adopted. It's well known, and investors understand this. They are willing to wait for the pay off which will be huge if they see adoption. Risk/reward. “
Another directive that defies logic! I’m not surprised. Qsep so called tech has been promoted as “disruptive” for decades yet like pump pointed out entire industries were formed while Qsep was combusting green backs. Typically “ disruptive “ companies have existing sales which accelerate due to a unique business model...Qsep model is based on the fleecing of investors!
“ Just bc QSEP has not started generating revenues yet, doesn't mean they won't. How many times to I have to repeat that?!
Well that defies basic business logic. I am not surprised...Qsep has been drilling into its shareholders the “over the rainbow” scenario for decades and for what ever reason investors are seemingly happy to print another free pass to let the company spend as they see fit even while they Increase the common and add a new preferred structure that make its unsubstantiated scientific claims seem more legit. It’s comical that Qsep has reset so many times with zero success and still walk the planet without attracting a cloud of flesh flies. Any small independent company that had to rely on its own financing would be long gone.
“Constantly ignoring the potential for contracts doesn't work either. And, someone is absolutely biting, BIG TIME. “
Seriously there is zero proof that big players are interested in this garbage company “ignoring potential” of a company unable to deliver and who has and continues to distort the truth year after year. Potential will not move the needle here. Only concrete verifiable reoccurring cash producing sales or lease. Until then...this is just Tao’s college experiment paid for by Qsep shareholders whilst he continues to make claims that defy Mother Nature!
Qsep is a dog crap company that has been unable to monetize anything it’s ever developed throughout its 20 year history so other than the continual selling thats been going on there has been no real buying interest. This is as clear as day. Hope springs eternal but nothing will prop this dog up without active contracts that provide cash for operations. The fear of “loosing out” has been played so many times with horrific results. I doubt seriously that many investors are willing to bite when other market opportunities abound!
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The quote below is also a lie. The author of this quote has no way of knowing if this is "FACT". In fact, QSEP has announce the installation of at least one pilot project targeted for this year.
Quote:
FACTs are, there are some worthless props rusting away in Texas that obviously the company cannot even give away for testing for free right now.”
Qsep management has made similar claims throughout its history yet they are not characterized the same way.
For instance: Qsep has not been forthright in explaining the Kinder Morgan pilot status and why specifically the company received no cash for the several rounds of equipment reworks. Qsep MRQ still promotes the concept that the bugs were worked out with its “value added” engineering statements and huge gains were observed but conceded no lease payments have been made and that contract is in suspension...awaiting a possible move. This clearly demonstrates that management is perpetuating the same game. It’s inconceivable to believe that KMI would not immediately act once they observed the claimed efficacy or that Tcpl engineers failed to understand what was happening on that line. It’s just doesn’t jive!
Qsep has run out of cash a dozen times and simply went to the well and was forced to sell shareholders ownership at historic lows because they have been unable to generate any meaningful sales throughout its 20 year history as a public company.
Post# 44494
“Idiotic. The testing facility Lane was referring to is the pilot they are currently working to secure.”
Qsep Management continues to make convoluted statements which are weaved to together to throughly confuse and dumbfound anyone that tries to interpret what’s actually going on. This is just more of an example. The first release morphed into something quite different just as the test results have historically been presented.
This is the same plan as before just more fluff added to the mix! If the strategy was to get a site to do joint testing then putting it offshore makes no sense. North America is the market of opportunity yet Qsep has to go to South America even though West texas basin is overflowing with bottlenecked product.
So Lane in his update now stated the viscosity reduction lasts now 10 times longer to 100 hours yet 5 Aot sit idle even though Qsep is willing to place them for free! Such a discovery would be heralded on every major scientific journal but not a peep. 5 units would then theoretically outfit a 100k bpd pipeline 2500 miles long! But it is not happening this year or next! It always be just over the rainbow no matter what management says.
As far running out of cash. Management acknowledges that they have only three months left of cash...but that never a concern. Lol!!!!
Every update received in 2017 and 2018 has been chalk full of “hype”.
First update Lane says he needs to set up a joint testing facility where customers can come in without disclosures issues. Didn’t happen. Instead Qsep builds a storage site on Lanes property to store all the prototypes that have been built so far.
Then it morphed into the Middle East opportunities which then became south America then China. Its an absurd collage of releases who’s only aims is to suggest the company has many pans in the fire. Then in the most recent release lane said they showed a lab extrapolated result of 50% viscosity reduction that lasted a 100 hours!! If that’s not hype then nothing is!
From: last update
“Tested across a range of operating temperatures, AOT reduced viscosity of these samples by 50% or more, with viscosity reduction lasting more than 100 hours. “
That’s the rub! Qsep has never been able to convert any of its numerous prototypes into any ongoing form of revenue. Until then all company forward looking statements on business prospects and hypothetical deployments should be taken with a grain salt!
“QSEP's financial reports accurately classified the AOTs as prototypes. As prototypes the existing AOTs have been fully”
All 5 units are considered protos because Qsep doesn’t not expect to achieve any derived revenue within a short time period and cannot list these units as “work in process” unless of course they purchased these units.
As far as the value of the company IP or other intangibles, Qsep has not been able to prove that its products are of benefit to commercial operators so until an operator steps up and deploys one these magic metal masterpieces its underlying patents and wizardry is not worth the price to keep them current.
“Oh Mr Sano incorrect again,
While you discount Professor Taos work with simple one line negative statements, I counter that with the continued government grants that fund his work, you believe that QSEP funded work is negative but he uses multimillion dollar facilities and equipment in a globally recognised manner, publishing much of his work (not all of his work) it has even been peer reviewed funded by state money. “
Here lies the conundrum for longs who believe Tao has discovered a whole new application of some new physical phenomena that he alone has uncovered yet no other industrial giant has ever been able to exploit this claimed effect. Moving viscous liquid is an integral component of many industries. This would be a discovery on par with the development of the transistor yet Temple willingly defers hundreds of thousands of dollars of licensing fees and always gets paid late as evidenced by these fees consistently listed as “past due” in public disclosures. If Tao’s field effect pipe actually worked any Director of licensing worth his salt would yank the Qsep agreements and put it in the hands of a company with the financial strength and engineering to monetize whatever Tao’s device thinks it can do!
After all it’s licensing commission on sales that brings in the big dough. Alas...Temple does nothing, content to wait. Not because Qsep has the strength and determination & marketing plan to pull it all off or because somehow they suddenly feel Qsep is now on the cusp of something meaningful, it is because they have been through it for a decade and understand no other company would actually spend that kind of money trying to develop a giant magic pipe. Additionally Qsep is originally from California. UCSB is amazing engineering school which was just down the street from its previous offices. They did finally hire a UCSB fluid dynamic prof to do minor testing which I believe was finally an intelligent move but no actual details of Meinhert’s work was ever revealed and I see no further mention of additional work he has done for the company. I’m sure he knows first hand the efficacy of all of this. Someone should ask him!
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I’m sorry but 30-40% efficiency on a heavy oil pipeline is massive and the associated contract alone that is under consideration would make QSEP profitable on its own!! (Yes just one contract can make your statement void)
Unfortunately my statements are presently not “null and void” and the proof is on Qsep to prove its claims they have been making for 18 years by getting market adoption. No other event will do it even though the company continually pawns off its previous pilots as successes. They were not. All of the company devices ever created are not commercially deployed ANYWHERE in any part of the world. Not a single fuel injection device or application or crude/lease condensate viscosity or any other reduction hardware is on a fleet of vehicles or a production line treating viscous crude, condensate...or what ever else. The genius Tao has been involved with both of these yet the fuel injection devices has been purged from the disclosures and determined not be effective even though he personally claimed a significant mpg increase. Management arrogantly believes they don’t need to explain why the continue for this auto product license but have no products it plans to try to monetize it.
“The company will not have to pay anything to Temple until they earn meaningful revenues, and at that point it won't matter much. The fact that Temple is deferring proves that point. “
That’s completely false. According the MRQ:
“As of March 31, 2018, and December 31, 2017, total unpaid fees due to Temple pursuant to these agreements amounted to $905,000 and $842,000, respectively, which are included as part of Accounts payable – licensing agreements in the accompanying consolidated balance sheets. With regards to the unpaid fees to Temple, a total of $52,000 are current, $392,000 are deferred until such time the Company achieves a revenue milestone of $835,000 or upon termination of the licensing agreements and the remaining $461,000 are deemed past due. The past due amount of $461,000 is owed pursuant to the First Temple License. The Company is currently in negotiations with Temple to settle or cure the past due balance.”
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Temple University Sponsored Research Agreement
From March 2012 through August 2015, the Company Temple University (“Temple”) provided research services at a fixed annual cost under a Sponsored Research Agreement (“Research Agreement”). The Research Agreement expired in August 2015. Temple University continues to perform laboratory tests on an as-needed basis, expenses are incurred on a per-test basis.
As of March 31, 2018, and December 31, 2017, total unpaid fees due to Temple pursuant to the Research Agreement were $10,000, which are included as part of Accounts payable – licensing agreements in the accompanying consolidated balance sheets. As of March 31, 2018, the entire $10,000 is deemed past due.”
Even Tao’s slush fund is now past due. The companies is in such seriously bad financial shape that there is no real getting around it. Yes I know...the loyal believe Qsep is unlike 98% of the other otc but that’s just wishful thinking. Until they demonstrate they can achieve sales and built out a real network of customers all claims of ROI or other postulated returns is just more fluff.
No matter how it is spun Qsep has been paying blood money to Temple for years just to get a fake rubber stamp of legitimacy. It was and remains a monumental waste of money. This is basically the root of the problem. Qsep execs have been lousy stewards of the capital
shareholders have committed. Millions have been flushed down the toilet yet the latest management team gets accolades doing zip after 12 months on the job.
“Actually, your argument is not valid at all. The monthly nut is the monthly nut. Period. So, it's a totally accurate metric of their obligation. “
The company is withholding payments which are due now and the ratios show it pretty clearly. Qsep current ratio is .125 which is basically Insolvent. Whether they shut the valve off and miter 100K a month until they can raise more is inconsequential.
“Temple is not "debt" lol. QSEP has little to no long term debt. There are no bonds outstanding whatsoever. So all this fear mongering over QSEP's "debt" is utterly ridiculous. It's not debt. Temple has already deferred a portion of their payment until revenues have been attained. Temple and QSEP have an understanding, and a solid relationship. Nobody believes they expect to get paid anything unless revs are generated. So your argument is invalid. Bigger has also deferred payment. He obviously see's what's coming here and is working with the company as well. It's a solid show of support for QSEP, that so many believe that the company will move into revenues. “
Financial liquidity measurements use current liabilities and debt combined in several ratios so this is more of a semantics question then a real valid discussion point. By any measure the company has virtually no liquidity or working capital. Even the most ardent stock promoter/Analyst will take note of liquidity ratios as an indication of financial health. If a doctors took an MRI of Qsep they would send in a priest!
“And, the company has laid out a detailed plan of how they will keep the debt very low: the preferred shares. they don't even have plans to issue any bonds. Which they could do not that it makes any sense right now. “
No they have not said what the preferred dividend would be or the conversion rate which are the primary question an investor must know before authorizing such an addiction. In the end it will convert and investors will loose more ownership. This year will likely hit 20% again like it did in 2017.
“As far as the burn rate that is endlessly brought up...QSEP been in business for years, and they have tolerated the burn rate just fine as demonstrated by the solid share structure. And, their expenses used to be triple what they are now and the company STILL only has 243M shares outstanding. So, yeah they can tolerate this reduced and reasonable burn rate no problem, lol. And they will continue to do so until they transition to revs. “
First off Qsep is not in business as they have zero unit sales and not a single placed product anywhere. They are a shell looking to monetize whatever IP they have left after 18 years of mixing and matching devices that follow this questionable scientific theory.
Honestly though 243M is huge for any company that should be operating at or below $500k a year but still managed to burned through $1.7M just last year. At that rate and .05 bargain shares will add 34M shares a year just to cover the SG&A nut. This doesn’t contemplate reengineering the tons of rusting pipe now happily covered in Tomball.
“And again, QSEP has a solid share structure with minimal dilution over the many years they have been in business. So when revs start dropping they can pay off that measly 300k to Bigger and start buying back stock and shrink the float. “
Hmmmm this solid great share structure along with and buy backs and uplists talks sounds amazing but it’s an old song dance that has all the hallmarks of Qsep stock promotional campaigns. The train is always just about ready to leave the station so new Investors must hop on or forever be left at the gate. In reality 2018 will come and go and Qsep will again have zero sales and only prospects for shareholders to chew on will more ownership dilution.
“Their obligations are roughly $100k a month. That is LOW for ANY company, period. Granted, most big board companies have revenue to offset their obligations, however most OTC companies have NO revenues at all, epic dilution and no real prospects for revenues. But let's leave out other OTC companies for arguments.”
Actually it’s not a legitimate argument. 100k cash burn for one is not an accurate metric of the obligation has Qsep on the books and Management just continually accumulates more debt instead of paying off it’s bills so it appears like they are controlling costs. Temple now is owed over 900k plus 187k ever year. Bigger a cool 300k! A companies burn rate can be tolerated if a company has topline growth. Qsep is no where close. So saying they are so much better than the average OTC has really no validity for the company.
Sorry but “on the path to sales” doesn’t pay the numerous obligations on the books today. As far as the share structure is concerned, it’s meaningless to compare Qsep as the cream of the crop of the otc when the company stock price and execution of a business strategy has never appreciated to any level that could be ever quantified as successful. At 240 M the market cap is 24 million. The shell and any residue NOL,s is worth maybe .025 on a very generous day. This doesn’t even account for the double digit dilution which happened in 2017 and will happen again in 2018. Great companies do not wholesale off equity if they are anywhere near monetizing their magic ip. The physics of a real business are easy to spot. Sales growth-costs control -innovation. The opposite is also true. Qsep displays all the characteristics of the latter. Nothing can change until they get paid for what they do! So far after years of testing, pilots, and many consultants, they have not even been able to get an up and running pilot for longer than a few days yet the company massages Tao’s claims as if it actually happened and Tcpl and KMI just didn’t see it! Tao actually said that Tcpl engineers didn’t know what they were seeing..lol! Just another pay to publish college prof who willing to play ball to collect his sponsored grant! (Paid by Qsep)
Not one major signed contract producing revenue after years of claiming a rollout was imminent. Honestly, citing third world papers that simply reproduce Taos gravity fed lab test does not a Qsep business make nor does the resume of its directors make its returned to sender devices sitting idle suddenly viable. Sales and profits are what investors are looking for but Qsep is no where near even getting top line growth....forget profitability. Company can’t even predict when they will have a reoccurring sale that can be legitimately called a business. They have a hard enough time just keeping the lights on!
Not many are buying the claims of efficacy Qsep has been making since the the turn of the century! 1% or 50% ..Qsep executives just spin the wheel and pick a number. The fact remains that market acceptance would have come years ago and there would be no question as units would be placed all of over North America and Qsep would not need to sell off huge chunks of equity at a 50% discount to payoff previous executives and licensing fees! Instead Qsep erects the Tomball museum of failed devices while crude pipelines and storage facilities backup due to a lack of capacity. Energy companies are throwing billions st this problem but Qsep can’t even get a strategic alliance to accelerate a rollout which has been promised for a decade!!
Meanwhile the company sells 4,698,773 shares for $243k or .05 cents a share...just to keep the lights on. Any entity about to blast off doesn’t sell equity so carelessly. It’s no wonder the pps is under pressure.
“
From April 1, 2018 up to May 12, 2018, the Company issued 4,698,773 shares of common stock upon the exercise of previously issued warrants for aggregate cash proceeds of $243,000.”
The Permian is backing up big time because of transportation capacity issues yet a gaggle of Aot’s are sitting in the newly erected corrugated Qsep warehouse collecting dust. If these device could solve throughput issues or reduce costs dramatically with its magic Ediluent, then they would have been immediately deployed all over the US and Canada. Years later...Qsep is just now trying to get another pilot program off the ground in South America.
Well qsep conceded in a one line statement in the last 10k that they are renting Lane’s facility for $1500 a month on a month to month basis. Apparently an outdoor prefab enclosure was also erected at Lanes facility to store all of the magic pipes NOT in service.