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From SEC to Qsep May 2016
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3. We reissue our prior comment 2 in part. You continue to suggest that your AOT technology has been “proven” to “increase the energy efficiency of oil pipeline pump stations.” Based on the information you provided on a supplemental basis and the related disclosures, and for the reasons cited in prior comment 2, please revise your disclosure to remove the claim that the technology has been “proven.”
4. Similarly, please revise to eliminate the suggestion at page 6 that you have “proven” your “ability to build, deliver and operate [your] AOT equipment on a high-volume commercial pipeline” in light of the details you supplied regarding the problems your equipment has encountered and the lack of any substantial commercial usage. As you state at page 10, you “have not proven the commercial viability of this product.”
The company must have sales to be viable and until they accomplish this with cold hard cash, I doubt anything said or printed will mean much. Remember this is the same company who’s scientific leader claims 1000 ft walls can help protect against tornadoes!
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COMPLETE NONSENSE. Professor Tao's GREAT work has been peer reviewed & verified by professor's, scientist & Universities from all over the world. The below FACTS are from a a few months ago. Another tick of APPROVAL for Professor Tao & Temple University.
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Unfortunately industry doesn’t care whether or not Tao has been verified by scientists or third world universities from all over the planet. They care about whether Qsep has a product or service which can provide cost savings in one form or another. So far, after a dozen years of working on Aot the answer is a resounding NO! Please anyone feel free to post any other invention which Tao has been involved with that has any level of success. The chocolate viscosity prop didn’t do anything except give him some notoriety as a scientist willing to claim success before crossing the finish line and that the more outlandish the claims the bigger the Internet press hunger got for his tornado walls and magnetic blood pressure reducing machines! This all serves to elevate Taos whacky scientist brand but does nothing for Qsep except create more questions as to why they didn’t try to control their own destiny. I would have fired him after his fuel injection products died on the vine. The smart move would be to remove Tao and bring in another vetted and experienced industrial engineer. After all the license is with Temple not Tao. I doubt the company can ever be taken seriously with Tao at the helm.
“QSEP's business model of getting paid per barrel with pipeline system-wide installations will literally print money. One of the most powerful businesses i have seen if they can get adoption. A great path to be on indeed.
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Operative word being “if” Company has failed at every product deployment Tao and company have dreamed up. Until dollars hit the books repeatedly over and over again...nobody buying the sizzle less the steak.
The old goat salesman and “foot a day” growing Paloma trees is still at I see! Man it’s the gift that keeps giving!
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INCORRECT as Friday is a public holiday & the markets are closed. The 10k is not due till Monday the 2nd of April.
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Well that’s the drop dead date. It’s not customary for a company with great news to wait to the absolute last moment...unless of course there is no great news in which case today after hours or Monday would be perfect!
They had their “first” contract with Tcpl. It was the first pay to test for oil viscosity reduction. The crack qsep team promptly screwed the pooch! Another major player KM took a shot too but Aot again didn’t make the grade. Device was taken offline and contract never paid or properly explained it to this day. Two major US companies simply evaporate from the discussion yet those contests were heavily printed and was the primary reason this company did not disappear!
Now Investors are to believe something amazing is cooking behind the scenes which is only only privy to insiders, friends and family, dogs and cats!
Don’t worry pH I’m not wrong here.
Why Friday? If a material events good happened it needs to be reported in 3 business days. Certainly Qsep would not have waited until 3 days before reporting the K and closing the Q to do a deal! Unless of course signing done BS Intent letter means diddly.
Anything not US or Canada is considered “offshore”.
Lane was the consultant on the failed Qspool campaign so he was in a good position to see what was happening with Bigger at the helm and the issues with high rent in Santa Barbara and having no sales for decades. I’m sure he saw an opportunity especially since Qsep couldn’t put together one reasonable deal when oil&gas assets were selling at fire sale levels and they had some very large equipment that needs to be stored . Also it appears his land rights business (JBL royalty ) is not that active. It’s anyone guess but certainly investors deserve to know the details of this relationship.
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ABSOLUTELY FALSE as NO RENT is being charged by the multi millionaire ceo. Any rent charged would need to be disclosed in the filings, but it's not. This is why I do my own d/d & only take advice from professionals who know what they are talking about. “
Any agreement, even if it’s basically free like a dollars worth of consideration would need to be 8k’d as it is material to the company and investors. I suspect the actual details will be disclosed in the upcoming 10k but you never know with these guys. At that point we will see how “free” a building and storage area actually is and whether they are still pointing up to Temple and Tao.
“Someone going to tell me they will jump thorough hoops raise a bunch of cash and pay themselves, this late in the game, with no liquidity of the stock compensation? Possible, but odds say otherwise. Remember lets stay in the present!
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I guess we will just have to agree to disagree. I do agree with fact that it’s odd that anyone would take on this task given the track record but In penny land there is no shortage of executives willing to take a whirl. I certainly would never use that info as any kind of investment metric.
While Lane may not be receiving a heavy salary (150k ain’t bad for a first start) his building is now Qsep hq AND storage location which can create much wiggle room in his total yearly compensation. It’s also very strange that this arrangement is not spelled out as to term and cost if any. Even if it’s free there would be a written understanding that is material to the company and must be disclosed especially if the new preferred shares are somehow involved. Until management cleans up its act and actually answers the sticky questions like the status of this or why KM never got off the ground it will be difficult to take them seriously.
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If you're so inside the deal, filled with all these facts, why can't you get a reference to some of the initiatives the company is working on. Why not use your resources to check these facts, no, instead you reference the kind of car someone drives...... come on brah!!!!!!
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Old adage: I hear what they say. I see what they do!
What facts are available? I see no disclosures of contracts only press releases on the possibilities of a pilot. Apparently the fact that Qsep most recent “pilot” was a full blown contract with options to buy not a simple LOI but Qsep never received a dollar!
Has anything changed...
I remember hearing how Tcpl was not really terminated because it wasn’t immediately hauled off and is still being promoted as demonstrating amazing results that Tao inadvertently “discovered” then Kmi on the condensate line. I’m still wondering why a diluent needs s diluent? Anybody want to take s crack at that?
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1. Ok so once again you're in 2010"
2. what past management is doing has no bearing on current management,
3. "insider enrichment" thought this was a pump and dump?
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2010? Ahhhh....that was Cecil’s era not Bigger who resigned only last year.The point being both collected handsomely like their predecessors. Oh and btw the CFO is still there for god sakes...AND the story really hasn’t changed. Lane claims he going to clean up the balance sheet but all money that’s been brought in was promptly spent. Also the Kmi status has been and CONTINUES to be actively covered up until just last q where they again refer to the possibility of moving the condensate test rig but acknowledge that the lease is in suspension! Wtf is that? It’s vague and as non transparent as one gets and just like all the Qsep releases before! It’s as relevant as any other fundamental measure of performance so saying this has no bearing is absurd!
As far as Qsep being a p/s, well I didn’t advocate that or call Qsep an outright fraud. Idk if it is or not but it’s clear that Qsep is a public company that has been unable to develop any products which would turn into a legitimate business enterprise. As a result they bounce around from one idea to another ( fuel injection, oil viscosity reduction, oil heating by joule effect offshore undersea!!) but in the end management shows their collective intentions by how they spend the money. The bulk expense is and continues to be largely executive compensations, previous management compensations and useless license maintenance fees not R&D.
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3. Lifestyle pitstop? Is that a team used in higher eduction, because I'm not familiar with it? “
Obviously...but Qsep executives know it all too well. Bigger’s employment contract was renewed just months before it was to expire. Why would he be rehired if they were planing to shift to another CEO? Answer shows that all directors are willing to play ball as long as they all get a golden ticket at the end of gig.
Loopholes... yeah I’d say so.. only they are size of Manhattan
Lol! If one cannot see that this company has been and continues to be an insider enrichment scheme then not much more can be discussed. Any cursory review of the disclosures on Kyte and Bigger’s exit tells the story pretty clearly. They both got a couple of years of sick salary and millions in shares. Cecil built a crazy new house and drives around in exotic cars. All from being an airline pilot. Bigger now lives in Aspen! Btw this was not the first Qsep executive that got this type of deal. Again read the old 10ks and you’ll be amazed how blatant the payoffs were!
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Yes Mr Sano they have been putting their money where their mouth is.
And that's why I'm comfortable to tell my friends to buy a share or twosmile “
Insider purchase is bullish but let’s be realistic. Company basically burns 2 million a year in cash and the new board convertible note purchases would not cover 80% of what they need for a single year of operation. Hanging ones hat on insider purchase at the exclusion of the most basic fundamental flaws inherent to Qsep,is a dangerous scenario. How’re It is useful if one wants to clean house of all friends!
There is no free lunch in public companies. If Qsep is getting a free all expenses paid warehouse and company hq then they are understating their loss as any public company has leases in place. If Qsep doesn’t have lease then there is nothing to prevent Lane from terminating the verbal agreement and force the company to look for a new spot. This is called a conflict of interest so I would expect Qsep to announce they are buying his property or sign a long term lease where investors will soon realize that Lane got a pretty sweet deal for a property that was sitting idle. Like everything Qsep does, it’s always shrouded in mystery and always leaves a viscous residue!
$5 dollars is a market cap of 1.5 Billion , so basically all fundamentals are chucked in favor of hype and promises of sugar plum fairies! Great strategy!
Company directors have been spinning a yarn for two decades. Suddenly a knight in shinning armor rides in and all of the past is suddenly forgiven! Wow! Then there is Tao who has made outlandish claims luke the previous fuel injection products that basically defy the laws of Nature and made claims of fuel efficiencies by running the device on his personal Mercedes Benz and then pawning it off as a legitimate field test until he was dissected by an academic peer and legitimate expert in field. How on earth Tao and Temple get a pass is beyond comprehension.
Here’s are promises that have been made under several CEOs and never came true...what’s different now...nothing!
Lets look at what the company has said in each December in its annual update:
From 2016 Update
“Looking forward to 2017, I'm pleased to say we have three active, collaborative AOT projects on our agenda. The first is documented in the November 28th, 2016 Form 8-K filing which sets forth the stages of AOT testing at the facility of a vertically-integrated company active in Alberta's oil sands region. The initial phase will commence in the first quarter of 2017, with a fully functional laboratory-scale AOT device. The objective is to assess the technical capability of AOT technology under field operating conditions characteristic of the oil sands. Following that process, based on positive results, the next stage would call for a full pump station installation ("Field Test"). Previous viscosity reduction and related tests performed on customer-supplied samples at Temple University's Department of Physics were highly favorable, which led to the current Field Test Agreement.
The second collaborative project involves a trial assessment and then full and potentially sponsored engineering of the AOT-XL, an innovative new addition to our flagship product line. This specially configured, high volume AOT system was developed upon request by the management team at a trusted, long-term collaborative partner within the midstream sector of the domestic energy industry. Designed for very high volume pipeline environments, the AOT-XL is fabricated to meet a target of 25,000 barrels per hour capacity (600,000 bpd). Initial laboratory tests of one of their crude oil samples has also shown favorable results.
The third project is our continuing collaboration with an entity based in the Middle East, one of the largest oil companies in the world. Customer-supplied samples of crude oil are in possession of Dr. Tao's team at Temple University for the full scope of testing and analysis to replicate the efficacy of AOT. The infrastructure of this high-output producer and transporter is massive in scale and could require numerous installations of the AOT technology at strategic points. Our discussions to date have encompassed a variety of deployment scenarios based on the improved flow volume and time-to-market goals of the customer.”
Wow...three active programs
and Zero revenue. Bravo!
From 2015
Quote:
“I am extremely pleased that today we are now in a more advantageous position than at any point in our history. Our commitment to a bifurcated strategy of acquiring undervalued assets while further optimizing our technologies has already opened up new horizon of opportunity, and will undoubtedly drive our expansion throughout 2016.
To date we have identified target acquisitions and hope to complete our first transaction with one of them shortly, subject to our obtaining sufficient acquisition financing. Once the deal has been finalized, QS Energy will have entered a new phase as a profitable and sustainable corporate entity, with the resources and expertise necessary to capitalize on the unique market conditions that only occur in a highly cyclical industry such as the energy sector.”
Hey what happened to the genius “bifurcated" strategy that the current CEO was brought on to implement! Bye bye Felicia!
From 2014 Shareholders letter
Quote:
It is our goal to re-deploy our inventory of AOT equipment with other pipeline operators in North America and internationally through our global business development efforts and our distributorship with Energy Tech Africa which provides us with representation in Africa and the Middle East. Existing and upcoming opportunities for positioning these income-generating assets will afford the Company with the necessary infrastructure venues for the next stage of AOT testing and optimization.
The Company currently owns five AOT pressure vessels; one which has been deployed to Texas under a short-term lease with options to extend the lease or purchase the equipment. This equipment is on schedule to be commissioned and the lease initiated in 2015. The remaining four AOT pressure vessels will be re-deployed either separately or together depending on the target pipeline infrastructure.
All of these objectives which we outlined at last year's Shareholders Meeting have been accomplished according to a pre-determined timeline that was both ambitious and aggressive. We are extremely proud of this effort and the accomplishments of our team and our supply chain partners and customers, given the extremely tight deadlines that all have had to operate under.
Or...they can turn them into 1500 scooby doo outdoor playground sets!
From 2013
Quote:
"The sophisticated process of designing, engineering and fabricating this innovative flow assurance solution for our customer is nearing completion and will soon be in the field testing on a half-million barrel per day pipeline system in America's heartland," Mr. Bigger commented. "I am delighted with the team's progress and our supply chain's responsiveness and quality of execution. They are truly dedicated professionals doing a job well done, and I wish to thank them and our loyal shareholders for their tireless efforts in seeing this process through. I am humbled and honored by your commitment, thank you."
Except that little detail about sending the magic pipes with a power supply a 100 times too weak! LOL!!!!!
The best comes from Cecil in 2010 shareholder update:
Quote:
"The milestones that we achieved these past twelve months have set up 2011 to be a monumental year," stated Mr. Cecil Bond Kyte, Chairman and CEO of STWA, Inc. "Throughout the course of 2010, we have positioned ourselves to take advantage of the tremendous opportunity that our energy-efficiency technology holds for crude oil transportation and diesel engine efficiency to help meet energy demands and emissions quality standards. We believe that our development of an AOT™ product line has the potential to change how crude oil is transported around the globe, resulting in significant cost savings for pipeline operators, greater safety and a reduction the industry's environmental footprint. I am excited and encouraged by the strides we have made as we get ready to begin our baseline testing in January and enter real-world application with our technology."
7 years later no adoption of any Qsep products during which time fracking in the US took off!
Yet we have no idea when Qsep will have a single dollars in sales or when the company will reach break even...but thanks to all investors willing to cross promote this bull shit release largely done to pacify those pesky vocal investors. As long as Qsep keeps kicking the can down the road investors will certainly give this latest management team another chance at trying to defy physics because after all the company has the ace in hole whacky professor that’s never produced an invention or method that has ever turned one dollar in sales. Great job team!
Fluff release by another rook penny executive. No 8k means nothing has happened. Company needs to raise at least 2M to get through 2018 so the recent price flurry is related to this pumping action. The amount of dilution once revealed will be staggering; even if it’s concealed through some creative preferred sale. There are millions of shares for sale!
Another “awareness”program packaged up for the new Twitter world. Qsep must have bought a gaggle of memberships to facilitate this”wink wink” free coverage. Amazing...I wonder if these outfits ever get past page 1 of any of Qsep public disclosures.
Kudos??? Lane has only talked about prospective pilot tests which btw are likely free. Nothing sold or leased! Man..,,the bar is set so low a cockroach could jump over! Then there is Tao and Temple; who received samples of oil to test yet take months to return! Why in the world is Qsep relying on Tao to do oil viscosity flow testing?Temple doesn’t have a pipeline loop and any test that can be run in a small lab should be accomplished by any local Houston petro lab or preferably in-house. It’s absolutely befuddling why any public company would loose control of its own destiny! Qsep continues to be a deception and any notion that Lane has suddenly transformed Qsep into a translucent entity is ludicrous.
50k in trades might get some rook penny swappers excited but this is all prefluff according to the number one go to Qsep tried and true penny play! If it isn’t material then spin it and go long!
Down...set
blue 32
hike!!!!!
Just another RSI play. It will be short lived. The 10k will spell out any concrete commitments which will be nill. The current bump is just momo dreamers pushing the RSI indicators. Another fresh fish lure by MM ready to keep offloading shares!
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Very happy to see Lane execute, and deliver on an expected timeline. QSEP stands to make a great deal of money if AOT is installed system wide as the CEO has mentioned in the update.
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Nothing like resting on ones laurels! Lane hasn’t brought one dollar of sales in yet he is “ delivering”! Pure comedy!!! Talk about setting the bar low! Wait until the 10k! The cold reality of running out of dough once again will weigh this pig down.
lol...if anyone thought Lane was any different then any of revolving door CEOs well this release just proves the same old philosophy exists! No word on cash position or how it’s going pay for 2018 operations! Wash, spin repeat!
They can update until the cows come home but it will make no difference. No major US firm will adopt any product by Qsep until it’s product are unequivocally proven to work and be durable to operate at pipeline pressures and varying weather conditions. If they signed s deal today Qsep would not be in position to deliver for years...they simply do not have the financial strength or confidence from the market to have any significant impact. It makes no sense to invest until they disclose a revenue generating deal that can be quantified and tracked and is not some latest fluff job The likelihood of that happening is infinitesimally small!
Lhaha..,The Qsep “staunch guardians” would never let the common holder down!
Investors are now awake and won’t knuckle under with an application of just a few micro amps of fluff! Real companies don’t even release LOI info because they have real sales and thousands of customers. Qsep after 18 years has zero customers and zero reoccurring sales. This facade won’t last much longer at current pps.
Lol! Yeah that MUST be the answer... email them and just ask lol!! Maybe a Qsep Director will even give a complimentary tour of the new Qsep museum of fame/Hq...which now includes the original blue Aot...and now a gaggle of white Aots. Wow there is so much to see!
I’m sure any new investor willing to buy some serious quality of fresh new convertibles will get any question answered as long as Qsep doesn’t say it’s tech is proven or that they have achieved any level of market acceptance. Essentially everything in the upcoming disclosure.
He might be a “believer” but that doesn’t sell magic pipes. The huge supply of cheap shares will continue to weigh this down to a few pennies . All the gains from the last campaign are now vaporized.
Rasmussen might be a good engineer /consultant but he can’t make technology work if it violates the laws of physics. He himself was actually honest in assessing the Tcpl test where he said had batching issues which were predicted before the test by a message board poster!
Sorry it’s true! According to trade data; 26k shares went off at .080.
More truth .080 print!
What is true...Qsep print .09!
Don B has been in hot water with the SEC several times. His shows feature crap companies that never rarely turn a dollar and always have a BS pie in the sky story! Honestly Look at pdos, wowio, mmrf and just about every other paying “guest”! Dean and Brian Altounian actually appeared on the show with Robert Lorsch to talk about how message boards were destroying their companies...lol! None of them needed any help! The only ones making money are insiders and Don B! I love it when he says he is “ Initiating coverage” yeah right! Just like his Paloma trees would grow a foot a day or his goat carcass escapades of that he will waiting by the phone to take Dean calls when they get the imminent FDA approval!
No orders invalidated anything that is claimed to be”happening soon”! How it’s posted over and over that Qsep is anything more than another insider penny stock dream, stretches the imagination beyond this dimension.