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What is your proof that this management team has "mismanagement of funds" What specifically do you know that others don't proving the fact this team is as you say ' Pay themselves lavishly, and spend boatloads on over head. “
Well I’ve lost count of the number executives that got golden severance payments in the amount of hundreds of thousands of dollars after they did nothing but spin tales of impending sales and monetization of the company supposed Ip. They have botched just about every test they promoted and prior to Tomball they occupied high dollar offices on State in Santa Barbra and maintained a separate facility for its defunct auto products. Bigger greatest accomplishment was getting out of subleasing the expensive office space a year early...wow such an accomplishments for 290k + in salary!
One needs only to look at the ongoing expense structure and cash combustion to determine how out of whack this company is. If they spent a large percentage of on R&D developing their products then maybe a case could be made. But any cursory financial review clearly shows that most of 100M has been spent on SG&A. If this isn’t mismanagement I don’t what is!
Instead of hunkering down with the smallest foot print possible and securing in-house competent engineers/scientists Qsep continues to rely on Temple and Tao for its scientific and product legitimacy! This after paying 187k reoccurring yearly licensing fees and a sponsored grant in support of Tao’s far fetched claims! After all of it not a single product has been adopted by consumers or industry. Tao developed Elektra and Magchgr and made claims of mpg savings that were straight up fabrications. The company ran with it in full regalia!
Dude check the history of this company and numerous ticker changes before you bet the farm. This has been an insider enrichment scheme since day 1. I assumed that you are aware of management’s lies in regards to the FDA clearance of the Dominion...if not then you may want to check that out.
Well...successful companies do not burn through capital reserves, pay themselves lavishly and spend boatloads on overhead then go back to the well four or five times! The insinuation that Qsep resembles anything close to a successful company is absurd. The only reason they are alive today is because they are public and can raise money from unsuspecting investors who apparently have no issue with the financial mismanagement of the company. Any other private business would have to go to a bank!
Great! a new acronym to add to the list
Dead list
Magchgr
Elektra
ZEFS
CAT-MATE
MKIV
Active
AOT
VRX
Tight? Not the most accurate description of imgg. This company should be used as a case study of how a little public money can corrupt a small management team into concocting deceptive and misleading releases and promotional appearances when the FDA was saying something quite differently!
“Going from R&D level to this current state of the product has been filled with challenges. This is the normal part of introducing new innovation into a industry market. Now we have oil people selling to oil people. Inevitable “
Qsep has taking 18 years and 100M to arrive at this point which is that they MAY get another series of field test (s) then define the future with some non binding letters of intent which don’t even exists yet. This is in no way a “normal”adoption cycle . Maybe it is possible to make the case for a small percentage of speciality Pharma tuning clinical trials. AOT ain’t no Viagra... although I’ll bet old Tao would claim it can increase blood flow to the neither region for mere pennys per hour! It’s a perfect pitch if Qsep can find anyone willing to strap on an Elektra.
Have they translated the Middle east LOi yet?
Please work harder to shake people out... I would like more cheap shares please! Kinda feels like you have been phoning it in lately...
Here are cash burn numbers burn by Q and average by month
2017 Cash used by Q average
10K ? ? ?
10Q3 1395000 $630,000 $210,000
10Q2 765000 $594,000 $198,000
10Q1 171000 $171,000 $57,000
$1,395,000
2016 10K 1676600 $275,600 $91,867
10Q3 1401000 $480,000 $160,000
10Q2 921000 $403,000 $134,333
10Q1 518000 $518,000 $172,667
$1,676,600
Ap and other liabilities went up 600 k during the 9 months of operations. Company allegedly does not pay rent anymore so that buys another day or two of cash flow. On average they burn 150-200k per month which is down from 300k when old Cecil was running the show but still outrageously high for a company of this nature and history of failures.
Kinder Morgan has contract has been suspended as disclosed in the MRQ. It boggles the mind why it’s still promoted. All ot on that bulletin point list is just wishful thinking. I’m surprised Tcpl not included to fill more blank space!
The reality is Qsep has never been able to executed anything that converted into a legitimate business. Yes they have run pilots here and there and claimed super efficacy but nobody’s buying their pitch anymore. To many shareholders have been burned to a crisp and there are a bevy of other opportunities that have an actual ROI vs the fluffery that is Qsep.
Head fake...
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I don't get where the profit is in this game... or has it already been fleeced out of the shareholders? How much money has been 'taken' in to the company?
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109M was last Q accumulated reported loss of which a majority went toward salaries, consultation fees and overhead. As it’s been discussed before.. Qsep has spent proportionately far less on R&D when compared to other companies innovating new technologies in all fields. It’s ball and chain licensing commitment with Temple is just ridiculous, I know they need to buy legitimacy but Tao ain’t it!
Qsep is just another tout stock which was recently studied in a paper that examined investor behavior in this type of low tier stocks.
Open PDF in Browser
https://papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID3073817_code18004.pdf?abstractid=3073817&mirid=1&type=2
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I've said it before, no news is the kiss of death for many many reasons. Mainly shareholders feel slighted, left in the dark, its just poor business sense. So I agree Mr. Sano, get a contract done, or my .02 at least tell the truth and let an educated shareholder decide if they still want this lottery ticket. “
Can’t argue that logic but the truth is something that this company has never held in high regard. In fact they have either intentionally or by their own ineptitude misrepresented critical facts since day 1. Maybe Lane can change that but all early indication points to more of the same. As an example the Kmi contract is effectively dead yet only a one line sentence mentioning its suspension after years of carrot tangling has been released. Now it’s off to foreign lands after testing with several major US players! Then the issue with Temple licensing. The CFO claimed all was resolved yet the disclosures again show the real story.
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COMPLETE NONSENSE according to the EVIDENCE in the latest shareholders update released RECENTLY. The PROVEN AOT will be sold WORLD WIDE as per the FACTS below “
Ha! Apparently getting a field test to run properly is less important than claiming world sales dominance! It’s comical this company can do so many victory laps yet return only negative numbers to its investors!
Dude..this is a dead end. All I hear is how the tech MUST work because of the quality of people that are involved. That’s meaningless! Old school adage: Paper talks BS was walks! Qsep can’t be a perpetual pre revenue company for ever. They need sales to prove they have a legitimate business. Anything else is just lip service.
Great so was Erin Brockovich and Ed Masry and Ryan Zinke. Yet the company was unable to generate any appreciable business. Shamefully calling itself a development company since it’s inception 18 year ago!
“Data collected and analyzed before and after AOT treatment demonstrated a decrease in viscosity of approximately 23 percent 3 hours after treatment, and a decrease in viscosity of approximately 11 percent 13 hours after treatment; 22 hours after treatment, the crude oil had returned to its original pre-treated viscosity. “
Yet Tcpl was not interested and didn’t even take the lease to full term bailing out of the agreement by utilizing an escape clause allowing them to exit a mere 90 days after delivery for 6 month term. So they saw what they needed to see regardless of the bogus claims made by Tao and company and promptly yanked it off the line. Kmi didn’t begin...yet is still being promoted as active but acknowledged (begrudgingly) to be in “suspension” with no initial or ongoing lease made!
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Oh come on. Sure Mr. Giant oil company is going to be "persuaded" Stop. There is something there, not the 100% nothing you constantly elude to.
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Tcpl was at the time of the Aot installation vying for the keystone pipelines authorization. Working on a green tech in testing is great pr and cost way less than a few tv spots. Besides the pre paid legitimacy by involving Tao was Imo indeed a factor in “persuading” Tcpl to pay for a test.
Once the full scale test was run it obviously did not meet the end points and the contract was immediately terminated. Qsep management concocted all type of excuses but the reality was clear. They didn’t pull the trigger or keep testing or even go to the full term of the lease. Cecil and Bjorn exited before the rig was delivered and not an eyebrow was raised until the 90 day termination was disclosed.
It’s unknown to me what motivates current management . I’m sure they will be well taken care of like all that came before them ..especially with the new basket of common and preferred shares created for just that purpose. Also Qsep is occupying the latest Ceo’s facility where he does or did run another business. There is no stated rent or storage cost or overhead compensation. Nothing is stated and investors are left to assume that now these overhead expenses have been wiped clean. I know of no public company that would pay a yearly reoccurring licensing fee (187k) for products that never generated any sales and yet not have a contractual agreement to rent a building for a corporate hq. Call me old fashioned but i don’t buy the promoted theory that Qsep is occupying space in Tomball for free and as a courtesy of the new CEO. These guys are make out big time!
Great so it now it works on biodiesel, Heavy crude, condensate, blood, chocolate!
Old adage: “fool me once- shame on you. Fool me twice-shame on me!
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If it was as far fetched as you believe, then no one based on Tao's word would ever even waste a second on it.
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Even seasoned businessmen can be persuaded to run a field test or try a new product with a limited small run and defined exposure. Happens every day in retail. Industry is tougher but it not an unlikely occurrence. That’s why it made no sense to drop the auto lines after spending in excess of 40M to develop. The intelligent move would be to license it out especially since all SEMA guys were on board and rave reviews were flowing in! But that all vaporized so they could spend another 50 Million on AOT! Not a single product remains today for any of Tao’s fuel injection inventions even though the license for the fuel injection products is technically still active requiring over a $100k a year in license maintenance fees which are in arrears! Meanwhile back at the ranch, Aot has zero active tests even though Tao stated power savings of high double digit in power consumption at Tcpl using the magic pipe. If they tried it and executed an option buy or lease then one could make the case. Until then...investors will suffer.
Yet not a single sale...ever!
There has been a litany of LOIs but no sales. I wonder what happen to this signed agreement over 7 years ago! More Qsep lies and deception to raise more cash so they can continue at failing to develops a product that industry can benefit from! That’s why this company should be private concern and never allowed to bilk money from unsuspecting investors looking for the next bitcoin fad!
“STWA SIGNS LETTER OF INTENT TO COMMERCIALIZE OIL PIPELINE EFFICIENCY TECHNOLOGY IN CHINA
Download PDF
SANTA BARBARA, CA--(Marketwire - Dec 21, 2011) - In a major development for the commercialization of its oil pipeline technology, STWA, Inc. (OTCBB: ZERO) ("STWA" or the "Company"), a developer of energy efficiency technologies in the multi-billion dollar oil pipeline and diesel engine markets, announced today it has signed a Letter of Intent with Beijing Heng He Xing Ye Technology Development Co., Ltd ("TDC") to license STWA's Applied Oil Technology™ (AOT™) into the Chinese market. TDC is a supplier of technology and oil pumping equipment to the Chinese oil industry.
In accordance with the terms of the Letter of Intent (LOI), STWA remains the worldwide exclusive holder of all intellectual property related to AOT™. Nothing in the LOI transfers or assigns any right to AOT™ to TDC. TDC desires to license certain rights to STWA's AOT™ for the purpose of selling, distributing and commercializing AOT™ in China. Financial terms regarding licensing fees and charges for AOT™ installations for TDC's customers will be defined in separate agreements to be negotiated.
Leading up to the execution of this LOI, TDC gained support for STWA's AOT™ from key stakeholders in the Chinese market and within its customer base. Founded in 2001, TDC has clients that are publicly listed companies servicing various industrial control systems throughout China. Its clients within the Chinese petroleum industry are a natural fit for the STWA AOT™ technology. TDC has received operational data from major customers regarding its oilfields including pipeline diameter measurements, total pipeline length, velocity, temperature and estimated AOT™ requirements.
China is the second largest consumer of oil in the world, just behind the US. The Asian pipeline market in 2010 is estimated to be US$21 billion, with China's spending on pipelines to increase 40% by 2015. Recently, China released a working plan to boost energy efficiency nationwide. The plan, issued by the State Council, reiterates China's main goal to reduce energy consumption 16% by 2015.
STWA's AOT™ improves oil flow through pipelines, reducing the energy required for the transport of oil through pipelines by over 13%, according to tests conducted by the U.S. Department of Energy. AOT™ has the potential to impact the Chinese oil pipeline industry by creating hundreds of millions of dollars worth of energy savings, reducing greenhouse gas emissions by millions of tons each year, and helping industry meet the demands set by the State Council of boosting efficiency 16% by 2015.
"Key players in the China oil market have taken notice of AOT™ and our U.S. Department of Energy test results. TDC realizes the enormous favorable financial and environmental impacts AOT™ can have for China. We are very pleased with the efficiency with which our talks have progressed to date, leading to this Letter of Intent. TDC has shared with us that they have already had discussions with government officials and one of the largest energy companies in China regarding our technology," stated STWA Chairman and CEO, Mr. Cecil Bond Kyte. "We anticipate continued productive discussions culminating in more substantive agreements."
"China is in a period of extreme growth, with thousands of kilometers of pipeline under construction and many more to come," said Bjørn Simundson, STWA Executive Director, Program Management/Operations. "The alliance with TDC is a prudent strategic benefit for both companies. Our Company holds technology that can vastly improve oil transport for China's explosive growth, and TDC provides us the proper channels and protection necessary for rapid and secure industry and governmental acceptance and deployment."
Rasmussen is the Vp of engineering in a 2 employee shop...lol!! He is not qualified to re engineer a device that was cooked up in Tao’s brain which obviously has major issues and was returned to sender on at least three occasions! He was hired to be involved with sales and budget and project proposals not an inventor or scientist that has a history of developing new never before seen technologies for pipeline operations! Qsep needs an experienced technical and qualified product development team if they even want to even get close to landing a sale. He likely just another prop.
As for Temple they only “deferred” a small portion of licensing fees and still have maintenance fees due each year! This was to contrary to old “math” McMullen comments on CC SHM that all was resolved! Just more lies to keep the ball rolling!
From MRQ
“In July 2017, the Company and Temple amended the Second Temple License agreement. Pursuant to the amendment, the Company paid Temple $62,000 and Temple agreed to defer payment of the remaining $135,000 in unpaid licensing fee until such time the Company generates revenues totaling $835,000 from the license. In addition, the unpaid balance of $135,000 will accrue interest of 9% per annum.
As of September 30, 2017, total unpaid fees due to Temple pursuant to these agreements amounted to $786,000, which are included as part of Accounts Payable – licensing agreement in the accompanying consolidated balance sheets. With regards to the unpaid fees to Temple, a total of $108,000 are current, $370,000 are deferred until such time the Company achieves a revenue milestone of $835,000 or upon termination of the licensing agreements and the remaining $308,000 are deemed past due. The Company is currently in negotiations with Temple to settle or cure the past due balance.
A Reynolds Number of 2400 is laminar. Pump station moving heavy crude operate in a turbulent environment. Apples to orange!
Investors are not fooled by edited posts that only show positive fluff. Here is entire disclosure not the edited one!
http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=12379047-908-113013&type=sect&TabIndex=2&companyid=71342&ppu=%252fdefault.aspx%253fcik%253d1103795
10q Page 17 last paragraph in its entirety:
“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.
The Kinder Morgan Lease is currently in suspension and lease payments have not yet commenced.”
KM lease never consummated with consideration. Kmi did not pay Qsep a dime. This after Qsep sent the rig back and fourth , hired a third party testing agency then supposedly solved all the technical issues yet the lease is now officially in suspension!
Another CEO willing to make predictions that will never come true. That’s a dime a dozen In the OTC!
Qsep has been claiming it’s been ready to commercialize it’s so called game changing products for over a decade! Yet nothing has happened. There is no reasonable explanation for the failure of all pilot test to date to deliver a single sale, lease or license. Investors are not interested in hearing about opportunities to sell through some future LOI and subsequent stages of this or that business negotiations.
If Lanes wants to right the ship he needs an inside product development technical engineer and immediately renegotiate with Temple. They should receive nothing until Qsep sells something. All future licenses should be based on that scheme. In fact I’d ask for some money back! No more sponsored grants for Tao or maintenance fees to pay every year. Besides executive salaries this has been s monumental waste of money! It cannot and will not continue.
Ridiculous Tcpl out of picture terminated lease at by executing the 90 day termination. Initial term was 6 months with option to extend, purchase AND even store!
“STWA announced on December 21, 2011 that it has signed a Letter of Intent with Beijing Heng He Xing Ye Technology Development Co., Ltd ("TDC") for licensing, sales and distribution of STWA's Applied Oil Technology™ (AOT™) into the Chinese market.”
7 years ago!
2019??? another reset. This company operates under one play book. Instead of canning Temple and hunkering down to honestly try to develop a product ready for prime time...they continue this string alone game. Just a little bit longer....need a pilot test....rocket fueling for blast off!!!! Human nature is such an easy trait to manipulate and QSEP knows this and continues running the same "kick the can down the road" strategy. It has worked in the past so its hard to argue but Qsep has had ample pilot testing since RMOTC then CHina then TCPL then KMI. None of the commercial customers decided to deploy or keep for testing a single unit.
In advance of our first pilot installation, we have made moves to reduce operating expenses and outgoing cash flows, including but not limited to deferring payments to former CEO, Gregg Bigger under his separation agreement. We do have an immediate need for working capital to fund operations through our first pilot project. To this end, we have been meeting with several funds and family offices regarding both working and expansion capital.
Core shareholders ...hahahaha!!!!
Tao has proven he can write a theoretical paper and conduct an experiment which any dept chair should be able to do but he certainly has not proven that any of his theories actually translate into sellable products. The SEC has warned the company from saying so. So either his theory’s are worthless or Qsep ability to monetize them is woefully incompetent. Could be curtail number one or two it makes no difference. Since recent disclosures describe problems with both Tcpl and the KM field tests, I would bet that it is Tao who is the weak link. He served a purpose early in game as a source of legitimacy but now he is simply an outspoken paper weight. The companies continued reliance on him and the heavy burden of the Temple license agreements without a successful product after a minimum of 12 years is just a continues waste of resources when the Qsep has little reserves.
Lol this is Old Tao's original beaker experiment with some added digital sensors. Its still gravity fed nonsense and at such small scale and flowrate that its commercial application in a high flow pipeline is negligible.
This 5 page report is based on a flow rate of 5 grams a minute yet it’s spun as the second coming of China! Hilarity
Another fairy tale of overseas lovers soon to reunite! If this technology worked so well China would have knocked it off years ago. They didn’t. It was BS never to be heard from again.
Yep they owe them hundreds of thousands of dollars for a BS licensing agreement that a monkey could have crafted together. Apologizes to monkeys!
Yeah that’s why they deferred Bigger’s pay golden day because money is overflowing and never an issue!
Our most interesting prospect in South America has a defined need to increase capacity on a pipeline transporting a very heavy crude typical throughout South America. This operator is weighing AOT against installing more pump stations while adding more diluent to its blend to meet its needs. Preliminary analysis indicates AOT could decrease viscosity by more than 50%, allowing for increased flow rates and decreased reliance on diluent, with the potential to increase pipeline capacity by 20%. We are now in negotiations on terms of a Letter of Intent (LOI) detailing the preliminary scope and terms of a pilot project subject to crude oil sample laboratory testing and analysis to improve on our preliminary estimates and optimize the pilot site AOT configuration. A heavy crude oil sample has been provided, and is now in transit from South America and is scheduled to arrive at Temple University in the next 7 to 10 days after clearing customs later this week. The LOI will also detail the expected system-wide deployment of AOTs subject to 30 to 60 days of pilot testing. Importantly, we intend to maintain a high level of transparency on pilot test data collected for future use and dissemination by QS Energy. Overall, we are looking forward to a very busy 2018 in South America.