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Deal is dead. Kmi is done. McMullen teaching all investors that dilution is a good thing. Authorized new shares and preferred did not get a majority. Executive now phoning investors directly to get them to change vote. You can't make this stuff up!
Kmi is dead all referral is to a broken test the past tense. This crew is no different than previous
Big whoop...so they defer a little but they still owe them a boatload. So much for Lane renegotiating the agreement into something reasonable...it's amazing the incompetence of Qsep representatives that actually were party to this ridiculous license and maintenance fee in the first place...but now it was an easy prediction. Temple to be made whole along with a nice 9% interest fee.
From the last Q:
"
As of March 31, 2017 and December 31, 2016, total unpaid fees due to Temple pursuant to these agreements amounted to $793,000 and $726,000, respectively, which are included as part of Accounts Payable – licensing agreement in the accompanying consolidated balance sheets. As of March 31, 2017, $212,000 of the $793,000 payable has been deferred until the licensing agreements are terminated and $581,000 is deemed past due. The Company is currently in negotiations with Temple to settle this amount.
There were no revenues generated from these two licenses during the three-month periods ended March 31, 2017 and 2016.
Temple University Sponsored Research Agreement
On March 19, 2012, the Company entered into a Sponsored Research Agreement (“Research Agreement”) with Temple University (“Temple”), whereby Temple, under the direction of Dr. Rongjia Tao, performed research related to the Company’s AOT device (the “Project”), for the period April 1, 2012, through April 1, 2014. All rights and title to intellectual property resulting from Temple’s work related to the Project were subjected to the Exclusive License Agreements between Temple and the Company, dated August 1, 2011. In exchange for Temple’s research efforts on the Project, the Company has agreed to pay Temple $500,000, payable in quarterly installments of $62,500. The agreement expired in August 2015.
As of March 31, 2017 and December 31, 2016, total unpaid fees due to Temple pursuant to this agreement amounted to $78,000, which are included as part of Accounts Payable – licensing agreement in the accompanying consolidated balance sheets. As of March 31, 2017, the entire $78,000 is deemed past due. The Company is currently in negotiations with Temple to settle this amount.
These guys are dead. McMullen running the show with him speaking out of both sides of his mouth and now apparently in command...Lane just offering up contacts and his corrugated warehouse.
This was Joke of SHM with only one guy asking real questions. All other Q were softballs!!!! Tao's drag suppression theory pretty much toast!!!! QSEP wants to install toll both at each pump station!!!! Let's see how excited all those oil guys get for that model! Such marketing brilliance....AOT and cloud computing who would thunk it! Enjoy any bump...this company is years away from anything.
As for E-diluent....well is so stupid I can,t even comment other than to say it will never replace or degrade diluent use in viscosity reduction.
I especially enjoyed Mcmullen "phenomenal" comment about the company and the team etc! Bizarre! Doesn't have a clue...
"
You only ever quote the past, which will always be irrelevant in the present. We investors know that the AOT is finally ready for commercialization, so the points in your post are moot.
"
2016 is current news and this correspondence applies to all company disclosures today and certainly, does not negate the fact that there is a selective interpretation of the facts biased towards only a positive results. However, nothing released in the "present" would remotely support that conclusion.
Yeah...right.
Here they discuss the technology.
"
please revise your disclosure to remove the claim that the technology has been “proven.”
Here they dispute the claim of commercial viability.
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.”
Two separate issues not one or the other but since it doesn't fit the company narrative a bouquet of selective interpretation is fluffed up.
Read it again.
"We remind you that our comments or changes to disclosure in response to our comments do not foreclose the Commission from taking any action with respect to the company or the filings and the company may not assert staff comments as a defense in any proceeding initiated by the Commission or any person under the federal securities laws of the United States. "
Sec is watching them closely which is due to the overwhelming reports filed on Qsep by its busted shareholders. Clearly says cannot assert that the letter is free pass and SEC can come back and bring charges at any time.
"please revise your disclosure to remove the claim that the technology has been “proven.” "
Pretty clear no proof of efficacy exists anywhere...
No issues? Absurd! The SEC forced them to stop saying "proven" in describing Aot efficacy it's industry acceptance. That is contrary to what has been touted by management for close to decade!
Incorrect. The SEC is not a scientific testing agency. They are concerned with fraud and securities manipulations. That why they came down on Qsep for making false claims.
YOU POSTED:
Mail Stop 4628
December 30, 2015
Greggory Bigger
Chief Executive Officer
QS Energy, Inc.
735 State Street, Suite 500
Santa Barbara, CA 93101
Re: QS Energy, Inc.
Form 10-K for Fiscal Year Ended
December 31, 2014
Filed March 16, 2015
File No. 0-29185
Dear Mr. Bigger:
We have reviewed your filing and have the following comments. In some of our
comments, we may ask you to provide us with information so we may better understand your
disclosure.
Please respond to these comments within ten business days by providing the requested
information or advise us as soon as possible when you will respond. If you do not believe our
comments apply to your facts and circumstances, please tell us why in your response.
After reviewing your response to these comments, we may have additional comments.
Form 10-K for Fiscal Year Ended December 31, 2014
Business, page 3
1. You state at page 3 that your “intellectual property portfolio includes 47 domestic and
international patents and patents pending . . . .” Please revise to clarify how many of the
47 patents you have actually obtained, and how many of them are actively pending. For
example, if all 47 patents relate to your AOT technology, revise to so state. If any relate
to technologies which no longer form an active part of your business, provide the details
to clarify this.
2. Please us with support for your statement that “AOT has been proven in U.S. Department
of Energy tests and other independent tests…to increase the energy efficiency of oil
pipeline pump stations.
Greggory Bigger
QS Energy, Inc.
December 30, 2015
Page 2
3. Provide us with support for all assertions in your document regarding the purported
efficacy or “proven” status of your technology, including your claim at page 5 that you
“have proven our ability to build, deliver and operate our AOT equipment on a highvolume
commercial pipeline….” Provide us with all test results and reports which you
claim “prove” your technology. Provide comparable support for your statements later
about your Joule process.
4. Explain the basis for your claim at page 5 that “key players in the pipeline industry
continue to demonstrate strong interest in our technologies.” Identify those “key players”
and explain how they have demonstrated their “strong interest.”
5. At page 11, you suggest that producers “would also benefit from their midstream
transporters implementing our AOT 2.0 transmission-line series by its ability to increase
the overall flow capacity….” Clarify for the reader your reference to your “AOT 2.0
transmission-line series.”
6. We note your statement at page 14 that “our technology is commercially unproven and
the use of our technology by others is limited.” Explain the reference to this “limited”
usage.
Management’s Discussion and Analysis, page 22
Liquidity and Capital Resources, page 24
7. Please quantify the amount of additional funds that you will need to operate your
business and, to the extent, indicate the approximate amounts that you will need:
? pursuant to your agreements with Temple University;
? to fund product development and commercialization;
? to manufacture and ship your products; and
? to fund the other items listed under “Summary.”
Similarly, please ensure that your discussion of issuances of unregistered securities at
page 21 provides for each applicable issuance all information that Item 701 of Regulation
S-K requires. In that regard, we note that you have not provided the date of sale of your
unregistered securities, the name of the persons or class of persons to whom you issued
the securities, or the facts you relied upon to make the “Section 4(2) and/or Regulation S”
exemption(s) available. Also, provide enhanced disclosure regarding the issuance of
convertible notes that you reference at page 24. We note the discussion in the notes to
your unaudited June 30, 2015 financial statements relating to non-interest bearing
Greggory Bigger
QS Energy, Inc.
December 30, 2015
Page 3
convertible notes that you issued in spring 2015. We are unable to locate the documents
underlying that issuance listed in the exhibit list of any of your filings. See Item 2.03 of
Form 8-K.
Exhibits, Financial Statement Schedules, page 50
8. Please file or incorporate by reference all material agreements that Item 601(b)(10) of
Regulation S-K requires you to file, including without limitation the following:
? The research agreement with Temple University and any amendments thereto, which
you reference in Note 6 to your financial statements at page F-15; and
? All equity compensation plans, including the plan(s) pursuant to which you provide
your board committee members with a monthly fee and pursuant to which you have
issued options, warrants, and rights to purchase 16,760,000 shares of common stock
at $0.26 per share, as you indicate in the second row of your equity compensation
plan table (see the related disclosure at pages 44 and 45).
We urge all persons who are responsible for the accuracy and adequacy of the disclosure
in the filing to be certain that the filing includes the information the Securities Exchange Act of
1934 and all applicable Exchange Act rules require. Since the company and its management are
in possession of all facts relating to a company’s disclosure, they are responsible for the accuracy
and adequacy of the disclosures they have made.
In responding to our comments, please provide a written statement from the company
acknowledging that:
? the company is responsible for the adequacy and accuracy of the disclosure in the filing;
? staff comments or changes to disclosure in response to staff comments do not foreclose
the Commission from taking any action with respect to the filing; and
? the company may not assert staff comments as a defense in any proceeding initiated by
the Commission or any person under the federal securities laws of the United States.
Mail Stop 4628
March 11, 2016
Greggory Bigger
Chief Executive Officer
QS Energy, Inc.
735 State Street, Suite 500
Santa Barbara, CA 93101
Re: QS Energy, Inc.
Form 10-K for Fiscal Year Ended December 31, 2014
Response Dated January 14, 2016
File No. 0-29185
Dear Mr. Bigger:
We have reviewed your January 14, 2016, response to our comment letter and have the
following comments. In some of our comments, we may ask you to provide us with information
so we may better understand your disclosure.
Please respond to these comments within ten business days by providing the requested
information or advise us as soon as possible when you will respond. If you do not believe our
comments apply to your facts and circumstances, please tell us why in your response.
After reviewing your response to these comments, we may have additional comments.
Unless we note otherwise, our references to prior comments are to comments in our December
30, 2015, letter.
Form 10-K for Fiscal Year Ended December 31, 2014
Business, page 3
1. We note your response to our prior comment 1 and the related information that you
provided regarding your patent portfolio. Please disclose the information which appears
in the first paragraph of your response. Also, in new or revised disclosure, quantify the
number of patents which no longer form an active part of your business. Please disclose
how many of the referenced 47 are pending patents, and describe any risks to your
business that result from any gaps that exist in full patent protection. If the limited scope,
duration, or territorial application of any patents contributes to this risk, disclose this as
well. It appears that many of your patents offer you protection only in certain venues.
Greggory Bigger
QS Energy Inc.
March 11, 2016
Page 2
2. We note your response to our prior comment 3. Please provide specific, objective
support for your statement at page 3 that your AOT technology “has been proven . . . in
full scale operation on a commercial crude oil pipeline to increase the energy efficiency
of oil pipeline pump stations.” Alternatively, please revise or remove this language and
all similar claims. In that regard, we note the following:
? The AOT technology appears to lack a clear demonstration of full-field sustained
commercial effectiveness.
? The tests appear to be of limited duration and do not appear to clearly demonstrate the
applicability and benefits of the technology under continuous long-term operating
conditions.
? Your deployment of AOT technology on the TransCanada Keystone pipeline and the
Kinder Morgan KMCC pipeline has been limited to initial testing rather than fullscale
operation with proven efficacy.
? You disclose at page 14 that “our technology is commercially unproven, and the use
of our technology by others is limited.”
Similarly, please provide us with specific support for your assertions at page 8 that your
Joule Heat system “is much more efficient than current electric-powered heat solutions
(35±% vs 80±%),” that the system “eliminates local emissions, [thus conferring] a key
advantage over current natural-gas based systems,” and that it “can be made in a small
enough form factor to expand the market into mobile applications such as truck and train
transport systems.”
3. At an appropriate place in your filing, please disclose the particular examples you
provided in response to prior comment 6 with regard to the limited use of your
technology in “joint development, research, and testing applications.”
Management’s Discussion and Analysis, page 22
Liquidity and Capital Resources, page 24
4. In your response to our prior comment 7, you state that “the amount of additional funds
required is dependent upon levels of success and timing of [your] commercialization
efforts.” Please provide enhanced disclosure in this section, with quantification as
appropriate, to enable the reader to assess the sufficiency of your funds and the sources
thereof with respect to the items listed under “Summary” at page 24, as well as your
overall liquidity. In that regard, we note the disclosure which appears at page 8 under the
caption “Going Concern” in your Form 10-Q filed on November 9, 2015. We refer you
to Items 303(a)(1) and 303(a)(2) of Regulation S-K.
Greggory Bigger
QS Energy Inc.
March 11, 2016
Page 3
5. Also, as we requested in prior comment 7, please ensure that your discussion of issuances
of unregistered securities at page 21 provides for each applicable issuance all the
information that Item 701 of Regulation S-K requires. Please comply with all the items
noted in prior comment 7 in that regard.
Closing Comments
We urge all persons who are responsible for the accuracy and adequacy of the disclosure
in the filing to be certain that the filing includes the information the Securities Exchange Act of
1934 and all applicable Exchange Act rules require. Since the company and its management are
in possession of all facts relating to a company’s disclosure, they are responsible for the accuracy
and adequacy of the disclosures they have made.
In responding to our comments, please provide a written statement from the company
acknowledging that:
? the company is responsible for the adequacy and accuracy of the disclosure in the filing;
? staff comments or changes to disclosure in response to staff comments do not foreclose
the Commission from taking any action with respect to the filing; and
? the company may not assert staff comments as a defense in any proceeding initiated by
the Commission or any person under the federal securities laws of the United States.
Please contact Parhaum J. Hamidi, Attorney-Adviser, at (202) 551-3421 or, in his
absence, Timothy S. Levenberg, Special Counsel, at (202) 551-3707 with any questions.
Sincerely,
/s/H. Roger Schwall
H. Roger Schwall
Assistant Director
Office of Natural Resources
Mail Stop 4628
May 27, 2016
Greggory Bigger
Chief Executive Officer
QS Energy, Inc.
735 State Street, Suite 500
Santa Barbara, CA 93101
Re: QS Energy, Inc.
Form 10-K for Fiscal Year Ended December 31, 2014
Response Dated March 11, 2016
Form 10-K for Fiscal Year Ended December 31, 2015
Filed March 15, 2016
Form 10-Q for Fiscal Quarter Ended March 31, 2016
Filed May 10, 2016
File No. 0-29185
Dear Mr. Bigger:
We have reviewed your March 15, 2016 response to our comment letter and have the
following comments. We have limited our review of your most recent Form 10-K and most
recent Form 10-Q to those issues we have addressed in our comments. In some of our
comments, we may ask you to provide us with information so we may better understand your
disclosure.
Please respond to these comments within ten business days by providing the requested
information or advise us as soon as possible when you will respond. If you do not believe our
comments apply to your facts and circumstances, please tell us why in your response.
After reviewing your response to these comments, we may have additional comments.
Our references to prior comments are to comments in our letter to you dated March 11, 2016.
Form 10-Q for Fiscal Quarter Ended March 31, 2016
1. As applicable, please also give effect to the following comments in your Form 10-Q for
the fiscal quarter ended March 31, 2016.
Form 10-K for Fiscal Year Ended December 31, 2015
2. We note your response to our prior comment 1 and reissue the comment in part. It is
unclear from your disclosure which patents that you own are related to your active
Greggory Bigger
QS Energy, Inc.
May 27, 2016
Page 2
business. Please expand your disclosure at page 11 to quantify the number of patents
which no longer form an active part of your business, and describe any risks to your
business that result from any gaps that exist in full patent protection.
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.”
Closing Comments
We urge all persons who are responsible for the accuracy and adequacy of the disclosure
in the filing to be certain that the filing includes the information the Securities Exchange Act of
1934 and all applicable Exchange Act rules require. Since the company and its management are
in possession of all facts relating to a company’s disclosure, they are responsible for the accuracy
and adequacy of the disclosures they have made.
In responding to our comments, please provide a written statement from the company
acknowledging that:
? the company is responsible for the adequacy and accuracy of the disclosure in the filing;
? staff comments or changes to disclosure in response to staff comments do not foreclose
the Commission from taking any action with respect to the filing; and
? the company may not assert staff comments as a defense in any proceeding initiated by
the Commission or any person under the federal securities laws of the United States.
If its material then it must be reported in 4 business days. A material event is defined here:
https://www.sec.gov/fast-answers/answersform8khtm.html
Dude there so much of a backstory here it will snuff out any real trend. All public companies big or small like birds big and small, need fundamentally the same traits. Big Birds needs wing, legs, eyes, mouth etc and so do small birds. Qsep is no different. The company needs sales and profits through distribution and marketing. They simply have been unable to monetize any device based on Tao's or any previous inventors designs of applying EM fields to hydrocarbons.
If material news is coming at SHM it would need to be announced today as required by the SEC for filing an 8k.
Imo TA on Qsep will give you so many false indicators your head will spin off axis. I would bet the plan is to run it up in pump 2.0 but unfortunately everybody knows it's coming. At .20 this is a fat payday for a note holder if you bought at . 5-.10. Besides they still hold warrants to get right back in the rare instance that Qsep can actually discover a real business.
Lol...what text book is that? How to turn millions into thousands?
Note holders headed the for exits with 100-500% returns....smart selling into the SHM. The insider enrichment continues!
On one hand he supposedly "saved" the company by doing "5 jobs" at once and tightening up expenses etc but now that it doesn't fit the company's narrative of onward and upward, he is now the ire of longs like Cecil who also took a golden payday! Look at how many other executives got paid off at Qsep. It's s regular occurrence.
How about the board compose a list and then ask? I'm sure one of the longs here is going. Here are my three:
1. Why didn't KMI pay for the field test?
2. When does the company start selling its products or services to industry.
3. How does the company plan to finance operation until they can generate enough sales to cover expenses?
Lane may have saved the company temporarily but that's because he offloaded millions of .05 convertibles.
But even that cannot make a worthless device suddenly viable. Lane should be concentrating on shifting the business into some sort of royalty or real estate venture ASAP. It's the only hope shareholders have of turning this 18 year old experiment into a real business. I suspect they will continue pushing Taos College experiment. If they don't come clean on why the KMI contract never incepted then shareholders should expect the charade to continue.
McMullen rubber stamped Biggers huge severance package and has been involved with company for years. Qsep is the good old boys club. 32 hours work week must include the multiple trips he must make from his den to his home office . He must get reimbursed for all that walking!
Both previous CEO's got handsomely paid to walk into the sunset no matter what dismal results they delivered. When this happens in penny world...it's pretty a lock that the company is an insider enrichment venture.
Incorrect logic. At $150k per month cash burn...a Qsep field test of 50k is peanuts. The additional convertibles of 600k will not last through the end of the year. Dilution will be double digits this year and the authorized is going way up. Company needs to generate sales of $5 million just to cover existing overhead and contract obligations. The total revenue for the past 18 years is under $350k so it's pretty clear that Qsep management does a good job at spinning tales and hocking notes but has woefully failed when it comes to generating actual sales based on a real business. If that changes....no one will need a decoder ring to decipher the events from cryptic references printed within company disclosures or whacky statements by Tao.
lol....all Qsep legacies products are dead. Let's review:
Cat mate- dead
Cat flap- dead
Zefs - dead
Magchr- dead
MkIV- dead
Elektra - dead
Joule- dead
Aot- dying
Lol..."oils of the world" by former CEO Greg Bigger, who's greatest accomplishment was to renew his own employment contract months before it expired so he could get a "bigger" pay day as he waltzed out the door! There is no doubt management believes its investors are stupid and don't put any resistance.This latest stunt just confirms it.
Yeah gems appear throughout STWA and Qsep releases but most of them are straight up fabrications.
How easily it's forgotten the outright lies management has told its investors. 10k units sold here 600 k units to follow. The auto after market products were touted as the savior of the planet!!!! It was all BS and all these product were quickly canned never to be mentioned again! Look at these early news releases. They still show up on the Qsep website today. All turned out all to be bogus products like infomercial sold infused copper compression apparel that do nothing more than add sizzle to the phantom steak!
"LOS ANGELES, CA -- (MARKET WIRE) -- April 25, 2007 -- Save the World Air, Inc. (OTCBB: ZEROE) ("STWA") announced today that it has appointed T & C Adtech ("Adtech") to serve as the company's distributor for its MAG ChargR™, ECO ChargR™ and future products in the country of Vietnam.
STWA's wholly owned subsidiary, STWA Asia Pte. Limited, and Adtech have entered into a binding distribution agreement under which Adtech has paid cash in advance to support its first shipment against an initial order of 10,000 units, which was shipped immediately. Under the distribution agreement, Adtech is required to purchase 600,000 units over a five-year period in order to remain a distributor of the Company's products in Vietnam. The units are being marketed as a performance and fuel efficiency improvement product in the aftermarket.
"LOS ANGELES, CA -- (MARKET WIRE) -- November 1, 2006 -- Save the World Air, Inc. (OTCBB: ZERO) today announced that is has appointed PT Carbon Credit Indonesia ("PT CCI") to serve as the company's exclusive distributor for its MAG ChargR™, ECO ChargR™ and CAT-MATE® devices in Indonesia.
The Company's wholly-owned subsidiary, STWA Asia Pte. Limited, and PT CCI have entered into a Distribution Agreement under which PT CCI has agreed to establish a letter of credit to support its initial order of 10,000 units, which order will be placed before November 30, 2006. The Distribution Agreement provides that PT CCI is required to purchase 600,000 devices over a five-year period in order to remain the exclusive distributor of the Company's products in Indonesia.
Bruce McKinnon, President of Save the World Air, stated, "This distribution agreement is the result of a successful testing program undertaken by STWA and CV Indako Trading, in Medan Indonesia. CV Indako Trading is a major Honda Distributor in Indonesia and an affiliate of PT CCI. STWA is pleased to add PT CCI to its distributor base."
Arifin Posmadi, Director of PT CCI, added, "We will first focus on supplying MAG ChargR devices to the motorcycle aftermarket because the people of Indonesia desperately need relief from the rising cost of gasoline and air pollution. Our initial market focus will be in Jakarta, Medan, Yogyakarta, Surabaya and Bandung. We are privileged to be Save the World's Air's exclusive distributor in Indonesia."
"LOS ANGELES, CA -- (MARKET WIRE) -- July 27, 2006 -- Save the World Air, Inc. ("STWA") (OTCBB: ZERO) today announced that it has received its first order from its exclusive distributor in China, Golden Allied Enterprise Group (GAE). The initial order is for 100,000 devices to begin shipping within the next 60 days, and to ship in installments through July 31, 2007. The devices will be distributed to motorcycle and small engine OEMs and the aftermarket throughout China.
This order fulfills the first part of the distribution agreement, signed with GAE earlier this year, in which the initial order is to be placed by July 31, 2006. The distribution agreement requires GAE to purchase 11,500,000 devices over a five-year period in order to remain STWA's exclusive distributor in China. The placing of the first order with GAE is a significant milestone for STWA as it marks the Company's transition to generating revenues through the commercial sale of its devices.
Bruce McKinnon, President of STWA, commented, "We are excited about this watershed event. Our team has worked very hard over the years to develop products that fulfill the need to reduce hazardous emissions from the air, while improving fuel efficiency and engine performance. Finally we are able to bring these products to market and start generating revenue. We intend to continue to target both the OEM and retail markets as we continue increasing our sales and marketing efforts throughout this year and in the future."
John Bakalian, President of GAE, added, "Today marks a big day in the history of STWA and GAE. We have placed our first order for STWA products. The ZEFS™ devices will be sold throughout China. We are seeing strong interest in all STWA devices and anticipate exceeding our projected minimums for the first year and the years thereafter. The cooperation between STWA and GAE will allow us to aggressively penetrate the Chinese market and we are very optimistic about our future business together."
"
They're actually about to execute. I'm sure you'll be buying a bunch of shares the day they do so. "
Nothing has changed. All previous predictions of imminent contracts have never materialized...I don't see any distinction from when Cecil took the helm or when the banker was going trim up the company. It's just a new spin cycle of the same old laundry. The executive comps and severances packages dealt out was an outright theft from shareholders. Anybody director or officer who voted for that should be shown the door.
The obvious strength is in the ability of the company to keep selling convertibles to finance 100% of its operations. I think the overall view of many here is that they will continue to do so with no ill effects but that's not the way the world spins.
Sub penny is much more likely than industrial adoption of anything Qsep has tried to peddle. Give it time...water always finds its level. Besides dilution alone will be double digits this year. Thats enough to kill any new push to hype this company. After the Kmi condensate rig is disclosed to be headed home for "upgrading" I wonder what excuse will be used then!
No what makes a company a "winner" is when they execute. Qsep has never been able to launch a product with any level success. Even after consuming a $100 million plus and over years of development they still haven't solved the fundamental problems facing any public or private company. They must get sales and have profits to sustain themselves as a business in the long term. After 18 years.... now is the " long term" !
The reality is that results and perception can all be manipulated to suit the company narrative. The margin requirements to short Qsep is $2.50 a share which makes shorting a risky strategy.
The real issue is that there is not single product from the over 18 years of fiddling that is commercially viable. None generate any appreciable sales.
Management gets cherry severance packages no matter what the results as all they have to do is show they are "working" on it.
They have no advantage over any other whack companies on the otc. They been sanctioned by the SEC and have endured a bevy of musical chair CEOs that all got greased on the way in and out! Yet not even a hint of actual deployment on a fully functional commercial pipeline...this management is selling fools gold.
I'm curious how many diehards are making the trek to Houston to see the latest Qsep dog and pony show SHM. Should be a cathartic experience!
These directors are not magic engineers that can suddenly change the laws of nature. The only one versed in the companies "oils of the world" rheology experiment is Tao. New directors may bring their respective networks and contacts but they cannot make a false claim true. Aot and all the gadgets that came before predict an effect in nature which has not been proven nor vetted by peer review. If such a "clumping" phenomena truly exists then Temple would take the highest bidder to monetized this discovery which has every industry would be after. instead they wait to get paid
From 10k
"As of March 31, 2017 and December 31, 2016, total unpaid fees due to Temple pursuant to these agreements amounted to $793,000 and $726,000, respectively, which are included as part of Accounts Payable – licensing agreement in the accompanying consolidated balance sheets. As of March 31, 2017, $212,000 of the $793,000 payable has been deferred until the licensing agreements are terminated and $581,000 is deemed past due. The Company is currently in negotiations with Temple to settle this amount."
"
Better yet the understanding that if our engineer in fact does move his whole family to Texas . It means this
Magic white pipe is the real deal .
It was so stated that the last engineer
Never did move to Calif ......
Another good catch Mr S
Remember do your own D/D"
Haha..."our" engineer... must be a Freudian slip. Anyway no outsider knows his situation and it really doesn't matter who is on the BOD or who is brought in as a new employee. None can transform lead into gold.
If Qsep is actually on the cusp of writing real orders and is now ramping engineering for production, then why are they in arrears with Temple for IP fees to tune of 750k? Bigger got a crazy severance and made a great living as CFO and CEO but didn't renegotiate Temple ridiculous licensing fee and grant! His employment contract renewal was rubber stamped by the CFO and BOD just prior to his exit . That cost shareholders 600k!
Remember the other engineer hired to head manufacturing? Yeah he was going to relocate to California but he got a better gig and said "bye Felicia" to Qsep! Management doesn't mention it. We all had to find out through back channels that he " didn't measure up" ... lol! This after the company promoted his hiring as the second coming of Jesus! Now swept under the rug like every other disaster this company comes up with!
Good luck with this pump..it will be short lived with millions of cheap shares overhanging.
Operative word being "ex-Engineer" providing paid consultancy to Qsep yet they sent it home packing without reaching the first term. Tcpl executed the bailout clause in 90 days!
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I think Transcanada may still be watching AOT very closely
And not just for Keystone.
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I think not...both Lane and the latest new guy were hired as "consultants"and Rasmussen previously worked on the
Qsep technical issues at Tcp. He was not working at Tcp when they tested Aot. He is now getting his due.
If anything hasn't changed it's managements continued enrichment of those that played ball. I don't fault Lane or Rasmussen for taking the job though. You have to feed the family and Im sure they will try to salvage Aot and maybe with lots of R&D and some extraordinary luck they can come up with something that can be tracked as a real business. Treating crude or condensate of dilbit or whatever with Aot will continue to suck the life out any remaining reserves.
Lanes experience is elsewhere in royalty rights and real estate. Hopefully Qsep new plan is to shift in that direction which would be the most positive move this company could make.
lol...consultant gets a gig cause his own company apparently can't cut the mustard with 2 employees. Now this guy is moving his family and 2 kids to Houston!!! Man...all for a penny stock that has ripped more people than a great white...remember the last guy that was supposedly relocating to California to handle engineering and development? He never made it pass the review stage...just like Aot on Tcpl and Kmi. All of these board additions and new staff jobs are pure window dressing with a distinct plan to separate investors from their money. So far it's working... unlike the company products which do not! In a few years Aot will be a distant memory and the new push will be for something completely different...if they can dream it up. But all these new hires are not supported by an actual cash flow other than pitching convertibles.
No amount of TA can transform
Qsep experiments to an industry ready hardware available for sale. This will drag on for years.
Yet Tcpl walked away in 90 days forced Qsep to admit the testing was flawed and to mutually agree that nothing conclusive could be determined.