QS Energy Inc (QSEP)

[valueyoda]

It is very easy to say that there are large investor groups out there, but without actual filings, we could take this with a grain of salt. If several groups are working together and own more than 5% of the outstanding shares, they are required to file a 13g or 13d filing as a group. If not, they have committed securities fraud. It is not easy not prove that they are actually working together though.

A substantial portion of the increase of the outstanding shares in the last decade has come through the issuance of warrants and stock options to management, but a substantial portion of that increase has over time been sold off or expired out-of-the-money.

FUrthermore, the company has even mentioned several times in its latest 10-q that it needs to raise substantial sums of capital in the future to fund ongoing expenses and bring AOT to market, so the float will increase even more. There is a risk for current stock option and warrant holders that if the stock would continue its current trajectory and drop below $0.50 and then below $0.30, that their variable compensation packages become worthless, so they are incentivized to keep the stock price afloat.

It is funny, as I went through the 10-ks and 10-qs of the last 7 years, how eerily similar the projections for commercial success were for Elektra and MAG ChargR, before completely dropping those efforts.