QS Energy Inc (QSEP)

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Regarding this whole dilution issue one must consider what regulates the price of a stock. In most cases its value. One of the best metrics to evaluate vale is the P/E or price to earnings ratio. The E stands for earnings and that is short for earnings per share. If the number of shares goes up (through dilution or a stock split) the earnings per share goes down. If you divide the Price by an increasingly large number the P/E ratio goes up.

Stocks with higher P/E ratios are viewed as having less value and are sometimes refereed to as being over priced.

Lets look at the E component defined by earnings/#of shrs.

The P/E ratio goes down when the earnings per share goes up. The only way the earnings per share goes up is if the company is getting sales and getting paid by customers.

If the revenues go up faster than the price of the stock you will see the P/E ratio go down and at that point the stock is considered to be undervalued.

So, if the increase in the number of shares is dwarfed by the increase in the amount of money coming in through sales. The overall P/E ratio will go down demonstrating good value in spite of an increase in the # of shares. Everybody wins at this point.

In closing. If the percent increase in number of shares is lower than percent increase in the amount profit the company makes through sales then yes there is still technically dilution but nobody cares because the value of each individual share of stock has gone up.