“Actually, your argument is not valid at all. The monthly nut is the monthly nut. Period. So, it's a totally accurate metric of their obligation. “
The company is withholding payments which are due now and the ratios show it pretty clearly. Qsep current ratio is .125 which is basically Insolvent. Whether they shut the valve off and miter 100K a month until they can raise more is inconsequential.
“Temple is not "debt" lol. QSEP has little to no long term debt. There are no bonds outstanding whatsoever. So all this fear mongering over QSEP's "debt" is utterly ridiculous. It's not debt. Temple has already deferred a portion of their payment until revenues have been attained. Temple and QSEP have an understanding, and a solid relationship. Nobody believes they expect to get paid anything unless revs are generated. So your argument is invalid. Bigger has also deferred payment. He obviously see's what's coming here and is working with the company as well. It's a solid show of support for QSEP, that so many believe that the company will move into revenues. “
Financial liquidity measurements use current liabilities and debt combined in several ratios so this is more of a semantics question then a real valid discussion point. By any measure the company has virtually no liquidity or working capital. Even the most ardent stock promoter/Analyst will take note of liquidity ratios as an indication of financial health. If a doctors took an MRI of Qsep they would send in a priest!
“And, the company has laid out a detailed plan of how they will keep the debt very low: the preferred shares. they don't even have plans to issue any bonds. Which they could do not that it makes any sense right now. “
No they have not said what the preferred dividend would be or the conversion rate which are the primary question an investor must know before authorizing such an addiction. In the end it will convert and investors will loose more ownership. This year will likely hit 20% again like it did in 2017.
“As far as the burn rate that is endlessly brought up...QSEP been in business for years, and they have tolerated the burn rate just fine as demonstrated by the solid share structure. And, their expenses used to be triple what they are now and the company STILL only has 243M shares outstanding. So, yeah they can tolerate this reduced and reasonable burn rate no problem, lol. And they will continue to do so until they transition to revs. “
First off Qsep is not in business as they have zero unit sales and not a single placed product anywhere. They are a shell looking to monetize whatever IP they have left after 18 years of mixing and matching devices that follow this questionable scientific theory.
Honestly though 243M is huge for any company that should be operating at or below $500k a year but still managed to burned through $1.7M just last year. At that rate and .05 bargain shares will add 34M shares a year just to cover the SG&A nut. This doesn’t contemplate reengineering the tons of rusting pipe now happily covered in Tomball.
“And again, QSEP has a solid share structure with minimal dilution over the many years they have been in business. So when revs start dropping they can pay off that measly 300k to Bigger and start buying back stock and shrink the float. “
Hmmmm this solid great share structure along with and buy backs and uplists talks sounds amazing but it’s an old song dance that has all the hallmarks of Qsep stock promotional campaigns. The train is always just about ready to leave the station so new Investors must hop on or forever be left at the gate. In reality 2018 will come and go and Qsep will again have zero sales and only prospects for shareholders to chew on will more ownership dilution.
