Qsep management must believe its investors never check its time estimates and they are obviously still ok with making predictions that they never seem to hit. Usually this is not a great character trait of a public company..but in penny land it seems to be a requirement listed on an executive comp package!
Repairs to the power supply were completed in early August 2019. We plan to install the repaired power supply and test the AOT unit at higher power in August 2019; however, based on recent laboratory tests, we expect conductivity of the crude oil to inhibit the AOT’s ability to reach sufficient voltage to fully treat the crude oil. We are also working with the power supply vendor to assess power supply configurations to increase the power output and to match a new power supply to the design of a new grid pack and the target oil. We are also working on modifications to the internal configuration of the AOT grid pack to reduce power requirements when treating highly conductive crude oil. Once we complete the next round of full-scale testing at the demonstration site, we will determine if modifications are required. Our next course of action will be determined at that time. Based on current plans, required modifications, if any, should be installed and ready for testing in the fourth quarter of 2019.
“Tomball we’ve had a problem”
While management focused on finding a partner and finalizing terms of the demonstration project, our engineering team worked throughout 2018 to improve our AOT design and prepare one of our inventoried AOT units for deployment. All system upgrade, inspections and testing protocols were completed in December 2018, and the AOT unit is now ready for delivery to the demonstration site. The pipeline operator finalized site selection and began site design and engineering in January 2019. We shipped the AOT equipment to the demonstration site in April 2019. Based on the most recent project update provided by the pipeline operator, we anticipate installation to be completed in late May 2019 and anticipate demonstration operations to begin early June 2019.
<<begin demo early June>>
Plans moving forward are centered on achieving commercial adoption of our AOT device leading to sales and revenue in 2019. Over the past year, we have met with many industry executives who expressed interest in AOT subject to seeing and evaluating commercial operations and data. Assuming successful operations, the demonstration AOT project should provide data requested such as real-time changes in viscosity, pipeline pressure drop reduction and increases in pipeline operating flowrates. All collected data will be normalized such that it can be used to evaluate the financial and operational benefits across a wide range of commercial operating scenarios without disclosing confidential details of our demonstration partner’s operations. We believe that real-world data from our proposed pilot AOT project may be used to accelerate our desire to achieve commercial adoption of our AOT technology, positioning us to re-engage with industry executives, targeting sales in late 2019.
Based on the most recent project update provided by the pipeline operator, we anticipate shipping the AOT equipment to the demonstration site in early April 2019, with installation to be completed in late April. We anticipate demonstration operations to begin early May 2019.
<<begin demo Early May>>
Upon completion of inspection and testing protocols, the modified AOT was certified for operations and is now ready for delivery to the demonstration site. We expect site preparation (foundation, electrical interconnect, etc.) to begin in January, with delivery, installation and operations to begin shortly thereafter.
From October 2018:
Although final project terms may vary from those described in the current statement of work, we and the operator have a general understanding that, subject to the execution of a definitive agreement, the demonstration project will operate under an initial term of 36 months, targeting installation in December 2018”
<<target demo date Dec 2018 ho ho ho>>
From May 2018 update:
We are continuing to make progress on our 2018 targets for the installation and operation of one or more demonstration projects, with four customers at the site-location phase. In addition, we have begun to build supplemental relationships outside of the midstream market, with gaining interest in trucking and ocean shipping. Once again, we thank you for your support and we look forward to a great year.
From March 2018 update :
“I would like to update you on progress we've made since my previous shareholder update letter. In January, I described three prospective customers considering AOT pilot programs. I am excited to report the first of these three potential pilots has received preliminary approval and has moved from concept to planning phase, targeting pilot installation in July 2018.”
From Jan 2018 update:
“Based on current timelines and discussions, we are projecting installation of our first pilot test in Q2-Q3 2018, followed by 30 to 60 days of testing to be completed by the end of Q3 2018. Subject to successful testing, we would execute definitive agreements to sell or lease equipment for the expanded rollout as defined in the original LOI in Q4 2018.
Based on current discussions with prospective pilot customers, we believe this schedule is achievable, putting us on target to begin commercial deployment by year-end. Armed with pilot project data, we should be positioned for accelerated sales in 2019 and beyond.”
<<claiming 2019 sales... is the modern day equivalent to “I have bridge for sale!”>>