QS Energy Inc (QSEP)

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Based on the confirmation of these most recent and positive results using the fully assembled AOT, a medium gravity pipeline spec oil (API 23) was procured and pumped into the AOT. We ran the AOT with the reworked original grid pack for an hour at 10 kV and saw no anomalies and no short circuits, confirming our belief that the short condition was a result of failed insulation. We were then able to apply 20 kV to the oil despite utilizing a reworked original grid pack. This high voltage result seems to demonstrate that we have solved the problems reported in June of 2020. Subsequent testing in the laboratory showed the oil (API 23) would support a voltage of 40 kV. Between the laboratory data and issues found during recent component testing we are in the process of confirming the final design criteria for a new grid pack which represents the remaining 20% necessary for full treatment effect.