QS Energy Inc (QSEP)

[zerosum]

So am I. This is very good news. If we just signed an agreement with a sales outfit, I would have said that was very good also. But the two companies clearly have a deployment and a customer in mind, and this release will be followed by a contract for the deployment. The terms of which will be outlined in the forthcoming agreements they talked about. The MOU, and a collaboration agreement in June 2024.

As investors, what we want to see is a deployment, good data, and then a contract to outfit the line with AOTs. The release today shows a clear path to this. This is important:

This strategic partnership aims to facilitate the deployment of QS Energy's Applied Oil Technology (AOT) device to enhance the operational efficiency of VIPS Petroleum's customers

QS Energy and VIPS Petroleum have agreed to collaborate on deploying the AOT device to one or more of VIPS Petroleum's esteemed clients, marking a significant step forward in improving the efficiency and sustainability of oil transportation. The agreement outlines a comprehensive timeline, starting with the signing of a Memorandum of Understanding (MOU) and a collaboration agreement in June 2024. The deployment will commence with a customer contract expected to be finalized in July/August 2024, followed by the actual deployment of the AOT device between September and the end of the year. VIPS Petroleum will receive compensation in the form of ownership and commission, as detailed in the forthcoming MOU and definitive agreement.

They clearly have a customer for this deployment. Excellent. They have a set timeline which I'm also happy to see. VIPS will receive ownership and commission. They want it, they can have it if it helps QSEP sell AOTs. What's important here is the progress. Getting on another line, and getting data so we can sell to even more customers than VIP's customers although it sounds like they have several that QSEP can sell to. They go on to talk about the expectations of the installation of AOT:

The onboarding process for the customer includes an initial 30-day consideration period to ensure the AOT device meets set performance goals. The device must achieve predefined operational goals to proceed. Upon successful demonstration, customers can select the most suitable AOT purchase plan. Full-scale deployment will follow the successful completion of this evaluation period and goal achievement.

The AOT will have to meet operational goals in order to proceed. VIPS and the customer have clearly already seen results from the tests they were doing in the facility that QSEP was testing in. Which is why QSEP was letting us know and made a big deal about them in updates. Remember this recent update, I think it was important:

At long last we have made it. Aside from supply chain shortages, backlogged labor support, and of course the recent weather-related challenges, we had a successful AOT Hydrostatic test yesterday. Despite the compounding issues, we are proud to report that the AOT works at a full voltage of 40KV, well beyond the treatment field. We took the cautious and necessary steps to ensure this final iteration of AOT can go straight to a field test to be determined.

Let us celebrate once again the positive hydrostatic test just over a month ago. As you would expect, our next step is to follow up with our existing or future development partner(s). Since last year, communication has been well underway from where we left off with whom was our existing development partner in June 2020. Furthermore, we have garnered the attention of a new set of individuals that could consolidate the involvement of new development partner(s).

This release is a culmination of many months of talks and showing people AOT can deliver. The customer obviously liked what they saw enough to move forward with a deployment of AOT.

In light of this, I think it's relevant we revisit was Kyte also said;

Since last year, communication has been well underway from where we left off with whom was our existing development partner in June 2020. Furthermore, we have garnered the attention of a new set of individuals that could consolidate the involvement of new development partner(s).

I would emphasize that the timing and participation of such efforts are designed to yield results that would surpass what we established in late 2013 with TransCanada. In the coming weeks we expect to have our second engineering call with relevant parties to what should culminate into a formal relationship and predictable benefits.

I thank you for your patience and support as we navigate our final path to commercial viability.

I honestly just have sat back with a skeptical eye after investing in the .03 offering. I made a lot of money on this stock years ago, so there isn't much risk in having a position much smaller than my profits. But if you connect the dots everything the CEO has talked about is coming to pass, albeit it took a lot longer than we all hoped to see any progress. I said it before. If what the CEO said about the TransCanada deal is accurate then this stock will do very well for those holding shares.

It sounds like they have several PR's about to come out about this very soon, in June, July/August. I think this news and the following agreements and contracts makes the share price look way way too low. As we get closer to contract over the next two or three months I think we will see a much higher share price. If the market decides to start building in expectations of a full scale deployment sooner... exactly not rocket science. One thing is for sure is I think sentiment on this is at a low, and most have thrown in the towel if not actually then mentally. You can make the most money in stocks when things go from terrible to just ok. If it looks to the overall market (not people here) like QSEP might actually get a contract and adoption and sales then this stock will do very well from these levels.