QS Energy Inc (QSEP)

[J.T. The DD King]

ZERO Fantastic news! Do you see the glass as 1/2 empty or full? This is the most exciting 10K EVAR!!! I'm confidiant the $4M minumim shareholder equity for NASDAQ was met long ago. We only needed a few hundred thousand last October & since then many warrants have been purchased as well as Cecil's options and Charles B.

I've got a billion & one filings to read & analyze this weekend but at first glance three things jump out at me with ZERO. Not even mentioning this is by far the best 10K from STWA I've ever read & feel it contributed the volume today by insiders. Normally I prepare to take a hit when the 10K comes out because of the Sarbnes-Oxley scare. According to my working theory on why a majority of penny stocks all do the same thing, I'm expecting Monday & Tuesday to be big green days & this just adds to it!

1. Cash position has increased dramatically to $1.6 million. (Don't ask me where they got a few million from since November, because I haven't a clue.)

2. More capital coming in and a nice impact on shareholders equity since end of year until February 13.  Helps to meet NASDAQ listing reqs!

3."The Company issued 5,215,496 shares of its common stock upon exercise of warrants for aggregate proceeds of $1,205,738.  Included in these issuances were 3,912,500 shares of common stock issued upon exercise of warrants that contained a reset provision that required these warrants to be accounted for as derivative liability.

THIS IS HUGE! --> Upon exercise of these warrants, $3,441,752 of derivative liabilities will be extinguished and accounted for in the first quarter of 2013."

4. Continue to make inroads and meet with key strategic potential customers in the following geographic regions:
a. Alberta, Canada
b. Williston, Bakken Basin, USA
c. Niobrara, Denver-Julesberg Basin, USA
d. Uinta-Piceanse Basin
e. Green River Basin
f. West Africa
g. Asia
h. Austral-Asia
i. South America