QS Energy Inc (QSEP)

[Zizek]

Two thoughts - First on Mag-Tek. Your DD skills could use a bit of work, since it's not based out of a farmhouse. But yes, they are a small operation, but that doesn't prevent them from supplying solutions to Shell, Chevron, Marathon, and plenty of smaller drilling companies. But all the speculation about upstream is very preemptive. Of course AOT can be deployed in this market, and likely will with time. But there is wisdom in not expecting the company to rapidly focus on this market.

Second and more importantly, finances. This past quarter, total spending (including the +$500k R&D budget) was around $2.3M. Despite these expenses, the total cash on hand from Q2-> Q3 only diminished ~$500k ($4.3M -> $3.8M). Where did this money come from? Obviously the conversion of warrants. Which are being exercised by various members of the board. So yes, we can lament people are being paid salaries we don't agree with, but this doesn't take into account that significant chunks of these salaries are simply being reinvested back into the company. In your judgment for STWA "to be fiscally responsible the company insiders should be paid in stock." I get that argument and don't disagree with it. But if you look at where current funding is coming from, you'll see that's effectively what's happening anyway.