Replies to post #12206 on QS Energy Inc (QSEP)

[alkalinesolution1]

Excellent, thanks.

We also need to keep in mind that TransCanada paid for the installation and all the prepatory work this time. From what I can tell between the lines, those costs may have been millions of dollars too. STWA learnt a lot from it, and I think in the future they will be capable of handling installation themselves. So I'm guessing in future they price that into the whole contract - installation, servicing (parts inside the pressure vessel need to be changed every so often), etc.. That is what the talk of acquisitions is about: STWA intends to take over businesses that already do this work.

In the end however I expect the profit margins to be extremely healthy and even fat. That is what happens when you get monopolistic control of a unique, new, original, and extremely powerful technology in a highly profitable industry. The AOT is a perfect case study of the 'competitive moat' that is the holy grail of investors.

[mr_sano]

From the 10 k

"Our business model is to acquire and license intellectual properties which the Company believes hold potential for development to commercial application. From there, the idea is developed into a test prototype series for validation that the idea is scalable to full-size from the laboratory, and then developed further to a commercial-grade series of niche products for the intended market. The manufacturing of the commercial-grade products is then conducted by third-party vendors and suppliers under contract(s) with the Company. These vendors are broken up by product component subcategory, enabling multiple manufacturing capacity redundancies and safeguards to be utilized. In addition, the strategy allows the Company to eliminate the prohibitively high capital expenditures such as costs of building, operating and maintaining its own manufacturing facilities, ratings, personnel and licenses, thereby eliminating unnecessary capital intensity and risk. "

Third party manufacturing! That means zero comes up with the product and and then hands it off to a manufacturer who will likely do all servicing install and engineering etc . Outside of a milestone payment the billions in sales will be going to the third party and then temple and zero will get a licensing fee. Unless of course zero wants to spend 20m on a factory and distribution network ....I'm guessing no!

[zerosum]

Agreed. Everyone seems to be forgetting about the absolutely enormous carry forward tax loss that stwa has in their pocket. Yeah, that's right, STWA will pay absolutely ZERO in taxes on any profits for a long time due to the huge tax losses they have accumulated throughout the years. Ha, people may want to work those into their estimates. Any profit for years to come will be TAX FREE

Taxes probably won't be a problem for awhile as we should have plenty of tax loss carry forwards.