Replies to post #4607 on QS Energy Inc (QSEP)

[SeaOhToo]

Are you saying some of these warrants were not exercised and the holder past on putting more than $1 per warrant profit in his pocket?
The holder made over $1,951,132 in short order.


"The last warrants that were exercised were issued on July 31st 2011 and expired on July 31st 2013. They provided the option to purchase 1,951,132 shares at 30 cents each, resulting in a total potential income to STWA of $585,339. I have not been able to establish precisely how many of these options were purchased, but whatever the amount, this money is already in the bank. "

Warrants are exercised, not purchased. You already established 1,951,132 warrants were issued.

[SoxFan]

Just in my post I quoted directly from the 10K for the year ended in 2012. Not 2011 but 2012 and right there in black and white they tell you that they issued convertible notes and warrants of which over 90% were exercised from that issuance of paper.

During 2012 they issued over 14.7 million shares as a direct result of convertible notes and warrants of which the vast vast majority of them were exercised. And if you look at all the stock that was issued in 2012 for whatever reason - paying of consulting fees, paying suppliers, paying directors or executives the total was over 29 million. So the convertible notes was not even a majority of the stock issued.

If you need more help please go to the 10K for year ending December 31, 2012 as it right on their web page.

[Perfection and ease]

Total diluted stock currently at 209m shares?

First, vraiment thanks for your recent post on a summary of warrant offerings - can you confirm without me having to hunt (lazy!) which class of filings show this information about the share and warrant issues?

Also I am curious about total full dilution as things stand. From my reading of the recent 10-Q it looks to me like the total shares for which options and warrants exist added to the shares in issue amount to about 209 million - slightly more than the currently authorised shares limit. Which is why, if my reading is correct, the Execs (CEO and CFO) have entered into a restriction on the exercise of their options until/unless the total authorised share capital is raised. But I am not sure I am reading it right.

In the recent 10-Q, section 5 on Stock Options and Warrants, it says:

The Company’s Chief Executive Officer (CEO) and Chief Financial Officer (CFO), holders of options to purchase shares of common stock in the aggregate of 22,700,000 shares, each signed a declaration providing additional restriction on conditions under which they could exercise vested options to purchase stock. Specifically, the CEO and CFO are restricted from exercising options (“Restricted Options”) until the Company has authorized additional shares in its articles of incorporation such that the execution of the Restricted Options could not cause outstanding shares to exceed the current authorized shares on a fully diluted basis. In the absence of this restriction, the total exercisable shares as of June 30, 2013 would be 13,688,098.

I feel that the last line is not written correctly - that actually it meant to say in the presence of this restriction (not absence) CEO and CFO will only be able to exercise 13.6m options at present. Hence to exercise their full options would take us to about 209m shares.

This is reinforced by a conversation I had with Cecil a year back when I asked him and he indicated the total would be - I think he said - 215m - if at that time, all options were fully exercised. (I was impressed because he had the exact figures to reference, along with a lot of other statistics in the folder he was carrying).

Anybody read this differently?