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QS Energy Inc (QSEP-5.34%). has submitted its 10-K annual report filing for the fiscal year ended December 31, 2024.
The filing outlines the company's ongoing efforts to commercialize its Applied Oil Technology (AOT), a crude oil pipeline transportation product. The AOT technology aims to reduce crude oil viscosity and improve pipeline flow rates.
QS Energy reported a net loss of $1,934,000 for the year, compared to a net loss of $1,224,000 in the previous year. The company attributes the increase in loss to higher operating expenses, which rose to $1,385,000 from $688,000.
Research and development expenses were slightly reduced to $191,000 from $203,000. The company continues to invest in the development and testing of its AOT technology.
As of December 31, 2024, QS Energy had cash reserves of $150,000 and a stockholders' deficit of $5,698,000. The company has acknowledged substantial doubt about its ability to continue as a going concern without additional funding.
The report details that QS Energy has been funding its operations primarily through the issuance of convertible notes and warrants. In 2024, the company issued convertible notes totaling $1,353,000 and associated warrants.
The company has contractual commitments, including license fees to Temple University and obligations to a former officer, amounting to $1,134,500 over the next five years.
QS Energy's management is actively seeking additional capital to fund its operations and continue the development and commercialization of its AOT technology.
The company has identified risks related to its business operations, including its dependence on external financing, the unproven commercial viability of its technology, and potential competition in the market.
QS Energy's stock is thinly traded on the OTC Bulletin Board, and the company does not pay dividends, opting instead to reinvest any future cash flows into its operations.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the QS Energy Inc annual 10-K report dated March 28, 2025. To report an error, please email earnings@qz.com.