QS Energy, Inc.

February 19, 2016

Market Data

Fiscal Year December
Industry Oil & Gas Services
Market Cap $34.8M
Price/Earning (ttm) N/A
Price/Book (mrq) N/A
Insider Ownership 3.5%
Shares Outstanding 183.2M
Equity Float 165.3M
Avg. Volume (3 mo.) 98,997
As of February 19, 2016

Income Statement Snapshot

Revenue (TTM) $0.0M
Net Income (TTM) ($4.4M)

Balance Sheet Snapshot

Cash(MRQ) $0.6M
Debt (MRQ) $0.2M

QS Energy, Inc., develops and commercializes patent-protected industrial equipment designed to deliver measurable performance improvements in the operation of crude oil pipelines throughout the upstream, midstream and downstream sectors of the global oil and gas industry.

The Company’s flagship product, AOT™ (Applied Oil Technology), is the industry's first customizable line of crude oil pipeline flow improvement technologies using an electrical charge to coalesce microscopic particles native to unrefined oil, thereby reducing viscosity, increasing flow volume, and addressing the enormous capacity inadequacies of domestic and overseas pipeline infrastructures.

Developed in partnership with Temple University (Philadelphia, Pa.) and undergoing commercialization in collaboration with approximately 30 engineers and 19 vendors, AOT has been installed on closed loop test infrastructures and high-volume commercial crude oil pipelines with its efficacy measured and validated by independent scientists and researchers in detailed reports fully documented in the Company’s 8-K, 10-K and 10-Q filings.

By definitively demonstrating to the leading entities in the energy sector AOT’s ability to improve flow, increase the volume of transported oil, mitigate bottlenecks, and reduce operating expenses while increasing toll rate revenues, QS Energy has successfully executed commercial deployments under revenue-generating equipment lease-purchase agreements with two of North America’s largest vertically integrated energy companies.

QS Energy is establishing a strong leadership position within the $6 trillion global energy industry with high value, patent-protected technologies which employ the use of electrorheology (electrical charges to change the viscosity and/or mechanical properties of fluid) to treat a wide spectrum of crude oil and improve the efficiency and economics of transporting the worldwide output of unrefined petroleum products.

QS Energy currently has five fully-functioning, ready-to-deploy AOT Viscosity Reduction Systems in inventory and several configurations of single- and multi-vessel AOT systems have been extensively field tested by globally recognized independent testing organizations, including the U.S. Department of Energy, ATS RheoSystems, and PetroChina/The China Petroleum Pipeline Bureau.

The Company’s intellectual property portfolio includes 47 domestic and international patents and patents pending which have been exclusively licensed and developed independently and in conjunction with Temple University. QS Energy and its distribution partners, Energy Tech Africa (Kenya) and Norront AS (Norway), have over a dozen existing non-disclosure, joint-venture and/or pipeline optimization analysis agreements in place with pipeline operators in six of the world’s leading oil production regions within the midstream, the sector of the energy industry that transports the bulk of worldwide crude oil output via 400,000 miles of pipeline.

In response to the current weakening of the commodities markets, QS Energy has created a wholly-owned subsidiary, QS Energy Pool, to identify and acquire distressed assets out of bankruptcy, at auction, through direct purchase and other quick-strike opportunities to capitalize on today’s remarkable buy-side opportunities. Managed and operated by the QS Energy executive management team and Board of Directors, QS Energy Pool is guided by an Advisory Board comprised of energy industry veterans with extensive oil and gas market experience and well qualified in pre-vetting acquisition targets. QS Energy Pool has revenues, assets, a clean balance sheet, and no direct expenses.

  • QS Energy, Inc.: Optimizing the Efficiency and Safety of the Global Crude Oil Pipeline Infrastructure
  • Sole Energy Industry Vendor of Patented-Protected Pipeline Performance Optimization Technology
    • Worldwide leader in pipeline flow improvement technology utilizing controlled electrical charges
    • Industry’s only pipeline performance solution not based on DRA (drag reducing agents), diluents or heat
    • Approved for commercial use in hazardous location Class 1, Div. I. rated areas
    • Exclusive licensee in perpetuity of 47 worldwide patents related to the use of electrical fields to treat crude oil, liquid natural gas and other petroleum products
    • AOT efficacy tested and verified by globally recognized independent testing organizations (U.S. Department of Energy, ATS RheoSystems, PetroChina/The China Petroleum Pipeline Bureau)
    • Successfully fabricated, installed and managed operation of customized AOT deployments on two modern, high volume pipelines (Kansas, Texas)
    • Currently in non-disclosure level discussions with pipeline operators in six of the world’s primary oil transportation corridors
    • Detailed engineering proposals for AOT deployments actively under consideration with entities in the U.S., Europe, Iraq, Africa and Canada
    • Maintains lean operations, low overhead, no manufacturing facilities; all fabrication contracted to supply chain partners in Casper, Wyoming
    • Fully Sarbanes-Oxley 404 compliant with accelerated filer status

  • QSEP Subsidiary: Undervalued Oil Field Services, Properties and Assets Acquisition Strategy
  • Special Purpose Vehicle Established to Execute on Opportunistic Acquisitions
    • Established for the express purpose of targeting non-operated oil and gas lease assets, mineral rights, and royalties, with proven positive cash flow during global commodities down cycle
    • Acquisitions held and managed by QS Energy, Inc., adding revenues to balance sheet and building shareholder value
    • Ideally positioned as a publicly traded entity to fund acquisitions through private placement of convertible notes, convertible to shares of common stock of QS Energy, Inc.
    • Ownership or controlling interest in oil field service entities, oil and gas exploration and production companies, and/or properties or leases may be accretive to and highly synergistic with QS Energy’s current operations
    • Strong, dedicated Advisory Board comprised of well-connected energy industry veterans able to source assets and analyze acquisition targets
    • New legal entity with revenues, assets, a clean balance sheet, zero liabilities and no direct expenses

  • QS Energy Serves an Extremely Capital-Intensive Industry:
    • The Energy Information Administration (EIA) projects $38 trillion of investment capital for existing and new capacity by 2035 to meet growing global demand for energy
    • IHS Global and the American Petroleum Institute report that investment in the oil and gas midstream and downstream infrastructure jumped 60% from 2010 to 2013, increasing from $56.3 billion to $89.6 billion and approximately $90 billion of direct capital will be spent on oil and gas infrastructure in 2016
    • The U.S. Department of Energy estimates that developers of the nation’s midstream facilities will need to invest $200 billion to accommodate expected shale-driven industry output by 2035

Company Website

Investor Contact Info:
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1017 Maitland Center Commons Blvd.
Maitland, FL 32751
(407) 644-4256



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