QS Energy Files Q3 2024 10-Q

Ticker: QSEP · Form: 10-Q · Filed: Nov 14, 2024 · CIK: 1103795

Sentiment: neutral

Topics: 10-Q, financials, oil-gas-equipment

TL;DR

QS Energy's Q3 2024 10-Q is in. Financials for convertible notes and equity are updated.

AI Summary

QS Energy, Inc. filed its 10-Q for the period ending September 30, 2024. The company, operating in the Oil & Gas Field Machinery & Equipment sector, reported its financial status. Key financial data points such as convertible notes payable and equity components were disclosed for various periods throughout 2023 and 2024.

Why It Matters

This filing provides investors with an update on QS Energy's financial health and operational status for the third quarter of 2024, crucial for investment decisions.

Risk Assessment

Risk Level: medium — The filing is a standard quarterly report, but the company operates in a volatile industry, and specific financial details beyond basic reporting are not immediately apparent from this header.

Key Numbers

Key Players & Entities

FAQ

What were the specific figures for convertible notes payable as of September 30, 2024, and December 31, 2023?

The filing indicates data for us-gaap:ConvertibleNotesPayableMember for both 2024-09-30 and 2023-12-31, but the exact dollar amounts are not present in this header section.

What is the SIC code for QS Energy, Inc. and what industry does it represent?

The SIC code is [3533] and it represents OIL & GAS FILED MACHINERY & EQUIPMENT.

When was the company formerly known as SAVE THE WORLD AIR INC?

The company changed its name from SAVE THE WORLD AIR INC on 20000120.

What is the business address of QS Energy, Inc.?

The business address is 23902 FM 2978, TOMBALL, TX 77375.

What periods does the 10-Q filing cover for financial reporting?

The filing covers the period ending 2024-09-30, with comparative data points for 2023-12-31 and other dates within 2023 and 2024, including quarterly periods like 2024-07-01 to 2024-09-30.

Filing Stats: 4,355 words · 17 min read · ~15 pages · Grade level 16.9 · Accepted 2024-11-14 13:06:30

Key Financial Figures

Filing Documents

Forward-Looking Statements

Forward-Looking Statements This Quarterly Report on Form 10-Q contains forward-looking statements. These forward-looking statements include predictions and statements regarding our future: revenues and profits; customers; research and development expenses and efforts; scientific and other third-party test results; sales and marketing expenses and efforts; liquidity and sufficiency of existing cash; technology and products; and the effect of recent accounting pronouncements on our financial condition and results of operations. You can identify these and other forward-looking statements by the use of words such as "may," "will," "expects," "anticipates," "believes," "estimates," "intends," "project," "potential," "forecast" "continues," "strategies," or the negative of such terms, or other comparable terminology, and also include statements concerning plans, objectives, goals, strategies and future events or performance. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth below under the heading "Risk Factors." We cannot assure you that we will achieve or accomplish our expectations, beliefs or projections. All forward-looking statements included in this document are based on information available to us on the date hereof. We assume no obligation to update any forward-looking statements. 2 QS ENERGY, INC. FORM 10-Q INDEX

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION 4

Unaudited Condensed Consolidated Financial Statements

Item 1. Unaudited Condensed Consolidated Financial Statements 4 Condensed Consolidated Balance Sheets 4 Condensed Consolidated Statements of Operations, Unaudited 5 Condensed Consolidated Statement of Stockholders' Deficit, Unaudited 6 Condensed Consolidated Statements of Cash Flows, Unaudited 8 Notes to Condensed Consolidated Financial Statements, Unaudited 9

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 18

Quantitative and Qualitative Disclosure about Market Risk

Item 3. Quantitative and Qualitative Disclosure about Market Risk 29

Controls and Procedures

Item 4. Controls and Procedures 30

– OTHER INFORMATION

PART II – OTHER INFORMATION 31

Legal Proceedings

Item 1. Legal Proceedings 31

Risk Factors

Item 1A. Risk Factors 31

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 31

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 31

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 31

Other Information

Item 5. Other Information 31

Exhibits

Item 6. Exhibits 32

SIGNATURES

SIGNATURES 33 3 PART I – FINANCIAL INFORMATION

Unaudited Condensed Consolidated

Item 1. Unaudited Condensed Consolidated

Financial Statements

Financial Statements QS ENERGY, INC. Condensed Consolidated Balance Sheets September 30, 2024 (unaudited) December 31, 2023 ASSETS Current assets: Cash $ 237,000 $ 70,000 Prepaid expenses 12,000 12,000 Total current assets 249,000 82,000 Property and equipment, net of accumulated depreciation of $ 101,000 and $ 99,000 at September 30, 2024 and December 31, 2023, respectively 1,000 2,000 Total assets $ 250,000 $ 84,000 LIABILITIES AND STOCKHOLDERS' DEFICIT Current liabilities: Accounts payable-license agreements - past due $ 2,374,000 $ 2,198,000 Accounts payable and accrued expenses 952,000 972,000 Convertible notes payable, net of discounts of $ 170,000 and $ 25,000 , respectively; includes $ 2,287,000 and $ 2,022,000 , respectively, in default 2,438,000 2,101,000 PPP loan payable 38,000 57,000 Total current liabilities 5,802,000 5,328,000 Total liabilities 5,802,000 5,328,000 Commitments and contingencies – Stockholders' deficit Common stock, $ 0.001 par value: 500,000,000 shares authorized, 410,598,209 and 392,586,471 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively 410,598 392,587 Additional paid-in capital 120,550,402 119,729,413 Accumulated deficit ( 126,513,000 ) ( 125,366,000 ) Total stockholders' deficit ( 5,552,000 ) ( 5,244,000 ) Total liabilities and stockholders' deficit $ 250,000 $ 84,000 See notes to condensed consolidated financial statements. 4 QS ENERGY, INC. Condensed Consolidated Statements of Operations, Unaudited Three months ended Nine months ended September 30, September 30, 2024 2023 2024 2023 Revenues $ – $ – $ – $ – Costs and Expenses Operating expenses (including $ 45,000 in compensation to related party in the three and nine months ended September 30, 2024) 231,000 164,000 758,000 508,000 Research and development exp

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