QS Energy Reports No Revenue and Significant Losses in Latest Financial Filing

QS Energy, Inc. reported significant financial challenges in its latest 10-Q filing for the quarter ending June 30, 2025. The company recorded no revenue during the period, maintaining a consistent trend from the previous year. Operating expenses surged to $11.4 million for the six months ended June 30, 2025, compared to $527,000 for the same period in 2024, marking an increase of over 2,000%. This increase was primarily driven by a rise in stock-based compensation and other operational costs, leading to a net loss of $11.8 million, compared to a loss of $782,000 in the prior year.

The company's balance sheet reflects a stockholders' deficit of $4.1 million as of June 30, 2025, an improvement from a deficit of $5.7 million at the end of 2024. Total assets increased to $813,000, up from $164,000 at the end of the previous fiscal year, largely due to an increase in cash reserves, which rose to $778,000 from $150,000. However, total liabilities remained unchanged at $4.9 million, indicating ongoing financial strain.

Strategically, QS Energy has focused on advancing its Applied Oil Technology (AOT), which aims to enhance the efficiency of crude oil transportation. The company has not yet achieved commercial acceptance of this technology, which remains in the testing phase. Despite the lack of revenue, QS Energy has engaged in partnerships, including a collaboration with VIPS Petroleum to explore deployment opportunities for its AOT technology in various international markets, including Malaysia and India. However, no contracts have been finalized, and the company has not yet received any purchase orders.

Operationally, QS Energy has faced challenges in its research and development efforts, with total R&D expenses reaching $151,000 for the first half of 2025, up from $95,000 in the same period last year. The company continues to seek additional funding to support its operations and product development, emphasizing the need for capital to sustain its business model. Management has indicated that current cash reserves are expected to last until October 2025, underscoring the urgency for securing further financing.

Looking ahead, QS Energy's management remains cautious, acknowledging substantial doubt about the company's ability to continue as a going concern without additional funding. The company is actively pursuing various financing options, including the issuance of debt and equity securities, to support its ongoing operations and strategic initiatives. However, there are no assurances that such financing will be available or on favorable terms.