QS Energy Reports No Revenue and $9.7 Million Net Loss in Latest 10-Q Filing

QS Energy, Inc. reported significant financial challenges in its latest 10-Q filing for the quarter ending March 31, 2025. The company recorded no revenue during this period, maintaining a trend from the previous year. However, operating expenses surged to $9.5 million, a stark increase from $326,000 in the same quarter of 2024. This rise is attributed primarily to non-cash expenses related to stock compensation, which accounted for approximately $8.1 million of the total operating expenses. Consequently, QS Energy reported a net loss of $9.7 million, or $0.02 per share, compared to a net loss of $449,000, or $0.00 per share, in the prior year.

The company's financial position has deteriorated, with total liabilities remaining constant at $4.9 million as of March 31, 2025, compared to $5.9 million at the end of 2024. The stockholders' deficit improved slightly to $4.3 million from $5.7 million, primarily due to the issuance of common stock and convertible notes. The company’s cash reserves increased to $526,000 from $150,000, but management indicated that these funds would only sustain operations through approximately June 2025 without additional financing.

Strategically, QS Energy continues to focus on 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. In recent months, QS Energy has entered into a collaboration agreement with VIPS Petroleum, LLC, to explore deployment opportunities for its AOT technology. However, as of the filing date, no contracts have been finalized, and the company has not generated any revenue from these initiatives.

Operationally, QS Energy has faced ongoing challenges, including past-due obligations totaling $1.2 million in convertible notes and $2.5 million in license agreement payables to Temple University. The company has not reported any significant changes in customer counts or product adoption rates, indicating a stagnant market presence. The employee headcount remains unspecified, but the company has acknowledged a need for improved internal controls and financial reporting capabilities.

Looking ahead, QS Energy's ability to continue operations hinges on its capacity to secure additional funding. The company is actively seeking to raise capital through debt and equity financing to support its ongoing research and development efforts, as well as to meet its contractual obligations. Management has expressed uncertainty regarding the availability of future financing and the terms that may be offered, raising concerns about the company's long-term viability.