QS Energy Reports $2.16 Million Net Loss in Q2 2026, Seeks Additional Funding

QS Energy, Inc. has reported its financial results for the second quarter of 2026, revealing a net loss of $2.16 million, or $0.00 per share, compared to a net loss of $2.14 million, or $0.00 per share, in the same period last year. The company did not generate any revenue during the quarter, maintaining a trend from the previous year. For the six months ending June 30, 2026, QS Energy's net loss was $2.94 million, a significant reduction from the $11.81 million loss reported for the same period in 2025. This improvement is attributed to a decrease in operating expenses, which fell to $2.86 million from $11.40 million year-over-year.

The company's operating expenses for the second quarter increased to $2.13 million from $1.89 million in the prior year, primarily due to a rise in non-cash expenses related to stock compensation. However, total operating expenses for the first half of 2026 saw a substantial decline, reflecting a decrease in both cash and non-cash expenses. Research and development costs also decreased significantly, totaling $11,000 for the first half of 2026 compared to $151,000 in the same period last year, indicating a shift in focus as the company seeks to manage its financial resources more effectively.

In terms of strategic developments, QS Energy continues to pursue its primary technology, Applied Oil Technology (AOT), aimed at enhancing the efficiency of crude oil transportation. The company has not yet achieved commercial acceptance of its AOT product, which remains in the testing and development phase. QS Energy has entered into a collaboration agreement with VIPS Petroleum, LLC, to facilitate the deployment of AOT technology, although no purchase orders or revenue have been generated from this partnership to date. The company is also considering dissolving its subsidiary, QS Energy Pool, Inc., to reduce operational costs.

As of June 30, 2026, QS Energy reported total assets of $207,000, a significant increase from $55,000 at the end of 2025, primarily due to cash on hand rising to $120,000 from $6,000. However, the company also reported a stockholders' deficit of $5.50 million, down from $5.88 million at the end of 2025. The company has substantial liabilities, including $3.17 million in past due license agreement payables to Temple University, which raises concerns about its ability to continue as a going concern. Management has indicated that additional funding will be necessary to support ongoing operations and product development.

Looking ahead, QS Energy's management has expressed uncertainty regarding its ability to raise the necessary capital to continue its operations and advance its AOT technology. The company is actively seeking additional funding through debt and equity securities but acknowledges the challenges associated with securing financing on favorable terms. The outlook remains cautious as the company navigates its financial difficulties while striving to achieve commercial viability for its technology.