Business
QS Energy Issues Chairman's Letter
QS Energy Issues Chairman's Letter.
About this update from Qs Energy, Inc.
[{"type":"text","content":"\nQS Energy Issues Chairman's Letter\n\nQS Energy Issues Chairman's Letter\n\n\n SANTA BARBRA, CA--(Marketwired - May 23, 2016) - \n \n Chairman's LetterThe Value Proposition of Our Patented AOT™ Technology in Today's Efficiency-Minded Energy Industry\n What technology is QS Energy seeking to commercialize within the global energy industry?\n \n QS Energy is the only vendor in the world selling and leasing industrial hardware based on the principles of \"electrorheology\", or the use of electrical fields, to optimize the performance of crude oil pipelines. Our flagship product is called AOT, for Applied Oil Technology, and was jointly developed by Temple University's Department of Physics/College of Science and Technology in Philadelphia and is protected by 47 worldwide patents and patents pending. When installed at pumping stations on commercially-operated pipelines, AOT increases flow volume and thereby improves the economics of the operation of virtually any size or configuration of pipeline.\n How does QS Energy plan to make money? What are the revenue streams it has available as an entity active in the energy sector?\n QS Energy is establishing a strong leadership position within the $6 trillion global energy industry with a tight focus on hardware which uses electrical charges to change the mechanical behavior of crude oil. In simple terms, our AOT system subjects crude oil to a high-voltage/low-amperage electrical field to reduce its viscosity, which permits it to flow in higher volume. By lowering the \"thickness\" of crude oil and its resistance to flowing freely, our technology improves the performance of pipelines. Our revenue model is two-fold. The Company's proposed primary income is based on AOT Equipment Lease/Option to Purchase Agreements. Due to our ability to configure customized AOT deployments to deliver optimal results to our customers, we are seeking to structure AOT installations pursuant to lease agreements with an initial term of no less than 4 or 6 months, and an option to extend the agreement for 84 months. As documented in an 8-K filing on August 2, 2013, the first such agreement for a four-vessel AOT system, installed to test the commercial efficacy of our technology, generated $240,000 USD revenue for the Company and included an option to purchase the equipment outright at any time for $4.3M U...