This update is aimed to serve as an explanation for the recent delays which we have had to endure starting with the filing for an extension of our 2023 annual report.

First off, this delay is due to our Auditors’ workload and not to any untimely delivery of our financial information required to complete such an Audit.

This is not to be interpreted as a failure on our part and consequently does not add up to any QS Energy material insecurities or deficiencies. We expect their efforts to complete the Audit within a few business days of the time of this publishing. When completed, the Annual Report will be filed with the SEC in support of our status quo which leads me to my next point.

As far back as 2021, this team took responsibility for bringing our filing status current as our first order of business. After that achievement we evaluated, reworked, and finally retested AOT to commercial viability. Our final task is to source a commercial relationship which has been identified but not yet brought to a formal contract. As we have rationalised the multiple relationships and sequences the accordingly, their identities will be revealed soon enough.

The negative communications of late are understandable frustrations from a fatigued shareholder base. My message is a request for the sustained patience once given in support of previous and better sourced administrations. To give into fear, anxiety, and suspicious minds is only to give into the adversarial forces that have opposed this company for far too long.

This is more than a start over company. It has become a religion, a belief system, a modern-day crusade. Please maintain your equanimity and conviction.

Cecil Bond Kyte

Chairman & CEO

Safe Harbor Statement

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About Applied Oil Technology

QS Energy’s patented Applied Oil Technology (AOT) is a solid-state turn-key system which uses a high volt / low amp electric field to reduce crude oil viscosity. AOT installs inline on crude oil pipelines, operates unattended without interrupting pipeline flow, with full remote monitoring and control. More information is available online here.

About QS Energy

QS Energy, Inc. (OTCQB: QSEP), develops and markets crude oil flow assurance technologies designed to deliver measurable performance improvements to pipeline operations in the midstream and upstream crude oil markets. More information is available here.