Cyclone Power Technologies, Inc
Website: http://www.cyclonepower.com Facebook Filings at the SEC Filings at OTC Markets (including pre-SEC filings)
Cyclone describes themselves as a research and development company who have developed a modern steam engine. They have produced some prototype engines, but have no commercially available products and have never publicly demonstrated a running engine.
Chairman and CTO Harry Schoell had spent many years in the powerboat industry. His company, Schoell Marine, occupies a 6000 square foot building in Pompano Beach, Florida. Schoell has no education beyond high school and describes himself as an inventor. In the early 2000s he experimented with steam engines. In an article in Professional Boatbuilder magazine April/May 2016 page 29 Schoell explained the reason he created Cyclone Power Technologies:
The past 10 years he has devoted his mind and resources to compact steam engines. "We wanted to build a clean-air multi-fuel engine, because it fit the times and the marine industry was faltering," he says.
After Cyclone Power started raising money from investors, Schoell had Cyclone lease the entire Schoell Marine building and enter a services contract with Schoell Marine, his privately held company.
Use of Funds:
| ||Research & |
|General & |
|Property & |
|2007 Annual Report ||814,685 ||674,774 ||14,777 || |
|2008 Annual Report ||1,090,911 ||1,139,878 ||19,695 || |
|2009 Annual Report ||1,115,795 ||1,332,757 ||78,130 ||1 |
|2010 Annual Report ||830,611 ||1,241,379 ||83,784 || |
|2011 Annual Report ||983,276 ||2,628,835 ||108,243 ||2 |
|2012 Annual Report ||1,091,501 ||2,203,713 ||376,177 ||3 |
|2013 Annual Report ||772,795 ||2,100,104 ||376,763 || |
|2014 Annual Report ||845,499 ||1,890,152 ||163,166 ||4,5 |
|2015 Annual Report ||275,610 ||653,103 ||126,520 ||4 |
|2016 Annual Report ||478,299 ||967,706 ||93,272 ||6 |
|Totals ||8,298,982 ||14,832,401 || || || ||Notes: |
1: $39,953 of the increase in property and equipment was leasehold improvements
to Harry Schoell's building.
2: $27,751 of the increase in property and equipment was leasehold improvements
to Harry Schoell's building.
3: Equpment increased 270,396 with no explanation. This was the year Cyclone
had a land speed record race car custom built.
4: The 2014 report was filed two years late. The 2015 report was filed one year late.
Cyclone switched to new auditors for these reports. There were large write-downs
of the value of inventory, which were added to the R&D expenses. The numbers
given here are the actual R&D spending in each year.
5: By 2014 total leasehold improvements on Harry Schoell's building had reached $93,922.
6: Cyclone again switched auditors. R&D is net of inventory provisions.
Even though Cyclone claims to be an R&D-only company, for every dollar spent on R&D, almost two dollars have been spent on General & Administrative. That spending has never been broken down, but the only place most of it could have gone is into the services contract with Schoell Marine. In addition, it is likely a large part of the R&D spending went to Schoell Marine. No commercial products have resulted from this spending.
Cyclone has continued to operate the last few years by diluting the stock. A/S is 6,000,000,000 shares. Chart from ycharts.com up to August 2017:
Dilution is continuing as Cyclone has contracts with a consultant to deal with their auditor, and another consultant to deal with their former auditor, which each pay $10,000 per month with stock steeply discounted (e.g., 50%) from market. The large rise in trading volume in the second half of 2017 corresponds to the stock being provided to these consultants.
Recent (2016) photo of the inside of Cyclone's facility.
CTO Harry Schoell and former President Christopher Nelson, photo from 2011 Cyclone Shareholder Open House (The event where Schoell told investors that all the technological problems with the Cycone engine had been "overcome".)