The last 10Q showed $1.9m in notes payable and derivative liabilities. That's now gone down by $75K with yesterday's announcement.
If WHE GEN raises another $2m by the end of September, it will assume $200K of CYPW's accounts payable (which were $1.1m in Q1) and pay $175K in licensing fees.
Keep in mind that CYPW's expenses in Q1 were $1.1m, with $500K being just interest, and revenue was zero. Q2's revenue total was $140K from finishing the Army contract, but expenses continued. They owe more now than the did then.
WHE GEN has a $1m purchase order from Phoenix, but it says maximum of $1m over 24 months, with conditions. It doesn't come into effect until the WHE engine survives 200 hours of testing at OSU, which was predicted to have happened in December, but apparently hasn't yet. If 10 more engines survive 200 hours each, Phoenix will pay WHE GEN $250K.
The predicted cost of a WHE 10kW generator was $40K. It will save the owner between $1 and $2 per hour of electricity while it's running.
It may be a while before big royalties start flowing into CYPW.
