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Re: None

Monday, 08/25/2014 12:40:07 PM

Monday, August 25, 2014 12:40:07 PM

Post# of 28181
Hey, somebody has to be left holding the bag...

Thurday's news was HUGE. Cyclone got literally its first new customers since 2011. (Never mind the details of who those customers are. New customers are new customers.)

Even with that great news, Thurday's volume was the lowest in two weeks.

Friday's volume was the lowest in a month.

In fact, over the entire Friday afternoon, only 1.7m shares were traded, worth just $4K.

The obvious fact is that even with all this buzz, people aren't putting their money in.

Yep, the fans are staying away in droves...

The 10Q is going to be interesting reading. In Q1 the spend was $1097K and revenue was zero. The difference was made up by selling notes and stock. In Q1 stock price averaged $0.03.

In Q2 we know they got $140K for finishing the Army contract. They were still paying all the expenses for the WHE Gen division, and that interest costs have been steadily rising. The cash burn would have been similar to Q1, but the stock price was much lower. And what do you know? The rate of dilution increased dramatically in Q2: #msg-105457110

What about now? They shed WHE Gen, so save some cash there. $75K of WHE Gen's first round financing went to pay off one CYPW note, but all the rest remain. Interest charges will be larger than in Q1. So let's say the cash burn is $300K per month, or about $15K per business day.

If CYPW sells stock directly to raise this cash, right now ($0.0021) that means 7.1m new shares per day being issued.

That's in addition to millions of new shares issued every time a note converts.

It's going to be really, really tough for share prices to increase when there's that many new shares being constantly issued.

No wonder people aren't putting their own money in.

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