CYPW news out...
POMPANO BEACH, FL, Dec 19, 2014 (Marketwired via COMTEX) -- Cyclone Power Technologies (OTC PINK: CYPW) will file with the Securities and Exchange Commission its Quarterly Report on Form 10-Q for the period ended September 30, 2014, and has released the following progress report to its shareholders:
Dear Shareholders:
Warm greetings from South Florida! Through the third quarter of 2014, we have: (i) made substantial advancements in our core technology, (ii) successfully spun-off our subsidiary, WHE Generation Corp. ("WHE Gen"), and (iii) turned our focus to getting our first three base engines into production.
The Spin Off & Late Filing
The Spinoff of WHE Gen, which resulted in a gain of $2.4 million, was not as seamless as expected. The time frame for closing was pushed from Q2 to Q3. Current receipt of funding from the sale of $500,000 of Cyclone's WHE Gen stock has been reduced to $350,000. This caused a deficit of $150,000 from our prior projected funds and resulted in a related $150,000 receivable to be collected from the sale of 625,000 shares in Whe Gen. In addition, the accounting complications of the sale and the necessary financial information from Whe Gen were tardy making for an extremely late filing. Our Quarterly Report on Form 10-Q will be filed with the Securities & Exchange Commission, and we urge our shareholders to review it. Notable changes during the period and additional forward looking information are highlighted below:
Revenue & Expenses
Cyclone generated $315,527 of revenue during the nine month period ended September 30, 2014, which was less than the same period in 2013 of $715,387. Operating expenses for the same period in 2014 increased by 16% and higher funding related interest expense increased by 209%.
Management is continuing its efforts to channel resources on revenue-producing projects. With the royalty streams that are projected from the subsidiaries and licensees, and the finalization of the preproduction engines and components being delivered to our customers, we feel that our business model is finally coming to fruition.
Technology and Business Advancements
The Company has made considerable progress towards the overall marketability of our products. Cyclone started with the formation of a new Board of Directors with expertise in running public Companies, manufacturing, production and green energy. This provides management a broader base of assistance for the upcoming production phase for Cyclone. We have aligned ourselves with prime suppliers who are capable of producing our specialty parts for installation into our engines or for sale of component sub assemblies to other companies for system integration. The Company has signed numerous agreements with international engineering and consulting companies to represent us in broader markets and to their clients. Our focus is on revenue via sales of products and license and royalties.
We have not had the extra resources to devote to our Land Speed Record attempt, and therefore, have delayed it until 2015. Our Combilift project is in the final process of the 50 hour testing (Cyclone Mk V Combilift) and we are hopeful for a January 2015 delivery. Both the LSR streamliner and the Combilift equipment will utilize the Mark 5 model engine. This is a remarkable engine that we expect to have available for manufacturing in mid-2015.
Capital Markets and Funding
We have seen continued pressure on the public markets side for our Company's valuation. Admittedly, this is partly because our development has taken longer than previously anticipated and required additional funding, which is addressed above. It is also a result of certain promissory notes being converted to common stock and sold into the market over the last few quarters. Like many other micro-cap entities, Cyclone issued these convertible notes over the last year to fund a material portion of our operational and R&D shortfall. The Company is grateful to these funding groups, and understands that liquidating their positions at note maturity is a standard investment strategy for them. Additionally we had to increase our authorized common stock levels to accommodate the convertible contracts that obligate the Company.
As a long term shareholder, one should not correlate the common stock selling activities with the progress of our business model and the viability of our technology. We are now a viable company for the clean-tech and green-energy funding sources and we believe that our story is quite compelling:
-- Globally patented engine technology with potentially "game changing"
attributes.
-- Worldwide markets with a current invested customer base that includes
the U.S. Army and Department of Defense.
-- Focused path to commercialization for our initial engine products.
-- Experienced technical team, manufacturing experts, and new directors
and management.
-- Current revenue with consistent sales forecasted to start in 2015.
Our shareholders and supporters must not overlook these strengths of Cyclone, as they truly separate us from the vast majority of "micro-cap" companies out there. We are energized by these accomplishments, and will continue to work diligently until we have yielded results for our shareholders.
On behalf of the entire Cyclone team, thank you for your support.
Sincerely,
Harry Schoell Chairman
Frankie Fruge' President
Safe Harbor Statement Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. The company cautions that these forward-looking statements are further qualified by other factors. The company undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events or otherwise.
About Cyclone Power Technologies Cyclone Power Technologies is the developer of the award-winning Cyclone Engine -- an all-fuel, clean-tech engine with the power and versatility to run everything from waste energy electric generators and solar thermal systems to cars, trucks and locomotives. Invented by company founder and Chairman Harry Schoell, the patented Cyclone Engine is a eco-friendly external combustion engine, ingeniously designed to achieve high thermal efficiencies through a compact heat-regenerative process, and to run on virtually any fuel -- including bio-diesels, syngas or solar -- while emitting fewer greenhouse gases and irritating pollutants into the air. The Cyclone Engine was recognized by Popular Science Magazine as the Invention of the Year for 2008, was included in a 2011 report by Popular Mechanics as an important waste energy technology for the future, and was twice presented with the Society of Automotive Engineers' AEI Tech Award. Additionally, Cyclone was named Environmental Business of the Year by the Broward County Environmental Protection Department. For more information, visit www.cyclonepower.com.
Company Contact
Frankie Fruge'
Tel: 954-943-8721
Email Contact
SOURCE: Cyclone Power
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