Cyclone Power Technologies, Inc. (fka CYPW)

[BuddyWhazhizname]

Tom, I think it's even simpler than that. That PR, titled Cyclone Power Technologies Will File Financial Reports and Releases Progress to Shareholders (but they didn't say when....) said:

The Spinoff of WHE GEN (Q2 Power) 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 (Q2 Power). This has still not been paid but demand for payment has been made. The Combilift contract will still allow us to collect $300,000 upon deliverables. All accrued expense of the Company from salaries, rents, and related interest owed to the majority of employees, all officers, and Schoell Marine have been forgiven in an attempt to clean up the balance sheet and to bring in new money. As of June 30, 2015, the amount forgiven is approximately 1.8 Million and has been reflected now as a contribution to capital.

1) WHE Gen is almost as broke, and aren't going to be paying that $150K, ever.

2) The $300K from Combilift will only occur IF they deliver the working Mark 5 engines (they "are hopeful for a 2015 delivery"), AND Combilift accepts them as usable to power forklifts, according to the contract. Combilift was promised delivery in July 2012. Why on earth would they want to waste any more money on this venture?

3) Salaries to "the majority of employees" being forgiven means the last paychecks bounced, and since all the assets are secured by creditors, the employees will never see their money, so why not write it off?

4) Cyclone (well, shareholders anyway) has been paying through the nose for facilities and services to Schoell Marine, which is 100% owned by Harry. Cyclone has been paying high rent for the entire Schoell Marine building. For instance,

Notice the boat under construction in the background and the fiberglass cutting table in the foreground with rolls of fiberglass on the right. Schoell Marine has continued to operate in the space they rented to Cyclone.

For every dollar spent on R&D, Cyclone has spent two dollars on "General and Administrative" expenses. They've never explained what those were, oddly enough. The only place that money appeared to go was on the "services contract" with Schoell Marine. It sure hasn't shown up in Cyclone's assets.

Harry has 'forgiven' his debts to himself so that he can attract more investors. A regular Prince of a fellow.