It sounds like the auditor is being thorough.
Apparently, Cyclone's books show they owe you an outstanding debt. This seems like it could be legit, an audit is going to require a complete accounting of assets and liabilities to determine net worth (leaving capital out of the equation).
Instinctively, it would seem that an auditor would accept their word on payables and closely examine receivables, who admits to owing more money than they actually do? That doesn't provide an accurate financial summary, however. I'd suspect missing as many filings as they have also prompts a more detailed survey as there hasn't been any independent review for some time.
Beyond that, however, it's all of a piece. Cyclone announced upcoming production of an all-fuel, clean burning, highly efficient, cost competitive, "game changing" engine embodying "disruptive technologies" without first having gathered the data to back the claims. Basically Harry's enthusiasm and confidence was substituted for dyno and longevity testing while intentions were assumed to be equal to fact as far as gearing up for production. This time they did about the same thing by announcing upcoming filings without first getting a commitment from the auditors as to a completion date.
I'll give them the benefit of the doubt and assume they are serious about completing the filings. It is hardly business-like, however, to commit to actions and dates without first having definitively determined whether or not the commitment can be fulfilled as stated. Was it too hard to get a firm commitment to a time of completion from the accountants before advertising the release date?
