Cyclone Power Technologies, Inc. (fka CYPW)

[BuddyWhazhizname]

Still trying to peddle the red herring about deferred salaries.

Let's look at the 2011 annual report, back when the WHE was listed as being in the Production Model stage and the Mark 5 was a "“Pre-production Beta” refers to a second generation prototype engine, which has undergone significant durability and performance testing at Cyclone’s facility. " http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=8545321

OPERATING EXPENSES

Advertising and promotion..............66,001
General and administrative.........2,628,835
Research and development...........983,276

and

NOTE 7 - RELATED PARTY TRANSACTIONS

A. LEASE ON FACILITIES

The Company leases a 6,000 square foot warehouse and office facility located at 601 NE 26 th Court in Pompano Beach, Florida. The lease, which is part of the Company’s Operations Agreement with Schoell Marine, provides for the Company to pay rent equal to the monthly mortgage payment on the building plus property taxes, rent, utilities and sales tax due on rent. Occupancy costs for the years ended December 31, 2011 and 2010 were $62,964 and $62,964, respectively.

Nothing in the annual report says that rent was deferred or forgiven.

So we take G&A of $2,628,835 and subtact Harry's $150,000 and Frankie's $120,000 of forgiven salary which leaves $2,258,835 of unexplained G&A.

That's 230% of R&D.

When you figure that R&D includes the wages and benefits of everyone who worked on engines, all the materials for the engines, all the external expenses related to the engines, all the design work on the engines, and so on, just what else was there to spend all this money on? Sure, overpriced rent at $63K, but that included all the utilities. Add in all the useless executives they had and there would still be at least $1.75 million left to account for.

But there has never been any explanation as for why so much money went for things other than R&D, or who's pocket that money ended up in.

That's what the financials say.