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Cyclone Power Technologies, Inc (CYPW)

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Last Post: 5/13/2019 2:19:40 PM - Followers: 238 - Board type: Free - Posts Today: 0

Cyclone Power Technologies, Inc  

NEWS: HAS CYCLONE CLOSED DOWN?

(Left) Photo of their building, January 2019,  Cyclone sign has been removed.  (Right) Photo attributed to February 2019, showing second Cyclone sign remains on the building.


They have still not filed the Q3 2018 quarterly report.  Their website gives financial information that is years out of date.  The investor funding their last announced project, a 3 megawatt solar power system, turned out to be a small startup in Utah that apparently closed down in the summer of 2018.  No deliveries of the Mark 1, Mark 3, Mark 5 or Mark 10 engines were made by the end of 2018 as announced in a July 2018 press release.  There has still been no public demonstration of a running Cyclone engine.

Website: http://www.cyclonepower.com       Facebook           Filings at the SEC       Filings at OTC Markets (including pre-SEC filings) 

Business:

Cyclone describes themselves as a research and development company who have developed a modern steam engine.  They have produced some prototype engines, but have no commercially available products and have never publicly demonstrated a running engine.

History:

Chairman and CTO Harry Schoell had spent many years in the powerboat industry.  His company, Schoell Marine, occupies a 6000 square foot building in Pompano Beach, Florida.  Schoell has no education beyond high school and describes himself as an inventor.  In the early 2000s he experimented with steam engines. In an article in Professional Boatbuilder magazine April/May 2016 page 29 Schoell explained the reason he created Cyclone Power Technologies:

The past 10 years he has devoted his mind and resources to compact steam engines. "We wanted to build a clean-air multi-fuel engine, because it fit the times and the marine industry was faltering," he says.

After Cyclone Power started raising money from investors, Schoell had Cyclone lease the entire Schoell Marine building and enter a services contract with Schoell Marine, his privately held company.

Use of Funds:

  Research &
Development
General &
Adminstrative
Property &
Equipment
Notes
2007 Annual Report 814,685 674,774 14,777  
2008 Annual Report 1,090,911 1,139,878 19,695  
2009 Annual Report 1,115,795 1,332,757 78,130 1
2010 Annual Report 830,611 1,241,379 83,784  
2011 Annual Report 983,276   2,628,835 108,243 2
2012 Annual Report 1,091,501 2,203,713 376,177 3
2013 Annual Report 772,795 2,100,104 376,763  
2014 Annual Report 845,499 1,890,152 163,166  4,5
2015 Annual Report 275,610 653,103  126,520 4
2016 Annual Report 478,299 967,706 93,272 6
Q3 2017 Report 162,462 856,934 72,517  
Totals 8,461,444 15,689,335      
Notes:
1: $39,953 of the increase in property and equipment was leasehold improvements
     to Harry Schoell's building.
2: $27,751 of the increase in property and equipment was leasehold improvements
     to Harry Schoell's building.
3: Equpment increased 270,396 with no explanation.  This was the year Cyclone
     had a land speed record race car custom built.
4: The 2014 report was filed two years late.  The 2015 report was filed one year late. 
     Cyclone switched to new auditors for these reports.  There were large write-downs
     of the value of inventory, which were added to the R&D expenses.  The numbers
     given here are the actual R&D spending in each year.
5: By 2014 total leasehold improvements on Harry Schoell's building had reached $93,922.
6: Cyclone again switched auditors.  R&D is net of inventory provisions.

Even though Cyclone claims to be an R&D-only company, for every dollar spent on R&D, almost two dollars have been spent on General & Administrative. (In 2017 the ratio had increased to $5 on G&A per dollar of R&D.) That spending has never been broken down, but the only place most of it could have gone is into the services contract with Schoell Marine.  In addition, it is likely a large part of the R&D spending went to Schoell Marine.  No commercial products have resulted from this spending.

When questioned on these numbers, Cyclone President Frankie Fruge has stated (comment #18) "Again fuzzy numbers. You need subtract accrual (salaries we have never taken and derivatives which is another number that represents volatility and is not money) they choice [sic] to only tell part of the story."  Note that derivative losses are a separate item in the balance sheets, totalling more than $30 million in additional losses, and are not included in the above figures.  President Frankie Fruge and CTO Harry Schoell have accrued salaries, some of which has later been treated as loans to Cyclone and paid back to the two.  The remaining forgiven salaries by the two represent a small portion of the unexplained General & Administrative expenses.

Dilution:

Cyclone has continued to operate the last few years by diluting the stock. A/S is 6,000,000,000 shares. Chart from ycharts.com up to August 2017:

As of December 18, 2017, there were 2,726,067,954 shares of the registrant’s common stock issued and outstanding. (Source: Q3 2017 report)

The number of shares outstanding of the registrant’s common stock as of May 15, 2018 is 5,292,794,570 (Source: 2017 annual report)

Technology:

The Cyclone engine is a piston steam engine, with the majority of models in a 6-cylinder radial configuration.  All models attempt to use water, instead of oil, as the engine lubricatant.

Patents: Cyclone has touted numerous U.S. and international patents on their technology.  The have, however, never demonstrated a working product that used the patented technology.  Most of the Cyclone patents have expired for non-payment of maintenance fees.

Engine Models: The announced models have been the Mark 4 (2004), Mark 2 (2004), Mark 5 (2007), Mark 6 (2007), Lawnmower (2007), Waste Heat Engine (WHE) (2008), Genie (2009), Solar-1 (2009), S-2 (2011), Mark 3 (2014), Mark 1 (2014), Mark 7 (2016), Mark 10 (2018).  The pattern is announcements of a new model, often with claims of customers, and predictions of production starting soon.  As time passes and no engines are produced, new engine models are announced and the cycle repeated. 
Delivered Engines:

• In 2008 Cyclone sold a WHE engine to Bent Glass Designs of Pennsylvania.  It was finally installed and started in 2010.  Years later, Cyclone admitted that it had been removed within a week and never replaced.
• In 2009 Robotic Technology Inc of Maryland was awarded a DARPA (Defense Advanced Research Projects Agency) contract to develop an autonomous robot that could fuel itself from wood, grass, etc., that it foraged in the field.  Cyclone won a sub-contract from RTI to provide a steam engine.  (Cyclone has portrayed this as having been awarded a DARPA contract, which was not the case.)  By the time Cyclone delivered the engine, the project funding had run out and there is no evidence RTI ever ran the Cyclone engine.
• In 2011 Raytheon ordered two Mark 5 engine variants called the Manta Ray.  These were delivered in 2012 and there has been no further word about them, and no follow-up business from Raytheon. There is no evidence Raytheon has run these engines.
• In 2011 the U.S. Army awarded a $1.4 million contract for Advent Power Systems of Florida to build a prototype generator set based on a Cyclone S-2 engine.  In 2012 Cyclone purchased the contract from Advent.  The prototype was delivered, years late, in 2014.  Cyclone claimed it met the Army's acceptance criteria, but never revealed what those criteria actually were.  There is no evidence the Army ever ran this engine. 
• In 2016 Cyclone delivered a Mark 3 engine to 3R of Denmark.  3R soon folded, with assets going to IBES of Dubai.  IBES has not been able to make the system work acceptably, and at the end of 2017 stopped work on it.  A video exists showing just how little power the Cyclone engine was able to produce.
• In 2016 Falck Schmidt Defense Systems (FSDS) of Denmark ordered two S-2 generators, with the requirement they must operate for 10 hours before being accepted.  Cyclone delivered one engine in 2017 without it having met the run-time requirement.  FSDS then went bankrupt.  There is no evidence they ever ran the Cyclone engine.

Of these few engines ever delivered by Cyclone over the years, only IBES has reported operating an engine, and then at much lower speed and power than Cyclone rates the engine for.

Failure of Water Lubrication:  A fundamental design feature of the Cyclone is that oil cannot be used to lubricate it, as is done in every other engine on the market.  It must use bearings that are lubricated with water.  In 2013 Cyclone hired the Ohio State University Center for Automotive Research (OSU-CAR) to fix the problems preventing the low-power WHE engine from working properly.  OSU-CAR immediately redesigned the engine, eliminating three cylinders and creating the WHE-DR model that had 60% fewer parts and significantly reduced vibration and noise.  Although they anticipated the engine would soon meet the 200 hour run time requirement of customer Phoenix Power, bearing failures became the next critical failure.  OSU-CAR concluded no available water-lubricated bearings would survive in the Cyclone engine and proposed building a bearing test machine and starting a series of experiments on bearings.  Cyclone then stopped funding the work.

Later models of Cyclone engines returned to the 6-cylinder configuration that OSU-CAR had abandoned as a bad design.

Failure to Run 10 Hours:  Contracts for engines have specified that engines must run 200 hours before acceptance (2010), 50 hours before acceptance (2013), and finally just 10 hours before acceptance (2017).  Financial disclosures show that final payments on these contracts have not been made, showing no Cyclone engine is known to have run for 10 hours under load without failing.



Recent (2016) photo of the inside of Cyclone's facility.


CTO Harry Schoell and former President Christopher Nelson, photo from 2011 Cyclone Shareholder Open House (The event where Schoell told investors that all the technological problems with the Cycone engine had been "overcome".)

President of Cyclone, " We have a small accounting staff and we do not have the robust employee resources and expertise needed to meet complex and intricate GAAP and SEC reporting requirements of a U.S. public company. "

Fraudulant statement by Cyclone Dec 14, 2010 ."This first WHE-GEN-10 is currently converting exhaust heat from Bent Glass Design’s furnace into grid-tied electric power."
As of March 25, 2015 there has been no indication they have made a water lubricated engine pass this 200-hour endurance test. 

Outstanding Shares
5,292,794,585
06/14/2018
 
CYPW
Current Price
Volume:
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PostSubject
#27929   Is this the longest stretch between "Strategic Partnerships"? Tom Swift 05/13/19 02:19:40 PM
#27928   He might have been legit, but Cyclone isn't ChuckFinley305 05/02/19 11:49:55 AM
#27927   Lost money here.I thought they had someone to Oldman3 05/01/19 09:12:03 PM
#27926   Ain't it the truth. There's even a BuddyWhazhizname 04/26/19 10:12:38 AM
#27925   Basing a turnaround on existing patents was mind-boggling! Tom Swift 04/24/19 02:42:37 PM
#27924   Another blast from the past. I wonder BuddyWhazhizname 04/24/19 12:11:43 PM
#27923   NO NO NO shorter than all I bobbyknobb 04/18/19 02:47:36 PM
#27922   LOL you claim 40 years experience yet you Longer Than Most 04/18/19 01:46:19 PM
#27921   Throwback Thursday: The world's worst video. BuddyWhazhizname 04/18/19 11:10:03 AM
#27920   Right...it's sooooo complicated. I'm sure my 40 bobbyknobb 04/17/19 07:01:40 PM
#27919   Right...it's sooooo complicated. I'm sure my 40 bobbyknobb 04/17/19 07:01:31 PM
#27918   Lol you clearly don’t know how the bid/ask Longer Than Most 04/17/19 11:59:10 AM
#27917   harry schoell didn't see the EV Aston Martin. bobbyknobb 04/16/19 02:04:22 AM
#27916   cypw CRASHED down 50% on only 20k bobbyknobb 04/15/19 12:06:43 PM
#27915   $.0002 CYPW! Tom Swift 04/15/19 11:24:58 AM
#27914   $CYPW hmmmm Longer Than Most 04/12/19 06:26:59 PM
#27913   Harry bumblenoodle cyclone was dead wrong on EV's bobbyknobb 04/08/19 05:19:57 PM
#27912   Some day all these $2 buys will add Actualfactual 04/04/19 11:04:14 AM
#27911   TOTAL DAYS VOLUME= $2.11 Huge volume probably safe bobbyknobb 04/04/19 01:02:27 AM
#27910   Oh look, no annual report. What a surprise. BuddyWhazhizname 04/03/19 09:33:20 AM
#27909   One should apply the same credibility to Molted's bobbyknobb 04/01/19 02:46:41 PM
#27908   Could you post a link to the FB BuddyWhazhizname 03/31/19 12:05:29 PM
#27907   Uncropped photo. Mid-February Molten Salt 03/31/19 10:11:03 AM
#27906   Fett, Cyclone rents one bay, not the building. Tom Swift 03/28/19 11:13:23 PM
#27905   uh-huh. Why not post some new pictures BuddyWhazhizname 03/28/19 09:13:41 AM
#27904   What a con you bobbyknobb 03/27/19 09:17:51 PM
#27903   Wow. I showed a picture that the building DinoFett 03/27/19 08:03:17 PM
#27902   Them huge gensets oughta be hummin'! Awaitin' reports! Tom Swift 03/26/19 11:53:45 AM
#27901   ZERO trades today. ha ha ha ha ha bobbyknobb 03/20/19 05:37:28 PM
#27900   Maybe not a joke... the 19,900% increase to BuddyWhazhizname 03/20/19 11:57:55 AM
#27899   .0002 +0.0002 +19,900.00% ha ha ha ha what a bobbyknobb 03/20/19 09:24:09 AM
#27898   Just a CON. Nothing more. pump and dump bobbyknobb 03/20/19 08:44:24 AM
#27897   Yeah, gains by selling promises, not products. Tom Swift 03/19/19 08:33:29 PM
#27896   No Product, No Growth. No Cyclone products. Tom Swift 03/19/19 08:30:06 PM
#27895   Great appreciated we must gains an growth this one. WallStreetMyWay 03/19/19 04:12:35 PM
#27894   Maybe we amy be able to generate growth WallStreetMyWay 03/19/19 04:11:14 PM
#27893   $CYPW-volume alerting we may breaks out. Good signs WallStreetMyWay 03/19/19 04:07:34 PM
#27892   I only invested $1000 years ago holding 170,000 goodfree 03/19/19 03:32:57 PM
#27891   Well, this is interesting. Why is this moving? Actualfactual 03/19/19 11:27:32 AM
#27890   Actually, the https://investorshub.advfn.com/boards/Terms.aspx Terms of Service BuddyWhazhizname 03/18/19 01:28:52 PM
#27889   According to the rules of the stock specific outsidethebox 03/18/19 10:33:27 AM
#27888   This site is about the Company not People. outsidethebox 03/18/19 10:18:16 AM
#27887   That July 2016 photo also shows the trailer BuddyWhazhizname 03/16/19 01:06:07 PM
#27886   Dino-fritter don't try that weak adze stuff here. bobbyknobb 03/15/19 08:19:26 PM
#27885   More fake news. The cropped picture gives a DinoFett 03/15/19 03:29:15 PM
#27884   Yeah, it's pretty bad when after spending all BuddyWhazhizname 03/04/19 11:09:56 AM
#27883   Gotta give them credit for consistency, Bobby! Tom Swift 03/01/19 10:32:23 PM
#27882   Here's the latest...cyclone has again updated the company bobbyknobb 02/27/19 05:00:07 PM
#27881   Four years ago at Cyclone: BuddyWhazhizname 02/15/19 10:58:47 AM
#27880   Totally love this site. The DD available StocksFox 02/11/19 02:25:24 PM
PostSubject