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Cyclone Power Technologies, Inc (CYPW)

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Last Post: 7/12/2018 8:19:22 PM - Followers: 241 - Board type: Free - Posts Today: 0

Cyclone Power Technologies, Inc  

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.

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 attept 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 $1.4million contract for Cyclone to build a prototype generator set based on the S-2 engine.  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, and at the end of 2017 stopped work on it.
• 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. 

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CYPW News: Amended Statement of Ownership (sc 13g/a) 07/02/2018 11:35:26 AM
CYPW News: Quarterly Report (10-q) 06/15/2018 03:58:48 PM
CYPW News: Annual Report (10-k) 05/29/2018 04:38:18 PM
CYPW News: Notification That Annual Report Will Be Submitted Late (nt 10-k) 04/02/2018 03:51:56 PM
CYPW News: Statement of Ownership (sc 13g) 02/28/2018 11:36:51 AM
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PostSubject
#26693  Sticky Note Molten Salt wrote:I think they are issuing stock BuddyWhazhizname 01/15/18 12:19:14 PM
#27450   Bobby, A Tale of Two Scams: marlin6 07/12/18 08:19:22 PM
#27449   Hi Buddy, Tom Swift 07/12/18 09:20:07 AM
#27448   Great analysis Tom. There are changes to BuddyWhazhizname 07/11/18 02:44:24 PM
#27447   Exactly! Think of how much more $$ would ChuckFinley305 07/11/18 02:02:48 PM
#27446   Yeah, it's pretty pathetic when an international con BuddyWhazhizname 07/11/18 01:52:49 PM
#27445   She's ready. Back to subbies ! GreenKnight 07/11/18 08:57:02 AM
#27444   So, hey Buddy!! That other energy scam was bobbyknobb 07/10/18 09:16:37 PM
#27443   The announcement of the turn-around expert reminds one BuddyWhazhizname 07/10/18 04:41:58 PM
#27442   Cyclone showered us with such great news yesterday! ChuckFinley305 07/10/18 02:44:14 PM
#27441   Javiar=20%, Chad=8% + 80% of LSR=Liquidation by fruge bobbyknobb 07/10/18 01:52:25 PM
#27440   In 2007 & 2009 harry $ fruge CLAIMED bobbyknobb 07/10/18 01:40:37 PM
#27439   Frankie "facts" stretch the outer limits of imagination. Tom Swift 07/10/18 12:53:43 AM
#27438   Confirmed: Their new partner, GoGreen Equipment, is operating BuddyWhazhizname 07/09/18 07:18:51 PM
#27437   More Frankie Fruge dissembling on FB:Frankie Fruge if BuddyWhazhizname 07/09/18 06:57:36 PM
#27436   Yeah, that was just what I was thinking. BuddyWhazhizname 07/09/18 06:14:34 PM
#27435   Nice News?!!??!? BWAAA HAAAA HAAA HAAA!!! Tom Swift 07/09/18 11:46:42 AM
#27434   Nice news $CYPW xlogit3k 07/09/18 08:37:53 AM
#27433   CYPW nice news today HallaDurg 07/09/18 08:26:04 AM
#27432   https://seekingalpha.com/amp/news/3368496-cyclone-power-technologies-sell-majori stockyupydowny 07/09/18 07:30:40 AM
#27431   Turnaround means you were going the wrong direction. Tom Swift 07/09/18 07:23:21 AM
#27430   How many shares is his monthly consulting fee? ChuckFinley305 07/05/18 03:00:42 PM
#27429   I think this is the John Flynn from HallaDurg 07/05/18 02:11:17 PM
#27428   Since Cyclone doesn't have $10k/month in cash to ChuckFinley305 07/05/18 10:27:09 AM
#27427   If you want to know who the new bobbyknobb 07/05/18 01:32:21 AM
#27426   Restructure this quarter !! The mighty flynn man. bobbyknobb 07/03/18 10:51:05 PM
#27425   https://globenewswire.com/news-release/2018/07/03/1533117/0/en/CYCLONE-POWER-RET davidsson10 07/03/18 01:16:18 PM
#27424   First of all, you can tell just how Tom Swift 07/01/18 02:17:44 AM
#27423   The scam continues... From Facebook:Cyclone Power Technologies BuddyWhazhizname 06/29/18 12:00:50 PM
#27422   Yup. This turd deserves a pop. Got my GreenKnight 06/24/18 10:40:21 PM
#27421   skyrocket up 100% on $50. trade, LOL bobbyknobb 06/22/18 10:37:40 AM
#27420   Today's grand total for trades=$18.20 cheers cycloners 6 bobbyknobb 06/21/18 06:36:17 PM
#27419   Tom is right. But the Q states clearly bobbyknobb 06/19/18 05:06:17 PM
#27418   "Binding Letter of Intent" is a SCAM! Tom Swift 06/19/18 12:06:52 AM
#27417   Remember the PR where Frankie claimed the new BuddyWhazhizname 06/18/18 03:14:10 PM
#27416   Not current on debt. Bills go unpaid delinquent bobbyknobb 06/17/18 12:54:21 PM
#27415   It did just go current though. One O'Clock Drop 06/17/18 03:09:10 AM
#27414   Well the 10Q is in and stinkin up bobbyknobb 06/15/18 09:52:40 PM
#27413   Hi Buddy. Tom Swift 06/06/18 02:11:34 PM
#27412   Holy cow Tom, you're right. That is BuddyWhazhizname 06/04/18 02:04:38 PM
#27411   Agree Marlin, the spending priorities have always been BuddyWhazhizname 06/04/18 01:43:20 PM
#27410   Buddy, pressure's enough to make power … BUT Tom Swift 06/04/18 07:02:52 AM
#27409   Zombie Corp. inc=cyclone. Feeds upon itself as the bobbyknobb 06/03/18 12:52:43 AM
#27408   If harry has proven anything, it's that steam bobbyknobb 06/01/18 02:34:35 PM
#27407   Hey Tom, Harry Schoell dealing with laws of BuddyWhazhizname 06/01/18 12:54:42 PM
#27406   Any shareholder who reads the 2017 annual report bobbyknobb 06/01/18 12:26:04 PM
#27405   Buddy, I worked on several R & D programs marlin6 05/31/18 02:53:44 PM
#27404   1,500 HP engine?!?!? Best left to turbines. Tom Swift 05/31/18 02:16:23 PM
#27403   What the hell does Frankie do, other than BuddyWhazhizname 05/30/18 04:36:02 PM
#27402   Remember when people used to say Cyclone was BuddyWhazhizname 05/30/18 04:11:51 PM
#27401   2nd subsid. reported lately " genesis, and now bobbyknobb 05/30/18 01:01:34 AM
PostSubject