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New year and Frankie's even nuttier. From Facebook:
Yep, it's all Obama's fault. Remember the jokes from 10 years ago? "It rained today. I blame Obama." Cyclone, after squandering at least $25 million of investors' money on their "market-ready" steam engines and not being able to even run a go-kart around a parking lot, is now blaming Obama.
(And Frankie -- before you start claiming that $25 million was paper derivative losses, remember that those were an additional $30 million.)
Even though that genset for the Army was delivered years behind schedule and didn't work any better than any of their other engines (e.g., if it was so great, why didn't Cyclone ever build another copy to show people one of their engines actually producing any power?), and the Army declined to award them a new, bigger contract to produce more useless junk, it was all Obama's fault.
And all their other announcements of all those other Mark 2 through Mark 10 engines going into production soon and it never happening? Yep, Obama's fault. Every last one of them. Even before Obama was elected.
By the way, here's a link to the article from February 2013 about their land speed car #2 ambitions: https://archive.org/details/Racecar_Engineering_2013_02/page/n19/mode/1up Here are some quotes:
"drive the car up to 200 mph in the first quarter of 2013"
"The plan is to hit 200 mph, before prepping the car for a 250 mph run at Bonneville salt flats in the summer, "
"The new engine will then be fitted with a target of 400 mph"
"and intends to extend that to 400 mph by the end of 2013."
'It just takes time to get it there, The LSR is to prove that we have a viable product. People have to see it, We have generators running, but to see something like this has excitement to it. We also have a boat we are going to run to show the viability of the product. It is amazing to us, we have been at it for a few years, and every time we show it people haven't heard about it. We have grown making generators and products for other applications;
And the scam begins again...
On Facebook:
Cyclone Power Technologies
October 13 ·
Cyclone is pleased to announce the Reboot of Cyclone Power Technologies, Inc. with an Open House at our new facility and an on-line virtual tour on Cyclone Power’s Facebook page.
Our founder, Harry Schoell, and two of our long time investors bought the building together for the sole purpose of completing the research, development, and demonstration of the latest refinements and applications of Cyclone Power’s Advanced Rankine Cycle Engine. Numerous Cyclone systems, including the re-designed Land Speed Record (LSR) steam car and the Water Speed Record (WSR) steam boat will be on display. Harry and others will discuss recent engine advances along with renewed efforts and plans to go after the LSR and WSR. Even though we are still moving in, we are anxious to welcome Cyclone’s supporters to our new home. As the company progresses, Cyclone’s intentions are to request and update filing with the SEC to recognize all of our investors and to become totally compliant and re-listed.
The Open House will begin at 4:00 PM central standard time, immediately followed by the on-line virtual tour on Cyclone’s Facebook page to be aired at 7:00 PM on October 19, 2022. We are located at 100 Tex Pack Street, Longview, TX 75604. We need to know how many will attend, so an RSVP in advance is required, either by email to Mark@cyclonepower.com or phone at 903-261-3142.
Property Deed History
Deed Date Description Grantor Grantee
8/25/2022; WARRANTY DEED VENDORS LIEN; JLF HOLDING LLC; CYCLONE PROPERTIES LLC
1/18/2022 ; WARRANTY DEED; JONES BROTHERS INVESTMENTS; JLF HOLDING LLC
CYCLONE REAL PROPERTIES LLC
Filing Information
Document Number
L22000336251
FEI/EIN Number
NONE
Date Filed
07/29/2022
Effective Date
07/24/2022
State
FL
Status
ACTIVE
Principal Address
851 COUNTRY PLACE
LONGVIEW, TX 75605
Mailing Address
851 COUNTRY PLACE
LONGVIEW, TX 75605
Registered Agent Name & Address
FRUGE, FRANKIE A
801 PINE DRIVE
#12
POMPANO BEACH, FL 33060
Authorized Person(s) Detail Name & Address
Title MGR
SCHOELL, HARRY L
851 COUNTRY PLACE
LONGVIEW, TX 33060
Title MBR
WHITE, DON
1212 S. MUSKOGEE AVE
RUSSELLVILLE, AR 72801
Title MBR
KILLORN, RAY
108 WEST PINE STREET
UNION GAP, WA 98903
Tom makes many good points.
Here is some empirical evidence. The Cyclone waste heat engine (WHE) went through a long development with many promised delivery dates. It was also a 6 cylinder radial with the Schoell "spider bearing". Their customer for the engine required 200 hours of continuous running under load before they would pay for the prototype.
In early 2013, Cyclone hired an engineering group at Ohio State University to fix the design and get the engine to that 200 hour threshold.
From the press release (emphasis added):
POMPANO BEACH, FL, November 5, 2013. Cyclone Power Technologies Inc. (OTCQB: CYPW), developer of the all-fuel clean-tech Cyclone Engine, announced today that it has completed the build of its next generation Waste Heat Engine, in conjunction with The Ohio State University’s prestigious Center for Automotive Research (OSU CAR). The model engine, called the WHE-DR, is currently in testing and is expected to be ready to transition into limited production by the end of this year.
The WHE-DR boasts several important advancements over the previous engine model, meant to decrease manufacturing costs and increase operational durability without loss of performance. For instance, the new engine replaces six cylinders with three slightly larger bore cylinders, and utilizes more robust and less complicated admittance and exhaust valving systems, and simplified rod bearing connections. Overall, the WHE-DR has approximately 60% fewer parts than the earlier version. Initial testing has demonstrated significantly smoother and quieter operation, which is expected to result in the successful completion of durability tests over the next two months.
Dr. James H. Durand, Director of Testing, Engineering & Software Development Services at OSU CAR, stated: “We have made great progress in a short period of time, and are very pleased with the resulting engine design of the WHE-DR. We believe this is an engine that will ultimately achieve the reliability and durability expectations of Cyclone and its customers. We feel confident that together with Cyclone’s team we will complete our project goals in the short term.”
“We are very proud of our improved engine. This is a technological and business milestone that must not be understated, as we are fast approaching our transition into phase one manufacturing with our team that we have been preparing in Ohio. For small-scale waste-to-power applications, we believe this product has enormous market potential,” stated Harry Schoell, Chairman and CTO of Cyclone.
"I would appreciate if you would stop calling me Frankie, my name is Mike Santana.... " from this post.
Here are some accounts that posted to this board over the years. See if you can spot any similarities:
Molten Salt https://investorshub.advfn.com/boards/profile.aspx?user=587210
DinoFett https://investorshub.advfn.com/boards/profile.aspx?user=682604
msantana84 https://investorshub.advfn.com/boards/profile.aspx?user=586214
Dinblono https://investorshub.advfn.com/boards/profile.aspx?user=359345
"Molten Salt" was the most obvious. That one popped up during the final Cyclone scam, the solar electricity system. That was the one with the 1500 hp engines sold to a retirement home. Solar heat was to be stored by melting salt.
I had also found someone was deleting all the negative information in the Wikipedia article on the Cyclone Mark 5 engine in 2015, and an IP lookup showed it was done from a computer at Cyclone. Details at https://en.wikipedia.org/wiki/Talk:Cyclone_Mark_V_Engine, about half way down the page.
Quite the pattern of fraudulent misrepresentation.
Pity these two won't spend their remaining years doing hard time. On the other hand, at least that will save the taxpayers some money for their care.
They used to brag about having "over 1000 hours" of accumulated engine running time. Let's suppose that for once they were honest and didn't exaggerate that number. Over 15 years that's just over one hour of engine running time per week. There were approaching a dozen engine models announced, and no doubt each was rebuilt many times after it self-destructed shortly after each startup.
And then we have all the videos posted that show engines running poorly, for an average of a minute, with no load being applied.
A quick search turned up this discussion board post from "Brownie" who was something like chief "engineer" at Cyclone:
BROWNIE , 07-28-2010 03:20 PM
Registered
Harry Schoell and Brownie of Cyclone Power Technologies are building a boat and engine to set a modern day ‘World Steam Powered Water Speed Record’. The 21’ DDC hull will have one of the new 100 HP Mark Five radial Cyclone engines. The engine, termed “a heat regenerative, self contained, water lubricated, 6 cylinder, environmentally friendly, high efficiency, multi-fuel steam engine” is a modern day offshoot of the technologies of a hundred years ago.
The boat will be driven by Cyclone executive, Frankie Fruge, and named for her. The craft will be called “GG Mom”, for Great Grand Mom, and will be pit-crewed by three generations of her female offspring.
The existing record is 45 mph, set in 1903 by C.W. Flint. Frankie expects to go about 60 mph, which will break the steam boat record. It also will be the fastest boat on algae fuel, waste oil, or any one (or more) of a variety of non-imported biofuels. The date for the attempt will be announced soon, as will the date for the recovery of the Steam Land Speed Record, using the same engine type. A group of British racers recently broke the record set by a Stanley Steamer in 1906. They reached about 150 mph with a large streamliner on the salt flats. An identical Cyclone engine to GG Mom’s will power Chuk Williams streamliner.
Grifters gonna grift.
The latest from Frankie on FB:
Uh-huh. She intentionally ignored about three years of notices from the SEC before the stock was delisted. The statements from the SEC in the delisting paperwork said there were no responses ever from Cyclone. And it wasn't a case that Cyclone couldn't afford the stamp - they could have used email.
Frankie Fruge, whose official Cyclone bio as President says she is a former auditor at Ernst & Ernst, was unable to put together a balance sheet and P/L statement each quarter for a company with no revenue? Not likely.
Fruge and Schoell were done swindling shareholders so they intentionally let the stock be delisted so their remaining thousands of victims would be completely wiped out.
They didn't need money to file those legally-required quarterly and annual reports. Those are all filed electronically. Not even postage cost was required.
"Products in production". Yeah, right. They still haven't publicly demonstrated one of their "engines" powering anything. Not Frankie's expensive custom speedboat pulling away from a dock under its own power, or even a go-kart moving one person in a parking lot. The expensive race car they had custom built that was going to break all those land speed records back in 2012 still hasn't moved one inch under the power of a Cyclone engine.
Yet the same old lie they've been telling since 2004 - products will soon be in production. Just give them some more money. Yep, remember the "family of market-ready products" they claimed to have since at least 2007, and the $25-30 million in investors' cash they've burned through (plus the $30-35 million in derivative losses also suffered by investors). 15 years later and not only no "market-ready" products any closer to being marketed, but no explanation whatsoever of why not nor of where all that cash disappeared to.
Oh, there's something going on behind the scenes, alright.
Harry and Frankie are busy toasting themselves at how successfully they've cheated more than 5000 investors plus their much smaller number of customers.
Stock price has dropped back to $0.0001, so Frankie probably figured out how to print more stock again after some new bag holders bit.
They still haven't replied to any of the SEC orders: https://www.sec.gov/litigation/apdocuments/ap-3-19846.xml Any time now the SEC is going to order a permanent trading stop on CYPW.
Maybe the two old crooks will sell the shell, or maybe they figure they'll hold onto it until they can swindle a new generation of suckers.
Still no response to the SEC order demanding to know why CYPW should not be deregistered. https://www.sec.gov/litigation/apdocuments/ap-3-19846.xml
It's green, because it doesn't use any fuel, because it doesn't work.
It's green, because it doesn't pollute, because it doesn't work.
It's green, because it doesn't take any raw materials to manufacture, because they don't manufacture any.
Their boat is the most efficient powerboat ever built, because it has never used any fuel.
Their racecar is the second most efficient ever built, second only to Soap Box Derby cars.
Yep, sounds like a winner.
Maybe they could take the car to the next Soap Box Derby race and see if they can pick up some trophies for the 80+ age category.
Any bets on when the SEC will deregister the stock?
The key difference is, however, that Uber and Tesla have real products. Cyclone has only ever had bragging about what they were going to do in the future.
You can download the Uber app and get a ride in the next hour. You can buy a Tesla car that comes with a 4 year factory warranty, and 8 years on the battery. Tesla has more than 20,000 charging stations scattered around.
And Cyclone?
Their website is four or five years out of date.
They are three years behind in SEC filings and the stock is going to be deregistered at any minute.
They had a bunch of fake display engines that they used to tell people worked great. Word is that when they closed their shop last year all these went into a dumpster.
They have a powerboat with a fake engine that was supposed to set speed records starting in 2011. It's never been in the water.
They have a custom built race car that was supposed to set speed records starting in 2012. They even rented the Space Shuttle runway at Kennedy Space Center at one time to test the car. Like the boat it's never moved one foot under the power of a Cyclone engine.
There's never been a public demonstration of a running Cyclone engine. As Tom says, try to buy one. Offer cash. See what kind of runaround you get.
CYPW has been going since 2007, and the one constant is they have always been claiming engines would go into mass production within six months. Fourteen years later and they don't have so much as a go-kart that has ever run under the power of a Cyclone engine.
The two con-artists in charge, Harry and Frankie, are each now about 80 years old. Clearly they're tired of this con and are taking it easy on some of the $25 million of investors' cash that disappeared without a trace into Schoell Marine.
They are old, and so is their story. Other than some rare comments on Facebook repeating the same old lies, what have they done in the last two years?
"CYPW Responded to SEC". Umm, no.
Here's SEC's case file page for Cyclone and Ecolocap Solutions, Inc.
https://www.sec.gov/litigation/apdocuments/ap-3-19846.xml
Notice that on March 12th they added an email from Ecolocap requesting more time to file. (Their lawyer died... How sad.)
But nothing from Cyclone.
Now it's certainly possible that you got this story directly from Frankie Fruge or Harry Schoell. The two do nothing but lie to shareholders. They haven't even told shareholders they closed their shop a year ago, let alone come clean on the total and unremitting failure of their magical external combustion technology.
The only question is how long until the SEC pulls the trigger and deregisters CYPW.
The 5.3 billion outstanding was in June 2018. We know Frankie had three or four "strategy consultants" going for several months after that, all being paid in stock probably at a discount to the $0.0001 trading price.
Then there were still convertible notes coming due, which converted typically at a 50% discount to market price.
There were still huge volumes traded in the last half of 2018. Much bigger than the recent trading.
I would expect the outstanding is at least 7 or 8 billion, but could easily be more.
The fact that Harry Schoell and Frankie Fruge have ignored all the demand letters from the SEC to make required filings, then ignored the SEC order last year and the new SEC order last month means they really don't want anyone to know what they've been up to. It wouldn't surprise me if much of that volume in 2018 was from them dumping shares they voted themselves.
Somebody has been spending real money to acquire a position in CYPW. I would guess they're doing it to get the shell by some means related to being the biggest shareholder.
If someone does get the shell, expect an epic reverse split to wipe out the small shareholders, then a new cycle of dilution.
On the other hand, if the SEC deregisters the stock, would the shell be worth anything at all?
Time will tell.
Looks like Cyclone ignored the latest SEC order, too.
From the SEC case page https://www.sec.gov/litigation/apdocuments/ap-3-19846.xml on Friday:
Order Discharging Order to Show Cause as to Ecolocap Solutions, Inc., and Directing Prehearing Conference
The SEC had lumped Cyclone and this Ecolocap together in their orders. The latest order was
Accordingly, Respondents are ORDERED to SHOW CAUSE by March 16, 2021, why the registrations of their securities should not be revoked by default due to their failure to file an answer and to otherwise defend this proceeding.
Looks like we're in the countdown to delisting.
Cyclone hasn't filed anything with the SEC since August of 2018.
They ignored all the SEC demand letters to update their filings.
They ignored the trading halt the SEC imposed last year.
They ignored the order from the SEC last year to defend their lack of filings.
And it appears they've ignored the deadline this past Tuesday for the latest order to show cause why the stock should not be delisted.
Because they failed to file a defense last year the SEC has the authority to delist the stock any time without further procedures.
Harry and Frankie probably decided they can't swindle anyone else by issuing more stock, so they're going to let the stock be delisted so they don't have to deal with irate shareholders any more.
And, no doubt, they'll claim that they are the real victims here.
Bookmark SEC's case file page for Cyclone
Administrative Proceeding File No. 3-19846
https://www.sec.gov/litigation/apdocuments/ap-3-19846.xml
The SEC already ordered Suspension of Trading in 2020
https://www.sec.gov/litigation/suspensions/2020/34-89202-o.pdf
UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION
June 30, 2020
In the Matter of
Cyclone Power Technologies, Inc. and Ecolocap Solutions, Inc.,
File No. 500-1
ORDER OF SUSPENSION OF TRADING
It appears to the Securities and Exchange Commission (“Commission”) that there is a lack of current and accurate information concerning the securities of Cyclone Power Technologies, Inc. (“CYPW1”) (CIK No. 1442711), a Florida corporation located in Pompano Beach, Florida with a class of securities registered with the Commission pursuant to Securities Exchange Act of 1934 ("Exchange Act") Section 12(g) because it is delinquent in its periodic filings with the Commission, having not filed any periodic reports since it filed a Form 10-Q for the period ended June 30, 2018. On October 31, 2019, the Commission’s Division of Corporation Finance (“Corporation Finance”) sent a delinquency letter to CYPW requesting compliance with its periodic filing requirements, which was delivered. As of June 25, 2020, the common stock of CYPW was quoted on OTC Link operated by OTC Markets Group Inc. (formerly “Pink Sheets”) (“OTC Link”), had five market makers, and was eligible for the “piggyback” exception of Exchange Act Rule 15c2-11(f)(3).
It appears to the Commission that there is a lack of current and accurate information concerning the securities of Ecolocap Solutions, Inc. (“ECOS”) (CIK No. 1290506), a revoked Nevada corporation located in Morton Grove, Illinois with a class of securities registered with the Commission pursuant to Exchange Act Section 12(g) because it is delinquent in its periodic filings with the Commission, having not filed any periodic reports since it filed a Form 10-Q for the period ended September 30, 2017. On August 29, 2019, Corporation Finance sent a delinquency letter to ECOS requesting compliance with its periodic filing requirements, but ECOS did not receive the delinquency letter due to its failure to maintain a valid address on file with the Commission as required by Commission rules (Rule 301 of Regulation S-T, 17 C.F.R. Section 232.301 and Section 5.4 of EDGAR Filer Manual). As of June 25, 2020, the common stock of ECOS was quoted on OTC Link, had five market makers, and was eligible for the “piggyback” exception of Exchange Act Rule 15c2-11(f)(3).
The Commission is of the opinion that the public interest and the protection of investors require a suspension of trading in the securities of the above-listed companies. Therefore, it is ordered, pursuant to Section 12(k) of the Securities Exchange Act of 1934, that trading in the securities of the above-listed companies is suspended for the period from 9:30 a.m. EDT on July 1, 2020, through 11:59 p.m. EDT on July 15, 2020.
By the Commission.
Vanessa A. Countryman
Secretary
Cyclone has ignored a SEC Order. WOW.
https://www.sec.gov/litigation/admin/2020/34-89198.pdf
UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION
SECURITIES EXCHANGE ACT OF 1934
Release No. 89198 / June 30, 2020
ADMINISTRATIVE PROCEEDING
File No. 3-19846
In the Matter of
Cyclone Power Technologies, Inc. and Ecolocap Solutions, Inc.,
Respondents.
ORDER INSTITUTING ADMINISTRATIVE PROCEEDINGS AND NOTICE OF HEARING PURSUANT TO SECTION 12(j) OF THE SECURITIES EXCHANGE ACT OF 1934
I.
The Securities and Exchange Commission (“Commission”) deems it necessary and appropriate for the protection of investors that public administrative proceedings be, and hereby are, instituted pursuant to Section 12(j) of the Securities Exchange Act of 1934 (“Exchange Act”) against the respondents named in the caption (together, “Respondents”).
II.
After an investigation, the Division of Enforcement alleges that:
A. RESPONDENTS1
1. Cyclone Power Technologies, Inc. (“CYPW”) (CIK No. 1442711) is a Florida corporation located in Pompano Beach, Florida with a class of securities registered with the Commission pursuant to Exchange Act Section 12(g). CYPW is delinquent in its periodic filings with the Commission, having not filed any periodic reports since it filed a Form 10-Q for the period ended June 30, 2018, which reported a net loss of $1,437,171 for the prior six months. As of June 25, 2020, the common stock of CYPW was quoted on OTC Link operated by OTC Markets Group Inc. (formerly “Pink Sheets”) (“OTC Link”), had five market makers and was eligible for the “piggyback” exception of Exchange Act Rule 15c2-11(f)(3).
2. Ecolocap Solutions, Inc. (“ECOS”) (CIK No. 1290506) is a revoked Nevada corporation located in Morton Grove, Illinois with a class of securities registered with the Commission pursuant to Exchange Act Section 12(g). ECOS is delinquent in its periodic filings with the Commission, having not filed any periodic reports since it filed a Form 10-Q for the period ended September 30, 2017. As of June 25, 2020, the common stock of ECOS was quoted on OTC Link, had five market makers and was eligible for the “piggyback” exception of Exchange Act Rule 15c2-11(f)(3).
B. DELINQUENT PERIODIC FILINGS
3. As discussed in more detail above, both Respondents are delinquent in their periodic filings with the Commission, have repeatedly failed to meet their obligations to file timely periodic reports, and failed to heed delinquency letters sent to them by the Division of Corporation Finance requesting compliance with their periodic filing obligations or, through their failure to maintain a valid address on file with the Commission as required by Commission rules, did not receive such letters.
4. Exchange Act Section 13(a) and the rules promulgated thereunder require issuers of securities registered pursuant to Exchange Act Section 12 to file with the Commission current and accurate information in periodic reports, even if the registration is voluntary under Section 12(g). Specifically, Exchange Act Rule 13a-1 requires issuers to file annual reports, and Exchange Act Rule 13a-13 requires domestic issuers to file quarterly reports.
5. As a result of the foregoing, Respondents failed to comply with Exchange Act Section 13(a) and Rules 13a-1 and 13a-13 thereunder.
III.
In view of the allegations made by the Division of Enforcement, the Commission deems it necessary and appropriate for the protection of investors that public administrative proceedings be instituted to determine:
A. Whether the allegations contained in Section II hereof are true and, in connection therewith, to afford the Respondents an opportunity to establish any defenses to such allegations; and,
B. Whether it is necessary and appropriate for the protection of investors to suspend for a period not exceeding twelve months, or revoke the registration of each class of securities registered pursuant to Section 12 of the Exchange Act of the Respondents identified in Section II hereof, and any successor under Exchange Act Rules 12b-2 or 12g-3, and any new corporate names of any Respondents.
IV.
IT IS ORDERED that a public hearing before the Commission for the purpose of taking evidence on the questions set forth in Section III hereof shall be convened at a time and place to be fixed by further order of the Commission, pursuant to Rule 110 of the Commission’s Rules of Practice, 17 C.F.R. § 201.110.
IT IS FURTHER ORDERED that Respondents shall file an Answer to the allegations contained in this Order within ten (10) days after service of this Order, as provided by Rule 220(b) of the Commission’s Rules of Practice, 17 C.F.R. § 201.220(b).
IT IS FURTHER ORDERED that the Division of Enforcement and Respondents shall conduct a prehearing conference pursuant to Rule 221 of the Commission’s Rules of Practice, 17 C.F.R. § 201.221, within fourteen (14) days of service of the Answer. The parties may meet in person or participate by telephone or other remote means; following the conference, they shall file a statement with the Office of the Secretary advising the Commission of any agreements reached at said conference. If a prehearing conference was not held, a statement shall be filed with the Office of the Secretary advising the Commission of that fact and of the efforts made to meet and confer.
If Respondents fail to file the directed Answers, or fail to appear at a hearing or conference after being duly notified, the Respondents, and any successor under Exchange Act Rules 12b-2 or 12g-3, and any new corporate names of any Respondents, may be deemed in default and the proceedings may be determined against them upon consideration of this Order, the allegations of which may be deemed to be true as provided by Rules 155(a), 220(f), 221(f), and 310 of the Commission’s Rules of Practice, 17 C.F.R. §§ 201.155(a), 201.220(f), 201.221(f), and 201.310.
This Order shall be served forthwith upon Respondents by any means permitted by the Commission’s Rules of Practice.
Attention is called to Rule 151(b) and (c) of the Commission’s Rules of Practice, 17 C.F.R. § 201.151(b) and (c), providing that when, as here, a proceeding is set before the Commission, all papers (including those listed in the following paragraph) shall be filed with the Office of the Secretary and all motions, objections, or applications will be decided by the Commission. The Commission requests that an electronic courtesy copy of each filing should be emailed to APFilings@sec.gov in PDF text-searchable format. Any exhibits should be sent as separate attachments, not a combined PDF.
The Commission finds that it would serve the interests of justice and not result in prejudice to any party to provide, pursuant to Rule 100(c) of the Commission’s Rules of Practice, 17 C.F.R. § 201.100(c), that notwithstanding any contrary reference in the Rules of Practice to filing with or disposition by a hearing officer, all filings, including those under Rules 210, 221, 222, 230, 231, 232, 233, and 250 of the Commission’s Rules of Practice, 17 C.F.R. §§ 201.210, 221, 222, 230, 231, 232, 233, and 250, shall be directed to and, as appropriate, decided by the Commission. This proceeding shall be deemed to be one under the 30-day timeframe specified in Rule of Practice 360(a)(2)(i), 17 C.F.R. § 201.360(a)(2)(i), for the purposes of applying Rules of Practice 233 and 250, 17 C.F.R. §§ 201.233 and 250.
The Commission finds that it would serve the interests of justice and not result in prejudice to any party to provide, pursuant to Rule 100(c) of the Commission’s Rules of Practice, 17 C.F.R. § 201.100(c), that the Commission shall issue a decision on the basis of the record in this proceeding, which shall consist of the items listed at Rule 350(a) of the Commission’s Rules of Practice, 17 C.F.R. § 201.350(a), and any other document or item filed with the Office of the Secretary and accepted into the record by the Commission. The provisions of Rule 351 of the Commission’s Rules of Practice, 17 C.F.R. § 201.351, relating to preparation and certification of a record index by the Office of the Secretary or the hearing officer are not applicable to this proceeding.
The Commission will issue a final order resolving the proceeding after one of the following: (A) the completion of post-hearing briefing in a proceeding where the public hearing has been completed; (B) the completion of briefing on a motion for a ruling on the pleadings or a motion for summary disposition pursuant to Rule 250 of the Commission’s Rules of Practice, 17 C.F.R. § 201.250, where the Commission has determined that no public hearing is necessary; or (C) the determination that a party is deemed to be in default under Rule 155 of the Commission’s Rules of Practice, 17 C.F.R. § 201.155, and no public hearing is necessary.
In the absence of an appropriate waiver, no officer or employee of the Commission engaged in the performance of investigative or prosecuting functions in this or any factually related proceeding will be permitted to participate or advise in the decision of this matter, except as witness or counsel in proceedings held pursuant to notice. Since this proceeding is not “rule making” within the meaning of Section 551 of the Administrative Procedure Act, it is not deemed subject to the provisions of Section 553 delaying the effective date of any final Commission action.
By the Commission.
Vanessa A. Countryman
Secretary
SEC's Proof of Service to Cyclone -- Last July!
https://www.sec.gov/litigation/apdocuments/3-19846-2020-09-23-declaration-of-gina-joyce.pdf
UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION
ADMINISTRATIVE PROCEEDING
File No. 3-19846
In the Matter of
Cyclone Power Technologies, Inc., et al.,
Respondents.
DECLARATION OF GINA JOYCE
TO ASSIST SECRETARY WITH RECORD OF SERVICE
GINA JOYCE, pursuant to 28 U.S.C. § 1746, declares:
1. I am a Senior Counsel with the Division of Enforcement (“Division”) of the Securities and Exchange Commission, and co-counsel for the Division in the captioned administrative proceeding. I am submitting this Declaration to assist the Office of the
Secretary (“Secretary”) in maintaining a record of service on the Respondents in the captioned proceedings pursuant to Securities and Exchange Commission (“Commission”) Rule of Practice 141(a)(3).
2. Among other means, Commission Rule of Practice 141(a)(2)(ii) permits service on a corporation or entity by delivering a copy of an Order Instituting Administrative Proceedings (“OIP”) to an agent authorized by appointment or law to receive such service or, in the case of an issuer with a class of securities registered with the Commission, by sending the OIP via U.S. Postal Service certified, registered, or Express Mail and obtaining a confirmation of attempted delivery on the most recent address shown on the entity’s most recent filing with the Commission. Further, the OIP
in this matter authorizes service of the OIP “by any means permitted by the Commission’s Rules of Practice.” Therefore, the Division asked the Commission’s Secretary to first attempt service on the Respondents via U.S. Priority Mail Express.
3. The Secretary provided me with the U.S. Priority Mail Express tracking numbers for the copies of the OIPs1 that were mailed by the Secretary to the Respondents in these proceedings. I input each of the tracking numbers into the U.S. Postal Service’s (“USPS’s”) package tracking system on its Internet website located at www.usps.com, and printed out the tracking confirmations in order to obtain confirmation of the delivery or attempted delivery of the OIP on each Respondent. A true copy of the tracking confirmations for both Respondents for whom express mail service was attempted is
attached as Exhibit 1, hereto.
4. The Secretary mailed the OIP to Respondent Cyclone Power Technologies, Inc., CIK 1442711 (“CYPW”), via U.S. Priority Mail Express, Tracking No. ER 006 859 438 US, to the address shown on its most recent EDGAR filing at 601 N.E. 26th Court, Pompano Beach, FL 33064. This address is taken from CYPW’s last filing with the commission, which was a Form 10-Q filed with the Commission on August 31, 2018. The USPS tracking system confirms that the package was delivered on July 29, 2020. See Exhibit 1 at pp. 1 – 2.
5. The Secretary mailed the OIP to Respondent Ecolocap Solutions, Inc., CIK 1290506 (“ECOS”), via U.S. Priority Mail Express, Tracking No. ER 006 859 441 US, to the address shown on its most recent EDGAR filing at 6240 Oakton Street, 1Each service package included the OIP, a letter from the Commission’s Secretary, and a letter from the Division offering discovery pursuant to Rule of Practice 230. 3 Morton Grove, IL 60053. This address is taken from ECOS’s last filing with the Commission, which was a Form 8-K filed with the Commission on April 5, 2018. The USPS tracking system confirms that the package was delivered on July 29, 2020. See Exhibit 1 at pp. 3 - 4.
I declare under penalty of perjury that the foregoing is true and correct.
Executed on September 23, 2020.
___________________________________
Gina Joyce
SEC Deadline March 16th. Delisting soon?
https://www.sec.gov/litigation/opinions/2021/34-91234.pdf
UNITED STATES OF AMERICA before the SECURITIES AND EXCHANGE COMMISSION
SECURITIES EXCHANGE ACT OF 1934
Release No. 91234 / March 2, 2021
Admin. Proc. File No. 3-19846
In the Matter of
CYCLONE POWER TECHNOLOGIES, INC., AND
ECOLOCAP SOLUTIONS, INC.
ORDER TO SHOW CAUSE
The Securities and Exchange Commission (“Commission”) issued an Order Instituting Proceedings (“OIP”) on June 30, 2020, pursuant to Section 12(j) of the Securities Exchange Act of 1934, against respondents Cyclone Power Technologies, Inc., and Ecolocap Solutions, Inc. (collectively, “Respondents”).1
On September 23, 2020, the Division of Enforcement filed the declaration of Gina Joyce, which stated that, pursuant to Commission Rule of Practice 141(a)(2)(ii),2 service of the OIP was made on Respondents on July 29, 2020.
As stated in the OIP, Respondents’ answers were required to be filed within ten days of service of the OIP.3 As of the date of this order, Respondents have not filed answers. The prehearing conference and the hearing are thus continued indefinitely.
Accordingly, Respondents are ORDERED to SHOW CAUSE by March 16, 2021, why the registrations of their securities should not be revoked by default due to their failure to file an answer and to otherwise defend this proceeding. When a party defaults, the allegations in the OIP will be deemed to be true and the Commission may determine the proceeding against that party upon consideration of the record without holding a public hearing.
If Respondents fail to respond to this order to show cause, they may be deemed in default, the proceeding may be determined against them, and their securities may be revoked.4 Upon review of the filings in response to this order, the Commission will either direct further proceedings by subsequent order or issue a final order resolving the matter.
The parties’ attention is called to the Commission’s March 18, 2020 order regarding the filing and service of papers, which provides that pending further order of the Commission parties to the extent possible shall submit all filings electronically at apfilings@sec.gov.5 Also, the Commission’s Rules of Practice were recently amended to include new e-filing requirements, which take effect on April 12, 2021.6
For the Commission, by the Office of the General Counsel, pursuant to delegated authority.
Vanessa A. Countryman
Secretary
Footnotes:
1 Cyclone Power Techs., Inc., Exchange Act Release No. 89198, 2020 WL 3605036 (June 30, 2020).
2 17 C.F.R. § 201.141(a)(2)(ii).
3 Rules of Practice 151(a), 160(b), 220(b), 17 C.F.R. §§ 201.151(a), .160(b), .220(b).
4 Rules of Practice 155, 180, 17 C.F.R. § 201.155, .180; see Cyclone Power Techs., Inc., 2020 WL 3605036, at *2 (“If Respondents fail to file the directed Answers, . . . [they] may be deemed in default and the proceedings may be determined against them . . . .”).
5 Pending Administrative Proceedings, Exchange Act Release No. 88415, 2020 WL 1322001 (Mar. 18, 2020), https://www.sec.gov/litigation/opinions/2020/33-10767.pdf.
6 Amendments to the Commission’s Rules of Practice, 85 Fed. Reg. 86,464, 86,474 (Dec. 30, 2020); see also Amendments to the Commission’s Rules of Practice, Exchange Act Release No. 90442, 2020 WL 7013370 (Nov. 17, 2020); Instructions for Electronic Filing and Service of Documents in SEC Administrative Proceedings and Technical Specifications, https://www.sec.gov/efapdocs/instructions.pdf. The amendments also impose other obligations on parties to administrative proceedings such as a new redaction and omission of sensitive personal information requirement. Amendments to the Commission’s Rules of Practice, 85 Fed. Reg. at 86,465–81.
"The Cyclone Engine has over 1,000 hours of running and testing its engines."
That's the total for every engine they've ever built since at least 2007.
1000 hours over 14 years is 71 hours per year or about 82 minutes per week.
Sounds about right.
The only fake news is in Cyclone's own statements.
You're not the only one to have been taken in. Fruge and Schoell are experienced con artists. Before the massive dilution wiped everyone out there were more than 5000 shareholders, all expecting these wonder engines would be in production in six months.
Periodically someone shows up on this board having been fed a bunch of BS by the pair. The last person was sure that water lubrication of Cyclone engines would work because the pair convinced them ceramic ball bearings that could run in water were working.
After posting bearing manufacturers' data showing that ceramic bearings lubricated with water that could withstand the loads in the Cyclone engine needed to be so big they wouldn't fit in the engine, that person called me a "comic book engineer" and disappeared.
The one and only Cyclone Shareholder Open House was on December 9th, 2011. The slides from the presentation were filed with the SEC at https://www.sec.gov/Archives/edgar/data/1442711/000139843211000968/exh99_1.htm Harry Schoell himself spoke. Here's his slide for progress:
First hurdle he said was overcome: bearings.
Immediately after talking, and before taking any questions, he announced he had to catch a plane and left for the day. At the time their president was Chris Nelson, a lawyer, who probably arranged for the "plane" knowing that if Schoell went off-script he would blatantly lie to investors.
Also at the open house they wouldn't run any engines claiming "the insurance" wouldn't let them.
Later Cyclone hired an engineering group at Ohio State University to fix the problems with the waste heat engine (WHE). Here's one of the PRs (emphasis added):
Cyclone Completes Build of Next Generation Waste Heat Engine With The Ohio State University’s Center for Automotive Research
POMPANO BEACH, FL, November 5, 2013. Cyclone Power Technologies Inc. (CYPW), developer of the all-fuel clean-tech Cyclone Engine, announced today that it has completed the build of its next generation Waste Heat Engine, in conjunction with The Ohio State University’s prestigious Center for Automotive Research (OSU CAR). The model engine, called the WHE-DR, is currently in testing and is expected to be ready to transition into limited production by the end of this year.
The WHE-DR boasts several important advancements over the previous engine model, meant to decrease manufacturing costs and increase operational durability without loss of performance. For instance, the new engine replaces six cylinders with three slightly larger bore cylinders, and utilizes more robust and less complicated admittance and exhaust valving systems, and simplified rod bearing connections. Overall, the WHE-DR has approximately 60% fewer parts than the earlier version. Initial testing has demonstrated significantly smoother and quieter operation, which is expected to result in the successful completion of durability tests over the next two months.
Dr. James H. Durand, Director of Testing, Engineering & Software Development Services at OSU CAR, stated: “We have made great progress in a short period of time, and are very pleased with the resulting engine design of the WHE-DR. We believe this is an engine that will ultimately achieve the reliability and durability expectations of Cyclone and its customers. We feel confident that together with Cyclone’s team we will complete our project goals in the short term.”
“We are very proud of our improved engine. This is a technological and business milestone that must not be understated, as we are fast approaching our transition into phase one manufacturing with our team that we have been preparing in Ohio. For small-scale waste-to-power applications, we believe this product has enormous market potential,” stated Harry Schoell, Chairman and CTO of Cyclone.
•Little or no data exists outside Cyclone’s own experience for the use of water lubrication for either ball bearings or roller bearings in our environment and under our loadings. Calculated life using just the bearing load and the scaling factors for the viscosity of the lubricant indicate that very high ratio of load capacity to applied load is required.
•Minimal data exists for the use of water lubricated polymer journal bearings in our environment and under our loadings. Factors of a 4:1 increase in life have been shown with submerged operation, but little long term wear data is available with pressurized water lubrication.
•For long term durability, we will need to test bearings and bushings under different lubrication schemes and determine to what extent the lubrication can extend the life of the bearing. Test data will be used to complement bearing analysis and will be used to determine accelerated testing factors.
HLS
Re: Steam Bearings
December 20, 2008 10:30AM
HI Guys
We make our own bearings the roller type are ceramic. and just a note water is a better lube than oil as it doesnot break down. The problem is that oil is an electrical insulater where water is a conducter. What happens in metal bearings is they act as a small generator and cause a metal to metal atomic attraction hence gualing. Composits and ceramics do not have this problem and they roll so sweetly. Of course any contaminates do not work well with anything. A total closed loop system with out contaminates is by far the best. The ceramic bearings can live 7 to 10 times longer than a steal bearing.
Harry
Except that there are no Cyclone engines running continuously... Or running for hours...
The Mach 3 Engine has run continuously for many many months.
Cyclone Power Technologies Inc. Announces the Delivery and Acceptance of the Mark 3 Engine to 3R for Production
POMPANO BEACH, FL--(Marketwired - May 25, 2016) - Cyclone Power Technologies Inc. (OTC PINK: CYPW), developer of the all-fuel clean-tech Cyclone Engine, announced today that 3R Denmark ("3R") has accepted and approved their Mark 3, 25HP Cyclone Engine and is ready for integration with their Boiler Systems for combined heat and power (CHP).
The Mark 3 Engine will be shipped to Denmark 3R to begin the integration process. The Mark 3 has successfully finished the testing as required by the 3R development agreement. The testing process can be seen on this link: https://youtu.be/M5wBJZerwrg after being fully integrated into 3R's system, the Mark 3 engine will be ready for sale and distribution worldwide. 3R DENMARK has a distribution agreement to use the Cyclone Power Engines for the specific uses of fuel to power in their unique boiler system being manufactured in China.
"This is the second step in our agreement," states Frankie Fruge, President of Cyclone Power Technologies. 3R DENMARK will purchase the Mark 3 from Cyclone, which will be manufactured for us by Plunkett Energy of Alabama. The production of the boiler system and the transition to the combined heat and power systems including the engine is on target for August 2016 on the Mark 3 - 30KW units, and December 2016 for the 300KW system. The next phase of the previously announced agreement with 3R is the development of the Mark 7 Cyclone Engine.
"This is again consistent with Cyclone's business model of generating revenue from development contracts, royalties, and partnerships. There will be manufacturing related to this agreement and development of new products in our R&D center and future royalties. We are extremely focused on completing projects bringing revenue and profits to our bottom line."
Thor Arendal of 3R stated, "We already have signed customer contracts, a manufacturing facility in China ready for production, and distributors in place. 3R is ready to be one of Cyclone's first major Licensee and a major contributor to their business model. Our management has over 20 years of experience in the production of boilers for heating with many smaller installations and several large installations in the US and Europe. Now we want to take this technology and expand to the combined heat and power industry. This is the fastest growing energy markets in China and the rest of the world. The heat and electrical 'CHP' market is expected to experience exponential growth over the next five years."
Cyclone Power Technologies Receives Purchase Order From I.B.E.S. a UAE Corporation & Update on Cyclone
POMPANO BEACH, FL--(Marketwired - Sep 29, 2016) - Cyclone Power Technologies (OTC PINK: CYPW), developer of the all-fuel, clean-tech Cyclone Engine, announced today that it has signed an agreement with IBES FZ-LLC, based in Dubai Science Park Free Zone in United Arab Emirates, to manufacture and integrate Cyclone's Heat Regenerative External Combustion engines with their wood furnaces to produce electrical power.
IBES has merged with 3R group and has become the surviving entity, and IBES has taken over all the rights and responsibilities. IBES has accepted the engine that was delivered to Denmark this year under the 3R agreement. They have agreed to pay the remaining balance on the contract after successfully integrating it into the 3R furnace system and two months of testing. In addition IBES FZ-LLC has issued the first purchase order for 5 production engines for immediate delivery to Dubai where final assembly takes place.
Frank Cawkwell, CEO of IBES, commented "The 2015 Paris Climate Conference made global leaders committed to a cleaner, greener, and more energy efficient world. The need is to bring electrical power, warmth, clean water, and refrigeration to the more than 2B people still remaining without; this poses a tremendous challenge for the world. Combining Cyclone's revolutionary Rankin cycle engine and 3R's unique wood fueled furnace, IBES has a product that will be a critical component in meeting that challenge. IBES offers a low cost, highly efficient solution that generates electricity to power, for example, lighting and mobile device chargers. It also provides heat energy to operate water purification and refrigeration systems, thus offering access to 21st century standards of living to those who have missed out. We are both passionate about our products and the impact they can affect globally. The creation of IBES and its partnership with Cyclone has brought together two innovative leaders in their industries and a combined 35 years of experience with clean and renewable energy solutions."
"This agreement with IBES FZ-LLC provides us with entry into one of the fastest growing energy markets in the World. The heat and electrical 'CHP' market is expected to experience exponential growth over the next five years," stated Frankie Fruge, President of Cyclone. "We think that partnering with this team of distinguished leaders in their unique equipment operating fields and the new partners with experience in Third World Markets presents a great commercial opportunity for Cyclone. We look forward to the beginning of what we expect to be strong and mutually beneficial relationship with IBES."
Update on Cyclone
FSDS Contract: Cyclone is proud to announce that we will be delivering the S2 engine generator system to FSDS the first week of October. The system will be exhibited as their new Auxiliary Power Unit (APU) for military use at their booth at the AUSA show in Washington DC. They will also be exhibiting the "Cyclone Genie APU System" The Genie is a .5 kW lightweight unit for troops to carry in the field to recharge batteries. Cyclone is excited to show support of their new licensee FSDS, and Frankie Fruge, Cyclone's President will be in attendance. FSDS is a worldwide supplier for military products. The AUSA show is the largest vendor show for Army products visit: http://ausameetings.org/2016annualmeeting/ng/
Audited Financials: Cyclone is still working diligently on getting the financials brought up to date, audited and filed; there have been some unforeseen delays due to reporting requirements associated with derivatives accounting and inventory aging. We anticipate filing within the next few weeks as these issues have now been resolved. Bruce Schames, CFO, said, "As we are all disappointed in the delays, we are working with the attorneys and auditors to get this done as quickly as possible. Everyone is fully aware and working at full speed as we all know time is of the essence."
Plunkett Power Systems: Gary Champaign of Plunkett Power Systems and Republic Energy has now renewed his long-term relationship with Lewis Precision & CNC, Inc. and has moved the Cyclone Mark 3 engine to their enhanced production facility. Please visit their website at http://lpcnc.com/. Gary Champaign states, "We feel this is a strategic move with all the space available to produce 500 engines per quarter and room to expand."
Combilift Forklift engine: Robert Moffett and his partner visited Cyclone's facility a couple of months ago to see the final beta engines that were finishing testing for delivery. They also viewed the updated pre-production versions of the Mark 1 and Mark 3 engines and want to incorporate the upgrades to the Mark 5 engine. This upgrade has a lower parts count and is easier to maintain, which is important in this type of work vehicle.
The maintenance schedule we have got from Cyclone states that the key moving parts has a lifecycle of 30,000 hours (bearings, control valve). The block, cylinders and crank shaft has an indefinite life time. Some ‘consumables’ has a maintenance schedule of 5,000 hours. This applies to piston rings, seals and the seat for the control valve. Belts and water filters a schedule of 2,000 to 3,000 hours.
Except that you're comparing apples to coconuts.
The CRD Pump is just one of many pieces of equipment that have bearings that are lubricated by Demineralized water. The CRD pump has multiple stages and is under significantly more pressure than the Cyclone engine. Just look at the massive casting on the CRD Pump. The CRD Pump runs 24/7 unless the Reactor is refueling. Refueling of most Boiling Water Reactors are once every 2 Years.
Calculated life using just the bearing load and the scaling factors for the viscosity of the lubricant indicate that very high ratio of load capacity to applied load is required.
Yep, Frankie's still lying to investors.
Over on Facebook in response to someone pointing out Ohio State University concluded water lubrication was the biggest technical problem preventing the Cyclone engine from running for any time before self destructing:
So someone provides the link to a presentation by OSU people that Cyclone themselves had posted to their website: https://web.archive.org/web/20150923212126/http://www.cyclonepower.com/2014/IAASP_Presentation_OSU-CAR_Cyclone_March-8-2014.pdf
Slide 19 calls bearings a critical path issue. Their plan for subsequent work (slides 29-32) was to build a bearing test machine and try to invent new kinds of water lubricated bearings since nothing ever tried worked. There were no other components that were described as needing work.
(And, by the way, people have been successfully building Rankine cycle engines for over 200 years. None of them seem to have had the trouble "miniaturizing 50 megawatt steam turbines" as Cyclone has.)
So Frankie's new story becomes:
Of course OSU mentioned the problems with trying to use water as a lubricant, but their people were not from the steam industry!
So what did Cyclone say at the time?
Through CAR, Cyclone-WHE has assembled a team of highly experienced engineers, technicians and researchers, including: Jim Durand, PhD, project lead; Fabio Chiara, PhD, co-lead and director of analysis; Jerry Fly, chief engineer and former General Motors senior engineer; and Eric Schacht, testing and systems lead. Additionally, Cyclone-WHE has reassigned its project engineer for the WHE, Travis Love, from Florida to Columbus, Ohio to work alongside the CAR team and several other engineers that the Cyclone is currently in the process of retaining full-time. The Company’s innovation team in Florida will continue to provide critical design and technical support to the project.
The danger here for the small investor is more dilution.
The last filing they did in 2018 said:
During the six months ended June 30, 2018, the Company:
a- Amortized (based on vesting) $549 of common stock options for employee services.
b- Issued approximately 1,862 million shares of common stock pursuant to conversions of approximately $222,000 of notes payable, accrued interest and related liabilities.
c- The Company issued 571 million shares of common stock valued at approximately $135,000 for accrued liabilities for consulting services.
That's the only thing I can think of.
It sounds like all the "engines" built out of painted kitchenware ended up in a dumpster last summer. (Pity, they would have made great monuments to stupidity...)
If any patents remain in effect, who would want them given a Cyclone engine has never been built that could even power a go-kart?
Probably anything the business had that could be sold out the back door for a buck has been sold out the back door.
Chris Nelson has been making about a quarter million a year with a shell, doing nothing but selling stock and changing the business each time his pool of suckers dried up.
Harry and Frankie hold all the voting shares, but with their house in pre-foreclosure they may be open to selling those for some cash once the foreclosure moratorium ends.
Or, maybe someone is thinking of carrying on with the green energy scam now that a new administration has signaled it is going to promote clean energy. It shouldn't be hard to convince people Harry Schoell is an incompetent moron, and that with a team of "experts" fixing his screwups, the New and Improved Cyclone is worth investing in.
It'll be interesting to see how the scam plays out.
Someone is actually spending money on this stock.
I wonder how long it will be before that 'hard working' Frankie sees this and issues another billion or two shares to make a quick buck.
There is still some value in the shell. But even so, Cyclone had 5 billion shares issued two years ago and there was still a lot of dilution after that. If someone bought 70 million shares, that would be about 1% of the outstanding.
Chris Nelson is making a comfortable living with the shell he bought after leaving Cyclone, at about a quarter million a year for peddling stock. First it was Q2Power that was going to build waste heat steam engines. When the suckers for that ran out the company became Q2Earth that was going to corner the market for compost. Suckers for that ran out and the company is now QSam which has licensed a cancer drug that is just starting the FDA approval process.
Just like Cyclone with "Board of Technical Advisors" that only ever met once, QSam has a dream team of pharmaceutical people listed. We know two are pulling down big money for little or no work. They haven't said what the rest are paid.
The drug itself hasn't yet started the Phase 1 clinical trial. If that goes well, then they need to do a Phase 2 trial, than a Phase 3 trial. Best case scenario is they can begin selling the drug in about 10 years.
Meanwhile, the clinical trials are done by doctors in hospitals independent of this company. Other than selling stock, I can't find any work that Chris Nelson or the others can actually do in the business until they can start selling this drug, maybe starting in 2030.
So I'm kind of surprised that Harry and Frankie aren't renting out the shell for another scam, or selling it outright. They certainly aren't putting any effort into continuing the steam engine swindle.
Yep, Elvis has left the building.
The new tenant at 601 NE 26th Court Pompano Beach looks like a legit business with real products being sold: https://www.canammotorcars.net/index.shtml How refreshing.
Over on Facebook Frankie yesterday posted "Hopefully a press release real soon". She must have another sucker nibbling at the hook.
Otherwise, those selfless, hard working executives don't appear to have done anything since clearing out the building in June.
I forgot about the Cyclone Board of Technical Advisors.
Yep, they gathered engineers from NASA, MIT, Lockheed, one of the big Department of Energy labs out west, and other name-brand outfits, then started putting out PRs and webpages flogging all their expertise.
As far as I was able to find out, there was exactly one meeting of this board, and no advice was solicited.
I agree about the shell. It lets Nelson take 100% of the funds raised from selling stock, rather than a percentage if he was just brokering sales. What the company is supposed to do doesn't matter, as long as the current story attracts enough suckers. Once one pool dries up, it's off to the next.
Except that Quadramet is not Cyclosam.
Here's a quote from Journal of the National Cancer Institute, Volume 96, Issue 21, 3 November 2004
While that is all highly encouraging, a contractual prohibition effectively stops Cytogen from sponsoring a multiyear, large-scale clinical trial that could examine whether Quadramet enhances long-term survival. Dow Chemical has licensed Quadramet to Cytogen only for bone-pain palliation, giving another company—Seattle-based NeoRx—myeloablation rights to a newer radiopharmaceutical, STR (166-holmium DOTMP).
CycloSam is expected to go into Phase 1 clinical trials in the first half of 2021
Why would these "WHO'S WHO" in the drug development pedigree want to put their assets in a public entity like QPWR (or what is now QSAMBio.com???
Except none of them are known to have put any assets in. The recent 8K includes the employment contracts of the two new executives. Schedule IIs show zero stock is owned by either. So they haven't put any of their own cash in.
Baum gets $250K per year, plus bonuses TBD, plus preferred stock TBD.
Piazza gets $225K per year, plus bonuses TBD, plus preferred stock TBD.
Nelson was getting $220K per year.
Other than selling stock, what do you suppose they do with their time? They aren't researchers working in a lab. The Phase 1 FDA trial is done by an independent doctor and hospital, which they don't have anything to do with.
It will be at least 3 years before that Phase 1 trial is completed, then there needs to be a Phase 2, and then a Phase 3 before there is any chance of marketing a product. Assuming no problems with the drug appear in any of the trials.
Given that the drug is a radioisotope, they aren't going to be spending their time setting up a manufacturing facility (i.e., nuclear reactor).
Why are these people involved? Maybe to get over $200K per year for selling a little stock?
By the way, here's a little infographic on Chris Nelson's track record:
But there's a mistake in it. Shareholder loss was 99.7%, not 97%.
A new 8K is out too. https://www.otcmarkets.com/filing/html?id=14493489&guid=n2EeUWsosfdIc3h
Item 3.02 Unregistered Sales of Equity Securities
Between September 15, 2020 and October 31, 2020, the Company settled approximately $2.8 million in defaulted promissory notes issued in 2017 and 2018 with 17 total note holders. Under the terms of such settlements, each such note holder agreed to convert all principal and interest under their respective debt obligations into shares of the Company’s common stock at a price equal to $0.22 per shares (“New Common Stock”). In total, 5,047,095 shares of New Common Stock were issued to the note holders, and an additional 6,356,385 shares are due to be issued to one noteholder but has not yet been issued as of the date of this Current Report.
As of November 6, 2020, an additional $150,000 in deferred employee compensation was converted to 681,818 shares of New Common Stock.
As of November 6, 2020, 521,364 shares of New Common Stock were due to be issued to an affiliate of EPH in connection with the conversion of $114,700 in promissory notes owed to that party.
As of November 1, 2020, the Company issued 800,000 shares of common stock to a service provider under a 12 month consulting agreement in connection with corporate communications and investor relations activities.
In October 2020, the Company issued 600,000 shares of common stock to three consultants in connection with services provided in the transaction and separation of the Company from EPH.
The Company holds approximately an 18.5% subordinated equity interest in EPH, and accounts for EPH as an unconsolidated investee entity. It is the intention of the Company that it will sell back to EPH its equity interests prior to the end of 2020; however, terms have not yet been finalized and proceeds to the Company are not expected to be material. Kevin Bolin, the prior Chairman and CEO of the Company, also serves as President of EPH; and Christopher Nelson, President, General Counsel and Director of the Company, also serves as General Counsel and Secretary of EPH.
4. QSAM has agreed that up to $175,000 in funds raised in a next financing will be used to pay any remaining legacy debt [to EPH] and liability payments anytime after the Effective Date.
CycloSam is expected to go into Phase 1 clinical trials in the first half of 2021
Hmmm. Still not yet recruiting for their first clinical trial. If they don't get a move on they won't complete this Phase 1 trial by September 2023.
Has anyone heard if QSAM has raised the $1 million required by the license agreement for the drug? It says:
3.2 Fund Raise and Board Seat. QSAM shall have 180 days from the Effective Date to raise a minimum of $1 million in equity or debt provided the debt has no security interests on the Product.
Pre-foreclosure? Well, doesn't that just figure.
The two con artists are in their mid-70s, most of the more than $25 million of investors' cash they spent disappeared into "general and administrative expenses", and they were still making mortgage payments.
Frankie is still on Facebook telling people "a Rankine cycle including the Cyclone Engine, do not need transmissions or high hp as they have full torque at 1 rpm. Our first models will be peak 100hp and constant duty 1500 hp."
They still haven't demonstrated a Cyclone engine powering even a go-kart. As mentioned before, they never had the equipment to measure engine torque output at 1 rpm. If they had, they would have discovered that all the water lubricated bearings in their engine would be destroyed in that first rotation at full torque.
And still not even the slightest bit of honesty about the disaster known as the Cyclone engine. Fifteen years of unrelenting failure, tens of millions of investors' money wasted, and the con goes on.
Looks like Cyclone is leaving town.
A hint from their Facebook page: the company phone number stopped working.
The Florida Division of Corporations recorded the business address changed on June 30th to:
Principal Address
281 S E 3RD CT
POMPANO BEACH, FL 33060
That address turns out to be for sale now. Here's a photo:
No doubt the boat is the one that kept showing up in photos taken inside the Schoell Marine building while under construction, you know, the building that was 100% rented by Cyclone and all the Schoell Marine employees were under contract to Cyclone. Which goes some way to explain why General and Administrative expense always far outstripped R&D spending.
Also on Facebook they now say their two engine models are 100 hp and 1500 hp, which would be the Mark 5 and Mark 10. Looks like they've finally given up on all those other models that were Frankie's grand strategy to save the company.
The Mark 5 is the piece of junk that last appeared in a short video five and a half years ago. The Mark 10 exists only in Harry Schoell's delusions.
Yep, they changed the company name to QSAM Biosciences Inc from Q2Earth and before that Q2Power.
Q2Power had hired a few of the engineers from Ohio State University who had tried to fix the problems with the Cyclone WHE engine. They sold one system, took a down payment from the customer then laid off the engineers and vacated their rented building. The customer is still waiting for the system.
Then they were going to corner the market for compost and had licensed a patent and formula for some wonder compost. Instead of buckling down and doing the work to make compost, they sold paper to raise money to invest in compost companies. Of course all the money raised went to pay executive salaries, bonuses and consulting fees to insiders.
Now they have given up on compost and have latched onto a cancer drug. It's been flogged around since at least 2011 and nobody in the pharmaceutical industry would touch it. The Phase 1 clinical trial has been approved, and if they can get the money to fund it starting now, it will take until September 2023 to have the results. Best case scenario is they could then raise some more money for the Phase 2 clinical trial, then the Phase 3 clinical trial after that.
Meanwhile, the company has $4 million in notes that are currently in default. These will convert into stock which will be dumped onto the market. Just like Cyclone did.
Oh, and here's a photo of QSAM Biosciences Inc World Headquarters:
The company occupies one of the rented mailboxes inside.
Yeah, that current report filing in September announced both the 25-1 R/S and the Authorized going from 100,000,000 to 300,000,000.
That would be a before-split level of 7.5 billion shares.
CYPW did the same thing, constantly increasing the authorized into the billions. That was driven by the convertible notes specifying that the authorized shares had to be some factor beyond the number of shares the notes would convert into. Seems to me it was about three times, and the notes converted at a price about 50% of current market.
As the stock price dropped, the A/S was forced to increase. As notes converted and were dumped on the market, stock price dropped, forcing more A/S, and so on.
I'm a little surprised Nelson has gotten himself back into this hole so quickly. At CYPW he had the two management clowns, Harry Schoell as CTO and his girlfriend Frankie Fruge as President. Schoell was then "ingenious inventor" whose only talent was inventing stories of how well his make-believe steam engines worked, and Fruge's talent was writing PRs about how International Corporations kept licensing their technology and how mass production of the engines was starting in six months. (The last story about the corporation with access to billions in investment that was going to fund their foray into major solar energy projects was tracked down to a guy working out of a business incubator office in an abandoned church in Salt Lake City.)
Schoell and Fruge were machines turning out PRs announcing Big Deals and mass production and sales of engines. They got some money from sophisticated investors, but most came from thousands of retail investors. It was years of this before they started running out of retail investors and had to turn to the toxic notes. Even then, there were still lots of people buying the dumped stock as the notes converted, maybe the same retail investors engaging in penny-cost-averaging.
Nelson and Bolin haven't done much publicity to attract the retail market. QPWR was listed as having 306 shareholders of record. They seem to have aimed just for sophisticated investors. The trouble is, those people are harder to swindle.
Today saw the price drop 19% on a $600 trade. Not much of a market for this company. While CYPW had thousands of people buying stock on the way down, QPWR/QSAM with their steam engines/compost/cancer cure strategies obviously doesn't.
So I'm a little surprised Nelson didn't learn you need a sexier story to suck in the bagholders like was done at CYPW. On the other hand, the guy obviously isn't the sharpest knife in the drawer...
Guess where QSAM Therapeutics is located.
Street address is
3616 FAR WEST BLVD SUITE 117-292, AUSTIN, TX, 78731
Which is:
Yep, this powerhouse organization occupies an entire mailbox at the UPS Store.