Cyclone Power Technologies, Inc. (fka CYPW)

[BuddyWhazhizname]

Hi Tom and MTM,

I came into this and did a bunch of reading, and everything I've seen supports your observations.

Most recently I found the link to Cyclone's technical documents. The Mark V Efficiency Calculations are, technically speaking, bizarre.

There is a 20.3 hp "thermal loss" that comes out of nowhere and has no physical justification. When it's subtracted from the indicated horsepower, however, the net engine power comes out at 98.45, not far from the advertised 100 hp of the Mark V.

As Tom says, Harry Schoell decided in 2002-3 that the engine would be 100 hp, and that's what the calculations would conclude, regardless of how many imaginary factors had to be created.

The calculation also predicts energy efficiency to be similar to that of a diesel engine, but there is absolutely no basis for the assumed fuel burn. He picked a number out of the air that just happened to create an efficiency number that supported the claims he had been making for years.

The document properties of that file show it was created in March 2009. In December 2009 they put out a press release: "Cyclone Power Technologies Runs Flagship Mark V Engine on Steam" (with an external boiler, condenser and no power output measured). Again, as Tom said, the numbers that have been quoted for years had all been made up before any engines were run, let alone been tested and accurate measurements made.

I think this is why no powerboat, land speed record car or even golf cart has ever been shown powered by the Mark V engine. The reality is that the performance won't be anything near Harry's claims over the last decade, and his ego won't allow anyone to see that. Even if it means cratering the company to prevent information from getting out.

What I've seen in the recent corporate maneuvering matches MTM's description to a T. The new CEO and the only independent director of WHE GEN are both securities lawyers. Even though WHE GEN was officially created for investors who didn't want to invest in a publicly held company, their stated goal is to have the SEC registration done by Sept. 1st.

As for building street cred, WHE-GEN is claiming the 33 Cyclone patents, even though none are used by the OSU WHE. They are "partnered" with OSU-CAR. Their technical management consists of 2 PhDs and 2 other engineers at OSU-CAR.

But even though their R&D operation, all their assets, their manufacturing operation are all in Ohio, and their potential customers are machinery makers that want to bolt on WHEs, who will be centered around the Mid-West, the WHE-GEN CEO is staying in Florida and the only outside director is a securities lawyer and not anyone with R&D, engineering, manufacturing or OEM marketing experience. That's not what you do if you believe the company is viable as a business. Tom said before that was the business plan for Cyclone, now proven to be an abject failure. If, however, the goal was to skim off a public offering and move on, it looks just about right.

Technically, I believe the WHE-GEN is going to be a failure. OSU has redesigned it and has been working on it for almost a year now, and it still hasn't met its 200 hour reliability requirement yet. Without a "moon-shot" R&D program to invent new materials, they'll never get to the 10,000 hour life that industrial customers will demand. Meanwhile, a number of big companies are testing Rankine cycle systems for waste heat recovery from exhaust of cars and trucks. Once that hardware is in mass production, WHE-GEN won't be able to compete even if they had a working engine.

So, why move to Ohio for the Winter just to move back once the nice weather hits?