Cyclone Power Technologies, Inc. (fka CYPW)

[BuddyWhazhizname]

Some unspun DD...

Cyclone's "partners":


Raytheon ordered 2 Mark 5 engines but got two "Manta 36" engines when the Mark 5s couldn't be made to work. The executive championing the submersible program, Kevin Bowen, retired from Raytheon and there has been no word from them about Cyclone since 2011.

Renovalia ordered a S1 engine for solar collectors, but Cyclone couldn't deliver an engine that worked. Renovalia subsequently settled on Stirling engines for their solar collectors. Everyone in the solar industry knows Renovalia licensed Cyclone technology and it didn't work.

Combilift paid $100k in development fees in 2011 and ordered 2 Mark 5 engines for delivery in Q2 2012. They're still waiting.

Phoenix was the partner for the WHE engine. That's now spun out into WHE Generation. They are no longer a partner of Cyclone.

Tardec paid $1.4m and waited 7 years for a 10kW generator. As people have pointed out, this contract finally was finished, and Cyclone has no follow-up contract.

Ohio State University CAR was hired by Cyclone to do Cyclone's research and development. They've now left with WHE Generation.
Cyclone's R&D is back to Harry Schoell, who hasn't been able to publicly demonstrate a working engine after 10 years and 10s of millions spent on development.

Precision CNC left with WHE Generation. Yesterday's memo said Cyclone has hired a new machine shop, Hypex.

Team Steam USA is the land speed record car sponsored by Cyclone. They had the car built in 2012 but have never put an engine in it. It looks good, though.

New "Partners":

Hypex is a machine shop that makes things for customers. Customers pay for the parts they get. Hypex isn't merging with or funding Cyclone.

Ranotor is a one-man Swedish company that promotes steam engines. There is no record they have ever sold anything, or even built a working engine. (If they sold only stock, they'd be much like Cyclone.)

Dr. Kim is a professor who studies cold fusion (=LENR). Cold fusion is an example of a "pathological science". Will cold fusion help Cyclone? Why not?

Material Improvement in Liabilities:

Read the 8K closer:

SCHEDULE 1.1

USE OF PROCEEDS

Seed Round (assuming full $350,000) :

$100,000 – Operations for WHE GEN 1 to 2 months;
$100,000 – Payment of currant payables from contractors and vendors of WHE GEN;
$20,000 -- Payment to Cyclone for elimination of any intercompany debt;
$75,000 – Payment to TCA for retirement of senior secured debt (if pay-off amount is greater, WHE GEN will be responsible for that additional amount, or may arrange for such additional amount to be otherwise purchased or assumed by a third-party to whom Cyclone will provide an unsecured convertible note in exchange).
$20,000 – Legal fees to Roetzel & Andress (inclusive of $15,000 previous invoices as assumed by WHE GEN)
$20,000 – Legal fees for funder’s counsel
$15,000 – Fairness Opinion to David Brooks & Assoc.

Of Cyclone's millions in liabilities, they've only received $75K from WHE, and that went directly to one creditor.
From page 21 of the Q1 10Q:

Based on the milestones set forth in our six and 18 month project plan, management is reasonably confident that sales for the limited first generation WHE will be approximately $2 million over the following 12 months – revenue through our subsidiary which will support the next mass manufacturing phase of product development.

This was Cyclone's only reasonable chance at revenue this year, but WHE Generation is no longer a subsidiary so Cyclone will have to continue to survive with no revenue but lots of debt.