Hey Tom, I think you're being generous with their chances.
But I am amazed that they don't just put it in bankruptcy and flip the shell. Probably Harry's ego is what's standing in the way. A voluntary bankruptcy would be a public admission his "ingenious invention" was a failure.
No doubt Schoell Marine has secured all the assets. No other creditor would bother petitioning for bankruptcy since they would get nothing.
Harry Schoell would be the only one to place any value on his patents, inventory of (non-working) engine parts and equipment, which seems to consist of a manual mill, manual lathe, land speed record car (with no engine), water speed record boat (with no engine) and various cookware dressed up as fake engines.
My guess is that Schoell Marine is now carrying Cyclone. Cyclone has always paid dear to rent the entire 6000 square foot Schoell Marine building. The last two or three years Cyclone has also been paying to rent 2000 square feet of extra space. There has never been any pictures of that space, but pictures of the Schoell Marine building no longer show the truck frame, lawn mower etc., etc. filling up a corner. So all the Cyclone dead stock is stored somewhere else. The WHE stuff all went to Ohio. There is only that mickey-mouse engine stand left to fill the 6000 square feet of Schoell Marine building that Cyclone rents.
And when you figure that Cyclone has been paying at least $2 million per year for the last several years for "General and Administrative" expenses, with Harry and Frankie claiming not to take salaries, it's one hell of a lot of money to spend in a complex with only a tiny amount of office space. Where has it all gone?
Everyone who designed, fabricated, tested or touched an engine is R&D expense, not general and administrative. Take those people, all the materials purchased and contractors fees out of the mix, and what else have they had to spend money on? Especially $2MM per year. Look at pictures inside the building over the years, and not much has changed. So the money didn't go there. Where has it gone?
The financing costs are also in their own category.
There's always been an "Operating Agreement" between Cyclone and Schoell Marine for "services". That's the only drain that I have ever found that could explain the constant cash outflow.
My bet is Harry is now drawing back some of the cream he's been skimming off Cyclone to keep it going.
AI
