Cyclone Power Technologies, Inc. (fka CYPW)

[BuddyWhazhizname]

Yep, the CYPW bankruptcy clock is ticking...

For the three months ended September 30, 2014, interest expense alone was $281,158. The operating expenses that quarter were $1,028,699 beyond the interest. That's a cash burn closing in on $20K per business day.

On the revenue side, they got some money last year from splitting off the WHE division. Since November there has been no revenue. Their only order is two Mark 5 engines for Combilift. If Combilift accepts them, and the acceptance criteria is that Combilift determines they are suitable for powering commercial forklift trucks, Cyclone gets $300K. Less than one month of cash burn. Oh, and Combilift does that acceptance in Ireland, according to no schedule, and the engines are only to be shipped there after they each complete 50 hours continuous on a dyno under load. Even if the engines shipped today, and Combilift really liked them, it would be months before Cyclone got a penny.

The reality is more like this. Combilift paid a $100K deposit three and a half years ago with a promise of engines delivered in 9 months that would perform better than any internal combustion engine. So far they've gotten nothing for that money, except for a whole stream of broken promises. The Mark 5 engine keeps devolving, losing its patented features that were to have given it superior performance, and it still can't run for even 50 hours. Why would they want to dump another $300K down this rat hole?

Tom and I have been analysing the engineering of the Mark 5 over the last year. We had concluded that the patented valve train could not work, the patented condenser could not work, the patented "Schoell cycle" could not work and the engine was not controllable. February's short video clip showed the current Mark 5 has had those patented features removed, and you can hear the engine speed going up and down like a yoyo. Believe it or not, the thing in that video is the culmination of more than $20 million in development.

So, they've got no product and no chance of a product. There's no other asset they have that could be sold to raise cash. They've got big debt and big fixed overhead.

Any minute now the lights are going out. What's a share of CYPWQ going to be worth?