Cyclone Power Technologies, Inc. (fka CYPW)

[BuddyWhazhizname]

Ahhh, nothing like Planned Dilution.

From the last 10Q, Note 18:

In the fourth quarter of 2014, the Company engaged in the following transactions:

a- The Company issued approximately 80 million shares of common stock in conversion of approximately $55,000 in convertible debt and interest.

b- In October 2014 , the Company borrowed 10 million shares of Company common stock from the Chairman and used the shares for settlement of a liability. The company is obligated to repay these shares as authorized common stock is available.

c- The Company increased the authorized number of common shares to 2,000,000,000 shares. This has been retroactively reflected on these financial statements. Some of these shares will be used to increase the reserve allocation of common stock to the required 300% coverage pursuant to convertible debt agreements.

d- The Company has placed purchase orders for the pre production manufacturing of 10 Mark 1 engines to test application and integration with customers’ systems.

"c" is the interesting one. 300% reserve on shares to cover the convertible notes.

Toxic financing at its best. Shareholders slowly getting wiped out. E.g., item "a" was 80 million new shares to cover a $55K note.

And now the note holders dictate huge stock reserves so they get their money regardless of how the dilution drops the price.

Although Q4 was less dilutive than Q3:

In the third quarter of 2014 the Company issued:
An aggregate of 288,412,566 shares of common stock to 7 investment funds in connection with the conversion of approximately $315,000 in principal and interest on several separate convertible promissory notes.

But still, even if only 80 million shares hit a market that struggles to get a 5 million volume for a day...