Cyclone Power Technologies, Inc. (fka CYPW)

[BuddyWhazhizname]

Judgement obtained against Cyclone.

In the Broward County official records.

On May 8, JSJ Investments of Texas registered a judgement of $153,119 plus interest and legal fees against Cyclone for defaulting on notes.

It's not clear if these were convertible notes, but the Cyclone financial statements didn't list any non-convertible notes. If they were convertible notes, it must be that Cyclone refused to issue the stock for them. That could be why we haven't been seeing much dilution for the last few months.

On May 4 at 10:21am, LEAF Capital Funding, LLC of Philadelphia secured all of Cyclone's assets as collateral:

All assets, including but not limited to, all inventory, supplies, accounts, accounts receivables, health care insurance receivables, general intangibles, intellectual property rights, real property, life insurance polices, office leases, chattel paper, instruments, goods, equipment, machinery, fixtures, furnishings, and all other personal property together with all other accessories, accessions, attachments thereto, whether now owned or hereafter acquired, and all other substitutions, renewals, replacements and improvements and all proceeds of the foregoing, including proceeds in the form of goods, accounts, chattel paper, documents, instruments, general intangibles, investment property, deposit accounts, letter of credit rights and supporting obligations (the Collateral”).

Then on May 4 at 3:40pm, Harry filed for security on Cyclone's patents and intellectual property in Schoell Marine's name, even though all the IP had already been secured that morning by the lender.

Meanwhile, over at Schoell Marine,

On February 20, 2015, Schoell Marine took out a mortgage for $217K from CITY FIRST MORTGAGE CORP. They also assigned all leases, profits and rent from the building to City First Mortgage Corp.

On April 30 the first mortgage with Bank of America was paid off. It was a 30 year mortgage and had a balance of $164K in 2013 and 20 years to go then, so it was about $150K to pay it off.

On May 20th, BH Lenders of California gave Schoell Marine a mortgage for $293K. This mortgage has about 20 pages on the rights of the lender right down to the curtains in the windows and how they get the property no matter what possible way Schoell Marine fails.

So there is now $217K + $293K = $510K in mortgages on the Schoell Marine property. Funny thing is that the current market value assessment of land and building is only $407K, so Schoell Marine is at least $100K underwater on their mortgages.

Do you suppose each lender doesn't know the other also gave a mortgage and also secured all the property?

Where are we now?
- Cyclone has stiffed one lender for $153K plus costs.
- All Cyclone assets have been secured by another lender.
- Schoell Marine is mortgaged for more than the property is worth, and who knows how much other debt they have.

Looks like they're setting up for an epic failure. Still no word though on where the $13 million in "General and Administrative" costs over the last eight years have ended up.