Oh, there are lots of reasons Harry and Frankie wouldn't want an honest assessment of their finances released.
For instance, here are the biggest assets listed in the Q3 2014 filing:
- Patents, trademarks and copyrights........$590,643
Many (most?) of the patents have lapsed due to nonpayment of renewal fees. The market value of what's left is questionable since nothing in the patents has ever been shown to work.
- Other assets.............................$559,518
This was stock in Q2Power, almost all of which was sold off according to Q2P's last filing, and the share price of the rest has tanked. It's worth peanuts now, but Harry and Frankie can't really object to reporting this fairly.
- Property and Equipment:
* Display equipment for trade shows................$9,648
* Leasehold improvements and furniture and fixtures...$93,922
* Equipment and computers..........................$427,478
Harry sold his building so the leasehold improvements are gone now. The lion's share of equipment and computers are the speed record car and boat, which are worth close to nothing since they were designed only for Cyclone engines, which don't work. Computers were on a 3 year depreciation schedule, so they would be gone as assets.
- Inventory, net.........................$439,941
This is engine parts and labor and overhead to make engine parts. Trouble is, they are parts for engines that never worked so the market value is as scrap metal.
- Cash.............................$306,320
is long gone.
- Accounts receivable..............$150,000
- Other receviables...............$150,000
It was never clear what these were, but after the Q2Power split Cyclone was owed a final payment of $150K. Chris Nelson claimed Cyclone violated the agreement and a Q2Power statement said that debt was cancelled.
So if you list the fair current value of all these things, Cyclone has almost zero in assets.
But, do you suppose Harry Schoell's ego would let all those engine parts be listed for scrap value? Or that his world record wannabe boat and car would be listed for what they would bring as restaurant decorations? That's the holdup, not the auditors.
Blaming toxic debt, Chris Nelson and derivatives is just a red herring. You can go back for years and see convertible notes, warrants, options and other stock hocus-pocus listed. Why can't those numbers just be updated? Sure, the depth of liabilities will be breathtaking, but that's no reason not to publish it.
There are thousands of public companies in the United States that get their financials audited and filed every quarter. Why is it that only Cyclone can't get their audit done?
Another question worth asking is why Cyclone switched from their past auditor to one in California even when they pay cash up front? Why wouldn't the previous auditor accept new work from Cyclone?
And, another oldie but goodie from Q3, 2014:
"Our R&D team is moving towards completion of the Mark 5 project in Quarter 1 of 2015."
"Cyclone also anticipates to receive initial royalty income from Whe Gen in early 2015 from the Mark 2 engine. This license is from sale of engines that produces power from static waste heat."
Hope they at least remember to change the dates when they cut and paste these predictions into the new reports.
