It looks to me like a Ponzi scheme that falls just inside the law.
Nelson proved the Cyclone WHE engine is an irredeemable failure. He's now winding down that business? All the workers were laid off last May. What's left to wind down?
He's been trying to raise money to buy a composting operation in Georgia since then or before. Since Q2Power is just a shell with a lot of debt and no assets, it's not a surprise that no one has given him more millions so he can skim off another big share for himself.
Notice a couple things in the announcement:
1) They closed $1,000,000 note offering.
2) $1,000,000 in liabilities has been restructured.
They don't detail how much of the "new" million is really old debt in another form.
So the existing note holders who weren't getting paid can have new notes. This PR goes out predicting great things. If they find new suckers to put up cash money, Nelson takes his cut and the existing investors can get their money out.
If Q2Power ends up in the composting business it will be coincidental. The name of the game here is to get money from new investors to pay out to the old investors. Just like Mr. Ponzi did.
After all, if Chris Nelson wanted to get into the composting business he could simply rent a little land, collect tipping fees for truck loads of sewage sludge and wait. Barriers to entry are minimal. Capital requirement is minimal. The technology isn't complicated. But he hasn't. The composting business story is just bait.
