"Final testing of the Mark 10 1500 horse power unit is projected by year end."
Why not? The Mark 5 has been in "final testing" for three or four (or is it five?) years now.
"As shown in the accompanying consolidated financial statements, the Company sustained substantial operating and other losses and expenses of approximately $2.1 million for the year ended December 31, 2017, and $2.1 million for the year ended December 31, 2016. The cumulative deficit since inception is approximately $63.0 million. "
And Frankie says Cyclone has never had the money to make a working engine....
"On October 1, 2017 the Company executed a consulting agreement known as “Romero Consulting Agreement date October 1, 2017” to render such advice, consultation, information, and services to the Directors and/or Officers of the Company regarding advise, consultation, information and services not limited to business development in Mexico, Central and South America; additional services in social media including but not limited to Facebook, Twitter and SnapChat. "
Maybe consulting on where to offshore all the investor money that was siphoned off into Schoell Marine?
"As of May 24, 2018, an investor provided $199,500 for additional development of the Cyclone Engines as part of a binding letter of intent for $5 million. The consideration is to be the issuance of Preferred A shares, which represents 20% ownership of the Company at the completion of funding. The funds are to be paid over a 2-year period upon reaching various milestones."
Uh-oh. The Secret Investor is requiring Cyclone to meet milestones. Hope they're patient.
Over 5 billion shares issued, and the independent directors still hold zero. Maybe they know something about Cyclone's prospects?
"Total current assets $193"
"Total current liabilities $5,435,362"
"Total general and administrative $1,125,728"
"Total research and development $238,682"
Now $4.72 in G&A for every dollar of R&D.
"Audit Fees – Soles, Heyn & Company, LLP $32,500"
So much for Frankie's BS about the costs to file financial statements.
"On a pro-forma basis if the convertible debt and related interest and penalties were converted at respective conversion rates and applied discounts at the year end common stock price, for the years ended December 31 2017 and 2016 an additional 5.5 billion and 658 million shares would be issuable, respectively. "
10 billion issued shares, here we come!
Page F-13 lists five convertible notes in default. F-18 lists five leases in default. What was Frankie saying about Cyclone having settled all the defaults?
Hmmm. I can't find the prediction of engine production starting in six months.
But, as usual, there's no honesty about how badly the engines work.
