CYPW NEWS --
POMPANO BEACH, Fla., May 18, 2010 (BUSINESS WIRE) -- Cyclone Power Technologies
(Pink Sheets: CYPW) has filed with the OTC Markets its Quarterly Report for the
period ended March 3 1, 2010, and has released the following letter to
shareholders:
May 17, 2010
Dear Friends of Cyclone,
Greetings from South Florida! I would like to share with you some of the
financial and operational highlights from the first three months of 2010, as
detailed in our Quarterly Report filed with the OTC Markets.
Financial Development
In the first three months of 2010, we generated $104,900 of revenue compared to
$44,938 for the same period in 2009, an increase of 133% primarily due to the
delivery in March 2010 of our biomass-to-power engine system to Robotic
Technologies under a U.S. Department of Defense sponsored project.
We incurred operating expenses for the first quarter of 2010 of $434,837 as
compared to $417,424 for the same period in 2009. This increase is primarily due
to having more engineers on staff as we grow our operations, and paying higher
professional services in connection with the filing of audited financial
statements with our 2009 Annual Report. Partially offsetting these expenses in
2010 were reduced R&D costs of $91,316 (39%), which reflects in part the
assignment of resources from research to the production of deliverable inventory
as certain of our engine prototypes near completion. Overall, however, net loss
for the recent quarter was $393,901 as compared to a net loss of $402,948 for
the same period in 2009.
We ended the first quarter with cash of $123,000 and total current assets of
$365,000. In the period, we sold 1,303,905 shares of common stock for $115,211,
19,000 shares of Series A Preferred Stock for $95,000, and issued for services
869,200 shares of restricted common stock and 450,000 common stock options
valued at $89,722. As we have said before, we believe that the continued
interest among our key employees and contractors to receive stock and stock
options in lieu of some or all of their cash comp ensation demonstrates an
unwavering commitment to the completion of our technological development and the
success of our company.
Since the end of the first quarter, we have strengthened our cash position by
over $285,000 through the sale of approximately 48,000 additional shares of
Series A Preferred Stock and receipt of $44,900 in design, consulting and
testing fees, partially from continued services performed for Raytheon Company.
You can find our full financial statements with footnotes in our Quarterly
Report for the period ended March 31, 2010, filed with www.otcmarkets.com.
Engine Projects and Technological Development
Waste Energy Recovery: In the first quarter of 2010, we strengthened our
commitment to the technological and strategic development of the waste energy
recovery side of our business. We see the use of waste energy resources such as
used motor oils and exhausted heat from industrial processes to run o ur engines
as representing a greatly underserved market with incredible importance for the
future of our nation's energy policy and our planet's environmental
sustainability. The U.S. Department of Energy has estimated that the efficient
recycling of energy such as used oil and waste heat over the next 20 years can
help reduce our national dependence on petroleum imports, spark billions of
dollars in private investments, and create up to one million jobs in the U.S.
In connection with these opportunities, we continue to advance the development
of our Mark V engine for use with waste oil fuels. This project is being funded
by Phoenix Power Group under our license signed with them in mid-2009. Phoenix
has also recently brought to the table Clean Burn Energy Systems, which is the
leading manufacturer and distributor of waste oil heaters in the world. Working
together on development, marketing, sales and installations, we see huge
poten tial for Cyclone Engines to be the power source for electric generators
running on waste oil fuels, which the EPA considers an important renewable
energy source.
In April we completed the baseline Waste Heat Engine (WHE-25) to be delivered to
Bent Glass Design, Inc. of Hatboro, PA -- which will power a system that will
produce up to 10kW of electricity from the heat exhausted from their furnaces.
We are now testing a newly-designed heat exchanger that will more efficiently
convert heat from their exhaust stacks to our engines' working fluid. We are
also in discussions with several other beta sites to test our waste heat
recovery systems once our initial unit is installed at Bent Glass. We will
conduct these projects through our subsidiary company, Cyclone-WHE LLC, which
was formed with the expectation of generating revenue from the sale and
installation of complete waste heat recovery systems (i.e., not through
licensing revenue, as is Cyclone's business model).
Military: In the first quarter of 2010, we delivered our biomass-to-power system
to our client Robotic Technology Inc., which commissioned the system pursuant to
its Phase II SBIR project sponsored by the Defense Advanced Research Projects
Agency (DARPA), an agency of the U.S. Department of Defense. RTI is building the
EATR, an autonomous robotic platform for long-range reconnaissance; however, we
believe that there are vast commercial opportunities for Cyclone's
biomass-to-power system beyond military purposes. We also continued to perform
testing and design services for Raytheon Integrated Defense Systems, a business
of Raytheon Company, and we are in discussions with them regarding the next
phases of a collaborative project slated for late 2010.
Solar: Our solar thermal engine being developed for Renovalia Energy is
progressing well and performance testing has commenced as of the date of this
le tter. We expect to provide results and pre-production design drawings to our
licensee shortly.
Land Steam Record: As development of our Mark V engine progresses, so does our
project with the U.S. Land Steam Record team, which plans to use this engine to
power the fastest steam vehicle on earth. If you have not already seen it,
please check out the story that the Discovery Channel recently featured on this
project, which has already attracted some interesting contacts and potential
sponsors (Daily Planet, Ep. 168, May 11, 2010).
The first quarter of 2010 was a great start as we strive to advance our
technological development, register our common stock with the Securities
Exchange Commission, and close major agreements with partners like Raytheon. We
are very thankful for your support along this journey, and are confident that
together we can build a company that will make a meaningful impact on our world.
Sincerely, Harry Sch oell, CEO & Director
CORPORATE PROFILE
Cyclone Power Technologies is the developer of the award-winning Cyclone Engine
-- an eco-friendly external combustion engine with the power and versatility to
run everything from portable electric generators and garden equipment to cars,
trucks and locomotives. Invented by company founder and CEO Harry Schoell, the
patented Cyclone Engine is a modern day steam engine, ingeniously designed to
achieve high thermal efficiencies through a compact heat-regenerative process,
and to run on virtually any fuel - including bio-diesels, syngas or solar -
while emitting fewer greenhouse gases and irritating pollutants into the air.
Currently in its late stages of development, the Cyclone Engine was recognized
by Popular Science Magazine as the Invention of the Year for 2008, and was
presented with the Society of Automotive Engineers' AEI Tech Award in 2006 and
2008. Additionally, Cyclone was recently named Environmental Business of the
Year by the Broward County Environmental Protection Department. For more
information, visit www.cyclonepower.com.
Safe Harbor Statement
Certain statements in this news release may contain forward-looking information
within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6
under the Securities Exchange Act of 1934, and are subject to the safe harbor
created by those rules. All statements, other than statements of fact, included
in this release, including, without limitation, statements regarding potential
future plans and objectives of the company, are forward-looking statements that
involve risks and uncertainties. There can be no assurance that such statements
will prove to be accurate and actual results and future events could differ
materially from those anticipated in such statements. The company cautions that
these forward-looking statements are further qualified by o ther factors. The
company undertakes no obligation to publicly update or revise any statements in
this release, whether as a result of new information, future events or
otherwise.
SOURCE: Cyclone Power Technologies
CONTACT:
Cyclone Power Technologies
Media Contact:
Will Wellons, 407-462-2718
will@redletterpr.com
or
Company Contact:
Frankie Fruge, 954-943-8721
Frankie@cyclonepower.com
Copyright Business Wire 2010
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KEYWORD: United States
North America
Florida
INDUSTRY KEYWORD: Energy
& nbsp; Alternative Energy
Oil/Gas
Other Energy
Technology
Other Technology
Transport
Air
Maritime
&nb sp; Rail
Trucking
Other Transport
Public Transport
Manufacturing
Automotive Manufacturing
Environment
; Defense
Other Defense
SUBJECT CODE: Letter
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