Hi Creston, the auditor only signs off that the numbers are accurate. All the rest of the explanation in the financial reports is the responsibility of management, and lawyers are used to make sure management doesn't say things that get them sued.
In practical terms, Cyclone won't get sued except maybe by a shareholder-lawyer with spare time just for kicks. Cyclone has nothing and has no prospect of every having anything of value. A judgement against Cyclone would be easy but collecting would be impossible. The millions that went through Cyclone is very well hidden by now.
There is a "safe harbor" provision in the law that protects management from being sued over predictions they make that don't come true. Note that every single financial report and PR ever issued by Cyclone highlights this. Trouble for them is the safe harbor law specifically excludes penny stock companies. Frankie is well aware all those bogus predictions of engine deliveries and production starts she has ever made are not predicted by safe harbor, but she keeps making them anyway.
But, the lawyers would only come into the picture to check the reports after they are written. Harry and Frankie are determined to keep misleading shareholders about Cyclone's financial position and the auditors will never sign off on that. For example, on their website the Shares Outstanding number is now two full years out of date. The "Leadership" is also mostly people who have been gone for two years.
And it's now five full years since that Shareholder Open House where Harry told everyone all the technological problems with the engine had been solved.
Harry and Frankie are going to prevent honest disclosure if it's the last thing they do.
Eventually the SEC will issue a stop trade order for failing to file financial reports. SEC, though, is understaffed and don't care much about tiny fish like Cyclone. That leaves Harry and Frankie to continue to swindle investors and customers.
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