Replies to post #26688 on Cyclone Power Technologies, Inc. (fka CYPW)

[arnold]

Yes, it is true they are selling stock to pay for everything, even to pay the lawyers to defend them in the lawsuits that have resulted.
Let's not ignore the facts. 11 years and 56 million dollars have been spent, the results show that not a single marketable product has been produced. The company has sold BILLIONS of shares and the stock is now a sub penny @ .0002.
The reason Cyclone if putting so much effort into producing SEC filings, is so they can sell more stock.
It has been proven over and over again that this company makes fraudulent statements about producing products and is now involved in numerous lawsuits.( not paying their bills)

The simple fact is that a water lubricated Cyclone engine does not work and this is now clearly a fraud.

[BuddyWhazhizname]

Molten Salt wrote:

I think they are issuing stock to pay their auditor.

From the Q3 2016 10Q:
As of February 1, 2017, there were 1,517,400,273 shares of the registrant’s common stock issued and outstanding.

From the Q3 2017 10Q:
As of December 18, 2017, there were 2,726,067,954 shares of the registrant’s common stock issued and outstanding.

In less than 11 months Cyclone issued 1,208,667,681 shares. Those must be some amazing auditors to get paid so much.

They said that the difficulties they were having with their auditor were Cyclone's fault and that Cyclone had stiffed this auditor when they changed to a new one.

After page 21 of the Q2 2017 10Q:

"2. Satisfaction of Notes: Cyclone Power agrees to pay, and ANC agrees to accept the total sum of $20,000.00 in full satisfaction of the $85,000.00 face value due under both Notes."

Cyclone signed notes for $85K and only paid $20K. Anyone contemplating doing business with Cyclone should take note that this is how Cyclone does not stiff someone.

If you want I can dig out the citations for Cyclone's statement of blaming the audit delays on their choosing auditors so far away, and how dramatic the inventory write-downs were after the auditors started asking questions. Then there are the two business consultants Cyclone hired to do the communications with the two auditor firms. $10,000 per month for each consultant, wasn't it?

Others have imprudently invested too much money in this stock when it had a P/E ratio of infinity ($1-2/share with negative earnings.) Rather than admit that they were foolish, they attack Cyclone for misleading them.

Cyclone misleading investors is what's known in law enforcement circles as "securities fraud". Some foolish investors have a problem with that? You don't say?

Here, let me refer to the presentation made by Harry Schoell at the 2011 Open House, now on file at the SEC. Here's a slide from it:

Investors were told, right by the horse's mouth, that all those technological problems had been overcome in 2011. Yet here we are in 2018 and Cyclone has still not demonstrated a working engine (except for those videos with no more than 70 seconds of a shaft spinning).

Yet Cyclone has never offered an explanation of why the engines aren't working. But they have continuously claimed engine production will start in six months.

Also on file with the SEC is the contract with FSDS for the military genset engines. Notice the last payment on the schedule is "US 75.000 Final engine test completed", and the latest 10Q shows that payment hasn't been made. Also note that Cyclone claimed in December 2016 on Facebook that this testing would be completed in six weeks and full results would be released.

The license agreement with FSDS, also on file with the SEC, at the bottom, says that acceptance test for the engines is a time of operation of > 10 hours with sustained power output of > 8 kW.

So even though Frankie Fruge and Harry Schoell are not honest enough to disclose the material fact that they can't make an engine run for even 10 hours, we know this from SEC disclosures.

And for Frankie Fruge to keep claiming that testing will soon be finished and engine production will soon start after watching 14 years of Harry Schoell's failure to make *any* progress is simply astounding. I mean, how stupid is she if she really believes what she says? It would have to be a Forrest Gump level of stupidity. Even more unbelievable is that Cyclone, whose only business is R&D and has no working product, now spends $5 on administration for every dollar on R&D.

But what engineer ever, has not been overoptimistic about their inventions, at early stages?

But what engineer works for Cyclone? Harry Schoell never set foot in a college, let alone a university with a real engineering school. The Chief Engineer listed at Cyclone has no qualifications given in his bio, other than having worked for Harry Schoell.

When Ohio State University was hired to fix the WHE engine, the first thing they did was eliminate the "spider bearing" since it was the primary cause of engine failure. They announced they expected to get their version of the WHE engine to run for 200 hours, but then found the water lubricated bearings couldn't be made to survive. Their next step was to build a bearing test machine to try to invent a bearing that would work, but Cyclone stopped paying them and there was never any more mention of a bearing test machine by Cyclone.

But we know Harry Schoell is still using investors' money to try to make his "spider bearing" and water lubrication work, and still can't make an engine run for 10 hours.

An engineer would learn from failures and understand the reasons why things happened the way they did. Harry Schoell is like a monkey with a typewriter - sure, the last 14 years produced nothing but gibberish, but if he keeps pounding away eventually something useful will magically appear.

Cyclone is not public about their technology, proving its merit.

The "family of market-ready products" claimed a decade ago has never been disclosed. None of these engines has been publicly demonstrated, or even shown in a video powering anything. Harry Schoell's own promises of publishing test results have been welched on. The speed record boats have never been in the water, and the speed record cars never ran with a Cyclone engine. (Chuk Williams' car did run on the salt flats, but without the engine Harry Schoell promised but could not deliver.)

Merit of the Cyclone engine? Well, as Harry Schoell said in that boating magazine, Schoell Marine was facing tough times in 2008. The Cyclone engine led to millions being poured into Schoell Marine.

In any event, my schadenfreude will be exquisite should Harry Schoell and his comrades succeed in their aims to have purchase order deposits in 1Q 2018 and deliveries and revenue in 2Q 2018.

Yes, Cyclone will take deposits for engines, just as they did from Bent Glass Design of Hatboro, PA in 2008. They did deliver an engine in 2010, but removed it within a week since it didn't work. Or like the deposit they took from Phoenix Power Group LLC of Tennessee in 2009 for two Mark 5 engines for delivery in six months. (Phoenix cancelled that contract in 2013 with no engines after Cyclone had paid out $400,000 in late delivery penalties.) Combilift paid a deposit on their two Mark 5 engines in 2011 with promised delivery in nine months. They're still waiting. FSDS put down a deposit in June 2016 and in December of 2016 Cyclone announced on Facebook the engines were in final testing before shipment. They're still waiting too.

Then there was that outfit in Australia that put down a deposit and got nothing. What was their name again?

The people in Dubai who took over the contract that 3R of Denmark had put down a deposit for can't make their Cyclone system work, no matter how many times they've redesigned it. Obviously Harry Schoell hasn't a clue as to how to help them.

Then there was the group from the Mexican university who paid a deposit on a Cyclone solar generator a couple years ago. Harry was supposed to deliver a working engine in August of 2016. They're still waiting, too.

So, yeah, Frankie Fruge now says engine deliveries in six months and you have to wonder if she is mentally defective, or a pathological liar. Which do you think it is?

By the way, don't you think it's odd that Cyclone believes they will get deposits from customers when, as you say, Cyclone is not public about proving the merit of the engines?

Expect perhaps a 10-1 reverse split to facilitate getting the stock traded on a major Exchange.

To get up to $5 and out of penny stock range would be a R/S of 25,000-1, so that will eliminate the majority of Cyclone investors. 10-1 would just give some room for more dilution.

Your excuse for Cyclone's continuous string of failure is that they were "overoptimistic". That doesn't explain why the engines don't work. Nor does it provide any reason to believe Cyclone doesn't continue to be just as "overoptimistic". Or, more likely, dishonest. Harry and Frankie have known for years the engines don't work, can't be made to run for even 10 hours, and that they haven't any clue about how to make the engines work. In fact, given some of Harry Schoell's previous engineering pronouncements, such as bearings being tiny electrical generators and that aerodynamic drag power does not increase with the cube of speed, it is highly likely that he has no idea why this engines fail so quickly. Which would explain why he has made no progress in fixing them.

Cyclone is a company with a pretend product. A simple public demonstration of a Cyclone engine powering something would disprove this statement. And a public demonstration would be simple to arrange. Take the fake Cyclone engine out of that speedboat Cyclone investors paid Schoell Marine so dearly for, and put in a real Cyclone engine. Launch the boat and post a video of it doing fast laps around Biscayne Bay. Easy. But only possible if the Cyclone engine can be made to work. Which is why we will never see that video.

[Briboy]

Well, you certainly know your stuff
and have done your due diligence.

I have no choice but to hold. Actually,
have dumped a few I regretted later,
like TEUM recently.

Who is trading millions of shares on
this? Why? Is anyone making money
on it?

A reverse split.....well, imo, they
don't work, but you are right, won't
be surprised.

Best wishes

Briboy