POMPANO BEACH, FL--(Marketwired - Mar 29, 2017) - Cyclone Power Technologies (OTC PINK: CYPW) releases audited financial statements for the 2014 and 2015 with unaudited/un-reviewed three Quarters for 2016 and complies with the reporting requirements of the governing bodies in order to bring the company current. "We realize that we are 6 months behind schedule as we reported, but after a huge undertaking and working with our accountants, auditors, consultants, and attorneys, we are finally finished! The delays were the result of our audit firm having significant turnover and that they were physically located in California and not near our offices. In addition there was significant complexity in accounting treatment for debt, equity and the WHE spin off which took significant effort by management. These were unforeseen events and set the Company back significantly. The filed audited financials are presented under US GAAP accounting with only a 'going concern' in the audit opinion," Frankie Fruge stated
"Cyclone is taking these delays in stride and is proceeding to bring a working engine to mass market and feel that even though we were waiting for the financials to be finished, we have made great progress with our engines and customers," states Frankie Fruge, company president.
A Brief Update to Cyclone Shareholders:
Cyclone is continuing with their core business model. This will include the basic long term business model of licensing OEM's, Engine manufacturers and Distributors. All sales will flow thru Cyclone Power and sold to OEM's and Distributors. There are several in place as stated in previous press releases and we are working with them to get to retail sales.
This is the continuation of Cyclone's business of developing product and getting it to market thru licensing for specific uses and licensing for manufacturing and Distributors. Developing technology as unique and potentially disruptive as Cyclone's engines requires significant resources. From the Company's inception, however, raising sufficient funding has been a challenge. Currently, our share price, debt load, and other market factors have created further headwinds towards this objective. Opportunities for Cyclone with long-term capital advantages have presented themselves and could led to a strategic move.
Based on the totality of all the facts, Cyclone is undergoing the following:
1) WHE GEN did not complete the sale of Cyclone stock in that Company therefore Cyclone has had to adjust their projects and projections.
2) WHE GEN did not close the final agreements in a timely matter therefore leaving Cyclone with no alternative but to leave the convertible debt in place and use the funds for developing and getting product to market.
3) Cyclone has survived this and has engaged two companies to build the first preproduction models of the Mark 1 and the Mark 3. The first 10 Mark 1's have arrived and are in the process of being put into systems and to potential OEM's. Two were used in the FSDS project and one in the G2E solar which has been run for months at the Cyclone factory. The first 3 Mark 3's were finished and 3 more are being completed. One Mark 3 was shipped to IBES and has been under long term testing with their furnace. They have put in a request for pricing of 5 more units.
4) Cyclone felt that the production is close and have now brought the financials up to date.
This was a difficult task as the audit firm was 2700 miles away and our old auditor was local to our offices. Given the logistical challenges that we faced using a firm from California we have decided to now engage a local firm again.
5) All contracts are still in place and the team is working toward getting them complete as dollars allow. New contracts are in the works but could not be finalized until the audit was complete. They are now back at the table.
We all have to know that bringing a new product to market as a small undercapitalized Company is not an easy task. However, nine major staff members have continued to work without a salary and knowing that it can't be paid until the products are rolling out the door. The CTO and the President still have not taken salaries or sold stock and the CFO has not taken a salary in three years. As reported in the audited financials you will see where they forgave a major portion of their historical loans and salaries.
Cyclone has taken the stance of letting the bloggers be the bloggers. We do not feel these bloggers are our core investors nor are they our sophisticated investors. Our investors and any sophisticated investor know from reading the bloggers that they don't even know how to read a set of financial statements. As all our investors know we try to answer every email that comes in with a question. We try to take phone calls but with limited resources there is not available staff time and we regret that.
Cyclone's staff appreciate all the support and let's look to the future.
Chairman & CTO