SOURCE: Cyclone Power

August 20, 2015 14:07 ET

Cyclone Power Technologies Will File Financial Reports and Releases Progress to Shareholders

POMPANO BEACH, FL--(Marketwired - Aug 20, 2015) - Cyclone Power Technologies (OTC PINK: CYPW) will file a financial Report for the period ended December 31, 2014, the first two quarters of 2015, and is releasing the following progress report to its shareholders:

Dear Shareholders:

Cyclone Power and its employees have been working very diligently on the restructure with the primary focus of getting product to market. In the restructure it was imperative to eliminate the accrued expense which now has been done. The decision was also made to file unaudited year end financials, un-reviewed quarterly reports, and save the audit and legal expense at this time.

Accounts Receivable and Debt Reduction

The Spinoff of WHE GEN (Q2 Power) caused a deficit of $150,000 from our prior projected funds and resulted in a related $150,000 receivable to be collected from the sale of 625,000 shares in WHE GEN (Q2 Power). This has still not been paid but demand for payment has been made. The Combilift contract will still allow us to collect $300,000 upon deliverables. All accrued expense of the Company from salaries, rents, and related interest owed to the majority of employees, all officers, and Schoell Marine have been forgiven in an attempt to clean up the balance sheet and to bring in new money. As of June 30, 2015, the amount forgiven is approximately 1.8 Million and has been reflected now as a contribution to capital.

Revenue & Expenses

Management is continuing its efforts to channel resources on revenue-producing projects. With the projected royalty streams from WHE-GEN and others, revenue from the sales of the Cyclone Engine integrated into a power generation system to distributors, income from R&D, and distributors' fees, and the finalization of the integration of the Cyclone engine to a commercialized product, we feel that our business model is finally coming to fruition.

Technology and Business Advancements

The Company has made considerable progress towards the commercialization of our products. Cyclone has identified and is using two manufacturers for the Mark 1 and Mark 3 Engine. TAW Power System, a generator power integrator and manufacturer, has given us a quote and we are finalizing the integration of the Mark 1 and Mark 3 for sales to our Distributors. Cyclone, under our new Business model, will be the buyer of the Cyclone Engine Powered Generators and sell them to our distributors Worldwide. Currently there are two Distributors that are ready to take the first production generators. The Company has signed numerous agreements with international engineering and consulting companies to represent us in broader markets and to their clients. Our focus is on revenue via sales of products, distributors and royalties.

Cyclone is identifying a strong management team to take the products worldwide. There are several candidates in the queue and they will be on board within a short period of time. This is a critical step to the steady growth into the global market.

We have not had other extra resources to devote to our Land Speed Record attempt, and therefore, have delayed it until 2016. Our Combilift project is in the final process of the 50-hour testing and we are hopeful for a 2015 delivery. This was delayed due to the resources going to the production of engines. Both the LSR streamliner and the Combilift equipment will utilize the Mark 5 model engine. This is a remarkable engine that we expect to have available for manufacturing in mid-2016.

Capital Markets and Funding

We have seen continued pressure on the public market's side for our Company's valuation. Admittedly, this is partly because our development has taken longer than previously anticipated and required additional funding, which is addressed above. It is also a result of certain promissory notes being converted to common stock and sold into the market over the last few quarters. Like many other micro-cap entities, Cyclone issued these convertible notes over the last year to fund a material portion of our operational and R&D shortfall. The Company is grateful to these funding groups, and understands that liquidating their positions periodically is a standard investment strategy for them. Additionally we had to increase our authorized common stock levels to accommodate the convertible contracts that obligate the Company.

As a long term shareholder, one should not correlate the common stock selling activities with the progress of our business model and the viability of our technology. We are now a viable company for the clean-tech and green-energy funding sources and we believe that our story is quite compelling:

  • Globally patented engine technology with potentially "game changing" attributes.
  • Worldwide markets with a current invested customer base that includes the U.S. Army and Fortune 150 Corporation.
  • Focused path to commercialization for our initial engine products.
  • Experienced technical team, manufacturers, and integrator.
  • Current focus on sales and revenue.

Our shareholders and supporters must not overlook these strengths of Cyclone, as they truly separate us from the vast majority of "micro-cap" companies out there. We are energized by these accomplishments, and will continue to work diligently until we have yielded results for our shareholders.

On behalf of the entire Cyclone team, thank you for your support.


Frankie Frugé

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 other 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.

About Cyclone Power Technologies
Cyclone Power Technologies is the developer of the award-winning Cyclone Engine -- an all-fuel, clean-tech engine with the power and versatility to run everything from waste energy electric generators and solar thermal systems to cars, trucks and locomotives. Invented by company founder and Chairman Harry Schoell, the patented Cyclone Engine is an eco-friendly external combustion 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. The Cyclone Engine was recognized by Popular Science Magazine as the Invention of the Year for 2008, was included in a 2011 report by Popular Mechanics as an important waste energy technology for the future, and was twice presented with the Society of Automotive Engineers' AEI Tech Award. Additionally, Cyclone was named Environmental Business of the Year by the Broward County Environmental Protection Department. For more information, visit

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