Get Started for Free Contexxia identifies hard-to-find pieces of information in SEC filings. No more highlighters, no more redlining, no more poring over huge documents. CYCLONE POWER TECHNOLOGIES INC (1442711) 10-Q published on Aug 31, 2018 at 1:11 pm
The Company considers all highly-liquid, temporary cash investments with an original maturity of three months or less to be cash equivalents. At June 30, 2018, and December 31, 2017 the Company had no cash equivalents.
Effective July 24 2018, the Company has a signed agreement to sell 76% of its investment in CP for $15,000 and retain 19%. The 5% of CP equity owned by corporate officers is also to be sold. This agreement was closed and fully funded August 2, 2018.
Pursuant to the binding letter of intent by an investor to provide $5 million to the company for additional development of the Cyclone Engines the Company has met all its milestones and has received $10,000 in the third quarter of 2018.
Effective July 24 2018, the Company had a signed agreement to sell 76% of its investment in CP for $15,000 and retain 19%. As of June 30, 2018, $5,000 had been received and the balance was received on August 2 2018. The 5% of CP equity owned by corporate officers was also sold.
Other (Expense) Other expense for the quarter ended June 30, 2018 was $367,845 versus a net loss of $220,049 for the same period in the prior year, a variance of $147,796 (67%). In the second quarter of 2018 the company recognized a non-cash derivative fair value accounting related charge of $468,000 and $35,845 of interest expense partially offset by an expense accrual reduction of $136,000. The 2017 other expenses included $136,049 of interest expense, and $84,000 non-cash derivative fair value accounting related charges.
Other Expense. Net other expense for the six months ended June 30, 2018 was $858,750 versus a net loss of $664,424 for the same period in the prior year, a variance of $194,326 or 29%. In the first half of 2018 the company recognized a non-cash fair value derivative debt related charge of $892,968, and $104,201 of interest expense partially offset by an expense accrual reduction of $136,000. The comparable period for 2017 other expenses includes $407,467 of non-cash fair value derivative debt related charges, $186,023 of interest expense and a $70,934 loss on settlement of debt and liability with company stock.