Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 15-May-14 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'CYCLONE POWER TECHNOLOGIES INC | ' |
Document Type | '10-Q | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Common Stock, Shares Outstanding | ' | 344,215,227 |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0001442711 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
CURRENT ASSETS | ' | ' |
Cash | $7,059 | $17,363 |
Inventory, net | 589,184 | 489,420 |
Other current assets | 42,662 | 55,020 |
Total current assets | 638,905 | 561,803 |
PROPERTY AND EQUIPMENT | ' | ' |
Furniture, fixtures, and equipment | 502,562 | 502,562 |
Accumulated depreciation | -133,621 | -125,799 |
Net property and equipment | 368,941 | 376,763 |
OTHER ASSETS | ' | ' |
Patents, trademarks and copyrights | 571,178 | 571,178 |
Accumulated amortization | -205,872 | -196,410 |
Net patents, trademarks and copyrights | 365,306 | 374,768 |
Other assets | 2,762 | 2,762 |
Total other assets | 368,068 | 377,530 |
Total Assets | 1,375,914 | 1,316,096 |
CURRENT LIABILITIES | ' | ' |
Accounts payable and accrued expenses | 689,472 | 682,692 |
Accounts payable and accrued expenses-related parties | 443,196 | 1,965,596 |
Notes and other loans payable-current portion | 585,282 | 729,905 |
Derivative liabilities | 619,268 | 484,796 |
Notes and other loans payable-related parties | 782,746 | 775,120 |
Value of shares loaned by stockholder | ' | 1,496,217 |
Capitalized lease obligations-current portion | 5,920 | 6,161 |
Deferred revenue and license deposits | 416,441 | 416,186 |
Total current liabilities | 3,542,325 | 6,556,673 |
NON CURRENT LIABILITIES | ' | ' |
Capitalized lease obligations-net of current portion | 19,222 | 20,550 |
Notes and other loans payable-net of current portion | 64,869 | 30,997 |
Total non-current liabilities | 84,091 | 51,547 |
Total Liabilities | 3,626,416 | 6,608,220 |
Commitments and contingencies | ' | ' |
STOCKHOLDERS' DEFICIT | ' | ' |
Common stock, $.0001 par value, 900,000,000 shares authorized, 332,043,678 and 272,679,942 shares issued and outstanding at March 31, 2014 and December 31, 2013, respectively. | 33,204 | 27,268 |
Additional paid-in capital | 51,103,199 | 48,644,132 |
Treasury stock, 3,000,000 and 40,405,420 shares, at March 31, 2014 and December 31, 2013 respectively, at cost. | -210,000 | -1,706,217 |
Prepaid expenses with common stock | -418,545 | -595,980 |
Stock subscription receivable | -6,000 | -6,000 |
Accumulated deficit (inclusive of non-cash derivative losses of $31,386,386 and other losses of $22,154,169 at March 31, 2014 and non-cash derivative losses of $31,033,299 and other losses of $21,440,971 at December 31, 2013) | -53,540,555 | -52,474,270 |
Total stockholders' deficit-Cyclone Power Technologies Inc. | -3,038,697 | -6,111,067 |
Non controlling interest in consolidated subsidiaries | 788,195 | 818,943 |
Total Stockholders' Deficit | -2,250,502 | -5,292,124 |
Total Liabilities and Stockholders' Deficit | 1,375,914 | 1,316,096 |
Series B Preferred Stock [Member] | ' | ' |
STOCKHOLDERS' DEFICIT | ' | ' |
Series B preferred stock, $.0001 par value, 1,000 shares authorized, 1,000 shares issued and outstanding at March 31, 2014 and December 31, 2013, respectively. | 0 | 0 |
Attributable to Non-Cash Derivative Liability Accounting [Member] | ' | ' |
STOCKHOLDERS' DEFICIT | ' | ' |
Accumulated deficit (inclusive of non-cash derivative losses of $31,386,386 and other losses of $22,154,169 at March 31, 2014 and non-cash derivative losses of $31,033,299 and other losses of $21,440,971 at December 31, 2013) | -31,386,386 | -31,033,299 |
Attributable to Operating Losses [Member] | ' | ' |
STOCKHOLDERS' DEFICIT | ' | ' |
Accumulated deficit (inclusive of non-cash derivative losses of $31,386,386 and other losses of $22,154,169 at March 31, 2014 and non-cash derivative losses of $31,033,299 and other losses of $21,440,971 at December 31, 2013) | ($22,154,169) | ($21,440,971) |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Common Stock, Par Value (in Dollars per share) | $0.00 | $0.00 |
Common Stock, Shares Authorized | 900,000,000 | 900,000,000 |
Common Stock, Shares Issued | 332,043,678 | 272,679,942 |
Common Stock, Shares Oustanding | 332,043,678 | 272,679,942 |
Treasury Stock, Shares | 3,000,000 | 40,405,420 |
Non-cash Derivative Losses and Other Losses (in Dollars) | ($53,540,555) | ($52,474,270) |
Series B Preferred Stock [Member] | ' | ' |
Preferred Stock, Par Value (in Dollars per share) | $0.00 | $0.00 |
Preferred Stock, Shares Authorized | 1,000 | 1,000 |
Preferred Stock, Shares Issued | 1,000 | 1,000 |
Preferred Stock, Shares Outstanding | 1,000 | 1,000 |
Attributable to Non-Cash Derivative Liability Accounting [Member] | ' | ' |
Non-cash Derivative Losses and Other Losses (in Dollars) | -31,386,386 | -31,033,299 |
Attributable to Operating Losses [Member] | ' | ' |
Non-cash Derivative Losses and Other Losses (in Dollars) | ($22,154,169) | ($21,440,971) |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
REVENUES | ' | $251,441 |
COST OF GOODS SOLD | 27,000 | 165,476 |
Gross margin | -27,000 | 85,965 |
OPERATING EXPENSES | ' | ' |
Advertising and promotion | 7,605 | 7,196 |
General and administrative | 437,739 | 420,729 |
Research and development | 124,180 | 250,550 |
Total operating expenses | 569,524 | 678,475 |
Operating loss | -596,524 | -592,510 |
OTHER EXPENSE | ' | ' |
Derivative expense -notes payable | 55,158 | ' |
Interest expense | 445,351 | 76,376 |
Total other expense | 500,509 | 76,376 |
Loss before income taxes | -1,097,033 | -668,886 |
Income taxes | 0 | 0 |
Net loss | ($1,097,033) | ($668,886) |
Net loss per common share, basic and diluted (in Dollars per share) | $0 | $0 |
Weighted average number of common shares outstanding, basic and diluted (in Shares) | 261,282,936 | 239,988,736 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net loss | ($1,097,033) | ($668,886) |
Adjustments to reconcile net loss to net cash used by operating activities: | ' | ' |
Depreciation and amortization | 17,284 | 16,743 |
Issuance of restricted common stock, options and warrants for services | 54,572 | 181,785 |
Loss from derivative liability-notes payable | 55,158 | ' |
Amortization of debt discount | 297,929 | ' |
Original issue discount paid with stock | 10,714 | ' |
Changes in operating assets and liabilities: | ' | ' |
(Increase) decrease in inventory | -99,764 | 119,631 |
Decrease in other current assets | 12,358 | 13,731 |
Increase in accounts payable and accrued expenses | 126,577 | 82,022 |
Increase in accounts payable and accrued expenses-related parties | 102,674 | 98,958 |
Increase in deferred revenue and deposits | 255 | ' |
Net cash used by operating activities | -327,746 | -133,543 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Expenditures for property and equipment | ' | -4,625 |
Net cash used by investing activities | ' | -4,625 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Payment of capitalized lease obligations | -1,569 | -1,075 |
Proceeds from notes and loans payable | 240,000 | 70,000 |
Repayment of notes and loans payable | -38,615 | -10,000 |
Proceeds from sale of common stock | 110,000 | 100,000 |
Increase in related party notes and loans payable-net | 7,626 | 6,874 |
Net cash provided by financing activities | 317,442 | 165,799 |
Net (decrease) increase in cash | -10,304 | 27,631 |
Cash, beginning of period | 17,363 | 14,888 |
Cash, end of period | 7,059 | 42,519 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ' | ' |
Payment of interest in cash | 25,121 | 1,857 |
NON CASH INVESTING AND FINANCING ACTIVITIES: | ' | ' |
Value of shares repaid to stockholder | 1,496,217 | ' |
Forgiveness of deferred officers' salaries as contributed capital | 956,762 | ' |
Warrant [Member] | ' | ' |
Adjustments to reconcile net loss to net cash used by operating activities: | ' | ' |
Warrants issued pursuant to repayment of debt in common stock | ' | 22,473 |
Derivative Debt Discount [Member] | ' | ' |
Adjustments to reconcile net loss to net cash used by operating activities: | ' | ' |
Amortization of debt discount | 297,929 | ' |
Prepaid Expense [Member] | ' | ' |
Adjustments to reconcile net loss to net cash used by operating activities: | ' | ' |
Amortization of prepaid expenses via common stock & warrants | 177,435 | ' |
Original Issue Discount [Member] | ' | ' |
Adjustments to reconcile net loss to net cash used by operating activities: | ' | ' |
Amortization of debt discount | 14,095 | ' |
Issuance for Deferred Officers' Salaries [Member] | ' | ' |
NON CASH INVESTING AND FINANCING ACTIVITIES: | ' | ' |
Common stock issued | 668,312 | ' |
Issuance for Accrued Expenses [Member] | ' | ' |
NON CASH INVESTING AND FINANCING ACTIVITIES: | ' | ' |
Common stock issued | 75,000 | 12,875 |
Issuance for Debt Repayment [Member] | ' | ' |
NON CASH INVESTING AND FINANCING ACTIVITIES: | ' | ' |
Common stock issued | 285,317 | ' |
Issuance for Debt Interest [Member] | ' | ' |
NON CASH INVESTING AND FINANCING ACTIVITIES: | ' | ' |
Common stock issued | 12,616 | ' |
Repayment of Related Party Payables [Member] | ' | ' |
NON CASH INVESTING AND FINANCING ACTIVITIES: | ' | ' |
Common stock issued | ' | 54,000 |
Repayment of Debt [Member] | ' | ' |
NON CASH INVESTING AND FINANCING ACTIVITIES: | ' | ' |
Common stock issued | ' | 115,226 |
Payment of Debt Interest [Member] | ' | ' |
NON CASH INVESTING AND FINANCING ACTIVITIES: | ' | ' |
Common stock issued | ' | $15,978 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (Unaudited) (Parentheticals) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Issuance for Deferred Officers' Salaries [Member] | ' | ' |
Common stock issued, shares | 20,313,416 | ' |
Issuance for Accrued Expenses [Member] | ' | ' |
Common stock issued, shares | 1,750,000 | 150,000 |
Issuance for Debt Repayment [Member] | ' | ' |
Common stock issued, shares | 21,567,656 | ' |
Issuance for Debt Interest [Member] | ' | ' |
Common stock issued, shares | 983,859 | ' |
Repayment of Related Party Payables [Member] | ' | ' |
Common stock issued, shares | ' | 675,000 |
Repayment of Debt [Member] | ' | ' |
Common stock issued, shares | ' | 1,466,965 |
Payment of Debt Interest [Member] | ' | ' |
Common stock issued, shares | ' | 133,608 |
Note_1_Organizational_and_Sign
Note 1 - Organizational and Significant Accounting Policies | 3 Months Ended | |||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||||||
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | ' | |||||||||||||||||
NOTE 1 – ORGANIZATIONAL AND SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||||
A. ORGANIZATION AND OPERATIONS | ||||||||||||||||||
Cyclone Power Technologies, Inc. (the “Company”) is the successor entity to the business of Cyclone Technologies LLLP (the “LLLP”), a limited liability limited partnership formed in Florida in June 2004. The LLLP was the original developer and intellectual property holder of the Cyclone engine technology. The Company is primarily a research and development engineering company whose main purpose is to develop, commercialize, market and license its Cyclone engine technology. | ||||||||||||||||||
In 2010, the Company established a subsidiary, Cyclone-WHE LLC (the “WHE Subsidiary”), to market the waste heat recovery systems for all Cyclone engine models. As of March 31, 2014 the Company had a 73.72% controlling interest in the WHE Subsidiary, which in May 2014, re-domiciled to Delaware as a corporation named WHE Generation Corp. In 2012, the Company established Cyclone Performance LLC (“Cyclone Performance”) f/k/a Cyclone-TeamSteam USA, LLC. Its purpose is to build, test and run a vehicle utilizing the Company’s engine. As of March 31, 2014, the company had a 95% controlling interest in Cyclone Performance. | ||||||||||||||||||
B. PRINCIPLES OF CONSOLIDATION AND BASIS OF PRESENTATION | ||||||||||||||||||
The unaudited consolidated financial statements include the accounts of the Company, its 73.72% owned WHE Subsidiary and its 95% owned subsidiary Cyclone Performance. All material inter-company transactions and balances have been eliminated in the condensed consolidated financial statements. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles applicable to interim financial information and the requirements of Form 10-Q and Article 10 of Regulation S-X of the SEC. Accordingly, they do not include all of the information and disclosures required by accounting principles generally accepted in the United States for complete consolidated financial statements. Interim results are not necessarily indicative of results for a full year. In the opinion of management, all adjustments considered necessary for a fair presentation of the financial position and the results of operations and cash flows for the interim periods have been included. | ||||||||||||||||||
The accounting principles utilized by the Company require the Company to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, the reported amounts of revenues and expenses, cash flows and the related footnote disclosures during the periods. On an on-going basis, the Company reviews and evaluates its estimates and assumptions, including, but not limited to, those that relate to the realizable value of inventory, identifiable intangible assets and other long-lived assets, contracts, income taxes, derivative liabilities, and contingencies. Actual results could differ from these estimates. | ||||||||||||||||||
C. CASH | ||||||||||||||||||
Cash includes cash on hand and cash in banks. The Company maintains cash balances at several financial institutions. | ||||||||||||||||||
D. COMPUTATION OF LOSS PER SHARE | ||||||||||||||||||
Net loss per share is computed by dividing the net loss by the weighted average number of common shares outstanding during the period. Diluted net loss per share is not presented as the conversion of the preferred stock and exercise of outstanding stock options and warrants would have an anti-dilutive effect. As of March 31, 2014 and 2013, total anti-dilutive shares not inclusive of the potential conversion of several convertible promissory notes amounted to approximately 19.6 million and 18.6 million shares, respectively. | ||||||||||||||||||
E. INCOME TAXES | ||||||||||||||||||
Income taxes are accounted for under the asset and liability method as stipulated by Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 740, “Income Taxes” (“ASC 740”). Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under ASC 740, the effect on deferred tax assets and liabilities or a change in tax rate is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced to estimated amounts to be realized by the use of a valuation allowance. A valuation allowance is applied when in management’s view it is more likely than not (50%) that such deferred tax will not be utilized. | ||||||||||||||||||
In the unlikely event that an uncertain tax position exists in which the Company could incur income taxes, the Company would evaluate whether there is a probability that the uncertain tax position taken would be sustained upon examination by the taxing authorities. Reserves for uncertain tax positions would be recorded if the Company determined it is probable that a position would not be sustained upon examination or if payment would have to be made to a taxing authority and the amount is reasonably estimated. As of March 31, 2014, the Company does not believe it has any uncertain tax positions that would result in the Company having a liability to the taxing authorities. Interest related to the unrecognized tax benefits is recognized in the consolidated financial statements as a component of income taxes. The Company’s tax returns are subject to examination by the federal and state tax authorities for the years ended 2010 through 2013. | ||||||||||||||||||
F. REVENUE RECOGNITION | ||||||||||||||||||
The Company’s revenue recognition policies are in compliance with ASC 605, “Revenue Recognition – Multiple Element Arrangements”, and Staff Accounting Bulletin (“SAB”) 104, Revenue Recognition. Revenue is recognized at the date of shipment of engines and systems, engine prototypes, engine designs or other deliverables to customers when a formal arrangement exists, the price is fixed or determinable, the delivery is completed, no other significant obligations of the Company exist and collectability is reasonably assured. Revenue from contracts for multiple deliverables and milestone method recognition are evaluated and allocated as appropriate. The Company has determined that the milestone method of revenue recognition (ASC 605-28) is appropriate for two of the Company’s contracts which specifically enumerate approved work effort milestones required for remuneration – the Company’s contract with the U.S. Army / TARDEC and the Amended and Restated Technology Application License Agreement with Phoenix Power Group LLC. All revenue and costs of goods sold are included in the accompanying condensed consolidated statements of operations. Payments received before all of the relevant criteria for revenue recognition are satisfied are recorded as deferred revenue on the consolidated balance sheets. The Company does not allow its customers to return prototype products. Current contracts do not require the Company to provide any warranty assistance after the “deliverable” has been accepted. | ||||||||||||||||||
It is the Company’s intention when it has royalty revenue from its contracts to record royalty revenue periodically when earned, as reported in sales statements from customers. The Company does not have any royalty revenue to date. | ||||||||||||||||||
G. WARRANTY PROVISIONS | ||||||||||||||||||
Current contracts do not require warranty assistance subsequent to acceptance of the “deliverable R&D prototype” by the customer. For products that the Company will sell in the future, warranty costs are anticipated to be borne by the manufacturing vendor. | ||||||||||||||||||
H. INVENTORY | ||||||||||||||||||
Inventory is recorded at the lower of cost or market. Costs include material, labor and allocated overhead to manufacture a completed engine. These costs are periodically evaluated to determine if they have a net realizable value. If the net realizable value is lower than the carrying amount, a reserve is provided. | ||||||||||||||||||
I. FAIR VALUE OF FINANCIAL INSTRUMENTS | ||||||||||||||||||
ASC 820, “Fair Value Measurements and Disclosures” requires disclosures of information about the fair value of certain financial instruments for which it is practicable to estimate the value. The carrying amounts reported in the balance sheet for cash, accounts payable and accrued expenses, and loans payable approximate their fair market value based on the short-term maturity of these instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. Inputs may be observable or unobservable. Observable inputs are based on market data obtained from sources independent of the Company. Unobservable inputs reflect the Company’s own assumptions based on the best information available in the circumstances. The fair value hierarchy prioritizes the inputs used to measure fair value into three broad levels. The three levels of the fair value hierarchy are defined as follows: | ||||||||||||||||||
Level 1 | — | Inputs are quoted prices in active markets for identical assets or liabilities as of the reporting date. | ||||||||||||||||
Level 2 | — | Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, as of the reporting date. | ||||||||||||||||
Level 3 | — | Unobservable inputs for the asset or liability that reflect management’s own assumptions about the assumptions that market participants would use in pricing the asset or liability as of the reporting date. | ||||||||||||||||
The summary of fair values and changing values of financial instruments for the three months ended March 31, 2014 is as follows: | ||||||||||||||||||
Instrument | Beginning | Change | End of | Level | Valuation | |||||||||||||
of Period | Period | Methodology | ||||||||||||||||
Derivative liabilities | $ | 484,796 | $ | 134,472 | $ | 619,268 | 3 | Binomial | ||||||||||
Lattice Model | ||||||||||||||||||
Please refer to Note 16 for disclosure and assumptions used to calculate the fair value of the derivative liabilities. | ||||||||||||||||||
J. RESEARCH AND DEVELOPMENT | ||||||||||||||||||
Research and development activities for product development are expensed as incurred. Costs for the three months ended March 31, 2014 and 2013 were $124,180 and $250,550, respectively. | ||||||||||||||||||
K. STOCK BASED COMPENSATION | ||||||||||||||||||
The Company applies the fair value method of ASC 718, “Share Based Payment”, in accounting for its stock based compensation. This standard states that compensation cost is measured at the grant date based on the value of the award and is recognized over the service period, which is usually the vesting period. The Company values stock based compensation at the market price for the Company’s common stock as of the date in which the obligation for payment of services is incurred. | ||||||||||||||||||
L. COMMON STOCK OPTIONS AND PURCHASE WARRANTS | ||||||||||||||||||
The Company accounts for common stock options and purchase warrants at fair value in accordance with ASC 815-40, “Derivatives and Hedging”. The Black-Scholes option pricing valuation method is used to determine fair value of these warrants consistent with ASC 718, “Share Based Payment”. Use of this method requires that the Company make assumptions regarding stock volatility, dividend yields, expected term of the warrants and risk-free interest rates. | ||||||||||||||||||
The Company accounts for transactions in which services are received from non-employees in exchange for equity instruments based on the fair value of the equity instruments exchanged, in accordance with ASC 505-50, “Equity Based payments to Non-employees”. | ||||||||||||||||||
M. ORIGINAL ISSUE DEBT DISCOUNT | ||||||||||||||||||
The original issue discount (OID) related to notes payable is amortized by the effective interest method over the repayment period of the notes. The unamortized OID is represented as a reduction of the amount of the notes payable. | ||||||||||||||||||
N. PROPERTY AND EQUIPMENT | ||||||||||||||||||
Property and equipment are recorded at cost. Depreciation is computed on the straight-line method, based on the estimated useful lives of the assets as follows: | ||||||||||||||||||
Years | ||||||||||||||||||
Display equipment for trade shows | 3 | |||||||||||||||||
Leasehold improvements and furniture and fixtures | 10 | - | 15 | |||||||||||||||
Shop equipment | 7 | |||||||||||||||||
Computers | 3 | |||||||||||||||||
Expenditures for maintenance and repairs are charged to operations as incurred. | ||||||||||||||||||
O. IMPAIRMENT OF LONG LIVED ASSETS | ||||||||||||||||||
The Company continually evaluates the carrying value of intangible assets and other long lived assets to determine whether there are any impairment losses. If indicators of impairment are present and future cash flows are not expected to be sufficient to recover the assets’ carrying amount, an impairment loss would be charged to expense in the period identified. To date, the Company has not recognized any impairment charges. | ||||||||||||||||||
P. RECENT ACCOUNTING PRONOUNCEMENTS | ||||||||||||||||||
In 2014, the FASB issued an Accounting Standard Update (“ASU”) 2014-05 “Service Concession Arrangements (Topic 853), ASU 2014-04 Receivables-Troubled Debt Restructurings by Creditors (Subtopic 310-40), ASU 2014-03 Derivatives and Hedging (Topic 815) Accounting for Certain Receive-Variable, Pay Fixed Interest Rate Swaps-Simplified Hedge Account Approach, and ASU 2014-02 Intangibles-Goodwill and Other (Topic 350). Management believes that these standards will not materially impact our financial statements. | ||||||||||||||||||
Q. CONCENTRATION OF RISK | ||||||||||||||||||
The Company does not have any off-balance sheet concentrations of credit risk. The Company expects cash and accounts receivable to be the two assets most likely to subject the Company to concentrations of credit risk. The Company’s policy is to maintain its cash with high credit quality financial institutions to limit its risk of loss exposure. | ||||||||||||||||||
As of March 31, 2014, the Company maintained its cash in two quality financial institutions. The Company has not experienced any losses in its bank accounts through March 31, 2014. The Company purchases raw material and components from multiple sources, none of which may be considered a principal or material supplier. If necessary, the Company could replace these suppliers with minimal effect on its business operations. | ||||||||||||||||||
R. DERIVATIVE FINANCIAL INSTRUMENTS | ||||||||||||||||||
Accounting and reporting standards for derivative instruments and for hedging activities were codified by ASC Topic 815, Derivatives and Hedging (“ASC Topic 815”). It requires that all derivatives be recognized in the balance sheet and measured at fair value. Gains or losses resulting from changes in the fair value of derivatives are recognized in earnings or recorded in other comprehensive income (loss) depending on the purpose of the derivatives and whether they qualify and have been designated for hedge accounting treatment. The Company has derivative liabilities pursuant to convertible debt and common stock warrants, and has recognized net expenses on the condensed consolidated statements of operations. The Company does not have any derivative instruments for which it has applied hedge accounting treatment. |
Note_2_Going_Concern
Note 2 - Going Concern | 3 Months Ended |
Mar. 31, 2014 | |
Going Concern [Abstract] | ' |
Going Concern [Text Block] | ' |
NOTE 2 - GOING CONCERN | |
As shown in the accompanying condensed consolidated financial statements, the Company incurred substantial operating and other losses of approximately $1.1 million for the three months ended March 31, 2014, and $3.8 million for the year ended December 31, 2013. The cumulative deficit since inception is approximately $53.5 million, which is comprised of $22.1 million attributable to actual operating losses (which were paid in cash, stock for services and other equity instruments) and other expenses, and $31.4 million in non-cash derivative liability accounting which was a result of the conversion of the Company’s Series A Convertible Preferred Stock in 2011, the retirement of a common stock purchase warrant in 2012, and the change in fair value of derivatives associated with notes payable for the year ended December 31, 2013 and the three months ended March 31, 2014. The Company has a working capital deficit at March 31, 2014 of approximately $2.9 million. There is no guarantee whether the Company will be able to generate enough revenue and/or raise capital to support its operations. This raises substantial doubt about the Company’s ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on management’s plans which include implementation of its business model to generate revenue from development contracts, licenses and product sales, and continuing to raise funds through debt or equity raises. The Company will also likely continue to rely upon related-party debt or equity financing. | |
The condensed consolidated financial statements do not include any adjustments that might result from the outcome of these uncertainties. The Company is currently raising working capital to fund its operations via private placements of common stock and debt, advance contract payments (deferred revenue), and advances from and deferred payments to related parties. |
Note_3_Inventory_Net
Note 3 - Inventory, Net | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventory Disclosure [Text Block] | ' | ||||||||
NOTE 3 – INVENTORY, NET | |||||||||
Inventory, net consists of: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Engine material and parts | $ | 332,314 | $ | 316,513 | |||||
Labor | 307,280 | 237,311 | |||||||
Applied overhead | 49,590 | 35,596 | |||||||
Total | 689,184 | 589,420 | |||||||
Inventory valuation reserve | (100,000 | ) | (100,000 | ) | |||||
Inventory, net | $ | 589,184 | $ | 489,420 | |||||
Note_4_Property_and_Equipment
Note 4 - Property and Equipment | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property, Plant and Equipment Disclosure [Text Block] | ' | ||||||||
NOTE 4 – PROPERTY AND EQUIPMENT | |||||||||
Property and equipment consists of the following: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Display equipment for trade shows | $ | 9,648 | $ | 9,648 | |||||
Leasehold improvements and furniture and fixtures | 94,572 | 94,572 | |||||||
Equipment and computers | 398,342 | 398,342 | |||||||
Total | 502,562 | 502,562 | |||||||
Accumulated depreciation | (133,621 | ) | (125,799 | ) | |||||
Net property and equipment | $ | 368,941 | $ | 376,763 | |||||
Depreciation expense for the three months ended March 31, 2014 and 2013 was $7,822 and $6,773, respectively. |
Note_5_Patents_Trademarks_and_
Note 5 - Patents, Trademarks and Copyrights | 3 Months Ended |
Mar. 31, 2014 | |
Disclosure Text Block [Abstract] | ' |
Intangible Assets Disclosure [Text Block] | ' |
NOTE 5 – PATENTS, TRADEMARKS AND COPYRIGHTS | |
Patents, trademarks and copyrights consist of legal fees paid to file and perfect these claims. The net balances as of March 31, 2014 and December 31, 2013 were $365,306 and $374,768, respectively. For the three months ended March 31, 2014 and for the year ended December 31, 2013, the Company capitalized $0 and $ 6,920, respectively, of expenditures related to these assets. As of March 31, 2014, the Company had 33 patents issued on its technology both in the U.S. and internationally, and three trademarks in the U.S. | |
Patents, trademarks and copyrights are amortized over the life of the intellectual property which is 15 years. Amortization expense for the three months ended March 31, 2014 and 2013 was $9,462 and $9,970, respectively. |
Note_6_Notes_and_Other_Loans_P
Note 6 - Notes and Other Loans Payable | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Debt Disclosure [Text Block] | ' | ||||||||
NOTE 6 – NOTES AND OTHER LOANS PAYABLE | |||||||||
A. NON-RELATED PARTIES | |||||||||
A summary of non-related party notes and other loans payable is as follows: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
12% senior secured note payable, plus 6% redemption premium, collateralized by all assets of the Company, monthly payments commencing December 2013 through September 2014 | $ | 237,033 | $ | 361,767 | |||||
6-12% uncollateralized demand notes payable | 40,000 | 127,500 | |||||||
12% convertible notes payable, net of discount of $17,480 and $48,851 at March 31, 2014 and December 31, 2013, respectively, maturing at various dates from November 2013 through July 2014 (A) | 99,864 | 139,769 | |||||||
10% convertible note payable, net of discount of $27,322 and $115,585 at March 31, 2014 and December 31, 2014, respectively, monthly payments commencing in December 2014 through July 2014 (B) | 77,763 | 74,344 | |||||||
10% convertible notes payable, net of discount of $59,010 and $58,279 at March 31, 2014 and December 31, 2013, respectively, maturing at various dates from August 2014 through January 2015 (C) | 36,988 | 15,634 | |||||||
10% convertible notes payable, net of discount of $57,386 and $55,109 at March 31, 2014 and December 31, 2013, respectively, maturing at various dates from December 2014 through January 2015 (D) | 52,614 | 10,891 | |||||||
6% convertible notes payable, net of discount of $155,131 and $89,003 at March 31, 2014 and December 31, 2013, respectively, maturing at various dates from December 2016 through February 2017 ( E ) | 64,869 | 30,997 | |||||||
10% convertible note payable, net of discount of $54,646 at March 31, 2014, maturing in February 2015 ( F ) | 20,354 | - | |||||||
12% convertible notes payable, net of discount of $54,334 at March 31, 2014, maturing at various dates from July 2014 through March 2015 ( G ) | 20,666 | - | |||||||
Total current non related party notes –net of discount | 650,151 | 760,902 | |||||||
Less-Current Portion | 585,282 | 729,905 | |||||||
Total non-current non related party notes –net of discount (accrued interest is included in accrued expenses) | $ | 64,869 | $ | 30,997 | |||||
(A) | Notes issued net of 10% original discount of $31,110 ($6,104 unamortized at March 31, 2014) along with additional discount from derivative liabilities of $130,684 ($11,376 unamortized at March 31, 2014). At March 31, 2014, the Company held 7,962,267 shares in reserve to cover the potential conversion of this note into common stock pursuant to debt covenants. | ||||||||
(B) | Note issued net of original discount of $26,250 ($5,981 unamortized at March 31, 2014) along with stock purchase warrants whose value at issuance of $34,680 has been carried as a discount against the note ($10,276 unamortized at March 31, 2014) and an additional discount from derivative liabilities of $89,370 ($11,065 unamortized at March 31, 2014). At March 31, 2014, the Company held 821,831 shares in reserve to cover the potential conversion of this note into common stock pursuant to debt covenants. | ||||||||
(C) | Notes issued net of discount from derivative liabilities ($59,010 unamortized at March 31, 2014). At March 31, 2014 the Company held 18,582,894 shares in reserve to cover the potential conversion of this note into common stock pursuant to debt covenants. | ||||||||
(D) | Notes issued net of discount from derivative liabilities ($57,386 unamortized at March 31, 2014). At March 31, 2014, the Company held 19,700,581 shares in reserve to cover the potential conversion of this note into common stock pursuant to debt covenants. | ||||||||
(E) | Notes issued net of 10% original discount ($20,095 unamortized at March 31, 2014) along with additional discount from derivative liabilities ($135,036 unamortized at March 31, 2014). At March 31, 2014, the Company held 36,000,000 shares in reserve to cover the potential conversion of this note into common stock pursuant to debt covenants. | ||||||||
(F) | Notes issued net of discount from derivative liabilities of $80,104 ($54,646 unamortized at March 31, 2014). At March 31, 2014, the Company held 18,232,759 shares in reserve to cover the potential conversion of this note into common stock pursuant to debt covenants. | ||||||||
(G) | Notes issued net of discount from derivative liabilities of $86,258 ($54,334 unamortized at March 31, 2014). At March 31, 2014, the Company held 2,661,539 shares in reserve to cover the potential conversion of this note into common stock pursuant to debt covenants. | ||||||||
B. RELATED PARTIES | |||||||||
A summary of related party notes and other loans payable is as follows: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
6% demand loans per Operations Agreement with Schoell Marine Inc., a company owned by Cyclone’s Chairman and controlling shareholder (A) | $ | 424,285 | $ | 424,285 | |||||
6% non-collateralized loans from officer and shareholder, payable on demand. The original principal balances were $157,101. | 81,251 | 85,364 | |||||||
12% non-collateralized loans from officer and shareholder, payable on demand | 11,000 | 11,000 | |||||||
Accrued interest | 266,210 | 254,471 | |||||||
Total current related party notes, inclusive of accrued interest | $ | 782,746 | $ | 775,120 | |||||
(A) | This note arose from services and salaries incurred by Schoell Marine on behalf of the Company. Schoell Marine also owns the building that is leased to the Company. The Schoell Marine note bears an interest rate of 6% and repayments occur as cash flow of the Company permits. The note was secured by a UCC-1 filing on the Company’s patents and patent applications, which expired and has not been renewed. For the three months ended March 31, 2014 and for the year ended December 31, 2013, $0 and $500 of principal was paid on the note balance. | ||||||||
During the last quarter of 2013, the Company’s Chairman and co-founder loaned approximately 37.4 million shares of Company common stock, valued at approximately $1.5 million, as reserve treasury shares pursuant to various debt covenants. These shares have been presented as value of shares loaned by stockholder in the accompanying consolidated balance sheets. These shares were returned to the Chairman in March 2014. |
Note_7_Related_Party_Transacti
Note 7 - Related Party Transactions | 3 Months Ended |
Mar. 31, 2014 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions Disclosure [Text Block] | ' |
NOTE 7 – RELATED PARTY TRANSACTIONS | |
A. LEASE ON FACILITIES | |
The Company leases a 6,000 square foot warehouse and office facility located at 601 NE 26th Court in Pompano Beach, Florida. The lease, which is part of the Company’s Operations Agreement with Schoell Marine, provides for the Company to pay rent equal to the monthly mortgage payment on the building plus property taxes, utilities and sales tax due on rent. Occupancy costs for the three months ended March 31, 2014 and 2013 were $15,741 in both periods. The Operations Agreement runs year-to-year, however, the lease portion of this agreement is month-to-month, but can only be cancelled on 180 day notice by Schoell Marine. | |
B. DEFERRED COMPENSATION | |
Included in accounts payable and accrued expenses - related parties as of March 31, 2014 and December 31, 2013 are $377,045 and $1,910,073, respectively, of accrued and deferred officers’ salaries compensation which may be paid as funds are available. These are non-interest bearing and due on demand. In January 2014, four of the Company’s executive management converted $668,312 in deferred salary into 20,313,416 shares of restricted common stock and forgave $956,762 in deferred salary as contributed capital. This forgiveness of deferred salary was recorded to additional paid in capital in the accompanying condensed consolidated balance sheet at March 31, 2014. |
Note_8_Preferred_Stock
Note 8 - Preferred Stock | 3 Months Ended |
Mar. 31, 2014 | |
Disclosure Text Block Supplement [Abstract] | ' |
Preferred Stock [Text Block] | ' |
NOTE 8 – PREFERRED STOCK | |
The Series B Preferred Stock is majority voting stock and is held by the two co-founders of the Company. Ownership of the Series B Preferred Stock shares assures the holders thereof a 51% voting control over the common stock of the Company. The 1,000 Series B Preferred Stock shares are convertible on a one-for-one basis with the common stock in the instance the Company is merged, sold or otherwise dissolved. |
Note_9_Stock_Transactions
Note 9 - Stock Transactions | 3 Months Ended | ||
Mar. 31, 2014 | |||
Stockholders' Equity Note [Abstract] | ' | ||
Stockholders' Equity Note Disclosure [Text Block] | ' | ||
NOTE 9 – STOCK TRANSACTIONS | |||
During the three months ended March 31, 2014, the Company: | |||
● | Issued 1,750,000 shares of restricted common stock valued at $75,000 for payment of liabilities, 1,450,000 shares of restricted common stock valued at $43,500 for services, and 4,722,365 shares of common stock pursuant to a cashless warrants conversion. | ||
● | Amortized (based on vesting) $9,244 of common stock options for employee services and issued 357,142 shares of restricted common stock valued at $10,714 in advance payment of debt interest. | ||
● | Sold 5,500,000 shares of restricted common stock for $110,000 and issued 2,719,298 shares of restricted common stock pursuant to a price guarantee for common stock sold in the prior year. | ||
● | Issued 983,859 shares of common stock valued at $12,616 as payment of interest on debt, and 21,567,656 shares of common stock in repayment of $285,228 of debt. | ||
● | Issued 20,313,416 shares of restricted common stock to four of the Company’s executive management as a conversion of $668,312 in deferred salary, and forgave $956,762 of deferred salary as contributed capital. | ||
Note_10_Stock_Options_and_Warr
Note 10 - Stock Options and Warrants | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Stock Options And Warrants [Abstract] | ' | ||||||||||||
Stock Options And Warrants [Text Block] | ' | ||||||||||||
NOTE 10 – STOCK OPTIONS AND WARRANTS | |||||||||||||
A. COMMON STOCK OPTIONS | |||||||||||||
In recognition of and compensation for services rendered by officers and employees for the year ended December 31, 2013, the Company issued 600,000 common stock options, valued at $37,000 (pursuant to the Black Scholes valuation model) that are exercisable into shares of common stock at exercise prices of $0.08 and with a maturity life of 10 years. For the three months ended March 31, 2014, the amortization of stock options was $9,244 and the unamortized balance was $0. | |||||||||||||
To improve the common stock position of the Company and help limit dilution, effective with the second quarter of 2013, the four corporate officers unanimously agreed to waive their rights to 2.4 million common stock options (600,000 per quarter collectively) contractually due them through March 2014. In lieu of issuing additional options to these officers and all other employees through the end of the year, the Company re-priced 4,185,000 million vested options held by the officers and employees that were priced at a minimum of $0.15 per share ($0.20 average) to $0.10 per share. The result was a non-cash charge of approximately $52,000. The remaining contractual life of the options was not changed. | |||||||||||||
A summary of the common stock options for the period from December 31, 2013 through March 31, 2014 follows: | |||||||||||||
Number | Weighted | Weighted | |||||||||||
Outstanding | Avg. | Avg. | |||||||||||
Exercise Price | Remaining | ||||||||||||
Contractual | |||||||||||||
Life | |||||||||||||
(Years) | |||||||||||||
Balance, December 31, 2013 | 9,740,000 | $ | 0.129 | 6.5 | |||||||||
Options issued | - | - | - | ||||||||||
Options exercised | - | - | - | ||||||||||
Options cancelled | - | - | - | ||||||||||
Balance, March 31, 2014 | 9,740,000 | $ | 0.139 | 6.2 | |||||||||
All options were vested and exercisable as of March 31, 2014. | |||||||||||||
The fair value of new stock options, re-priced stock options, new purchase warrants and re-priced purchase warrants granted using the Black-Scholes option pricing model was calculated using the following assumptions: | |||||||||||||
Three Months Ended | Year Ended | ||||||||||||
31-Mar-14 | 31-Dec-13 | ||||||||||||
Risk free interest rate | 0.67% | - | 1.32% | 0.51% | - | 1.41% | |||||||
Expected volatility | 43% | - | 63% | 34% | - | 107% | |||||||
Expected term in years | 2 | - | 4 | 1 | - | 5 | |||||||
Expected dividend yield | 0% | 0% | |||||||||||
Average value per options and warrants | $0.01 | - | $0.02 | $ .01 | - | $0.06 | |||||||
Expected volatility is based on historical volatility of the Company’s common stock price. Short Term U.S. Treasury rates were utilized at the risk free interest rate. The expected term of the options and warrants was calculated using the alternative simplified method newly codified as ASC 718 “Accounting for Stock Based Compensation,” which defined the expected life as the average of the contractual term of the options and warrants and the weighted average vesting period for all issuances. | |||||||||||||
B. COMMON STOCK WARRANTS | |||||||||||||
During the three months ended March 31, 2014, the Company: | |||||||||||||
● | Re-priced 625,000 common stock warrants to $.0114 (valued at $10,821) pursuant to a price guarantee from the 2013 sale of common stock to unaffiliated third parties. | ||||||||||||
● | Issued 2,838,051 common stock warrants and re-priced 565,625 common stock warrants, both to $.0114 (valued at $43,280) pursuant to a price guarantee from a 2013 debt agreement. No other terms of these common stock warrants were revised. | ||||||||||||
● | Issued 4,722,365 aggregate shares of common stock in a cashless exercise of 9,037,230 warrants. | ||||||||||||
A summary of outstanding vested warrant activity for the period from December 31, 2012 to March 31, 2014 follows: | |||||||||||||
Number | Weighted Average | Weighted | |||||||||||
Outstanding | Exercise Price | Average | |||||||||||
Remaining | |||||||||||||
Contractual | |||||||||||||
Life (Years) | |||||||||||||
Common Stock Warrants | |||||||||||||
Balance, December 31, 2013 | 16,097,798 | 0.057 | 2.85 | ||||||||||
Warrants exercised-cashless | (9,037,230 | ) | (0.017 | ) | |||||||||
Warrants issued | 2,838,048 | 0.114 | 4.16 | ||||||||||
Warrants re-priced: | |||||||||||||
Cancelled – old | (1,190,625 | ) | (0.020 | ) | |||||||||
Re-Priced | 1,190,625 | 0.114 | |||||||||||
Balance, March 31, 2014 | 9,898,616 | $ | 0.113 | 2.16 | |||||||||
All warrants were vested and exercisable as of the date issued. |
Note_11_Income_Taxes
Note 11 - Income Taxes | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||
Income Tax Disclosure [Text Block] | ' | ||||||||||||||||
NOTE 11 – INCOME TAXES | |||||||||||||||||
A reconciliation of the differences between the effective income tax rates and the statutory federal tax rates for the three months ended March 31, 2014 and 2013 are as follows: | |||||||||||||||||
Three months | Amount | Three months | Amount | ||||||||||||||
ended | ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Tax benefit at U.S. statutory rate | 34% | $ | 229,566 | 34% | $ | 204,047 | |||||||||||
State taxes, net of federal benefit | 4 | 27,008 | 4 | 24,005 | |||||||||||||
Change in valuation allowance | -38 | (256,574 | ) | -38 | (228,052 | ) | |||||||||||
-% | $ | - | -% | $ | - | ||||||||||||
The tax effect of temporary differences that give rise to significant portions of the deferred tax assets and liabilities for years ended March 31, 2014 and December 31, 2013 consisted of the following: | |||||||||||||||||
Deferred Tax Assets | March 31, | December 31, | |||||||||||||||
2014 | 2013 | ||||||||||||||||
Net Operating Loss Carry-forward | $ | 8,229,658 | $ | 7,946,959 | |||||||||||||
Deferred Tax Liabilities – Accrued Officers’ Salaries | (234,413 | ) | (440,135 | ) | |||||||||||||
Net Deferred Tax Assets | 7,995,245 | 7,506,824 | |||||||||||||||
Valuation Allowance | (7,995,245 | ) | (7,506,824 | ) | |||||||||||||
Total Net Deferred Tax Assets | $ | - | $ | - | |||||||||||||
As of March 31, 2014, the Company had a net operating loss carry forward for income tax reporting purposes of approximately $17.9 million that may be offset against future taxable income through 2029. Current tax laws limit the amount of loss available to be offset against future taxable income when a substantial change in ownership occurs. Therefore, the amount available to offset future taxable income may be limited. No tax asset has been reported in the financial statements because the Company believes there is a 50% or greater chance the carry forwards will expire unused. Accordingly, the potential tax benefits of the loss carry forwards are offset by a valuation allowance of the same amount. |
Note_12_Lease_Obligations
Note 12 - Lease Obligations | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Leases, Capital [Abstract] | ' | ||||
Capital Leases in Financial Statements of Lessee Disclosure [Text Block] | ' | ||||
NOTE 12 –LEASE OBLIGATIONS | |||||
A. CAPITALIZED LEASE OBLIGATIONS | |||||
In 2009 the Company acquired $27,401 of property and equipment via capitalized lease obligations at an average interest rate of 18.4%. In September 2012, the Company acquired $21,310 of equipment via capitalized lease obligations at an interest rate of 12.5%. In December 2013, the Company acquired $8,408 of equipment via capitalized lease obligations at an interest rate of 15.5%. Total lease payments made for the three months ended March 31, 2014 were $1,569. The balance of capitalized lease obligations payable at March 31, 2014 was $25,142. Future lease payments are: | |||||
2014 | $ | 4,592 | |||
2015 | 5,801 | ||||
2016 | 6,620 | ||||
2017 | 6,079 | ||||
2018 | 2,050 | ||||
$ | 25,142 | ||||
B. LEASE ON ADDITIONAL FACILITIES | |||||
In July 2011, the Company signed a one-year lease (with extensions) for an additional 2,000 square feet. Effective July 2013, the Company renewed this lease for one year, at an annual rate of $ 17,304 or $8.65/s.f, terminating in June 2014. The lease expense for the three months ended March 31, 2014 and 2013 was $4,326 and $4,452, respectively. |
Note_13_Commitments_and_Contin
Note 13 - Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies Disclosure [Text Block] | ' |
NOTE 13 – COMMITMENTS AND CONTINGENCIES | |
The Company has employment agreements with Harry Schoell, Chairman and CTO (previously, CEO), at $150,000 per year; Frankie Fruge, COO, at $120,000 per year; and Christopher Nelson, President and General Counsel, at $130,000 per year (collectively, the “Executives”). These agreements provide for a term of three (3) years from their Effective Date (July 2007 in the case of Schoell and Fruge, and August 2011 in the case of Nelson), with automatically renewing successive one year periods starting on the end of the second anniversary of the Effective Date. If the Executive is terminated “without cause” or pursuant to a “change in control” of the Company, as both defined in the respective agreements, the Executive shall be entitled to (i) any unpaid Base Salary accrued through the effective date of termination, (ii) the Executive’s Base Salary at the rate prevailing at such termination through 12 months from the date of termination or the end of his Term then in effect, whichever is longer, and (iii) any performance bonus that would otherwise be payable to the Executive were he/she not terminated, during the 12 months following his or her termination. |
Note_14_Consolidated_Subsidiar
Note 14 - Consolidated Subsidiaries | 3 Months Ended |
Mar. 31, 2014 | |
Equity Method Investments and Joint Ventures [Abstract] | ' |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | ' |
NOTE 14 – CONSOLIDATED SUBSIDIARIES | |
In 2012, the Company established a 100% owned subsidiary (renamed) Cyclone Performance LLC. The purpose of Cyclone Performance is to build, test and run a vehicle utilizing the Company’s engine. In 2012, the Company sold a 5% equity investment to an unrelated investor for $30,000. Prior to December 31, 2012, this 5% equity investment was acquired by a corporate officer of the Company. Losses of the subsidiary are currently fully borne by the Company, as there is no guarantee of future profits or positive cash flow of the subsidiary. As of March 31, 2014, the cumulative unallocated losses to the non-controlling interests of this subsidiary of $953 are to be recovered by the parent from future subsidiary profits if they materialize. | |
In July 2013, the Company’s Chairman purchased a 5% equity stake in the WHE Subsidiary in exchange for 5 million shares of his common stock in the Company. In connection with this purchase, the executive also agreed to release the security interest held by his company, Schoell Marine, on certain of the Company’s engine patents, which was collateral on approximately $425,000 in debt owed by the Company to Schoell Marine. The executive also agreed to provide 12 months of consulting services without additional compensation to the WHE Subsidiary. | |
In July 2013, as part of a Joint Manufacturing Operations Agreement, Precision CNC LLC (of Ohio) received a 5% interest in the WHE Subsidiary to provide expertise and management for its production operations (vesting over the following two years). Precision CNC was also given the right, during this period, to purchase up to an additional 5% in Cyclone-WHE at the then current valuation of that company. In May 2014, the WHE Subsidiary was re-domiciled to Delaware, and converted to a corporation named WHE Generation Corp. | |
The total losses of the WHE Subsidiary for the three months ended March 31, 2014 and for the year ended December 31, 2013 were $120,391 and $157,266, respectively. Losses of the subsidiary are currently fully borne by the Company in the consolidated statements of operations. There is no guarantee of future profits or positive cash flow of the subsidiary that will be realized. As of March 31, 2014, the cumulative unallocated losses to the non-controlling interests of this subsidiary of $70,914 are to be recovered by the parent from future subsidiary profits if they materialize. |
Note_15_Receivables_Deferred_R
Note 15 - Receivables, Deferred Revenue and Backlog | 3 Months Ended |
Mar. 31, 2014 | |
Deferred Revenue Disclosure [Abstract] | ' |
Deferred Revenue Disclosure [Text Block] | ' |
NOTE 15 – RECEIVABLES, DEFERRED REVENUE AND BACKLOG | |
As of March 31, 2014, total backlog for prototype engines to be delivered in the following twelve months was approximately $440,000 from the Company’s Combilift license and U.S. Army contract. The Company expects the balance from these projects to be paid over the following six to nine months of the respective contracts’ development periods, as engines are delivered to the customers. |
Note_16_Derivative_Financial_I
Note 16 - Derivative Financial Instruments | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Disclosure Text Block [Abstract] | ' | ||||||||
Derivatives and Fair Value [Text Block] | ' | ||||||||
NOTE 16 – DERIVATIVE FINANCIAL INSTRUMENTS | |||||||||
Pursuant to additional financing, in the three months ended March 31, 2014 and in the year ended December 31, 2013 the Company entered into convertible note agreements in the aggregate face amount of $ 460,800 and $743,250, respectively. The conversion prices into common stock ranged from a discount of 30% to 44% of the lowest closing prices in the 10 to 20 trading days prior to the conversion. Under provisions of ASC Topic 815-40, this conversion feature triggered derivative accounting treatment because the convertible note was convertible into an indeterminable number of shares of common stock. The fair value of the embedded conversion option was required to be presented as a derivative liability and adjusted to fair value at each reporting date, with changes in fair value reported in the condensed consolidated statements of operation. | |||||||||
The Company recorded derivative liabilities of $371,025 and $456,681 with a discount offset against the underlying loan, during the three months ended March 31, 2014 and for the year ended December 31, 2013, respectively. | |||||||||
In the three months ended March 31, 2014, the Company recorded a $297,929 non-cash charge to interest expense (reflective of debt discount amortization), an increase of $291,710 in additional paid in capital pursuant to conversion of convertible notes to common stock, and $55,158 of derivative loss related to adjusting the derivative liability to fair value. At March 31, 2014, the derivative related fair value of debt and warrants were $569,100 and $50,170, respectively. | |||||||||
The Company calculates the estimated fair values of the liabilities for derivative instruments at each quarter-end using the BSM option pricing model and Monte Carlo simulations. Volatility, expected term and risk free interest rates used to estimate the fair value of derivative liabilities are indicated in the table below. The volatility was based on historical volatility, the expected term is equal to the remaining term of the debt and the risk free rate is based upon rates for treasury securities with the same term. | |||||||||
Three Months Ended | Year Ended | ||||||||
31-Mar-14 | Dec. 31, 2013 | ||||||||
Volatility | 121% | - | 139% | 87% | - | 173% | |||
Risk Free Rate | 0.10% | - | 0.89% | 0.10% | - | 1.75% | |||
Expected Term (years) | 1 | - | 3 | 0 | - | 3 | |||
Dividend Rate | 0% | 0% | |||||||
Note_17_Subsequent_Events
Note 17 - Subsequent Events | 3 Months Ended | ||
Mar. 31, 2014 | |||
Subsequent Events [Abstract] | ' | ||
Subsequent Events [Text Block] | ' | ||
NOTE 17 – SUBSEQUENT EVENTS | |||
In the second quarter of 2014, the Company engaged in the following transactions: | |||
● | Four different investment funds provided aggregate net proceeds of $141,750 in the form of convertible notes to the Company, all convertible at share prices between 30% and 45% discount to market. These notes bear interest at rates between 8% and 12%, and have terms of 12 months. | ||
● | One fund purchased approximately $52,000 in uncollateralized demand notes from three separate note holders of the Company. In exchange for these demand notes, the Company issued to these holders new 12 month promissory notes with interest rates between 10% and 12%, convertible into common stock at prices between 42% and 45% discount to market. A separate fund purchased $100,000 in principal and interest from a separate note holder of the Company, pursuant to their $400,000 Senior Secured Debenture. In exchange for this debt assignment, the Company issued to this holder two separate $50,000 12 month 10% interest promissory notes, convertible into common stock at approximately a 42% discount to market. | ||
● | The Company issued approximately 29 million shares of common stock in conversion of approximately $200,000 in convertible debt. | ||
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 3 Months Ended | |||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||||||
Consolidation, Policy [Policy Text Block] | ' | |||||||||||||||||
B. PRINCIPLES OF CONSOLIDATION AND BASIS OF PRESENTATION | ||||||||||||||||||
The unaudited consolidated financial statements include the accounts of the Company, its 73.72% owned WHE Subsidiary and its 95% owned subsidiary Cyclone Performance. All material inter-company transactions and balances have been eliminated in the condensed consolidated financial statements. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles applicable to interim financial information and the requirements of Form 10-Q and Article 10 of Regulation S-X of the SEC. Accordingly, they do not include all of the information and disclosures required by accounting principles generally accepted in the United States for complete consolidated financial statements. Interim results are not necessarily indicative of results for a full year. In the opinion of management, all adjustments considered necessary for a fair presentation of the financial position and the results of operations and cash flows for the interim periods have been included. | ||||||||||||||||||
The accounting principles utilized by the Company require the Company to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, the reported amounts of revenues and expenses, cash flows and the related footnote disclosures during the periods. On an on-going basis, the Company reviews and evaluates its estimates and assumptions, including, but not limited to, those that relate to the realizable value of inventory, identifiable intangible assets and other long-lived assets, contracts, income taxes, derivative liabilities, and contingencies. Actual results could differ from these estimates. | ||||||||||||||||||
Cash and Cash Equivalents, Policy [Policy Text Block] | ' | |||||||||||||||||
C. CASH | ||||||||||||||||||
Cash includes cash on hand and cash in banks. The Company maintains cash balances at several financial institutions. | ||||||||||||||||||
Earnings Per Share, Policy [Policy Text Block] | ' | |||||||||||||||||
D. COMPUTATION OF LOSS PER SHARE | ||||||||||||||||||
Net loss per share is computed by dividing the net loss by the weighted average number of common shares outstanding during the period. Diluted net loss per share is not presented as the conversion of the preferred stock and exercise of outstanding stock options and warrants would have an anti-dilutive effect. As of March 31, 2014 and 2013, total anti-dilutive shares not inclusive of the potential conversion of several convertible promissory notes amounted to approximately 19.6 million and 18.6 million shares, respectively. | ||||||||||||||||||
Income Tax, Policy [Policy Text Block] | ' | |||||||||||||||||
E. INCOME TAXES | ||||||||||||||||||
Income taxes are accounted for under the asset and liability method as stipulated by Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 740, “Income Taxes” (“ASC 740”). Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under ASC 740, the effect on deferred tax assets and liabilities or a change in tax rate is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced to estimated amounts to be realized by the use of a valuation allowance. A valuation allowance is applied when in management’s view it is more likely than not (50%) that such deferred tax will not be utilized. | ||||||||||||||||||
In the unlikely event that an uncertain tax position exists in which the Company could incur income taxes, the Company would evaluate whether there is a probability that the uncertain tax position taken would be sustained upon examination by the taxing authorities. Reserves for uncertain tax positions would be recorded if the Company determined it is probable that a position would not be sustained upon examination or if payment would have to be made to a taxing authority and the amount is reasonably estimated. As of March 31, 2014, the Company does not believe it has any uncertain tax positions that would result in the Company having a liability to the taxing authorities. Interest related to the unrecognized tax benefits is recognized in the consolidated financial statements as a component of income taxes. The Company’s tax returns are subject to examination by the federal and state tax authorities for the years ended 2010 through 2013. | ||||||||||||||||||
Revenue Recognition, Policy [Policy Text Block] | ' | |||||||||||||||||
F. REVENUE RECOGNITION | ||||||||||||||||||
The Company’s revenue recognition policies are in compliance with ASC 605, “Revenue Recognition – Multiple Element Arrangements”, and Staff Accounting Bulletin (“SAB”) 104, Revenue Recognition. Revenue is recognized at the date of shipment of engines and systems, engine prototypes, engine designs or other deliverables to customers when a formal arrangement exists, the price is fixed or determinable, the delivery is completed, no other significant obligations of the Company exist and collectability is reasonably assured. Revenue from contracts for multiple deliverables and milestone method recognition are evaluated and allocated as appropriate. The Company has determined that the milestone method of revenue recognition (ASC 605-28) is appropriate for two of the Company’s contracts which specifically enumerate approved work effort milestones required for remuneration – the Company’s contract with the U.S. Army / TARDEC and the Amended and Restated Technology Application License Agreement with Phoenix Power Group LLC. All revenue and costs of goods sold are included in the accompanying condensed consolidated statements of operations. Payments received before all of the relevant criteria for revenue recognition are satisfied are recorded as deferred revenue on the consolidated balance sheets. The Company does not allow its customers to return prototype products. Current contracts do not require the Company to provide any warranty assistance after the “deliverable” has been accepted. | ||||||||||||||||||
It is the Company’s intention when it has royalty revenue from its contracts to record royalty revenue periodically when earned, as reported in sales statements from customers. The Company does not have any royalty revenue to date. | ||||||||||||||||||
Standard Product Warranty, Policy [Policy Text Block] | ' | |||||||||||||||||
G. WARRANTY PROVISIONS | ||||||||||||||||||
Current contracts do not require warranty assistance subsequent to acceptance of the “deliverable R&D prototype” by the customer. For products that the Company will sell in the future, warranty costs are anticipated to be borne by the manufacturing vendor. | ||||||||||||||||||
Inventory, Policy [Policy Text Block] | ' | |||||||||||||||||
H. INVENTORY | ||||||||||||||||||
Inventory is recorded at the lower of cost or market. Costs include material, labor and allocated overhead to manufacture a completed engine. These costs are periodically evaluated to determine if they have a net realizable value. If the net realizable value is lower than the carrying amount, a reserve is provided. | ||||||||||||||||||
Fair Value of Financial Instruments, Policy [Policy Text Block] | ' | |||||||||||||||||
I. FAIR VALUE OF FINANCIAL INSTRUMENTS | ||||||||||||||||||
ASC 820, “Fair Value Measurements and Disclosures” requires disclosures of information about the fair value of certain financial instruments for which it is practicable to estimate the value. The carrying amounts reported in the balance sheet for cash, accounts payable and accrued expenses, and loans payable approximate their fair market value based on the short-term maturity of these instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. Inputs may be observable or unobservable. Observable inputs are based on market data obtained from sources independent of the Company. Unobservable inputs reflect the Company’s own assumptions based on the best information available in the circumstances. The fair value hierarchy prioritizes the inputs used to measure fair value into three broad levels. The three levels of the fair value hierarchy are defined as follows: | ||||||||||||||||||
Level 1 | — | Inputs are quoted prices in active markets for identical assets or liabilities as of the reporting date. | ||||||||||||||||
Level 2 | — | Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, as of the reporting date. | ||||||||||||||||
Level 3 | — | Unobservable inputs for the asset or liability that reflect management’s own assumptions about the assumptions that market participants would use in pricing the asset or liability as of the reporting date. | ||||||||||||||||
The summary of fair values and changing values of financial instruments for the three months ended March 31, 2014 is as follows: | ||||||||||||||||||
Instrument | Beginning | Change | End of | Level | Valuation | |||||||||||||
of Period | Period | Methodology | ||||||||||||||||
Derivative liabilities | $ | 484,796 | $ | 134,472 | $ | 619,268 | 3 | Binomial | ||||||||||
Lattice Model | ||||||||||||||||||
Please refer to Note 16 for disclosure and assumptions used to calculate the fair value of the derivative liabilities. | ||||||||||||||||||
Research and Development Expense, Policy [Policy Text Block] | ' | |||||||||||||||||
J. RESEARCH AND DEVELOPMENT | ||||||||||||||||||
Research and development activities for product development are expensed as incurred. Costs for the three months ended March 31, 2014 and 2013 were $124,180 and $250,550, respectively. | ||||||||||||||||||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' | |||||||||||||||||
K. STOCK BASED COMPENSATION | ||||||||||||||||||
The Company applies the fair value method of ASC 718, “Share Based Payment”, in accounting for its stock based compensation. This standard states that compensation cost is measured at the grant date based on the value of the award and is recognized over the service period, which is usually the vesting period. The Company values stock based compensation at the market price for the Company’s common stock as of the date in which the obligation for payment of services is incurred. | ||||||||||||||||||
Stockholders' Equity, Policy [Policy Text Block] | ' | |||||||||||||||||
L. COMMON STOCK OPTIONS AND PURCHASE WARRANTS | ||||||||||||||||||
The Company accounts for common stock options and purchase warrants at fair value in accordance with ASC 815-40, “Derivatives and Hedging”. The Black-Scholes option pricing valuation method is used to determine fair value of these warrants consistent with ASC 718, “Share Based Payment”. Use of this method requires that the Company make assumptions regarding stock volatility, dividend yields, expected term of the warrants and risk-free interest rates. | ||||||||||||||||||
The Company accounts for transactions in which services are received from non-employees in exchange for equity instruments based on the fair value of the equity instruments exchanged, in accordance with ASC 505-50, “Equity Based payments to Non-employees”. | ||||||||||||||||||
Debt, Policy [Policy Text Block] | ' | |||||||||||||||||
M. ORIGINAL ISSUE DEBT DISCOUNT | ||||||||||||||||||
The original issue discount (OID) related to notes payable is amortized by the effective interest method over the repayment period of the notes. The unamortized OID is represented as a reduction of the amount of the notes payable. | ||||||||||||||||||
Property, Plant and Equipment, Policy [Policy Text Block] | ' | |||||||||||||||||
N. PROPERTY AND EQUIPMENT | ||||||||||||||||||
Property and equipment are recorded at cost. Depreciation is computed on the straight-line method, based on the estimated useful lives of the assets as follows: | ||||||||||||||||||
Years | ||||||||||||||||||
Display equipment for trade shows | 3 | |||||||||||||||||
Leasehold improvements and furniture and fixtures | 10 | - | 15 | |||||||||||||||
Shop equipment | 7 | |||||||||||||||||
Computers | 3 | |||||||||||||||||
Expenditures for maintenance and repairs are charged to operations as incurred. | ||||||||||||||||||
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | ' | |||||||||||||||||
O. IMPAIRMENT OF LONG LIVED ASSETS | ||||||||||||||||||
The Company continually evaluates the carrying value of intangible assets and other long lived assets to determine whether there are any impairment losses. If indicators of impairment are present and future cash flows are not expected to be sufficient to recover the assets’ carrying amount, an impairment loss would be charged to expense in the period identified. To date, the Company has not recognized any impairment charges. | ||||||||||||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | ' | |||||||||||||||||
P. RECENT ACCOUNTING PRONOUNCEMENTS | ||||||||||||||||||
In 2014, the FASB issued an Accounting Standard Update (“ASU”) 2014-05 “Service Concession Arrangements (Topic 853), ASU 2014-04 Receivables-Troubled Debt Restructurings by Creditors (Subtopic 310-40), ASU 2014-03 Derivatives and Hedging (Topic 815) Accounting for Certain Receive-Variable, Pay Fixed Interest Rate Swaps-Simplified Hedge Account Approach, and ASU 2014-02 Intangibles-Goodwill and Other (Topic 350). Management believes that these standards will not materially impact our financial statements. | ||||||||||||||||||
Concentration Risk, Credit Risk, Policy [Policy Text Block] | ' | |||||||||||||||||
Q. CONCENTRATION OF RISK | ||||||||||||||||||
The Company does not have any off-balance sheet concentrations of credit risk. The Company expects cash and accounts receivable to be the two assets most likely to subject the Company to concentrations of credit risk. The Company’s policy is to maintain its cash with high credit quality financial institutions to limit its risk of loss exposure. | ||||||||||||||||||
As of March 31, 2014, the Company maintained its cash in two quality financial institutions. The Company has not experienced any losses in its bank accounts through March 31, 2014. The Company purchases raw material and components from multiple sources, none of which may be considered a principal or material supplier. If necessary, the Company could replace these suppliers with minimal effect on its business operations. | ||||||||||||||||||
Derivatives, Policy [Policy Text Block] | ' | |||||||||||||||||
R. DERIVATIVE FINANCIAL INSTRUMENTS | ||||||||||||||||||
Accounting and reporting standards for derivative instruments and for hedging activities were codified by ASC Topic 815, Derivatives and Hedging (“ASC Topic 815”). It requires that all derivatives be recognized in the balance sheet and measured at fair value. Gains or losses resulting from changes in the fair value of derivatives are recognized in earnings or recorded in other comprehensive income (loss) depending on the purpose of the derivatives and whether they qualify and have been designated for hedge accounting treatment. The Company has derivative liabilities pursuant to convertible debt and common stock warrants, and has recognized net expenses on the condensed consolidated statements of operations. The Company does not have any derivative instruments for which it has applied hedge accounting treatment. |
Note_1_Organizational_and_Sign1
Note 1 - Organizational and Significant Accounting Policies (Tables) | 3 Months Ended | |||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | ' | |||||||||||||||||
Instrument | Beginning | Change | End of | Level | Valuation | |||||||||||||
of Period | Period | Methodology | ||||||||||||||||
Derivative liabilities | $ | 484,796 | $ | 134,472 | $ | 619,268 | 3 | Binomial | ||||||||||
Lattice Model | ||||||||||||||||||
Estimated Useful Lives of Property and Equipment [Table Text Block] | ' | |||||||||||||||||
Years | ||||||||||||||||||
Display equipment for trade shows | 3 | |||||||||||||||||
Leasehold improvements and furniture and fixtures | 10 | - | 15 | |||||||||||||||
Shop equipment | 7 | |||||||||||||||||
Computers | 3 |
Note_3_Inventory_Net_Tables
Note 3 - Inventory, Net (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Schedule of Inventory, Current [Table Text Block] | ' | ||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Engine material and parts | $ | 332,314 | $ | 316,513 | |||||
Labor | 307,280 | 237,311 | |||||||
Applied overhead | 49,590 | 35,596 | |||||||
Total | 689,184 | 589,420 | |||||||
Inventory valuation reserve | (100,000 | ) | (100,000 | ) | |||||
Inventory, net | $ | 589,184 | $ | 489,420 |
Note_4_Property_and_Equipment_
Note 4 - Property and Equipment (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property, Plant and Equipment [Table Text Block] | ' | ||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Display equipment for trade shows | $ | 9,648 | $ | 9,648 | |||||
Leasehold improvements and furniture and fixtures | 94,572 | 94,572 | |||||||
Equipment and computers | 398,342 | 398,342 | |||||||
Total | 502,562 | 502,562 | |||||||
Accumulated depreciation | (133,621 | ) | (125,799 | ) | |||||
Net property and equipment | $ | 368,941 | $ | 376,763 |
Note_6_Notes_and_Other_Loans_P1
Note 6 - Notes and Other Loans Payable (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Schedule of Debt [Table Text Block] | ' | ||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
12% senior secured note payable, plus 6% redemption premium, collateralized by all assets of the Company, monthly payments commencing December 2013 through September 2014 | $ | 237,033 | $ | 361,767 | |||||
6-12% uncollateralized demand notes payable | 40,000 | 127,500 | |||||||
12% convertible notes payable, net of discount of $17,480 and $48,851 at March 31, 2014 and December 31, 2013, respectively, maturing at various dates from November 2013 through July 2014 (A) | 99,864 | 139,769 | |||||||
10% convertible note payable, net of discount of $27,322 and $115,585 at March 31, 2014 and December 31, 2014, respectively, monthly payments commencing in December 2014 through July 2014 (B) | 77,763 | 74,344 | |||||||
10% convertible notes payable, net of discount of $59,010 and $58,279 at March 31, 2014 and December 31, 2013, respectively, maturing at various dates from August 2014 through January 2015 (C) | 36,988 | 15,634 | |||||||
10% convertible notes payable, net of discount of $57,386 and $55,109 at March 31, 2014 and December 31, 2013, respectively, maturing at various dates from December 2014 through January 2015 (D) | 52,614 | 10,891 | |||||||
6% convertible notes payable, net of discount of $155,131 and $89,003 at March 31, 2014 and December 31, 2013, respectively, maturing at various dates from December 2016 through February 2017 ( E ) | 64,869 | 30,997 | |||||||
10% convertible note payable, net of discount of $54,646 at March 31, 2014, maturing in February 2015 ( F ) | 20,354 | - | |||||||
12% convertible notes payable, net of discount of $54,334 at March 31, 2014, maturing at various dates from July 2014 through March 2015 ( G ) | 20,666 | - | |||||||
Total current non related party notes –net of discount | 650,151 | 760,902 | |||||||
Less-Current Portion | 585,282 | 729,905 | |||||||
Total non-current non related party notes –net of discount (accrued interest is included in accrued expenses) | $ | 64,869 | $ | 30,997 | |||||
Related Party Notes and Other Loans Payable [Table Text Block] | ' | ||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
6% demand loans per Operations Agreement with Schoell Marine Inc., a company owned by Cyclone’s Chairman and controlling shareholder (A) | $ | 424,285 | $ | 424,285 | |||||
6% non-collateralized loans from officer and shareholder, payable on demand. The original principal balances were $157,101. | 81,251 | 85,364 | |||||||
12% non-collateralized loans from officer and shareholder, payable on demand | 11,000 | 11,000 | |||||||
Accrued interest | 266,210 | 254,471 | |||||||
Total current related party notes, inclusive of accrued interest | $ | 782,746 | $ | 775,120 |
Note_10_Stock_Options_and_Warr1
Note 10 - Stock Options and Warrants (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Stock Options And Warrants [Abstract] | ' | ||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | ||||||||||||
Number | Weighted | Weighted | |||||||||||
Outstanding | Avg. | Avg. | |||||||||||
Exercise Price | Remaining | ||||||||||||
Contractual | |||||||||||||
Life | |||||||||||||
(Years) | |||||||||||||
Balance, December 31, 2013 | 9,740,000 | $ | 0.129 | 6.5 | |||||||||
Options issued | - | - | - | ||||||||||
Options exercised | - | - | - | ||||||||||
Options cancelled | - | - | - | ||||||||||
Balance, March 31, 2014 | 9,740,000 | $ | 0.139 | 6.2 | |||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | ' | ||||||||||||
Three Months Ended | Year Ended | ||||||||||||
31-Mar-14 | 31-Dec-13 | ||||||||||||
Risk free interest rate | 0.67% | - | 1.32% | 0.51% | - | 1.41% | |||||||
Expected volatility | 43% | - | 63% | 34% | - | 107% | |||||||
Expected term in years | 2 | - | 4 | 1 | - | 5 | |||||||
Expected dividend yield | 0% | 0% | |||||||||||
Average value per options and warrants | $0.01 | - | $0.02 | $ .01 | - | $0.06 | |||||||
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | ' | ||||||||||||
Number | Weighted Average | Weighted | |||||||||||
Outstanding | Exercise Price | Average | |||||||||||
Remaining | |||||||||||||
Contractual | |||||||||||||
Life (Years) | |||||||||||||
Common Stock Warrants | |||||||||||||
Balance, December 31, 2013 | 16,097,798 | 0.057 | 2.85 | ||||||||||
Warrants exercised-cashless | (9,037,230 | ) | (0.017 | ) | |||||||||
Warrants issued | 2,838,048 | 0.114 | 4.16 | ||||||||||
Warrants re-priced: | |||||||||||||
Cancelled – old | (1,190,625 | ) | (0.020 | ) | |||||||||
Re-Priced | 1,190,625 | 0.114 | |||||||||||
Balance, March 31, 2014 | 9,898,616 | $ | 0.113 | 2.16 |
Note_11_Income_Taxes_Tables
Note 11 - Income Taxes (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | ' | ||||||||||||||||
Three months | Amount | Three months | Amount | ||||||||||||||
ended | ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Tax benefit at U.S. statutory rate | 34% | $ | 229,566 | 34% | $ | 204,047 | |||||||||||
State taxes, net of federal benefit | 4 | 27,008 | 4 | 24,005 | |||||||||||||
Change in valuation allowance | -38 | (256,574 | ) | -38 | (228,052 | ) | |||||||||||
-% | $ | - | -% | $ | - | ||||||||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | ' | ||||||||||||||||
Deferred Tax Assets | March 31, | December 31, | |||||||||||||||
2014 | 2013 | ||||||||||||||||
Net Operating Loss Carry-forward | $ | 8,229,658 | $ | 7,946,959 | |||||||||||||
Deferred Tax Liabilities – Accrued Officers’ Salaries | (234,413 | ) | (440,135 | ) | |||||||||||||
Net Deferred Tax Assets | 7,995,245 | 7,506,824 | |||||||||||||||
Valuation Allowance | (7,995,245 | ) | (7,506,824 | ) | |||||||||||||
Total Net Deferred Tax Assets | $ | - | $ | - |
Note_12_Lease_Obligations_Tabl
Note 12 - Lease Obligations (Tables) | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Leases, Capital [Abstract] | ' | ||||
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | ' | ||||
2014 | $ | 4,592 | |||
2015 | 5,801 | ||||
2016 | 6,620 | ||||
2017 | 6,079 | ||||
2018 | 2,050 | ||||
$ | 25,142 |
Note_16_Derivative_Financial_I1
Note 16 - Derivative Financial Instruments (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Disclosure Text Block [Abstract] | ' | ||||||||
Schedule of Derivative Liabilities at Fair Value [Table Text Block] | ' | ||||||||
Three Months Ended | Year Ended | ||||||||
31-Mar-14 | Dec. 31, 2013 | ||||||||
Volatility | 121% | - | 139% | 87% | - | 173% | |||
Risk Free Rate | 0.10% | - | 0.89% | 0.10% | - | 1.75% | |||
Expected Term (years) | 1 | - | 3 | 0 | - | 3 | |||
Dividend Rate | 0% | 0% |
Note_1_Organizational_and_Sign2
Note 1 - Organizational and Significant Accounting Policies (Details) (USD $) | 3 Months Ended | |
Share data in Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Note 1 - Organizational and Significant Accounting Policies (Details) [Line Items] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 19.6 | 18.6 |
Research and Development Expense | $124,180 | $250,550 |
WHE Subsidiary [Member] | ' | ' |
Note 1 - Organizational and Significant Accounting Policies (Details) [Line Items] | ' | ' |
Equity Method Investment, Ownership Percentage | 73.72% | ' |
Cyclone Performance [Member] | ' | ' |
Note 1 - Organizational and Significant Accounting Policies (Details) [Line Items] | ' | ' |
Equity Method Investment, Ownership Percentage | 95.00% | ' |
Minimum [Member] | ' | ' |
Note 1 - Organizational and Significant Accounting Policies (Details) [Line Items] | ' | ' |
Open Tax Year | '2010 | ' |
Maximum [Member] | ' | ' |
Note 1 - Organizational and Significant Accounting Policies (Details) [Line Items] | ' | ' |
Open Tax Year | '2013 | ' |
Note_1_Organizational_and_Sign3
Note 1 - Organizational and Significant Accounting Policies (Details) - Summary of Fair Values and Changing Values of Financial Instruments (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Summary of Fair Values and Changing Values of Financial Instruments [Abstract] | ' |
Derivative liabilities | $484,796 |
Derivative liabilities | 134,472 |
Derivative liabilities | $619,268 |
Note_1_Organizational_and_Sign4
Note 1 - Organizational and Significant Accounting Policies (Details) - Estimated Useful Lives of Property and Equipment | 3 Months Ended |
Mar. 31, 2014 | |
Display Equipment for Trade Shows [Member] | ' |
Years | ' |
Estimated useful lives | '3 years |
Leasehold Improvements and Furniture and Fixtures [Member] | Minimum [Member] | ' |
Years | ' |
Estimated useful lives | '10 years |
Leasehold Improvements and Furniture and Fixtures [Member] | Maximum [Member] | ' |
Years | ' |
Estimated useful lives | '15 years |
Shop Equipment [Member] | ' |
Years | ' |
Estimated useful lives | '7 years |
Computer Equipment [Member] | ' |
Years | ' |
Estimated useful lives | '3 years |
Note_2_Going_Concern_Details
Note 2 - Going Concern (Details) (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Dec. 31, 2013 | |
Note 2 - Going Concern (Details) [Line Items] | ' | ' |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | ($1,100,000) | ($3,800,000) |
Retained Earnings (Accumulated Deficit) | -53,540,555 | -52,474,270 |
Working Capital Deficit | 2,900,000 | ' |
Attributable to Operating Losses [Member] | ' | ' |
Note 2 - Going Concern (Details) [Line Items] | ' | ' |
Retained Earnings (Accumulated Deficit) | -22,154,169 | -21,440,971 |
Attributable to Non-Cash Derivative Liability Accounting [Member] | ' | ' |
Note 2 - Going Concern (Details) [Line Items] | ' | ' |
Retained Earnings (Accumulated Deficit) | ($31,386,386) | ($31,033,299) |
Note_3_Inventory_Net_Details_I
Note 3 - Inventory, Net (Details) - Inventory Components (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Inventory [Line Items] | ' | ' |
Inventory | $689,184 | $589,420 |
Inventory valuation reserve | -100,000 | -100,000 |
Inventory, net | 589,184 | 489,420 |
Engine Material and Parts [Member] | ' | ' |
Inventory [Line Items] | ' | ' |
Inventory | 332,314 | 316,513 |
Labor [Member] | ' | ' |
Inventory [Line Items] | ' | ' |
Inventory | 307,280 | 237,311 |
Applied Overhead [Member] | ' | ' |
Inventory [Line Items] | ' | ' |
Inventory | $49,590 | $35,596 |
Note_4_Property_and_Equipment_1
Note 4 - Property and Equipment (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Property, Plant and Equipment [Abstract] | ' | ' |
Depreciation | $7,822 | $6,773 |
Note_4_Property_and_Equipment_2
Note 4 - Property and Equipment (Details) - Property and Equipment (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and Equipment | $502,562 | $502,562 |
Accumulated depreciation | -133,621 | -125,799 |
Net property and equipment | 368,941 | 376,763 |
Display Equipment for Trade Shows [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and Equipment | 9,648 | 9,648 |
Leasehold Improvements and Furniture and Fixtures [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and Equipment | 94,572 | 94,572 |
Equipment and Computers [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and Equipment | $398,342 | $398,342 |
Note_5_Patents_Trademarks_and_1
Note 5 - Patents, Trademarks and Copyrights (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Disclosure Text Block [Abstract] | ' | ' | ' |
Finite-Lived Intangible Assets, Net | $365,306 | ' | $374,768 |
Patents, Trademarks and Copyrights Capitalized | 0 | ' | 6,920 |
Number of Patents | 33 | ' | ' |
Number of Trademarks | 3 | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '15 years | ' | ' |
Amortization of Intangible Assets | $9,462 | $9,970 | ' |
Note_6_Notes_and_Other_Loans_P2
Note 6 - Notes and Other Loans Payable (Details) (USD $) | 3 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||
Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | |
Note 1 [Member] | Aug 2014 [Member] | Aug 2014 [Member] | Dec 2014 [Member] | Dec 2014 [Member] | Feb 2015 [Member] | Feb 2015 [Member] | July 2014 [Member] | July 2014 [Member] | Original Issue Discount [Member] | Original Issue Discount [Member] | Original Issue Discount [Member] | Original Issue Discount [Member] | Original Issue Discount [Member] | 12% Convertible Notes Payable [Member] | 12% Convertible Notes Payable [Member] | 10% Convertible Note Payable [Member] | 10% Convertible Note Payable [Member] | 10% Convertible Note Payable [Member] | 6% Convertible Notes Payable [Member] | 6% Demand Loans per Operations Agreement with Schoell Marine Inc. [Member] | 6% Demand Loans per Operations Agreement with Schoell Marine Inc. [Member] | |||
6% Convertible Notes Payable [Member] | Original Issue Discount [Member] | 10% Convertible Note Payable [Member] | Original Issue Discount [Member] | 10% Convertible Note Payable [Member] | Original Issue Discount [Member] | 10% Convertible Note Payable [Member] | Original Issue Discount [Member] | 12% Convertible Notes Payable [Member] | 12% Convertible Notes Payable [Member] | 12% Convertible Notes Payable [Member] | 10% Convertible Note Payable [Member] | 10% Convertible Note Payable [Member] | 6% Convertible Notes Payable [Member] | Notes Payable [Member] | Carrying Value of Stock Purchase Warrants [Member] | Additional Discount from Derivative Liabilities [Member] | ||||||||
10% Convertible Note Payable [Member] | 10% Convertible Note Payable [Member] | 10% Convertible Note Payable [Member] | 12% Convertible Notes Payable [Member] | Notes Payable [Member] | Additional Discount from Derivative Liabilities [Member] | |||||||||||||||||||
Note 6 - Notes and Other Loans Payable (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes Payable Original Discount, Percent | ' | ' | 10.00% | ' | ' | ' | ' | ' | 80104.00% | ' | 86258.00% | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' |
Debt Instrument, Unamortized Discount | ' | ' | ' | $59,010 | ' | $57,386 | ' | $54,646 | ' | $54,334 | ' | $130,684 | $31,110 | $89,370 | $26,250 | $20,095 | $11,376 | $6,104 | $10,276 | $11,065 | $5,981 | $135,036 | ' | ' |
Common Stock, Capital Shares Reserved for Future Issuance (in Shares) | ' | ' | ' | ' | 18,582,894 | ' | 19,700,581 | ' | 18,232,759 | ' | 2,661,539 | ' | ' | ' | ' | ' | ' | 7,962,267 | ' | ' | 821,831 | 36,000,000 | ' | ' |
Warrants Issued During Period, Value | 34,680 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.00% | ' |
Repayments of Notes Payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 500 |
Related Party Transaction, Loan by Chairman of Company Common Stock (in Shares) | ' | 37,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related Party Transaction, Loan by Chairman of Company Common Stock Value | ' | $1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note_6_Notes_and_Other_Loans_P3
Note 6 - Notes and Other Loans Payable (Details) - Non-Related Party Notes and Other Loans Payable (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
Note 6 - Notes and Other Loans Payable (Details) - Non-Related Party Notes and Other Loans Payable [Line Items] | ' | ' | ||
Current non-related party notes | $585,282 | $729,905 | ||
Total non-current non related party notes bnet of discount (accrued interest is included in accrued expenses) | 64,869 | 30,997 | ||
Total current non related party notes bnet of discount | 650,151 | 760,902 | ||
12% Senior Secured Note Payable [Member] | ' | ' | ||
Note 6 - Notes and Other Loans Payable (Details) - Non-Related Party Notes and Other Loans Payable [Line Items] | ' | ' | ||
Current non-related party notes | 237,033 | 361,767 | ||
6 - 12% Uncollateralized Demand Notes Payable [Member] | ' | ' | ||
Note 6 - Notes and Other Loans Payable (Details) - Non-Related Party Notes and Other Loans Payable [Line Items] | ' | ' | ||
Current non-related party notes | 40,000 | 127,500 | ||
12% Convertible Notes Payable [Member] | July 2014 [Member] | ' | ' | ||
Note 6 - Notes and Other Loans Payable (Details) - Non-Related Party Notes and Other Loans Payable [Line Items] | ' | ' | ||
Current non-related party notes | 20,666 | [1] | ' | [1] |
12% Convertible Notes Payable [Member] | ' | ' | ||
Note 6 - Notes and Other Loans Payable (Details) - Non-Related Party Notes and Other Loans Payable [Line Items] | ' | ' | ||
Current non-related party notes | 99,864 | [2] | 139,769 | [2] |
10% Convertible Note Payable [Member] | Maturing December 2014 [Member] | ' | ' | ||
Note 6 - Notes and Other Loans Payable (Details) - Non-Related Party Notes and Other Loans Payable [Line Items] | ' | ' | ||
Current non-related party notes | 77,763 | [3] | 74,344 | [3] |
10% Convertible Note Payable [Member] | Feb 2015 [Member] | ' | ' | ||
Note 6 - Notes and Other Loans Payable (Details) - Non-Related Party Notes and Other Loans Payable [Line Items] | ' | ' | ||
Current non-related party notes | 20,354 | [4] | ' | [4] |
10% Convertible Note Payable [Member] | Maturing August 2014 [Member] | ' | ' | ||
Note 6 - Notes and Other Loans Payable (Details) - Non-Related Party Notes and Other Loans Payable [Line Items] | ' | ' | ||
Current non-related party notes | 36,988 | [5] | 15,634 | [5] |
10% Convertible Note Payable [Member] | Maturing December 2014 [Member] | ' | ' | ||
Note 6 - Notes and Other Loans Payable (Details) - Non-Related Party Notes and Other Loans Payable [Line Items] | ' | ' | ||
Current non-related party notes | 52,614 | [6] | 10,891 | [6] |
6% Convertible Notes Payable [Member] | Dec 2016 [Member] | ' | ' | ||
Note 6 - Notes and Other Loans Payable (Details) - Non-Related Party Notes and Other Loans Payable [Line Items] | ' | ' | ||
Current non-related party notes | $64,869 | [7] | $30,997 | [7] |
[1] | Notes issued net of discount from derivative liabilities of $86,258 ($54,334 unamortized at March 31, 2014). At March 31, 2014, the Company held 2,661,539 shares in reserve to cover the potential conversion of this note into common stock pursuant to debt covenants. | |||
[2] | Notes issued net of 10% original discount of $31,110 ($6,104 unamortized at March 31, 2014) along with additional discount from derivative liabilities of $130,684 ($11,376 unamortized at March 31, 2014). At March 31, 2014, the Company held 7,962,267 shares in reserve to cover the potential conversion of this note into common stock pursuant to debt covenants. | |||
[3] | Note issued net of original discount of $26,250 ($5,981 unamortized at March 31, 2014) along with stock purchase warrants whose value at issuance of $34,680 has been carried as a discount against the note ($10,276 unamortized at March 31, 2014) and an additional discount from derivative liabilities of $89,370 ($11,065 unamortized at March 31, 2014). At March 31, 2014, the Company held 821,831 shares in reserve to cover the potential conversion of this note into common stock pursuant to debt covenants. | |||
[4] | Notes issued net of discount from derivative liabilities of $80,104 ($54,646 unamortized at March 31, 2014). At March 31, 2014, the Company held 18,232,759 shares in reserve to cover the potential conversion of this note into common stock pursuant to debt covenants. | |||
[5] | Notes issued net of discount from derivative liabilities ($59,010 unamortized at March 31, 2014). At March 31, 2014 the Company held 18,582,894 shares in reserve to cover the potential conversion of this note into common stock pursuant to debt covenants. | |||
[6] | Notes issued net of discount from derivative liabilities ($57,386 unamortized at March 31, 2014). At March 31, 2014, the Company held 19,700,581 shares in reserve to cover the potential conversion of this note into common stock pursuant to debt covenants. | |||
[7] | Notes issued net of 10% original discount ($20,095 unamortized at March 31, 2014) along with additional discount from derivative liabilities ($135,036 unamortized at March 31, 2014). At March 31, 2014, the Company held 36,000,000 shares in reserve to cover the potential conversion of this note into common stock pursuant to debt covenants. |
Note_6_Notes_and_Other_Loans_P4
Note 6 - Notes and Other Loans Payable (Details) - Non-Related Party Notes and Other Loans Payable (Parentheticals) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
12% Senior Secured Note Payable [Member] | ' | ' |
Note 6 - Notes and Other Loans Payable (Details) - Non-Related Party Notes and Other Loans Payable (Parentheticals) [Line Items] | ' | ' |
Interest rate | 12.00% | 12.00% |
Redemption premium, percent | 6.00% | 6.00% |
6 - 12% Uncollateralized Demand Notes Payable [Member] | Minimum [Member] | ' | ' |
Note 6 - Notes and Other Loans Payable (Details) - Non-Related Party Notes and Other Loans Payable (Parentheticals) [Line Items] | ' | ' |
Interest rate | 6.00% | 6.00% |
6 - 12% Uncollateralized Demand Notes Payable [Member] | Maximum [Member] | ' | ' |
Note 6 - Notes and Other Loans Payable (Details) - Non-Related Party Notes and Other Loans Payable (Parentheticals) [Line Items] | ' | ' |
Interest rate | 12.00% | 12.00% |
12% Convertible Notes Payable [Member] | July 2014 [Member] | ' | ' |
Note 6 - Notes and Other Loans Payable (Details) - Non-Related Party Notes and Other Loans Payable (Parentheticals) [Line Items] | ' | ' |
Interest rate | 12.00% | 12.00% |
Original issue discount (in Dollars) | 54,334 | ' |
12% Convertible Notes Payable [Member] | ' | ' |
Note 6 - Notes and Other Loans Payable (Details) - Non-Related Party Notes and Other Loans Payable (Parentheticals) [Line Items] | ' | ' |
Interest rate | 12.00% | 12.00% |
Original issue discount (in Dollars) | 17,480 | 48,851 |
10% Convertible Note Payable [Member] | Maturing December 2014 [Member] | ' | ' |
Note 6 - Notes and Other Loans Payable (Details) - Non-Related Party Notes and Other Loans Payable (Parentheticals) [Line Items] | ' | ' |
Interest rate | 10.00% | 10.00% |
Original issue discount (in Dollars) | 27,322 | 115,585 |
10% Convertible Note Payable [Member] | Feb 2015 [Member] | ' | ' |
Note 6 - Notes and Other Loans Payable (Details) - Non-Related Party Notes and Other Loans Payable (Parentheticals) [Line Items] | ' | ' |
Interest rate | 10.00% | 10.00% |
Original issue discount (in Dollars) | 54,646 | ' |
10% Convertible Note Payable [Member] | Maturing August 2014 [Member] | ' | ' |
Note 6 - Notes and Other Loans Payable (Details) - Non-Related Party Notes and Other Loans Payable (Parentheticals) [Line Items] | ' | ' |
Interest rate | 10.00% | 10.00% |
Original issue discount (in Dollars) | 59,010 | 58,279 |
10% Convertible Note Payable [Member] | Maturing December 2014 [Member] | ' | ' |
Note 6 - Notes and Other Loans Payable (Details) - Non-Related Party Notes and Other Loans Payable (Parentheticals) [Line Items] | ' | ' |
Interest rate | 10.00% | 10.00% |
Original issue discount (in Dollars) | 57,386 | 55,109 |
6% Convertible Notes Payable [Member] | Dec 2016 [Member] | ' | ' |
Note 6 - Notes and Other Loans Payable (Details) - Non-Related Party Notes and Other Loans Payable (Parentheticals) [Line Items] | ' | ' |
Interest rate | 6.00% | 6.00% |
Original issue discount (in Dollars) | 155,131 | 89,003 |
Note_6_Notes_and_Other_Loans_P5
Note 6 - Notes and Other Loans Payable (Details) - Related Party Notes and Other Loans Payable (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
Note 6 - Notes and Other Loans Payable (Details) - Related Party Notes and Other Loans Payable [Line Items] | ' | ' | ||
Current due to related parties | $782,746 | $775,120 | ||
6% Demand Loans per Operations Agreement with Schoell Marine Inc. [Member] | ' | ' | ||
Note 6 - Notes and Other Loans Payable (Details) - Related Party Notes and Other Loans Payable [Line Items] | ' | ' | ||
Current due to related parties | 424,285 | [1] | 424,285 | [1] |
6% Demand Non-Collateralized Loan from Officer and Shareholder [Member] | ' | ' | ||
Note 6 - Notes and Other Loans Payable (Details) - Related Party Notes and Other Loans Payable [Line Items] | ' | ' | ||
Current due to related parties | 81,251 | 85,364 | ||
12% Non-Collateralized Loan from Officer and Shareholder [Member] | ' | ' | ||
Note 6 - Notes and Other Loans Payable (Details) - Related Party Notes and Other Loans Payable [Line Items] | ' | ' | ||
Current due to related parties | 11,000 | 11,000 | ||
Accrued Interest [Member] | ' | ' | ||
Note 6 - Notes and Other Loans Payable (Details) - Related Party Notes and Other Loans Payable [Line Items] | ' | ' | ||
Current due to related parties | $266,210 | $254,471 | ||
[1] | This note arose from services and salaries incurred by Schoell Marine on behalf of the Company. Schoell Marine also owns the building that is leased to the Company. The Schoell Marine note bears an interest rate of 6% and repayments occur as cash flow of the Company permits. The note was secured by a UCC-1 filing on the Company's patents and patent applications, which expired and has not been renewed. For the three months ended March 31, 2014 and for the year ended December 31, 2013, $0 and $500 of principal was paid on the note balance. |
Note_6_Notes_and_Other_Loans_P6
Note 6 - Notes and Other Loans Payable (Details) - Related Party Notes and Other Loans Payable (Parentheticals) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
6% Demand Loans per Operations Agreement with Schoell Marine Inc. [Member] | ' | ' |
Note 6 - Notes and Other Loans Payable (Details) - Related Party Notes and Other Loans Payable (Parentheticals) [Line Items] | ' | ' |
IntP5rP5st ratP5, rP5latP5d party loan | 6.00% | 6.00% |
6% Demand Non-Collateralized Loan from Officer and Shareholder [Member] | ' | ' |
Note 6 - Notes and Other Loans Payable (Details) - Related Party Notes and Other Loans Payable (Parentheticals) [Line Items] | ' | ' |
IntP5rP5st ratP5, rP5latP5d party loan | 6.00% | 6.00% |
Original loan amount, rP5latP5d party loan (in Dollars) | 157,101 | 157,101 |
12% Non-Collateralized Loan from Officer and Shareholder [Member] | ' | ' |
Note 6 - Notes and Other Loans Payable (Details) - Related Party Notes and Other Loans Payable (Parentheticals) [Line Items] | ' | ' |
IntP5rP5st ratP5, rP5latP5d party loan | 12.00% | 12.00% |
Note_7_Related_Party_Transacti1
Note 7 - Related Party Transactions (Details) (USD $) | 3 Months Ended | 1 Months Ended | ||||
Mar. 31, 2014 | Mar. 31, 2013 | Jul. 31, 2011 | Jan. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | |
sqft | sqft | Deferred Salary [Member] | Deferred Salary [Member] | Deferred Salary [Member] | ||
Executive Managment [Member] | Accounts Payable and Accrued Liabilities [Member] | Accounts Payable and Accrued Liabilities [Member] | ||||
Note 7 - Related Party Transactions (Details) [Line Items] | ' | ' | ' | ' | ' | ' |
Area of Real Estate Property (in Square Feet) | 6,000 | ' | 2,000 | ' | ' | ' |
Occupancy, Net | $15,741 | $15,741 | ' | ' | ' | ' |
Due to Related Parties | ' | ' | ' | ' | 377,045 | 1,910,073 |
Increase (Decrease) in Due to Related Parties | 102,674 | 98,958 | ' | -668,312 | ' | ' |
Stock Issued During Period, Shares, Restricted Stock Award, Gross (in Shares) | ' | ' | ' | 20,313,416 | ' | ' |
Proceeds from Contributed Capital | ' | ' | ' | $956,762 | ' | ' |
Note_8_Preferred_Stock_Details
Note 8 - Preferred Stock (Details) | Mar. 31, 2014 | Dec. 31, 2013 |
Note 8 - Preferred Stock (Details) [Line Items] | ' | ' |
Voting Control Percentage | 51.00% | ' |
Series B Preferred Stock [Member] | ' | ' |
Note 8 - Preferred Stock (Details) [Line Items] | ' | ' |
Preferred Stock, Shares Outstanding | 1,000 | 1,000 |
Note_9_Stock_Transactions_Deta
Note 9 - Stock Transactions (Details) (USD $) | 3 Months Ended | 1 Months Ended | 3 Months Ended | |||||||||||
Mar. 31, 2014 | Sep. 30, 2013 | Mar. 31, 2013 | Jan. 31, 2014 | Jan. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | |
Conversion into Stock [Member] | Deferred Salary Forgiven [Member] | Employee Stock Option [Member] | Payment of Liabilities [Member] | Issuance for Services [Member] | Issuance for Cashless Warrant Exercise [Member] | Issuance for Debt Interest [Member] | Issuance for Cash [Member] | Prior Year Common Stock Sale Price Guarantees [Member] | Payment of Debt Interest [Member] | Repayment of Debt [Member] | ||||
Deferred Salary [Member] | Deferred Salary [Member] | |||||||||||||
Executive Officer [Member] | Executive Officer [Member] | |||||||||||||
Note 9 - Stock Transactions (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, Restricted Stock Award, Gross | ' | ' | ' | ' | ' | ' | 1,750,000 | 1,450,000 | ' | 357,142 | 5,500,000 | 2,719,298 | ' | ' |
Stock Issued During Period, Value, Restricted Stock Award, Gross | ' | ' | ' | ' | ' | ' | $75,000 | $43,500 | ' | $10,714 | $110,000 | ' | ' | ' |
Stock Issued During Period, Shares, New Issues | ' | ' | ' | ' | ' | ' | ' | ' | 4,722,365 | ' | ' | ' | 983,859 | 21,567,656 |
Allocated Share-based Compensation Expense | ' | ' | ' | ' | ' | 9,244 | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Value, New Issues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,616 | 285,228 |
Number of Shares of Common Stock Donated by Officers and Senior Management | ' | 20,313,416 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Due to Related Parties | $102,674 | ' | $98,958 | ($668,312) | ($956,762) | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note_10_Stock_Options_and_Warr2
Note 10 - Stock Options and Warrants (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Note 10 - Stock Options and Warrants (Details) [Line Items] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | ' | 600,000 |
Stock Options Issued During Period, Value (in Dollars) | ' | ' | $37,000 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in Dollars per share) | ' | ' | $0.08 |
Stock Options Issued During Period, Maturity Life | ' | ' | '10 years |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 0 | ' | ' |
Stock Options Repriced During Period, Number | ' | 4,185,000,000,000 | ' |
Stock Options Repriced During Period, Exercise Price (in Dollars per share) | ' | $0.10 | ' |
Other Noncash Expense (in Dollars) | ' | 52,000 | ' |
Warrants Repriced During Period, Number | 1,190,625 | ' | ' |
Warrants Issued During Period, Number | 2,838,048 | ' | ' |
4,722,365 | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Exercised | 9,037,230 | ' | ' |
Scenario, Forecast [Member] | Per Quarter [Member] | ' | ' | ' |
Note 10 - Stock Options and Warrants (Details) [Line Items] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | ' | 600,000 | ' |
Scenario, Forecast [Member] | ' | ' | ' |
Note 10 - Stock Options and Warrants (Details) [Line Items] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | ' | 2,400,000 | ' |
Previous Exercise Price [Member] | ' | ' | ' |
Note 10 - Stock Options and Warrants (Details) [Line Items] | ' | ' | ' |
Stock Options Repriced During Period, Exercise Price (in Dollars per share) | ' | $0.15 | ' |
Employee Stock Option [Member] | ' | ' | ' |
Note 10 - Stock Options and Warrants (Details) [Line Items] | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized (in Dollars) | 9,244 | ' | ' |
Share-based Compensation (in Dollars) | 0 | ' | ' |
Prior Year Common Stock Sale Price Guarantees [Member] | ' | ' | ' |
Note 10 - Stock Options and Warrants (Details) [Line Items] | ' | ' | ' |
Warrants Repriced During Period, Number | 625,000 | ' | ' |
Warrants Repriced During Period, Value Assigned (in Dollars) | 10,821 | ' | ' |
The 2013 Debt Agreement [Member] | ' | ' | ' |
Note 10 - Stock Options and Warrants (Details) [Line Items] | ' | ' | ' |
Warrants Repriced During Period, Number | 565,625 | ' | ' |
Warrants Repriced During Period, Value Assigned (in Dollars) | 43,280 | ' | ' |
Warrants Issued During Period, Number | 2,838,051 | ' | ' |
Weighted Average [Member] | ' | ' | ' |
Note 10 - Stock Options and Warrants (Details) [Line Items] | ' | ' | ' |
Stock Options Repriced During Period, Exercise Price (in Dollars per share) | ' | $0.20 | ' |
Note_10_Stock_Options_and_Warr3
Note 10 - Stock Options and Warrants (Details) - Common Stock Options (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Dec. 31, 2013 | |
Common Stock Options [Abstract] | ' | ' |
Balance, December 31, | 9,740,000 | 9,740,000 |
Outstanding weighted-avg. exercise price (in Dollars per share) | $0.14 | $0.13 |
Outstanding weighted-avg. remaining contractual life | '6 years 73 days | '6 years 6 months |
Options issued | 0 | 600,000 |
Options issued (in Dollars per share) | $0 | ' |
Options issued | '0 years | ' |
Options exercised | 0 | ' |
Options exercised (in Dollars per share) | $0 | ' |
Options exercised | 0 | ' |
Options cancelled | 0 | ' |
Options cancelled (in Dollars per share) | $0 | ' |
Options cancelled | '0 years | ' |
Note_10_Stock_Options_and_Warr4
Note 10 - Stock Options and Warrants (Details) - Fair Value of Stock Options and Purchase Warrants Assumptions (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Dec. 31, 2013 | |
Note 10 - Stock Options and Warrants (Details) - Fair Value of Stock Options and Purchase Warrants Assumptions [Line Items] | ' | ' |
Expected dividend yield | 0.00% | 0.00% |
Stock Options and Purchase Warrants [Member] | ' | ' |
Note 10 - Stock Options and Warrants (Details) - Fair Value of Stock Options and Purchase Warrants Assumptions [Line Items] | ' | ' |
Expected dividend yield | 0.00% | 0.00% |
Minimum [Member] | Stock Options and Purchase Warrants [Member] | ' | ' |
Note 10 - Stock Options and Warrants (Details) - Fair Value of Stock Options and Purchase Warrants Assumptions [Line Items] | ' | ' |
Risk free interest rate | 0.67% | 0.51% |
Expected volatility | 43.00% | 34.00% |
Expected term in years | '2 years | '1 year |
Average value per options and warrants (in Dollars per share) | 0.01 | 0.01 |
Minimum [Member] | ' | ' |
Note 10 - Stock Options and Warrants (Details) - Fair Value of Stock Options and Purchase Warrants Assumptions [Line Items] | ' | ' |
Risk free interest rate | 0.10% | 0.10% |
Expected volatility | 121.00% | 87.00% |
Expected term in years | '1 year | '0 years |
Maximum [Member] | Stock Options and Purchase Warrants [Member] | ' | ' |
Note 10 - Stock Options and Warrants (Details) - Fair Value of Stock Options and Purchase Warrants Assumptions [Line Items] | ' | ' |
Risk free interest rate | 1.32% | 1.41% |
Expected volatility | 63.00% | 107.00% |
Expected term in years | '4 years | '5 years |
Average value per options and warrants (in Dollars per share) | 0.02 | 0.06 |
Maximum [Member] | ' | ' |
Note 10 - Stock Options and Warrants (Details) - Fair Value of Stock Options and Purchase Warrants Assumptions [Line Items] | ' | ' |
Risk free interest rate | 0.89% | 1.75% |
Expected volatility | 139.00% | 173.00% |
Expected term in years | '3 years | '3 years |
Note_10_Stock_Options_and_Warr5
Note 10 - Stock Options and Warrants (Details) - Outstanding Vested Warrant Activity (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Dec. 31, 2013 | |
Common Stock Warrants | ' | ' |
Balance, December 31, | 9,898,616 | 16,097,798 |
Warrants outstanding weighted-avg. exercise price | $0.11 | $0.06 |
Warrants weighted-avg. remaining contractual life | '2 years 58 days | '2 years 310 days |
Warrants exercised-cashless | -9,037,230 | ' |
Warrants exercised-cashless | ($0.02) | ' |
Warrants issued | 2,838,048 | ' |
Warrants issued | $0.11 | ' |
Warrants issued | '4 years 58 days | ' |
Re-Priced | 1,190,625 | ' |
Re-Priced | $0.11 | ' |
Canceled Old [Member] | ' | ' |
Common Stock Warrants | ' | ' |
Cancelled b old | -1,190,625 | ' |
Cancelled b old | ($0.02) | ' |
Note_11_Income_Taxes_Details
Note 11 - Income Taxes (Details) (USD $) | Mar. 31, 2014 |
In Millions, unless otherwise specified | |
Note 11 - Income Taxes (Details) [Line Items] | ' |
Operating Loss Carryforwards | $17.90 |
Minimum [Member] | ' |
Note 11 - Income Taxes (Details) [Line Items] | ' |
Percentage that Carry Forwards Will Expire Unused | 50.00% |
Note_11_Income_Taxes_Details_R
Note 11 - Income Taxes (Details) - Reconciliation of Effective Income Tax Rates and Statutory Federal Tax Rates (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Reconciliation of Effective Income Tax Rates and Statutory Federal Tax Rates [Abstract] | ' | ' |
Tax benefit at U.S. statutory rate | 34.00% | 34.00% |
Tax benefit at U.S. statutory rate | $229,566 | $204,047 |
State taxes, net of federal benefit | 4.00% | 4.00% |
State taxes, net of federal benefit | 27,008 | 24,005 |
Change in valuation allowance | -38.00% | -38.00% |
Change in valuation allowance | -256,574 | -228,052 |
0.00% | 0.00% | |
$0 | $0 |
Note_11_Income_Taxes_Details_D
Note 11 - Income Taxes (Details) - Deferred Tax Assets and Liabilities (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Deferred Tax Assets and Liabilities [Abstract] | ' | ' |
Net Operating Loss Carry-forward | $8,229,658 | $7,946,959 |
Deferred Tax Liabilities b Accrued Officersb Salaries | -234,413 | -440,135 |
Net Deferred Tax Assets | 7,995,245 | 7,506,824 |
Valuation Allowance | -7,995,245 | -7,506,824 |
Total Net Deferred Tax Assets | $0 | $0 |
Note_12_Lease_Obligations_Deta
Note 12 - Lease Obligations (Details) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2013 | Jul. 31, 2013 | Sep. 30, 2012 | Jul. 31, 2011 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2009 | |
sqft | sqft | ||||||
Leases, Capital [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Property and Equipment, Amount Acquired Via Capitalized Lease Obligations | $8,408 | ' | $21,310 | ' | ' | ' | $27,401 |
Capitalized Lease Obligations, Average Interest Rate | 15.50% | ' | 12.50% | ' | ' | ' | 18.40% |
Repayments of Long-term Capital Lease Obligations | ' | ' | ' | ' | 1,569 | 1,075 | ' |
Capital Lease Obligations | ' | ' | ' | ' | 25,142 | ' | ' |
Lease Term | ' | '1 year | ' | '1 year | ' | ' | ' |
Area of Real Estate Property (in Square Feet) | ' | ' | ' | 2,000 | 6,000 | ' | ' |
Contracted Annual Lease Rate | ' | 17,304 | ' | ' | ' | ' | ' |
Lease Rate (in Dollars per Square Foot) | ' | 8.65 | ' | ' | ' | ' | ' |
Operating Leases, Rent Expense | ' | ' | ' | ' | $4,326 | $4,452 | ' |
Note_12_Lease_Obligations_Deta1
Note 12 - Lease Obligations (Details) - Future Lease Payments (USD $) | Mar. 31, 2014 |
Future Lease Payments [Abstract] | ' |
2014 | $4,592 |
2015 | 5,801 |
2016 | 6,620 |
2017 | 6,079 |
2018 | 2,050 |
$25,142 |
Note_13_Commitments_and_Contin1
Note 13 - Commitments and Contingencies (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Note 13 - Commitments and Contingencies (Details) [Line Items] | ' |
Employment Agreements, Initial Term of Employment | '3 years |
Automatic Renewing Period of Employment Agreements | '1 year |
Harry Schoell, Chairman and CTO [Member] | ' |
Note 13 - Commitments and Contingencies (Details) [Line Items] | ' |
Employment Agreements, Officer Salary | 150,000 |
Frankie Fruge, COO [Member] | ' |
Note 13 - Commitments and Contingencies (Details) [Line Items] | ' |
Employment Agreements, Officer Salary | 120,000 |
Christopher Nelson, President and General Counsel [Member] | ' |
Note 13 - Commitments and Contingencies (Details) [Line Items] | ' |
Employment Agreements, Officer Salary | 130,000 |
Note_14_Consolidated_Subsidiar1
Note 14 - Consolidated Subsidiaries (Details) (USD $) | 1 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | |||
Share data in Millions, unless otherwise specified | Jul. 31, 2013 | Jul. 13, 2013 | Jul. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Mar. 31, 2014 | Dec. 31, 2012 |
WHE Subsidiary [Member] | WHE Subsidiary [Member] | WHE Subsidiary [Member] | WHE Subsidiary [Member] | WHE Subsidiary [Member] | An Unrelated Investor [Member] | Corporate Officers of the Company [Member] | Cyclone Performance [Member] | Cyclone Performance [Member] | |
Precision CNC LLC [Member] | Board of Directors Chairman [Member] | Board of Directors Chairman [Member] | Cyclone Performance [Member] | Cyclone Performance [Member] | |||||
Note 14 - Consolidated Subsidiaries (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of Ownership in a Consolidated Susidiary | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 5.00% | ' | 5.00% | ' | ' | 5.00% | 5.00% | ' | ' |
Proceeds from Issuance or Sale of Equity | ' | ' | ' | ' | ' | $30,000 | ' | ' | ' |
Cumulative Unallocated Losses to Non-Controlling Interest of Subsidiary | ' | ' | ' | ' | ' | ' | ' | 953 | ' |
Number of Shares of Common Stock Exchanged for Equity in Subsidiary | ' | 5 | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Collateral Amount | ' | 425,000 | ' | ' | ' | ' | ' | ' | ' |
Period of Consulting Services Without Additional Compensation by an Executive | ' | ' | '12 months | ' | ' | ' | ' | ' | ' |
Vesting Period of Interest in Subsidiary Acquired by Noncontrolling Owners | '2 years | ' | ' | ' | ' | ' | ' | ' | ' |
Noncontrolling Interest, Additional Ownership Percentage Could Be Acquired by Noncontrolling Owners | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Equity Method Investment, Summarized Financial Information, Net Income (Loss) | ' | ' | ' | -120,391 | -157,266 | ' | ' | ' | ' |
Equity Method Investment Summarized Financial Information, Equity | ' | ' | ' | $70,914 | ' | ' | ' | ' | ' |
Note_15_Receivables_Deferred_R1
Note 15 - Receivables, Deferred Revenue and Backlog (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
Note 15 - Receivables, Deferred Revenue and Backlog (Details) [Line Items] | ' |
Total Backlog for Prototype Engines (in Dollars) | 440,000 |
Minimum [Member] | ' |
Note 15 - Receivables, Deferred Revenue and Backlog (Details) [Line Items] | ' |
Backlog Orders, Payment Period | '6 months |
Maximum [Member] | ' |
Note 15 - Receivables, Deferred Revenue and Backlog (Details) [Line Items] | ' |
Backlog Orders, Payment Period | '9 months |
Note_16_Derivative_Financial_I2
Note 16 - Derivative Financial Instruments (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Dec. 31, 2013 | |
Note 16 - Derivative Financial Instruments (Details) [Line Items] | ' | ' |
Convertible Debt | $460,800 | $743,250 |
Derivative Liability | 371,025 | 456,681 |
Amortization of Debt Discount (Premium) | 297,929 | ' |
Adjustments to Additional Paid in Capital, Equity Component of Convertible Debt | 291,710 | ' |
Loss on Derivative Instruments, Pretax | 55,158 | ' |
Debt [Member] | ' | ' |
Note 16 - Derivative Financial Instruments (Details) [Line Items] | ' | ' |
Derivative Liability | 569,100 | ' |
Warrant [Member] | ' | ' |
Note 16 - Derivative Financial Instruments (Details) [Line Items] | ' | ' |
Derivative Liability | $50,170 | ' |
Minimum [Member] | ' | ' |
Note 16 - Derivative Financial Instruments (Details) [Line Items] | ' | ' |
Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger | 30.00% | ' |
Maximum [Member] | ' | ' |
Note 16 - Derivative Financial Instruments (Details) [Line Items] | ' | ' |
Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger | 44.00% | ' |
Note_16_Derivative_Financial_I3
Note 16 - Derivative Financial Instruments (Details) - Estimated Fair Values of Liabilities for Derivative Instruments | 3 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Dec. 31, 2013 | |
Note 16 - Derivative Financial Instruments (Details) - Estimated Fair Values of Liabilities for Derivative Instruments [Line Items] | ' | ' |
Dividend Rate | 0.00% | 0.00% |
Minimum [Member] | ' | ' |
Note 16 - Derivative Financial Instruments (Details) - Estimated Fair Values of Liabilities for Derivative Instruments [Line Items] | ' | ' |
Volatility | 121.00% | 87.00% |
Risk Free Rate | 0.10% | 0.10% |
Expected Term (years) | '1 year | '0 years |
Maximum [Member] | ' | ' |
Note 16 - Derivative Financial Instruments (Details) - Estimated Fair Values of Liabilities for Derivative Instruments [Line Items] | ' | ' |
Volatility | 139.00% | 173.00% |
Risk Free Rate | 0.89% | 1.75% |
Expected Term (years) | '3 years | '3 years |
Note_17_Subsequent_Events_Deta
Note 17 - Subsequent Events (Details) (Subsequent Event [Member], USD $) | 1 Months Ended |
Share data in Millions, unless otherwise specified | 15-May-14 |
Common Stock [Member] | ' |
Note 17 - Subsequent Events (Details) [Line Items] | ' |
Stock Issued During Period, Shares, Conversion of Convertible Securities (in Shares) | 29 |
Stock Issued During Period, Value, Conversion of Convertible Securities (in Dollars) | $200,000 |
Four Investment Funds [Member] | ' |
Note 17 - Subsequent Events (Details) [Line Items] | ' |
Convertible Notes Payable (in Dollars) | 141,750 |
One Investment Fund [Member] | ' |
Note 17 - Subsequent Events (Details) [Line Items] | ' |
Notes Payable (in Dollars) | 52,000 |
A Fund [Member] | Promissory Notes [Member] | ' |
Note 17 - Subsequent Events (Details) [Line Items] | ' |
Convertible Notes Payable (in Dollars) | 50,000 |
A Fund [Member] | ' |
Note 17 - Subsequent Events (Details) [Line Items] | ' |
Debt Instrument, Convertible, Conversion Price Discount to Average Market Price | 42.00% |
Debt Instrument, Interest Rate, Stated Percentage | 10.00% |
Debt Instrument, Term | '12 months |
Notes Payable (in Dollars) | 100,000 |
Senior Notes (in Dollars) | $400,000 |
Promissory Notes [Member] | ' |
Note 17 - Subsequent Events (Details) [Line Items] | ' |
Debt Instrument, Term | '12 months |
Minimum [Member] | Four Investment Funds [Member] | ' |
Note 17 - Subsequent Events (Details) [Line Items] | ' |
Debt Instrument, Convertible, Conversion Price Discount to Average Market Price | 30.00% |
Debt Instrument, Interest Rate, Stated Percentage | 8.00% |
Debt Instrument, Term | '12 months |
Minimum [Member] | Promissory Notes [Member] | ' |
Note 17 - Subsequent Events (Details) [Line Items] | ' |
Debt Instrument, Convertible, Conversion Price Discount to Average Market Price | 42.00% |
Debt Instrument, Interest Rate, Stated Percentage | 10.00% |
Maximum [Member] | Four Investment Funds [Member] | ' |
Note 17 - Subsequent Events (Details) [Line Items] | ' |
Debt Instrument, Convertible, Conversion Price Discount to Average Market Price | 45.00% |
Debt Instrument, Interest Rate, Stated Percentage | 12.00% |
Maximum [Member] | Promissory Notes [Member] | ' |
Note 17 - Subsequent Events (Details) [Line Items] | ' |
Debt Instrument, Convertible, Conversion Price Discount to Average Market Price | 45.00% |
Debt Instrument, Interest Rate, Stated Percentage | 12.00% |