On April 8, 2003, at 1545 central daylight time, a CarterCopter prototype gyrocraft, N121CC, owned and operated by CarterCopter LLC, of Wichita Falls, Texas, sustained substantial damage during a wheels-up landing at the Olney Municipal Airport (ONY) near Olney, Texas. The private pilot and the flight test engineer were not injured. The research and development flight was operated under Code of Federal Regulations Part 91. Visual meteorological conditions prevailed, and a flight plan was not filed. The local flight originated from ONY at 1530. The pilot reported in the Pilot/Operator Aircraft Accident Report (NTSB Form 6120.1/2) that while landing on runway 35 he was distracted by a twin-engine airplane taxiing on the runway and "forgot" to extend the landing gear prior to landing. The flight test engineer reported in the Passenger Statement Report (NTSB Form 6120.9) that the chase ground crew alerted the pilot that the landing gear was not extended. Subsequently, the pilot attempted to go around by applying full power; however, the gyrocraft impacted the runway surface. Examination of the gyrocraft by the operator revealed that the tail boom was partially separated from the fuselage and the top of the right rudder was separated. Additionally, the propeller was damaged. The gyrocraft, which was built from composite materials, was powered by a 350-cubic inch automotive engine, had accumulated over 360 hours. The pilot in command accumulated over 2,000 hours of flight time, 1,400 hours of rotorcraft, and 80 hours in the make/model of the gyrocraft. The airport manager at the Olney Airport reported at the time of the accident, the winds were from the north at about 12 knots.