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The demand for lighter, smaller, more efficient, and more powerful engines calls for a rethinking of the traditional internal combustion engine (ICE). This paper describes development progress of LiquidPiston's small rotary engine, the XMv3, which operates on a Spark-Ignited (SI) variant of its patented High Efficiency Hybrid Cycle (HEHC). This thermodynamic cycle, which combines high compression ratio (CR), constant-volume combustion, and overexpansion, has a theoretical efficiency of up to 75 percent using air-standard assumptions and first-law analysis. XMv3 displaces 70cc (23cc per each of three working chambers) and is gasoline fueled. The engine is simple, having only two primary moving parts, which are balanced to prevent vibration. The ‘X’ engine geometry utilized by XMv3 can be considered an inverted ‘Wankel’, retaining the traditional Wankel' rotary advantages of high power density and smooth operation, while also overcoming some of Wankel's inherent performance limitations.