I know why, and I'll bet you do too.
It is entirely possible to generate 300 watts _peak power_ or even a lot more, given only 24 VDC at 500 mA input. However this peak power will only last for a very short time, and the _average power_ will be much lower... and cannot exceed the input power, minus losses.
The OP's device is an oscillator that provides pulses to the big coil. The oscillator may be self-triggered by voltage induced by the magnet on the fan shaft rotating, or it may be clocked by an R-C or other timing circuit, or even by a Hall effect sensor reading the magnetic field of the rotating magnet. These pulses provide an oscillating or pulsed magnetic field that powers the fan shaft, by alternately attracting and/or repelling the large permanent magnet attached to the shaft. Incidentally the alternating field produced by this magnet rotating induces a voltage in the smaller coil which is flashing the small LED. This sub-circuit consists only of the smaller coil and the small LED, and is clearly dissipating only microwatts of power. When the pulses that are being supplied to the bigger coil shut off, the coil's inductive discharge spike is charging a capacitor (through a diode bridge) to the higher voltage that is indicated on the meter. When the energy in the capacitor builds up to a sufficient value, the bigger LED bulb's internal power supply can briefly turn on and flash the LEDs in that bulb. This of course discharges the capacitor somewhat, and the process repeats. It is this inductive spike that is confusing the panel meter into reporting "1", which is its out-of-range or overload indication. An oscilloscope, properly connected, would easily reveal the truth of the matter.
And the fan is only dissipating a few hundred mW if that much, as a simple "control experiment" test with a small DC motor and a battery power supply would reveal (using the right kind of DMMs properly deployed of course.) SO the real story is that the power supply is providing 12 Watts (if the input power can be believed) and the "loads" : turning fan, small flashing LED, big LED bulb flashing -- are only dissipating a small fraction of that input power. The rest is going into heating the big coil and the switching components in the no doubt very inefficient pulser circuit, with a small amount being radiated as RF.
There is nothing "overunity" about this setup at all. And you can have that much for free.
(but somebody owes me a cheezburger.....)
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