Revenue of $272,0000 as Compared to $1.53 Million Last Year
Reports Net Loss of $161,000 as Compared Net Income After Taxes Of $658,000 Last Year
ALGONA, IA / ACCESSWIRE / February 17, 2023 / American Power Group Corporation ("APG") (OTC PINK:APGI) announced the unaudited results for the quarter ended December 31, 2022.
Chuck Coppa, APG's CEO/CFO stated, "Unaudited net sales for the quarter ended December 31, 2022, were approximately $0.27 million as compared to approximately $1.53 million of unaudited net sales for the quarter ended December 31, 2021. The decrease in quarterly revenue is attributable to the shipment of a $1.4 million follow-on order in October 2021 from our lead dealer/installer in the oil/gas fracking market. We are diligently working to close on approximately $4 million of outstanding conversion quotes spread over multiple stationary dealers/installers."
Mr. Coppa added, "Our unaudited net loss from operations was approximately $163,000 for the quarter ended December 31, 2022, as compared to an unaudited net income from operations of approximately $569,000 for the quarter ended December 31, 2021. During the quarter ended December 31, 2022, we reduced our net operating expenses by approximately $103,000 relating to receipt of funds relating to the Employee Retention Tax Credit which is part of the 2020 CARES Act relief program.
Our unaudited net loss after taxes was approximately $161,000 for the quarter ended December 31, 2022, as compared to unaudited net income after taxes for the quarter ended December 31, 2021 of $658,000 which included other income of approximately $158,000 associated with the forgiveness of our Small Business Administration's Paycheck Protection Program loan".
Mr. Coppa added, "We continue to strengthen our balance sheet and in January made the final payment under our original $3.5 million long term loan with Iowa State Bank. We have only $0.73 million of term debt remaining relating to the final payment due under our May 2018 $6.0 million dual fuel Patent and Technology Purchase Agreement. We have funded these efforts through operating cash flow as well as the sale of common stock and will be amending our charter to increase our authorized common shares from 995 million to 1.495 billion in order to provide us the flexibility to take advantage of strategic opportunities as they present themselves as well as complete the purchase of our dual fuel patents".
Matt Van Steenwyk, APG's Chairman noted, "Given the significant opportunity before us, we have made a very concerted effort to increase market awareness and branding of our V6000 dual fuel vehicular solution, while nearly eliminating all term debt other than current operational liabilities. We're ready to aggressively promote our vehicular dual fuel technology which we believe to be the most game changing aspect of our business, especially from a decarbonization perspective. There are approximately 2 million Class 8 diesel trucks operating with the latest OEM emission technology in the U.S. and assuming they run 125,000 miles per year at 6.5 mpg, they will consume an estimated 40 billion gallons of diesel per year. With our APG V6000 dual fuel solution, we can displace 50% of that diesel fuel with natural gas, either fossil or renewable, reducing that annual consumption of diesel by 20 billion gallons annually if implemented across this segment of the Class 8 long-haul market. That's a huge impact to U.S. energy independence.
Mr. Van Steenwyk added, "Assuming an estimated CO2 reduction of 500 metric tons per truck per year utilizing APG's V6000 dual fuel solution and dairy RNG is extended across the long-haul trucking industry, we could potentially mitigate as much as 1 billion tons of carbon per year. Add in renewable diesel, which our dual fuel trucks can utilize and that number gets even bigger. This all done without negatively impacting truck performance, torque or power and providing meaningful net fuel savings to the operator. This is a win, win, win situation for everyone".
About American Power Group Corporation (www.americanpowergroupinc.com)
American Power Group's subsidiary, American Power Group Inc., ("APG"), provides cost-effective alternative fueling solutions for diesel engines to significantly reduce methane criteria pollutants and help accelerate a low-carbon future. APG's Dual Fuel conversion technology is a unique patented hardware and software solution that enables high-horsepower diesel engines to safely displace up to 65% of diesel fuel with natural gas. Engines equipped with APG's Dual Fuel technology can use renewable natural gas (RNG), compressed natural gas (CNG), liquefied natural gas (LNG), captured flare-stack methane and conditioned well-head gas resulting in lower cost, lower carbon, and lower criteria pollutant emissions. Additionally, APG's Dual Fuel conversion technology remains fully compatible with eligible biodiesel blends and renewable diesel fuels further reducing a diesel engine's carbon footprint and provide users with a proven regulatory compliant technology to meet their Environmental, Social and Corporate Governance ("ESG") objectives.
Caution Regarding Forward-Looking Statements and Opinions
The matters described herein contain forward-looking statements and opinions, including, but not limited to, statements relating to outstanding dual fuel conversion quotes for $4 million and our ability to turn these quotes into actual orders. These forward-looking statements and opinions are neither promises nor guarantees but involve risks and uncertainties that may individually or mutually impact the matters herein, and cause actual results, events, and performance to differ materially from such forward-looking statements and opinions. These risk factors include, but are not limited to, the fact that we may not be able to convert the $4 million of quotes into actual orders, the fact our dual fuel conversion business has lost money in prior fiscal years and the risk that we may require additional financing to grow our business, the fact that we rely on third parties to manufacture, distribute and install our products, we may encounter difficulties or delays in developing or introducing new products and keeping them on the market, we may encounter lack of product demand and market acceptance for current and future products, we may encounter adverse events or economic conditions, we operate in a competitive market and may experience pricing and other competitive pressures, we are dependent on governmental regulations with respect to emissions, including whether EPA approval will be obtained for future products and additional applications, the risk that we may not be able to protect our intellectual property rights, factors affecting the Company's future income and resulting ability to utilize its NOLs, the fact that our stock is thinly traded and our stock price may be volatile, and the fact that the exercise of stock options and warrants will cause dilution to our shareholders. Readers are cautioned not to place undue reliance on these forward-looking statements and opinions, which speak only as of the date hereof. Except as required by law, the Company undertakes no obligation to release publicly the result of any revisions to these forward-looking statements and opinions that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Investor Relations Contact:
Chuck Coppa, CEO/CFO
American Power Group Corporation
781-224-2411
ccoppa@apgdualfuel.com
SOURCE: American Power Group Corporation
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