ALGONA, IA / ACCESSWIRE / August 2, 2022 / American Power Group Corporation ("APG") (OTC PINK:APGI) announced the unaudited results for the three and nine months ended June 30, 2022.
Chuck Coppa, APG's CEO/CFO stated, "Unaudited net revenue for the three and nine months ended June 30, 2022, were approximately $1,082,000 and $2,921,000, respectively as compared to approximately $1,346,000 and $1,937,000, respectively, for the three and nine months ended June 30, 2021. Our penetration into the oil/gas fracking market over the past several years has been the primary revenue driver with over 260 engines converted during this period. The increase in year-to-date revenue is attributable primarily to the shipment of $2.1 million in follow-on orders from our lead dealer/installer during the fiscal 2022. We currently have $3+ million of outstanding stationary conversion quotes spread among several of our dealers/installers."
Mr. Coppa added, "Our unaudited net income after income taxes was approximately $105,000 and $453,000, respectively, for the three and nine months ended June 30, 2022 as compared to a net income after taxes of approximately $249,000 for the three months ended June 30, 2021 and a net loss after taxes of $339,000 for the nine months ended June 30, 2021. The results for the three and nine months ended June 30, 2022 includes approximately $150,000 of non-cash stock option amortization expense.
During the nine months ended June 30, 2022 and 2021, we recognized other income of approximately $158,000 and $154,000, respectively, associated with the forgiveness of our Small Business Administration's Paycheck Protection Program loans. Our ongoing efforts to reduce fixed operating costs as well as reduced long-term debt have positively impacted our net results with our year-to-date interest expense down 55 percent to approximately $135,000 as compared to $303,000 in the prior year-to-date period."
Mr. Coppa concluded, "We continue our efforts to strengthen our balance sheet and have reduced our overall corporate debt over the past 18 months by approximately $6.8 million, including $1.8 million of long-term bank debt and the conversion of approximately $5 million of convertible debt and accrued interest, in the aggregate. The convertible debt and associated interest was converted at $0.25 per share with approximately $2 million of the aggregate total converted on June 30, 2022."
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 improved criteria pollutant emissions. Additionally, APG's Dual Fuel conversion technology remains fully compatible with eligible biodiesel 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 $3+ 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 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 $3+ 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; our reliance on third parties to manufacture, distribute and install our products; difficulties or delays in developing or introducing new products and keeping them on the market; lack of product demand and market acceptance for current or future products; adverse events or economic conditions; pricing and other competitive pressures; dependence 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
SOURCE: American Power Group Corporation