Fiscal 2022 Revenue Increases 32 Percent to $3.5 Million as Compared to $2.7 Million Last Year
Fiscal 2022 Net Income After Taxes of $289,000 as Compared to a $302,000 Net Loss Last Year
ALGONA, IA / ACCESSWIRE / December 12, 2022 / American Power Group Corporation ("APG") (OTC Pink:APGI) announced the unaudited results for the fiscal year ended September 30, 2022.
Chuck Coppa, APG's CEO/CFO stated, "Unaudited net revenue for fiscal year ended September 30, 2022, increased by $848,000 or 32 percent to $3,531,000 as compared to $2,683,000 for the fiscal year ended September 30, 2021. Our gross margin improved to 48 percent as compared to last year's 39 percent primarily due to increased revenue and a $130,000 reduction in non-cash capitalized software amortization during fiscal 2022. Our penetration into the oil/gas fracking market over the past several years has been the primary revenue driver with the fiscal 2022 revenue increase attributable to follow-on orders from our lead dealer/installer. We currently have $4+ million of outstanding stationary conversion quotes spread among several of our dealers/installers."
Mr. Coppa added, "Our unaudited net income after income taxes was $289,000 for the fiscal year ended September 30, 2022 as compared to an unaudited net loss after taxes of $302,000 for the fiscal year ended September 30, 2021. The results for fiscal year ended September 30, 2022 and 2021, include other income of $158,000 and $154,000, respectively, associated with the forgiveness of our Small Business Administration's Paycheck Protection Program loans."
Mr. Coppa concluded, "We continue our efforts to strengthen our balance sheet and have reduced our overall corporate debt over the past 24 months by approximately $6.7 million, including $2.0 million of long-term debt and the conversion of approximately $4.7 million of convertible debt and accrued interest, in the aggregate, at $0.25 per share. We anticipate filing our Fiscal 2022 Annual Report with the OTC Markets prior to the end of December 2022 and do not anticipate any material changes in our results as noted above."
Matt Van Steenwyk, APG's Chairman noted, "While we have made significant progress over the past several years to solidify APG's financial position, this past year's efforts have been focused on increasing market awareness and branding of our V6000 dual fuel vehicular solution which we believe to potentially 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 they will consume an estimated 40 billion gallons of diesel per year. With our APG V6000 dual fuel solution operating at a minimum 50% displacement rate, we could reduce that annual consumption of diesel by 20 billion gallons annually if implemented across this segment of the Class 8 long-haul market. In addition, assuming an estimated CO2 reduction of 500 metric tons per truck per year utilizing APG's V6000 dual fuel solution and dairy RNG, the potential positive impact on the environment would be in the range of 1 billion metric tons of CO2 reduction per year in addition to meaningful net fuel savings to the operator. This is a powerful message in today's environment that we are taking to the market".
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
SOURCE: American Power Group Corporation