American Power Group reports 2023 mid-year update

Chuck Coppa, APG’s CEO/CFO stated, "While we have made significant progress over the past several years to solidify APG’s financial position, we continue to focus our efforts on increasing market awareness and branding of our V6000 dual fuel vehicular solution. We believe this technology is potentially the most game-changing aspect of our business, especially from a decarbonization perspective. We are currently in discussions with several of the country’s largest natural gas/renewable natural gas (RNG), biodiesel and renewable diesel dispensers regarding potential co-marketing efforts whereby they would market our cost-effective dual fuel solution in addition to dedicated natural gas solutions. Discussions are also underway with two potential new vehicular dealer/installers and we are actively seeking additional companies to join our dealer/installer network. We’ve initiated our next round of EPA/CARB emissions testing to expand our 500+ industry-leading EPA engine family approvals. Given the lack of current natural gas/RNG options for fleets running heavy duty 15L trucks, we are focusing on newer engine platforms in the 2020 to 2022 range starting with Cummins ISX 15L high HP (450+) engine platform given it allows for a much greater market/application coverage. We are also considering a Mx13 PACCAR Class 8 high HP engine as our next new engine family platform, again given market demand. Both our 2014 Freightliner CA125 Cascadia day cab Cummins ISX 15L (450 HP) diesel engine and 2015 Freightliner CC132 Coronado sleeper cab equipped with a 505 HP Detroit Diesel DD15 diesel engine demo trucks have been in high demand with potential customers/partners. Currently, both are being evaluated by a large west coast-based fleet operator who has embraced alternative fuels, including RNG and will be running long haul as well as short haul routes which should provide the maximum overall dual fuel experience. Since October 2022, entities controlled by our Chairman, have provided us with $2.5 million of additional funding which was used to make several of our scheduled patent/technology purchase installment payments, pay off our remaining Iowa State Bank loan in January with the balance used for operations and inventory buildup to support our quotes. Our last $730,500 patent/technology installment payment is due in May and our Chairman has committed to provide those funds, if necessary, allowing us to complete the $5 million purchase of all our dual fuel patents and associated technology."