AMERICAN POWER GROUP Corp

CIK:0000932699|SEC Filings

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Net sales	$ 381,522	$ 524,194	$ 1,928,311	$ 1,627,370
Cost of sales	717,752	706,017	2,409,966	2,416,800
Gross loss	(336,230)	(181,823)	(481,655)	(789,430)
Operating expenses:
Selling, general and administrative	1,491,532	1,191,915	3,851,452	3,182,949
Impairment loss	2,819,321		2,819,321
Operating loss from continuing operations	(4,647,083)	(1,373,738)	(7,152,428)	(3,972,379)
Non operating income (expense)
Interest and financing costs	(330,380)	(223,608)	(884,977)	(608,367)
Interest - discount on contingent convertible promissory notes - warrants				(906,874)
Interest - discount on contingent convertible promissory notes - beneficial conversion feature				(649,813)
Interest income	33,319	33,248	100,009	112,061
Revaluation of warrants	5,156	5,890	36,952	207,211
Other, net	1,245	105,512	20,843	13,400
Non operating expense, net	(290,660)	(78,958)	(727,173)	(1,832,382)
Net loss	(4,937,743)	(1,452,696)	(7,879,601)	(5,804,761)
Series D, Convertible Preferred stock beneficial conversion feature		(293,746)		(1,550,924)
Net loss available to Common stockholders	$ (5,273,695)	$ (2,086,042)	$ (8,905,291)	$ (8,314,813)
Net loss per share - basic and diluted	$ (0.06)	$ (0.02)	$ (0.10)	$ (0.10)
Net loss per Common Share - 10% Preferred dividend	(0.01)	(0.01)	(0.02)	(0.01)
Net loss per Common Share - Series D Convertible Preferred Stock beneficial conversion feature				(0.03)
Net loss attributable to Common stockholders per share - basic and diluted	$ (0.07)	$ (0.03)	$ (0.12)	$ (0.14)
Weighted average shares outstanding:
Basic and diluted	79,717,184	60,125,301	76,630,988	57,689,136
10% Convertible Preferred Stock [Member]
Non operating income (expense)
10% Convertible Preferred dividends	$ (335,952)	$ (339,600)	$ (1,025,690)	$ (959,128)

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash flows from operating activities:
Net loss	$ (7,879,601)	$ (5,804,761)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Revaluation of warrants	(36,952)	(207,211)
Interest - discount on contingent convertible promissory notes - warrants		906,874
Interest - discount on contingent convertible promissory notes - beneficial conversion feature		649,813
Impairment of property and equipment	2,576,821
Impairment of long term contract	242,500
Inventory valuation allowance	89,817	23,796
Shares issued in lieu of wages		46,527
Shares issued in lieu of expenses	65,000
Value of warrants terminated	(24,108)
Loss on disposal of equipment	11,625	11,004
Depreciation expense	292,016	297,820
Amortization of warrants issued for services	5,447	6,180
Amortization of debt discount, bank	81,564
Amortization of debt discount, related party note	106,972
Amortization of deferred financing costs	150,396	35,811
Stock compensation expense	83,363	130,710
Provision for bad debts	140,257	56,696
Amortization of software costs	549,699	544,727
Amortization of long term contracts	60,000	60,000
Amortization of purchased technology	37,500	37,500
Increase in assets:
Accounts receivable	33,490	465,009
Inventory	(45,343)	11,375
Prepaid and other current assets	102,039	(48,037)
Other assets	(32,802)	(32,923)
Decrease in liabilities:
Accounts payable	189,376	(594,395)
Accrued expenses	249,188	828,022
Net cash used in operating activities	(2,951,736)	(2,575,463)
Cash flows from investing activities:
Proceeds from sale of property and equipment	450	38,000
Note receivable, related party		50,000
Purchase of property and equipment	(8,560)	(181,742)
Software development costs	(109,675)	(187,241)
Net cash used in investing activities	(117,785)	(280,983)
Cash flows from financing activities:
Proceeds from sales of Series D Convertible Preferred stock, net of fees		2,150,597
Proceeds from line of credit	335,000	200,000
Repayment of notes payable	(214,514)	(519,602)
Proceeds from convertible notes payable, related party	2,950,000
Proceeds from notes payable, related party		1,140,000
Repayment of notes payable, related party		(56,937)
Net cash provided by financing activities	3,070,486	2,914,058
Net increase in cash and cash equivalents	965	57,612
Cash and cash equivalents at beginning of year	211,201	67,162
Cash and cash equivalents at end of period	212,166	124,774
Supplemental disclosure of cash flow information:
Interest paid	115,338	468,482
Supplemental disclosure of non-cash investing and financing activities:
Contingent convertible promissory notes and accrued interest converted into Series C Convertible Preferred Stock		2,569,515
Warrants issued for forbearance	371,961
Shares issued for preferred stock dividend	140,748	231,331
Equipment received in lieu of payment on note receivable		190,000
Shares issued for principal and interest on related party note		169,379
Dividends included in accrued expenses	667,322	107,127
Capitalized interest included in construction in progress		68,480
Insurance premiums financed with short-term debt	98,563	97,547
Warrants issued	17,175	38,912
Fixed assets included in accounts payable		30,085
Software development costs included in accounts payable	$ 700	$ 13,300

Consolidated Balance Sheets - USD ($)	Jun. 30, 2017	Sep. 30, 2016
Current assets:
Cash and cash equivalents	$ 212,166	$ 211,201
Accounts receivable, trade, less allowance for doubtful accounts of $140,955 and $698 as of June 30, 2017 and September 30, 2016, respectively	229,361	403,108
Inventory	463,771	508,245
Note receivable, related party	497,190	497,190
Prepaid expenses and other	278,036	269,784
Total current assets	1,680,524	1,889,528
Property, plant and equipment, net	86,085	3,790,365
Other assets:
Seller's note, related party, non-current	797,387	797,387
Long term contracts and purchased technology, net	208,334	548,334
Software development costs, net	1,921,404	2,503,102
Assets held for sale	831,928
Other	297,236	264,434
Total other assets	4,056,289	4,113,257
Total assets	5,822,898	9,793,150
Current liabilities:
Accounts payable	539,308	491,607
Accrued expenses	2,364,641	1,496,879
Notes payable, current, net of discount and financing fees	648,420	104,925
Notes payable, related parties, current, net of discount and financing fees		744,614
Convertible notes payable, related parties	3,000,000
Obligations due under lease settlement, current	181,704	181,704
Total current liabilities	6,734,073	3,019,729
Notes payable, net of current portion and net of debt discount and financing fees	2,049,988	2,153,413
Notes payable, related parties, net of current portion and net of debt discount and financing fees	3,181,933	2,741,368
Warrant liability	333	37,285
Obligations due under lease settlement, non-current	119,504	211,504
Total liabilities	12,085,831	8,163,299
Stockholders' (deficit) equity:
Preferred stock, $1.00 par value, 998,654 shares authorized, 0 shares issued and outstanding
Common stock, $.01 par value, 350 million shares authorized, 79,890,423 shares and 75,055,296 issued and outstanding at June 30, 2017 and September 30, 2016	798,904	750,553
Additional paid-in capital	75,528,305	74,564,138
Accumulated deficit	(82,591,547)	(73,686,256)
Total stockholders' (deficit) equity	(6,262,933)	1,629,851
Total liabilities and stockholders' (deficit) equity	5,822,898	9,793,150
10% Convertible Preferred Stock [Member]
Stockholders' (deficit) equity:
Preferred stock, $1.00 par value, 998,654 shares authorized, 0 shares issued and outstanding	729	740
Series C Convertible Preferred Stock [Member]
Stockholders' (deficit) equity:
Preferred stock, $1.00 par value, 998,654 shares authorized, 0 shares issued and outstanding	52	52
Series D Convertible Preferred Stock [Member]
Stockholders' (deficit) equity:
Preferred stock, $1.00 par value, 998,654 shares authorized, 0 shares issued and outstanding	22	22
Series D-2 Convertible Preferred Stock [Member]
Stockholders' (deficit) equity:
Preferred stock, $1.00 par value, 998,654 shares authorized, 0 shares issued and outstanding	397	397
Series D-3 Convertible Preferred Stock [Member]
Stockholders' (deficit) equity:
Preferred stock, $1.00 par value, 998,654 shares authorized, 0 shares issued and outstanding	$ 205	$ 205