Thought I'd share a bit of an email I rec'd from the company the other day:
" As discussed, in September 2011 we signed a distribution agreement with Wesfarmers LNG Pty Ltd (“Wesfarmers LNG”), a subsidiary of Wesfarmers Kleenheat Gas Pty Ltd (“Kleenheat Gas”), to exclusively market, sell and distribute APG’s V5000HD Aftermarket Dual Fuel System to the heavy-duty on-road, and off-road diesel engine truck industry in Australia. This agreement was the result of successfully completeing test trial with Wesfarmers (ran against and beat a dedicated engine and invasive, fuel injected dual fuel conversion product) for the conversion of two 500+ horsepower heavy-duty diesel trucks to APG’s patented Dual Fuel System. These engines have over 800,000 miles on them and are averaging north of 60% displacement.
Kleenheat Gas extracts, distributes and markets liquefied petroleum gas and is a leading provider of gas services to residential, commercial, industrial, rural, and automotive markets across Australia. Through its subsidiary, Wesfarmers LNG and its EVOL LNG brand, it is the leading provider of liquid natural gas to the heavy-duty vehicle and remote power generation markets in Australia. Kleenheat Gas is part of Wesfarmers Chemicals, Energy & Fertilisers which is a division of the diversified conglomerate Wesfarmers Limited. Wesfarmers Limited (ASX:WES) is one of Australia’s largest publicly listed companies achieving over $54 billion (AUD) in annual revenue and employing around 200,000 employees in Australia and New Zealand.
Attached for your information and entertainment is what I think is a great You Tube video marketing piece being used by EVOL which explains how the APG Dual Fuel System works."
I for one can't begin to understand what you've noted here but the fact is that "THEY' ARE DOING IT and HAVE BEEN DOING IT" for 3yrs+ with some pretty substantial customers who have hopefully generated $7M of revenue this year. I'd say proof of concept has happened..wouldn't you? You talk about investments..look at Westport who has taken the start from scratch dedicated approach and have lost $100M on a little over $100M in revenue this year (9mo) and have invested over $500M in cumulative losses associated with the dedicated approach. Analysts I read say breakeven is somewhere north of $400M in revenue as compared to APGC's professed $8.5M $$flow b/e (last 2 qtrs seem to substantiate it) and $14-$15M bottom line profitabilty. Again, I'm not smart enough to understand all the science but again, they are doing it and people apparently are happy with it and willing to pay for it.
They do have patent protection, read their SEC filings. In addition, based on a conversation I had about a year ago with their CFO, their latest V5000 version has one of/if not the most advanced software mapping solutions out there to monitor/maintain their dual fuel. Always a risk that a larger better financed company can squash a startup but they must have something pretty unique here given that WheelTime picked them over everyone else to endorse and move forward. $2.6M to $7M is some pretty nice early stage growth to me.
At the Aug Q3 call they provided guidance of $7Mish for their Sept 30th yearend,up from $2.6M last year. Didn't note next earning report but historically its been in mid December. As it relates to your other question, seems like they do via their WheelTime Network relationship (check out the 3 or 4 related press releases on the APGI site) and their 180+ locations throughout the US and Canada and the multi-thousand service bays and techs,etc. Back in May they said all 18 members signed up to be dealers and at the Aug conference call they said pretty much all have been thru sales training with mutiple members doing installs. The $800K glider truck order back in Sept was via a WheelTime member so it seems like it's starting to work. I've called their CFO several times on questions and have had good luck reaching him so you may want to try that also. Been in this for over 10 yrs but really think they finally have something with huge potential here. Good luck.