American Power 10-Q 14 Aug 14 2014 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Jun. 30, 2014	Aug. 13, 2014
Document and Entity Information [Abstract]	'	'
Entity Registrant Name	'AMERICAN POWER GROUP CORP	'
Entity Central Index Key	'0000932699	'
Current Fiscal Year End Date	'--09-30	'
Entity Filer Category	'Smaller Reporting Company	'
Document Type	'10-Q	'
Document Period End Date	30-Jun-14	'
Entity Current Reporting Status	'Yes	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q3	'
Amendment Flag	'false	'
Entity Common Stock, Shares Outstanding	'	50,544,573

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Jun. 30, 2014	Sep. 30, 2013
Current assets:	'	'
Cash and cash equivalents	$1,237,854	$1,684,169
Certificates of deposit, restricted	300,000	300,000
Accounts receivable, trade, less allowance for doubtful accounts of $80,589 and $120,393 as of June 30, 2014 and September 30, 2013, respectively	1,672,840	1,612,280
Inventory	770,355	908,059
Prepaid expenses	170,989	150,816
Other current assets	40,185	48,472
Assets related to discontinued operations	0	66,922
Total current assets	4,192,223	4,770,718
Property, plant and equipment, net	784,248	929,821
Other assets:	'	'
Seller’s note, related party	797,387	797,387
Long term contracts, net	254,167	291,667
Purchased technology, net	254,167	291,667
Software development costs, net	3,135,333	3,180,804
Other	165,547	134,469
Total other assets	4,606,601	4,695,994
Total assets	9,583,072	10,396,533
Current liabilities:	'	'
Accounts payable	974,502	1,086,347
Accrued expenses	1,029,718	914,023
Billings in excess of cost	0	7,533
Notes payable, current	2,610,291	106,972
Notes payable, related parties	443,500	473,500
Obligations due under lease settlement, current	68,518	68,518
Total current liabilities	5,126,529	2,656,893
Notes payable, non-current	43,914	1,490,160
Obligations due under lease settlement, non-current	505,540	505,540
Total liabilities	5,675,983	4,652,593
Stockholders' equity (deficit):	'	'
Preferred stock, $1.00 par value, 998,854 shares authorized, 0 shares issued and outstanding	0	0
10% Convertible Preferred stock, $1.00 par value, 1,146 shares authorized, 941 shares and 942 shares issued and outstanding at June 30, 2014 and September 30, 2013	941	942
Common stock, $.01 par value, 150 million shares authorized, 50,515,805 shares and 48,375,316 shares issued and outstanding at June 30, 2014 and September 30, 2013	505,159	483,753
Additional paid-in capital	66,938,230	66,570,909
Accumulated deficit	-63,537,241	-61,311,664
Total stockholders’ equity (deficit)	3,907,089	5,743,940
Total liabilities and stockholders' equity (deficit)	$9,583,072	$10,396,533

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parenthetical) (USD $)	Jun. 30, 2014	Sep. 30, 2013
Statement of Financial Position [Abstract]	'	'
Accounts receivable, trade, allowance for doubtful accounts (in dollars)	$80,589	$120,393
Preferred stock, par value (in dollars per share)	$1	$1
Preferred stock, shares authorized	998,854	998,854
10% Convertible preferred stock, par value (in dollars per share)	$1	$1
10% Convertible preferred stock, shares authorized	1,146	1,146
10% Convertible preferred stock, shares issued	941	942
10% Convertible preferred stock, shares outstanding	941	942
Common stock, par value (in dollars per share)	$0.01	$0.01
Common stock, shares authorized	150,000,000	150,000,000
Common stock, shares issued	50,515,805	48,375,316
Common stock, shares outstanding	50,515,805	48,375,316

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Operations (USD $)	3 Months Ended		9 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Income Statement [Abstract]	'	'	'	'
Net sales	$1,782,269	$2,151,454	$4,883,279	$4,878,568
Cost of sales	1,267,322	1,141,250	3,119,749	2,851,461
Gross profit	514,947	1,010,204	1,763,530	2,027,107
Operating expenses:	'	'	'	'
Selling, general and administrative	1,133,522	1,086,918	3,057,613	3,235,543
Operating loss from continuing operations	-618,575	-76,714	-1,294,083	-1,208,436
Non operating income (expense)	'	'	'	'
Interest and financing costs	-48,444	-39,462	-139,448	-126,831
Interest income	11,026	11,579	33,321	35,094
Other, net	-27,669	-35,136	-102,552	-89,856
Non operating expense, net	-65,087	-63,019	-208,679	-181,593
Net loss	-683,662	-139,733	-1,502,762	-1,390,029
10% Convertible Preferred dividends	-242,329	-244,464	-722,815	-644,560
Net loss available to Common stockholders	($925,991)	($384,197)	($2,225,577)	($2,034,589)
Loss from continuing operations per share – basic and diluted	($0.01)	$0	($0.03)	($0.03)
Net loss per Common share - 10% Preferred dividend	($0.01)	($0.01)	($0.02)	($0.01)
Net loss attributable to Common stockholders per share – basic and diluted	($0.02)	($0.01)	($0.05)	($0.04)
Weighted average shares outstanding - basic and diluted	50,364,666	46,869,240	49,268,170,000	46,269,996,000

Condensed_Consolidated_Stateme1

Condensed Consolidated Statement of Changes in Stockholders' Equity (Deficit) (USD $)	Total	Preferred Stock [Member]	Common Stock [Member]	Additional Paid In Capital	Accumulated Deficit
Balance at Sep. 30, 2013	$5,743,940	$942	$483,753	$66,570,909	($61,311,664)
Balance (in shares) at Sep. 30, 2013	'	942	48,375,316	'	'
Increase (Decrease) in Stockholders' Equity	'	'	'	'	'
Compensation expense associated with stock options	60,117	'	'	60,117	'
Common stock issued upon warrant exercise	54,967	'	17,734	37,233	'
Common stock issued upon option and warrant exercise	'	'	1,773,364	'	'
Common stock issued upon Preferred stock conversion	0	-1	-89	-88	'
Common stock issued upon Preferred stock conversion (in shares)	'	-1	-8,870	'	'
Additional fees related to issuance of 10% Convertible Preferred Stock	-27,665	'	'	-27,665	'
Common stock issued for 10% Convertible Preferred stock dividend	'	'	3,583	297,724	-301,307
Common stock issued for 10% Convertible Preferred stock dividend (in shares)	'	'	358,255	'	'
10% Convertible Preferred stock dividend paid in cash	-421,508	'	'	'	-421,508
Net loss for the nine months ended June 30, 2014	-1,502,762	'	'	'	-1,502,762
Balance at Jun. 30, 2014	$3,907,089	$941	$505,159	$66,938,230	($63,537,241)
Balance (in shares) at Jun. 30, 2014	'	941	50,515,805	'	'

Condensed_Consolidated_Stateme2

Condensed Consolidated Statements of Cash Flows (USD $)	9 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Cash flows from operating activities:	'	'
Net loss	($1,502,762)	($1,390,029)
Adjustments to reconcile net income to net cash used in operating activities:	'	'
Shares issued for services rendered	0	424,549
(Gain) loss on disposal of property and equipment	-12,743	682
Depreciation expense	250,755	189,860
Amortization of deferred financing costs	10,244	0
Stock compensation expense	60,117	97,396
Provision for bad debts	20,839	0
Amortization of software costs	338,785	167,307
Amortization of long term contracts	37,500	37,499
Amortization of purchased technology	37,500	37,499
(Increase) decrease in assets:	'	'
Accounts receivable	-56,999	-593,064
Inventory	137,704	-398,323
Costs in excess of billings	0	30,411
Prepaid and other current assets	-12,130	-126,328
Other assets	-31,078	-900
Assets related to discontinued operations	66,922	0
(Decrease) increase in liabilities:	'	'
Accounts payable	-144,065	-238,275
Billings in excess of costs	-7,533	0
Accrued expenses	105,695	57,913
Net cash used in operating activities	-701,249	-1,703,803
Cash flows from investing activities:	'	'
Purchase of property and equipment	-111,632	-824,499
Software development costs	-266,301	-1,407,377
Net cash used in investing activities	-377,933	-2,231,876
Cash flows from financing activities:	'	'
Proceeds from notes payable	1,220,860	179,945
Repayment of notes payable	-163,787	-619,250
Repayments of Related Party Debt	-30,000	0
Proceeds from sale of 10% Convertible Preferred stock, net of fees	0	2,646,279
Proceeds from exercise of stock options	54,967	22,979
Payment made for fees related to 10% Convertible Preferred stock	-27,665	0
Payment of cash dividend on 10% Convertible Preferred stock	-421,508	-281,735
Net cash provided by financing activities	632,867	1,948,218
Net decrease in cash and cash equivalents	-446,315	-1,987,461
Cash and cash equivalents at beginning of year	1,684,169	4,423,485
Cash and cash equivalents at end of period	1,237,854	2,436,024
Supplemental cash flow information:	'	'
Interest paid	118,899	130,491
Taxes paid	0	2,248
Shares issued for preferred stock dividend	301,307	362,825
Software development costs included in accounts payable and accrued expenses	27,013	520,047
Property and equipment included in accounts payable	5,207	0
Inventory transferred to equipment and capitalized software	$0	$5,093

Nature_of_Operations_Risks_and

Nature of Operations, Risks, and Uncertainties	9 Months Ended
	Jun. 30, 2014
Nature of Operations, Risks, and Uncertainties Disclosure [Abstract]	'
Nature of Operations, Risks, and Uncertainties	'
	Nature of Operations, Risks, and Uncertainties
	Effective August 1, 2012, GreenMan Technologies, Inc. (the “Company”) changed its name to American Power Group Corporation ("APG"). In connection with the corporate name change, the Company’s stock trading symbol on the OTCQB has changed from “GMTI” to “APGI”. APG (together with its subsidiaries “we”, “us” or “our”) was originally founded in 1992 and has operated as a Delaware corporation since 1995.
	Recent Developments
	In April 2014, we notified M&R Development, LLC, our Iowa landlord, of our intent to exercise our option to renew our existing lease for an additional 2 year term through May 2017. In December 2013, Iowa State Bank agreed to extend the maturity of our $2.25 million credit facility from December 31, 2013 to April 1, 2015, increase our borrowing limit to $2.5 million and expand our collateral base to include certain fixed assets which will provide more working capital availability under the credit facility.
	Nature of Operations, Risks, and Uncertainties
	Our patented dual fuel conversion system is a unique external fuel delivery enhancement system that converts existing diesel engines into more efficient and environmentally friendly engines that have the flexibility, depending on the circumstances, to run on:
	•	Diesel fuel and compressed natural gas (CNG) or liquefied natural gas (LNG);
	•	Diesel fuel and pipeline gas, well-head gas or approved bio-methane; or
	•	100% diesel fuel.
	Our proprietary technology seamlessly displaces up to 75% (average displacement ranges from 40% to 65%) of the normal diesel fuel consumption with various forms of natural gas. Installation requires no engine modification, unlike the more expensive fuel injected alternative fuel systems in the market.
	By displacing highly polluting and expensive diesel fuel with inexpensive, abundant and cleaner burning natural gas, a user can:
	•	Reduce fuel and operating costs by 15% to 35%;
	•	Reduce toxic emissions such as nitrogen oxide (NOX), carbon monoxide (CO) and fine particulate emissions; and
	•	Enhance the engine’s operating life, since natural gas is a cleaner burning fuel source.
	Primary end market applications include both primary and back-up diesel generators as well as heavy-duty vehicular diesel engines.
	As of June 30, 2014, we had $1,537,854 cash, cash equivalents and restricted certificates of deposit and working capital deficiency of $934,306. As of June 30, 2014, we had drawn down on the maximum under our $2.5 million credit facility with Iowa State Bank and no additional funds were available to us under that line of credit. Subsequent to June 30, 2014, we repaid Iowa State Bank $550,000 of the outstanding balance and as of August 14, 2014, we have a maximum borrowing availability of $235,000, subject to adequate collateral. The credit facility with Iowa State Bank matures on April 1, 2015.
	Based on our fiscal 2014 operating budget, cash on hand at June 30, 2014, anticipated availability under our bank working capital line and the successful renewal of our credit facility beyond April 1, 2015, we believe we will be able to satisfy our cash requirements through at least the second quarter of calendar 2015 without the need to materially modify our operating plan. We are currently in discussions with Iowa State Bank regarding potential revisions to our credit facility to extend the term as well as gain access to additional availability. We are also evaluating other financing alternatives should we determine the need to supplement existing cash flows from operations in order to fund operations or accelerate certain revenue related initiatives. We understand our continued existence is dependent on our ability to generate positive operating cash flow, achieve profitability on a sustained basis and generate improved performance. If we are unable to achieve and sustain profitability and we are unable to obtain additional financing to supplement our cash position, our ability to maintain our current level of operations could be materially and adversely affected. There is no guarantee we will be able to restructure our credit facility, obtain other financing, or achieve profitability.

Basis_of_Presentation_Basis_of

Basis of Presentation Basis of Presentation	9 Months Ended
	Jun. 30, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
Business Description and Basis of Presentation [Text Block]	'
	Basis of Presentation
	The consolidated financial statements include the accounts of APG and our wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation.
	The accompanying interim financial statements at June 30, 2014 are unaudited and should be read in conjunction with the financial statements and notes thereto for the year ended September 30, 2013 included in our Annual Report on Form 10-K. The balance sheet at September 30, 2013 has been derived from the audited financial statements as of that date; certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to the Securities and Exchange Commission rules and regulations, although we believe the disclosures which have been made herein are adequate to ensure that the information presented is not misleading. The results of operations for the interim periods reported are not necessarily indicative of those that may be reported for a full year. In our opinion, all adjustments which are necessary for a fair statement of our financial position as of June 30, 2014 and the operating results for the interim periods ended June 30, 2014 and 2013 have been included.

Certificates_of_Deposit

Certificates of Deposit	9 Months Ended
	Jun. 30, 2014
Certificates of Deposit [Abstract]	'
Certificates of Deposit	'
	Certificates of Deposit
	All certificate of deposit investments have an original maturity of more than three months but less than three years and are stated at original purchase price which approximates fair value. As of June 30, 2014 and September 30, 2013, we have pledged a $300,000 certificate of deposit as collateral for outstanding loans with Iowa State Bank.

Receivables

Receivables	9 Months Ended
	Jun. 30, 2014
Receivables [Abstract]	'
Receivables	'
	Receivables
	Accounts Receivable
	Accounts receivable are carried at original invoice amount less an estimate made for doubtful accounts. Management determines the allowance for doubtful accounts by regularly evaluating past due individual customer receivables and considering a customer’s financial condition, credit history, and the current economic conditions. Individual accounts receivable are written off when deemed uncollectible, with any future recoveries recorded as income when received.
	Seller’s Note Receivable, Related Party
	In conjunction with the July 2009 acquisition of substantially all the American Power Group operating assets, including the name American Power Group (excluding its dual fuel patent), we acquired a promissory note from the previous owners of American Power Group (renamed M&R Development, Inc.), payable to us, in the principal amount of $797,387. The note bears interest at the rate of 5.5% per annum and was based on the difference between the assets acquired and the consideration given.
	In conjunction with our 10% Convertible Preferred Stock financing in April 2012, we amended the note to increase the amount of royalties payable under a technology license (see Note 6) that can be applied to the outstanding principal and interest payments to 50% and defer all interest and principal payments due under the note during calendar 2012 and 2013. Thereafter, the aggregate principal amount due under the note was to be paid in eight equal quarterly payments plus interest. In addition, M&R will not be required to make any payments under the note until such time as we begin to make royalty payments and then, those payments will be limited to a maximum of 50% of any royalty payment due M&R on a quarterly basis. No payments have been made under the amended note as of June 30, 2014. We have classified 100% of the balance as long term. We consider this a related party note as one of the former owners of American Power Group is now an employee of ours.

Inventory

Inventory	9 Months Ended
	Jun. 30, 2014
Inventory Disclosure [Abstract]	'
Inventory	'
	Inventory
	Raw material inventory primarily consists of dual fuel conversion components. Work in progress includes materials, labor and direct overhead associated with incomplete dual fuel conversion projects. As of June 30, 2014 and September 30, 2013, we recorded an inventory valuation allowance of $42,206 and $44,073, respectively.
	All inventory is valued at the lower of cost or market on the first-in first-out (FIFO) method. Inventory consists of the following:
		June 30,		September 30,
		2014		2013
	Raw materials	$	757,104	$	895,905
	Work in progress	12,125		11,423
	Finished goods	1,126		731
	Total inventory	$	770,355	$	908,059

Intangible_Assets

Intangible Assets	9 Months Ended
	Jun. 30, 2014
Goodwill and Intangible Assets Disclosure [Abstract]	'
Intangible Assets	'
	6. Intangible Assets
	We review intangibles for impairment annually, or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of our intangible assets below their carrying value.
	In conjunction with the American Power Group acquisition and license agreement, we recorded intangible assets of $500,000 associated with the execution of a long term technology license agreement and $500,000 associated with the purchase of the dual fuel conversion technology. Both values are being amortized on a straight line basis over an estimated useful life of 120 months. Amortization expenses associated with the long term technology license agreement and the purchased dual fuel conversion technology amounted to $25,000 and $75,000 for the three months and nine months ended June 30, 2014 and 2013, respectively. Accumulated amortization was $491,666 at June 30, 2014 and $416,666 at September 30, 2013.
	In conjunction with the 10% Convertible Preferred Stock financing in April 2012, we amended the M&R technology license agreement to modify the calculation and the timing of the royalty payments. Under the provisions of this amendment, effective April 27, 2012, the monthly royalty due is the lesser of 10% of net sales or 30% of pre-royalty EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization). No royalties will be earned and due until such time as our cumulative EBITDA commencing April 1, 2012 is positive on a cumulative basis. During the three months and nine months ended June 30, 2014 and 2013, we incurred $0 royalties to M&R.
	A critical component of our dual fuel aftermarket conversion solution is the internally developed software component of our electronic control unit. The software allows us to seamlessly and constantly monitor and control the various gaseous fuels to maximize performance and emission reduction while remaining within all original OEM diesel engine performance parameters. We have developed a base software application and EPA's testing protocol for both our Outside Useful Life ("OUL") and Intermediate Useful Life ("IUL") engine applications, which will be customized for each engine family approved in order to maximize the performance of the respective engine family.
	As of June 30, 2014, we have capitalized $3,791,001 of software development costs associated with our OUL ($1,801,506) and IUL ($1,989,495) applications, which will be amortized on a straight line basis over an estimated useful life of 60 months for OUL applications and 84 months for IUL applications. Amortization costs for the three months and nine months ended June 30, 2014 and 2013 were $119,807 and $338,785 and $68,314 and $167,308, respectively.
	Amortization expense associated with acquisition related intangibles during the next five years is anticipated to be:
	Twelve months ending June 30:	Contracts		Technology		Software		Total
						Development
	2014	$	50,000	$	50,000	$	596,948	$	696,948
	2015	50,000		50,000		644,515		744,515
	2016	50,000		50,000		636,811		736,811
	2017	50,000		50,000		507,572		607,572
	2018	50,000		50,000		289,550		389,550
	2019 and thereafter	4,167		4,167		459,937		468,271
		$	254,167	$	254,167	$	3,135,333	$	3,643,667

Contracts_in_Progress

Contracts in Progress	9 Months Ended
	Jun. 30, 2014
Contractors [Abstract]	'
Contracts in Progress	'
	Contracts in Progress
	Contracts in progress consist of the following:
		June 30,		September 30,
		2014		2013
	Costs incurred on uncompleted contracts	$	14,572	$	14,572
	Estimated earnings on contracts in progress	25,387		25,387
		39,959		39,959
	Less billings on contracts in progress	39,959		47,492
		$	—	$	(7,533	)
	Costs and estimated earnings in excess of billings	$	—	$	—
	Billings in excess of costs and estimated earnings	—		7,533
		$	—	$	(7,533	)

Property_Plant_and_Equipment

Property, Plant and Equipment	9 Months Ended
	Jun. 30, 2014
Property, Plant and Equipment [Abstract]	'
Property, Plant and Equipment	'
	Property, Plant and Equipment
	Property, plant and equipment consist of the following:
		June 30,			September 30,			Estimated
		2014			2013			Useful Lives
	Leasehold improvements	$	127,087		$	127,087		5 years
	Machinery and equipment	1,524,310			1,431,871			3 - 7 years
	Less accumulated depreciation	(867,149		)	(629,137		)
		$	784,248		$	929,821

Product_Warranty_Costs

Product Warranty Costs	9 Months Ended
	Jun. 30, 2014
Product Warranties Disclosures [Abstract]	'
Product Warranty Costs	'
	Product Warranty Costs
	We provide for the estimated cost of product warranties for our dual fuel products at the time product revenue is recognized. Factors that affect our warranty reserves include the number of units sold, historical and anticipated rates of warranty repairs, and the cost per repair. We assess the adequacy of the warranty provision and we may adjust this provision if necessary. The increase in warranty reserve and the claims processed for the nine months ended June 30, 2014 and for the year ended September 30, 2013, are attributable to the increase in our revenue during those periods.
	The following table provides the detail of the change in our product warranty accrual relating to dual fuel products as of:
		Nine Months Ended			Year Ended
		30-Jun-14			30-Sep-13
	Warranty accrual at the beginning of the period	$	118,591		$	18,306
	Charged to costs and expenses relating to new sales	88,542			146,594
	Costs of product warranty claims	(74,856		)	(46,309		)
	Warranty accrual at the end of period	$	132,277		$	118,591

Notes_PayableCredit_Facilities

Notes Payable/Credit Facilities	9 Months Ended
	Jun. 30, 2014
Debt Disclosure [Abstract]	'
Notes Payable/Credit Facilities	'
	Notes Payable/Credit Facilities
	Credit Facilities
	We have a $2,500,000 credit facility with Iowa State Bank under which we may borrow up to 50% of the value of eligible inventory, 75% of eligible accounts receivable, 100% of our certificate of deposit and 50% of eligible machinery and equipment. This credit facility is due April 1, 2015 and bears interest of 7%. We have collateralized the obligation by: (i) granting to the lender a security interest in our $300,000 certificate of deposit and certain additional collateral and (ii) pledging to the lender, as additional collateral, 2,000,000 shares of our Common Stock. In addition, two directors and two members of management have each pledged 125,000 shares of our Common Stock owned by them as additional collateral.
	As of June 30, 2014, we have $2,500,000 outstanding under the credit facility and do not have additional borrowing availability based on existing collateral under the terms of our working capital line. Subsequent to June 30, 2014, we repaid Iowa State Bank $550,000 of the outstanding balance. We are currently in discussions with the bank regarding the potential restructuring of our credit facility to extend the term as well as gain access to additional availability.
	Notes Payable, Related Party
	In September and October 2010, an officer and former director loaned us a total of $323,500 in connection with a private placement of 12% six-month promissory notes. In October 2011, an officer loaned us $150,000 pursuant to the terms of a 10% promissory note due November 27, 2011. In conjunction with the 10% Convertible Preferred Stock financing in April 2012, these officers and former director agreed to extend the maturity of their notes until April 30, 2014 and reduce their interest rate to 8%. These notes have been classified as short term as of June 30, 2014.
	On April 30, 2014, the two officers agreed to extend the maturity of their notes totaling $200,000 in aggregate until September 30, 2014 and the holder of the former director's note agreed to payments of $15,000 per month starting May 15, 2014 with the remaining balance due September 30, 2014.

Stockholders_Equity

Stockholders' Equity	9 Months Ended
	Jun. 30, 2014
Stockholders' Equity Note [Abstract]	'
Stockholders' Equity	'
	Stockholders’ Equity
	Common Stock
	During the nine months ended June 30, 2014, holders exercised options and warrants to purchase an aggregate of 3,294,296 shares of Common Stock at exercise prices ranging from $0.28 to $0.65 utilizing a cashless exercise feature resulting in the net issuance of 1,674,151 shares of Common Stock. In addition, warrants were exercised to purchase 99,213 shares of Common Stock at exercise prices ranging from $0.48 to $0.65.
	During the nine months ended June 30, 2014, 0.35 shares of 10% Convertible Preferred Stock were converted into 8,870 shares of Common Stock.
	10% Convertible Preferred Stock
	During the nine months ended June 30, 2014, we recorded a dividend on our 10% Convertible Preferred Stock of $722,815, of which $421,508 was paid in cash. Certain stockholders agreed to accept 358,255 shares of Common Stock (valued at $301,307) in lieu of cash dividend payments.
	During the nine months ended June 30, 2013, we recorded a dividend on our 10% Convertible Preferred Stock of $644,560, of which $281,733 was paid in cash. Certain stockholders agreed to accept 548,234 shares of Common Stock (valued at $362,825) in lieu of cash dividend payments.
	Stock Options
	Amortization of stock compensation expense was $13,951 and $60,120 for the three months and nine months ended June 30, 2014 and $29,603 and $97,396 for the three months and nine months ended June 30, 2013. The unamortized compensation expense at June 30, 2014 was 48,240 and will be amortized over a weighted average remaining life of approximately 2.26 years.

Recent_Accounting_Pronouncemen

Recent Accounting Pronouncement (Notes)	9 Months Ended
	Jun. 30, 2014
Accounting Policies [Abstract]	'
Recent Accounting Pronouncement	'
	Recent Accounting Pronouncement
	In May 2014, the Financial Account Standards Board issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective on January 1, 2017. Early application is not permitted. The standard permits the use of either the retrospective or modified retrospective (cumulative effect) transition method. We are evaluating the effect that ASU 2014-09 will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect for the standard on our ongoing financial reporting.

Basis_of_Presentation_Accounti

Basis of Presentation Accounting policies (Policies)	9 Months Ended
	Jun. 30, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
Certificates of Deposit, Policy	'
	All certificate of deposit investments have an original maturity of more than three months but less than three years and are stated at original purchase price which approximates fair value.
Accounts Receivable, Policy	'
	Accounts receivable are carried at original invoice amount less an estimate made for doubtful accounts. Management determines the allowance for doubtful accounts by regularly evaluating past due individual customer receivables and considering a customer’s financial condition, credit history, and the current economic conditions. Individual accounts receivable are written off when deemed uncollectible, with any future recoveries recorded as income when received.
Inventory, Policy	'
	Raw material inventory primarily consists of dual fuel conversion components. Work in progress includes materials, labor and direct overhead associated with incomplete dual fuel conversion projects. As of June 30, 2014 and September 30, 2013, we recorded an inventory valuation allowance of $42,206 and $44,073, respectively.
	All inventory is valued at the lower of cost or market on the first-in first-out (FIFO) method.
Intangible Assets, Policy	'
	We review intangibles for impairment annually, or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of our intangible assets below their carrying value.
Product Warranty Costs, Policy	'
	We provide for the estimated cost of product warranties for our dual fuel products at the time product revenue is recognized. Factors that affect our warranty reserves include the number of units sold, historical and anticipated rates of warranty repairs, and the cost per repair. We assess the adequacy of the warranty provision and we may adjust this provision if necessary.

Inventory_Tables

Inventory (Tables)	9 Months Ended
	Jun. 30, 2014
Inventory Disclosure [Abstract]	'
Schedule of Inventory	'
	Inventory consists of the following:
		June 30,		September 30,
		2014		2013
	Raw materials	$	757,104	$	895,905
	Work in progress	12,125		11,423
	Finished goods	1,126		731
	Total inventory	$	770,355	$	908,059

Intangible_Assets_Tables

Intangible Assets (Tables)	9 Months Ended
	Jun. 30, 2014
Goodwill and Intangible Assets Disclosure [Abstract]	'
Schedule of Amortization Expense of Intangible Assets During the Next Five Years	'
	Amortization expense associated with acquisition related intangibles during the next five years is anticipated to be:
	Twelve months ending June 30:	Contracts		Technology		Software		Total
						Development
	2014	$	50,000	$	50,000	$	596,948	$	696,948
	2015	50,000		50,000		644,515		744,515
	2016	50,000		50,000		636,811		736,811
	2017	50,000		50,000		507,572		607,572
	2018	50,000		50,000		289,550		389,550
	2019 and thereafter	4,167		4,167		459,937		468,271
		$	254,167	$	254,167	$	3,135,333	$	3,643,667

Contracts_in_Progress_Tables

Contracts in Progress (Tables)	9 Months Ended
	Jun. 30, 2014
Contractors [Abstract]	'
Schedule of Contracts in Progress	'
	Contracts in progress consist of the following:
		June 30,		September 30,
		2014		2013
	Costs incurred on uncompleted contracts	$	14,572	$	14,572
	Estimated earnings on contracts in progress	25,387		25,387
		39,959		39,959
	Less billings on contracts in progress	39,959		47,492
		$	—	$	(7,533	)
	Costs and estimated earnings in excess of billings	$	—	$	—
	Billings in excess of costs and estimated earnings	—		7,533
		$	—	$	(7,533	)

Property_Plant_and_Equipment_T

Property, Plant and Equipment (Tables)	9 Months Ended
	Jun. 30, 2014
Property, Plant and Equipment [Abstract]	'
Property, Plant and Equipment [Table Text Block]	'
	Property, plant and equipment consist of the following:
		June 30,			September 30,			Estimated
		2014			2013			Useful Lives
	Leasehold improvements	$	127,087		$	127,087		5 years
	Machinery and equipment	1,524,310			1,431,871			3 - 7 years
	Less accumulated depreciation	(867,149		)	(629,137		)
		$	784,248		$	929,821

Product_Warranty_Costs_Tables

Product Warranty Costs (Tables)	9 Months Ended
	Jun. 30, 2014
Product Warranties Disclosures [Abstract]	'
Schedule of the Change in the Product Warranty Accrual	'
	The following table provides the detail of the change in our product warranty accrual relating to dual fuel products as of:
		Nine Months Ended			Year Ended
		30-Jun-14			30-Sep-13
	Warranty accrual at the beginning of the period	$	118,591		$	18,306
	Charged to costs and expenses relating to new sales	88,542			146,594
	Costs of product warranty claims	(74,856		)	(46,309		)
	Warranty accrual at the end of period	$	132,277		$	118,591

Nature_of_Operations_Risks_and1

Nature of Operations, Risks, and Uncertainties Recent Developments (Details) (USD $)	1 Months Ended
	Apr. 30, 2014	Jun. 30, 2014	Sep. 30, 2013
Nature of Operations, Risks, and Uncertainties Disclosure [Abstract]	'	'	'
Lease renewal term	'2 years	'	'
Line of Credit Facility, Maximum Borrowing Capacity	'	$2,500,000	$2,250,000

Nature_of_Operations_Risks_and2

Nature of Operations, Risks, and Uncertainties (Details) (USD $)	Jun. 30, 2014	Sep. 30, 2013	Aug. 13, 2014	Aug. 14, 2014	Jun. 30, 2014	Jun. 30, 2014
			Subsequent Event [Member]	Subsequent Event [Member]	Minimum [Member]	Maximum [Member]
Percentage diesel fuel	1	'	'	'	'	'
Potential displaced consumption of diesel fuel	0.75	'	'	'	'	'
Realized displaced consumption of diesel fuel	'	'	'	'	0.4	0.65
Utilities Operating Expense, Reduction of Fuel and Operating Costs	'	'	'	'	0.15	0.35
Cash and Cash Equivalents, at Carrying Value	$1,537,854	'	'	'	'	'
Working Capital	934,306	'	'	'	'	'
Line of Credit Facility, Maximum Borrowing Capacity	2,500,000	2,250,000	'	'	'	'
Repayments of Lines of Credit	'	'	550,000	'	'	'
Line of Credit Facility, Remaining Borrowing Capacity	'	'	'	$235,000	'	'

Certificates_of_Deposits_Detai

Certificates of Deposits (Details) (USD $)	Jun. 30, 2014	Sep. 30, 2013
Certificates of Deposit [Abstract]	'	'
Certificates of deposit, restricted	$300,000	$300,000

Receivables_Schedule_of_Relate

Receivables Schedule of Related Party Transactions, by Related Party (Details) (American Power Group [Member], USD $)	9 Months Ended
	Jun. 30, 2014	Apr. 01, 2012
American Power Group [Member]	'	'
Related Party Transaction [Line Items]	'	'
Note Receivable Related Party, Total Principal Amount Outstanding	$797,387	'
Related Party Transaction, Interest Rate	5.50%	'
Royalties Due to be Applied Against Outstanding Interest and Principal of Related Party Note Receivable	50.00%	50.00%
Due to Related Parties, Noncurrent, Percentage of Balance	100.00%	'

Inventory_Details

Inventory (Details) (USD $)	Jun. 30, 2014	Sep. 30, 2013
Inventory Disclosure [Abstract]	'	'
Inventory Valuation Reserves	$42,206	$44,073
Raw materials	757,104	895,905
Work in progress	12,125	11,423
Finished goods	1,126	731
Total inventory	$770,355	$908,059

Intangible_Assets_Long_Term_Co

Intangible Assets - Long Term Contracts and Purchased Technology (Details) (USD $)	3 Months Ended		9 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Sep. 30, 2013
Goodwill and Intangible Assets Disclosure [Abstract]	'	'	'	'	'
Contract Recievable, Amortized	$500,000	'	$500,000	'	'
Purchased Technology, Amortized	500,000	'	500,000	'	'
Long Term Contracts, Useful Life	'	'	'120 months	'	'
Purchased Technology, Useful Life	'	'	'120 months	'	'
Amortization of Long Term Contracts and Purchased Technology	25,000	25,000	75,000	75,000	'
Long Term Contracts and Purchased Technology, Accumulated Amortization	491,666	'	491,666	'	416,666
Royalty Expense	$0	$0	$0	$0	'

Intangible_Assets_Exclusive_Pa

Intangible Assets - Exclusive Patent License Agreement (Details) (USD $)	3 Months Ended		9 Months Ended		0 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Apr. 27, 2012	Apr. 27, 2012
					Net Sales Threshold [Member]	Pre Royalty EBITDA Threshold [Member]
Exclusive patent license agreement [Line Items]	'	'	'	'	'	'
Monthly Royalty Amount	'	'	'	'	10.00%	30.00%
Royalty Expense	$0	$0	$0	$0	'	'

Intangible_Assets_Software_Dev

Intangible Assets - Software Development (Details) (USD $)	3 Months Ended		9 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Capitalized Software Development Costs [Line Items]	'	'	'	'
Capitalized Software Development Costs for Software Sold to Customers	$3,791,001	'	$3,791,001	'
Capitalized Computer Software, Amortization	119,807	68,314	338,785	167,308
OUL [Member]	'	'	'	'
Capitalized Software Development Costs [Line Items]	'	'	'	'
Capitalized Software Development Costs for Software Sold to Customers	1,801,506	'	1,801,506	'
Software, Useful Life	'	'	'60 months	'
IUL [Member]	'	'	'	'
Capitalized Software Development Costs [Line Items]	'	'	'	'
Capitalized Software Development Costs for Software Sold to Customers	$1,989,495	'	$1,989,495	'
Software, Useful Life	'	'	'84 months	'

Intangible_Assets_FiniteLived_

Intangible Assets - Finite-Lived Intangible Assets, Future Amortization Expense (Details) (USD $)	Jun. 30, 2014
Acquired Finite-Lived Intangible Assets [Line Items]	'
2014	$696,948
2015	744,515
2016	736,811
2017	607,572
2018	389,550
2019 and thereafter	468,271
Total	3,643,667
Contracts [Member]	'
Acquired Finite-Lived Intangible Assets [Line Items]	'
2014	50,000
2015	50,000
2016	50,000
2017	50,000
2018	50,000
2019 and thereafter	4,167
Total	254,167
Technology [Member]	'
Acquired Finite-Lived Intangible Assets [Line Items]	'
2014	50,000
2015	50,000
2016	50,000
2017	50,000
2018	50,000
2019 and thereafter	4,167
Total	254,167
Testing Software [Member]	'
Acquired Finite-Lived Intangible Assets [Line Items]	'
2014	596,948
2015	644,515
2016	636,811
2017	507,572
2018	289,550
2019 and thereafter	459,937
Total	$3,135,333

Contracts_in_Progress_Details

Contracts in Progress (Details) (USD $)	Jun. 30, 2014	Sep. 30, 2013
Contractors [Abstract]	'	'
Costs incurred on uncompleted contracts	$14,572	$14,572
Estimated earnings on contracts in progress	25,387	25,387
Estimated revenue on uncompleted contracts	39,959	39,959
Less billings on contracts in progress	39,959	47,492
Net position of all contracts in progress	0	-7,533
Costs and estimated earnings in excess of billings	0	0
Billings in excess of costs and estimated earnings	0	7,533
Net position of all contracts in progress	$0	($7,533)

Property_Plant_and_Equipment_D

Property, Plant and Equipment (Details) (USD $)	9 Months Ended
	Jun. 30, 2014	Sep. 30, 2013
Property, Plant and Equipment [Line Items]	'	'
Property, plant and equipment, net	$784,248	$929,821
Leasehold improvements	'	'
Property, Plant and Equipment [Line Items]	'	'
Property, Plant and Equipment, Estimated Useful Lives	'5 years	'
Property, Plant, and Equipment, Gross	127,087	127,087
Machinery and equipment	'	'
Property, Plant and Equipment [Line Items]	'	'
Property, Plant, and Equipment, Gross	1,524,310	1,431,871
Less accumulated depreciation	-867,149	-629,137
Property, plant and equipment, net	$784,248	$929,821
Machinery and equipment | Minimum [Member]	'	'
Property, Plant and Equipment [Line Items]	'	'
Property, Plant and Equipment, Estimated Useful Lives	'P3Y	'
Machinery and equipment | Maximum [Member]	'	'
Property, Plant and Equipment [Line Items]	'	'
Property, Plant and Equipment, Estimated Useful Lives	'P7Y	'

Product_Warranty_Costs_Details

Product Warranty Costs (Details) (USD $)	9 Months Ended	12 Months Ended
	Jun. 30, 2014	Sep. 30, 2013
Product Warranties Disclosures [Abstract]	'	'
Warranty accrual at the beginning of the period	$118,591	$18,306
Charged to costs and expenses relating to new sales	88,542	146,594
Costs of product warranty claims	-74,856	-46,309
Warranty accrual at the end of period	$132,277	$118,591

Notes_PayableCredit_Facilities1

Notes Payable/Credit Facilities (Details) (USD $)	9 Months Ended
	Jun. 30, 2014	Sep. 30, 2013
Debt Disclosure [Abstract]	'	'
Line of Credit Facility, Maximum Borrowing Capacity	$2,500,000	$2,250,000
Line of Credit Facility, Borrowing Capacity, Eligible Inventory	50.00%	'
Line of Credit Facility, Borrowing Capacity, Eligible Accounts Receivable	75.00%	'
Line of Credit Facility, Borrowing Capacity, Eligible Certificate of Deposit	100.00%	'
Line of Credit Facility, Borrowing Capacity, Eligible Property and Equipment	50.00%	'
Line of Credit Facility, Interest Rate at Period End	7.00%	'
Restricted Cash and Cash Equivalents, Current	300,000	300,000
Common Shares Held as Collateral, Number of Shares	2,000,000	'
Common Shares Pledged	125,000	'
Line of Credit Facility, Amount Outstanding	$2,500,000	'

Notes_PayableCredit_Facilities2

Notes Payable/Credit Facilities - Short Term Promissory Notes (Details) (USD $)	0 Months Ended
	15-May-14	Jun. 30, 2014	Sep. 30, 2013	Oct. 31, 2011	Jun. 30, 2014	Apr. 30, 2014	Jun. 30, 2014
				Notes Payable, Other Payables [Member]	Director and Officer [Member]	Director and Officer [Member]	Chief Executive Officer [Member]
Short-term Debt [Line Items]	'	'	'	'	'	'	'
Notes payable, related parties	'	$443,500	$473,500	'	$323,500	$200,000	$150,000
Stated Interest Rate, Stated Percentage	'	'	'	10.00%	'	'	'
Stated Interest Rate at Period End	'	8.00%	'	'	'	'	'
Periodic Payment, Principal	$15,000	'	'	'	'	'	'

Stockholders_Equity_Common_Sto

Stockholders' Equity - Common Stock (Details)	9 Months Ended
	Jun. 30, 2014
Class of Stock [Line Items]	'
Incremental Common Shares Attributable to Call Options and Warrants, Immediate	3,294,296
Stock Issued During Period, Shares, Issued for Services	1,674,151
Minimum [Member]	'
Class of Stock [Line Items]	'
Class of Warrant or Right, Exercise Price of Warrants or Rights	0.48
Maximum [Member]	'
Class of Stock [Line Items]	'
Class of Warrant or Right, Exercise Price of Warrants or Rights	0.65
Common Stock [Member] | Minimum [Member]	'
Class of Stock [Line Items]	'
Class of Warrant or Right, Exercise Price of Warrants or Rights	0.28
Common Stock [Member] | Maximum [Member]	'
Class of Stock [Line Items]	'
Class of Warrant or Right, Exercise Price of Warrants or Rights	0.65
Convertible Debt [Member]	'
Class of Stock [Line Items]	'
Issuance of Stock and Warrants for Services or Claims	99,213
Convertible Preferred Stock [Member]	'
Class of Stock [Line Items]	'
Conversion of Stock, Shares Converted	0.35
Common stock issued upon Preferred stock conversion (in shares)	8,870

Stockholders_Equity_Ten_Percen

Stockholders' Equity - Ten Percent Convertible Preferred Stock (Details) (USD $)	9 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Class of Stock [Line Items]	'	'
Preferred Stock, Dividend Rate, Percentage	10.00%	10.00%
Dividends, Preferred Stock	$722,815	$644,560
Dividends, Preferred Stock, Cash	421,508	281,733
Convertible Preferred Stock [Member]	'	'
Class of Stock [Line Items]	'	'
Common Stock Dividends, Shares	358,255	548,234
Stock Issued During Period, Value, New Issues	$301,307	$362,825

Stockholders_Equity_Stock_Opti

Stockholders' Equity - Stock Options (Details) (USD $)	3 Months Ended		9 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Stockholders' Equity Note [Abstract]	'	'	'	'
Allocated Share-based Compensation Expense	$13,951	$29,603	$60,120	$97,396
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized	$48,240	'	$48,240	'
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Remaining Vesting Period Years	'	'	'2.26	'