American Power Group Corporation reported consolidated earnings results for the fourth quarter and full year ended September 30, 2016. Net sales for the three months ended September 30, 2016 decreased $638,000 or 73% to $235,000 as compared to net sales of $873,000 for the three months ended September 30, 2015. Due to increased oil reserves and a decrease in the growth rate of demand throughout certain parts of the world, the price of oil in the U.S. has dropped to the $35 - $50 per barrel range from almost $100 per barrel over a year ago, which has resulted in a decrease in diesel prices during the past two fiscal year causing the price spread between diesel prices and natural gas to tighten. Net loss for the three months ended September 30, 2016 was $1,754,000 or $0.03 per basic share as compared to net loss of $1,645,000 or $0.03 per basic share for the three months ended September 30, 2015. The calculation of net loss per share available for Common shareholders for the three months ended September 30, 2016 reflects the inclusion of Convertible Preferred Stock dividends of $339,000. The calculation of net loss per share available for Common shareholders for the three months ended September 30, 2015 reflects the inclusion of Convertible Preferred Stock dividends of $284,000. Net loss available to common shareholders was $2,094,000 or $0.03 per basic share as compared to $1,929,000 or $0.04 per basic share for the three months ended September 30, 2015. Operating loss from continuing operations was $1,308,000 compared to $1,287,000 a year ago. Net sales for the fiscal year ended September 30, 2016 decreased $1,096,000 or 59% to $1,863,000 as compared to net sales of $2,959,000 for the fiscal year ended September 30, 2015. Due to increased oil reserves and a decrease in the growth rate of demand throughout certain parts of the world, the price of oil in the U.S. has dropped to the $35 - $50 per barrel range from almost $100 per barrel over a year ago, which has resulted in a decrease in diesel prices during the past two fiscal year causing the price spread between diesel prices and natural gas to tighten. Due to dual fuel technology displaces higher cost diesel fuel with lower cost and cleaner burning natural gas, the 2016 decrease in oil/diesel pricing has resulted in a significant reduction in the number of oil and gas drilling rigs in operation and has impacted the timing of dealer restocking orders and the implementation schedules of existing and prospective customers. Net loss for the fiscal year ended September 30, 2016 was $7,559,000 or $0.13 per basic share as compared to net income of $474,000 or $0.01 per basic share for the fiscal year ended September 30, 2015. The calculation of net loss per share available for Common shareholders for the fiscal year ended September 30, 2016 reflects the inclusion of Convertible Preferred Stock dividends of $1,299,000 and a beneficial conversion feature of $1,551,000. The calculation of net loss per share available for Common shareholders for the fiscal year ended September 30, 2015 reflects the inclusion of Convertible Preferred Stock dividends of $1,126,000 and $395,000 beneficial conversion feature for Series B, preferred stock. Net loss available to common shareholders was $10,409,000 or $0.18 per basic share as compared to $1,046,000 or $0.02 per basic share for the three months ended September 30, 2015. Operating loss from continuing operations was $5,280,000 compared to $4,347,000 a year ago.