APT MotoVox Group Inc. (MTVX)

[bullethole27]

Everyone please take a look at this.

MOAngler was discussing the fact that there are filings with Jackson County MO that indicate there are a couple tens of thousands in tax levies against APT. I told him I was not concerned because APT has millions in tax credits and this is likely some procedural issue. He said that some thought they may have already sold these and that got me thinking.

I don't think they have already sold these but I bet they're about to. In the recent interview Troy Covey states that APT is finalizing a deal to sell non-revenue producing assets that will lower expenses by 1/3. I believe that this is likely a portion of the tax credits that APT owns.

According to the Economic Development Corporation of Kansas City, APT was the receipient of 7.7M in tax credits.

http://edckc.com/portfolio/american-performance-technologies/

Combine this with the over 2M that they now own from purchasing FROZ and you're looking at nearly 10M in tax credit assets that they may be able to sell. Since APT is not profitable yet they would only need to retain a small proportion of this amount for property tax purposes. That might leave up to 9M to sell to another business at a somewhat discounted rate.

The recent 10-Q puts current debt at 8M we know that the IR deal and issued convertible notes have taken care of at least 3M of this. Therefore they could easily erase the remaining 5M in short term debt and have several million left over to hold as cash. This would drastically improve the balance sheet situation if it occurred.

I am curious to get people's thoughts on this idea. Thanks to MOAngler for playing Devil's Advocate.