APDEG, LLC.

Solution to address each of todays GDI engine issues. 

We were primarily founded to develop products to address the issues the new GDI engines have to deal with that has brought the average trouble free life of engines from 100,000 miles as a universal average trouble free life to 30-40k miles today with the GDI engines the regulators have forced on EVERY automaker in the World today. 

These engines face these issues that the engines we were all accustomed too never did, and one of our main products addresses and corrects each of these as these 2 videos explain:

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 | 3 Big Problems With Direct Injection Engines (Gasoline)



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 | Better Gas Mileage - MPG BOOST Saves you Money!



This not only is the most robust patented solution that addresses each of these, there is no competitor on the market period. 

This we have app. 24000 of these in use and we have never done any advertising or marketing. All word of mouth and some industry related media coverage.

And we also are one of the ONLY designers and manufacturers of GM based V6 engine supercharger systems. Cadillac, Chevrolet, GMC, and Buick. These give from a 40% increase in power to over double depending on the model. 

Both have good margins and we have doubled revenues nearly every year we have been active. 

We have the 2 biggest direct to consumer retailers, JEGS Aftermarket Auto Parts & High Performance Racing & Replacement Accessories Online 

 | JEGS Aftermarket Auto Parts & High Performance Racing & Replacement Acce...Shop Aftermarket Parts For New & Classic Cars Online at JEGS High Performance. Browse Our Collection Of Replacem...

and http://www.summitracing.com

 As well as wholesaler http://www.Turn14.com

We have sold product in the past through Jegs, but the demand greatly exceeded our ability to manufacture, assemble, and ship in a timely fashion due to limited capital for inventory and hire assemblers. So we had to withdraw until we could either find a partner, or secure funding at a sensible rate. 

We also have a market that we had not originally considered but has the most upside potential is the commercial light fleet market. This includes Gasoline engine (it does not work on Diesel engines the same way, we can provide longer oil life, but no fuel economy gains) pickups, vans, taxis, company cars, US Mail, etc. We guarantee 10% plus increase in fuel economy (most see 12-14% but under promise and over deliver has worked well), extend oil change intervals 2-3 times as long, extend engine life 2-3 times as long, and greatly reduce repairs and the associated down time. We have done over 2 years of research into this market, but until we can have sufficient inventory on the shelf and ready to pick, pull, and ship, we have not pursued this market other than a handful of small 50-200 vehicle fleets).

There are approximately 20 million of these vehicles in use today in the US. Our margins for these systems run around $200-250 each and they retail for $500 -600 each. If we only landed 1% of this market that would be over $40 million in GP alone, 10% $400 million. Again, we make the ONLY system that an offer these benefits. There is no other device on the market that can. And yes, we hold the patents on these. There is a company that offers an add-on external filtration system but they run $8-12k each and clean the oil AFTER it has become dirty and saturated with contaminants. We flush and remove these contaminants before they can settle and mix with the oil. Treating the cause and not the symptom.

So, we currently have machining in house to do prototypes and accessories, but the main production is outsourced to two local CNC production shops. We don't see purchasing our own CNC machines as it would take a good amount of time to realize a return as these run $200-300k each, but we can reduce our cost to produce by $20-30 each with economies of scale if we can purchase the raw materials in bulk and have say 500 pieces each made per run than the 50 or so we have funding for currently. So the break down of proceeds would be as follows:

$200k:

$100-150k for materials and inventory. 

$15-20k for additional equipment.

$40k to hire additional help to assemble, pack, and ship.

With this we would continue on a small scale with the fleet versions, until we can partner or be acquired by a larger company that already serves that market.

We would ramp up so we can go live again with Jegs, and add Turn14 for the wholesale side before adding Summit Racing. 

If we cannot secure funding at a reasonable rate that would not burden us beyond the upside, we will continue as we have slowly building our working capital and pursue being acquired now instead of after we have grown more.

We also have some unique inventions we have not patented yet that could grab more market, but that is putting the cart before the horse.