N-Q 1 nq103116s2.txt SERIES TWO FORM NQ UNITED STATES SECURITY AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-Q Quarterly Schedule of Portfolio Holdings of Registered Management Investment Company Investment Company Act File Number: 811-825 American Growth Fund, Inc. (exact name of registrant as specified in charter) 1636 Logan Street Denver, Colorado 80203 (address of principal executive offices) (zip code) Registrants telephone number, including area code (303) 626-0600 Date of Fiscal Year End: July 31 Date of reporting period: October 31, 2016 American Growth Fund, Inc. 1636 Logan Street Denver, CO 80203 (Name and Address of Agent for Service) Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (SS 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Pleasedirect comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. S 3507. --------------------------------------------------------------------------- ITEM 1 - Schedule of Investments American Growth Fund Series 2 October 31, 2016 (unaudited) Market Common Stocks 73.74% Shares Value Drug Manufacturers 22.69% GW Pharmaceuticals Plc* 520 61,043 CV Sciences Inc.* 37,260 34,652 Merck & Company Inc. (new) 420 24,662 Zynerba Pharmaceuticals Inc.* 1,490 17,165 AbbVie Inc. 270 15,060 ----------------------- 152,582 Biotechnologies 8.85% GrowBLOX Sciences Inc.* 55,220 32,028 Cara Therapeutics Inc.* 2,390 16,706 Insys Therapeutics Inc.* 1,000 10,810 ----------------------- 59,544 Agriculture 8.25% Scotts Miracle-Gro Compnay (The) 630 55,497 ----------------------- 55,497 Farm and Constuction Equipment 6.96% Terra Tech Corp* 44,850 23,537 American Cannabis Co Inc.* 15,000 23,250 ----------------------- 46,787 Personal Services 4.41% Cannabis Sativa Inc.* 4,500 29,655 ----------------------- 29,655 Medical Devices 4.14% Abbot Laboratories 710 27,860 ----------------------- 27,860 Business Services 3.18% Medicine Man Technologies Inc.* 4,860 21,384 ----------------------- 21,384 Packaging and Containers 3.12% Kush Bottles Inc.* 4,940 20,995 ----------------------- 20,995 Consulting & Outsourcing 3.05% Blue Line Protection Group Inc.* 387,362 20,530 ----------------------- 20,530 Application Soaftware 2.95% MassRoot Inc.* 19,840 19,840 ----------------------- 19,840 Metals and Mining 1.95% Zoned Properties Inc.* 4,260 13,121 ----------------------- 13,121 Retail - Apparel & Specialty 1.82% Aerogrow Intl Inc.* 2,440 12,224 ----------------------- 12,224 Medical Diagnostics & Research 1.67% Cannabis Science Inc.* 199,000 11,244 ----------------------- 11,244 Real Estate Services 0.43% Grow Condos Inc.* 1,500 2,850 ----------------------- 2,850 Consumer Packaging Goods 0.27% Two Rivers Water & Farming Company* 3,180 1,813 ----------------------- 1,813 Total Value Common Stocks (cost 388,446) 73.74% 495,926 Cash and Recevable, less liabilities 26.26% 176,639 ----------------------- Total Net Assets 100.00% 672,565 ======================= * Non-income producing security during last 12 months Gross Unrealized appreciation on investment securities 113,226 Gross Unrealized depreciation on investment securities (5,746) ------------- Net Unrealized depreciation on investment securities 107,480 Cost of investment securities for federal income tax purposes 388,446 Securities Valuations - The Fund utilizes various methods to measure the fair value of most of its investments on a recurring basis. U.S. GAAP establishes a hierarchy that prioritizes inputs to valuation methods. The three levels of inputs are: Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access. Level 2 - Observable inputs other than quoted prices included in level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data. Level 3 - Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund's own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available. The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The following is a summary of the inputs used, as of October 31, 2016, in valuing the Fund's assets carried at fair value: Equity Level 1 Level 2 Level 3 Total Common Stock $495,926 $0 $0 $495,926 -------------------------------------------------------------------------- ITEM 2 - Controls and Procedures The Registrants Principal Executive Officer/Principal Financial Officer has concluded, based on his evaluation of the Registrants disclosure controls and procedures (as such term is defined in Rule 30a-3 under the Investment Company Act of 1940), that such controls and procedures are adequate and reasonably designed to achieve the purposes described in paragraph (c) of such rule. There were no changes in the Registrants internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the Registrants last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Registrants internal controls over financial reporting. --------------------------------------------------------------------------- ITEM 3 - Exhibits The certifications required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)) is attached as exhibits hereto. --------------------------------------------------------------------------- SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. American Growth Fund By /s/ Timothy E. Taggart President Chief Financial Officer November 29, 2016 By /s/ Michael L. Gaughan Chief Compliance Officer November 29, 2016