Twin Vee PowerCats, Co. Q4 FY2023 earnings call

• Industry Challenges: Elevated interest rates have put downward pressure on demand across the marine industry.
• Company Actions: Actively rightsizing the business; currently employs approximately 85 people and manufactures 10 - 14 boats per month under Twin Vee and Aquasport brands.
• Product Development: Introduced or in development new products like the Aquasport 280 Super Boat (to be ready for customer orders around October 2024), Twin Vee 280 Dual Console; working on GFX2 line starting with Twin Vee 260 GFX2 next month; beginning construction on a 25,000 square foot addition in Fort Pierce, FL (to be nearly 100,000 square feet when completed in 6 - 9 months); placed order for state - of - the - art CNC machine (5 - axis routers) scheduled to arrive in October.
• Dealer Network: Added a new dealer in Dubai, marking the first time Twin Vee products are sold in the Middle East.

In 2023, while Twin Vee showed substantial losses, much of these were attributed to the consolidation of Forza electric boat losses. Removing the Forza losses, Twin Vee's adjusted cash loss was $1.6 million, and cash remained over $8 million as of December 31, 2023. Regarding product segments, the gas-powered boats had losses, but when excluding Forza, the focus is on Twin Vee's performance. The revenue contribution isn't explicitly stated in absolute percentage terms but the financials show the impact of Forza on Twin Vee's overall results.

• Anticipates solid growth with new products, technology, forward product expansion, and acquisition of 5 - axis router enabling in - house manufacturing to reduce expenses.
• Positioned to capitalize on emerging opportunities with established brands, innovative product pipeline, and growing dealer network.

• Resignations of CFO Carrie Gunnerson and Forza CEO Jim Leffew; changing market conditions and elevated interest rates continuing to exert pressure on demand in the marine industry.

Q: Please comment on the resignation of the CFO of Twin Vee as well as the resignation of the CEO of Forza A: Jim Leffew resigned from Forza as the team pulled in reins on R&D and product development timing due to market shifts. Carrie Gunnerson resigned from Twin Vee, and they're interviewing for a new CFO. Change creates opportunity, and they have good relationships with the former executives Q: Talked about raising $25 million in cash and reducing cash burn, but gas - powered boats had increased loss from operations from $2.4 million to $5.4 million A: Removing Forza losses, Twin Vee's adjusted cash loss is $1.6 million. Can go into more details offline, but overall, they're working to navigate the situation