Twin Vee PowerCats, Co. Q2 FY2024 earnings call

• Added Karl Zimmer as Twin Vee's new President to oversee day-to-day operations and support growth strategies. • Introduced Twin Vee's all new second-generation GFX model line with advanced features like all-digital switching and touchscreen control. • In-housed a fully integrated tooling department with a 46-foot 5-axis router for faster design and tooling of new models. • Announced merger with Forza, an all-stock transaction where Forza shareholders will receive Twin Vee shares, aiming to create a stronger, more competitive brand. • Continued investment in infrastructure with a 30,000 square foot expansion in Fort Pierce and a new 5-axis router scheduled to arrive in October.

Consolidated net sales for the second quarter of 2024 were $4.3 million, a reduction of $3.8 million or 47% from the second quarter of 2023. For the Twin Vee segment, operating expenses were down $457,000 or 19% compared to the second quarter of 2023. At Forza, cash and cash equivalents ended the second quarter at $8.2 million, down from $9.95 million at the end of the first quarter. Twin Vee ended the second quarter with $6.945 million in cash and cash equivalents, down from $7.428 million at the end of the first quarter.

• Confident in navigating current market conditions and being prepared for the next market upswing. • Believes the merger with Forza will provide a solid balance sheet and position the company for future investments and growth opportunities.

• Impairment charge of $1.674 million related to a partially completed building at Forza due to market value being lower than carrying value. • Ongoing challenges in the recreational marine industry due to economic factors like higher interest rates and shifting consumer confidence.