Twin Vee PowerCats, Co. Q3 FY2024 earnings call

Joseph's Statements - Acknowledged challenging quarter with retail, economic, and inflationary challenges. Right-sized business, lowered production, managed dealer inventory. Wound down Forza and Old Fort, NC operations, stopped Marion County factory construction to preserve cash, and the property is for sale. Hurricane Helena impacted surrounding manufacturing areas. Focused on BayCats new line launching in Q1 2025. Believes market will shift positively with Trump's policies promoting pro-business environment. Lifestyle trends towards outdoor experiences remain strong. ### Michael's Statements - Walked through consolidated financials, sales decline, expense cuts (headcount, R&D, discretionary spending), cash position ($11.4M cash and equivalents at quarter end, down from $15.1M Q2), merger progress with Forza expected to complete by year-end, and considerations for Marion, NC building to maximize shareholder value.

On a consolidated basis, net sales for the third quarter of 2024 were $2.9 million, a reduction of $5.2 million or 64% from Q3 2023. Sold 20 boats compared to 66 in Q3 2023. Average sales price up 17% due to longer boats sold. Gross margin was slightly negative as cost-cutting didn't keep pace with sales decline. The Forza segment and Twin Vee segment both saw expense reductions.

- Goal to achieve a consolidated adjusted net loss run rate of $400,000 per month or better by exiting the first quarter. ### - Merger of Twin Vee and Forza expected to be completed before the end of 2024, with Forza shareholders receiving 0.612 shares of Twin Vee per Forza share.

- Turbulent retail environment, economic headwinds, and inflationary pressures affecting the recreational vehicle and boating industries. ### - Dealer inventory levels at record highs leading to some delays in shipments. ### - Impact of Hurricane Helena on surrounding manufacturing areas. ### - Concerns about cash burn and the need to continue reducing it through various cost-saving measures.

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