PART I—FINANCIAL INFORMATION This section provides the unaudited condensed consolidated financial statements and management's discussion and analysis for the reporting period [Condensed Consolidated Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements for the quarter ended March 31, 2024, highlighting a net loss of **$2.34 million** and a **41%** drop in net sales [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of March 31, 2024, reflects a decrease in total assets to **$36.5 million** and total stockholders' equity to **$30.1 million** Condensed Consolidated Balance Sheet Highlights (Unaudited) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Current Assets** | $21,778,752 | $26,646,318 | | **Total Assets** | $36,454,352 | $39,846,713 | | **Total Current Liabilities** | $2,896,963 | $4,216,345 | | **Total Liabilities** | $6,313,649 | $7,797,098 | | **Total Stockholders' Equity** | $30,140,703 | $32,049,615 | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The statement of operations for Q1 2024 shows a net loss of **$2.34 million**, a significant increase from the prior year, driven by a **41%** decline in net sales Statement of Operations Summary (Unaudited) | Metric | Three Months Ended Mar 31, 2024 | Three Months Ended Mar 31, 2023 | | :--- | :--- | :--- | | Net Sales | $5,276,343 | $8,877,215 | | Gross Profit | $277,314 | $1,609,558 | | Loss from Operations | $(2,543,206) | $(2,369,523) | | Net Loss | $(2,335,194) | $(1,828,465) | | Basic and Dilutive Loss Per Share | $(0.18) | $(0.12) | [Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%20Equity) Total stockholders' equity decreased to **$30.14 million** as of March 31, 2024, primarily due to the **$2.34 million** net loss for the quarter - Total stockholders' equity decreased by approximately **$1.9 million** during the first quarter of 2024, from **$32,049,615** to **$30,140,703**[18](index=18&type=chunk) - The decrease in equity was primarily due to a net loss of **$2,335,194**, which includes a net loss of **$1,686,227** attributable to Twin Vee stockholders and **$648,967** attributable to noncontrolling interests[18](index=18&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities was **$1.75 million** in Q1 2024, partially offset by **$1.48 million** from investing activities, resulting in a net cash decrease Cash Flow Summary (Unaudited) | Activity | Three Months Ended Mar 31, 2024 | Three Months Ended Mar 31, 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(1,749,920) | $(2,232,650) | | Net cash provided by (used in) investing activities | $1,476,448 | $(243,007) | | Net cash used in financing activities | $(83,735) | $(2,835) | | **Net change in cash** | **$(357,207)** | **$(2,478,492)** | [Notes to the Condensed Consolidated Financial Statements (Unaudited)](index=9&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) Notes detail accounting policies, segment performance across Gas-powered, Franchise, and Electric Boats, and significant customer concentration with **49%** of sales from three dealers - The company operates through three segments: **Gas-powered Boats** (Twin Vee, AquaSport), **Franchise** (Fix My Boat), and **Electric Boats** (Forza X1)[22](index=22&type=chunk)[24](index=24&type=chunk)[101](index=101&type=chunk) - In Q1 2024, three individual dealers accounted for **49%** of the company's total sales, indicating significant customer concentration[99](index=99&type=chunk) Segment Performance for Q1 2024 | Segment | Net Sales | Loss from Operations | | :--- | :--- | :--- | | Gas-Powered Boats | $5,276,343 | $(1,227,096) | | Franchise | $0 | $(772) | | Electric Boat and Development | $0 | $(1,315,339) | - The company has repurchase obligations under floor plan agreements totaling **$13.2 million** for **84 units** as of March 31, 2024[83](index=83&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the **41%** decline in Q1 2024 net sales due to reduced demand and product mix, while affirming sufficient liquidity for the next **24 months** Q1 2024 vs Q1 2023 Performance | Metric | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | Net Sales | $5,276,343 | $8,877,215 | (41%) | | Gross Profit | $277,314 | $1,609,558 | (83%) | | Loss from Operations | $(2,543,206) | $(2,369,523) | 7% | | Net Loss | $(2,335,194) | $(1,828,465) | 28% | - The decrease in net sales was due to a **39%** decrease in the number of boats sold and a shift in product mix towards lower-priced monohull boats[119](index=119&type=chunk) - Working capital decreased by **$3.5 million** to **$18.9 million** as of March 31, 2024, primarily due to development efforts at the non-revenue generating Forza subsidiary and investments in new boat molds[132](index=132&type=chunk) - Management believes that existing cash, cash equivalents, and marketable securities will be sufficient to finance operations for the next **24 months**[133](index=133&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, the company is not required to provide quantitative and qualitative disclosures about market risk - As a smaller reporting company defined by Rule 12b-2 of the Exchange Act, the company is not required to provide quantitative and qualitative disclosures about market risk[151](index=151&type=chunk) [Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls were ineffective as of March 31, 2024, due to material weaknesses in internal control over financial reporting, with a remediation plan underway - Management, including the CEO and CFO, concluded that disclosure controls and procedures were not effective as of March 31, 2024[152](index=152&type=chunk) - The ineffectiveness is due to material weaknesses related to not having retained sufficient staff with appropriate experience in GAAP presentation[152](index=152&type=chunk) - A remediation plan is being executed, which includes retaining a full-time Senior Staff Accountant, implementing a robust ERP system, and planning to hire a Controller during 2024[153](index=153&type=chunk) PART II—OTHER INFORMATION This section covers other material information, including legal proceedings, risk factors, and recent corporate developments [Legal Proceedings](index=32&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various civil litigations but does not consider any current proceedings material to its business or financial condition - The company is not currently a party to any legal proceedings that would be expected to have a material adverse effect on its business or financial condition[157](index=157&type=chunk) [Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) Key risks include a Nasdaq minimum bid price non-compliance notice, a history of operating losses, high dealer concentration, and material weaknesses in internal controls - On May 10, 2024, the company received a notice from Nasdaq for failing to maintain a minimum closing bid price of **$1.00** per share, with a compliance deadline of November 6, 2024[160](index=160&type=chunk) - The company has incurred significant recent losses, including a net loss of **$2.3 million** for Q1 2024, and had an accumulated deficit of approximately **$16.0 million** as of March 31, 2024[165](index=165&type=chunk) - The company depends heavily on its dealer network, with three dealers accounting for **49%** of total sales in Q1 2024, creating significant concentration risk[166](index=166&type=chunk)[167](index=167&type=chunk) - The company has identified material weaknesses in its internal controls and cannot provide assurance that these will be effectively remediated or that others will not occur[168](index=168&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=36&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered equity sales occurred, and IPO proceeds were reallocated from electric propulsion development and property acquisition to working capital and facility expansion - There were no unregistered sales of equity securities during the quarter ended March 31, 2024[175](index=175&type=chunk) - The company has reallocated proceeds from its 2021 IPO, with funds for a standalone electric propulsion system now designated for working capital, and funds for a new testing center to expand the current Fort Pierce manufacturing facility[178](index=178&type=chunk)[179](index=179&type=chunk) [Defaults Upon Senior Securities](index=37&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This item is not applicable as the company has no defaults upon senior securities to report - Not Applicable[182](index=182&type=chunk) [Mine Safety Disclosures](index=37&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's operations - Not Applicable[183](index=183&type=chunk) [Other Information](index=37&type=section&id=Item%205.%20Other%20Information) This section includes a Nasdaq minimum bid price non-compliance notice received on May 10, 2024, and confirms no Rule 10b5-1 trading arrangements by directors or officers - On May 10, 2024, the company received a written notice from Nasdaq for its common stock failing to maintain a minimum closing bid price of **$1.00** for **30 consecutive business days**[184](index=184&type=chunk) - The company has a **180-day** compliance period, until November 6, 2024, to regain compliance with the Nasdaq listing rule[184](index=184&type=chunk) - No director or officer of the Company adopted or terminated a Rule 10b5-1 trading arrangement during the first quarter of 2024[188](index=188&type=chunk) [Exhibits](index=38&type=section&id=Item%206.%20Exhibits) This section provides an index of exhibits filed with the Quarterly Report on Form 10-Q, including required certifications from executive officers - The Exhibit Index lists all documents filed with the report, including CEO and CFO certifications pursuant to Sarbanes-Oxley Act sections **302** and **906**[189](index=189&type=chunk)[191](index=191&type=chunk) [Signatures](index=39&type=section&id=SIGNATURES) This section contains the official signatures authorizing the filing of the report - The report was duly signed and authorized on May 15, 2024, by **Joseph C. Visconti**, Chairman and Chief Executive Officer, and **Michael P. Dickerson**, Chief Financial Officer[193](index=193&type=chunk)[195](index=195&type=chunk)

Financial Performance - Revenue for the three months ended March 31, 2024, decreased by 41% to $5,276,343 from $8,877,215 in the same period in 2023[6] - Consolidated net loss for the first quarter of 2024 was $2,335,194, compared to a net loss of $1,828,465 in the prior year, reflecting an increase of 28%[7] - The gas-powered boat segment reported a net loss of $1,163,957 for the three months ended March 31, 2024, compared to net income of $181,849 in the comparable prior year period[7] - Net sales for the three months ended March 31, 2024, were $5,276,343, a decrease of 40.5% compared to $8,877,215 in the same period of 2023[20] - Gross profit for the same period was $277,314, down 82.8% from $1,609,558 year-over-year[20] - Adjusted net loss for the three months ended March 31, 2024, was $(1,361,809), an improvement compared to $(1,465,835) in 2023[20] - The company reported a net loss of $(2,335,194) for Q1 2024, compared to a net loss of $(1,828,465) in Q1 2023, reflecting a 27.8% increase in losses[20] - Basic and dilutive loss per share for Q1 2024 was $(0.18), compared to $(0.12) in Q1 2023[20] Cash Flow and Reserves - Cash reserves decreased to $17,381,000 on March 31, 2024, down from $21,218,000 on December 31, 2023, primarily due to R&D spending and operational cash losses[6] - Cash used in operating activities decreased by 22% to $1,749,920 in Q1 2024 from $2,232,650 in Q1 2023[16] - The company is committed to reducing cash burn while making strategic investments in infrastructure and product development[5] Operating Expenses - Operating expenses decreased to $2,820,520 in Q1 2024 from $3,979,081 in Q1 2023, a reduction of 29.1%[20] - Stock-based compensation for Q1 2024 was $426,283, down from $482,964 in Q1 2023[20] - Depreciation and amortization increased to $425,281 in Q1 2024 from $218,276 in Q1 2023, reflecting a 95% increase[20] Assets and Liabilities - Total assets as of March 31, 2024, were valued at $36,454,000, while total liabilities were $6,313,649[16] Production and Investment - Twin Vee is expanding its Fort Pierce, FL manufacturing facility to increase production capacity and improve efficiency[5] - The company is investing in new models, including the Generation 2 GFX boats, to prepare for the next market upswing[5] Inventory and Marketable Securities - The company recorded a change in inventory reserve of $113,252 in Q1 2024, while there was no such change in Q1 2023[20] - The net change in marketable securities was $15,548 in Q1 2024, compared to $(8,034) in Q1 2023[20] Employee Productivity - The revenue generated per direct labor employee increased to approximately $103,000 in Q1 2024, compared to approximately $72,000 in Q1 2023[6]

Twin Vee Powercats Co. (NASDAQ:VEEE) Q1 2024 Results Conference Call May 15, 2024 12:00 PM ET Company Participants Joseph Visconti - President and CEO Michael Dickerson - CFO Operator Welcome to the Twin Vee PowerCats Company First Quarter 2024 Investor Call. As a reminder, this call is being recorded and all participants are in a listen-only mode. Your speaker for today's program is Joseph Visconti, President and CEO of Twin Vee PowerCats Company. Before I turn the call over to Joseph, please remember tha ...

EXHIBIT 99.1 Twin Vee PowerCats Co. Reports 4% Increase in Revenue for the Year Ended December 31, 2023 FORT PIERCE, FLORIDA, March 26, 2024 – Twin Vee PowerCats Co. (Nasdaq: VEEE) ("Twin Vee" or the "Company"), a designer, manufacturer and distributor of recreational and commercial power boats, today reported operational highlights and financial results for fiscal year ended December 31, 2023. Highlights for fiscal year 2023: The Company is pleased to report a 4% increase in consolidated revenue for the ye ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___ to ___ Commission file number 001-40623 TWIN VEE POWERCATS CO. (Exact name of registrant as specified in its charter) Delaware 27-1417610 (State or other jurisdiction of ...

Twin Vee PowerCats Co. (NASDAQ:VEEE) Q4 2023 Earnings Conference Call March 26, 2024 ET Company Participants Joseph Visconti - President & CEO Conference Call Participants Operator Welcome to Twin Vee PowerCats Co. Year End 2023 Investor Call. As a reminder, this call is being recorded and all participants are in a listen-only mode. Your speaker for today's program is Joseph Visconti, President and CEO of Twin Vee PowerCats Co. Before I turn the call over to Joseph, please remember that certain statements m ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to _______________ Commission File Number: 001-40623 TWIN VEE POWERCATS CO. (Exact name of registrant as specified in its charter) Delawar ...

Twin Vee PowerCats Co. (NASDAQ:VEEE) Q3 2023 Earnings Conference Call November 13, 2023 10:00 AM ET Company Participants Joseph Visconti - President and Chief Executive Officer Operator Welcome to the Twin Vee PowerCats Company Third Quarter 2023 Investor Call. As a reminder, this call is being recorded and all participants are in a listen-only mode. Your speaker for today's program are Joseph Visconti, President and CEO of Twin Vee PowerCats Company and Carrie Gunnerson, CFO of Twin Vee PowerCats Company. ...

Twin Vee PowerCats Co. (NASDAQ:VEEE) Q2 2023 Earnings Conference Call August 14, 2023 8:00 AM ET Company Participants Joseph Visconti - President & CEO Jim Leffew - President & CEO, Forza X1, Inc. Carrie Gunnerson - CFO Conference Call Participants Josh Horowitz - Palm Ventures Raj Maheshwari - Charleston Capital Operator Welcome to the Twin Vee PowerCats Company Second Quarter 2023 Investor Call. As a reminder, this call is being recorded and all participants are in a listen-only mode. Your speaker for tod ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to _______________ Commission File Number: 001-40623 Securities registered pursuant to Section 12(b) of the Act: TWIN VEE POWERCATS CO. (Exact ...