Twin Vee PowerCats (US:VEEE)2025-11-06 21:12Financial Performance - For the three months ended September 30, 2025, net sales were $3,428,977, an increase from $2,901,318 in the same period of 2024, representing a growth of approximately 18.2%[18] - The gross loss for the three months ended September 30, 2025, was $(45,229), compared to a gross loss of $(145,657) in the same period of 2024, indicating an improvement in gross margin[18] - Total operating expenses for the three months ended September 30, 2025, were $2,731,466, down from $2,966,160 in the same period of 2024, reflecting a decrease of about 7.9%[18] - The net loss for the three months ended September 30, 2025, was $(2,755,513), compared to a net loss of $(3,009,907) in the same period of 2024, showing a reduction of approximately 8.4%[18] - For the nine months ended September 30, 2025, the net loss was $6,019,824, a decrease of 39% compared to a net loss of $9,864,298 for the same period in 2024[23] - The basic and diluted loss per share for the three months ended September 30, 2025, was $(1.23), compared to $(2.64) for the same period in 2024, indicating an improvement in loss per share[18] Cash and Assets - Cash and cash equivalents as of September 30, 2025, were $2,704,571, down from $7,491,123 as of December 31, 2024, indicating a decrease of about 63.9%[15] - Total assets as of September 30, 2025, were $18,894,710, a decrease from $25,887,905 as of December 31, 2024, representing a decline of approximately 27%[15] - Cash, cash equivalents, and restricted cash at the end of the period totaled $2,919,688, down from $11,357,892 at the end of September 2024[23] - As of September 30, 2025, the company had cash, cash equivalents, and restricted cash totaling $2,919,688, down from $7,706,240 as of December 31, 2024[44] - As of September 30, 2025, total property and equipment amounted to $8,716,923, a decrease from $15,037,798 as of December 31, 2024, reflecting a reduction of approximately 42.5%[70] Liabilities and Deficits - Total liabilities as of September 30, 2025, were $2,963,090, down from $6,671,055 as of December 31, 2024, indicating a reduction of about 55.6%[15] - The accumulated deficit as of September 30, 2025, was $(31,412,779), compared to $(25,392,955) as of December 31, 2024, reflecting an increase in the deficit of approximately 23.7%[15] - As of September 30, 2025, accrued liabilities totaled $599,044, a decrease of approximately 24.6% from $794,253 as of December 31, 2024[80] Inventory and Receivables - Total inventory as of September 30, 2025, was $2,664,032, slightly up from $2,650,792 at December 31, 2024, with a reserve for excess and obsolete inventory of $201,891[69] - Accounts receivable increased to $312,993 as of September 30, 2025, compared to $0 at December 31, 2024, with all receivables collected in early October 2025[50] - The company had a reserve for excess and obsolete inventories of $201,891 as of September 30, 2025, compared to $134,032 at December 31, 2024[51] Operating Costs and Expenses - Research and development costs for the three months ended September 30, 2025, were $0, a decrease from $89,403 for the same period in 2024[58] - Advertising costs for the three months ended September 30, 2025, were $17,299, down from $24,196 in the same period of 2024[57] - The company recorded an impairment of $360,151 for a building classified as held for sale as of September 30, 2025[56] - Depreciation and amortization expense for the three months ended September 30, 2025, was $419,825, compared to $440,458 for the same period in 2024, indicating a decrease of about 4.4%[70] - Operating lease cost for the three months ended September 30, 2025, was $97,721, down from $120,071 in the same period of 2024, representing a decline of approximately 18.5%[74] Corporate Developments - The company formed a new subsidiary, Wizz Banger, Inc., to develop an enhanced used boat marketplace leveraging recently acquired URLs[28] - On June 5, 2025, the company entered into an Asset Purchase Agreement to acquire assets from Bahama Boat Works for a total consideration of $3,000,000, including a $100,000 upfront payment[29] - The Company operates in two segments: Twin Vee PowerCats and Wizz Banger, Inc., focusing on recreational and commercial powerboats and an AI-driven online marketplace, respectively[111] - Wizz Banger, Inc. generated limited revenue and represented less than 10% of the Company's consolidated assets, revenues, and net loss for the nine months ended September 30, 2025[112] Financing and Credit - The company has a line of credit with Wells Fargo and Yamaha Motor Finance totaling $1,250,000 and $1,000,000, respectively, as of September 30, 2025[81] - The interest rate on the Wells Fargo line of credit was approximately 12.7% as of September 30, 2025, compared to 11.1% as of December 31, 2024[82] - The company has an outstanding SBA Economic Injury Disaster Loan of $499,900 with a 3.75% interest rate, with interest-only payments of $2,437 starting from October 22, 2022[85] Subsequent Events and Reporting - There were no additional material subsequent events reported between September 30, 2025, and November 6, 2025[115] - The Company is classified as a smaller reporting company and is not required to provide certain market risk disclosures[182]