Forza X1(FRZA) - 2024 Q1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company's cash burn rate has been significantly reduced from approximately $600,000 per month last year to about $230,000 per month in Q1 2024, with a target to reach less than $150,000 per month by the end of Q2 2024 [13] Business Line Data and Key Metrics Changes - Electric boat sales remain relatively small compared to traditional outboard combustion motors, with only 200 electric boats sold in the U.S. in 2023, 90% of which were small horsepower boats primarily in California [5][12] Market Data and Key Metrics Changes - The marine industry is experiencing lower demand for recreational vehicles due to economic uncertainties and shifting consumer priorities, leading to a noticeable market slowdown for electric boats [5] Company Strategy and Development Direction - The company is actively seeking strategic alternatives to leverage its technology, including exploring joint ventures with companies that have complementary technologies or market access [7] - Construction of a new 60,000 square foot facility in North Carolina is ongoing, with the belief that completing the building will provide better value for shareholders than leaving it unfinished [17][18] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges posed by low demand for marine EV products and the overall slowdown in the recreational marine industry [13] - The company is adjusting its business to minimize cash burn while pushing forward with the final beta product and completing the Marion facility [18] Other Important Information - The company is collaborating with technology firms specializing in battery technology and propulsion systems to enhance product offerings and share development costs and risks [18] - The entry of large motor manufacturers like Yamaha and Mercury into the marine EV space is noted, indicating increased competition [16] Q&A Session Summary - No specific questions or answers were provided in the content regarding the Q&A session [8]