10-K: Twin Vee PowerCats Navigates Losses, Boosts Revenue 3% in 2025

Twin Vee PowerCats Co. reported a 3% revenue increase to $14.8 million in 2025, alongside continued net losses and strategic shifts including the acquisition of Bahama Boat Works and the formation of Black Line Defense.

Summary

• Net sales increased 3% to $14,819,130 for the year ended December 31, 2025, from $14,388,517 in 2024.
• The company sold 93 boats in 2025, a 7% increase compared to 87 boats sold in 2024, though the average price per unit decreased by approximately $7,800 (5%).
• Gross profit increased significantly by 267% to $1,257,105 in 2025, compared to a negative $751,425 in 2024, with gross profit margin improving to 8.5% from negative 5.2%.
• Operating expenses decreased by 27% to $10,038,404 in 2025, down from $13,800,344 in 2024, partly due to lower impairment charges and reduced research and development.
• Net loss improved by 39% to $8,607,273 in 2025, from $14,009,906 in 2024, resulting in a basic and diluted loss per share of ($4.37) compared to ($11.01).
• Cash and cash equivalents decreased significantly by 81% from $7,491,123 in 2024 to $1,431,578 in 2025.
• Working capital decreased by 60% from $6,671,151 in 2024 to $2,652,704 in 2025.
• The company completed the acquisition of Bahama Boat Works on June 5, 2025, for an upfront payment of $100,000 and up to $2,900,000 in contingent consideration.
• Wizz Banger, Inc., a wholly-owned subsidiary focused on a technology-enabled marine retail and valuation platform, was formed on March 26, 2025.
• Black Line Defense, a wholly-owned subsidiary targeting defense, security, and surveillance maritime platforms, was formed on January 22, 2026.
• The company successfully completed a public offering in May 2025, raising net proceeds of $2,555,101, and another in February 2026, raising approximately $2,540,109.
• A North Carolina building was sold on October 31, 2025, generating $500,000 cash upfront and future payments totaling $3,750,000.
• Nasdaq compliance for the minimum bid price requirement was regained in April 2025 following a 1-for-10 reverse stock split.
• Management identified material weaknesses in internal controls over financial reporting due to inadequate staffing levels and noted substantial doubt about the company's ability to continue as a going concern.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a company facing severe financial distress, evidenced by continued substantial losses, a going concern warning, and a sharp decline in cash. While revenue growth and gross margin improvement are positive, they are insufficient to offset the underlying issues, and recent capital raises are highly dilutive.

Positives

• Net sales increased by 3% to $14,819,130 in 2025.
• The number of boats sold increased by 7% to 93 units in 2025.
• Gross profit improved significantly by 267% to $1,257,105 in 2025, turning from a loss to a profit.
• Gross profit margin improved to 8.5% in 2025 from negative 5.2% in 2024.
• Operating expenses decreased by 27% in 2025, reflecting cost reduction efforts.
• Net loss improved by 39% in 2025, and basic/diluted loss per share improved by 60%.
• The acquisition of Bahama Boat Works diversifies the product offering with V-hull boats.
• Strategic initiatives like Wizz Banger (AI-driven marine retail platform) and Black Line Defense (defense maritime platforms) aim to expand market reach and leverage new technologies.
• Regained compliance with Nasdaq's minimum bid price requirement in April 2025.
• Successfully raised capital through public offerings in May 2025 ($2,555,101 net) and February 2026 (approximately $2,540,109 net).
• The sale of the North Carolina building generated $500,000 in cash upfront and secured future payments of $3,750,000.
• Reduced net inventory levels and outstanding obligations to suppliers in 2025.

Negatives

• The company incurred a net loss of $8,607,273 in 2025 and an accumulated deficit of $34,000,228 as of December 31, 2025.
• There is substantial doubt about the company's ability to continue as a going concern.
• Cash and cash equivalents decreased by 81% from $7,491,123 in 2024 to $1,431,578 in 2025.
• Working capital decreased by 60% from $6,671,151 in 2024 to $2,652,704 in 2025.
• The average price per boat sold decreased by 5% in 2025, primarily due to the introduction of lower-priced models.
• The company is highly dependent on a few dealers, with two individual dealers representing 27% of total sales in 2025 and three representing 40% in 2024.
• Material weaknesses in internal controls over financial reporting were identified due to inadequate staffing.
• Incurred a net loss of approximately $14,875 from the sale of five repossessed boats in Q2 2025.
• An ongoing putative class action complaint related to the Forza merger seeks unspecified damages.
• The company's stock price has been volatile and thinly traded, and recent capital raises were highly dilutive.
• The electric boat development through Forza X1, Inc. was discontinued.

Risks

• The company has incurred losses for the years ended December 31, 2025 and 2024, and could continue to incur losses in the future.
• The ability to meet manufacturing workforce needs is crucial to results of operations and future sales and profitability, with competition for skilled employees and potential unionization being concerns.
• Limited public information on the company's operating history makes evaluating its business and prospects difficult.
• Interest rates and energy prices affect product sales, operating expenses, and raw material costs, potentially reducing demand for gas-powered boats.
• Annual and quarterly financial results are subject to significant fluctuations due to seasonal consumer demand, discretionary spending, pricing changes, manufacturing disruptions, competitive conditions, weather, labor costs, and fuel prices.
• Dependence on a network of independent dealers, increasing competition for dealers, and limited control over their activities pose risks, including the potential loss of significant dealers.
• Success depends, in part, upon the financial health of dealers and their continued access to financing.
• Unfavorable weather conditions may have a material adverse effect on business, financial condition, and results of operations, especially during the peak boating season.
• A natural disaster, the effects of climate change, or other disruptions at the sole manufacturing facility could adversely affect business.
• Failure to manage manufacturing levels while addressing the seasonal retail pattern for products could negatively impact business and margins.
• The company has a large, fixed cost base that will affect profitability if sales decrease.
• The company may be required to repurchase inventory of certain dealers, as demonstrated by the Northpoint Commercial Finance LLC request in April 2025.
• Termination or interruption of informal supply arrangements with third-party suppliers could have a material adverse effect on business or results of operations.
• Significant product repair and/or replacement due to product warranty claims or product recalls could have a material adverse impact on results of operations.
• The nature of the business exposes the company to workers' compensation claims and other workplace liabilities due to handling hazardous substances.
• Inability to comply with environmental and other regulatory requirements could expose the business to material liability and/or fines.
• The powerboat industry is characterized by intense competition, affecting sales and profits, including competition from larger manufacturers and used boats.
• Failure to meet the continued listing requirements of The Nasdaq Capital Market could result in a de-listing of common stock.
• Identified weaknesses in internal controls, and there is no assurance these will be effectively remediated or that additional material weaknesses will not occur.
• As an emerging growth company, the company is not required to comply with certain reporting requirements, which may make its common stock less attractive to investors.
• The stock price has fluctuated in the past, has recently been volatile, and may be volatile in the future, leading to substantial losses for investors.
• Provisions in corporate charter documents and under Delaware law could make an acquisition of the company more difficult and may prevent attempts by stockholders to replace or remove current management.
• Reliance on complex machinery for operations involves a significant degree of risk and uncertainty in terms of operational performance, safety, security, and costs.
• The company may need to raise additional capital that may be required to grow its business, and there is no assurance it will be able to raise capital on acceptable terms or at all, leading to potential dilution.
• Failure to manage future growth effectively could materially and adversely affect business, prospects, operating results, and financial condition.
• Dependence upon executive officers; inability to retain them and their knowledge of business and technical expertise would be difficult to replace.
• Certain shareholders, including the Chief Executive Officer, have sufficient voting power to significantly influence corporate governance decisions.
• Attempts to grow business through acquisitions or strategic alliances may not be successful in completing or integrating.
• Inability to comply with regulatory requirements governing government contracts and public procurement could expose the business to material liability and/or fines.
• Reliance on network and information systems and other technologies for business activities, with risks from computer hackings, viruses, or other destructive or disruptive software or activities.
• Uninsured losses could result in payment of substantial damages, decreasing cash reserves and harming cash flow and financial condition.
• Investments in artificial intelligence (AI), such as the Wizz Banger platform, may not be successful and raise ethical, reputational, and legal concerns.
• The company is currently, and may in the future be, subject to substantial litigation, regulatory actions, government investigations, and similar actions.
• A significant portion of intellectual property for gas-powered motor products is not protected through patents or formal copyright registration.
• Use of open-source software in applications could subject proprietary software to general release, adversely affect ability to sell services, and lead to litigation.
• Confidentiality agreements with employees and others may not adequately prevent disclosure of trade secrets and other proprietary information.
• The company may need to defend itself against patent, copyright, or trademark infringement claims, which may be time-consuming and costly.
• Sales may be adversely impacted by increased consumer preference for other leisure activities or used boats, or by the supply of new boats by competitors in excess of demand.
• Sales and profitability depend, in part, on the successful introduction of new products.
• Success depends upon the continued strength and value of the brand; negative publicity could diminish sales.
• Inability to execute the manufacturing strategy successfully could cause the profitability of products to suffer.
• The common stock has often been thinly traded, so investors may be unable to sell at or near ask prices or at all.
• No intention to pay dividends on common stock for the foreseeable future.
• FINRA sales practice requirements may limit the ability to buy and sell common stock, which could depress the price.
• The Certificate of Incorporation provides that the Court of Chancery of the State of Delaware will be the exclusive forum for certain types of state actions, which could limit stockholders' ability to obtain a favorable judicial forum.

Future Outlook

The company intends to capitalize on the broader marine industry by developing new and innovative products in its core market, aiming for increased sales and margin expansion. The near-term product development strategy focuses on reaching underserved segments of the catamaran and monohull powerboat categories. It plans to introduce new products with increased versatility and functionality to appeal to a wider customer base. The company will continue to strengthen its dealer network and aims to revolutionize the marine industry with its Wizz Banger technology-enabled retail and valuation platform. International sales are expected to grow by promoting products in developed markets and those with rising consumer incomes, with new product offerings specifically targeting international consumers. Management's priority for the next year is to grow the revenue base while managing working capital and improving inventory turns. A strategic steering committee has been formed to advance autonomous marine technologies, and the Black Line Defense subsidiary will pursue opportunities with government defense and security agencies.

Management Comments

• "We believe our company, founded in 1996, has been an innovator in the recreational and commercial power catamaran industry."
• "We believe that the performance, quality and value of our boats position us to achieve our goal of increasing our market share and expanding the power-boat market."
• "We believe that these features, combined with a catamarans soft ride, results in Twin Vees renowned efficiency and smooth, seaworthy safety." (referring to twin-hull design)
• "We believe that a more unified valuation framework could positively impact several parts of the marine transaction process." (referring to Wizz Banger)
• "We view our dealers as our partners and product champions."
• "We believe we have a brand that will have natural growth in international markets."
• "Both 2025 and 2024 were challenging years with overall boat production down from previous periods."
• "We reduced both variable and fixed operating costs, including shutting down the Forza research and development operation."
• "The deleveraging of our fixed costs on such a low revenue base led to continued losses."
• "We have reduced our head count to match current production levels and continue to right-size the business for the current state of the economy, while keeping our core strengths intact."
• "Our priority over the next year is to grow our revenue base while managing working capital, including improving inventory turns."
• "Despite our ongoing efforts to mitigate these conditions, there can be no assurance that our expenses will not increase in future periods or that the cash generated from operations in future periods will be sufficient to satisfy our operating needs." (Regarding going concern)
• "Management has developed and is executing a remediation plan to address the previously disclosed material weaknesses, due to inadequate staffing levels." (Regarding internal controls)

Industry Context

StockSavvy.ai notes that the powerboat industry, including the performance sport boat category, is highly competitive and demand is highly volatile, influenced by general economic conditions, consumer confidence, and discretionary income. The reported 9.59% decline in new watercraft sales in the U.S. in 2024, and a 9.26% decline in the saltwater outboard market, indicates a challenging environment. Twin Vee's strategic diversification into V-hull boats (Bahama Boat Works) and the development of a marine retail platform (Wizz Banger) and defense subsidiary (Black Line Defense) are attempts to counter these industry headwinds and tap into new growth areas, particularly the expected 5.8% CAGR in the global catamaran market and government defense spending. The shift away from electric boat production by Forza X1 reflects the nascent and potentially challenging nature of that specific segment.

Comparison to Industry Standards

• The U.S. new watercraft sales declined by 9.59% in 2024 compared to 2023, and the saltwater outboard market declined by 9.26% in 2024.
• The global catamaran market is projected to expand at a compound annual growth rate (CAGR) of 5.8% from 2022 to 2030, with the U.S. catamaran market at 5.4% CAGR for the same period.
• U.S. outboard engine sales were $3.8 billion in 2023, experiencing a 1.6% decline over 2022.
• The company's 3% revenue growth in 2025, while positive, contrasts with the broader industry declines reported for 2024, suggesting potential market share gains or resilience in its specific niches, but the overall market remains challenging.

Management Changes

Corporate Governance

Legal Proceedings

• On March 10, 2025, shareholders Nabeel Youseph and Marisa Hardyal-Youseph commenced a putative class action complaint in the Court of Chancery in the State of Delaware against Joseph Visconti, Kevin Schuyler, Neil Ross, Twin Vee PowerCats Co., and Twin Vee PowerCats, Inc.
• The complaint alleges breach of fiduciary duty by defendants in their capacities as controlling shareholders, directors, and an officer of Forza X1, Inc., related to its merger with Twin Vee.
• Plaintiffs are seeking an unspecified award of damages, plus interest, costs, and attorneys' fees.
• Defendants deny the allegations and intend to vigorously defend against the claims.
• The company is currently unable to estimate or project the ultimate outcome of this matter, as it is in the pleadings stage.

Related Party Transactions

• The company leases its office and production facilities in Fort Pierce, Florida, from Visconti Holdings, LLC, an entity solely owned by Joseph C. Visconti, the CEO. The lease was amended on December 30, 2025, to a month-to-month tenancy at $36,456 per month plus tax, while a new agreement is negotiated.
• Prior to the November 26, 2024 merger, Twin Vee received a variable average monthly fee of $41,593 from Forza X1, Inc. for management services from January 1, 2024, until the merger date. This fee ceased after the merger.
• Forza X1, Inc. had a month-to-month lease for a duplex in Black Mountain, NC, for $2,500 per month, which was with James Leffew (then president of Forza) from August 2023. The lease expense was $7,500 in 2024 and $0 in 2025, as it was canceled in March 2024.

Stakeholder Impact

• Shareholders face significant dilution from recent capital raises and continued financial losses, coupled with a 'going concern' warning, indicating high investment risk.
• Employees may experience job insecurity due to headcount reductions and 'right-sizing' efforts, although the company aims to attract and retain skilled labor.
• Customers may benefit from new boat models and diversified product offerings, as well as the planned Wizz Banger platform designed to streamline the boat buying/selling process.
• Dealers are critical partners, and their financial health directly impacts the company's sales. New dealer agreements with performance criteria aim to strengthen the network, but repurchase obligations for repossessed inventory remain a risk.
• Creditors face elevated risk due to the company's substantial accumulated deficit and the explicit 'going concern' doubt, although the sale of the North Carolina building provides some future cash flow.
• Regulatory bodies will continue to monitor the company's compliance with Nasdaq listing rules, SEC reporting requirements, and environmental/safety regulations, especially given the identified material weaknesses in internal controls.

Next Steps

• Continue efforts to recruit high-quality boat dealers and establish new dealers and distributors domestically and internationally.
• Launch new products and features multiple times during the year to enhance reputation and drive consumer interest.
• Develop a new product line to reach underserved segments of the catamaran and monohull powerboat category.
• Introduce new products with increased versatility, functionality, and performance to appeal to a more expansive customer base.
• Revolutionize the marine industry with the Wizz Banger technology-enabled marine retail and valuation platform.
• Increase sales in international markets by promoting products in developed markets and those with rising consumer incomes (e.g., Australia, Europe, Israel, Dubai, Brazil).
• Develop new product offerings specifically targeting international consumers.
• Market the remaining repossessed boat for sale, with an expectation to fully recover the repurchase obligation.
• Implement cost controls, operational improvements, and revenue initiatives to strengthen the financial position.
• Prioritize growing the revenue base while managing working capital and improving inventory turns over the next year.
• The Strategic Steering Committee will explore, evaluate, and identify potential technology partners in the autonomous and AI space.
• The Black Line Defense subsidiary will pursue opportunities with the U.S. Department of Defense, Homeland Security, and allied agencies.
• Negotiate a subsequent lease agreement for the Fort Pierce facility, currently operating on a month-to-month tenancy.
• Remediate identified material weaknesses in internal controls over financial reporting by increasing finance department staffing and testing controls.
• Collect subsequent payments from the sale of the North Carolina building: $500,000 in October 2026 and $3,250,000 in October 2027, plus accrued interest.

Key Dates

Recommendation

The company faces severe financial challenges, including substantial and ongoing net losses, a significant accumulated deficit, and an explicit 'going concern' warning from its auditors and management. Cash and working capital have declined dramatically, necessitating highly dilutive capital raises at low prices. While there are strategic initiatives and some operational improvements (revenue growth, gross margin improvement), these are insufficient to overcome the fundamental financial instability and high execution risk. The identified material weaknesses in internal controls further compound the risk profile, making the stock a high-risk investment with significant downside potential.

Keywords

Powerboats, Catamarans, Boat manufacturing, Marine industry, SEC filing, Financial results, Corporate governance, Risk factors, Nasdaq compliance, Capital raise, Wizz Banger, Black Line Defense, Bahama Boat Works, Joseph Visconti, Financial performance, Stock split, Internal controls, Going concern, Litigation, Cybersecurity, AI, Recreational boating, Commercial boating