Welcome to the Twin Vee PowerCats Company Year-End 2022 Investor Call. As a reminder, this call is being recorded and all participants are on a listen-only mode. Your speaker for today's program is Joseph Visconti, Chairman of the Board and CEO. Before I turn the call over to Joseph, please remember that certain statements made during this investor call are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements on this call, other than statements of historical facts, including statements regarding the company's future operations and financial position, business strategy, and plans and objectives of management for future operations are forward-looking statements. In some cases, forward-looking statements can be identified by terminologies such as beliefs, may, estimate, continue, anticipate, intend, should, plan, expect, predict, potential or the negative of these terms or other similar expressions. The company has based these forward-looking statements largely on our current expectations and projections about future events and financial trends that believes may affect its financial condition, results of operations, business strategy and financial needs. These forward-looking statements are subject to a number of risks and uncertainties and assumptions described, including those set forth in our filings with the Securities and Exchange Commission, which are available on our website at ir.twinvee.com. You should not rely upon forward-looking statements as predictions of future events. We cannot assure you that the events and circumstances reflect in the forward-looking statements will be achieved or occur. Finally, this conference call is being webcast. The webcast will be available in the Investor Relations section of our website at ir.twinvee.com for at least 90 days. Audiocast quality is subject to your equipment, available bandwidth, and Internet traffic. If you are experiencing unsatisfactory audio quality, please use the telephone dial-in option. A question-and-answer session will follow the presentation. Please note that only those that have dialed in via telephone may ask a question. Those listening via webcast will be unable to submit questions and must call in instead. [Operator Instructions]. I would now like to turn the call over to your host, Joseph Visconti.

Thank you and good morning to everyone on the call today. Thank you for joining us and taking the time to participate in our 2022 year-end financial results. Today, I'd like to update you all on the significant progress that we have made this year and our plan as we move forward in 2023. I will start by providing fourth quarter updates including product development, expansion plans, facility developments, and the financials of our company, and then we will conclude with the Q&A. As an overview of our business, the name Twin Vee has been synonymous with offshore catamaran boats for almost 30 years and is considered by many to be the best riding boats on the water. Under the brand name Twin Vee PowerCats, our company designs manufacturers themselves a variety of catamaran sport boats here in Fort Pierce, Florida. We currently offer gas-powered GFX and STX model lineup consisting of boats from 24-feet to 40-feet in length, and we currently employ approximately 170 people. So, let's jump right in. 2022 was an exciting breakout year for our company, and Twin Vee was hitting on all cylinders. We increased sales and product of units by over a 100%. We designed and produced many new models, including our largest Twin Vee ever our 400 GFX. We spun out our electric division and took Forza XI public on NASDAQ, raising an additional $17 million where Twin Vee maintains almost a 70% ownership of Forza. We opened many new dealers, including one of the largest retail boat dealers in the United States, OneWater Marine. We increased dealer expansion and distribution with a key hire Zach Crane that opened doors to dealers and distribution in our Northeast United States. We designed tooled and launched a new monohull boat brand named LFG Marine, with…

Thank you. At this time, we'll be conducting a question-and-answer session. [Operator Instructions] Our first question comes from Paul Johnson [ph], a private investor. Please proceed with your question.

Yes. Good morning. We spoke yesterday on the Forza call. Have a similar question just about the expected cash burn going forward, first of all.

On Twin Vee?

Yes.

So, we are not burning cash on Twin Vee. We broke even on a cash basis. So, everything that we're doing on Twin Vee including development of new models, launching LFG Marine, tooling the 28 dual console, we are not burning cash. I mean -- so we're not showing a large profit and we're showing a loss, with depreciation and amortization, but Twin Vee is not burning cash.

Okay. And you talked about inventory. I apologize, I joined the call late. Did you -- I didn't see the press release inventory numbers released, did you -- what is the year-over-year change in the inventory?

Significant. It was $1.9 million last year. It's approximately $4 million this year. A majority of that is motors, as we brought on Mercury. So, let me give you an example. Like, so, you're trying to bring these motor companies and there were times that boats are sitting and quality control waiting for the motor to show up and motors were getting drop shipped. And it got to the point that we just -- we're trying to over-order motors because of, keeping the boats leaving on a regular basis. So, when the supply chain kind of started fixing itself and you have multiple parallel paths, you got the supply chain working itself out, you got rising interest rates, you got a slowing of the economy and now these manufacturers for components and motors and composites and everything else are all kind of getting online and getting back caught up. So, now instead of them parsing out, smaller percentages to each one of their vendors, they're fulfilling large orders. So, our inventory grew from less than $2 million to $4 million in a matter of like three months. The good news is that all this material does not have a shelf life on it. It's all usable and has value. So, we've been meeting daily to reduce the inventory and I think you're going to start to see that inventory number come back down over the next couple of months.

Okay. And do you share backlog information through a year-over-year differences?

So, our backlog is dealers forecasting. So, we sit down once a year with every dealer or a dealer that comes online and we ask them for a forecasted amount of boats. And then we take those forecasted amounts and we build that into our production schedule. I will tell you that it's changing rapidly. Like, a year and a half ago we had almost probably a two year backlog. I would say it's around six months right now. And these are real orders. I mean, I could get a call tomorrow and a dealer could say, I'm not taking any more boats. And I can get a call tomorrow and have a dealer say, I need 20 more boats. So, it's not as predictable as it was a year ago. But we're a 100% on top of it. We need on a daily basis. We are managing our field inventory. We are pushed a turbo button on our sales and marketing. We're pulling every lever possible from sales incentives to broker competitions, to increased boat shows. I don’t know if you saw the Javis boat show. We were there, we looked incredible. Better than we've ever looked at any boat show ever. We had five boats there with all pop-ups, full staff, all dressed really nicely, and our sales and marketing department is killing it. And I think that's why we've been able to maintain our top line revenue numbers. There's a company called CCI Data that manages registrations for boats. And there are some boat companies that are down 70% in registrations. And if you go and look at Twin Vee, we're down about 20%. So, we're -- I feel like we're doing everything right. Could the economy get worse? Yes. But we are eyes wide open. We understand what the market is. The smaller boats are challenged to some extent. The boat clubs are still big buyers. So, we see a trend there. That's why we pivoted and start building these LFGs for the boat club. The larger boats are still selling briskly, so, we're focusing on our 34s and our 40s right now to maintain those top line numbers. And we're also looking for other opportunities in the marketplace that maybe a boat company didn't have the benefit of an IPO and having some money in the bank and maybe they tripped up. So, we're keeping our eyes open with those type of opportunities.

And you announced a million dollar repurchase program back in January. Did you -- have you purchased any shares at this point?

We did not. So, I mean, those are tough. Some investors like them, some don't. On smaller companies with limited cash, I get the optics of it. But on the other hand, if the stock was going to get pushed way down below a dollar, I'd rather have that stock come back into treasury when we have almost $1.20 in cash on the books. So that was kind of the methodology behind that repurchase. But we have not purchased a single share of stock.

Okay. And just one more question regarding Forza. So, obviously, they're a separate company in a sense now. And you -- and they've got their own funding, but how does it work if they need additional funding? Could that -- could they come to you as a majority owner and try to get some of that cash in the balance sheet? Or is that not an option?

It is an option. So, we are still filing consolidated financial, because Twin Vee is almost a 70% owner of the company. And so, like we spoke yesterday, I'd like to kind of keep the questions on Twin Vee because we had the Forza call, but like we spoke a couple days ago, Forza's runway is 18 months based on our current cap position at Forza.

Okay. Thank you.

[Operator Instructions] There are no further questions at this time. At this point, I'd like to turn the call back over to Joseph Visconti for closing comments. End of Q&A:

I want to thank everyone. I want to thank our employees for the hard work throughout the year. And we've been working extremely hard to maintain our growth through various avenues, new models, new products, a new brand. And we will continue to work hard for our shareholders. We appreciate your support, everyone. We are having a owner's appreciation day, and a sales event over the next month. So, we're going to send an invite out to all of our shareholders. We'd love to have you here. It's going to be on a Saturday. It's going to be a full day event where we're going to have boat rides and the facts that you'll be open and you can meet all of our leads and managers. So, we have every investor, but if you do not, please send your email to Glenn, glenn@twinvee.com, and we will make sure that you get an invite for this really special event that we're going to have for our stakeholders, shareholders, and dealers. So, thank you everyone. Have a great day.

This concludes today's conference. You may disconnect your lines at this time, and we thank you for your participation.