Welcome to the Twin Vee PowerCats Company Third Quarter 2024 Investor Call. As a reminder, this call is being recorded [Operator Instructions]. Your speakers for today's program are Chairman and CEO, Joseph Visconti, and Chief Financial and Administrative Officer, Michael P. Dickerson. 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 believes, may, estimates, continue, anticipates, intends, should, plan, expects, predict, potential or the negative of these terms or other similar expressions. The company has based these forward-looking statements largely on its current expectations and projections about future events future events and financial trends that it 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 its filings with the Securities and Exchange Commission which are available on the company's Investor Relations website at ir.twinvee.com. You should not rely upon forward-looking statements as predictions of future events. We cannot assure that the events and circumstances reflected in the forward-looking statements will be achieved or occur. Finally, this conference call is being webcast. The webcast will be available at ir.twinvee.com for at least 90 days. Audio cast quality is subject to your equipment available bandwidth and Internet traffic. [Operator Instructions]. I will now turn the call over to your host, Joseph Visconti.

Good afternoon, everybody, and thank you for joining our third quarter 2024 earnings call. I'm Joseph Visconti, Chairman and CEO of Twin Vee PowerCats. I'm here with our CFO, Michael Dickerson. Good afternoon, valued shareholders, partners, team members. I'd like to begin by expressing my sincere gratitude for your continued trust in Twin Vee PowerCats. It's been an extremely challenging quarter. But as we gather here today, I want to share with you not just our current position, but also our outlook for the future. As we all know, the recreational vehicle and boating industries have been grappling with turbulent retail environment, economic headwinds and inflationary pressures, and shifting consumer behaviors have made this one of the more difficult periods for the recreational vehicle market in recent memory. These challenges are not unique to Twin Vee but have affected the broader industry. We have worked diligently to navigate by rightsizing our business, lowering production to meet demand, and we cautiously manage that field inventory with our dealers. Dealers are experiencing record high levels of inventory. And in some cases, these dealers have asked to delay shipments as they work through operational challenges and reduce inventory levels. We have incorporated that into our plans and have reduced overhead to mirror the current demand for our products. I believe our industry is resilient. I believe demand will strengthen, and I also believe that the next 4 to 6 months will continue to be challenging, but there's light at the end of the tunnel. I feel our team has done a good job navigating this environment. Q3 was one of the toughest quarters I personally experienced as the CEO of Twin Vee since I acquired it 10 years ago, along with Q3 operational losses, the quarter includes the operational expenses due to winding…

Thanks, Joseph, and good afternoon, everyone. I'm going to walk you through Twin Vee's consolidated financials. On a consolidated basis, net sales were $2.9 million for the third quarter of 2024. A reduction of $5.2 million or 64% from the third quarter of 2023. This reduction is a continuation of a declining trend experienced all year a result of the challenging end markets that we described in our earnings release and Joseph described to you just now. During this third quarter, we sold 20 boats compared to 66% in the same period last year. With the change in focus last year towards bigger, higher-priced boats, sales are down less than a number of boats while the average sales price is up 17%, largely due to the increase in the average length of the boats sold. At these depressed sales levels, we generated a slightly negative gross margin as our cost-cutting efforts throughout the quarter didn't keep pace with the acceleration in the decline in sales. Throughout the third quarter, the company has been reducing expenses through reductions in headcount, research and development and discretionary spending, partially offset by investments to improve quality and bring harness assembly in-house. Overall, consolidated operating expenses are down $541,000 or 16% compared to the third quarter of 2023. This comparison includes a $99,000 increase in depreciation and $141,000 increase in professional fees, largely related to the merger of Twin Vee and Forza. Before the impact of these two items, third quarter 2024 consolidated operating expenses would have been down $781,000 or 28% compared to the prior year quarter. General and administrative expenses are down $220,000 or 22% and salaries and wages are about $586,000 or 34% compared to the third quarter of 2023, respectively. These overall reductions were achieved in both the Forza segment as…

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

Thank you. I want to thank our investors, stakeholders and employees for their continued support. And I want to thank everyone on the call. Have a great day. Thank you very much.

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