Forza X1 has completed its merger with Twin Vee PowerCats Co, effective November 26 2024.
The merger has resulted in Forza X1 becoming a wholly owned subsidiary of Twin Vee.
In line with the completion of the merger, Forza’s common stock has been suspended from trading on the Nasdaq Capital Market.
The company has said it plans to delist from Nasdaq and deregister its shares.
Forza X1 has also announced the departure of its president, Dan Norton, without naming a successor.
The company is also facing delisting from The Nasdaq Stock Market LLC due to failure to meet the minimum bid price requirement.
The company has temporarily halted the development and sales of its electric boats to reduce costs.
Forza X1 is also exploring other joint ventures, collaborations and strategic alternatives to maximize shareholder value.
Our goal is to achieve a run rate of a consolidated adjusted net loss of $400,000 on a monthly basis.
Michael Dickerson
The company’s market capitalisation stands at around $3.31 million.
The merger has also led to changes in Twin Vee’s board, with Marcia Kull joining as a director.
The intention to merge was previously announced earlier in 2024 with the companies saying it will provide the merged organisations to have a strong balance sheet with no funded debt, providing a solid foundation for future investments and growth.
Revenue down 64%
The latest Twin Vee financial results for Q3 show consolidated revenue for Q3 decreased by 64% to $2,901,000 from $8,077,000 in Q3 2023.
The consolidated net loss for Q3, was $3,010,000, which includes Twin Vee’s Q3 net loss of $2,114,000 and Forza X1 Q3 net loss of $896,000.
Twin Vee adjusted net loss was $1,402,000 or $467,000 per month in Q3. Forza adjusted net loss was $427,000 or $155,000 per month in Q3.
The decrease in cash reserves was primarily due to the Twin Vee building expansion, new product development and merger related costs.
There were also operational cash losses from reduced revenue in the third quarter of 2024 and payments against vendor balances that had grown during the second quarter.
“The entire team is focused on reducing our operational cash burn by driving sales and reducing operating costs, while continuing to make smart investments in infrastructure, product development, and other revenue generating opportunities,” said Michael Dickerson, chief financial and administrative officer.
“While there can be no assurances, our goal is to achieve a run rate of a consolidated adjusted net loss of $400,000 on a monthly basis as we exit the first quarter of 2025.”
