0001731122-26-000317
SEC filingTwin Vee Powercats Co. reported a net loss of $8.6 million for FY 2025, an improvement of 39% from a $14.0 million loss in FY 2024. Net sales increased 3% to $14.8 million, driven by a 7% increase in units sold to 93 boats, partially offset by a 5% decrease in average selling price. Gross profit improved significantly to $1.3 million (8.5% margin) from a loss of $0.8 million (-5.2% margin) in the prior year, reflecting cost reduction efforts and better utilization of manufacturing capacity. Operating expenses decreased 27% to $10.0 million, primarily due to reduced professional fees, salaries, and the discontinuation of electric boat R&D. The company ended the year with $1.6 million in cash and restricted cash, down from $7.7 million, and raised $2.6 million from a May 2025 equity offering. Management notes substantial doubt about the company's ability to continue as a going concern due to recurring losses and limited liquidity.
Twin Vee Powercats Co. reported FY 2025 net sales of $14.8 million, a 3% increase from $14.4 million in FY 2024. The company sold 93 boats during the year, up 7% from 87 boats in the prior year, though average selling price decreased approximately $7,800 (5%) due to the introduction of lower-priced 22-foot BayCat models and lower average prices on larger boats. Net loss improved to $8.6 million from $14.0 million in FY 2024, a 39% reduction. Basic and diluted loss per share improved to $4.37 from $11.01. The company's accumulated deficit increased to $34.0 million from $25.4 million. Operating loss was $8.8 million, a 40% improvement from $14.6 million in FY 2024.
Revenue growth was driven entirely by boat sales, which accounted for nearly 100% of net revenue. The company operates through a network of 17 independent dealers across North America, Hawaii, and Australia. During FY 2025, two individual dealers each represented over 10% of total sales and together accounted for 27% of total sales, compared to three dealers representing 40% of sales in FY 2024. The company introduced the 22-foot BayCat model in early 2025, which sold 15 units at below $100,000 average selling price. The company also acquired the Bahama Boat Works brand in June 2025 for $100,000 upfront payment plus contingent consideration based on future sales.
Gross profit improved significantly to $1.3 million (8.5% margin) from a loss of $0.8 million (-5.2% margin) in FY 2024. This improvement reflects ongoing cost reduction efforts, including bringing certain manufacturing operations in-house, better utilization of the ERP system, and direct labor leveraged against higher volumes. Operating expenses decreased 27% to $10.0 million from $13.8 million, primarily due to reduced professional fees (down 48% to $0.9 million), lower salaries and wages (down 12% to $4.3 million), and the discontinuation of electric boat research and development. Excluding impairment charges of $0.4 million in FY 2025 and $1.7 million in FY 2024, operating expenses decreased 21%.
Cash used in operating activities was $6.9 million in FY 2025, similar to $7.0 million in FY 2024. Cash used in investing activities was $1.6 million, primarily for property and equipment purchases including boat molds. Cash provided by financing activities was $2.4 million from the May 2025 equity offering. The company ended FY 2025 with $1.6 million in cash and restricted cash, down from $7.7 million at year-end 2024. Total assets were $16.2 million, down from $25.9 million, primarily due to the sale of the North Carolina building. Total liabilities were $2.8 million, including $0.5 million in Economic Injury Disaster Loan debt. Working capital was $2.7 million, down from $6.7 million.
Management notes substantial doubt about the company's ability to continue as a going concern due to recurring losses, negative cash flows, and limited liquidity. The company completed the sale of its Marion, North Carolina facility in October 2025, generating $0.5 million at closing with additional payments of $0.5 million in 2026 and $3.3 million in 2027 plus interest. In February 2026, the company completed a public offering raising approximately $2.5 million net proceeds. Strategic priorities include growing revenue while managing working capital, improving inventory turns, implementing cost controls, and expanding the dealer network. The company formed Black Line Defense in January 2026 to pursue defense and government contracts. Key risks include customer concentration, dependence on dealer network, competition, and economic conditions affecting discretionary spending.