Earnings

Twin Vee's Third-Quarter Boat Sales Collapse

The Tip Desk · November 11, 2026 · 4 min read

Net sales were $2.77 million as 10 boats at an average $277,000 replaced 31 units a year earlier.

Twin Vee PowerCats Co. (VEEE), a designer and manufacturer of recreational and commercial power boats, reported net sales of $2,772,092 for the three months ended September 30, 2026, down 19% from $3,428,977 a year earlier.

The company sold 10 boats at an average price of about $277,000, compared with 31 units at about $149,000 in the year-ago quarter. It attributed the sales decline primarily to elevated interest rates and higher gas prices affecting consumer demand. The higher average price reflected a shift in mix: three boats of 24 feet or less were sold in the third quarter of 2026 versus 12 in the third quarter of 2025.

That sequential path followed a steeper second-quarter drop. Sales in the three months ended June 30, 2026 were $3,128,374 after a 34% year-over-year decline, with 15 boats sold. Unit volume fell further to 10 in the third quarter.

Gross loss widened to $377,338, or 13.6% of sales, from a $45,229 loss, or 1.3% of sales, a year earlier. Gross margin had already been negative 5.8% of sales in the second quarter. The company said the 14.9-point year-over-year margin decline was primarily the unfavorable leverage of lower boat sales on fixed overhead.

Loss from operations rose 12% to $3,108,876 from $2,776,695. Net loss increased 9% to $3,013,052 from $2,755,513. Basic and dilutive loss per share was $5.19, adjusted for the May 4, 2026 1-for-37 reverse stock split, compared with $45.57 a year earlier.

Total operating expenses were essentially unchanged at $2,731,538 versus $2,731,466 a year earlier. Declines in salaries and wages and a $360,151 impairment in the third quarter of 2025 were offset by higher legal and other expenses tied to the proposed merger with USFM Corporation, ratification of a defective Nevada reincorporation, the May 2026 reverse stock split, and associated defective corporate acts. Professional fees rose 511% to $1,263,287 from $206,798. Salaries and wage-related expenses fell 59% to $415,587 from $1,016,894, including the conversion of the prior chief financial officer to consultant status.

Dealer concentration eased slightly. Three dealers each accounted for more than 10% of sales and together 77% of total sales in the quarter ended September 30, 2026, versus four dealers and 83% a year earlier.

Cash, cash equivalents and restricted cash declined to $1,828,616 as of September 30, 2026 from $3,929,427 as of June 30, 2026, after three first-quarter equity offerings netted $5,800,025 and continued operating losses. Working capital was $2,202,811 as of September 30, 2026, down from $2,652,704 at December 31, 2025. Current liabilities rose 95.6% to $4,390,843. The accumulated deficit was $42,005,570.

The company said its unaudited condensed consolidated financial statements were prepared under a going-concern assumption and that significant operating losses and expected expense increases raise substantial doubt about its ability to continue as a going concern for one year after the report is issued. It cited three first-quarter equity offerings, the $1,828,616 cash balance, and expected payments from the sale of its Marion, North Carolina facility, including $500,000 in 2026 and $3,250,000 in 2027 plus 5% interest.

On October 8, 2026, Twin Vee extended the consulting agreement of Michael P. Dickerson, former chief financial and administrative officer, through December 31, 2026 at $25,000 a month, with him serving as interim chief financial officer. The compensation committee revised Chief Executive Officer Joseph Visconti’s base salary to $250,000 and made him eligible for a $150,000 bonus upon closing of the USFM merger agreement dated July 12, 2026 and amended October 7, 2026.

On September 8, 2026, after stockholder ratification, the company filed a Certificate of Validation giving effect to the 1-for-37 reverse stock split as of May 4, 2026, following revocation of the defective Nevada reincorporation. A Nasdaq Hearings Panel had found the company in compliance with listing rules on June 17, 2026.

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