Twin Vee PowerCats Co. (Twin Vee) is a designer, manufacturer and marketer of recreational and commercial power catamaran boats.
The company’s twin-hull catamaran running surface, known as a symmetrical catamaran hull design, adds to the Twin Vee ride quality by reducing drag, increasing fuel efficiency and offering users a stable riding boat. Twin Vee’s home base operations in Fort Pierce, Florida is a 7.5-acre facility with several buildings totaling over 75,000 square feet.
The company has...
Twin Vee PowerCats Co. (Twin Vee) is a designer, manufacturer and marketer of recreational and commercial power catamaran boats.
The company’s twin-hull catamaran running surface, known as a symmetrical catamaran hull design, adds to the Twin Vee ride quality by reducing drag, increasing fuel efficiency and offering users a stable riding boat. Twin Vee’s home base operations in Fort Pierce, Florida is a 7.5-acre facility with several buildings totaling over 75,000 square feet.
The company has organized its business into three operating segments: (i) the company’s Gas-powered Boat segment, which manufactures and distributes gas-powered boats; (ii) the company’s Electric-powered Boat segment, which is developing fully electric boats, through the company’s controlling interest subsidiary, Forza X1, Inc., a Delaware corporation (‘Forza’); and (iii) the company’s Franchise segment, which is developing a standard product offering and will be selling franchises across the United States through the company’s wholly owned subsidiary, Fix My Boat, Inc., a Delaware corporation. Initially Forza was also the company’s wholly owned subsidiary that became a majority owned subsidiary in August 2022. The company’s ownership is 44% of the outstanding common stock of Forza, and is considered a controlling interest.
The company’s gas-powered boats allow consumers to use them for a wide range of recreational activities, including fishing, diving and water skiing and commercial activities, including transportation, eco tours, fishing and diving expeditions. The company primarily sells its boats through a network of 20 independent boat dealers in 34 locations across North America and the Caribbean who resell the company’s boats to the end user Twin Vee customers. The company continues recruiting efforts for high quality boat dealers and seeks to establish new dealers and distributors domestically and internationally to distribute the company’s boats as the company grows its production and introduce new models. The company’s gas-powered boats are outfitted with gas-powered outboard combustion engines.
Due to the growing demand for sustainable, environmentally friendly electric and alternative fuel commercial and recreational vehicles, the company’s controlling interest subsidiary, Forza, is designing and developing a line of electric-powered boats utilizing the company’s electric vehicle (‘EV’) technology to control and power the company’s boats and proprietary outboard electric motor.
Segments
Gas-powered Boats
The company’s Gas-powered Boat segment accounted for 100% of the company’s net revenue in fiscal years 2023 and 2022. In 2023, the company’s gas powered segment had locations in Fort Pierce, Florida, and White Bluff, Tennessee. The company has been an innovator in the recreational and commercial power catamaran industry. The company has 19 gas-powered models in production ranging in size from the company’s 24-foot, dual engine, center console to the company’s 40-foot offshore 400 GFX, in 2023 the company added 8 mono hull models to the company’s line up. The company’s twin-hull catamaran running surface, known as a symmetrical catamaran hull design, adds to the Twin Vee ride quality by reducing drag, increasing fuel efficiency and offering users a stable riding boat. The company’s home base operations for its gas-powered boats is in Fort Pierce, Florida and is a 7.5-acre facility with several buildings totaling over 75,000 square feet.
During the 2023 fiscal year, the company focused its efforts on increased throughput through the company’s facility, and fully integrating the new models that the company introduced in 2023. In February 2023, the company announced its launch of the company’s new AquaSport, a new-monohull boat brand that will initially include a 22-foot center console monohull, a 25-foot dual console, single-engine day boat, a 22-foot dual console monohull and a 25 foot deck boat, single engine. The company delivered its first monohull boats in January of 2023. In May of 2023, the company entered into a finance lease, securing the rights to the AquaSport brand and facility in White Bluff, Tennessee. The AquaSport brand is expected to appeal to first-time boat buyers, the freshwater market, and consumers that prefer a monohull boat opening a significantly larger portion of the market share to Twin Vee.
During the year ended December 31, 2023, one individual dealer had sales of over 10% of the company’s total sales, and one customer represented 10.3% of total sales.
Twin Vee’s Twin-Hull Shape
Twin Vee catamaran boats are designed for a dry and smooth ride. As a Twin Vee moves through the water, the boat’s symmetrical catamaran hull has lifting strakes on the side of each hull. Lifting strakes are known to produce lift at the bow of a boat by displacing water, allowing the boat to, in essence, glide above the water rather than lumber through it. Twin Vee’s lifting strakes work to not only create lift, but also to make the ride smoother. The forward motion of a catamaran boat lifts water up towards the top of the tunnel while pushing the water inward to form two counter-flowing vortexes. As these vortexes are being formed, the Twin Vee hull design aerates these vortexes with small air bubbles, which are then compressed at an increasing rate as the vortexes move down the tunnel. It is the kinetic energy stored in these compressed air bubbles, which creates a smooth and stable ride. As speed increases, the kinetic energy increases at a non-linear rate as more and more air is induced into the increasingly faster flowing vortexes. The trailing surfaces the Twin Vee hulls are specifically designed to facilitate propulsion efficiency by discharging the kinetic energy and air bubbles from the counter-flowing vortexes upon exiting astern, thus providing the propellers with a steady flow of super clean and highly ordered water.
This fact, combined with a catamaran’s soft ride, results in Twin Vee’s renowned efficiency and smooth, seaworthy safety. At speed, the Twin Vee’s displacement hull slices through the water, traveling with the shape of the seas rather than flying over them and experiencing reentry shock. This results in a stable and smooth ride.
Twin Vee’s Monohull
The company expects its new monohull line to appeal to first-time boat buyers, the freshwater market and consumers that prefer a monohull boat. This new monohull brand will be selling into a much larger portion of the market.
Franchise
The company’s Franchise segment is being developed and the company plans to utilize a franchise model for marine mechanics across the country through the company’s wholly owned subsidiary, Fix My Boat, Inc.
Electric-Powered Boats
The intention of Forza is to inspire the adoption of sustainable recreational boating by producing stylish electric sport boats. Forza is focused on the creation, implementation and sale of electric boats utilizing the company’s electric vehicle (‘EV’) technology to control and power its boats and proprietary outboard electric motor. Forza’s electric boats are being designed as fully integrated electric boats, including the hull, outboard motor and control system.
Forza was initially the company’s wholly owned subsidiary and prior to Forza’s incorporation on October 15, 2021, it operated as the Electra Power Sports Division of Twin Vee. Following the company’s initial public offering that closed on July 23, 2021, the company determined in October 2021 that for several reasons that include, but are not limited to, avoiding confusion in the marketplace between the company’s legacy gas-powered line of boats, that the company would market its new independent line of electric boats under a new brand name (and new subsidiary) separate and apart from the company. Twin Vee and Forza X1 brands are unique in their own way, including (i) the profile of the targeted Forza X1 customer who is environmentally conscious and would purchase an electric boat versus gas-powered model, (ii) the marketing and sales strategy of each company, and (iii) Twin Vee’s use of a third-party dealer network whereas Forza X1 plans on implementing a digital direct to consumer model. In addition, electric powered boats will require a specific and unique level of training and knowledge for supporting and servicing the technical and warranty claims that might arise. The service and support of gas and electric powered boats are very different, and it became clear to the company that Forza required its own unique brand.
As of December 31, 2023, Forza has built-out and tested multiple Forza units, including: three offshore-style catamarans, two bay boat-style catamarans, one deck boat and three 22-foot center console (F22) monohulls. In addition, the company has also electrified two pontoon boats for a major national pontoon manufacturer. The company is in the process of an additional pontoon electrification project and is building an additional five monohulls. Each build cycle includes improvements and involves extensive duration and performance testing.
In late 2023 – early 2024, Forza’s outboard motor underwent an extensive redesign. This new design incorporates a new simplified frame structure that uses stacked custom castings which are sealed for increased durability and corrosion protection. The overall shape of the motor and cowlings have been updated, and the cowlings redesigned to facilitate higher volume manufacturing processes such as thermoform and injection molding. Furthermore, the motor cooling circuits have been improved to optimize cooling flow rates to the inverter, which aims to extend time on the water in a single charge. The Forza team has hired an outside consulting agency that employs many experienced outboard engineers and analysists. They have contributed input on the new design and have collaborated on the development of the design verification plan. The engine design and lower units and the control systems are continuously improved with each iteration. Cooling system improvements have also been prioritized and have yielded a myriad of benefits to runtime, speed, and range. The company continues to iterate the engine design, including value engineering of parts and lightweighting of engine components.
Moreover, Forza’s propulsion system is undergoing extensive design verification testing. This plan consists of over 100 different tests, including safety critical operational testing, long term 2000-hour endurance tank testing, log strike testing, wave hop simulation testing, corrosion mitigation, extreme temperature testing and user interface / sea trial runs.
The system successfully passed the initial rounds of safety critical operational testing, cooling testing and is tracking for a successful endurance testing using the company’s tank station.
Later in the summer of 2024 the new motor design is expected to be sent to a third party test lab and will undergo a series of log strike simulations, which is a critical milestone in the company’s verification process.
The company is sourcing a lab that will conduct a comprehensive wave hop simulation test which is another important step in the verification process.
Strategy
The company’s strategies are to develop new and innovative products in the company’s core market; increase the power boat category segment; capture additional share from adjacent boating categories; effectively manage dealer inventory and further strengthen the company’s dealer network; and increase the company’s sales in international markets.
EV/Forza Specific Strategy
Forza plans to market and sell its model offerings in a variety of ways. One way will be to operate in a fundamentally different manner and structure than traditional marine manufacturers and boat dealers by adopting a direct-to-consumer sales and delivery model. Forza is building a dedicated web and app-based platform for sales, deliveries, and service operations to change the traditional boat buying and marine service experience through technological innovation, ease of use, and flexibility. Forza intends to employ an integrated, digital-first strategy that is convenient and transparent for the company’s customers and efficient and scalable to support its growth. Additionally, to support those looking for a more traditional way of purchasing a boat, or to accompany trade-ins, financing needs, and training or in states where there are limitations on direct sales, Forza will also market its boats through a partnership with One Water Marine, Inc. (‘One Water’), one of the largest dealership networks in the United States. Forza believes its approach will enable the company to provide the best of both worlds to prospective customers and support its mission to electrify recreational boating for mass production.
Forza’s web and app-based platform is expected to include the following:
Build and Price Boats. The web and app platform will offer prospective buyers a place to examine photos and videos of the company’s boats, which will all have a single price based on the model type and a few available options. For example, the consumer would have four gel coat exterior choices, three interior upholstery choices, and an option to increase the battery pack capacity for extended run times. Other options would include charging cords and plugs, boating items such as bumpers, covers, and fun add-ons like clothing, allowing consumers to ‘personalize’ their Forza X1 purchase.
Financing. Prospective customers will be able to apply for third-party consumer financing to complete or supplement their purchase through the company’s web and app platform.
Delivery. Once manufactured, the boat will be delivered directly to a customer’s home, marina, or wherever they choose. The scheduling, communication, and support necessary for coordinating touchless delivery of the company’s Forza boats would all be accomplished over the website or app.
Servicing. Forza intends to offer highly tailored and differentiated services that enable intuitive experiences throughout the entire customer lifecycle, such as warranty, repair, or other service assistance for their boats. Forza expects this all-inclusive approach will provide higher customer satisfaction, create strong brand loyalty, and increase operational efficiency while simultaneously allowing the company to capture a more significant share of the entire lifecycle value of every Forza X1 boat produced. Forza anticipates having internal staff with the capability to provide an OTA (over the airwaves) update to resolve the issue remotely without the boat ever leaving the customer’s sight. As part of its customer satisfaction drive, Forza plans for its staff to make mobile service calls to the boat docks. It also intends to enter into partnering arrangements with third parties to address service needs that require more than a mobile service visit and plans to arrange for the boat to be picked up and brought to one of the company’s partnered service centers. If a service center is not available in a customer’s area, for approved warranty repairs the company will permit the owners to take their boat to their local service center who will then invoice the company.
Customer Service and Feedback. Forza will utilize customer insights and feedback submitted via its web and app-based platform to improve its offerings by adding new capabilities and functionality. Expanded offerings based on consumer-driven feedback and data is expected to attract more customers, deepen existing customer relationships, and allow Forza to innovate more quickly.
Training. Forza intends to provide a series of videos that demonstrate the company’s boats’ safe operation and upkeep. These videos would be accessible on Forza’s web and app platform and the boat’s onboard computer for quick access.
With respect to the foregoing, Forza has not yet: (i) entered into any arrangements with third parties to provide financing services through its web and app platform, or (ii) hired staff for the company’s intended support and service department. Forza is still in the initial stages of establishing its distribution and service plans. Forza is uncertain as to when they will commence selling to end-user customers. Forza is in the process of identifying the states its will be allowed to sell direct-to-consumer. For states that have do not allow such an arrangement, Forza intends to make sales through One Water’s locations. One Water will be able to forecast how many fully electric boats they initially require, and after production, the company will have the boats transported to the dealerships.
Similarly, Forza is in the process of identifying potential marine service centers and technicians it would like to form strategic relationships with to ensure that it has a comprehensive service support system in place when its fully electric boats are sold, it will utilize One Water dealerships and service centers where they are available. Forza will also work to establish its 500-mile radius mobile service vans and trucks before selling the first Forza X1 product so that local customers will have that option.
The One Water Agreement
Additionally, to support those looking for a more traditional way of purchasing a boat, or to accompany trade-ins, financing needs, and training, the company will also market its boats through a partnership with One Water, one of the largest dealership networks in the United States. The company’s approach will enable the company to provide the best of both worlds to prospective customers and support the company’s mission to electrify recreational boating. On August 17, 2022, the company entered into a five-year agreement with One Water to establish the company’s customer experience and service centers in One Water’s current and future locations and other strategic locations across the United States pursuant to which One Water will be the sole dealer distributing the company’s products and One Water’s retail locations may be used as potential delivery points for customers to pick up the company’s products. The company retained the right to sell its products directly to customers. The agreement may be terminated by either party for breach upon thirty days’ notice and without cause upon three months’ notice.
Forza’s Future Service Network
Forza intends to develop a support and service department that will include technicians, service representatives, quality control specialists and customer satisfaction agents. Moreover, it aims to provide convenient and comprehensive service coverage in all markets where its boats are sold, which customers may access through a comprehensive service and support website and app.
The website and app platform will be the cornerstone of Forza’s services and repair program. Forza has selected a web design firm for the development of its website and app. Forza’s customers would be able to report through its app or interact directly with its service support team to schedule an appointment with a Forza X1 mobile service van, perform remote diagnostics or help arrange appointments with partnered boat repair technicians, marinas, and service centers with whom Forza has strategic relationships, arrange for service or repair work, or even schedule the boat’s transportation back to the Forza X1 factory if needed.
Forza X1 mobile service vans and trucks will be able to perform a majority of physical service calls at a customer’s home, marina, dock, or wherever the company’s boats might be located, offering a level of convenience at lower cost than traditional dealer-owned service centers. These mobile service vans and trucks will travel to the location of the electric boats for repair, or if the boat cannot be repaired at such location, then the Forza technician will have a vehicle capable of towing the boat back to the Forza factory, where the boat will have access to a more significant amount of repair and support staff.
Forza’s electric vehicles will require less service than gas vehicles because electric vehicles are simpler to maintain than internal combustion vehicles. The outboard motor system is expected to be less susceptible to wear and tear by exchanging hundreds of moving parts for only a few. There are no spark plugs or engine motor oil to change or worry about.
Additionally, remote diagnostics will allow Forza to find issues with customer boats remotely, in real time. In many cases, Forza’s service team will be able to provide an OTA update to resolve the issue without the customer’s boat ever leaving the customer’s sight. Forza’s intention will be to make the servicing of the company’s products as simple as possible by connecting to and utilizing diagnostics technology in every Forza boat. Whether a customer needs maintenance or needs repairs, the company intends to provide convenient and comprehensive service and warranty coverage for its customers throughout the country.
Customers who lack Forza service access through its network of mobile services vans and trucks will be able to utilize the traditional warranty claim process, which is standard throughout the recreational boat industry. In Forza’s case, a customer will contact Forza through its website or app and speak with its support and service department and provide them with details about the issues they are experiencing with their boat. If over-the-air updates to software or hardware are insufficient to solve the problems and customer experience and service center or mobile service van are not within range of the customer, its support and service department will provide assistance.
In the case of a covered warrantable issue, Forza’s support and service department will put them in contact with a local partnered boat repair service technicians or arrange transportation of the boat to one of the company’s partnered marinas and service centers. If none are available in a customer’s area, the company’s support and service department would instruct the customer to obtain a quote for the covered warranty repair work and labor at a marine service center of their choosing. They would transmit the quote for the necessary repair work to Forza’s support and service department for approval. Once approved, the work is completed on the covered warrantable repairs, and Forza will pay the marine service center directly.
There may be instances where the customer’s issue is too technical for a traditional marine service center (e.g., issues related to the EV components of the boat). In such cases, Forza’s support and service department would coordinate with the customer to have the boat picked up on a trailer and towed to the company’s manufacturing facility in Fort Pierce, Florida, for service.
If a customer contacts Forza’s support and service department for maintenance or an issue not covered under warranty, then its support and service department would be able to coordinate with them to arrange service with a mobile service van, partnered boat repair technician, or partnered marina or service center and the customer will be responsible for paying them directly.
Forza is still in the initial stages of establishing the company’s service plans. Forza is in the process of identifying potential marinas, service centers, and technicians the company would like to form strategic relationships with to ensure that it has a comprehensive service support system in place when the company’s fully electric boats are sold. Although Forza is planning to eventually internalize most aspects of boat warranty and service through the company’s mobile service vans and trucks over time, initially, Forza plans to operate them within 500 miles of the Forza factory and partner with third parties elsewhere to enable nationwide coverage for its customers’ boat service and warranty repair needs.
Forza’s plans for its electric boats include the following strategies: successfully launching the fully electric sport boat; investing in infrastructure; using a common platform to introduce new models; focusing on technological advancements; building Forza’s company-owned sales and service network; leveraging industry advancements in battery cells; and building and leveraging strategic relationships.
Forza X1 Future Factory
Forza is building a manufacturing plant to incorporate the latest in closed-molded composite boat building technologies and electric engine assembly processes. Forza has selected its new site in McDowell County, North Carolina to build the Forza X1 factory. Forza is designing a 100,000 square foot facility designed for capacity and production of 1,000 units annually.
Before the completion of new factory construction, all fabrication for Forza’s boats will be performed onsite at Twin Vee’s facility.
Markets
The company’s core market corresponds most directly with the saltwater outboard market defined by SSI and is further categorized by the power catamaran segment.
Outboard Motor Market
The boats that the company sells and manufactures all have outboard motors.
Electric Boat Market
The company’s initiative into sustainable marine technologies and products is well-timed. The company is establishing itself in the market at the right time to help keep production costs as low as possible and make the company’s boats affordable for its customers.
Forza also plans to leverage its electric powertrain technology to develop and sell powertrain components to other boat manufacturers and owners.
Forza believes its proprietary electric powertrain system will enable it to design and develop zero-emission boats that overcome the design, styling, and performance issues that have historically limited broad consumer adoption of electric boats.
Dealer Network
The company primarily sells its gas-powered boats through a network of 47 independent dealers in 47 locations across North America, the Caribbean (one in the Bahamas, Puerto Rico and Cayman Islands) and Central America (Panama City, Panama). The company is always seeking to recruit and establish new dealers and distributors domestically and are striving to develop international distribution.
The company establishes performance criteria that its dealers must meet in order to be part of the company’s network to ensure its dealer network remains strong, which include minimum annual purchase orders. As a member of the company’s network, dealers in North America may qualify for floor plan financing programs, rebates, seasonal discounts, promotional co-op payments and other allowances. The company expects this will strengthen its dealers’ ability to sell the company’s products.
For the year ended December 31, 2023, the company’s top five dealers on a consolidated basis accounted for approximately 35% of the company’s consolidated revenues. During the year ended December 31, 2023, one individual dealer had sales of over 10% of the company’s total sales, that dealer represented 10% of total sales.
The company consistently reviews its distribution network to identify opportunities to expand the company’s geographic footprint and improve its coverage of the market. The company’s diverse product offering and strong market position in each region of the United States helped the company capitalize on growth opportunities as the company’s industry recovered from the economic downturn. The company has the ability to opportunistically add new dealers and new dealer locations to previously underserved markets and use data and performance metrics to monitor dealer performance. The company’s outstanding dealer network allows the company to distribute its products more efficiently than the company’s smaller competitors.
Floor Plan Financing
The company’s North American dealers often purchase boats through floor plan financing programs with third-party floor plan financing providers. During the year ended December 31, 2023, a majority of the company’s North American shipments were made pursuant to floor plan financing programs through which the company’s dealers participate. These programs allow dealers across the company’s brands to establish lines of credit with third-party lenders to purchase inventory.
Forza X1 Intellectual Property
As of December 31, 2023, the company had three design and four utility patent applications on file with the United States Patent and Trademark Office.
Research and Development
The company’s research and design expenses for the year ended December 31, 2023, was $1,443,569.
Environmental, Safety and Regulatory Matters
Certain materials used in the company’s manufacturing, including the resins used in production of its boats, are toxic, flammable, corrosive or reactive and are classified by the federal and state governments as hazardous materials. Control of these substances is regulated by the Environmental Protection Agency (the EPA) and state pollution control agencies. The United States Clean Air Act (the CAA) and corresponding state and provincial rules regulate emissions of air pollutants. The company’s facilities are regularly inspected by the Occupational Safety and Health Administration (OSHA) and by state and local inspection agencies and departments.
In addition to the regulation of the company’s manufacturing operations, the EPA has adopted regulations stipulating that many marine propulsion engines meet certain air emission standards. The engines used in the company’s products, all of which are manufactured by third parties, are warranted by the manufacturers to be in compliance with the EPA’s emission standards. Furthermore, the engines used in the company’s products must comply with the applicable emission standards under the Center for European Policy Analysis (CEPA) and corresponding provincial legislation.
History
Twin Vee Powercats Co. was founded in 1996. The company was incorporated in the state of Florida as Twin Vee Catamarans, Inc. in 2009 and reincorporated in Delaware in 2021.
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