Wed, Aug 14, 8:34 PM (153 days ago)
Forza X1, Inc. reported significant financial challenges for the quarter ending June 30, 2024. The company incurred a net loss of $2,831,554, a 91% increase compared to $1,483,654 in the same quarter of 2023. Operating expenses surged to $2,916,563, primarily due to a $1,674,000 impairment charge on its construction project, reflecting a broader trend of rising costs amid stagnant revenue, as no sales were recorded. Cash reserves dwindled to $8,188,879 from $9,821,531 at the previous year-end, while working capital fell by 36.4%. The company has decided to wind down its electric boat development and pursue a merger with Twin Vee PowerCats Co. This strategic shift aims to conserve cash and explore new operational avenues. Future operations remain uncertain, hinging on the successful completion of the merger, which carries risks of delisting from Nasdaq if compliance requirements are not met. The company anticipates ongoing net losses and cash outflows, emphasizing the need for additional capital to sustain operations.