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<p style="margin: 0"></p>

<!-- Field: Rule-Page --><div style="text-align: left; margin-top: 10pt; margin-bottom: 3pt"><div style="border-top: Black 2pt solid; border-bottom: Black 1pt solid; font-size: 1pt; width: 100%">&#160;</div></div><!-- Field: /Rule-Page -->

<p style="margin: 0">&#160;</p>



<p style="font: 14pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>UNITED STATES</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>

<p style="font: 14pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>SECURITIES AND EXCHANGE COMMISSION</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>

<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Washington, D.C. 20549</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&#160;</p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&#160;</p>

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<td style="padding: 0; vertical-align: top; text-align: center; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif"><b>(Mark One)</b></span></td>
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<tr style="vertical-align: bottom">
<td style="padding: 0; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr>
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<tr>
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<td style="padding: 0; vertical-align: bottom; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
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<tr style="vertical-align: top">
<td colspan="2" style="padding: 0; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr style="vertical-align: top">
<td colspan="2" style="padding: 0; text-align: center; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif"><b>OR</b></span></td></tr>
<tr>
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<td style="padding: 0; vertical-align: bottom; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>For the transition period from _______________
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>&#160;</b></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&#160;</p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><i>(Exact Name of Registrant as Specified in
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
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Identification
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<tr style="vertical-align: bottom">
<td style="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: center; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: center; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><i>(Registrant&#8217;s Telephone Number, including
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">Securities registered pursuant to Section&#160;12(b)&#160;of
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
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<td style="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif; color: black"><span id="xdx_90B_edei--TradingSymbol_c20210101__20210930_zFaqoYopMwo9"><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" name="dei:TradingSymbol">VEEE</ix:nonNumeric></span></span></td>
<td style="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif">The
<span id="xdx_900_edei--SecurityExchangeName_c20210101__20210930_zu6jYMcA7gHk"><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" format="ixt-sec:exchnameen" name="dei:SecurityExchangeName">Nasdaq</ix:nonNumeric></span> Stock Market, LLC &#160; </span><span style="font-family: Times New Roman, Times, Serif"><br />
<span style="font-size: 10pt">(The Nasdaq Capital Market)</span></span></td></tr>
</table>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif; color: black">Indicate
by check mark whether the registrant (1)&#160;has filed all reports required to be filed by Section&#160;13 or 15(d)&#160;of the
Securities Exchange Act of 1934 during the preceding 12&#160;months (or for such shorter period that the registrant was required
to file such reports), and (2)&#160;has been subject to such filing requirements for the past 90&#160;days.&#160;<span id="xdx_90C_edei--EntityCurrentReportingStatus_c20210101__20210930_zkCHV1RuBxNi"><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" name="dei:EntityCurrentReportingStatus">Yes</ix:nonNumeric></span>&#160;</span><span style="font-family: Times New Roman, Times, Serif">&#9744;
<span style="color: black">No&#160;&#9746; Registrant became subject to such filing requirements on July 20, 2021.</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif; color: black">Indicate
by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant
to Rule&#160;405 of Regulation&#160;S-T (&#167;232.405 of this chapter) during the preceding 12&#160;months (or for such shorter
period that the registrant was required to submit such files).&#160;<span id="xdx_90E_edei--EntityInteractiveDataCurrent_c20210101__20210930_zBKn8DdHa5Y3"><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" name="dei:EntityInteractiveDataCurrent">Yes</ix:nonNumeric></span>&#160;</span><span style="font-family: Times New Roman, Times, Serif; color: black">&#9746;
No&#160;</span><span style="font-family: Times New Roman, Times, Serif">&#9744;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><span style="font-family: Times New Roman, Times, Serif">Indicate
by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting
company or an emerging growth company. See the definitions of &#8220;large accelerated filer,&#8221; &#8220;accelerated filer&#8221;
&#8220;smaller reporting company&#8221; and &#8220;emerging growth company&#8221; in Rule&#160;12b-2 of the Exchange Act.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<tr style="vertical-align: top">
<td style="font-size: 10pt; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif; color: black">Large accelerated
filer</span></td>
<td style="font-size: 10pt; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#9744;</span></td>
<td style="font-size: 10pt; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font-size: 10pt; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif; color: black">Accelerated
filer</span></td>
<td style="font-size: 10pt; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#9744;</span></td></tr>
<tr style="vertical-align: top">
<td style="font-size: 10pt; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif; color: black"><span id="xdx_908_edei--EntityFilerCategory_c20210101__20210930_zNOAWUu8G6j3"><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" format="ixt-sec:entityfilercategoryen" name="dei:EntityFilerCategory">Non-accelerated filer</ix:nonNumeric></span></span></td>
<td style="font-size: 10pt; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif; color: black">&#9746;</span></td>
<td style="font-size: 10pt; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font-size: 10pt; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif; color: black">Smaller reporting
company</span></td>
<td style="font-size: 10pt; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif; color: black"><span id="xdx_900_edei--EntitySmallBusiness_c20210101__20210930_zUQjyFdK8JQk"><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" format="ixt:booleantrue" name="dei:EntitySmallBusiness">&#9746;</ix:nonNumeric></span></span></td></tr>
<tr style="vertical-align: top">
<td style="font-size: 10pt; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font-size: 10pt; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font-size: 10pt; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font-size: 10pt; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif; color: black">Emerging growth
company</span></td>
<td style="font-size: 10pt; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif; color: black"><span id="xdx_903_edei--EntityEmergingGrowthCompany_c20210101__20210930_zeaTuA0Ocg51"><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" format="ixt:booleantrue" name="dei:EntityEmergingGrowthCompany">&#9746;</ix:nonNumeric></span></span></td></tr>
</table>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif; color: black">If
an emerging growth company indicate by check mark if the registrant has elected not to use the extended transition period for
complying with any new or revised financial accounting standards provided pursuant to Section&#160;13(a)&#160;of the Exchange
Act.&#160;</span><span style="font-family: Times New Roman, Times, Serif"><span id="xdx_904_edei--EntityExTransitionPeriod_c20210101__20210930_zrtK3ncUBYTa"><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" format="ixt:booleanfalse" name="dei:EntityExTransitionPeriod">&#9744;</ix:nonNumeric></span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">Indicate
by check mark whether the registrant is a shell company (as defined in Rule&#160;12b-2 of the Exchange Act).&#160;Yes&#160;</span><span style="font-family: Times New Roman, Times, Serif">&#9744;&#160;<span id="xdx_901_edei--EntityShellCompany_c20210101__20210930_zlgymmNJhVJk"><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" format="ixt:booleanfalse" name="dei:EntityShellCompany">No</ix:nonNumeric></span>&#160;&#9746;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif">As
of November 15, 2021, there were [<span id="xdx_90F_edei--EntityCommonStockSharesOutstanding_iI_c20211115_zkE3Mkdksh06"><ix:nonFraction name="dei:EntityCommonStockSharesOutstanding" contextRef="AsOf2021-11-15" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">7,000,000</ix:nonFraction></span>] shares</span> of Common Stock, $0.001 par value per share, outstanding.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

<!-- Field: Page; Sequence: 1 -->
    <div style="border-bottom: Black 2pt solid; margin-top: 12pt; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"><tr><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <div style="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"><tr><td style="text-align: left; width: 100%"><a href="#toc">Table of Contents</a></td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>




<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>TWIN VEE POWERCATS CO.</b></p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>&#160;</b></p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b><span id="toc"></span>TABLE OF CONTENTS</b></p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&#160;</p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="border-bottom: windowtext 1pt solid; padding: 0; vertical-align: bottom; text-align: center"><span style="font-family: Times New Roman, Times, Serif"><b>Page&#160;No.</b></span></td></tr>
<tr>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; vertical-align: bottom; text-align: right; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; vertical-align: top; text-align: center; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif"><b>PART&#160;I&#8212;FINANCIAL
INFORMATION</b></span></td>
<td style="padding: 0; vertical-align: bottom; text-align: right; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; vertical-align: bottom; text-align: right; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Item&#160;1.</span></td>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif"><a href="#a_001">Financial Statements (Unaudited)</a></span></td>
<td style="padding: 0; vertical-align: bottom; text-align: right; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">3</span></td></tr>
<tr>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; vertical-align: bottom; text-align: right; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif"><a href="#a_002">Condensed Consolidated Balance Sheets as of September 30, 2021 (Unaudited) and December&#160;31, 2020</a></span></td>
<td style="padding: 0; vertical-align: bottom; text-align: right; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">3</span></td></tr>
<tr>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; vertical-align: bottom; text-align: right; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif"><a href="#a_003">Condensed Consolidated Statements of Operations (Unaudited) for the Three and Nine months ended September 30, 2021 and 2020</a></span></td>
<td style="padding: 0; vertical-align: bottom; text-align: right; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">4</span></td></tr>
<tr>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; vertical-align: bottom; text-align: right; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif"><a href="#a_004">Condensed Consolidated Statements of Stockholders&#8217; Equity (Unaudited) for the Three and Nine months ended September 30, 2021 and 2020</a></span></td>
<td style="padding: 0; vertical-align: bottom; text-align: right; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">5</span></td></tr>
<tr>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; vertical-align: bottom; text-align: right; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif"><a href="#a_005">Condensed Consolidated Statements of Cash Flows (Unaudited) for the Nine&#160;months ended September 30, 2021 and 2020</a></span></td>
<td style="padding: 0; vertical-align: bottom; text-align: right; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">6</span></td></tr>
<tr>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; vertical-align: bottom; text-align: right; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif"><a href="#a_006">Notes&#160;to the Condensed Consolidated Financial Statements (Unaudited)</a></span></td>
<td style="padding: 0; vertical-align: bottom; text-align: right; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">7</span></td></tr>
<tr>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; vertical-align: bottom; text-align: right; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Item&#160;2.</span></td>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif"><a href="#a_007">Management&#8217;s Discussion and Analysis of Financial Condition and Results of Operations</a></span></td>
<td style="padding: 0; vertical-align: bottom; text-align: right; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">18</span></td></tr>
<tr>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; vertical-align: bottom; text-align: right; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Item&#160;3.</span></td>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif"><a href="#a_008">Quantitative and Qualitative Disclosures About Market Risk</a></span></td>
<td style="padding: 0; vertical-align: bottom; text-align: right; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">25</span></td></tr>
<tr>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; vertical-align: bottom; text-align: right; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Item&#160;4.</span></td>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif"><a href="#a_009">Controls and Procedures</a></span></td>
<td style="padding: 0; vertical-align: bottom; text-align: right; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">26</span></td></tr>
<tr>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; vertical-align: bottom; text-align: right; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; vertical-align: top; text-align: center; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif"><b>PART&#160;II&#8212;OTHER
INFORMATION</b></span></td>
<td style="padding: 0; vertical-align: bottom; text-align: right; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; vertical-align: bottom; text-align: right; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Item&#160;1.</span></td>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif"><a href="#a_010">&#160;Legal Proceedings</a></span></td>
<td style="padding: 0; vertical-align: bottom; text-align: right; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">27</span></td></tr>
<tr>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; vertical-align: bottom; text-align: right; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Item&#160;1A.</span></td>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif"><a href="#a_011">&#160;Risk Factors</a></span></td>
<td style="padding: 0; vertical-align: bottom; text-align: right; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">27</span></td></tr>
<tr>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; vertical-align: bottom; text-align: right; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Item&#160;2.</span></td>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;<a href="#a_012">Unregistered Sales of Equity Securities and Use of Proceeds</a></span></td>
<td style="padding: 0; vertical-align: bottom; text-align: right; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">44</span></td></tr>
<tr>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; vertical-align: bottom; text-align: right; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Item&#160;3.</span></td>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;<a href="#a_013">Defaults Upon Senior Securities</a></span></td>
<td style="padding: 0; vertical-align: bottom; text-align: right; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">44</span></td></tr>
<tr>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; vertical-align: bottom; text-align: right; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Item&#160;4.</span></td>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif"><a href="#a_014">&#160;Mine Safety Disclosures</a></span></td>
<td style="padding: 0; vertical-align: bottom; text-align: right; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">44</span></td></tr>
<tr>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; vertical-align: bottom; text-align: right; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Item&#160;5.</span></td>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;<a href="#a_015">Other Information</a></span></td>
<td style="padding: 0; vertical-align: bottom; text-align: right; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">44</span></td></tr>
<tr>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; vertical-align: bottom; text-align: right; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Item&#160;6.</span></td>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif"><a href="#a_016">&#160;Exhibits</a></span></td>
<td style="padding: 0; vertical-align: bottom; text-indent: 0; text-align: right"><span style="font-family: Times New Roman, Times, Serif">45</span></td></tr>
<tr>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; vertical-align: bottom; text-align: right; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr>
<td colspan="2" style="padding: 0; vertical-align: top; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif"><a href="#a_017">SIGNATURES</a></span></td>
<td style="padding: 0; vertical-align: bottom; text-align: right; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">&#160;46</span></td></tr>
</table>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p>




<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>FORWARD-LOOKING STATEMENTS</b></p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>&#160;</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">This Quarterly Report on Form&#160;10-Q contains
forward-looking statements within the meaning of Section&#160;27A of the Securities Act of 1933, as amended (the &#8220;Securities
Act&#8221;), and Section&#160;21E of the Securities Exchange Act of 1934, as amended (the &#8220;Exchange Act&#8221;). All statements,
other than statements of historical facts, contained in this Quarterly Report on Form&#160;10-Q, including statements regarding
our strategy, future operations, future financial position, future revenues, projected costs, prospects, plans and objectives of
management, are forward-looking statements. The words &#8220;anticipate,&#8221; &#8220;believe,&#8221; &#8220;estimate,&#8221;
&#8220;expect,&#8221; &#8220;intend,&#8221; &#8220;may,&#8221; &#8220;plan,&#8221; &#8220;predict,&#8221; &#8220;project,&#8221;
&#8220;target,&#8221; &#8220;potential,&#8221; &#8220;will,&#8221; &#8220;would,&#8221; &#8220;could,&#8221; &#8220;should,&#8221;
&#8220;continue&#8221; and similar expressions are intended to identify forward-looking statements, although not all forward-looking
statements contain these identifying words.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">T<span style="color: black">he forward-looking
statements contained in this </span>Quarterly Report on Form&#160;10-Q <span style="color: black">are based on assumptions that
we have made in light of our industry experience and our perceptions of historical trends, current conditions, expected future
developments, and other factors we believe are appropriate under the circumstances. As you read and consider this </span>Quarterly
Report on Form&#160;10-Q<span style="color: black">, you should understand that these statements are not guarantees of performance
or results. They involve risks, uncertainties (many of which are beyond our control), and assumptions. Although we believe that
these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect our actual
operating and financial performance and cause our performance to differ materially from the performance anticipated in the forward-looking
statements. We believe these factors include, but are not limited to, those described under &#8220;Risk Factors&#8221; and &#8220;Management&#8217;s
Discussion and Analysis of Financial Condition and Results of Operations.&#8221; Should one or more of these risks or uncertainties
materialize, or should any of these assumptions prove incorrect, our actual operating and financial performance may vary in material
respects from the performance projected in these forward-looking statements</span>. Therefore, actual results may differ materially
and adversely from those expressed in any forward-looking statements.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As a result of these and other factors, we
may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not
place undue reliance on our forward-looking statements. We do not assume any obligation to update any forward-looking statements,
whether as a result of new information, future events or otherwise, except as required by law.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>NOTE&#160;REGARDING COMPANY REFERENCES</b></p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>&#160;</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Throughout this Quarterly Report on Form&#160;10-Q,
&#8220;Twin Vee,&#8221; &#8220;the Company,&#8221; &#8220;we&#8221; and &#8220;our&#8221; refer to Twin Vee PowerCats Co.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Summary Risk Factors</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; background-color: white"><b><i>The
following is a summary of the key risks relating to the Company. A more detailed description of each of these risks can be found
below in </i></b></span><b><i>Part II&#8212;Item 1A. &#8220;Risk Factors.&#8221;</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i></i></b>&#160;</p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="padding: 0; width: 24px; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; width: 24px; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="padding: 0; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">General economic conditions, particularly in the U.S., affect our industry,
demand for our products and our business, &#160; and results of operations.</span></td></tr>
<tr style="vertical-align: top">
<td style="padding: 0; text-indent: 0">&#160;</td>
<td style="padding: 0; text-indent: 0">&#160;</td>
<td style="padding: 0; text-indent: 0">&#160;</td></tr>
<tr style="vertical-align: top">
<td style="padding: 0; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="padding: 0; text-align: justify; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">The COVID-19 global pandemic and other
natural phenomena.</span></td></tr>
<tr style="vertical-align: top">
<td style="padding: 0; text-indent: 0">&#160;</td>
<td style="padding: 0; text-indent: 0">&#160;</td>
<td style="padding: 0; text-align: justify; text-indent: 0">&#160;</td></tr>
<tr style="vertical-align: top">
<td style="padding: 0; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="padding: 0; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Our ability to meet our manufacturing workforce needs is crucial to
our results of operations and future sales and &#160; profitability.</span></td></tr>
<tr style="vertical-align: top">
<td style="padding: 0; text-indent: 0">&#160;</td>
<td style="padding: 0; text-indent: 0">&#160;</td>
<td style="padding: 0; text-indent: 0">&#160;</td></tr>
<tr style="vertical-align: top">
<td style="padding: 0; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="padding: 0; text-align: justify; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">There is limited public information on
our operating history.</span></td></tr>
<tr style="vertical-align: top">
<td style="padding: 0; text-indent: 0">&#160;</td>
<td style="padding: 0; text-indent: 0">&#160;</td>
<td style="padding: 0; text-align: justify; text-indent: 0">&#160;</td></tr>
<tr style="vertical-align: top">
<td style="padding: 0; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="padding: 0; text-align: justify; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Interest rates and energy prices affect
product sales</span></td></tr>
<tr style="vertical-align: top">
<td style="padding: 0; text-indent: 0">&#160;</td>
<td style="padding: 0; text-indent: 0">&#160;</td>
<td style="padding: 0; text-align: justify; text-indent: 0">&#160;</td></tr>
<tr style="vertical-align: top">
<td style="padding: 0; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="padding: 0; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Our annual and quarterly financial results are subject to significant
fluctuations depending on various factors, many &#160; of which are beyond our control.</span></td></tr>
</table>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></p>

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    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
    <td style="width: 24px"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="width: 24px; line-height: 115%"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td><span style="font: 10pt Times New Roman, Times, Serif">We depend on our network of independent dealers,
face increasing competition for dealers and have little control over their activities.</span></td></tr>
<tr style="vertical-align: top">
    <td><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="line-height: 115%"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="line-height: 115%"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr style="vertical-align: top">
    <td><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="line-height: 115%"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="line-height: 115%"><span style="font: 10pt Times New Roman, Times, Serif">Our success depends, in part, upon the financial
health of our dealers and their continued access to financing.</span></td></tr>
<tr style="vertical-align: top">
    <td><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="line-height: 115%"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="line-height: 115%"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr style="vertical-align: top">
    <td><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="line-height: 115%"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td><span style="font: 10pt Times New Roman, Times, Serif">Unfavorable weather conditions may have a material adverse effect on
our business, financial condition, and results of operations, especially during the peak boating season.</span></td></tr>
<tr style="vertical-align: top">
    <td><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="line-height: 115%"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="line-height: 115%"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr style="vertical-align: top">
    <td><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="line-height: 115%"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td><span style="font: 10pt Times New Roman, Times, Serif">A natural disaster, the effects of climate change, or disruptions at
our manufacturing facility could adversely affect our business, financial condition and results of operations.</span></td></tr>
<tr style="vertical-align: top">
    <td><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="line-height: 115%"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="line-height: 115%"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr style="vertical-align: top">
    <td><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="line-height: 115%"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td><span style="font: 10pt Times New Roman, Times, Serif">If we fail to manage our manufacturing levels while still addressing
the seasonal retail pattern for our products, our business and margins may suffer.</span></td></tr>
<tr style="vertical-align: top">
    <td><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="line-height: 115%"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="line-height: 115%"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr style="vertical-align: top">
    <td><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="line-height: 115%"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="line-height: 115%"><span style="font: 10pt Times New Roman, Times, Serif">We have a large, fixed cost base that will
affect our profitability if our sales decrease.</span></td></tr>
<tr style="vertical-align: top">
    <td><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="line-height: 115%"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="line-height: 115%"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr style="vertical-align: top">
    <td><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="line-height: 115%"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="line-height: 115%"><span style="font: 10pt Times New Roman, Times, Serif">We may be required to repurchase inventory
of certain dealers.</span></td></tr>
<tr style="vertical-align: top">
    <td><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="line-height: 115%"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="line-height: 115%"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr style="vertical-align: top">
    <td><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="line-height: 115%"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td><span style="font: 10pt Times New Roman, Times, Serif">Termination or interruption of informal supply arrangements could have
a material adverse effect on our business or results of operations.</span></td></tr>
<tr style="vertical-align: top">
    <td><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="line-height: 115%"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="line-height: 115%"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr style="vertical-align: top">
    <td><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="line-height: 115%"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="line-height: 115%"><span style="font: 10pt Times New Roman, Times, Serif">We rely on one manufacturer to supply our
engines and do not have any long terms commitments from such manufacturer</span></td></tr>
<tr style="vertical-align: top">
    <td><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="line-height: 115%"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="line-height: 115%"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr style="vertical-align: top">
    <td><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="line-height: 115%"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td><span style="font: 10pt Times New Roman, Times, Serif">Product liability, warranty, personal injury, property damage and recall
claims may materially affect our financial condition and damage our reputation.</span></td></tr>
<tr style="vertical-align: top">
    <td><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="line-height: 115%"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="line-height: 115%"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr style="vertical-align: top">
    <td><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="line-height: 115%"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td><span style="font: 10pt Times New Roman, Times, Serif">Significant product repair and/or replacement due to product warranty
claims or product recalls could have a material adverse impact on our results of operations.</span></td></tr>
<tr style="vertical-align: top">
    <td><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="line-height: 115%"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="line-height: 115%"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr style="vertical-align: top">
    <td><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="line-height: 115%"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="line-height: 115%"><span style="font: 10pt Times New Roman, Times, Serif">Demand in the powerboat industry is highly
volatile.</span></td></tr>
<tr style="vertical-align: top">
    <td><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="line-height: 115%"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="line-height: 115%"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr style="vertical-align: top">
    <td><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="line-height: 115%"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td><span style="font: 10pt Times New Roman, Times, Serif">General economic conditions, particularly in the U.S., affect our industry,
demand for our products and our business, and results of operations</span></td></tr>
<tr style="vertical-align: top">
    <td><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="line-height: 115%"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="line-height: 115%"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr style="vertical-align: top">
    <td><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="line-height: 115%"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="line-height: 115%"><span style="font: 10pt Times New Roman, Times, Serif">Our industry is characterized by intense
competition, which affects our sales and profits.</span></td></tr>
<tr style="vertical-align: top">
    <td><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="line-height: 115%"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="line-height: 115%"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr style="vertical-align: top">
    <td><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="line-height: 115%"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td><span style="font: 10pt Times New Roman, Times, Serif">We have identified weaknesses in our internal controls, and we cannot
provide assurances that these weaknesses will be effectively remediated or that additional material weaknesses will not occur
in the future.</span></td></tr>
</table>



<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></p>

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    <div style="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"><tr><td style="text-align: left; width: 100%"><a href="#toc">Table of Contents</a></td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&#160;&#160;</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>PART&#160;I&#8212;FINANCIAL INFORMATION</b></p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>&#160;</b></p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0"><b><span id="a_001"></span>ITEM&#160;1. FINANCIAL STATEMENTS</b></p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0"><b>&#160;</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>TWIN VEE POWERCATS CO, INC.</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(F/K/A TWIN VEE CATAMARANS, INC.)</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span id="a_002"></span><b></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>CONDENSED CONSOLIDATED BALANCE SHEETS</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Unaudited)</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&#160;</p>

<table cellpadding="0" cellspacing="0" id="xdx_30C_111_zeBs36hUGrGe" summary="xdx: Statement - CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
    <td style="text-align: left">&#160;</td><td>&#160;</td>
    <td colspan="3" id="xdx_499_20210930_zOVP4B56DHU6" style="text-align: center">&#160;</td><td>&#160;</td>
    <td colspan="3" id="xdx_498_20201231_z8xmDHHObVu3" style="text-align: center">&#160;</td></tr>
<tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="color: black; font-weight: bold">&#160;</td>
    <td colspan="3" style="color: black; font-weight: bold; text-align: center">September 30,</td><td style="color: black; font-weight: bold">&#160;</td>
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<tr style="vertical-align: bottom">
    <td style="color: black; text-align: center">&#160;</td><td style="color: black; font-weight: bold; padding-bottom: 1pt">&#160;</td>
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<tr style="vertical-align: bottom">
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<tr id="xdx_407_eus-gaap--AssetsAbstract_iB_zQwMsrTdeCs1" style="vertical-align: bottom; background-color: rgb(204,238,255)">
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    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
<tr id="xdx_404_eus-gaap--AssetsCurrentAbstract_i01B_zr86MXlh2gze" style="vertical-align: bottom; background-color: White">
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    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
<tr id="xdx_40B_eus-gaap--CashAndCashEquivalentsAtCarryingValue_i02I_maCzsaQ_zZwKwBcFjBuc" style="vertical-align: bottom; background-color: rgb(204,238,255)">
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<tr id="xdx_405_eus-gaap--AccountsReceivableNetCurrent_i02I_maCzsaQ_zxzfvrc5XDtk" style="vertical-align: bottom; background-color: White">
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    <td style="color: black; text-align: left">&#160;</td><td style="color: black; text-align: right"><ix:nonFraction name="us-gaap:AccountsReceivableNetCurrent" contextRef="AsOf2021-09-30" format="ixt:numdotdecimal" decimals="0" unitRef="USD">212,908</ix:nonFraction></td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
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<tr id="xdx_402_eus-gaap--MarketableSecuritiesCurrent_i02I_maCzsaQ_zH7MKeoMIz6e" style="vertical-align: bottom; background-color: rgb(204,238,255)">
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    <td style="color: black; text-align: left">&#160;</td><td style="color: black; text-align: right"><ix:nonFraction name="us-gaap:MarketableSecuritiesCurrent" contextRef="AsOf2021-09-30" format="ixt:numdotdecimal" decimals="0" unitRef="USD">2,998,181</ix:nonFraction></td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
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<tr id="xdx_401_eus-gaap--InventoryNet_i02I_maCzsaQ_zmOPQmk0dgZb" style="vertical-align: bottom; background-color: White">
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<tr id="xdx_40D_eus-gaap--DueFromAffiliateCurrent_i02I_maCzsaQ_zNPa4php6DT2" style="vertical-align: bottom; background-color: rgb(204,238,255)">
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<tr id="xdx_40D_eus-gaap--PrepaidExpenseAndOtherAssetsCurrent_i02I_maCzsaQ_z6CHQJBn7qRh" style="vertical-align: bottom; background-color: White">
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<tr id="xdx_40A_eus-gaap--AssetsCurrent_i02TI_mtCzsaQ_maCzSfU_z8qNhNLISz7" style="vertical-align: bottom; background-color: rgb(204,238,255)">
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<tr style="vertical-align: bottom; background-color: White">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
<tr id="xdx_40C_eus-gaap--MarketableSecuritiesNoncurrent_i02I_pp0p0_maCzSfU_z0pzGIIFlLx6" style="vertical-align: bottom; background-color: rgb(204,238,255)">
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    <td style="color: black; text-align: left">&#160;</td><td style="color: black; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0067">&#8212;</span></td><td style="color: black; text-align: left">&#160;</td></tr>
<tr id="xdx_403_eus-gaap--PropertyPlantAndEquipmentNet_i02I_maCzSfU_zG9Ub7oBaULc" style="vertical-align: bottom; background-color: White">
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<tr id="xdx_401_eus-gaap--OperatingLeaseRightOfUseAsset_i02I_maCzSfU_zVn3JBtXHnb2" style="vertical-align: bottom; background-color: rgb(204,238,255)">
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<tr id="xdx_40A_eus-gaap--DepositsAssetsCurrent_i02I_maCzSfU_zS5OqSXSiUVc" style="vertical-align: bottom; background-color: White">
    <td style="padding: 0 0 0 20pt; color: black; text-align: left">Security deposit</td><td style="color: black; padding-bottom: 1pt">&#160;</td>
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<tr id="xdx_404_eus-gaap--Assets_i01TI_mtCzSfU_zEm4rSVzMYP6" style="vertical-align: bottom; background-color: rgb(204,238,255)">
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<tr style="vertical-align: bottom; background-color: White">
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<tr id="xdx_40D_eus-gaap--LiabilitiesAndStockholdersEquityAbstract_i01B" style="vertical-align: bottom; background-color: rgb(204,238,255)">
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<tr id="xdx_407_eus-gaap--LiabilitiesCurrentAbstract_i01B_zzoEe4GEmng2" style="vertical-align: bottom; background-color: White">
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<tr id="xdx_402_eus-gaap--AccountsPayableCurrent_i02I_maCzwcc_z2eIQxvFAyD7" style="vertical-align: bottom; background-color: rgb(204,238,255)">
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<tr id="xdx_40F_eus-gaap--AccruedLiabilitiesCurrent_i02I_maCzwcc_zbn4HqmBX8ll" style="vertical-align: bottom; background-color: White">
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<tr id="xdx_40B_eus-gaap--ContractWithCustomerLiabilityCurrent_i02I_maCzwcc_zG3Il1JwX3Y1" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding: 0 0 0 20pt; color: black; text-align: left">Contract liability</td><td style="color: black">&#160;</td>
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<tr id="xdx_402_eus-gaap--ProductWarrantyAccrualClassifiedCurrent_i02I_maCzwcc_zyz2cn5RxDRh" style="vertical-align: bottom; background-color: White">
    <td style="padding: 0 0 0 20pt; color: black; text-align: left">Warranty reserve</td><td style="color: black">&#160;</td>
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<tr id="xdx_40E_eus-gaap--NotesPayableRelatedPartiesClassifiedCurrent_i02I_maCzwcc_zA0WEEHzHo6l" style="vertical-align: bottom; background-color: rgb(204,238,255)">
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<tr id="xdx_400_eus-gaap--DueToAffiliateCurrent_i02I_maCzwcc_zOZw0BlJb3Fl" style="vertical-align: bottom; background-color: White">
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<tr id="xdx_401_eus-gaap--OperatingLeaseLiabilityCurrent_i02I_maCzwcc_zAHMNUTWiu0d" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding: 0 0 0 20pt; color: black; text-align: left">Operating lease right of use liability</td><td style="color: black; padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; color: black; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><ix:nonFraction name="us-gaap:OperatingLeaseLiabilityCurrent" contextRef="AsOf2021-09-30" format="ixt:numdotdecimal" decimals="0" unitRef="USD">364,822</ix:nonFraction></td><td style="padding-bottom: 1pt; color: black; text-align: left">&#160;</td><td style="color: black; padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; color: black; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><ix:nonFraction name="us-gaap:OperatingLeaseLiabilityCurrent" contextRef="AsOf2020-12-31" format="ixt:numdotdecimal" decimals="0" unitRef="USD">295,374</ix:nonFraction></td><td style="padding-bottom: 1pt; color: black; text-align: left">&#160;</td></tr>
<tr id="xdx_40B_eus-gaap--LiabilitiesCurrent_i02TI_mtCzwcc_maCzweT_zd5OMXgAVcm5" style="vertical-align: bottom; background-color: White">
    <td style="color: black; text-align: left">Total Current Liabilities</td><td style="color: black">&#160;</td>
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<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#160;</td><td>&#160;</td>
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<tr id="xdx_40E_eus-gaap--OtherLoansPayable_i02I_maCzweT_zAug8i40Sxf2" style="vertical-align: bottom; background-color: White">
    <td style="padding: 0 0 0 20pt; color: black; text-align: left">Paycheck Protection Program Loan</td><td style="color: black">&#160;</td>
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<tr id="xdx_40F_eus-gaap--OtherLoansPayableLongTerm_i02I_maCzweT_zVPkwarkZXW2" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding: 0 0 0 20pt; color: black; text-align: left">Economic Injury Disaster Loan</td><td style="color: black">&#160;</td>
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<tr id="xdx_407_eus-gaap--OperatingLeaseLiabilityNoncurrent_i02I_maCzweT_zLm49ZJabRb" style="vertical-align: bottom; background-color: White">
    <td style="padding: 0 0 0 20pt; color: black; text-align: left">Operating lease liability - noncurrent</td><td style="color: black; padding-bottom: 1pt">&#160;</td>
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<tr id="xdx_402_eus-gaap--Liabilities_i01TI_mtCzweT_maLASEztoD_zzN0ijmMgoy3" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="color: black; text-align: left">Total Liabilities</td><td style="color: black; padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; color: black; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><ix:nonFraction name="us-gaap:Liabilities" contextRef="AsOf2021-09-30" format="ixt:numdotdecimal" decimals="0" unitRef="USD">5,342,013</ix:nonFraction></td><td style="padding-bottom: 1pt; color: black; text-align: left">&#160;</td><td style="color: black; padding-bottom: 1pt">&#160;</td>
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<tr style="vertical-align: bottom; background-color: White">
    <td style="color: black">&#160;</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">&#160;</td><td style="color: black; text-align: right">&#160;</td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">&#160;</td><td style="color: black; text-align: right">&#160;</td><td style="color: black; text-align: left">&#160;</td></tr>
<tr id="xdx_40F_eus-gaap--CommitmentsAndContingencies_iI_zNX2YVhzNQR3" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="color: black; text-align: left">Commitments and contingencies (Note 10)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
<tr id="xdx_407_eus-gaap--StockholdersEquityAbstract_iB" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="color: black; text-align: left">Stockholders&#8217; equity:</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">&#160;</td><td style="color: black; text-align: right">&#160;</td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">&#160;</td><td style="color: black; text-align: right">&#160;</td><td style="color: black; text-align: left">&#160;</td></tr>
<tr id="xdx_404_eus-gaap--PreferredStockValue_i01I_maSEzfXv_zY3BdCNiRekh" style="vertical-align: bottom; background-color: White">
    <td style="color: black; text-align: left">Preferred stock: <span id="xdx_908_eus-gaap--PreferredStockSharesAuthorized_c20210930_pdd" title="Preferred stock, shares authorized"><span id="xdx_902_eus-gaap--PreferredStockSharesAuthorized_c20201231_pdd" title="Preferred stock, shares authorized"><ix:nonFraction name="us-gaap:PreferredStockSharesAuthorized" contextRef="AsOf2021-09-30" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares"><ix:nonFraction name="us-gaap:PreferredStockSharesAuthorized" contextRef="AsOf2020-12-31" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">10,000,000</ix:nonFraction></ix:nonFraction></span></span> authorized; $<span id="xdx_90E_eus-gaap--PreferredStockParOrStatedValuePerShare_c20210930_pdd" title="Preferred stock, par value"><span id="xdx_901_eus-gaap--PreferredStockParOrStatedValuePerShare_c20201231_pdd" title="Preferred stock, par value"><ix:nonFraction name="us-gaap:PreferredStockParOrStatedValuePerShare" contextRef="AsOf2021-09-30" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares"><ix:nonFraction name="us-gaap:PreferredStockParOrStatedValuePerShare" contextRef="AsOf2020-12-31" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">0.001</ix:nonFraction></ix:nonFraction></span></span> par value; <span id="xdx_906_eus-gaap--PreferredStockSharesIssued_iI_do_c20210930_zgeUWR9ZVgp8" title="Preferred stock, shares issued"><span id="xdx_90A_eus-gaap--PreferredStockSharesOutstanding_iI_do_c20210930_z090VogwSeul" title="Preferred stock, shares outstanding"><span id="xdx_906_eus-gaap--PreferredStockSharesIssued_iI_do_c20201231_z0DEGING18yc" title="Preferred stock, shares issued"><span id="xdx_909_eus-gaap--PreferredStockSharesOutstanding_iI_do_c20201231_z0Qx9iUlEEf9" title="Preferred stock, shares outstanding"><ix:nonFraction name="us-gaap:PreferredStockSharesIssued" contextRef="AsOf2021-09-30" format="ixt-sec:numwordsen" decimals="INF" unitRef="Shares"><ix:nonFraction name="us-gaap:PreferredStockSharesOutstanding" contextRef="AsOf2021-09-30" format="ixt-sec:numwordsen" decimals="INF" unitRef="Shares"><ix:nonFraction name="us-gaap:PreferredStockSharesIssued" contextRef="AsOf2020-12-31" format="ixt-sec:numwordsen" decimals="INF" unitRef="Shares"><ix:nonFraction name="us-gaap:PreferredStockSharesOutstanding" contextRef="AsOf2020-12-31" format="ixt-sec:numwordsen" decimals="INF" unitRef="Shares">no</ix:nonFraction></ix:nonFraction></ix:nonFraction></ix:nonFraction></span></span></span></span> shares issued and outstanding</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">&#160;</td><td style="color: black; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0129">&#8212;</span></td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">&#160;</td><td style="color: black; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0130">&#8212;</span></td><td style="color: black; text-align: left">&#160;</td></tr>
<tr id="xdx_401_eus-gaap--CommonStockValue_i01I_maSEzfXv_zpFwS31wX2Og" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="color: black; text-align: left">Common stock: <span id="xdx_902_eus-gaap--CommonStockSharesAuthorized_c20210930_pdd" title="Common stock, shares authorized"><span id="xdx_90B_eus-gaap--CommonStockSharesAuthorized_c20201231_pdd" title="Common stock, shares authorized"><ix:nonFraction name="us-gaap:CommonStockSharesAuthorized" contextRef="AsOf2021-09-30" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares"><ix:nonFraction name="us-gaap:CommonStockSharesAuthorized" contextRef="AsOf2020-12-31" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">50,000,000</ix:nonFraction></ix:nonFraction></span></span> authorized; $<span id="xdx_905_eus-gaap--CommonStockParOrStatedValuePerShare_c20210930_pdd" title="Common stock, par value"><span id="xdx_90F_eus-gaap--CommonStockParOrStatedValuePerShare_c20201231_pdd" title="Common stock, par value"><ix:nonFraction name="us-gaap:CommonStockParOrStatedValuePerShare" contextRef="AsOf2021-09-30" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares"><ix:nonFraction name="us-gaap:CommonStockParOrStatedValuePerShare" contextRef="AsOf2020-12-31" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">0.001</ix:nonFraction></ix:nonFraction></span></span> par value; <span id="xdx_90B_eus-gaap--CommonStockSharesIssued_c20210930_pdd" title="Common stock, shares issued"><span id="xdx_90C_eus-gaap--CommonStockSharesOutstanding_c20210930_pdd" title="Common stock, shares outstanding"><ix:nonFraction name="us-gaap:CommonStockSharesIssued" contextRef="AsOf2021-09-30" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares"><ix:nonFraction name="us-gaap:CommonStockSharesOutstanding" contextRef="AsOf2021-09-30" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">7,000,000</ix:nonFraction></ix:nonFraction></span></span> and <span id="xdx_90A_eus-gaap--CommonStockSharesIssued_iI_c20201231_z2xAw4P8Q0h9" title="Common stock, shares issued"><span id="xdx_903_eus-gaap--CommonStockSharesOutstanding_c20201231_pdd" title="Common stock, shares outstanding"><ix:nonFraction name="us-gaap:CommonStockSharesIssued" contextRef="AsOf2020-12-31" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares"><ix:nonFraction name="us-gaap:CommonStockSharesOutstanding" contextRef="AsOf2020-12-31" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">4,000,000</ix:nonFraction></ix:nonFraction></span></span> shares issued and outstanding, respectively</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">&#160;</td><td style="color: black; text-align: right"><ix:nonFraction name="us-gaap:CommonStockValue" contextRef="AsOf2021-09-30" format="ixt:numdotdecimal" decimals="0" unitRef="USD">7,000</ix:nonFraction></td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">&#160;</td><td style="color: black; text-align: right"><ix:nonFraction name="us-gaap:CommonStockValue" contextRef="AsOf2020-12-31" format="ixt:numdotdecimal" decimals="0" unitRef="USD">4,000</ix:nonFraction></td><td style="color: black; text-align: left">&#160;</td></tr>
<tr id="xdx_409_eus-gaap--AdditionalPaidInCapital_i01I_maSEzfXv_zALG1BxkUe2g" style="vertical-align: bottom; background-color: White">
    <td style="color: black; text-align: left">Additional paid-in capital</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">&#160;</td><td style="color: black; text-align: right"><ix:nonFraction name="us-gaap:AdditionalPaidInCapital" contextRef="AsOf2021-09-30" format="ixt:numdotdecimal" decimals="0" unitRef="USD">18,486,995</ix:nonFraction></td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">&#160;</td><td style="color: black; text-align: right"><ix:nonFraction name="us-gaap:AdditionalPaidInCapital" contextRef="AsOf2020-12-31" format="ixt:numdotdecimal" decimals="0" unitRef="USD">2,551,387</ix:nonFraction></td><td style="color: black; text-align: left">&#160;</td></tr>
<tr id="xdx_405_eus-gaap--RetainedEarningsAccumulatedDeficit_i01I_maSEzfXv_zEjppv9lNFY6" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="color: black; text-align: left">Accumulated deficit</td><td style="color: black; padding-bottom: 1pt">&#160;</td>
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</table>


<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><i>The accompanying notes are an integral part
of these unaudited condensed consolidated financial statements</i></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>

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    <div style="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"><tr><td style="text-align: left; width: 100%"><a href="#toc">Table of Contents</a></td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&#160;</p>




<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>TWIN VEE POWERCATS CO, INC.</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(F/K/A TWIN VEE CATAMARANS, INC.)</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b><span id="a_003"></span>CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Unaudited)</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&#160;</p>

<table cellpadding="0" cellspacing="0" id="xdx_307_113_zABTnewaVPkf" summary="xdx: Statement - CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom; background-color: White">
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<tr style="vertical-align: bottom">
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<tr style="vertical-align: bottom">
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<tr style="vertical-align: bottom">
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<tr id="xdx_409_eus-gaap--CostOfRevenue_msCzbV2_zzjZOrkFmLnd" style="vertical-align: bottom; background-color: White">
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<tr id="xdx_401_eus-gaap--GrossProfit_iT_mtCzbV2_maCzq11_zaZDKE7BKi13" style="vertical-align: bottom; background-color: rgb(204,238,255)">
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<tr style="vertical-align: bottom; background-color: White">
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    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
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<tr id="xdx_403_eus-gaap--SellingGeneralAndAdministrativeExpense_i01_maCzxg0_zznls6WhsnZ2" style="vertical-align: bottom; background-color: White">
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<tr id="xdx_40C_eus-gaap--ResearchAndDevelopmentExpense_i01_maCzxg0_zy0OFXNeynQb" style="vertical-align: bottom; background-color: White">
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<tr id="xdx_400_eus-gaap--ProfessionalFees_i01_maCzxg0_z3bVU5npcMbd" style="vertical-align: bottom; background-color: rgb(204,238,255)">
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<tr id="xdx_40B_eus-gaap--Depreciation_i01_maCzxg0_zuqsUmDTImK" style="vertical-align: bottom; background-color: White">
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<tr id="xdx_40D_eus-gaap--OperatingExpenses_i01T_mtCzxg0_msCzq11_zALX8GEHouJ4" style="vertical-align: bottom; background-color: rgb(204,238,255)">
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<tr style="vertical-align: bottom; background-color: White">
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<tr id="xdx_40F_eus-gaap--OperatingIncomeLoss_i01T_mtCzq11_zxftfmS9ewH9" style="vertical-align: bottom; background-color: rgb(204,238,255)">
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<tr style="vertical-align: bottom; background-color: White">
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    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
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<tr id="xdx_40E_eus-gaap--OtherIncomeAndExpensesAbstract_iB_zp7atTxFMn7" style="vertical-align: bottom; background-color: rgb(204,238,255)">
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    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
<tr id="xdx_402_eus-gaap--OtherIncome_i01_maCzWGh_zy1nDHzh0Q38" style="vertical-align: bottom; background-color: White">
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<tr id="xdx_408_eus-gaap--InterestIncomeExpenseNet_i01_maCzWGh_z0tk85M38XY" style="vertical-align: bottom; background-color: rgb(204,238,255)">
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<tr id="xdx_40C_eus-gaap--GainLossOnDispositionOfAssets_i01_maCzWGh_zFTRC9pPJ0Ik" style="vertical-align: bottom; background-color: White">
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    <td style="color: black; text-align: left">&#160;</td><td style="color: black; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0250">&#8212;</span></td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
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    <td style="color: black; text-align: left">&#160;</td><td style="color: black; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0252">&#8212;</span></td><td style="color: black; text-align: left">&#160;</td></tr>
<tr id="xdx_401_eus-gaap--GainOnBusinessInterruptionInsuranceRecovery_i01_maCzWGh_zackqw2JVCz" style="vertical-align: bottom; background-color: rgb(204,238,255)">
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    <td style="color: black; text-align: left">&#160;</td><td style="color: black; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0255">&#8212;</span></td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
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<tr id="xdx_40B_eus-gaap--UnrealizedGainLossOnMarketableSecuritiesCostMethodInvestmentsAndOtherInvestments_i01_maCzWGh_zshDsvZh6Gi4" style="vertical-align: bottom; background-color: White">
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<tr id="xdx_402_eus-gaap--NonoperatingIncomeExpense_i01T_mtCzWGh_zy7Ul3rpybHk" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="color: black; text-align: left">Total other income (expenses)</td><td style="color: black">&#160;</td>
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<tr style="vertical-align: bottom; background-color: White">
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    <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">&#160;</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">&#160;</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">&#160;</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">&#160;</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td></tr>
<tr id="xdx_404_eus-gaap--NetIncomeLoss_i01_zq0l75YoTi16" style="vertical-align: bottom; background-color: rgb(204,238,255)">
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<tr style="vertical-align: bottom; background-color: White">
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</table>


<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>&#160;</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><i>The accompanying notes are an integral part
of these unaudited condensed consolidated financial statements</i></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>

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    <div style="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"><tr><td style="text-align: left; width: 100%"><a href="#toc">Table of Contents</a></td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>TWIN VEE POWERCATS CO, INC.</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(F/K/A TWIN VEE CATAMARANS, INC.)</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b><span id="a_004"></span>CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS&#8217;
EQUITY</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Unaudited)</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>&#160;</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>For the Three and Nine months ended September 30, 2020</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>&#160;</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"></p>

<table cellpadding="0" cellspacing="0" id="xdx_305_114_zx4HOvU4Tik1" summary="xdx: Statement - CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDER&apos;S EQUITY (Unaudited)" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; padding-top: 0; padding-right: 0; padding-left: 20pt">&#160;</td>
<td style="color: black">&#160;</td>
<td style="color: black; text-align: left">&#160;</td>
<td style="color: black; text-align: right">&#160;</td>
<td style="color: black; text-align: left">&#160;</td>
<td style="color: black">&#160;</td>
<td style="color: black; text-align: left">&#160;</td>
<td id="xdx_4B9_us-gaap--StatementEquityComponentsAxis_us-gaap--CommonStockMember_zPgLRo3byked" style="color: black; text-align: right">&#160;</td>
<td style="color: black; text-align: left">&#160;</td>
<td style="color: black">&#160;</td>
<td style="color: black; text-align: left">&#160;</td>
<td id="xdx_4B1_us-gaap--StatementEquityComponentsAxis_us-gaap--AdditionalPaidInCapitalMember_zOmQw2DypZi7" style="color: black; text-align: right">&#160;</td>
<td style="color: black; text-align: left">&#160;</td>
<td style="color: black">&#160;</td>
<td style="color: black; text-align: left">&#160;</td>
<td id="xdx_4B7_us-gaap--StatementEquityComponentsAxis_us-gaap--RetainedEarningsMember_ztLHnpmaxE1j" style="color: black; text-align: right">&#160;</td>
<td style="color: black; text-align: left">&#160;</td>
<td style="color: black">&#160;</td>
<td style="color: black; text-align: left">&#160;</td>
<td id="xdx_4BC_zbAWF8SR8uH4" style="color: black; text-align: right">&#160;</td>
<td style="color: black; text-align: left">&#160;</td></tr>
<tr style="vertical-align: bottom">
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<tr style="vertical-align: bottom">
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<tr style="vertical-align: bottom">
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<tr style="vertical-align: bottom">
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<tr id="xdx_437_c20200101__20200331_eus-gaap--StockholdersEquity_iS_ziIkK8oDALZe" style="vertical-align: bottom; background-color: rgb(204,238,255)">
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<tr id="xdx_404_eus-gaap--ProfitLoss_i_pp0p0" style="vertical-align: bottom; background-color: White">
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    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right"><ix:nonFraction name="us-gaap:StockholdersEquity" contextRef="AsOf2020-06-30_us-gaap_CommonStockMember" format="ixt:numdotdecimal" decimals="0" unitRef="USD">4,000</ix:nonFraction></td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right"><ix:nonFraction name="us-gaap:StockholdersEquity" contextRef="AsOf2020-06-30_us-gaap_AdditionalPaidInCapitalMember" format="ixt:numdotdecimal" decimals="0" unitRef="USD">2,289,231</ix:nonFraction></td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
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    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right"><ix:nonFraction name="us-gaap:StockholdersEquity" contextRef="AsOf2020-06-30" format="ixt:numdotdecimal" decimals="0" unitRef="USD">170,739</ix:nonFraction></td><td style="color: black; text-align: left">&#160;</td></tr>
<tr id="xdx_401_eus-gaap--ProfitLoss_zjEubkDguTlf" style="vertical-align: bottom; background-color: White">
    <td style="padding: 0 0 0 20pt; text-align: left">&#160;Net loss for the period</td><td style="padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; color: White; text-align: right">&#8212;</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; color: White; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0315">&#8212;</span></td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; color: White; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0316">&#8212;</span></td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="color: black; padding-bottom: 1pt">&#160;</td>
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    <td style="border-bottom: Black 1pt solid; color: black; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; color: black; text-align: right">(<ix:nonFraction name="us-gaap:ProfitLoss" contextRef="From2020-07-012020-09-30" format="ixt:numdotdecimal" decimals="0" sign="-" unitRef="USD">200,524</ix:nonFraction></td><td style="padding-bottom: 1pt; color: black; text-align: left">)</td></tr>
<tr id="xdx_43C_c20200701__20200930_eus-gaap--StockholdersEquity_iE_zc2ee4knZuhd" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="color: black; font-weight: bold">Balance, September 30, 2020</td><td style="color: black; padding-bottom: 2.5pt">&#160;</td>
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    <td style="border-bottom: Black 2.5pt double; color: black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><ix:nonFraction name="us-gaap:StockholdersEquity" contextRef="AsOf2020-09-30_us-gaap_CommonStockMember" format="ixt:numdotdecimal" decimals="0" unitRef="USD">4,000</ix:nonFraction></td><td style="padding-bottom: 2.5pt; color: black; text-align: left">&#160;</td><td style="color: black; padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; color: black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><ix:nonFraction name="us-gaap:StockholdersEquity" contextRef="AsOf2020-09-30_us-gaap_AdditionalPaidInCapitalMember" format="ixt:numdotdecimal" decimals="0" unitRef="USD">2,289,231</ix:nonFraction></td><td style="padding-bottom: 2.5pt; color: black; text-align: left">&#160;</td><td style="color: black; padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; color: black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right">(<ix:nonFraction name="us-gaap:StockholdersEquity" contextRef="AsOf2020-09-30_us-gaap_RetainedEarningsMember" format="ixt:numdotdecimal" decimals="0" sign="-" unitRef="USD">2,323,016</ix:nonFraction></td><td style="padding-bottom: 2.5pt; color: black; text-align: left">)</td><td style="color: black; padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; color: black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right">(<ix:nonFraction name="us-gaap:StockholdersEquity" contextRef="AsOf2020-09-30" format="ixt:numdotdecimal" decimals="0" sign="-" unitRef="USD">29,785</ix:nonFraction></td><td style="padding-bottom: 2.5pt; color: black; text-align: left">)</td></tr>
</table>




<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>For the Three and Nine months ended September 30, 2021</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>&#160;</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b></b></p>

<table cellpadding="0" cellspacing="0" style="font: 8pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-align: center"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td><span style="font: 10pt Times New Roman, Times, Serif"><b>&#160;</b></span></td>
<td colspan="7" style="text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>&#160;</b></span></td>
<td style="color: black; font-weight: bold"><span style="font: 10pt Times New Roman, Times, Serif"><b>&#160;</b></span></td>
<td colspan="3" style="color: black; font-weight: bold; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>Additional</b></span></td>
<td><span style="font: 10pt Times New Roman, Times, Serif"><b>&#160;</b></span></td>
<td colspan="3" style="text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>&#160;</b></span></td>
<td style="color: black; font-weight: bold"><span style="font: 10pt Times New Roman, Times, Serif"><b>&#160;</b></span></td>
<td colspan="3" style="color: black; font-weight: bold; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>Total</b></span></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>&#160;</b></span></td>
<td style="color: black; font-weight: bold; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"><b>&#160;</b></span></td>
<td colspan="7" style="border-bottom: Black 1pt solid; color: black; font-weight: bold; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>Common
Stock</b></span></td>
<td style="color: black; font-weight: bold; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"><b>&#160;</b></span></td>
<td colspan="3" style="color: black; font-weight: bold; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>Paid-in</b></span></td>
<td style="color: black; font-weight: bold; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"><b>&#160;</b></span></td>
<td colspan="3" style="color: black; font-weight: bold; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>Accumulated</b></span></td>
<td style="color: black; font-weight: bold; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"><b>&#160;</b></span></td>
<td colspan="3" style="color: black; font-weight: bold; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>Stockholders'</b></span></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>&#160;</b></span></td>
<td style="color: black; font-weight: bold; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"><b>&#160;</b></span></td>
<td colspan="3" style="border-bottom: Black 1pt solid; color: black; font-weight: bold; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>Shares</b></span></td>
<td style="color: black; font-weight: bold; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"><b>&#160;</b></span></td>
<td colspan="3" style="border-bottom: Black 1pt solid; color: black; font-weight: bold; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>Amount</b></span></td>
<td style="color: black; font-weight: bold; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"><b>&#160;</b></span></td>
<td colspan="3" style="border-bottom: Black 1pt solid; color: black; font-weight: bold; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>Capital</b></span></td>
<td style="color: black; font-weight: bold; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"><b>&#160;</b></span></td>
<td colspan="3" style="border-bottom: Black 1pt solid; color: black; font-weight: bold; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>Deficit</b></span></td>
<td style="color: black; font-weight: bold; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"><b>&#160;</b></span></td>
<td colspan="3" style="border-bottom: Black 1pt solid; color: black; font-weight: bold; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>Equity</b></span></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td colspan="3" style="text-align: center"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td colspan="3" style="text-align: center"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td colspan="3" style="text-align: center"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td colspan="3" style="text-align: center"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td colspan="3" style="text-align: center"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr id="xdx_43C_c20210101__20210331_eus-gaap--StockholdersEquity_iS_zxUsKjlmEdV5" style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 35%; color: black; font-weight: bold"><span style="font: 10pt Times New Roman, Times, Serif"><b>Balance
at December 31, 2020</b></span></td>
<td style="width: 2%; color: black"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="width: 1%; color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td id="xdx_986_eus-gaap--SharesOutstanding_iS_c20210101__20210331__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_z2nZ9wFQ2lq1" title="Balance at beginning, shares" style="width: 9%; color: black; text-align: right"><span style="font: 10pt Times New Roman, Times, Serif"><ix:nonFraction name="us-gaap:SharesOutstanding" contextRef="AsOf2020-12-31_us-gaap_CommonStockMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">4,000,000</ix:nonFraction></span></td>
<td style="width: 1%; color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="width: 2%; color: black"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="width: 1%; color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">$</span></td>
<td style="width: 9%; color: black; text-align: right"><span style="font: 10pt Times New Roman, Times, Serif"><ix:nonFraction name="us-gaap:StockholdersEquity" contextRef="AsOf2020-12-31_us-gaap_CommonStockMember" format="ixt:numdotdecimal" decimals="0" unitRef="USD">4,000</ix:nonFraction></span></td>
<td style="width: 1%; color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="width: 2%; color: black"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="width: 1%; color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">$</span></td>
<td style="width: 9%; color: black; text-align: right"><span style="font: 10pt Times New Roman, Times, Serif"><ix:nonFraction name="us-gaap:StockholdersEquity" contextRef="AsOf2020-12-31_us-gaap_AdditionalPaidInCapitalMember" format="ixt:numdotdecimal" decimals="0" unitRef="USD">2,551,387</ix:nonFraction></span></td>
<td style="width: 1%; color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="width: 2%; color: black"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="width: 1%; color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">$</span></td>
<td style="width: 9%; color: black; text-align: right"><span style="font: 10pt Times New Roman, Times, Serif">(<ix:nonFraction name="us-gaap:StockholdersEquity" contextRef="AsOf2020-12-31_us-gaap_RetainedEarningsMember" format="ixt:numdotdecimal" decimals="0" sign="-" unitRef="USD">1,006,547</ix:nonFraction></span></td>
<td style="width: 1%; color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">)</span></td>
<td style="width: 2%; color: black"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="width: 1%; color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">$</span></td>
<td style="width: 9%; color: black; text-align: right"><span style="font: 10pt Times New Roman, Times, Serif"><ix:nonFraction name="us-gaap:StockholdersEquity" contextRef="AsOf2020-12-31" format="ixt:numdotdecimal" decimals="0" unitRef="USD">1,548,840</ix:nonFraction></span></td>
<td style="width: 1%; color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr id="xdx_406_eus-gaap--ProfitLoss_zaypF1x7C9" style="vertical-align: bottom; background-color: White">
<td style="padding: 0 0 0 20pt; color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">Net
income for the period</span></td>
<td style="color: black; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: right"><span style="font: 10pt Times New Roman, Times, Serif">&#8212;</span></td>
<td style="padding-bottom: 1pt; color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="color: black; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: right"><span style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl0334">&#8212;</span></span></td>
<td style="padding-bottom: 1pt; color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="color: black; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: right"><span style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl0335">&#8212;</span></span></td>
<td style="padding-bottom: 1pt; color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="color: black; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: right"><span style="font: 10pt Times New Roman, Times, Serif"><ix:nonFraction name="us-gaap:ProfitLoss" contextRef="From2021-01-012021-03-31_us-gaap_RetainedEarningsMember" format="ixt:numdotdecimal" decimals="0" unitRef="USD">131,949</ix:nonFraction></span></td>
<td style="padding-bottom: 1pt; color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="color: black; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: right"><span style="font: 10pt Times New Roman, Times, Serif"><ix:nonFraction name="us-gaap:ProfitLoss" contextRef="From2021-01-012021-03-31" format="ixt:numdotdecimal" decimals="0" unitRef="USD">131,949</ix:nonFraction></span></td>
<td style="padding-bottom: 1pt; color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr id="xdx_438_c20210401__20210630_eus-gaap--StockholdersEquity_iS_zdle27DPS25c" style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; font-weight: bold"><span style="font: 10pt Times New Roman, Times, Serif"><b>Balance
at March 31, 2021</b></span></td>
<td style="color: black"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td id="xdx_98B_eus-gaap--SharesOutstanding_iS_c20210401__20210630__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zN3eiRLmBhI3" title="Balance at beginning, shares" style="color: black; text-align: right"><span style="font: 10pt Times New Roman, Times, Serif"><ix:nonFraction name="us-gaap:SharesOutstanding" contextRef="AsOf2021-03-31_us-gaap_CommonStockMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">4,000,000</ix:nonFraction></span></td>
<td style="color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="color: black"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">$</span></td>
<td style="color: black; text-align: right"><span style="font: 10pt Times New Roman, Times, Serif"><ix:nonFraction name="us-gaap:StockholdersEquity" contextRef="AsOf2021-03-31_us-gaap_CommonStockMember" format="ixt:numdotdecimal" decimals="0" unitRef="USD">4,000</ix:nonFraction></span></td>
<td style="color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="color: black"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">$</span></td>
<td style="color: black; text-align: right"><span style="font: 10pt Times New Roman, Times, Serif"><ix:nonFraction name="us-gaap:StockholdersEquity" contextRef="AsOf2021-03-31_us-gaap_AdditionalPaidInCapitalMember" format="ixt:numdotdecimal" decimals="0" unitRef="USD">2,551,387</ix:nonFraction></span></td>
<td style="color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="color: black"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">$</span></td>
<td style="color: black; text-align: right"><span style="font: 10pt Times New Roman, Times, Serif">(<ix:nonFraction name="us-gaap:StockholdersEquity" contextRef="AsOf2021-03-31_us-gaap_RetainedEarningsMember" format="ixt:numdotdecimal" decimals="0" sign="-" unitRef="USD">874,598</ix:nonFraction></span></td>
<td style="color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">)</span></td>
<td style="color: black"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">$</span></td>
<td style="color: black; text-align: right"><span style="font: 10pt Times New Roman, Times, Serif"><ix:nonFraction name="us-gaap:StockholdersEquity" contextRef="AsOf2021-03-31" format="ixt:numdotdecimal" decimals="0" unitRef="USD">1,680,789</ix:nonFraction></span></td>
<td style="color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr id="xdx_40B_eus-gaap--ProfitLoss_z2uSy9FeCKld" style="vertical-align: bottom; background-color: White">
<td style="padding: 0 0 0 20pt; color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">Net
income for the period</span></td>
<td style="color: black; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: right"><span style="font: 10pt Times New Roman, Times, Serif">&#8212;</span></td>
<td style="padding-bottom: 1pt; color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="color: black; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: right"><span style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl0346">&#8212;</span></span></td>
<td style="padding-bottom: 1pt; color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="color: black; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: right"><span style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl0347">&#8212;</span></span></td>
<td style="padding-bottom: 1pt; color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="color: black; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: right"><span style="font: 10pt Times New Roman, Times, Serif"><ix:nonFraction name="us-gaap:ProfitLoss" contextRef="From2021-04-012021-06-30_us-gaap_RetainedEarningsMember" format="ixt:numdotdecimal" decimals="0" unitRef="USD">50,851</ix:nonFraction></span></td>
<td style="padding-bottom: 1pt; color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="color: black; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: right"><span style="font: 10pt Times New Roman, Times, Serif"><ix:nonFraction name="us-gaap:ProfitLoss" contextRef="From2021-04-012021-06-30" format="ixt:numdotdecimal" decimals="0" unitRef="USD">50,851</ix:nonFraction></span></td>
<td style="padding-bottom: 1pt; color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr id="xdx_434_c20210701__20210930_eus-gaap--StockholdersEquity_iS_zdZPRR27nez9" style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; font-weight: bold"><span style="font: 10pt Times New Roman, Times, Serif"><b>Balance
at June 30, 2021</b></span></td>
<td style="color: black"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td id="xdx_980_eus-gaap--SharesOutstanding_iS_c20210701__20210930__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zcyiXXSUKeWi" title="Balance at beginning, shares" style="color: black; text-align: right"><span style="font: 10pt Times New Roman, Times, Serif"><ix:nonFraction name="us-gaap:SharesOutstanding" contextRef="AsOf2021-06-30_us-gaap_CommonStockMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">4,000,000</ix:nonFraction></span></td>
<td style="color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="color: black"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">$</span></td>
<td style="color: black; text-align: right"><span style="font: 10pt Times New Roman, Times, Serif"><ix:nonFraction name="us-gaap:StockholdersEquity" contextRef="AsOf2021-06-30_us-gaap_CommonStockMember" format="ixt:numdotdecimal" decimals="0" unitRef="USD">4,000</ix:nonFraction></span></td>
<td style="color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="color: black"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">$</span></td>
<td style="color: black; text-align: right"><span style="font: 10pt Times New Roman, Times, Serif"><ix:nonFraction name="us-gaap:StockholdersEquity" contextRef="AsOf2021-06-30_us-gaap_AdditionalPaidInCapitalMember" format="ixt:numdotdecimal" decimals="0" unitRef="USD">2,551,387</ix:nonFraction></span></td>
<td style="color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="color: black"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">$</span></td>
<td style="color: black; text-align: right"><span style="font: 10pt Times New Roman, Times, Serif">(<ix:nonFraction name="us-gaap:StockholdersEquity" contextRef="AsOf2021-06-30_us-gaap_RetainedEarningsMember" format="ixt:numdotdecimal" decimals="0" sign="-" unitRef="USD">823,747</ix:nonFraction></span></td>
<td style="color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">)</span></td>
<td style="color: black"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">$</span></td>
<td style="color: black; text-align: right"><span style="font: 10pt Times New Roman, Times, Serif"><ix:nonFraction name="us-gaap:StockholdersEquity" contextRef="AsOf2021-06-30" format="ixt:numdotdecimal" decimals="0" unitRef="USD">1,731,640</ix:nonFraction></span></td>
<td style="color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr id="xdx_407_eus-gaap--StockIssuedDuringPeriodValueNewIssues_iP3us-gaap--SharesOutstanding_z5ec5EXJCb71" style="vertical-align: bottom; background-color: White">
<td style="padding: 0 0 0 20pt; color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">Common
stock issued for cash</span></td>
<td style="color: black"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td id="xdx_982_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_iP3us-gaap--StockIssuedDuringPeriodValueNewIssues_c20210701__20210930__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zSFonfnuNkc3" title="Common stock issued for cash, shares" style="color: black; text-align: right"><span style="font: 10pt Times New Roman, Times, Serif"><ix:nonFraction name="us-gaap:StockIssuedDuringPeriodSharesNewIssues" contextRef="From2021-07-012021-09-30_us-gaap_CommonStockMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">3,000,000</ix:nonFraction></span></td>
<td style="color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="color: black"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="color: black; text-align: right"><span style="font: 10pt Times New Roman, Times, Serif"><ix:nonFraction name="us-gaap:StockIssuedDuringPeriodValueNewIssues" contextRef="From2021-07-012021-09-30_us-gaap_CommonStockMember" format="ixt:numdotdecimal" decimals="0" unitRef="USD">3,000</ix:nonFraction></span></td>
<td style="color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="color: black"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="color: black; text-align: right"><span style="font: 10pt Times New Roman, Times, Serif"><ix:nonFraction name="us-gaap:StockIssuedDuringPeriodValueNewIssues" contextRef="From2021-07-012021-09-30_us-gaap_AdditionalPaidInCapitalMember" format="ixt:numdotdecimal" decimals="0" unitRef="USD">15,849,037</ix:nonFraction></span></td>
<td style="color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="color: black"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="color: black; text-align: right"><span style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl0360">&#8212;</span></span></td>
<td style="color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="color: black"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="color: black; text-align: right"><span style="font: 10pt Times New Roman, Times, Serif"><ix:nonFraction name="us-gaap:StockIssuedDuringPeriodValueNewIssues" contextRef="From2021-07-012021-09-30" format="ixt:numdotdecimal" decimals="0" unitRef="USD">15,852,037</ix:nonFraction></span></td>
<td style="color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr id="xdx_401_eus-gaap--StockIssuedDuringPeriodValueShareBasedCompensation_iP3us-gaap--StockIssuedDuringPeriodSharesNewIssues_zYWhYHxdyMjj" style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding: 0 0 0 20pt; color: black"><span style="font: 10pt Times New Roman, Times, Serif">Stock-based compensation</span></td>
<td style="color: black"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="color: black; text-align: right"><span style="font: 10pt Times New Roman, Times, Serif">&#8212;</span></td>
<td style="color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="color: black"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="color: black; text-align: right"><span style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl0365">&#8212;</span></span></td>
<td style="color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="color: black"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="color: black; text-align: right"><span style="font: 10pt Times New Roman, Times, Serif"><ix:nonFraction name="us-gaap:StockIssuedDuringPeriodValueShareBasedCompensation" contextRef="From2021-07-012021-09-30_us-gaap_AdditionalPaidInCapitalMember" format="ixt:numdotdecimal" decimals="0" unitRef="USD">86,571</ix:nonFraction></span></td>
<td style="color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="color: black"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="color: black; text-align: right"><span style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl0367">&#8212;</span></span></td>
<td style="color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="color: black"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="color: black; text-align: right"><span style="font: 10pt Times New Roman, Times, Serif"><ix:nonFraction name="us-gaap:StockIssuedDuringPeriodValueShareBasedCompensation" contextRef="From2021-07-012021-09-30" format="ixt:numdotdecimal" decimals="0" unitRef="USD">86,571</ix:nonFraction></span></td>
<td style="color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr id="xdx_402_eus-gaap--ProfitLoss_zv1Wn8NS9Q24" style="vertical-align: bottom; background-color: White">
<td style="padding: 0 0 0 20pt; color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">Net
loss for the period</span></td>
<td style="color: black; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: right"><span style="font: 10pt Times New Roman, Times, Serif">&#8212;</span></td>
<td style="padding-bottom: 1pt; color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="color: black; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: right"><span style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl0370">&#8212;</span></span></td>
<td style="padding-bottom: 1pt; color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="color: black; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: right"><span style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl0371">&#8212;</span></span></td>
<td style="padding-bottom: 1pt; color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="color: black; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: right"><span style="font: 10pt Times New Roman, Times, Serif">(<ix:nonFraction name="us-gaap:ProfitLoss" contextRef="From2021-07-012021-09-30_us-gaap_RetainedEarningsMember" format="ixt:numdotdecimal" decimals="0" sign="-" unitRef="USD">383,277</ix:nonFraction></span></td>
<td style="padding-bottom: 1pt; color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">)</span></td>
<td style="color: black; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: right"><span style="font: 10pt Times New Roman, Times, Serif">(<ix:nonFraction name="us-gaap:ProfitLoss" contextRef="From2021-07-012021-09-30" format="ixt:numdotdecimal" decimals="0" sign="-" unitRef="USD">383,277</ix:nonFraction></span></td>
<td style="padding-bottom: 1pt; color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">)</span></td></tr>
<tr id="xdx_43D_c20210701__20210930_eus-gaap--StockholdersEquity_iE_z0SYONnDcl96" style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; font-weight: bold"><span style="font: 10pt Times New Roman, Times, Serif"><b>Balance,
September 30, 2021</b></span></td>
<td style="color: black; padding-bottom: 2.5pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td id="xdx_980_eus-gaap--SharesOutstanding_iE_c20210701__20210930__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zSG6hiLHcjmd" title="Balacne at ending, shares" style="border-bottom: Black 2.5pt double; color: black; text-align: right"><span style="font: 10pt Times New Roman, Times, Serif"><ix:nonFraction name="us-gaap:SharesOutstanding" contextRef="AsOf2021-09-30_us-gaap_CommonStockMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">7,000,000</ix:nonFraction></span></td>
<td style="padding-bottom: 2.5pt; color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="color: black; padding-bottom: 2.5pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">$</span></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><span style="font: 10pt Times New Roman, Times, Serif"><ix:nonFraction name="us-gaap:StockholdersEquity" contextRef="AsOf2021-09-30_us-gaap_CommonStockMember" format="ixt:numdotdecimal" decimals="0" unitRef="USD">7,000</ix:nonFraction></span></td>
<td style="padding-bottom: 2.5pt; color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="color: black; padding-bottom: 2.5pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">$</span></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><span style="font: 10pt Times New Roman, Times, Serif"><ix:nonFraction name="us-gaap:StockholdersEquity" contextRef="AsOf2021-09-30_us-gaap_AdditionalPaidInCapitalMember" format="ixt:numdotdecimal" decimals="0" unitRef="USD">18,486,995</ix:nonFraction></span></td>
<td style="padding-bottom: 2.5pt; color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="color: black; padding-bottom: 2.5pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">$</span></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><span style="font: 10pt Times New Roman, Times, Serif">(<ix:nonFraction name="us-gaap:StockholdersEquity" contextRef="AsOf2021-09-30_us-gaap_RetainedEarningsMember" format="ixt:numdotdecimal" decimals="0" sign="-" unitRef="USD">1,207,024</ix:nonFraction></span></td>
<td style="padding-bottom: 2.5pt; color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">)</span></td>
<td style="color: black; padding-bottom: 2.5pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">$</span></td>
<td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><span style="font: 10pt Times New Roman, Times, Serif"><ix:nonFraction name="us-gaap:StockholdersEquity" contextRef="AsOf2021-09-30" format="ixt:numdotdecimal" decimals="0" unitRef="USD">17,286,971</ix:nonFraction></span></td>
<td style="padding-bottom: 2.5pt; color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
</table>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>&#160;</b></p>


<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><i></i></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><i>The accompanying notes are an integral part
of these unaudited condensed consolidated financial statements</i></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>

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    <div style="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"><tr><td style="text-align: left; width: 100%"><a href="#toc">Table of Contents</a></td></tr></table></div>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>TWIN VEE POWERCATS CO, INC.&#160;</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(F/K/A TWIN VEE CATAMARANS, INC.)</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b><span id="a_005"></span>CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(Unaudited)</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&#160;</p>

<table cellpadding="0" cellspacing="0" id="xdx_307_112_zJ3w4hynxWo6" summary="xdx: Statement - CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom; background-color: White">
    <td style="padding: 0 0 0 20pt; color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">&#160;</td><td id="xdx_49D_20210101__20210930_zumPg8GV08Hk" style="color: black; text-align: right">&#160;</td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">&#160;</td><td id="xdx_490_20200101__20200930_z5elxaPPjiS4" style="color: black; text-align: right">&#160;</td><td style="color: black; text-align: left">&#160;</td></tr>
<tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="7" style="font-weight: bold; text-align: center">Nine Months Ended</td></tr>
<tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
    <td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">September 30,</td></tr>
<tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
    <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2021</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
    <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2020</td></tr>
<tr id="xdx_40B_eus-gaap--NetCashProvidedByUsedInOperatingActivitiesAbstract_iB_zZ2kX39esCu5" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left">Cash Flows From Operating Activities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
<tr id="xdx_40F_eus-gaap--NetIncomeLoss_i01_msCz6xr_zbtPvvgIL0Vj" style="vertical-align: bottom; background-color: White">
    <td style="width: 56%; color: black; text-align: left">Net loss</td><td style="width: 8%; color: black">&#160;</td>
    <td style="width: 1%; color: black; text-align: left">$</td><td style="width: 12%; color: black; text-align: right">(<ix:nonFraction name="us-gaap:NetIncomeLoss" contextRef="From2021-01-01to2021-09-30" format="ixt:numdotdecimal" decimals="0" sign="-" unitRef="USD">200,477</ix:nonFraction></td><td style="width: 1%; color: black; text-align: left">)</td><td style="width: 8%; color: black">&#160;</td>
    <td style="width: 1%; color: black; text-align: left">$</td><td style="width: 12%; color: black; text-align: right">(<ix:nonFraction name="us-gaap:NetIncomeLoss" contextRef="From2020-01-012020-09-30" format="ixt:numdotdecimal" decimals="0" sign="-" unitRef="USD">145,392</ix:nonFraction></td><td style="width: 1%; color: black; text-align: left">)</td></tr>
<tr id="xdx_403_eus-gaap--AdjustmentsNoncashItemsToReconcileNetIncomeLossToCashProvidedByUsedInOperatingActivitiesAbstract_i01B_zTBCJUsoup38" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="color: black; text-align: left">Adjustments to reconcile net loss to net cash used in operating activities:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
<tr id="xdx_40D_eus-gaap--ShareBasedCompensation_i02_pp0p0_maCz6xr_zA14bplTgQch" style="vertical-align: bottom; background-color: White">
    <td style="padding: 0 0 0 20pt; color: black; text-align: left">Stock based compensation</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">&#160;</td><td style="color: black; text-align: right"><ix:nonFraction name="us-gaap:ShareBasedCompensation" contextRef="From2021-01-01to2021-09-30" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">86,571</ix:nonFraction></td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">&#160;</td><td style="color: black; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0392">&#8212;</span></td><td style="color: black; text-align: left">&#160;</td></tr>
<tr id="xdx_408_eus-gaap--DepreciationAndAmortization_i02_maCz6xr_zuo6lGoUSf87" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding: 0 0 0 20pt; color: black; text-align: left">Depreciation and amortization</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">&#160;</td><td style="color: black; text-align: right"><ix:nonFraction name="us-gaap:DepreciationAndAmortization" contextRef="From2021-01-01to2021-09-30" format="ixt:numdotdecimal" decimals="0" unitRef="USD">132,089</ix:nonFraction></td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
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<tr id="xdx_40F_eus-gaap--GainLossOnSaleOfPropertyPlantEquipment_i02N_di_msCz6xr_z7OlvXJNtYj3" style="vertical-align: bottom; background-color: White">
    <td style="padding: 0 0 0 20pt; color: black; text-align: left">Loss on disposal of asset</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">&#160;</td><td style="color: black; text-align: right"><ix:nonFraction name="us-gaap:GainLossOnSaleOfPropertyPlantEquipment" contextRef="From2021-01-01to2021-09-30" format="ixt:numdotdecimal" decimals="0" sign="-" unitRef="USD">224,037</ix:nonFraction></td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">&#160;</td><td style="color: black; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0398">&#8212;</span></td><td style="color: black; text-align: left">&#160;</td></tr>
<tr id="xdx_405_eus-gaap--IncreaseDecreaseInOperatingLiabilities_i02_maCz6xr_z9lAx8Z6395l" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding: 0 0 0 20pt; text-align: left">Change of ROU and lease liabilities</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">&#160;</td><td style="color: black; text-align: right"><ix:nonFraction name="us-gaap:IncreaseDecreaseInOperatingLiabilities" contextRef="From2021-01-01to2021-09-30" format="ixt:numdotdecimal" decimals="0" unitRef="USD">23,021</ix:nonFraction></td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">&#160;</td><td style="color: black; text-align: right"><ix:nonFraction name="us-gaap:IncreaseDecreaseInOperatingLiabilities" contextRef="From2020-01-012020-09-30" format="ixt:numdotdecimal" decimals="0" unitRef="USD">23,653</ix:nonFraction></td><td style="color: black; text-align: left">&#160;</td></tr>
<tr id="xdx_40D_eus-gaap--UnrealizedGainLossOnMarketableSecuritiesCostMethodInvestmentsAndOtherInvestments_i02N_di_msCz6xr_zNMGN54Rv36k" style="vertical-align: bottom; background-color: White">
    <td style="padding: 0 0 0 20pt; text-align: left">Net change in fair value of marketable securities</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">&#160;</td><td style="color: black; text-align: right"><ix:nonFraction name="us-gaap:UnrealizedGainLossOnMarketableSecuritiesCostMethodInvestmentsAndOtherInvestments" contextRef="From2021-01-01to2021-09-30" format="ixt:numdotdecimal" decimals="0" sign="-" unitRef="USD">10,576</ix:nonFraction></td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">&#160;</td><td style="color: black; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0404">&#8212;</span></td><td style="color: black; text-align: left">&#160;</td></tr>
<tr id="xdx_407_eus-gaap--IncreaseDecreaseInOperatingCapitalAbstract_i01B_znVB5Imxr2C9" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="color: black; text-align: left">Changes in operating assets and liabilities:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
<tr id="xdx_40B_eus-gaap--IncreaseDecreaseInAccountsReceivable_i02N_di_msCz6xr_zUHuyuKrbtF4" style="vertical-align: bottom; background-color: White">
    <td style="padding: 0 0 0 20pt; color: black; text-align: left">Accounts receivable</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">&#160;</td><td style="color: black; text-align: right">(<ix:nonFraction name="us-gaap:IncreaseDecreaseInAccountsReceivable" contextRef="From2021-01-01to2021-09-30" format="ixt:numdotdecimal" decimals="0" unitRef="USD">212,908</ix:nonFraction></td><td style="color: black; text-align: left">)</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">&#160;</td><td style="color: black; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0410">&#8212;</span></td><td style="color: black; text-align: left">&#160;</td></tr>
<tr id="xdx_408_eus-gaap--IncreaseDecreaseInInventories_i02N_di_msCz6xr_z5MCSYvjPuId" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding: 0 0 0 20pt; color: black">Inventories</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">&#160;</td><td style="color: black; text-align: right">(<ix:nonFraction name="us-gaap:IncreaseDecreaseInInventories" contextRef="From2021-01-01to2021-09-30" format="ixt:numdotdecimal" decimals="0" unitRef="USD">1,515,118</ix:nonFraction></td><td style="color: black; text-align: left">)</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">&#160;</td><td style="color: black; text-align: right">(<ix:nonFraction name="us-gaap:IncreaseDecreaseInInventories" contextRef="From2020-01-012020-09-30" format="ixt:numdotdecimal" decimals="0" unitRef="USD">259,465</ix:nonFraction></td><td style="color: black; text-align: left">)</td></tr>
<tr id="xdx_408_eus-gaap--IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets_i02N_di_msCz6xr_zNduvGu06Slb" style="vertical-align: bottom; background-color: White">
    <td style="padding: 0 0 0 20pt; text-align: left">Prepaid expenses and other current assets</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">&#160;</td><td style="color: black; text-align: right">(<ix:nonFraction name="us-gaap:IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets" contextRef="From2021-01-01to2021-09-30" format="ixt:numdotdecimal" decimals="0" unitRef="USD">684,813</ix:nonFraction></td><td style="color: black; text-align: left">)</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">&#160;</td><td style="color: black; text-align: right">(<ix:nonFraction name="us-gaap:IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets" contextRef="From2020-01-012020-09-30" format="ixt:numdotdecimal" decimals="0" unitRef="USD">1,104</ix:nonFraction></td><td style="color: black; text-align: left">)</td></tr>
<tr id="xdx_408_eus-gaap--IncreaseDecreaseInAccountsPayable_i02_maCz6xr_zxqVPKn42NC7" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding: 0 0 0 20pt; text-align: left">Accounts payable</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">&#160;</td><td style="color: black; text-align: right"><ix:nonFraction name="us-gaap:IncreaseDecreaseInAccountsPayable" contextRef="From2021-01-01to2021-09-30" format="ixt:numdotdecimal" decimals="0" unitRef="USD">888,465</ix:nonFraction></td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">&#160;</td><td style="color: black; text-align: right"><ix:nonFraction name="us-gaap:IncreaseDecreaseInAccountsPayable" contextRef="From2020-01-012020-09-30" format="ixt:numdotdecimal" decimals="0" unitRef="USD">2,973</ix:nonFraction></td><td style="color: black; text-align: left">&#160;</td></tr>
<tr id="xdx_407_eus-gaap--IncreaseDecreaseInAccruedLiabilities_i02_maCz6xr_zj8GuBg2Axke" style="vertical-align: bottom; background-color: White">
    <td style="padding: 0 0 0 20pt; text-align: left">Accrued liabilities</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">&#160;</td><td style="color: black; text-align: right"><ix:nonFraction name="us-gaap:IncreaseDecreaseInAccruedLiabilities" contextRef="From2021-01-01to2021-09-30" format="ixt:numdotdecimal" decimals="0" unitRef="USD">349,269</ix:nonFraction></td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">&#160;</td><td style="color: black; text-align: right">(<ix:nonFraction name="us-gaap:IncreaseDecreaseInAccruedLiabilities" contextRef="From2020-01-012020-09-30" format="ixt:numdotdecimal" decimals="0" sign="-" unitRef="USD">85,301</ix:nonFraction></td><td style="color: black; text-align: left">)</td></tr>
<tr id="xdx_409_eus-gaap--IncreaseDecreaseInContractWithCustomerLiability_i02_maCz6xr_zec8zs4JR1z5" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding: 0 0 0 20pt; text-align: left">Contract liabilities</td><td style="color: black; padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; color: black; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><ix:nonFraction name="us-gaap:IncreaseDecreaseInContractWithCustomerLiability" contextRef="From2021-01-01to2021-09-30" format="ixt:numdotdecimal" decimals="0" unitRef="USD">155,853</ix:nonFraction></td><td style="padding-bottom: 1pt; color: black; text-align: left">&#160;</td><td style="color: black; padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; color: black; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><ix:nonFraction name="us-gaap:IncreaseDecreaseInContractWithCustomerLiability" contextRef="From2020-01-012020-09-30" format="ixt:numdotdecimal" decimals="0" unitRef="USD">78,153</ix:nonFraction></td><td style="padding-bottom: 1pt; color: black; text-align: left">&#160;</td></tr>
<tr id="xdx_407_eus-gaap--NetCashProvidedByUsedInOperatingActivities_iT_mtCz6xr_maCzxq9_zsrrR7TrWMag" style="vertical-align: bottom; background-color: White">
    <td style="color: black; text-align: left">Net cash used in operating activities</td><td style="color: black; padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; color: black; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; color: black; text-align: right">(<ix:nonFraction name="us-gaap:NetCashProvidedByUsedInOperatingActivities" contextRef="From2021-01-01to2021-09-30" format="ixt:numdotdecimal" decimals="0" sign="-" unitRef="USD">743,435</ix:nonFraction></td><td style="padding-bottom: 1pt; color: black; text-align: left">)</td><td style="color: black; padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; color: black; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; color: black; text-align: right">(<ix:nonFraction name="us-gaap:NetCashProvidedByUsedInOperatingActivities" contextRef="From2020-01-012020-09-30" format="ixt:numdotdecimal" decimals="0" sign="-" unitRef="USD">290,529</ix:nonFraction></td><td style="padding-bottom: 1pt; color: black; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
<tr id="xdx_405_eus-gaap--NetCashProvidedByUsedInInvestingActivitiesAbstract_iB_zmg1OEbU7zj2" style="vertical-align: bottom; background-color: White">
    <td style="font-weight: bold; text-align: left">Cash Flows From Investing Activities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
<tr id="xdx_408_eus-gaap--PaymentsToAcquireMarketableSecurities_i01N_di_msCzBTw_zuKM1Fdj4Cr" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding: 0 0 0 20pt; color: black; text-align: left">Net purchases of investment in trading marketable securities</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">&#160;</td><td style="color: black; text-align: right">(<ix:nonFraction name="us-gaap:PaymentsToAcquireMarketableSecurities" contextRef="From2021-01-01to2021-09-30" format="ixt:numdotdecimal" decimals="0" unitRef="USD">6,101,461</ix:nonFraction></td><td style="color: black; text-align: left">)</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">&#160;</td><td style="color: black; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0434">&#8212;</span></td><td style="color: black; text-align: left">&#160;</td></tr>
<tr id="xdx_401_eus-gaap--PaymentsToAcquirePropertyPlantAndEquipment_i01N_di_msCzBTw_zTc0Qb9ZLo8b" style="vertical-align: bottom; background-color: White">
    <td style="padding: 0 0 0 20pt; color: black; text-align: left">Purchase of property and equipment</td><td style="color: black; padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; color: black; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; color: black; text-align: right">(<ix:nonFraction name="us-gaap:PaymentsToAcquirePropertyPlantAndEquipment" contextRef="From2021-01-01to2021-09-30" format="ixt:numdotdecimal" decimals="0" unitRef="USD">1,221,826</ix:nonFraction></td><td style="padding-bottom: 1pt; color: black; text-align: left">)</td><td style="color: black; padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; color: black; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; color: black; text-align: right">(<ix:nonFraction name="us-gaap:PaymentsToAcquirePropertyPlantAndEquipment" contextRef="From2020-01-012020-09-30" format="ixt:numdotdecimal" decimals="0" unitRef="USD">177,045</ix:nonFraction></td><td style="padding-bottom: 1pt; color: black; text-align: left">)</td></tr>
<tr id="xdx_404_eus-gaap--NetCashProvidedByUsedInInvestingActivities_iT_mtCzBTw_maCzxq9_z0Y6GLr1aNA4" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="color: black; text-align: left">Net cash used in investing activities</td><td style="color: black; padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; color: black; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; color: black; text-align: right">(<ix:nonFraction name="us-gaap:NetCashProvidedByUsedInInvestingActivities" contextRef="From2021-01-01to2021-09-30" format="ixt:numdotdecimal" decimals="0" sign="-" unitRef="USD">7,323,287</ix:nonFraction></td><td style="padding-bottom: 1pt; color: black; text-align: left">)</td><td style="color: black; padding-bottom: 1pt">&#160;</td>
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<tr style="vertical-align: bottom; background-color: White">
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<tr id="xdx_40D_eus-gaap--NetCashProvidedByUsedInFinancingActivitiesAbstract_iB_zVIzOsXFyIj9" style="vertical-align: bottom; background-color: rgb(204,238,255)">
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<tr id="xdx_407_eus-gaap--ProceedsFromIssuanceOfCommonStock_i01_maCzhjT_zaf68KC5wd22" style="vertical-align: bottom; background-color: White">
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<tr id="xdx_406_eus-gaap--ProceedsFromShortTermDebt_i01_maCzhjT_zwqUmcmeHmug" style="vertical-align: bottom; background-color: rgb(204,238,255)">
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<tr id="xdx_40E_eus-gaap--ProceedsFromLoans_i01_maCzhjT_zYiaHs9ob1db" style="vertical-align: bottom; background-color: White">
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<tr id="xdx_406_eus-gaap--ProceedsFromRelatedPartyDebt_i01_maCzhjT_z82aWNeDJUvb" style="vertical-align: bottom; background-color: rgb(204,238,255)">
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<tr id="xdx_403_eus-gaap--RepaymentsOfRelatedPartyDebt_i01N_di_msCzhjT_zoovbbgqTPI4" style="vertical-align: bottom; background-color: White">
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<tr id="xdx_408_eus-gaap--FinanceLeasePrincipalPayments_i01N_di_msCzhjT_z2zdmMCrHzvh" style="vertical-align: bottom; background-color: rgb(204,238,255)">
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<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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<tr id="xdx_406_eus-gaap--CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseExcludingExchangeRateEffect_iT_mtCzxq9_zyLPK85PsV9f" style="vertical-align: bottom; background-color: White">
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<tr id="xdx_40A_eus-gaap--CashAndCashEquivalentsAtCarryingValue_iS_zr1lO15d84s4" style="vertical-align: bottom; background-color: rgb(204,238,255)">
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<tr id="xdx_407_eus-gaap--CashAndCashEquivalentsAtCarryingValue_iE_zujM20DkdbX5" style="vertical-align: bottom; background-color: White">
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<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
<tr id="xdx_402_eus-gaap--SupplementalCashFlowInformationAbstract_iB_zIut4ZNdUGWa" style="vertical-align: bottom; background-color: White">
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    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
<tr id="xdx_403_eus-gaap--IncomeTaxesPaidNet_i01_z6GpoD1i0777" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="color: black; text-align: left">Cash paid for income taxes</td><td style="color: black; padding-bottom: 2.5pt">&#160;</td>
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<tr id="xdx_40C_eus-gaap--InterestPaidNet_i01_zCfgHxqXwS8i" style="vertical-align: bottom; background-color: White">
    <td style="color: black; text-align: left">Cash paid for interest</td><td style="color: black; padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; color: black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><ix:nonFraction name="us-gaap:InterestPaidNet" contextRef="From2021-01-01to2021-09-30" format="ixt:numdotdecimal" decimals="0" unitRef="USD">118,906</ix:nonFraction></td><td style="padding-bottom: 2.5pt; color: black; text-align: left">&#160;</td><td style="color: black; padding-bottom: 2.5pt">&#160;</td>
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<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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<tr id="xdx_40D_eus-gaap--CashFlowNoncashInvestingAndFinancingActivitiesDisclosureAbstract_iB_zVXHCwKY02m4" style="vertical-align: bottom; background-color: White">
    <td style="color: black; font-weight: bold; text-align: left">Non Cash Investing and Financing Activities</td><td>&#160;</td>
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<tr id="xdx_401_ecustom--IncreaseInRightofuseAssetAndLeaseLiability_i01_zgwb7aHHWC15" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="color: black; text-align: left">Increase in the right-of-use asset and lease liability</td><td style="color: black; padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; color: black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><ix:nonFraction name="tvpc:IncreaseInRightofuseAssetAndLeaseLiability" contextRef="From2021-01-01to2021-09-30" format="ixt:numdotdecimal" decimals="0" unitRef="USD">655,726</ix:nonFraction></td><td style="padding-bottom: 2.5pt; color: black; text-align: left">&#160;</td><td style="color: black; padding-bottom: 2.5pt">&#160;</td>
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</table>


<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><i>&#160;</i></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><i>The accompanying notes are an integral part
of these unaudited condensed consolidated financial statements</i></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>

<!-- Field: Page; Sequence: 8; Value: 1 -->
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    <div style="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"><tr><td style="text-align: left; width: 100%"><a href="#toc">Table of Contents</a></td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>TWIN VEE POWERCATS CO.</b>&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(F/K/A TWIN VEE CATAMARANS, INC.)</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b><span id="a_006"></span>NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>SEPTEMBER 30, 2021</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&#160;</p>

<ix:nonNumeric contextRef="From2021-01-01to2021-09-30" escape="true" name="us-gaap:OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureAndSignificantAccountingPoliciesTextBlock"><p id="xdx_80F_eus-gaap--OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureAndSignificantAccountingPoliciesTextBlock_z8akFWOjawKh" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>1.&#160;<span id="xdx_828_zyiyy0tlLnna">Organization and Summary of Significant
Accounting Policies</span></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<ix:nonNumeric contextRef="From2021-01-01to2021-09-30" escape="true" name="tvpc:OrganizationPolicyTextBlock"><p id="xdx_843_ecustom--OrganizationPolicyTextBlock_zLQC2u0OaI6f" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i><span id="xdx_866_z8Urhq2piibc">Organization</span></i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Twin Vee PowerCats Co. (&#8220;Twin Vee&#8221;)
was incorporated as Twin Vee Catamarans, Inc., in the state of Florida, on December 1, 2009. On April 7, 2021, the Company filed
a Certificate of Conversion to register and incorporate in the state of Delaware and changed the company name to Twin Vee PowerCats
Co. The Certificate of Incorporation for Twin Vee PowerCats Co. was also filed on April 7, 2021.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On September 1, 2021, the Company formed Fix
My Boat, Inc., (&#8220;Fix My Boat&#8221;), a wholly-owned subsidiary. Fix My Boat will utilize a franchise model for marine mechanics
across the country. While Fix My Boat was established, there was no activity through September 30, 2021.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" escape="true" name="us-gaap:ConsolidationPolicyTextBlock"><p id="xdx_848_eus-gaap--ConsolidationPolicyTextBlock_ziqs38KolSB1" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i><span id="xdx_86F_zm4AqhHn99z3">Principles of Consolidation</span> </i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>&#160;</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">The accompanying condensed
consolidated financial statements include the accounts of the Company, Twin Vee PowerCats Co. and the wholly owned subsidiary,
Fix My Boat, Inc.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">The Company operates
two separate entities. Each of these entities is consolidated. All inter-company accounts and transactions have been eliminated
in consolidation.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt; background-color: white">&#160;</p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" escape="true" name="us-gaap:BasisOfAccountingPolicyPolicyTextBlock"><p id="xdx_849_eus-gaap--BasisOfAccountingPolicyPolicyTextBlock_zvMIpAU2ZZp6" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i><span id="xdx_863_zmC5fsdaAxMa">Basis of Presentation</span></i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying unaudited condensed consolidated
financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America
(&#8220;GAAP&#160;&#8221;) for interim financial statements and with the instructions to Form 10-Q and Rule 8-03 of Regulation
S-X of the United States Securities and Exchange Commission (&#8220;SEC&#8221;). Accordingly, they do not contain all information
and footnotes required by accounting principles generally accepted in the United States of America for annual financial statements.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In the opinion of the Company&#8217;s management,
the accompanying unaudited condensed consolidated financial statements contain all the adjustments necessary (consisting only of
normal recurring accruals) to present the financial position of the Company as of September 30, 2021 and the results of operations
and cash flows for the periods presented. The results of operations for the nine months ended September 30, 2021 are not necessarily
indicative of the operating results for the full fiscal year or any future period. These unaudited condensed consolidated financial
statements should be read in conjunction with the financial statements and related notes thereto for the year ended December 31,
2020 included in the Company&#8217;s Prospectus on Form 424(b)(4) filed with the SEC on July 22, 2021.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" escape="true" name="tvpc:CommonStockSplitPolicyTextBlock"><p id="xdx_84A_ecustom--CommonStockSplitPolicyTextBlock_zHB669FxAq96" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i><span id="xdx_862_zm5P3sdb6vjd">Common Stock Split</span></i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On May 13, 2021, the Company effected a forty
thousand&#160;<span id="xdx_903_eus-gaap--StockholdersEquityNoteStockSplit_c20210501__20210513" title="Common Stock Split"><ix:nonNumeric contextRef="From2021-05-012021-05-13" name="us-gaap:StockholdersEquityNoteStockSplit">(40,000)-for-one</ix:nonNumeric></span>&#160;stock split to the shareholder of record as of May 13, 2021. The stock split was in the form
of a common stock dividend of&#160;<span id="xdx_905_eus-gaap--CommonStockDividendsShares_c20210501__20210513_pdd" title="Common stock dividend"><ix:nonFraction name="us-gaap:CommonStockDividendsShares" contextRef="From2021-05-012021-05-13" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">3,999,900</ix:nonFraction></span>&#160;new shares and all share and per share information has been retroactively adjusted
to reflect the stock split.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" escape="true" name="us-gaap:UseOfEstimates"><p id="xdx_842_eus-gaap--UseOfEstimates_z7yRtxgXIXC6" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Use of Estimates</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The preparation of financial statements in
conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses
during the reporting period. Some of these judgments can be subjective and complex, and, consequently, actual results may differ
from these estimates.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<ix:exclude><p id="xdx_23B_z2rpBnO2A99i" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p></ix:exclude>

<ix:exclude><!-- Field: Page; Sequence: 9; Value: 1 -->
    <div id="xdx_237_zaiknPsrtP9" style="border-bottom: Black 2pt solid; margin-top: 12pt; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" id="xdx_230_zHrHwZL3WZl8" style="font: 10pt Times New Roman, Times, Serif; width: 100%"><tr><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->7<!-- Field: /Sequence --></td></tr></table></div>
    <div id="xdx_230_znyLkhVZ6kx2" style="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"><tr><td style="text-align: left; width: 100%"><a href="#toc">Table of Contents</a></td></tr></table></div>
    <!-- Field: /Page --></ix:exclude>

<ix:exclude><p id="xdx_233_zpFVaQQwEns6" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p></ix:exclude>

</ix:nonNumeric><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" escape="true" name="us-gaap:CashAndCashEquivalentsPolicyTextBlock"><p id="xdx_845_eus-gaap--CashAndCashEquivalentsPolicyTextBlock_zSKjylSNVJRl" style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i><span id="xdx_865_z2APKdgClzP8">Cash and Cash Equivalents</span></i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>&#160;</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Cash and cash equivalents include all highly
liquid investments with original maturities of three months or less at the time of purchase. On September 30, 2021 and December&#160;31,
2020, the Company had cash and cash equivalents of $<span id="xdx_906_eus-gaap--CashAndCashEquivalentsAtCarryingValue_c20210930_pp0p0" title="Cash and cash equivalents at end of period"><ix:nonFraction name="us-gaap:CashAndCashEquivalentsAtCarryingValue" contextRef="AsOf2021-09-30" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">8,978,908</ix:nonFraction></span> and $<span id="xdx_908_eus-gaap--CashAndCashEquivalentsAtCarryingValue_c20201231_pp0p0" title="Cash at beginning of period"><ix:nonFraction name="us-gaap:CashAndCashEquivalentsAtCarryingValue" contextRef="AsOf2020-12-31" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">891,816</ix:nonFraction></span>, respectively.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" escape="true" name="us-gaap:ConcentrationRiskCreditRisk"><p id="xdx_84B_eus-gaap--ConcentrationRiskCreditRisk_zUegBPxQR684" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i><span id="xdx_860_zPVj4C7GLmo6">Concentrations of Credit and Business
Risk</span></i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>&#160;</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Financial instruments that potentially subject
the Company to concentrations of credit risk primarily consist of trade receivables. Credit risk on trade receivables is mitigated
as a result of the Company&#8217;s use of trade letters of credit, dealer floor plan financing arrangements, and the geographically
diversified nature of the Company&#8217;s customer base. The Company minimizes the concentration of credit risk associated with
its cash by maintaining its cash with high quality federally insured financial institutions. However, cash balances in excess of
the Federal Deposit Insurance Corporation (&#8220;FDIC&#8221;) insured limit of $<span id="xdx_902_eus-gaap--CashFDICInsuredAmount_c20210930_pp0p0" title="FDIC insured limit"><ix:nonFraction name="us-gaap:CashFDICInsuredAmount" contextRef="AsOf2021-09-30" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">250,000</ix:nonFraction></span>&#160;are at risk. As of September 30,
2021 and December 31, 2020, the Company had $<span id="xdx_90C_eus-gaap--CashUninsuredAmount_c20210930_pp0p0" title="FDIC uninsured amount"><ix:nonFraction name="us-gaap:CashUninsuredAmount" contextRef="AsOf2021-09-30" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">8,728,908</ix:nonFraction></span>&#160;and $<span id="xdx_906_eus-gaap--CashUninsuredAmount_c20201231_pp0p0" title="FDIC uninsured amount"><ix:nonFraction name="us-gaap:CashUninsuredAmount" contextRef="AsOf2020-12-31" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">641,816</ix:nonFraction></span>, respectively, in excess of FDIC insured limits.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" escape="true" name="us-gaap:MarketableSecuritiesPolicy"><p id="xdx_84D_eus-gaap--MarketableSecuritiesPolicy_zlxStswjtDi1" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><span id="xdx_86C_zdmfnGW5pUg3">Marketable Securities</span></i></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our investments in debt securities are carried
at either amortized cost or fair value. Investments in debt securities that the Company has the positive intent and ability to
hold to maturity are carried at amortized cost and classified as held-to-maturity. Investments in debt securities that are not
classified as held-to-maturity are carried at fair value and classified as either trading or available-for-sale. Realized and unrealized
gains and losses on trading debt securities as well as realized gains and losses on available-for-sale debt securities are included
in net income.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" escape="true" name="us-gaap:RevenueRecognitionPolicyTextBlock"><p id="xdx_84E_eus-gaap--RevenueRecognitionPolicyTextBlock_zOG0Y7flqdFc" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i><span id="xdx_861_zwQZjTRADxia">Revenue Recognition</span></i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company&#8217;s revenue is derived primarily
from the sale of boats, motors and trailers to its independent dealers. The Company recognizes revenue when obligations under the
terms of a contract are satisfied and control over promised goods is transferred to the dealer. For the majority of sales, this
occurs when the product is released to the carrier responsible for transporting it to a dealer. The Company typically receives
payment within five business days of shipment. Revenue is measured as the amount of consideration it expects to receive in exchange
for a product. The Company offers dealer incentives that include wholesale rebates, retail rebates and promotions, floor plan reimbursement
or cash discounts, and other allowances that are recorded as reductions of revenues in net sales in the statements of operations.
The consideration recognized represents the amount specified in a contract with a customer, net of estimated incentives the Company
reasonably expects to pay. The estimated liability and reduction in revenue for dealer incentives is recorded at the time of sale.
Subsequent adjustments to incentive estimates are possible because actual results may differ from these estimates if conditions
dictate the need to enhance or reduce sales promotion and incentive programs or if dealer achievement or other items vary from
historical trends. Accrued dealer incentives are included in accrued expenses and other current liabilities in the accompanying
balance sheets.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accounts for revenue in accordance
with Financial Accounting Standards Board (&#8220;FASB&#8221;) Accounting Standards Codification (&#8220;ASC&#8221;) Topic 606
which was adopted at the beginning of fiscal year 2018 using the modified retrospective method. The Company did not recognize any
cumulative-effect adjustment to retained earnings upon adoption as the effect was immaterial.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Payment received for the future sale of a boat
to a customer is recognized as a customer deposit, which is included in contract liabilities on the balance sheet. Customer deposits
are recognized as revenue when control over promised goods is transferred to the customer. During the period ended September 30,
2021 and year ended December 31, 2020, the Company had customer deposits of $<span id="xdx_905_eus-gaap--ContractWithCustomerLiabilityCurrent_c20210930_pp0p0" title="Customer deposits"><ix:nonFraction name="us-gaap:ContractWithCustomerLiabilityCurrent" contextRef="AsOf2021-09-30" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">162,637</ix:nonFraction></span>&#160;and $<span id="xdx_90B_eus-gaap--ContractWithCustomerLiabilityCurrent_c20201231_pp0p0" title="Customer deposits"><ix:nonFraction name="us-gaap:ContractWithCustomerLiabilityCurrent" contextRef="AsOf2020-12-31" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">6,784</ix:nonFraction></span>, respectively, and is expected
to be recognized as revenue within a one-year period.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<ix:exclude><p id="xdx_234_zs9x6eFgmuS7" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p></ix:exclude>

<ix:exclude><!-- Field: Page; Sequence: 10; Value: 1 -->
    <div id="xdx_233_ziWjnkpb9hl" style="border-bottom: Black 2pt solid; margin-top: 12pt; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" id="xdx_234_zRIBVltUYaj5" style="font: 10pt Times New Roman, Times, Serif; width: 100%"><tr><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->8<!-- Field: /Sequence --></td></tr></table></div>
    <div id="xdx_235_zWb7BXXZOi39" style="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"><tr><td style="text-align: left; width: 100%"><a href="#toc">Table of Contents</a></td></tr></table></div>
    <!-- Field: /Page --></ix:exclude>

<ix:exclude><p id="xdx_23E_zTx41zf8BOD7" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p></ix:exclude>

</ix:nonNumeric><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" escape="true" name="tvpc:RebatesAndDiscountsPolicyTextBlock"><p id="xdx_84F_ecustom--RebatesAndDiscountsPolicyTextBlock_zBBZMvH5gvX" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><span id="xdx_86F_zSN96c30pwn">Rebates and Discounts</span></i></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Dealers earn wholesale rebates based on purchase
volume commitments and achievement of certain performance metrics. The Company estimates the amount of wholesale rebates based
on historical achievement, forecasted volume, and assumptions regarding dealer behavior. Rebates that apply to boats already in
dealer inventory are referred to as retail rebates. The Company estimates the amount of retail rebates based on historical data
for specific boat models adjusted for forecasted sales volume, product mix, dealer and consumer behavior, and assumptions concerning
market conditions. The Company also utilizes various programs whereby it offers cash discounts or agrees to reimburse its dealers
for certain floor plan interest costs incurred by dealers for limited periods of time, generally ranging up to nine months.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" escape="true" name="tvpc:ShippingAndHandlingCostsPolicyTextBlock"><p id="xdx_849_ecustom--ShippingAndHandlingCostsPolicyTextBlock_zvcz2jqASUQj" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><span id="xdx_861_zQriPxjqjjzd">Shipping and Handling Costs</span></i></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">All manufactured boats are free on board (FOB),
from the Fort Pierce manufacturing plant. Dealers are required to either pick up the boats themselves or contract with a transporter.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" escape="true" name="us-gaap:ResearchAndDevelopmentExpensePolicy"><p id="xdx_842_eus-gaap--ResearchAndDevelopmentExpensePolicy_zXeawkSBJ1D5" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><span id="xdx_866_zmkaRge9LbKf">Research and Development</span></i></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>&#160;</i></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company expenses research and development
costs relating to new product development as they are incurred. For the nine months ended September 30, 2021 and 2020, research
and development costs amounted to $61,091 and $0, respectively.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" escape="true" name="tvpc:OtherRevenueRecognitionMattersPolicyTextBlock"><p id="xdx_848_ecustom--OtherRevenueRecognitionMattersPolicyTextBlock_zWD9UeIHI8jb" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><span id="xdx_863_z9RdSu6ClNo3">Other Revenue Recognition Matters</span></i></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Dealers generally have no right to return unsold
boats. Occasionally, the Company may accept returns in limited circumstances and at the Company&#8217;s discretion under its warranty
policy. The Company may be obligated, in the event of default by a dealer, to accept returns of unsold boats under its repurchase
commitment to floor financing providers, who are able to obtain such boats through foreclosure. The repurchase commitment is on
an individual unit basis with a term from the date it is financed by the lending institution through the payment date by the dealer,
generally not exceeding 30 months.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has excluded sales and other taxes
assessed by a governmental authority in connection with revenue-producing activities from the determination of the transaction
price for all contracts. The Company has not adjusted net sales for the effects of a significant financing component because the
period between the transfer of the promised goods and the customer&#8217;s payment is expected to be one year or less.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" escape="true" name="tvpc:SupplierConcentrationsPolicyTextBlock"><p id="xdx_848_ecustom--SupplierConcentrationsPolicyTextBlock_ziCBkYoIQg3a" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i><span id="xdx_866_zYG4BBbGdEVe">Supplier Concentrations</span></i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>&#160;</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company is dependent on the ability of
its suppliers to provide products on a timely basis and on favorable pricing terms. The loss of certain principal suppliers or
a significant reduction in product availability from principal suppliers could have a material adverse effect on the Company. Business
risk insurance is in place to mitigate the business risk associated with sole suppliers for sudden disruptions such as those caused
by natural disasters.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company is dependent on third-party equipment
manufacturers, distributors, and dealers for certain parts and materials utilized in the manufacturing process. During the nine
months ended September 30, 2021, the Company purchased all engines for its boats under a supply agreement with a single vendor.
For the nine months ended September 30, 2021, and 2020, total purchases from this vendor were $<span id="xdx_90E_eus-gaap--AccountsPayableRelatedPartiesCurrent_c20210930_pp0p0" title="Account payables"><ix:nonFraction name="us-gaap:AccountsPayableRelatedPartiesCurrent" contextRef="AsOf2021-09-30" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">2,805,739</ix:nonFraction></span> and $<span id="xdx_907_eus-gaap--AccountsPayableRelatedPartiesCurrent_c20201231_pp0p0" title="Account payables"><ix:nonFraction name="us-gaap:AccountsPayableRelatedPartiesCurrent" contextRef="AsOf2020-12-31" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">1,475,873</ix:nonFraction></span>, respectively.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

</ix:nonNumeric></ix:nonNumeric><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" escape="true" name="tvpc:MarketableSecuritieTextBlock"><p id="xdx_808_ecustom--MarketableSecuritieTextBlock_zGVcGzMJNOF6" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>2.&#160;<span id="xdx_828_zdOWySF8Pqwi">Marketable securities</span></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>&#160;</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Investments in debt securities that are not
classified as held-to-maturity are carried at fair value and classified as either trading or available-for-sale. Realized and unrealized
gains and losses on trading debt securities as well as realized gains and losses on available-for-sale debt securities are included
in net loss.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<ix:exclude><p id="xdx_233_zv5XSBUPd5t2" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p></ix:exclude>

<ix:exclude><!-- Field: Page; Sequence: 11; Value: 1 -->
    <div id="xdx_233_zjZnZBlwmixk" style="border-bottom: Black 2pt solid; margin-top: 12pt; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" id="xdx_230_zQfmldLLRVbk" style="font: 10pt Times New Roman, Times, Serif; width: 100%"><tr><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->9<!-- Field: /Sequence --></td></tr></table></div>
    <div id="xdx_23B_zAxAeKFNPPs2" style="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"><tr><td style="text-align: left; width: 100%"><a href="#toc">Table of Contents</a></td></tr></table></div>
    <!-- Field: /Page --></ix:exclude>

<ix:exclude><p id="xdx_231_zubuZfuUNip3" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p></ix:exclude>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following tables show the Company&#8217;s
fair value marketable securities by investment category as of September 30, 2021 and December 31, 2020:</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<ix:nonNumeric contextRef="From2021-01-01to2021-09-30" escape="true" name="us-gaap:MarketableSecuritiesTextBlock"><table cellpadding="0" cellspacing="0" id="xdx_889_eus-gaap--MarketableSecuritiesTextBlock_zENfYGxbf9r2" summary="xdx: Disclosure - Marketable securities (Details)" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom; background-color: White">
    <td style="color: black; padding-top: 0; padding-right: 0"><span id="xdx_8B0_zvpSLgkU5bx1"><span id="xdx_8BE_zjexIYIljhGh" style="display: none">Schedule
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    <td style="color: black; text-align: left">&#160;</td><td style="color: black; text-align: right">&#160;</td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">&#160;</td><td id="xdx_49F_20210930_zKSgTCx0Xrbk" style="color: black; text-align: right">&#160;</td><td style="color: black; text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_490_20201231_zEYvZHwtroe9" style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
<tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td colspan="3" style="text-align: center">&#160;</td><td style="color: black">&#160;</td>
    <td colspan="3" style="color: black; text-align: center">September 30,</td><td style="color: black">&#160;</td>
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<tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="padding-bottom: 1pt">&#160;</td>
    <td colspan="3" style="text-align: center">&#160;</td><td style="color: black; padding-bottom: 1pt">&#160;</td>
    <td colspan="3" style="border-bottom: Black 1pt solid; color: black; text-align: center">2021</td><td style="color: black; padding-bottom: 1pt">&#160;</td>
    <td colspan="3" style="border-bottom: Black 1pt solid; color: black; text-align: center">2020</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 46%; color: black; text-align: left">Corporate debt securities</td><td style="width: 5%; color: black">&#160;</td>
    <td style="width: 1%; color: black; text-align: left">&#160;</td><td style="width: 11%; color: black; text-align: right"><span style="font: 10pt Times New Roman, Times, Serif; color: black">Level 2</span></td><td style="width: 1%; color: black; text-align: left">&#160;</td><td style="width: 5%; color: black">&#160;</td>
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<tr style="vertical-align: bottom; background-color: White">
    <td style="color: black">Certificates of deposit</td><td style="color: black; padding-bottom: 1pt">&#160;</td>
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<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
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</table></ix:nonNumeric>


<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Level 2 applies to assets or liabilities for
which there are inputs other than quoted prices that are observable for the assets or liability such as quoted prices for similar
assets or liabilities in active markets, quoted prices for identical assets or liabilities in markets with insufficient volume
or infrequent transactions (less active markets), or model-derived valuations in which significant inputs are observable or can
be derived principally from, or corroborated by observable market data.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We classify our marketable securities as trading
securities as of September 30, 2021.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" escape="true" name="us-gaap:InventoryDisclosureTextBlock"><p id="xdx_802_eus-gaap--InventoryDisclosureTextBlock_zKO5ZCMBWnh3" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>3. <span id="xdx_82F_zshvoxD8pUOf">Inventories</span></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">At September 30, 2021 and December 31, 2020
inventories consisted of the following:</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<ix:nonNumeric contextRef="From2021-01-01to2021-09-30" escape="true" name="us-gaap:ScheduleOfInventoryCurrentTableTextBlock"><table cellpadding="0" cellspacing="0" id="xdx_88D_eus-gaap--ScheduleOfInventoryCurrentTableTextBlock_zGC3tkv9CjKe" summary="xdx: Disclosure -  Inventories (Details)" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom; background-color: White">
    <td style="color: black; text-align: left"><span id="xdx_8B1_zKAANHCvBbqb" style="display: none">Schedule of Inventories</span></td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">&#160;</td><td id="xdx_492_20210930" style="color: black; text-align: right">&#160;</td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">&#160;</td><td id="xdx_494_20201231" style="color: black; text-align: right">&#160;</td><td style="color: black; text-align: left">&#160;</td></tr>
<tr style="vertical-align: bottom">
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    <td colspan="3" style="color: black; text-align: center">September 30,</td><td style="color: black">&#160;</td>
    <td colspan="3" style="color: black; text-align: center">December 31,</td></tr>
<tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="color: black; padding-bottom: 1pt">&#160;</td>
    <td colspan="3" style="border-bottom: Black 1pt solid; color: black; text-align: center">2021</td><td style="color: black; padding-bottom: 1pt">&#160;</td>
    <td colspan="3" style="border-bottom: Black 1pt solid; color: black; text-align: center">2020</td></tr>
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    <td style="width: 56%; color: black; text-align: left">Raw Materials</td><td style="width: 8%; color: black">&#160;</td>
    <td style="width: 1%; color: black; text-align: left">$</td><td style="width: 12%; color: black; text-align: right"><ix:nonFraction name="us-gaap:InventoryRawMaterials" contextRef="AsOf2021-09-30" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">2,072,464</ix:nonFraction></td><td style="width: 1%; color: black; text-align: left">&#160;</td><td style="width: 8%; color: black">&#160;</td>
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<tr id="xdx_401_eus-gaap--InventoryWorkInProcess_iI_pp0p0_maINzJuM_zDwTgukKLMhd" style="vertical-align: bottom; background-color: White">
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    <td style="border-bottom: Black 1pt solid; color: black; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><ix:nonFraction name="us-gaap:InventoryFinishedGoods" contextRef="AsOf2021-09-30" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">90,417</ix:nonFraction></td><td style="padding-bottom: 1pt; color: black; text-align: left">&#160;</td><td style="color: black; padding-bottom: 1pt">&#160;</td>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" escape="true" name="us-gaap:PropertyPlantAndEquipmentDisclosureTextBlock"><p id="xdx_80A_eus-gaap--PropertyPlantAndEquipmentDisclosureTextBlock_zfFyvlSA96E5" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>4.&#160;<span id="xdx_82A_zCU03Z7Y4poe">Property and Equipment</span></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">At September 30, 2021 and December&#160;31,
2020, property and equipment consisted of the following:</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<ix:nonNumeric contextRef="From2021-01-01to2021-09-30" escape="true" name="us-gaap:PropertyPlantAndEquipmentTextBlock"><table cellpadding="0" cellspacing="0" id="xdx_883_eus-gaap--PropertyPlantAndEquipmentTextBlock_zoi2dq5yb2m" summary="xdx: Disclosure - Property and Equipment (Details)" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom; background-color: White">
    <td style="color: black; text-align: left"><span id="xdx_8B3_zNiRqPGh3Jz2" style="display: none">Schedule of property and equipment</span></td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">&#160;</td><td style="color: black; text-align: right">&#160;</td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">&#160;</td><td style="color: black; text-align: right">&#160;</td><td style="color: black; text-align: left">&#160;</td></tr>
<tr style="vertical-align: bottom">
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    <td colspan="3" style="color: black; text-align: center">September 30,</td><td style="color: black">&#160;</td>
    <td colspan="3" style="color: black; text-align: center">December 31,</td></tr>
<tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="color: black; padding-bottom: 1pt">&#160;</td>
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<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 56%; color: black; text-align: left">Machinery and equipment</td><td style="width: 8%; color: black">&#160;</td>
    <td style="width: 1%; color: black; text-align: left">$</td><td id="xdx_98E_eus-gaap--PropertyPlantAndEquipmentGross_c20210930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--MachineryAndEquipmentMember_pp0p0" title="Property and equipment, gross" style="width: 12%; color: black; text-align: right"><ix:nonFraction name="us-gaap:PropertyPlantAndEquipmentGross" contextRef="AsOf2021-09-30_us-gaap_MachineryAndEquipmentMember" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">1,114,290</ix:nonFraction></td><td style="width: 1%; color: black; text-align: left">&#160;</td><td style="width: 8%; color: black">&#160;</td>
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<tr style="vertical-align: bottom; background-color: White">
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<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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<tr style="vertical-align: bottom; background-color: White">
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<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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<tr style="vertical-align: bottom; background-color: White">
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<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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<tr style="vertical-align: bottom; background-color: White">
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<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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<tr style="vertical-align: bottom; background-color: White">
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</table></ix:nonNumeric>


<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Depreciation and amortization expense of property
and equipment for the nine months ended September 30, 2021 and 2020 is $<span id="xdx_901_eus-gaap--DepreciationAndAmortization_c20210101__20210930_pp0p0" title="Depreciation and amortization"><ix:nonFraction name="us-gaap:DepreciationAndAmortization" contextRef="From2021-01-01to2021-09-30" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">132,089</ix:nonFraction></span>&#160;and $<span id="xdx_90F_eus-gaap--DepreciationAndAmortization_c20200101__20200930_pp0p0" title="Depreciation and amortization"><ix:nonFraction name="us-gaap:DepreciationAndAmortization" contextRef="From2020-01-012020-09-30" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">95,954</ix:nonFraction></span>, respectively.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<ix:exclude><p id="xdx_23A_zzEiDfj6ES54" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p></ix:exclude>

<ix:exclude><!-- Field: Page; Sequence: 12; Value: 1 -->
    <div id="xdx_23B_zSl4oGjGnHv9" style="border-bottom: Black 2pt solid; margin-top: 12pt; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" id="xdx_236_zjkAElcbAEEl" style="font: 10pt Times New Roman, Times, Serif; width: 100%"><tr><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->10<!-- Field: /Sequence --></td></tr></table></div>
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    <!-- Field: /Page --></ix:exclude>

<ix:exclude><p id="xdx_233_zUoqpLmoWRMk" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p></ix:exclude>

</ix:nonNumeric><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" escape="true" name="us-gaap:LeasesOfLesseeDisclosureTextBlock"><p id="xdx_805_eus-gaap--LeasesOfLesseeDisclosureTextBlock_z5fbIX7adHrk" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>5.&#160;<span id="xdx_82E_z8MhXSvESO39">Leases &#8211; Related Party</span></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Operating right of use (&#8220;ROU&#8221;)
assets and operating lease liabilities are recognized at the lease commencement date. Operating lease liabilities represent the
present value of lease payments not yet paid. Operating right of use assets represent our right to use an underlying asset and
is based&#160;upon the operating lease liabilities adjusted for prepayments or accrued lease payments, initial direct costs, lease
incentives, and impairment of operating lease assets. To determine the present value of lease payments not yet paid, we estimate
incremental secured borrowing rates corresponding to the maturities of the leases. We used the U.S. Treasury rate of&#160;<span id="xdx_905_eus-gaap--DebtInstrumentInterestRateEffectivePercentage_iI_dp_c20210930_zStqZ6VBVM2b" title="Interest rate"><ix:nonFraction name="us-gaap:DebtInstrumentInterestRateEffectivePercentage" contextRef="AsOf2021-09-30" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">0.36</ix:nonFraction></span>%
and&#160;<span id="xdx_908_eus-gaap--DebtInstrumentInterestRateEffectivePercentage_iI_dp_c20201231_zc2xQq0Ga9Ch" title="Interest rate"><ix:nonFraction name="us-gaap:DebtInstrumentInterestRateEffectivePercentage" contextRef="AsOf2020-12-31" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">1.67</ix:nonFraction></span>% at September 30, 2021 and December 31, 2020, respectively.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our office lease contains rent escalations
over the lease term.&#160;We recognize expense for this office lease on a straight-line basis over the lease term. Additionally,
tenant incentives used to fund leasehold improvements are recognized when earned and reduce our right-of-use asset related to the
lease. These are amortized through the right-of-use asset as reductions of expense over the lease term.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company leases its office and warehouse
facilities, and the land which are located at 3101 S US-1, Fort Pierce, Florida (the &#8220;Property&#8221;) from Visconti Holdings,
LLC. Visconti Holdings, LLC is a single member LLC that holds the ownership of the property, and its sole member is Joseph C
Visconti, the CEO and majority shareholder of the Company. The Company entered into the lease on January 1, 2020, and as amended
January 1, 2021, the lease has a term of five <span id="xdx_906_eus-gaap--LesseeOperatingLeaseTermOfContract_iI_dtY_c20210930__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--ViscontiHoldingsLLCMember_zhdtAIhBm92f" title="Lease term"><span id="xdx_901_eus-gaap--LesseeOperatingLeaseTermOfContract_iI_dtY_c20201231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--ViscontiHoldingsLLCMember_zIFZguF42bh9" title="Lease term" style="display: none"><ix:nonNumeric contextRef="AsOf2021-09-30_custom_ViscontiHoldingsLLCMember" format="ixt-sec:duryear" name="us-gaap:LesseeOperatingLeaseTermOfContract"><ix:nonNumeric contextRef="AsOf2020-12-31_custom_ViscontiHoldingsLLCMember" format="ixt-sec:duryear" name="us-gaap:LesseeOperatingLeaseTermOfContract">5</ix:nonNumeric></ix:nonNumeric></span></span> &#160;years. The current base rent payment is $<span id="xdx_904_eus-gaap--OperatingLeasePayments_c20210101__20210930__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--ViscontiHoldingsLLCMember_pp0p0" title="Lease payment"><ix:nonFraction name="us-gaap:OperatingLeasePayments" contextRef="From2021-01-012021-09-30_custom_ViscontiHoldingsLLCMember" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">30,000</ix:nonFraction></span>&#160;per
month including property taxes and the lease required a $<span id="xdx_907_eus-gaap--SecurityDeposit_c20210930__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--ViscontiHoldingsLLCMember_pp0p0" title="Security deposit"><ix:nonFraction name="us-gaap:SecurityDeposit" contextRef="AsOf2021-09-30_custom_ViscontiHoldingsLLCMember" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">25,000</ix:nonFraction></span>&#160;security
deposit. The base rent will increase five percent (5%) on the anniversary of each annual term.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<ix:exclude><p id="xdx_23E_zvAQqL8smdhi" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p></ix:exclude>

<ix:exclude><!-- Field: Page; Sequence: 13; Value: 1 -->
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    <!-- Field: /Page --></ix:exclude>

<ix:exclude><p id="xdx_23E_zvAL0gRPn7pk" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p></ix:exclude>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">At September 30, 2021 and December 31, 2020,
supplemental balance sheet information related to leases were as follows:</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="margin-top: 0; margin-bottom: 0">&#160;</p>

<ix:nonNumeric contextRef="From2021-01-01to2021-09-30" escape="true" name="tvpc:ScheduleOfLeasesSupplementalBalanceSheetInformation"><table cellpadding="0" cellspacing="0" id="xdx_891_ecustom--ScheduleOfLeasesSupplementalBalanceSheetInformation_zbJVzdl0AMMb" summary="xdx: Disclosure -  Leases - Related Party (Details)" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
    <td style="text-align: left; padding-top: 0; padding-right: 0"><span id="xdx_8B9_zqv5UNubEjx8" style="display: none">Schedule of leases supplemental balance sheet information</span></td><td>&#160;</td>
    <td colspan="3" id="xdx_499_20210930_zcnKr0WBTC8b" style="text-align: center">&#160;</td><td>&#160;</td>
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<tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td>&#160;</td>
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<tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="padding-bottom: 1pt">&#160;</td>
    <td colspan="3" style="border-bottom: Black 1pt solid; text-align: center">2021</td><td style="padding-bottom: 1pt">&#160;</td>
    <td colspan="3" style="border-bottom: Black 1pt solid; text-align: center">2020</td></tr>
<tr id="xdx_40E_eus-gaap--OperatingLeaseRightOfUseAsset_iI_pp0p0" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 56%; text-align: left">Operating lease ROU asset</td><td style="width: 8%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right"><ix:nonFraction name="us-gaap:OperatingLeaseRightOfUseAsset" contextRef="AsOf2021-09-30" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">1,646,700</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 8%">&#160;</td>
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</table>


<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_493_20210930_z1n85t05WNw9" style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_499_20201231_zHyvNx09cWzk" style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
<tr style="vertical-align: bottom">
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<tr style="vertical-align: bottom">
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<tr id="xdx_40A_eus-gaap--OperatingLeaseLiabilityAbstract_iB" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Operating lease liabilities:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
<tr id="xdx_40A_eus-gaap--OperatingLeaseLiabilityCurrent_iI_pp0p0_maOLLz0NW_zgfrG0FbOjO5" style="vertical-align: bottom; background-color: White">
    <td style="width: 56%; text-align: left">Current portion</td><td style="width: 8%">&#160;</td>
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<tr id="xdx_403_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_pp0p0_maOLLz0NW_zqLbVfo78tq4" style="vertical-align: bottom; background-color: rgb(204,238,255)">
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<tr id="xdx_406_eus-gaap--OperatingLeaseLiability_iTI_pp0p0_mtOLLz0NW_zcCl6dIPhSf2" style="vertical-align: bottom; background-color: White">
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</ix:nonNumeric><p id="xdx_8AF_zcpE9FUSdwyj" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">At September 30, 2021, future minimum lease
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<ix:nonNumeric contextRef="From2021-01-01to2021-09-30" escape="true" name="us-gaap:LesseeOperatingLeaseLiabilityMaturityTableTextBlock"><table cellpadding="0" cellspacing="0" id="xdx_890_eus-gaap--LesseeOperatingLeaseLiabilityMaturityTableTextBlock_zC8a8GmAcYr3" summary="xdx: Disclosure - Leases - Related Party (Details1)" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom; background-color: White">
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<tr style="vertical-align: bottom">
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<tr id="xdx_403_eus-gaap--OperatingLeasesFutureMinimumPaymentsDueCurrent_iI_maLOLPTzx3Z_zSgDhc3oynCk" style="vertical-align: bottom; background-color: rgb(204,238,255)">
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<tr id="xdx_40F_eus-gaap--OperatingLeasesFutureMinimumPaymentsDueInTwoYears_iI_maLOLPTzx3Z_z4T4AOjNVkRh" style="vertical-align: bottom; background-color: White">
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<tr id="xdx_40C_eus-gaap--OperatingLeasesFutureMinimumPaymentsDueInThreeYears_iI_maLOLPTzx3Z_zEWGg5BCzPGl" style="vertical-align: bottom; background-color: rgb(204,238,255)">
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<tr id="xdx_402_eus-gaap--OperatingLeasesFutureMinimumPaymentsDueInFourYears_iI_maLOLPTzx3Z_zFVhPyMPRFb7" style="vertical-align: bottom; background-color: White">
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<tr id="xdx_40D_eus-gaap--OperatingLeasesFutureMinimumPaymentsDueInFiveYears_iI_maLOLPTzx3Z_zwlq5osnVjA4" style="vertical-align: bottom; background-color: rgb(204,238,255)">
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<tr id="xdx_404_eus-gaap--OperatingLeasesFutureMinimumPaymentsDue_iTI_mtLOLPTzx3Z_zjXgxAKcXUCj" style="vertical-align: bottom; background-color: White">
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<tr id="xdx_404_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iNI_di_zcUDq0PbNJq7" style="vertical-align: bottom; background-color: rgb(204,238,255)">
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<tr id="xdx_407_eus-gaap--OperatingLeaseLiability_iI_zpMRMWDVuWa5" style="vertical-align: bottom; background-color: White">
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</table>


</ix:nonNumeric><p id="xdx_8A3_z5KWXUZFzpgj" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; color: red">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">The following summarizes other supplemental information about the
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p>

<ix:nonNumeric contextRef="From2021-01-01to2021-09-30" escape="true" name="us-gaap:LeaseCostTableTextBlock"><table cellpadding="0" cellspacing="0" id="xdx_89C_eus-gaap--LeaseCostTableTextBlock_z4dxzWKyfrEk" summary="xdx: Disclosure - Leases - Related Party (Details 2)" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom; background-color: White">
    <td style="display: none; text-align: left"><span id="xdx_8B2_zhOdQ6mmhf71">Schedule of operating lease cost</span></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
<tr style="vertical-align: bottom">
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<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 70%">Weighted average discount rate</td><td style="width: 10%">&#160;</td>
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<tr style="vertical-align: bottom; background-color: White">
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</table>


<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&#160;</p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom; background-color: White">
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    <td style="text-align: left">&#160;</td><td id="xdx_495_20210101_20210930" style="text-align: right">&#160;</td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
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<tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td colspan="7" style="text-align: center">Nine Months Ended</td></tr>
<tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="padding-bottom: 1pt">&#160;</td>
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<tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="padding-bottom: 1pt">&#160;</td>
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    <td colspan="3" style="border-bottom: Black 1pt solid; text-align: center">2020</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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<tr style="vertical-align: bottom; background-color: White">
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    <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_980_eus-gaap--LeaseCost_c20210101__20210930_pp0p0" title="Total lease cost" style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:LeaseCost" contextRef="From2021-01-01to2021-09-30" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">293,022</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
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</table>


</ix:nonNumeric><p id="xdx_8AA_zr2ajfSjqV5i" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

<ix:exclude><!-- Field: Page; Sequence: 14; Value: 1 -->
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    <!-- Field: /Page --></ix:exclude>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" escape="true" name="us-gaap:AccountsPayableAndAccruedLiabilitiesDisclosureTextBlock"><p id="xdx_80F_eus-gaap--AccountsPayableAndAccruedLiabilitiesDisclosureTextBlock_z4rfgjDLhdsd" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>6.&#160;<span id="xdx_824_zXBvHPVuOIS1">Accrued Liabilities</span></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">At September 30, 2021 and December 31, 2020,
accrued liabilities consisted of the following:</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<ix:nonNumeric contextRef="From2021-01-01to2021-09-30" escape="true" name="us-gaap:ScheduleOfAccruedLiabilitiesTableTextBlock"><table cellpadding="0" cellspacing="0" id="xdx_88B_eus-gaap--ScheduleOfAccruedLiabilitiesTableTextBlock_zIxvP3OAjbF6" summary="xdx: Disclosure - Accrued Liabilities (Details)" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom; background-color: White">
    <td style="color: black; text-align: left"><span id="xdx_8BD_z4UBNpIJbppl" style="display: none">Accrued Liabilities</span></td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">&#160;</td><td id="xdx_494_20210930_zgGG2rHK1rz2" style="color: black; text-align: right">&#160;</td><td style="color: black; text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_490_20201231_zohscA55yrMk" style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
<tr style="vertical-align: bottom">
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    <td colspan="3" style="color: black; text-align: center">December 31,</td></tr>
<tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="color: black; padding-bottom: 1pt">&#160;</td>
    <td colspan="3" style="border-bottom: Black 1pt solid; color: black; text-align: center">2021</td><td style="color: black; padding-bottom: 1pt">&#160;</td>
    <td colspan="3" style="border-bottom: Black 1pt solid; color: black; text-align: center">2020</td></tr>
<tr id="xdx_40F_eus-gaap--AccruedSalariesCurrent_iI_pp0p0_maALCANzNZm_zGuouoTUo5x9" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 56%; color: black; text-align: left">Accrued wages and benefits</td><td style="width: 8%; color: black">&#160;</td>
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<tr id="xdx_401_eus-gaap--AccruedBonusesCurrent_iI_pp0p0_maALCANzNZm_zhUf8e6flKi6" style="vertical-align: bottom; background-color: White">
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<tr id="xdx_40F_ecustom--AccruedOperatingExpenses_iI_pp0p0_maALCANzNZm_zLnjCvzITDfh" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="color: black; text-align: left">Accrued operating expenses</td><td style="color: black">&#160;</td>
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<tr id="xdx_40C_eus-gaap--InterestPayableCurrent_iI_pp0p0_maALCANzNZm_zzR0pTF6adnb" style="vertical-align: bottom; background-color: White">
    <td style="color: black">Interest</td><td style="color: black">&#160;</td>
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    <td style="color: black; text-align: left">&#160;</td><td style="color: black; text-align: right"><ix:nonFraction name="us-gaap:InterestPayableCurrent" contextRef="AsOf2020-12-31" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">62,317</ix:nonFraction></td><td style="color: black; text-align: left">&#160;</td></tr>
<tr id="xdx_409_eus-gaap--OtherAccruedLiabilitiesCurrent_iI_pp0p0_maALCANzNZm_zTJcXFGHtAY3" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="color: black">Other</td><td style="color: black; padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; color: black; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><ix:nonFraction name="us-gaap:OtherAccruedLiabilitiesCurrent" contextRef="AsOf2021-09-30" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">77,395</ix:nonFraction></td><td style="padding-bottom: 1pt; color: black; text-align: left">&#160;</td><td style="color: black; padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; color: black; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><ix:nonFraction name="us-gaap:OtherAccruedLiabilitiesCurrent" contextRef="AsOf2020-12-31" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">19,631</ix:nonFraction></td><td style="padding-bottom: 1pt; color: black; text-align: left">&#160;</td></tr>
<tr id="xdx_402_eus-gaap--AccruedLiabilitiesCurrentAndNoncurrent_iTI_pp0p0_mtALCANzNZm_zo50pfeHFuPk" style="vertical-align: bottom; background-color: White">
    <td style="color: White">Total accrued liabilities&#160;</td><td style="color: black; padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; color: black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><ix:nonFraction name="us-gaap:AccruedLiabilitiesCurrentAndNoncurrent" contextRef="AsOf2021-09-30" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">492,205</ix:nonFraction></td><td style="padding-bottom: 2.5pt; color: black; text-align: left">&#160;</td><td style="color: black; padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; color: black; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; color: black; text-align: right"><ix:nonFraction name="us-gaap:AccruedLiabilitiesCurrentAndNoncurrent" contextRef="AsOf2020-12-31" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">142,936</ix:nonFraction></td><td style="padding-bottom: 2.5pt; color: black; text-align: left">&#160;</td></tr>
</table></ix:nonNumeric>


<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" escape="true" name="tvpc:NotesPayablePaycheckProtectionProgramTextBlock"><p id="xdx_809_ecustom--NotesPayablePaycheckProtectionProgramTextBlock_zCZLAfoga6y1" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>7.&#160;<span id="xdx_82C_zXrfj35RLxEg">Notes Payable &#8211; Paycheck Protection
Program</span></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In response to the coronavirus disease (&#8220;Covid-19&#8221;)
COVID-19 pandemic, the PPP round 2 was established under the Coronavirus Aid, Relief, and Economic Security (&#8220;CARES&#8221;)
Act and administered by the Small Business Administration (&#8220;SBA&#8221;). Companies who met the eligibility requirements set
forth by the PPP round 2 could qualify for PPP loans. If the loan proceeds are fully utilized to pay qualified expenses, the full
principal amount of the PPP loan, along with any accrued interest, may qualify for loan forgiveness, subject to potential reduction
based on whether the company can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and
2020. The Company has applied for forgiveness.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On March 19, 2021, the Company received a loan
of $<span id="xdx_900_eus-gaap--LoansPayable_c20210319__us-gaap--LongtermDebtTypeAxis__custom--PPPLoanMember_pp0p0" title="Loan"><ix:nonFraction name="us-gaap:LoansPayable" contextRef="AsOf2021-03-19_custom_PPPLoanMember" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">608,224</ix:nonFraction></span>&#160;under the PPP round 2 provided by&#160;<span style="background-color: white">SunTrust/Trust Bank.&#160;</span>The
loan bears interest at&#160;<span id="xdx_90D_eus-gaap--DebtInstrumentInterestRateDuringPeriod_dp_c20210301__20210319__us-gaap--LongtermDebtTypeAxis__custom--PPPLoanMember_zZlcGSBgVCed" title="Interest rate"><ix:nonFraction name="us-gaap:DebtInstrumentInterestRateDuringPeriod" contextRef="From2021-03-012021-03-19_custom_PPPLoanMember" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">1.0</ix:nonFraction></span>%. No payments are due until the earlier of the application for forgiveness or ten months from the
end of the twenty-four week covered period.&#160;The loan and interest would be paid back over a period of 5 years from the loan
origination date if the loan is not forgiven under the terms of the PPP. Funds from the loan may only be used for payroll and other
qualified costs, as defined.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" escape="true" name="tvpc:NotesPayableSbaEidlLoanTextBlock"><p id="xdx_80B_ecustom--NotesPayableSbaEidlLoanTextBlock_zElA1BsMdQNg" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>8.&#160;<span id="xdx_824_z312tpPmVsFg">Notes Payable &#8211; SBA EIDL Loan</span></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On April 22, 2020, the Company received an
SBA Economic Injury Disaster Loan (&#8220;EIDL&#8221;) in the amount of $<span id="xdx_90A_eus-gaap--DebtInstrumentFaceAmount_c20200422__us-gaap--LongtermDebtTypeAxis__custom--EIDLMember_pp0p0" title="Loan amount"><ix:nonFraction name="us-gaap:DebtInstrumentFaceAmount" contextRef="AsOf2020-04-22_custom_EIDLMember" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">499,900</ix:nonFraction></span>. The loan is in response to the COVID<span style="letter-spacing: -0.55pt">-</span>19
Pandemic. The loan is a&#160;<span id="xdx_901_eus-gaap--DebtInstrumentTerm_dtY_c20200401__20200422__us-gaap--LongtermDebtTypeAxis__custom--EIDLMember_z5AIa9XDJoUd" title="Loan term"><ix:nonNumeric contextRef="From2020-04-012020-04-22_custom_EIDLMember" format="ixt-sec:duryear" name="us-gaap:DebtInstrumentTerm">30</ix:nonNumeric></span>-year loan with an interest rate of&#160;<span id="xdx_90C_eus-gaap--DebtInstrumentInterestRateDuringPeriod_dp_c20200401__20200422__us-gaap--LongtermDebtTypeAxis__custom--EIDLMember_z3ZPTCreRXj2" title="Interest rate"><ix:nonFraction name="us-gaap:DebtInstrumentInterestRateDuringPeriod" contextRef="From2020-04-012020-04-22_custom_EIDLMember" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">3.75</ix:nonFraction></span>%, monthly payments of $<span id="xdx_90E_eus-gaap--DebtInstrumentPeriodicPayment_c20200401__20200422__us-gaap--LongtermDebtTypeAxis__custom--EIDLMember_pp0p0" title="Periodic payments"><ix:nonFraction name="us-gaap:DebtInstrumentPeriodicPayment" contextRef="From2020-04-012020-04-22_custom_EIDLMember" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">2,437</ix:nonFraction></span>&#160;to begin April 22,
2022, under the EIDL program, which is administered through the SBA. Under the guidelines of the EIDL, the maximum term is 30 years;
however, terms are determined on a case-by-case basis based on each borrower&#8217;s ability to repay and carry an interest rate
of 3.75%. The EIDL loan has an initial deferment period wherein no payments are due for twenty-four months from the date of disbursement.&#160;<span style="background-color: white">The
EIDL loan may be prepaid by the Company at any time prior to maturity with no prepayment penalties. The proceeds from this loan
must be used&#160;solely as working capital to alleviate economic injury caused by the COVID-19 pandemic.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="background-color: white">As part
of the EIDL loan, the Company&#160;granted the SBA a continuing security interest in and to any and all collateral to secure payment
and performance of all debts, liabilities and obligations of the Company to the SBA under the EIDL loan. The collateral includes
substantially all tangible and intangible personal property of the Company.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="background-color: white">&#160;</span></p>

<ix:exclude><p id="xdx_232_z79C5C0lgsR" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p></ix:exclude>

<ix:exclude><!-- Field: Page; Sequence: 15; Value: 1 -->
    <div id="xdx_231_zRago4S2yIQ4" style="border-bottom: Black 2pt solid; margin-top: 12pt; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"><tr><td id="xdx_237_ziw5onqdvXd1" style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->13<!-- Field: /Sequence --></td></tr></table></div>
    <div id="xdx_232_zqBL7gnxRzK8" style="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"><tr><td style="text-align: left; width: 100%"><a href="#toc">Table of Contents</a></td></tr></table></div>
    <!-- Field: /Page --></ix:exclude>

<ix:exclude><p id="xdx_239_zF9C5WCpd7G5" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p></ix:exclude>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">A summary of the minimum maturities of term
debt follows for the years ending December 31, 2021.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<ix:nonNumeric contextRef="From2021-01-01to2021-09-30" escape="true" name="us-gaap:ScheduleOfMaturitiesOfLongTermDebtTableTextBlock"><table cellpadding="0" cellspacing="0" id="xdx_889_eus-gaap--ScheduleOfMaturitiesOfLongTermDebtTableTextBlock_zqLlJmlkEIG" summary="xdx: Disclosure - Notes Payable - SBA EIDL Loan (Details)" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 85%">
<tr style="vertical-align: bottom; background-color: White">
    <td style="color: black; text-align: left"><span id="xdx_8B5_zjU5ZePHEcP5" style="display: none">Schedule of Minimum Maturities</span></td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">&#160;</td><td id="xdx_495_20211231_zVgSbYUhGtYl" style="color: black; text-align: right">&#160;</td><td style="color: black; text-align: left">&#160;</td></tr>
<tr style="vertical-align: bottom">
    <td colspan="2" style="color: black; text-align: left">Year</td><td>&#160;</td>
    <td colspan="3" style="text-align: center">&#160;</td></tr>
<tr id="xdx_40B_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalRemainderOfFiscalYear_iI_z2MrKnYZTakb" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="color: black; text-align: left">2021</td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0737">&#8212;</span></td><td style="color: black; text-align: left">&#160;</td></tr>
<tr id="xdx_403_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInNextTwelveMonths_iI_zsN3kSosGJV4" style="vertical-align: bottom; background-color: White">
    <td style="width: 43%; color: black; text-align: left">2022</td><td style="width: 1%; color: black; text-align: left">&#160;</td><td style="width: 10%; color: black">&#160;</td>
    <td style="width: 1%; color: black; text-align: left">&#160;</td><td style="width: 43%; color: black; text-align: right"><ix:nonFraction name="us-gaap:LongTermDebtMaturitiesRepaymentsOfPrincipalInNextTwelveMonths" contextRef="AsOf2021-12-31" format="ixt:numdotdecimal" decimals="0" unitRef="USD">1,846</ix:nonFraction></td><td style="width: 1%; color: black; text-align: left">&#160;</td></tr>
<tr id="xdx_403_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearTwo_iI_zwauBXHS272a" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="color: black; text-align: left">2023</td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">&#160;</td><td style="color: black; text-align: right"><ix:nonFraction name="us-gaap:LongTermDebtMaturitiesRepaymentsOfPrincipalInYearTwo" contextRef="AsOf2021-12-31" format="ixt:numdotdecimal" decimals="0" unitRef="USD">9,459</ix:nonFraction></td><td style="color: black; text-align: left">&#160;</td></tr>
<tr id="xdx_40B_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearThree_iI_zBxj6dUZmLn6" style="vertical-align: bottom; background-color: White">
    <td style="color: black; text-align: left">2024</td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">&#160;</td><td style="color: black; text-align: right"><ix:nonFraction name="us-gaap:LongTermDebtMaturitiesRepaymentsOfPrincipalInYearThree" contextRef="AsOf2021-12-31" format="ixt:numdotdecimal" decimals="0" unitRef="USD">9,820</ix:nonFraction></td><td style="color: black; text-align: left">&#160;</td></tr>
<tr id="xdx_403_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFour_iI_zbqZ56UpeHAl" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="color: black; text-align: left">2025</td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">&#160;</td><td style="color: black; text-align: right"><ix:nonFraction name="us-gaap:LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFour" contextRef="AsOf2021-12-31" format="ixt:numdotdecimal" decimals="0" unitRef="USD">10,195</ix:nonFraction></td><td style="color: black; text-align: left">&#160;</td></tr>
<tr id="xdx_402_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFive_iI_zFnxuplrl5Z5" style="vertical-align: bottom; background-color: White">
    <td style="color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif; color: black">2026 and thereafter</span></td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">&#160;</td><td style="color: black; text-align: right"><ix:nonFraction name="us-gaap:LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFive" contextRef="AsOf2021-12-31" format="ixt:numdotdecimal" decimals="0" unitRef="USD">501,566</ix:nonFraction></td><td style="color: black; text-align: left">&#160;</td></tr>
</table></ix:nonNumeric>


<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" escape="true" name="us-gaap:RelatedPartyTransactionsDisclosureTextBlock"><p id="xdx_80C_eus-gaap--RelatedPartyTransactionsDisclosureTextBlock_zq5tD66Jupb" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>9.&#160;<span id="xdx_826_zHP1FldhrCof">Related Party Transactions</span></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On December 31, 2018, the Company entered into
a loan and promissory note with Joseph C. Visconti, the CEO and majority shareholder of the Company. The principal amount of the
loan was $<span id="xdx_90C_eus-gaap--DebtInstrumentFaceAmount_c20181231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--JosephCViscontiMember_pp0p0" title="Principal amount"><ix:nonFraction name="us-gaap:DebtInstrumentFaceAmount" contextRef="AsOf2018-12-31_custom_JosephCViscontiMember" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">525,500</ix:nonFraction></span>, together with a simple interest rate of&#160;<span id="xdx_903_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_dp_c20181231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--JosephCViscontiMember_zBYwxQ5iiHOd" title="Interest rate"><ix:nonFraction name="us-gaap:DebtInstrumentInterestRateStatedPercentage" contextRef="AsOf2018-12-31_custom_JosephCViscontiMember" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">6</ix:nonFraction></span>% on the balance of principal remaining unpaid. During the nine
months ended September 30, 2021, the Company repaid $<span id="xdx_905_eus-gaap--RepaymentsOfRelatedPartyDebt_c20210101__20210930__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--JosephCViscontiMember_pp0p0" title="Repayment of related party debt"><ix:nonFraction name="us-gaap:RepaymentsOfRelatedPartyDebt" contextRef="From2021-01-012021-09-30_custom_JosephCViscontiMember" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">27,850</ix:nonFraction></span>. At September 30, 2021 and December 31, 2020, the outstanding amount
of the note payable was $<span id="xdx_90E_eus-gaap--NotesPayableRelatedPartiesCurrentAndNoncurrent_c20210930__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--JosephCViscontiMember_pp0p0" title="Related party notes payable"><ix:nonFraction name="us-gaap:NotesPayableRelatedPartiesCurrentAndNoncurrent" contextRef="AsOf2021-09-30_custom_JosephCViscontiMember" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">0</ix:nonFraction></span>&#160;and $<span id="xdx_90C_eus-gaap--NotesPayableRelatedPartiesCurrentAndNoncurrent_c20201231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--JosephCViscontiMember_pp0p0" title="Related party notes payable"><ix:nonFraction name="us-gaap:NotesPayableRelatedPartiesCurrentAndNoncurrent" contextRef="AsOf2020-12-31_custom_JosephCViscontiMember" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">27,850</ix:nonFraction></span>, respectively.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As discussed in note 5, the Company has leased
its facilities from a company owned by its CEO.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the nine months ended September 30,
2021, and 2020, the Company had purchases of $<span id="xdx_904_ecustom--PurchasedFromRelatedParty_c20210101__20210930__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--RelatedpartyMember_pp0p0" title="Purchased from related party"><ix:nonFraction name="tvpc:PurchasedFromRelatedParty" contextRef="From2021-01-012021-09-30_custom_RelatedpartyMember" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">90,417</ix:nonFraction></span>&#160;and $<span id="xdx_906_ecustom--PurchasedFromRelatedParty_c20200101__20200930__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--RelatedpartyMember_pp0p0" title="Purchased from related party"><ix:nonFraction name="tvpc:PurchasedFromRelatedParty" contextRef="From2020-01-012020-09-30_custom_RelatedpartyMember" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">0</ix:nonFraction></span>, respectively, from a related party. The Company paid $<span id="xdx_90D_eus-gaap--RepaymentsOfRelatedPartyDebt_c20210101__20210930__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--TwinVeePowercatsMember_pp0p0" title="Repayment of related party debt"><ix:nonFraction name="us-gaap:RepaymentsOfRelatedPartyDebt" contextRef="From2021-01-012021-09-30_custom_TwinVeePowercatsMember" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">90,417</ix:nonFraction></span>&#160;to
our parent company, Twin Vee PowerCats, Inc., to purchase a 36-foot used catamaran boat.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the nine months ended September 30,
2021, and 2020, the Company received cash of $<span id="xdx_90A_eus-gaap--ProceedsFromRelatedPartyDebt_c20210101__20210930__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--RelatedpartyMember_pp0p0" title="Advances from related parties"><ix:nonFraction name="us-gaap:ProceedsFromRelatedPartyDebt" contextRef="From2021-01-012021-09-30_custom_RelatedpartyMember" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">33,128</ix:nonFraction></span>&#160;and $<span id="xdx_908_eus-gaap--ProceedsFromRelatedPartyDebt_c20200101__20200930__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--RelatedpartyMember_pp0p0" title="Advances from related parties"><ix:nonFraction name="us-gaap:ProceedsFromRelatedPartyDebt" contextRef="From2020-01-012020-09-30_custom_RelatedpartyMember" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">117,406</ix:nonFraction></span>&#160;from its affiliate companies and paid $<span id="xdx_90D_eus-gaap--RepaymentsOfRelatedPartyDebt_c20210101__20210930__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--RelatedpartyMember_pp0p0" title="Repayment of related party debt"><ix:nonFraction name="us-gaap:RepaymentsOfRelatedPartyDebt" contextRef="From2021-01-012021-09-30_custom_RelatedpartyMember" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">339,576</ix:nonFraction></span>&#160;and
$<span id="xdx_90F_eus-gaap--RepaymentsOfRelatedPartyDebt_c20200101__20200930__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--RelatedpartyMember_pp0p0" title="Repayment of related party debt"><ix:nonFraction name="us-gaap:RepaymentsOfRelatedPartyDebt" contextRef="From2020-01-012020-09-30_custom_RelatedpartyMember" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">647,744</ix:nonFraction></span>&#160;to its affiliate companies, respectively.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During nine months ended September 30, 2021,
and 2020, the Company recorded management fees of $<span id="xdx_901_eus-gaap--ManagementFeeExpense_c20210101__20210930__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--RelatedpartyMember_pp0p0" title="Management fees"><ix:nonFraction name="us-gaap:ManagementFeeExpense" contextRef="From2021-01-012021-09-30_custom_RelatedpartyMember" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">31,500</ix:nonFraction></span>&#160;and $<span id="xdx_903_eus-gaap--ManagementFeeExpense_c20200101__20200930__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--RelatedpartyMember_pp0p0" title="Management fees"><ix:nonFraction name="us-gaap:ManagementFeeExpense" contextRef="From2020-01-012020-09-30_custom_RelatedpartyMember" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">0</ix:nonFraction></span>, respectively, paid to its shareholder parent company.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">After taking into account the activity described
the balance due to affiliated companies was $<span id="xdx_907_eus-gaap--DueFromAffiliates_iI_c20210930_zb5FC8ogLS5j" title="Due from Affiliates"><ix:nonFraction name="us-gaap:DueFromAffiliates" contextRef="AsOf2021-09-30" format="ixt:numdotdecimal" decimals="0" unitRef="USD">115,043</ix:nonFraction></span> at September 30,2021.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" escape="true" name="us-gaap:CommitmentsAndContingenciesDisclosureTextBlock"><p id="xdx_801_eus-gaap--CommitmentsAndContingenciesDisclosureTextBlock_z5BYYoSx0vOe" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>10.&#160;<span id="xdx_821_zYIPu4hCr9a2">Commitments and Contingencies</span></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Repurchase Obligations</i></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Under certain conditions, the Company is obligated
to repurchase new inventory repossessed from dealerships by financial institutions that provide credit to the Company&#8217;s dealers.
The maximum obligation of the Company under such floor plan agreements totaled approximately $<span id="xdx_907_eus-gaap--ContractualObligation_c20210930_pp0p0" title="Maximum obligation"><ix:nonFraction name="us-gaap:ContractualObligation" contextRef="AsOf2021-09-30" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">2,844,000</ix:nonFraction></span>&#160;and $<span id="xdx_90C_eus-gaap--ContractualObligation_c20201231_pp0p0" title="Maximum obligation"><ix:nonFraction name="us-gaap:ContractualObligation" contextRef="AsOf2020-12-31" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">1,790,000</ix:nonFraction></span>&#160;as
of September 30, 2021, and December 31,&#160;2020, respectively. The Company incurred no impact from repurchase events during the
nine months ended September 30, 2021 and year ended December 31, 2020.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>COVID-19</i></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The COVID-19 outbreak in the United States
has caused business disruption through mandated and voluntary closings of multiple industries. While disruption is currently expected
to be temporary, there is considerable uncertainty regarding the duration of the closings. The extent to which COVID-19 impacts
future results, which are highly uncertain and cannot be predicted, including new information which may emerge concerning the severity
of the coronavirus and the action to contain it or treat its impact, among others. At this time, the Company cannot estimate with
meaningful precision the potential impact of COVID-19 to its financial and operational results.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<ix:exclude><p id="xdx_230_zM2GwNqBDTP5" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p></ix:exclude>

<ix:exclude><!-- Field: Page; Sequence: 16; Value: 1 -->
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    <div id="xdx_23D_zlGKLbbrJHjc" style="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"><tr><td style="text-align: left; width: 100%"><a href="#toc">Table of Contents</a></td></tr></table></div>
    <!-- Field: /Page --></ix:exclude>

<ix:exclude><p id="xdx_239_zLjNFQR7hId9" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p></ix:exclude>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Litigation</i></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company is currently involved in various
civil litigation in the normal course of business none of which is considered material.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" escape="true" name="us-gaap:StockholdersEquityNoteDisclosureTextBlock"><p id="xdx_80A_eus-gaap--StockholdersEquityNoteDisclosureTextBlock_zp5fwfCKN3Ch" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>11.&#160;<span id="xdx_828_zxLh5o0NsqWl">Stockholder&#8217;s Equity</span></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On April 7, 2021, the Company filed a Certificate
of Incorporation with the Secretary of State of the State of Delaware (see Note 1) which authorizes the Company to issue&#160;<span id="xdx_901_eus-gaap--CommonStockSharesAuthorized_c20210407_pdd" title="Common stock, shares authorized"><ix:nonFraction name="us-gaap:CommonStockSharesAuthorized" contextRef="AsOf2021-04-07" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">50,000,000</ix:nonFraction></span>&#160;shares
of common stock and&#160;<span id="xdx_90C_eus-gaap--PreferredStockSharesIssued_c20210407_pdd" title="Preferred stock, shares"><ix:nonFraction name="us-gaap:PreferredStockSharesIssued" contextRef="AsOf2021-04-07" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">10,000,000</ix:nonFraction></span>&#160;shares of preferred stock, each with a par value of $<span id="xdx_90F_eus-gaap--PreferredStockParOrStatedValuePerShare_c20210407_pdd" title="Preferred stock, par value"><ix:nonFraction name="us-gaap:PreferredStockParOrStatedValuePerShare" contextRef="AsOf2021-04-07" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">0.001</ix:nonFraction></span>.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On May 13, 2021, the Company effected a <span id="xdx_90C_eus-gaap--StockholdersEquityReverseStockSplit_c20210101__20210930_zj2DAE7LsyS8" title="Stock split"><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" name="us-gaap:StockholdersEquityReverseStockSplit">forty-thousand
(40,000)-for-one stock split</ix:nonNumeric></span> to the shareholder of record as of May 13, 2021. The stock split was in the form of a common stock
dividend of 3,999,900 new shares and all share and per share information has been retroactively adjusted to reflect the stock split.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On July 23, 2021, the Company, consummated
its initial public offering (the &#8220;IPO&#8221;) of&#160;<span id="xdx_907_eus-gaap--SharesIssued_iI_c20210723__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--IPOMember_z7NZjzWaSOGe" title="Number of shares issued"><ix:nonFraction name="us-gaap:SharesIssued" contextRef="AsOf2021-07-23_us-gaap_IPOMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">3,000,000</ix:nonFraction></span>&#160;shares of its common stock (&#8220;Shares&#8221;) at
a public offering price of $<span id="xdx_904_eus-gaap--SharePrice_iI_c20210723__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--IPOMember_zTC6Vy6pBpcc" title="Share price"><ix:nonFraction name="us-gaap:SharePrice" contextRef="AsOf2021-07-23_us-gaap_IPOMember" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">6.00</ix:nonFraction></span>&#160;per Share, generating gross proceeds of $<span id="xdx_902_eus-gaap--ProceedsFromIssuanceInitialPublicOffering_pp0p0_c20210701__20210723__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--IPOMember_zLIORdC3vFj3" title="Proceeds from Issuance Initial Public Offering"><ix:nonFraction name="us-gaap:ProceedsFromIssuanceInitialPublicOffering" contextRef="From2021-07-012021-07-23_us-gaap_IPOMember" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">18,000,000</ix:nonFraction></span>, which netted to the Company $15,849,037
after offering expenses. The Company had granted the underwriters a 45-day option to purchase up to&#160;<span id="xdx_90C_ecustom--SharePurchase_c20210701__20210723__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--OverAllotmentOptionMember_zKwKfhrvJtkb" title="Share purchase"><span id="xdx_90F_ecustom--SharePurchase_c20210701__20210723__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--OverAllotmentOptionMember_zcTj4FXWNtX7" title="Share purchase"><ix:nonFraction name="tvpc:SharePurchase" contextRef="From2021-07-012021-07-23_us-gaap_OverAllotmentOptionMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares"><ix:nonFraction name="tvpc:SharePurchase" contextRef="From2021-07-012021-07-23_us-gaap_OverAllotmentOptionMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">450,500</ix:nonFraction></ix:nonFraction></span></span>&#160;additional
Shares to cover over-allotment., which option expired unexercised.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>Common Stock Warrants</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>&#160;</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of September 30, 2021, the Company has outstanding
warrants to purchase&#160;<span id="xdx_905_eus-gaap--SharesIssued_iI_c20210930__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--IPOMember_zTFvB65mrxc2" title="Number of shares issued"><ix:nonFraction name="us-gaap:SharesIssued" contextRef="AsOf2021-09-30_us-gaap_IPOMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">3,000,000</ix:nonFraction></span>&#160;shares of common stock issuable at a weighted-average exercise price of $<span id="xdx_90F_eus-gaap--SharePrice_iI_c20210930__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--IPOMember_zAiquj4VZksi" title="Share price"><ix:nonFraction name="us-gaap:SharePrice" contextRef="AsOf2021-09-30_us-gaap_IPOMember" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">7.50</ix:nonFraction></span> per share
that were issued to the representative of the underwriters in connection with the IPO. There was no warrant activity during the
quarter ended September 30, 2021 other than the warrant issuance.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><b><i>Equity Compensation Plans</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><b><i>&#160;</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">The Company maintains
an equity compensation plan under which it may award employees, directors and consultants incentive and non-qualified stock options,
restricted stock, stock appreciation rights and other stock based awards with terms established by the Compensation Committee of
the Board of Directors which has been appointed by the Board of Directors to administer the plans. As of September 30, 2021, there
were&#160;$<span id="xdx_905_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAvailableForGrant_iI_c20210930_z2Po1rcjcQn8" title="Remaining available for grant"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAvailableForGrant" contextRef="AsOf2021-09-30" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">407,500</ix:nonFraction></span>&#160;shares remaining available for grant under these plans.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Accounting for Stock -Based Compensation</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>&#160;</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif"><b><i>Stock
Compensation Expense</i></b></span>&#160;- For the three and nine months ended September 30, 2021, the Company recorded $<span id="xdx_905_eus-gaap--AllocatedShareBasedCompensationExpense_c20210101__20210930_z0G6pVv4JKel" title="Stock Compensation Expense"><ix:nonFraction name="us-gaap:AllocatedShareBasedCompensationExpense" contextRef="From2021-01-01to2021-09-30" format="ixt:numdotdecimal" decimals="0" unitRef="USD">86,571</ix:nonFraction></span>
and $<span id="xdx_909_eus-gaap--AllocatedShareBasedCompensationExpense_c20200101__20200930_zX45WCiDaeg3"><ix:nonFraction name="us-gaap:AllocatedShareBasedCompensationExpense" contextRef="From2020-01-012020-09-30" format="ixt:numdotdecimal" decimals="0" unitRef="USD">86,571</ix:nonFraction></span> of stock-based compensation expense, respectively. For the three and nine months ended September 30, 2020, the Company
did not issue any stock-based compensation expense.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; color: black"><b><i>Stock
Options</i></b></span><span style="color: black">. Under the Company&#8217;s</span> 2021 Stock Incentive Plan the Company has issued
stock options. <span style="color: black">A stock option grant gives the holder the right, but not the obligation to purchase a
certain number of shares at a predetermined price for a specific period of time. The Company typically issues options that vest pro
rata on a monthly basis over 36 months. Under the terms of the Plan, the contractual life of the option grants may not
exceed&#160;ten years. During the nine months ended September 30, 2021 and 2020, the Company issued options that expire&#160;ten
years&#160;from the date of grant.</span> In July 2021, the Company granted under its 2021 Stock Incentive Plan stock options to
purchase <span id="xdx_90A_ecustom--SharePurchase_c20210701__20210723__us-gaap--PlanNameAxis__custom--StockIncentivePlan2021Member__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--JosephViscontiMember_zf4DSITGQk3f" title="Share purchase"><ix:nonFraction name="tvpc:SharePurchase" contextRef="From2021-07-012021-07-23_custom_StockIncentivePlan2021Member_custom_JosephViscontiMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">272,000</ix:nonFraction></span>
shares of the Company&#8217;s common stock to Joseph Visconti, stock options to purchase <span id="xdx_906_ecustom--SharePurchase_c20210701__20210723__us-gaap--PlanNameAxis__custom--StockIncentivePlan2021Member__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--PrestonYarboroughMember_zECnvD0Gx6fl" title="Share purchase"><ix:nonFraction name="tvpc:SharePurchase" contextRef="From2021-07-012021-07-23_custom_StockIncentivePlan2021Member_custom_PrestonYarboroughMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">136,000</ix:nonFraction></span>
shares of the Company&#8217;s common stock to Preston Yarborough, stock options to purchase <span id="xdx_902_ecustom--SharePurchase_c20210701__20210723__us-gaap--PlanNameAxis__custom--StockIncentivePlan2021Member__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--DonnaBarnettMember_zfvJqrJ7LqVf" title="Share purchase"><ix:nonFraction name="tvpc:SharePurchase" contextRef="From2021-07-012021-07-23_custom_StockIncentivePlan2021Member_custom_DonnaBarnettMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">68,000</ix:nonFraction></span>
shares of the Company&#8217;s common stock to Donna Barnett, stock options to purchase <span id="xdx_90C_ecustom--SharePurchase_c20210701__20210723__us-gaap--PlanNameAxis__custom--StockIncentivePlan2021Member__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--PeteMelvinMember_zxcDZxqImExj" title="Share purchase"><ix:nonFraction name="tvpc:SharePurchase" contextRef="From2021-07-012021-07-23_custom_StockIncentivePlan2021Member_custom_PeteMelvinMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">5,500</ix:nonFraction></span>
shares of the Company&#8217;s common stock to Pete Melvin, stock options to purchase <span id="xdx_902_ecustom--SharePurchase_c20210701__20210723__us-gaap--PlanNameAxis__custom--StockIncentivePlan2021Member__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--NeilRossMember_zKD7FFrQ3ph6" title="Share purchase"><ix:nonFraction name="tvpc:SharePurchase" contextRef="From2021-07-012021-07-23_custom_StockIncentivePlan2021Member_custom_NeilRossMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">5,500</ix:nonFraction></span>
shares of the Company&#8217;s common stock to Neil Ross and stock options to purchase <span id="xdx_90E_ecustom--SharePurchase_c20210701__20210723__us-gaap--PlanNameAxis__custom--StockIncentivePlan2021Member__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--StevenAShallcrossMember_zEFY4KWeg0y1" title="Share purchase"><ix:nonFraction name="tvpc:SharePurchase" contextRef="From2021-07-012021-07-23_custom_StockIncentivePlan2021Member_custom_StevenAShallcrossMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">5,500</ix:nonFraction></span>
shares of the Company&#8217;s common stock to Steven A. Shallcross. The stock option awards to Mr. Visconti, Mr. Yarborough and Ms.
Barnett vest pro rata on a monthly basis over 36 months, subject to the officer&#8217;s continuous service to the Company on each
applicable vesting date. The stock option awards to Mr. Melvin, Mr. Ross and Mr. Shallcross vest pro rata on a monthly basis over 12
months, subject to the director&#8217;s continuous service to the Company on each applicable vesting date. The options are
exercisable for a period of ten <span id="xdx_900_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1_dtY_c20210701__20210723__us-gaap--PlanNameAxis__custom--StockIncentivePlan2021Member_zpvsCU1LMBI4" title="Options exercisable period" style="display: none"><ix:nonNumeric contextRef="From2021-07-012021-07-23_custom_StockIncentivePlan2021Member" format="ixt-sec:duryear" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1">10</ix:nonNumeric></span>
years from the date of grant and have an exercise price of $<span id="xdx_901_eus-gaap--StockOptionExercisePriceIncrease_c20210701__20210723__us-gaap--PlanNameAxis__custom--StockIncentivePlan2021Member_zPrcTlxL2KU7" title="Exercise price"><ix:nonFraction name="us-gaap:StockOptionExercisePriceIncrease" contextRef="From2021-07-012021-07-23_custom_StockIncentivePlan2021Member" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">5.80</ix:nonFraction></span>
per share.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<ix:exclude><p id="xdx_23C_zfFuzEKOI1Va" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p></ix:exclude>

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    <div id="xdx_23C_z8Xv4q9oqpR" style="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"><tr><td style="text-align: left; width: 100%"><a href="#toc">Table of Contents</a></td></tr></table></div>
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<ix:exclude><p id="xdx_23E_zlnaJpRYRT4d" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p></ix:exclude>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In August 2021, the Company granted under its
2021 Stock Incentive Plan stock options to purchase 100,000 shares of the Company&#8217;s common stock to its employees. The stock
option awards to the employees vest on the one (1) year anniversary of the grant date. The options are exercisable for a period
of ten (10) years from the date of grant and have an exercise price of $4.10 per share.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the nine months ended September 30,
2021, $<span id="xdx_902_eus-gaap--AdjustmentsToAdditionalPaidInCapitalShareBasedCompensationEmployeeStockPurchaseProgramRequisiteServicePeriodRecognition_c20210101__20210930_zrigjwbETeJe" title="Compensation expense"><ix:nonFraction name="us-gaap:AdjustmentsToAdditionalPaidInCapitalShareBasedCompensationEmployeeStockPurchaseProgramRequisiteServicePeriodRecognition" contextRef="From2021-01-01to2021-09-30" format="ixt:numdotdecimal" decimals="0" unitRef="USD">86,571</ix:nonFraction></span> was expensed, and as of September 30, 2021, $1,303,142 remains unamortized and is expected to vest over 34 months.
The intrinsic value of the <span id="xdx_901_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iI_c20210930_zjr5AnOM7qb8" title="Options outstanding"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber" contextRef="AsOf2021-09-30" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">592,500</ix:nonFraction> </span>options outstanding as of September 30, 2021 is $<span id="xdx_908_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iI_c20210930_zYcwgLrAng67" title="Intrinsic value of options outstanding"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue" contextRef="AsOf2021-09-30" format="ixt:numdotdecimal" decimals="0" unitRef="USD">0</ix:nonFraction></span>.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in; background-color: white">The
Company utilizes the Black-Scholes model to determine fair value of stock option awards on the date pf grant. The Company utilized
the following assumptions <span style="color: black">for option grants during the three and nine months ended&#160;September 30,
2021:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in; background-color: white">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in; background-color: white"></p>

<ix:nonNumeric contextRef="From2021-01-01to2021-09-30" escape="true" name="us-gaap:ScheduleOfShareBasedPaymentAwardStockOptionsValuationAssumptionsTableTextBlock"><table cellpadding="0" cellspacing="0" id="xdx_890_eus-gaap--ScheduleOfShareBasedPaymentAwardStockOptionsValuationAssumptionsTableTextBlock_zr2CT2X3Ooya" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
    <td style="text-align: center"><span id="xdx_8B9_zAS6ZTcRaB78" style="display: none">Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions</span></td><td style="font-weight: bold">&#160;</td>
    <td colspan="3" style="font-weight: bold; text-align: center">&#160;</td></tr>
<tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="3" style="font-weight: bold; text-align: center">Nine Months Ended</td></tr>
<tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="3" style="font-weight: bold; text-align: center">September 30,</td></tr>
<tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
    <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2021</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Expected term</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="font: 10pt Times New Roman, Times, Serif"><span id="xdx_902_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20210101__20210930__srt--RangeAxis__srt--MinimumMember_zE2yiAASqvZj" title="Expected term"><ix:nonNumeric contextRef="From2021-01-012021-09-30_srt_MinimumMember" format="ixt-sec:duryear" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1">4.94</ix:nonNumeric></span> - <span id="xdx_906_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20210101__20210930__srt--RangeAxis__srt--MaximumMember_zuNrpRFlIYIi" title="Expected term"><ix:nonNumeric contextRef="From2021-01-012021-09-30_srt_MaximumMember" format="ixt-sec:duryear" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1">5</ix:nonNumeric></span> years</span></td><td style="text-align: left">&#160;</td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="width: 70%; text-align: left">Expected average volatility</td><td style="width: 10%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 18%; text-align: right"><span id="xdx_904_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsWeightedAverageVolatilityRate_dp_c20210101__20210930_z3gyKbliGrwh" title="Expected average volatility"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsWeightedAverageVolatilityRate" contextRef="From2021-01-01to2021-09-30" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">49</ix:nonFraction></span></td><td style="width: 1%; text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Expected dividend yield</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span id="xdx_905_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_dp_c20210101__20210930_zcPlEGL0f5Zc" title="Expected dividend yield"><span style="-sec-ix-hidden: xdx2ixbrl0850">&#8212;</span></span></td><td style="text-align: left">&#160;</td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: left">Risk-free interest rate</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="font: 10pt Times New Roman, Times, Serif">&#160;<span id="xdx_90B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMaximum_c20210101__20210930_zjQ2A9cv477i" title="Risk-free interest rate"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMaximum" contextRef="From2021-01-01to2021-09-30" format="ixt:numdotdecimal" decimals="INF" unitRef="Pure">0.72</ix:nonFraction></span> &#8211; <span id="xdx_905_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMinimum_c20210101__20210930_zSr87QJEupJ3" title="Risk-free interest rate"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMinimum" contextRef="From2021-01-01to2021-09-30" format="ixt:numdotdecimal" decimals="INF" unitRef="Pure">0.78</ix:nonFraction></span></span></td><td style="text-align: left">%</td></tr>
</table>




<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in; background-color: white"></p>

</ix:nonNumeric><p id="xdx_8A9_zXHynB5vdcu5" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in; background-color: white">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The expected volatility of the option is determined
using historical volatilities based on historical stock price of comparable boat manufacturing companies. The Company estimated
the expected life of the options granted based upon historical weighted average of comparable boat manufacturing companies. The
risk-free interest rate is determined using the U.S. Department of the Treasury yield curve rates with a remaining term equal to
the expected life of the option. The Company has never paid a dividend, and as such the dividend yield is 0.0%</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<ix:nonNumeric contextRef="From2021-01-01to2021-09-30" escape="true" name="tvpc:ExpectedVolatilityOfOptionTableTextblock"><table cellpadding="0" cellspacing="0" id="xdx_897_ecustom--ExpectedVolatilityOfOptionTableTextblock_zkOBm49vQv8e" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom; background-color: White">
    <td style="color: black; text-align: justify"><span id="xdx_8B6_zNQAYXLUfjUj" style="display: none">Schedule of Expected Volatility Of Option</span></td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">&#160;</td><td style="color: black; text-align: right">&#160;</td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">&#160;</td><td style="color: black; text-align: right">&#160;</td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">&#160;</td><td style="color: black; text-align: right">&#160;</td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">&#160;</td><td style="color: black; text-align: right">&#160;</td><td style="color: black; text-align: left">&#160;</td></tr>
<tr style="vertical-align: bottom">
    <td colspan="2" style="text-align: center">&#160;</td><td style="color: black; padding-bottom: 1pt">&#160;</td>
    <td colspan="7" style="border-bottom: Black 1pt solid; color: black; text-align: center">Options Outstanding</td><td style="color: black; padding-bottom: 1pt">&#160;</td>
    <td colspan="3" style="color: black; text-align: center">Weighted Average</td><td style="padding-bottom: 1pt">&#160;</td>
    <td colspan="3" style="text-align: center">&#160;</td></tr>
<tr style="vertical-align: bottom">
    <td colspan="2" style="text-align: center">&#160;</td><td style="color: black">&#160;</td>
    <td colspan="3" style="color: black; text-align: center">Number of</td><td style="color: black">&#160;</td>
    <td colspan="3" style="color: black; text-align: center">Weighted Average</td><td style="color: black">&#160;</td>
    <td colspan="3" style="color: black; text-align: center">Remaining life</td><td>&#160;</td>
    <td colspan="3" style="text-align: center">&#160;</td></tr>
<tr style="vertical-align: bottom">
    <td colspan="2" style="text-align: center">&#160;</td><td style="color: black; padding-bottom: 1pt">&#160;</td>
    <td colspan="3" style="border-bottom: Black 1pt solid; color: black; text-align: center">Options</td><td style="color: black; padding-bottom: 1pt">&#160;</td>
    <td colspan="3" style="border-bottom: Black 1pt solid; color: black; text-align: center">Exercise Price</td><td style="color: black; padding-bottom: 1pt">&#160;</td>
    <td colspan="3" style="border-bottom: Black 1pt solid; color: black; text-align: center">(years)</td><td style="color: black; padding-bottom: 1pt">&#160;</td>
    <td colspan="3" style="border-bottom: Black 1pt solid; color: black; text-align: center">Fair value of option</td></tr>
<tr style="vertical-align: bottom">
    <td colspan="2" style="text-align: center">&#160;</td><td>&#160;</td>
    <td colspan="3" style="text-align: center">&#160;</td><td>&#160;</td>
    <td colspan="3" style="text-align: center">&#160;</td><td>&#160;</td>
    <td colspan="3" style="text-align: center">&#160;</td><td>&#160;</td>
    <td colspan="3" style="text-align: center">&#160;</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif; color: black">Outstanding, December 31, 2020</span></td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">&#160;</td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_c20210101__20210930_zhgjF3vT7JH8" title="Outstanding at beginning of period" style="color: black; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0858">&#8212;</span></td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">$</td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_c20210101__20210930_zX4KWzc3jEma" title="Outstanding at beginning of period" style="color: black; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0860">&#8212;</span></td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">&#160;</td><td style="color: black; text-align: right">&#8212;</td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
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<tr style="vertical-align: bottom; background-color: White">
    <td style="width: 16%; color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif; color: black">Granted</span></td><td style="width: 1%; color: black; text-align: left">&#160;</td><td style="width: 3%; color: black">&#160;</td>
    <td style="width: 1%; color: black; text-align: left">&#160;</td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_c20210101__20210930_zp6P4umQAoM4" title="Granted" style="width: 16%; color: black; text-align: right"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross" contextRef="From2021-01-01to2021-09-30" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">592,500</ix:nonFraction></td><td style="width: 1%; color: black; text-align: left">&#160;</td><td style="width: 3%; color: black">&#160;</td>
    <td style="width: 1%; color: black; text-align: left">&#160;</td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_c20210101__20210930_zlM4vYLeTsIf" title="Granted" style="width: 16%; color: black; text-align: right"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice" contextRef="From2021-01-01to2021-09-30" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">5.51</ix:nonFraction></td><td style="width: 1%; color: black; text-align: left">&#160;</td><td style="width: 3%; color: black">&#160;</td>
    <td style="width: 1%; color: black; text-align: left">&#160;</td><td style="width: 15%; color: black; text-align: right"><span id="xdx_90B_ecustom--SharebasedCompensationArrangementByGrantedSharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20210101__20210930_zHMcHCwlHF6c" title="Granted"><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" format="ixt-sec:duryear" name="tvpc:SharebasedCompensationArrangementByGrantedSharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2">10.00</ix:nonNumeric></span></td><td style="width: 1%; color: black; text-align: left">&#160;</td><td style="width: 3%; color: black">&#160;</td>
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<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif; color: black">Exercised</span></td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">&#160;</td><td id="xdx_981_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_c20210101__20210930_zbLcoZ3ZY5Mk" title="Exercised" style="color: black; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0870">&#8212;</span></td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">&#160;</td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_c20210101__20210930_zbfQOI8WGCHk" title="Exercised" style="color: black; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0872">&#8212;</span></td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">&#160;</td><td style="color: black; text-align: right">&#8212;</td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">&#160;</td><td style="color: black; text-align: right">&#8212;</td><td style="color: black; text-align: left">&#160;</td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif; color: black">Forfeited/canceled</span></td><td style="padding-bottom: 1pt; color: black; text-align: left">&#160;</td><td style="color: black; padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; color: black; text-align: left">&#160;</td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriod_c20210101__20210930_z8ve6VKAtbQh" title="Forfeited" style="border-bottom: Black 1pt solid; color: black; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0874">&#8212;</span></td><td style="padding-bottom: 1pt; color: black; text-align: left">&#160;</td><td style="color: black; padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; color: black; text-align: left">&#160;</td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriodWeightedAverageExercisePrice_c20210101__20210930_zqxIwUP6NqN6" title="Forfeited" style="border-bottom: Black 1pt solid; color: black; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0876">&#8212;</span></td><td style="padding-bottom: 1pt; color: black; text-align: left">&#160;</td><td style="color: black; padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; color: black; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; color: black; text-align: right">&#8212;</td><td style="padding-bottom: 1pt; color: black; text-align: left">&#160;</td><td style="color: black; padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; color: black; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; color: black; text-align: right">&#8212;</td><td style="padding-bottom: 1pt; color: black; text-align: left">&#160;</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="color: black; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif; color: black">Outstanding, September 30, 2021</span></td><td style="padding-bottom: 2.5pt; color: black; text-align: left">&#160;</td><td style="color: black; padding-bottom: 2.5pt">&#160;</td>
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    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

</ix:nonNumeric><p id="xdx_8A0_zapbCSciH7L3" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the nine months ended September 30,
2021, five&#160;<span style="background-color: white">customers had sales of over 10% of our total sales, combined the five customers
represented&#160;<span id="xdx_90E_eus-gaap--ConcentrationRiskPercentage1_dp_c20210101__20210930__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesMember__srt--MajorCustomersAxis__custom--FiveCustomerMember_zHhHABe2zm65" title="Concentration percentage"><ix:nonFraction name="us-gaap:ConcentrationRiskPercentage1" contextRef="From2021-01-012021-09-30_us-gaap_SalesMember_custom_FiveCustomerMember" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">67</ix:nonFraction></span>% of total sales. During the nine months end September 30, 2020, three customers had sales of over 10% of our
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<ix:exclude><p id="xdx_23B_zLjFugOnIk6k" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p></ix:exclude>

<ix:exclude><!-- Field: Page; Sequence: 18; Value: 1 -->
    <div id="xdx_23C_zb1UfKzj9Sre" style="border-bottom: Black 2pt solid; margin-top: 12pt; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" id="xdx_237_zXi5UO4ML0af" style="font: 10pt Times New Roman, Times, Serif; width: 100%"><tr><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->16<!-- Field: /Sequence --></td></tr></table></div>
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<ix:exclude><p id="xdx_236_zrcmGdhcbwal" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p></ix:exclude>

</ix:nonNumeric><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" escape="true" name="tvpc:GainFromInsuranceRecoveryTextBlock"><p id="xdx_803_ecustom--GainFromInsuranceRecoveryTextBlock_z1i2aP3AhRF5" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>14.&#160;<span id="xdx_828_zXDc1pKH0CL1">Gain from Insurance recovery</span></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; color: black">During
May 2021, the Company experienced a thermal event on the electric boat prototype rendering it unusable for further testing. Additionally,</span>&#160;<span style="color: black">the
Company experienced a building fire in one of the outer storage buildings resulting in the need for demolition. This had no impact
on production as this was an extra storage building not necessary for business operations. The Company recorded a loss on disposal
of asset from fire of $<span id="xdx_90B_eus-gaap--GainLossOnDispositionOfAssets_c20210501__20210531_pp0p0" title="Loss on disposal of asset"><ix:nonFraction name="us-gaap:GainLossOnDispositionOfAssets" contextRef="From2021-05-012021-05-31" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">249,499</ix:nonFraction></span>&#160;and gain from insurance recovery of $<span id="xdx_909_eus-gaap--GainOnBusinessInterruptionInsuranceRecovery_c20210101__20210930_pp0p0" title="Gain from insurance recovery"><ix:nonFraction name="us-gaap:GainOnBusinessInterruptionInsuranceRecovery" contextRef="From2021-01-01to2021-09-30" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">434,724</ix:nonFraction></span>, during the nine months ended September 30, 2021.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" escape="true" name="us-gaap:SubsequentEventsTextBlock"><p id="xdx_800_eus-gaap--SubsequentEventsTextBlock_z0VBxIfO0NX8" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>15.&#160;<span id="xdx_82C_zEpJgFieQPK1">Subsequent Events</span></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Management evaluated all additional events
subsequent to the balance sheet date through to November 14, 2021, the date the condensed consolidated financial statements were
available to be issued, and determined the following items:</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 1, 2021, Carrie Gunnerson was appointed
Chief Financial Officer of Twin Vee PowerCats Co. In connection with the Board of Directors appointment of Mrs. Gunnerson as Chief
Financial Officer, the Company and Mrs. Gunnerson entered into a five-year employment agreement (the Employment Agreement). The
Employment Agreement provides for an initial annual base salary of $<span id="xdx_90C_eus-gaap--SalariesAndWages_c20210929__20211001__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__srt--CounterpartyNameAxis__custom--CarrieGunnersMember_zlMg7nJE7rla" title="Base salary"><ix:nonFraction name="us-gaap:SalariesAndWages" contextRef="From2021-09-292021-10-01_us-gaap_SubsequentEventMember_custom_CarrieGunnersMember" format="ixt:numdotdecimal" decimals="0" unitRef="USD">175,000</ix:nonFraction></span> and a potential performance bonus of up to 30% of the
base salary as well as severance and other standard employment benefits. As an inducement for Mrs. Gunnerson to join the Company
and as additional compensation, the Board of Directors awarded her options to purchase <span id="xdx_903_ecustom--OptionsPurchase_c20210929__20211001__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__srt--CounterpartyNameAxis__custom--CarrieGunnersMember_zzbJRzbMl0zc" title="Options purchase"><ix:nonFraction name="tvpc:OptionsPurchase" contextRef="From2021-09-292021-10-01_us-gaap_SubsequentEventMember_custom_CarrieGunnersMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">136,000</ix:nonFraction></span> share of the Company&#8217;s common
stock an exercise price of $<span id="xdx_901_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice_iI_c20211001__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__srt--CounterpartyNameAxis__custom--CarrieGunnersMember_zzZYOWI0HSR" title="Exercise Price"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice" contextRef="AsOf2021-10-01_us-gaap_SubsequentEventMember_custom_CarrieGunnersMember" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">3.87</ix:nonFraction></span> per share (the Option Agreement). These options vest over a five-year period.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 13, 2021, the Company signed a land
purchase agreement give it the right to acquire a 14.5-acre parcel near the waterfront in Fort Pierce, Florida. The terms of the
agreement grant the Company a 60-day due diligence period that ends on December 6. The Company is then provided with 150 days to
accomplish necessary site and zoning approvals before closing on the site.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 15, 2021, Electra Power Sprots,
Inc., a wholly owned subsidiary of Twin Vee PowerCats Co., was incorporated in the state of Delaware. On October 29, 2021, the
Company filed a Certificate of Amendment and changed the company name to Forza X1, Inc.</p>

</ix:nonNumeric><p id="xdx_81F_zCOJJwgbyCdd" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

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    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -0.75in"><span style="font: 10pt Times New Roman, Times, Serif"><b><span id="a_007"></span>ITEM&#160;2.
MANAGEMENT&#8217;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS</b></span> OF OPERATIONS.</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -0.75in"><b>&#160;</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><i>You
should read the following discussion and analysis of our financial condition and results of operations together with our financial
statements and related notes included in this Quarterly Report on Form&#160;10-Q. The following discussion contains forward-looking
statements that involve risks and uncertainties. This discussion may contain forward-looking statements that involve risks and
uncertainties. See &#8220;Forward-Looking Statements.&#8221;</i></span> <i>Our actual results and the timing of certain events
could differ materially from those anticipated in these forward-looking statements as a result of certain factors, including those
discussed below and elsewhere in this Quarterly Report on Form 10-Q. This discussion should be read in conjunction with the accompanying
unaudited condensed consolidated financial statements and notes thereto. You should also review the disclosure under the heading
&#8220;Risk Factors&#8221; in this Quarterly Report on Form 10-Q for a discussion of important factors that could cause our actual
results to differ materially from those anticipated in these forward-looking statements.</i></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>&#160;</i></p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>OVERVIEW</b></p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>&#160;</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We are a designer, manufacturer and marketer
of recreational and commercial power catamaran boats. We believe our company has been an innovator in the recreational and commercial
power catamaran industry. We currently have 10 gas-powered models in production ranging in size from our 24-foot, dual engine,
center console to our newly designed 40-foot offshore 400 GFX. Our 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&#8217;s home base operations in Fort Pierce Florida is a 7.5-acre facility with several buildings totaling
over 75,000 square feet. We employ approximately 115 people, some of whom have been with our company for over twenty years.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our 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. We believe that the performance, quality, and value of our boats position us to achieve
our goal of increasing our market share and expanding the power catamaran boating market. We primarily sell our boats through a
current network of 13 independent boat dealers in 15 locations across North America and the Caribbean who resell our boats to the
end user Twin Vee customers. We continue recruiting efforts for high quality boat dealers and seek to establish new dealers and
distributors domestically and internationally to distribute our boats as we grow our production and introduce new models.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the quarter ending September 30, 2021
we shifted our focus from our IPO efforts to expanding our production. As we moved toward our goal of more than doubling production
from one boat a week during the business slowdown in the first half of 2020 due to the COVID pandemic, to four boats per week,
our operating expenses increased. More specifically, our headcount increased as we hired additional production employees and midlevel
managers resulting in higher salaries and wages. We are continuing to employ higher qualified production and administrative staff
to increase our efficiency and quality control. We have spent additional time and resources training employees and implementing
standard operating procedures to not only increase production and top line revenue but to also improve quality and efficiencies.
Another key factor in increasing production is mold development, during the quarter we moved forward with production of our 28-,
34- and 40-foot molds. We are working with third party vendors on the 28 and the 40, but we were able to use internal resources
to develop the 34-foot molds. Adding these molds not only increases our product offering, but also enable us to have more boat
in production at one time, increasing our overall through put. All the aforementioned molds will be completed in the 4<sup>th</sup>
quarter, the 34 molds were complete in early October, and we were able to take our first production boat to the Fort Lauderdale
boat show on October 28th.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We also recently launched our wholly owned
subsidiary, Fix My Boat Inc. Fix My Boat, will be the first nationally branded, mobile marine service company utilizing a franchise
model for marine mechanics across the country. We hired, Matt Gustafson, as our VP of Operations, and we are in the process of
establishing our web and ap platforms, as well as setting our standard product offering, our operating procedures, fixed pricing.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>Results of Operations</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>Comparison of the Three Months Ended September 30, 2021 and
2020</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">The following table provides certain selected financial information
for the periods presented:</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
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<tr style="vertical-align: bottom">
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<tr style="vertical-align: bottom">
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    <td colspan="3" style="border-bottom: Black 1pt solid; color: black; font-weight: bold; text-align: center">% Change</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 40%; color: black; text-align: left">Net sales</td><td style="width: 3%; color: black">&#160;</td>
    <td style="width: 1%; color: black; text-align: left">$</td><td style="width: 10%; color: black; text-align: right">4,118,246</td><td style="width: 1%; color: black; text-align: left">&#160;</td><td style="width: 3%; color: black">&#160;</td>
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<tr style="vertical-align: bottom; background-color: White">
    <td style="color: black; text-align: left">Cost of products sold</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">2,508,170</td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">1,798,288</td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">709,882</td><td style="color: black; text-align: left">&#160;</td><td>&#160;</td>
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<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="color: black; text-align: left">Gross profit</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">1,610,076</td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
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    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">910,146</td><td style="color: black; text-align: left">&#160;</td><td>&#160;</td>
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<tr style="vertical-align: bottom; background-color: White">
    <td style="color: black; text-align: left">Operating expenses</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">1,932,610</td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">947,488</td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">985,122</td><td style="color: black; text-align: left">&#160;</td><td>&#160;</td>
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<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="color: black; text-align: left">Loss from operations</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">(322,534</td><td style="color: black; text-align: left">)</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">(247,558</td><td style="color: black; text-align: left">)</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">(74,976</td><td style="color: black; text-align: left">)</td><td>&#160;</td>
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<tr style="vertical-align: bottom; background-color: White">
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    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">(60,743</td><td style="color: black; text-align: left">)</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">47,034</td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">(107,777</td><td style="color: black; text-align: left">)</td><td>&#160;</td>
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<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="color: black; text-align: left">Net loss</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">(383,277</td><td style="color: black; text-align: left">)</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">(200,524</td><td style="color: black; text-align: left">)</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">(182,703</td><td style="color: black; text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">91</td><td style="text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="color: black; text-align: left">Net loss per common share: Basic and Diluted</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">(0.06</td><td style="color: black; text-align: left">)</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">(0.05</td><td style="color: black; text-align: left">)</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">(.01</td><td style="color: black; text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">20</td><td style="text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="color: black; text-align: left">Weighted average number of common shares outstanding: Basic and diluted</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">&#160;</td><td style="color: black; text-align: right">6,282,700</td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">&#160;</td><td style="color: black; text-align: right">4,000,000</td><td style="color: black; text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
</table>


<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>&#160;</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>Net Sales and Cost Sales</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>&#160;</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our net sales increased $1,620,028, or 65%
to $4,118,246 for the three months ended September 30, 2021 from $2,498,218 for the three months ended September 30, 2020. This
increase was due to an increase in the number of boats sold during the three months ended September 30, 2021. The number of our
boats sold during the three months ended September 30,2021 increased 33% over the three months ended September 30, 2020, due to
our increased production plan that we focused on during the third quarter of 2021, enabling us to produce more boats during the
quarter. Additionally, we have increased our sale prices to help offset the increases in operating expenses described below, in
addition to increased costs of product parts and components and our increased inventory that we are maintaining to protect against
supply chain shortages.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Gross Profit</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>&#160;</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif">Gross
profits increased by $910,146, or 130% to $1,610,076 for the three months ended September 30,2021 from $699,930 for the three months
ended September 30, 2020. Gross profit as a percentage of sales, for the three months ended September 30, 2021 and 2020 was 39%
and 28% respectively</span>. In the third quarter of 2020, demand for our product was just starting to strengthen after the initial
impacts of COVID-19, additional discounts were offered to stimulate sales, which impacted our gross profit in the period ending
September 30, 2020.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Total Operating Expenses</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our total operating expenses for the three
months ended September 30, 2021 and 2020 were $1,932,610 and $947,488 respectively. Operating expenses as a percentage of sales
were 47% compared to 38% in the prior year.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Selling, general and administrative expenses
increased by approximately 104%, or $261,611 to $512,982 for the three months ended September 30, 2021, compared to $251,371 for
the three months ended September 30, 2020. The majority of that increase resulted from expenses totaling $162,482 incurred from
being publicly traded company, which we did not incur in the prior period. Directors and officers insurance, filing fees and investor
relations are some of these expenses. We also incurred increases in repairs and maintenance, insurance, EPA compliance and hiring
expenses, totaling approximately $85,000 along with numerous other smaller increases.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Salaries and wages increased by approximately
92%, or $584,069 to $1,222,062 for the three months ended September 30, 2021, compared to $637,993 for the three months ended September
30, 2020. The increase in salaries and wages of $316,000 was the result of aggressively ramping up of production, which required
increasing our production staff and adding mid-level staff. Included in salaries and wages for the three months ended September
30, 2021 was stock based compensation expense of $87,000 due to the issuance of options to employees. We have also offered bonuses
to attain our production goals and have accrued approximately $69,000 for payment of such bonuses during the three months ended
September 30, 2021. Not only were we focused on increasing production during the quarter, but we also dedicated significant resources
during the quarter to completing our 340 GFX molds, which added to overtime wages, which accounted for approximately $38,000 of
the salaries and wages during the quarter. The remaining increase of salaries and wages during the three months ended September
30, 2021 is associated with taxes and benefits.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Engineering expenses increased by $61,091 to
$61,091 for the three months ended September 30, 2021, from $0 for the three months ended September 30, 2020. Part of the use of
proceeds from our IPO, was the development of an electric boat and an electric motor.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Professional fees increased by 321%, or $80,329
to $105,384 for the three months ended September 30, 2021, compared to $25,056 for the three months ended 2020. This increase was
also due to the additional costs we incurred associated with being public. We engaged the services of an outside financial consultant,
as well as an audit firm for quarterly reporting and SEC legal counsel to fulfill our public company reporting obligations.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Depreciation expense for the three months ended
September 30, 2021 remained relatively consistent to the prior year corresponding quarter.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our other income (expenses) decreased by 229%,
or $107,777 to an expense of $60,743 for the three months ended September 30, 2021, compared to income of $47,034 for the three
months ended, 2020. In 2020 we received a tax refund of $79,658, which we did not receive in 2021, this attributes to approximately
$80,000 of the difference.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="background-color: yellow">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Net Loss</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>&#160;</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">Net loss for the three months ended September 30, 2021, and 2020
was $383,277 and $200,524 respectively. We continue to deal with the fallout of the global pandemic, as well as the impact of additional
costs of growth, but are encouraged by our continued increase in revenue. Basic and dilutive loss per share of common stock for
the three months ended September 30, 2021, and 2020 was ($0.06) and ($0.05).</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>&#160;</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>Comparison of the Nine Months Ended September 30, 2021 and
2020</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>&#160;</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&#160;The following table provides certain selected
financial information for the periods presented:</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="color: black; font-weight: bold">&#160;</td>
    <td colspan="7" style="color: black; font-weight: bold; text-align: center">Nine Months Ended</td><td>&#160;</td>
    <td colspan="3" style="text-align: center">&#160;</td><td>&#160;</td>
    <td colspan="3" style="text-align: center">&#160;</td></tr>
<tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="color: black; font-weight: bold; padding-bottom: 1pt">&#160;</td>
    <td colspan="7" style="border-bottom: Black 1pt solid; color: black; font-weight: bold; text-align: center">September 30,</td><td style="padding-bottom: 1pt">&#160;</td>
    <td colspan="3" style="text-align: center">&#160;</td><td style="padding-bottom: 1pt">&#160;</td>
    <td colspan="3" style="text-align: center">&#160;</td></tr>
<tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="color: black; font-weight: bold; padding-bottom: 1pt">&#160;</td>
    <td colspan="3" style="border-bottom: Black 1pt solid; color: black; font-weight: bold; text-align: center">2021</td><td style="color: black; font-weight: bold; padding-bottom: 1pt">&#160;</td>
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<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 40%; color: black; text-align: left">Net sales</td><td style="width: 3%; color: black">&#160;</td>
    <td style="width: 1%; color: black; text-align: left">$</td><td style="width: 10%; color: black; text-align: right">10,623,460</td><td style="width: 1%; color: black; text-align: left">&#160;</td><td style="width: 3%; color: black">&#160;</td>
    <td style="width: 1%; color: black; text-align: left">$</td><td style="width: 10%; color: black; text-align: right">6,885,679</td><td style="width: 1%; color: black; text-align: left">&#160;</td><td style="width: 3%; color: black">&#160;</td>
    <td style="width: 1%; color: black; text-align: left">$</td><td style="width: 10%; color: black; text-align: right">3,737,781</td><td style="width: 1%; color: black; text-align: left">&#160;</td><td style="width: 3%">&#160;</td>
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<tr style="vertical-align: bottom; background-color: White">
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    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">6,209,334</td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">4,321,067</td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">1,888,267</td><td style="color: black; text-align: left">&#160;</td><td>&#160;</td>
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<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="color: black; text-align: left">Gross profit</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">4,414,126</td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">2,564,612</td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">1,849,514</td><td style="color: black; text-align: left">&#160;</td><td>&#160;</td>
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<tr style="vertical-align: bottom; background-color: White">
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    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">4,698,831</td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">2,673,958</td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">2,024,873</td><td style="color: black; text-align: left">&#160;</td><td>&#160;</td>
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<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="color: black; text-align: left">Loss from operations</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">(284,705</td><td style="color: black; text-align: left">)</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">(109,346</td><td style="color: black; text-align: left">)</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">(175,359</td><td style="color: black; text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">160</td><td style="text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: White">
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    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">84,228</td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">(36,046</td><td style="color: black; text-align: left">)</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">(120,274</td><td style="color: black; text-align: left">)</td><td>&#160;</td>
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<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="color: black; text-align: left">Net loss</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">(200,477</td><td style="color: black; text-align: left">)</td><td style="color: black">&#160;</td>
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    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">(55,085</td><td style="color: black; text-align: left">)</td><td>&#160;</td>
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<tr style="vertical-align: bottom; background-color: White">
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    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">(0.04</td><td style="color: black; text-align: left">)</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">0.00</td><td style="color: black; text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(0</td><td style="text-align: left">%)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="color: black">Weighted average number of shares of common stock outstanding</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">&#160;</td><td style="color: black; text-align: right">4,769,200</td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">&#160;</td><td style="color: black; text-align: right">4,000,000</td><td style="color: black; text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
</table>


<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 20pt">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 20pt"></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 20pt">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>Net Sales and Cost Sales</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>&#160;</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif">Our
net sales </span>increased by $3,737,781, or 54% to $10,623,460 for the nine months ended September 30, 2021 from $6,885,679 for
the nine months ended September 30, 2020. We attribute the large increase in net sales to a strengthening economy during 2021 compared
to 2020.During the first half of 2020, we were impacted significantly by COVID-19, during the 3<sup>rd</sup> quarter of 2020 we
started to see a rebound in sales as the economy started to strengthen. The number of our boats sold during the nine months ended
September 30, 2021 increased 37% over the number of our boats sold during the nine months ended September 30, 2020, due not only
to the strengthening economy over 2020, but also our increased production plan that we focused on during the third quarter of 2021.
Additionally, we have increased our sale prices to help offset the increases in operating expenses described below, in addition
to increased costs of product parts and components and our increased inventory that we are maintaining to protect against supply
chain shortages. Our average revenue per unit for the nine months ended September 30, 2021 is up approximately 12% over revenue
per unit for the nine months ended September 30, 2020.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Gross Profit</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>&#160;</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Gross profit increased by $1,849,514 or 72%
to 4,414,126 for the nine months ended September 30, 2021from $2,564,612 for the nine months ended September 30, 2020. Gross profit
as a percentage of net sales for the nine months ended September 30, 2021, was 42% as compared to 37% for the same period in fiscal
2020.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Total Operating Expenses</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">Our total operating expenses increased by $2,024,873, or 76% to
$4,698,831 for the nine months ended September 30, 2021from $2,673,958 for the nine months ended September 30, 2020. Operating
expenses as a percentage of sales were 44% and 39% for the nine months ended September 30, 2021, and 2020, respectively.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Selling, general and administrative expenses
increased by 54% or $381,690 to $1,090,583 for the nine months ending September 30, 2021, from $708,893 nine months ending September
30, 2020. A significant portion of the increase, totaling $162,482, resulted from expenses incurred in connection with being a
publicly traded company, which we did not incur in the prior period. Repairs and maintenance increased by approximately $119,000
and our electric consumption also increased by approximately $22,000 for the nine months ending September 30, 2021 compared to
the prior year comparable period due in large part to our production increase.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">Salaries and wage increased by 81% or $1,432,884 to $3,197,476 for
the nine months ending September 30, 2021from $1,764,592 for the nine months ending September 30, 2020. Throughout 2021, we have
been aggressively working on increasing production, this included increasing our production staff as well as adding mid-level staff,
increased overtime for employees, resulting in approximately $967,000 of additional salaries and wage expense for the nine months
ending September 30, 2021 as compared to for the nine months ending September 30, 2020. During the nine months ended for the nine
months ending September 30, 2021, we also started accruing year-end bonuses based on employment agreements and milestones, which
accruals couple with bonuses already paid to employees in 2021 account for approximately $230,000 of the increase. Our non- cash
compensation, which resulted from option grants was approximately $87,000 for the nine months ending September 30, 2021. The non-
cash compensation and cash Board fees incurred during the nine months ending September 30, 2021 had not been incurred prior to
our IPO. The remained of the increase is due to associated taxes and benefits resulting from the increase in head count.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Engineering expenses for the nine months ended
September 2021, and 2020 were $61,091 and $0, respectively. Part of the use of proceeds from our IPO, was the development of an
electric boat and an electric motor.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Professional fees for the nine months ended
September 2021 and 2020 were $217,592 compared to $104,519, respectively. This increase is also due to the expenses incurred from
being public. We engaged the services of an outside financial consultant, as well as an audit firm for quarterly reporting and
SEC legal counsel in order to fulfill our public company reporting obligations.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Depreciation expenses for the nine months ended
September 2021 and 2020 were $132,089 and $95,954.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our other income (expenses) for the nine months
ended September 30, 2021, and 2020 were $84,228 and ($36,046) respectively. In 2021, we incurred losses on the disposal of assets
which was offset by a gain from insurance recovery, which netted to $180,000, Other income (expenses) for the nine months ended
September 30, 2021was also reduced by approximately $84,000 of interest expense.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="background-color: yellow">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Net Loss</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>&#160;</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Net loss for the nine months ended September
30, 2021, and 2020 was $200,477 and $145,392 respectively.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Liquidity and Capital Resources</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">A primary source of funds for the nine months
ended September 30, 2021 was net cash received from our initial public offering, and to a lesser extent proceeds from paycheck
protection program loan. Our primary use of cash was related to increasing inventory levels to meet the high level of demand. With
uncertainty on component availability, prolonged lead time and rising prices, we have been bringing in inventory far earlier than
previous years.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table provide selected financial
data about us as of September 30, 2021 and December 31,2020.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="color: black; font-weight: bold">&#160;</td>
    <td colspan="3" style="color: black; font-weight: bold; text-align: center">September 30,</td><td style="color: black; font-weight: bold">&#160;</td>
    <td colspan="3" style="color: black; font-weight: bold; text-align: center">December 31,</td></tr>
<tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="color: black; font-weight: bold; padding-bottom: 1pt">&#160;</td>
    <td colspan="3" style="border-bottom: Black 1pt solid; color: black; font-weight: bold; text-align: center">2021</td><td style="color: black; font-weight: bold; padding-bottom: 1pt">&#160;</td>
    <td colspan="3" style="border-bottom: Black 1pt solid; color: black; font-weight: bold; text-align: center">2020</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 56%; color: black; text-align: left">Cash and cash equivalents</td><td style="width: 8%; color: black">&#160;</td>
    <td style="width: 1%; color: black; text-align: left">$</td><td style="width: 12%; color: black; text-align: right">8,978,908</td><td style="width: 1%; color: black; text-align: left">&#160;</td><td style="width: 8%; color: black">&#160;</td>
    <td style="width: 1%; color: black; text-align: left">$</td><td style="width: 12%; color: black; text-align: right">891,816</td><td style="width: 1%; color: black; text-align: left">&#160;</td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="color: black; text-align: left">Current assets</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">15,633,851</td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">1,834,942</td><td style="color: black; text-align: left">&#160;</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="color: black; text-align: left">Current liabilities</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">2,897,452</td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
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<tr style="vertical-align: bottom; background-color: White">
    <td style="color: black; text-align: left">Working capital</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">12,765,278</td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
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</table>


<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of September 30, 2021, we had sufficient
cash and cash equivalents to meet ongoing expenses for at least twelve months from the date of the filing of this Quarterly Report
on Form 10-Q. As of September 30, 2021, we had $8,978,908 of cash<span style="color: black"> and cash equivalents</span> total
current assets were $15,633,851, total assets were $22,628,984, and our total liabilities were $5,313,134. Liabilities were comprised
of long-term liabilities of $2,444,561, and current liabilities of $2,897,452, which included accounts payable and accrued liabilities
of $2,151,071, warranty reserve of $75,000, contract liability of $162,637, due to affiliated companies of $115,043 and current
portion of operating lease right of use liability of $364,822. As of December 31, 2020, we had $891,816 of cash, total current
assets were $1,834,942, total assets were $4,504,566 and our total current liabilities of $1,440,067 and total liabilities of $2,955,726.
which included long-term operating lease liabilities for the lease of our facility.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our stockholders&#8217; equity increased from
$1,548,840 as of December 31, 2020, to $17,315,850 as of September 30, 2021, as a result of completing our initial public offering.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Accumulated deficit was $1,178,145 as of September
30, 2021 compared to accumulated deficit of $1,006,547 as of December 31, 2020.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our working capital increased by $12,370,403
from $394,875 as of December 31,2020, as compared to $12,765,278 on September 30, 2021, due primarily to the net proceeds received
from our IPO.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We believe cash, cash equivalents, and cash
from operations will provide sufficient cash to finance operations for at least twelve months from the date of the filing of this
Quarterly Report on Form 10-Q.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0">&#160;<span style="text-decoration: underline">Cash Flow</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
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<tr style="vertical-align: bottom">
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<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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    <td style="width: 1%; color: black; text-align: left">$</td><td style="width: 5%; color: black; text-align: right">(290,529</td><td style="width: 1%; color: black; text-align: left">)</td><td style="width: 2%; color: black">&#160;</td>
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    <td style="width: 1%; color: black; text-align: left">$</td><td style="width: 5%; color: black; text-align: right">(152,259</td><td style="width: 1%; color: black; text-align: left">)</td><td style="width: 2%; color: black">&#160;</td>
    <td style="width: 1%; color: black; text-align: left">$</td><td style="width: 5%; color: black; text-align: right">792,512</td><td style="width: 1%; color: black; text-align: left">&#160;</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 5%; text-align: right">(521</td><td style="width: 1%; text-align: left">%)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
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    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">(7,323,287</td><td style="color: black; text-align: left">)</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">(177,045</td><td style="color: black; text-align: left">)</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">(7,146,242</td><td style="color: black; text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">4,036</td><td style="text-align: left">%</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">(200,452</td><td style="color: black; text-align: left">)</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">(675,740</td><td style="color: black; text-align: left">)</td><td style="color: black">&#160;</td>
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    <td style="text-align: left">&#160;</td><td style="text-align: right">(70</td><td style="text-align: left">%)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">518,462</td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">15,635,352</td><td style="color: black; text-align: left">&#160;</td><td>&#160;</td>
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    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">236,441</td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">1,019,824</td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">(783,383</td><td style="color: black; text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(77</td><td style="text-align: left">%)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="color: black; text-align: left">Net Change in Cash</td><td style="color: black">&#160;</td>
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    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">50,888</td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">8,036,204</td><td style="color: black; text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">15,792</td><td style="text-align: left">%</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">676,242</td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">191,825</td><td style="color: black; text-align: left">&#160;</td><td style="color: black">&#160;</td>
    <td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">484,417</td><td style="color: black; text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">253</td><td style="text-align: left">%</td></tr>
</table>


<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Cash Flow from Operating Activities</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>&#160;</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif">For
the nine months ended September 30, 2021</span>, net cash flows used in operating activities was approximately $743,000 compared
to $291,000 used during the nine months ended September 30, 2020. We have increased inventory level by $1,515,118, due to supply
chain delays. that continue to impact lead time and parts availability. Prepaid expenses and other current assets increased by
$685,000, primarily due to Directors and Officers Insurance being paid upfront. Our net loss from operation was approximately $172,000,
which was decreased by non-cash expenses of approximately $476,000, primarily due to depreciation and stock-based compensation.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Cash Flow from Investing Activities</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>&#160;</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the nine months ended September 30,
2021, we used approximately $7,323,000 for investment activities, compared to $177,045 used during the nine months ended September
30,2020. Approximately, $6,101,461 was invested in marketable securities and $1,222,000 was used to purchase property and equipment.
The majority of the money for property and equipment was invested into molds for new model boats, approximately $393,000, building
roof repairs and ventilation system improvements of approximately $359,000, new production equipment of approximately $152,000,
and electric boat tooling and prototype expenses of approximately 164,000.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Cash Flows from Financing Activities</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>&#160;</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">For the nine months ended September 30, 2021,
net cash provided by financing activities was approximately $16,154,000, compared to $518,462 during the nine months ended September
30, 2020, primarily consisting of net proceeds from our IPO of $15,852,000, and to a lesser extent from the proceeds of a PPP loan
of approximately $608,000 and $33,000 from repayments of advances from related parties of $33,000, offset by repayment to related
parties of approximately $340,000.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0"><b>CRITICAL ACCOUNTING POLICIES AND SIGNIFICANT JUDGMENTS AND
ESTIMATES</b></p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0"><b>&#160;</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We believe that several accounting policies
are important to understanding our historical and future performance. We refer to these policies as &#8220;critical&#8221; because
these specific areas generally require us to make judgments and estimates about matters that are uncertain at the time we make
the estimate, and different estimates&#8212;which also would have been reasonable&#8212;could have been used, which would have
resulted in different financial results.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our management&#8217;s discussion and analysis
of financial condition and results of operations is based on our condensed consolidated financial statements, which have been prepared
in accordance with U.S. GAAP. The preparation of our condensed consolidated financial statements requires us to make estimates
and judgments that affect the reported amounts of assets, liabilities, revenue and expenses and related disclosure of contingent
assets and liabilities. On an ongoing basis, we evaluate our estimates based on historical experience and make various assumptions,
which management believes to be reasonable under the circumstances, which form the basis for judgments about the carrying values
of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under
different assumptions or conditions.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The notes to our condensed consolidated financial
statements contained herein contain a summary of our significant accounting policies. We consider the following accounting policies
critical to the understanding of the results of our operations:</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><i>Revenue Recognition</i></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accounts for revenue in accordance
with Financial Accounting Standards Board (&#8220;FASB&#8221;) Accounting Standards Codification (&#8220;ASC&#8221;) Topic 606
which was adopted at the beginning of fiscal year 2018 using the modified retrospective method. The Company did not recognize any
cumulative-effect adjustment to retained earnings upon adoption as the effect was immaterial.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Payment received for the future sale of a boat
to a customer is recognized as a customer deposit, which is included in contract liabilities on the balance sheet. Customer deposits
are recognized as revenue when control over promised goods is transferred to the customer.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Use of Estimates</i></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The preparation of financial statements in
conformity with accounting principles generally accepted in the United States &#8220;U.S. GAAP&#8221; requires management to make
estimates and assumptions that affect the amounts reported in the financial statements. Actual results could differ from those
estimates. Included in those estimates are assumptions about allowances for inventory obsolescence, useful life of fixed assets,
warranty reserves and bad-debt reserves.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><i>Inventories</i></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Inventories are stated at the lower of cost
or net realizable value using the first-in, first-out (FIFO) method. Net realizable value is defined as sales price less cost of
completion, disposable and transportation and a normal profit margin. Production costs, consisting of labor and overhead, are applied
to ending finished goods inventories at a rate based on estimated production capacity. Excess production costs are charged to cost
of products sold. Provisions have been made to reduce excess or obsolete inventories to their net realizable value.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><i>Impairment of Long-Lived Assets</i></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Management assesses the recoverability of its
long-lived assets when indicators of impairment are present. If such indicators are present, recoverability of these assets is
determined by comparing the undiscounted net cash flows estimated to result from those assets over the remaining life to the assets&#8217;
net carrying amounts. If the estimated undiscounted net cash flows are less than the net carrying amount, the assets would be adjusted
to their fair value, based on appraisal or the present value of the undiscounted net cash flows.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><i>Product Warranty Costs</i></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As required by FASB ASC Topic 460,&#160;<i>Guarantees</i>,
the Company is including the following disclosure applicable to its product warranties.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accrues for warranty costs based
on the expected material and labor costs to provide warranty replacement products. The methodology used in determining the liability
for warranty cost is based upon historical information and experience. The Company&#8217;s warranty reserve is calculated as the
gross sales multiplied by the historical warranty expense return rate.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><i>Leases</i></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company adopted FASB Accounting Standards
Update (&#8220;ASU&#8221;) No. 2016-02,&#160;<i>Leases&#160;</i>(&#8220;Topic 842&#8221;), using the modified retrospective adoption
method with an effective date of January 1, 2019. This standard requires all lessees to recognize a right-of-use asset and a lease
liability, initially measured at the present value of the lease payments.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Under Topic 842, the Company applied a dual
approach to all leases whereby the Company is a lessee and classifies leases as either finance or operating leases based on the
principle of whether or not the lease is effectively a financed purchase by the Company. Lease classification is evaluated at the
inception of the lease agreement.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><i>Paycheck Protection Program</i></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">U.S. GAAP does not contain authoritative accounting
standards for forgivable loans provided by governmental entities to a for-profit entity. Absent authoritative accounting standards,
interpretative guidance issued and commonly applied by financial statement preparers allows for the selection of accounting policies
amongst acceptable alternatives. Based on the facts and circumstances, the Company determined it most appropriate to account for
the Paycheck Protection Program (&#8220;PPP&#8221;) loan proceeds as an in-substance government grant by analogy to International
Accounting Standards 20 &#8220;(IAS 20)&#8221;,&#160;<i>Accounting for Government Grants and Disclosure of Government Assistance</i>.
Under the provisions of IAS 20, &#8220;a forgivable loan from government is treated as a government grant when there is reasonable
assurance that the entity will meet the terms for forgiveness of the loan.&#8221; IAS 20 does not define &#8220;reasonable assurance&#8221;;
however, based on certain interpretations, it is analogous to &#8220;probable&#8221; as defined in FASB ASC Subtopic 450-20-20
under U.S. GAAP, which is the definition the Company has applied to its expectations of PPP loan forgiveness. Under IAS 20, government
grants are recognized in earnings on a systematic basis over the periods in which the Company recognizes costs for which the grant
is intended to compensate (i.e., qualified expenses). Further, IAS 20 permits for the recognition in earnings either (1) separately
under a general heading such as other income, or (2) as a reduction of the related expenses. The Company has elected to recognize
government grant income separately within other income to present a clearer distinction in its financial statements between its
operating income and the amount of net income resulting from the PPP loan and forgiveness.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Income Taxes</i></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In accordance with U.S. GAAP, the Company follows
the guidance in FASB ASC Topic 740,&#160;<i>Accounting for Uncertainty in Income Taxes</i>. At December 31, 2020, the Company does
not believe it has any uncertain tax positions that would require either recognition or disclosure in the accompanying financial
statements.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Income or loss and credits from the Company
are passed through to the shareholders and reported on the shareholders&#8217; income tax returns. As such, there is no provision
for income taxes. If applicable, the Company would recognize interest and penalties associated with tax matters as part of operating
expenses and include accrued interest and penalties with the related tax liability in its financial statements.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0"><b>OFF-BALANCE SHEET ARRANGEMENTS</b></p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0"><b>&#160;</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We did not have during the periods presented,
and we do not currently have, any off-balance sheet arrangements, as defined under Securities and Exchange Commission rules.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"><b><span id="a_008"></span>ITEM&#160;3. QUANTITATIVE
AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.</b></p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"><b>&#160;</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We are a smaller reporting company as defined
by Rule&#160;12b-2 of the Exchange Act and are not required to provide the information required under this item.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0"><b><span id="a_009"></span>ITEM&#160;4. CONTROLS AND PROCEDURES.</b></p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0"><b>&#160;</b></p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0"><b>Evaluation of Disclosure Controls and Procedures</b></p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0"><b>&#160;</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">Our
management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our
disclosure controls and procedures as of September 30, 2021. The term &#8220;disclosure controls and procedures,&#8221; as defined
in Rules&#160;13a-15(e)&#160;and 15d-15(e)&#160;under the Exchange Act, means controls and other procedures of a company that are
designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange
Act is recorded, processed, summarized and reported, within the time periods specified in the SEC&#8217;s rules&#160;and forms.
Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required
to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to
the company&#8217;s management, including its principal executive and principal financial officers, or persons performing similar
functions, as appropriate to allow timely decisions regarding required disclosure. We have adopted and maintain disclosure controls
and procedures (as defined Rules&#160;13a-15(e)&#160;and 15d-15(e)&#160;under the Exchange Act) that are designed to provide reasonable
assurance that information required to be disclosed in the reports filed under the Exchange Act, such as this Quarterly Report
on Form&#160;10-Q, is collected, recorded, processed, summarized, and reported within the time periods specified in the rules&#160;of
the SEC. Our disclosure controls and procedures are also designed to ensure that such information is accumulated and communicated
to management to allow timely decisions regarding required disclosure. Management recognizes that any controls and procedures,
no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives and management necessarily
applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Based on the evaluation of
our disclosure controls and procedures as of September 30, 2021, our Chief Executive Officer and Chief Financial Officer concluded
that, as of such a date, our disclosure controls and procedures were not effective at the reasonable assurance level, d<span style="color: black; background-color: white">ue
to the material weaknesses in our internal control over financial reporting, as further described below</span></span>.<span style="color: black">
</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Previously Reported Material Weakness </b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>&#160;</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As disclosed in Part II&#8212;Item 1A. &#8220;Risk
Factors&#8221; contained elsewhere in this Quarterly report on Form 10-Q, we previously identified material weaknesses in our internal
control over financial reporting relating to (i) lack of segregation of duties and (ii) the level of review of our internally prepared
financial statements.&#160;In addition, our auditor identified during its testing of our December 20 20 balances an error in inventory
in the approximate amount of $227,000 for the use of the wrong unit of measure for an inventory item which resulted in a misstatement
within inventory and cost of sales. Other errors were also discovered during testing of our December 31, 2019 balances that included
differences between the ledger and supporting schedules relating to inventory, property and equipment, accounts payable, accrued
expenses, additional paid-in capital, revenue, cost of sales, gross margin and general and administrative expenses. As such, the
auditor provided us with a letter stating that our internal controls with respect to the financial close and financial reporting
do not include a sufficient process to reconcile the accounts to supporting records and an independent review process to ensure
U.S. GAAP financial statements are free from error. W<span style="background-color: white">e have determined that these control
deficiencies constituted material weaknesses in our internal control over financial reporting. A material weakness is a deficiency
or combination of deficiencies in our internal control over financial reporting such that there is a reasonable possibility that
a material misstatement of our condensed consolidated financial statements would not be prevented or detected on a timely basis.
These deficiencies could result in additional misstatements to our condensed consolidated financial statements that would be material
and would not be prevented or detected on a timely basis.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><b><i>Remediation Plan</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><b><i>&#160;</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">Management has developed
and is executing a remediation plan to address the previously disclosed material weaknesses. We are actively engaged in the remediation
of each of the outstanding material weaknesses, including the retention of a full-time controller and utilizing the assistance
of outside advisors where appropriate.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><i>&#160;</i></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">To remediate the existing
material weaknesses, additional time is required to demonstrate the effectiveness of the remediation efforts. The material weaknesses
cannot be considered remediated until the applicable remedial controls operate for a sufficient period of time and management has
concluded, through testing, that these controls are operating effectively. As of September 30, 2021, the material weakness has
not been remediated.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><b>Changes in Internal Control over Financial
Reporting</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><b>&#160;</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the three months ended September 30,
2021, there were no changes in our internal control over financial reporting (as defined in Rules 13a 15(f) and 15d 15(f) of the
Exchange Act) that occurred that have materially affected, or are reasonably likely to materially affect, our internal control
over financial reporting.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>PART&#160;II&#8212;OTHER INFORMATION</b></p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>&#160;</b></p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0"><b><span id="a_010"></span>ITEM&#160;1. LEGAL PROCEEDINGS.</b></p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0"><b>&#160;</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">From time to time, we may become involved in
legal proceedings or be subject to claims arising in the ordinary course of our business. We are not presently a party to any legal
proceedings that, if determined adversely to us, would individually or taken together have a material adverse effect on our business,
operating results, financial condition or cash flows. Regardless of the outcome, litigation can have an adverse impact on us because
of defense and settlement costs, diversion of management resources and other factors.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0"><b><span id="a_011"></span>ITEM&#160;1A. RISK FACTORS.</b></p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0"><b>&#160;</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Investing in our securities involves a high
degree of risk. You should consider carefully the following risks, together with all the other information in this Quarterly Report
on Form 10-Q, including our condensed consolidated financial statements and notes thereto. If any of the following risks actually
materializes, our operating results, financial condition and liquidity could be materially adversely affected.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>RISKS RELATED TO OUR BUSINESS</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>There is limited public information on
our operating history.</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our limited public operating history makes
evaluating our business and prospects difficult. Although we were formed in 2003, we did not provide public reports on the results
of operations until our 2020 fiscal year. We only have two years of audited financial statements. Your investment decision will
not be made with the same data as would be available as if we had a longer history of public reporting.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Our ability to meet our manufacturing
workforce needs is crucial to our results of operations and future sales and profitability.</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We rely on the existence of an available hourly
workforce to manufacture our products. We cannot assure you that we will be able to attract and retain qualified employees to meet
current or future manufacturing needs at a reasonable cost, or at all. For instance, the demand for skilled employees has increased
recently with the low unemployment rates in Florida where we have manufacturing facilities. Also, although none of our employees
are currently covered by collective bargaining agreements, we cannot assure you that our employees will not elect to be represented
by labor unions in the future. Additionally, competition for qualified employees could require us to pay higher wages to attract
a sufficient number of employees. Significant increases in manufacturing workforce costs could materially adversely affect our
business, financial condition or results of operations.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>We have a large, fixed cost base that
will affect our profitability if our sales decrease.</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The fixed cost levels of operating a powerboat
manufacturer can put pressure on profit margins when sales and production decline. Our profitability depends, in part, on our ability
to spread fixed costs over a sufficiently large number of products sold and shipped, and if we make a decision to reduce our rate
of production, gross or net margins could be negatively affected. Consequently, decreased demand or the need to reduce production
can lower our ability to absorb fixed costs and materially impact our financial condition or results of operations.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Interest rates and energy prices affect
product sales.</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our products are often financed by our dealers
and retail powerboat consumers, we envision this continuing as we expand our operations and grow our network of distributors. This
may not occur if interest rates meaningfully rise because higher rates increase the borrowing costs and, accordingly, the cost
of doing business for dealers and the cost of powerboat purchases for consumers. Higher energy costs result in increases in operating
expenses at our manufacturing facility and in the expense of shipping products to our dealers. In addition, increases in energy
costs may adversely affect the pricing and availability of petroleum- based raw materials, such as resins and foams that are used
in our products. Also, higher fuel prices may have an adverse effect on demand for our boats, as they increase the cost of ownership
and operation and the pries at which we sell the boats. Therefore, higher interest rates and fuel costs can adversely affect consumers&#8217;
decisions relating to recreational powerboating purchases.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><b><i>Our business
may be materially affected by the COVID-19 Outbreak.</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">The outbreak of the
novel coronavirus (COVID-19) has and may continue to cause disruptions to our business and operational plans. These disruptions
may include disruptions resulting from (i) shortages of employees, (ii) unavailability of contractors and subcontractors, (iii)
interruption of, or price fluctuations in, supplies from third parties upon which we rely, (iv) restrictions that governments impose
to address the COVID-19 outbreak, and (v) restrictions that we and our contractors and subcontractors impose to ensure the safety
of employees and others. To date, as a result of the COVID-19 pandemic, we have experienced shortages in obtaining the 150 horsepower
motors that are supplied to us by Suzuki Motor of America, Inc., which historically have been used in approximately 15% of our
boats. In addition, we have also been subject to increased prices for materials resulting generally from supply chain shortages.
We also have increased our inventory of parts and components, spending additional funds before we have purchase orders. Continued
delays in our supply chain could adversely impact our production and, in turn, our revenues. Further, it is presently not possible
to predict the extent or durations of these disruptions. These disruptions may have a material adverse effect on our business,
financial condition and results of operations. Such adverse effect could be rapid and unexpected. These disruptions may severely
affect our ability to carry out our business plans for 2021 and 2022.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><b><i>There are no
assurances that our Small Business Administration Paycheck Protection Program loan will be forgivable in whole or in part.</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><b><i>&#160;</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On March 19, 2021, we received a loan in the
amount of $608,224 under the Small Business Administration Paycheck Protection Program round 2 provided by SunTrust/Trust Bank.
The loan bears interest at 1.0% per year and matures 5 years from the loan origination date. No payments are due until the earlier
of the application for forgiveness or ten months from the end of the twenty-four week covered period. Section 1106 of the CARES
Act as amended by Section 3(c) of the Flexibility Act, allows for all or a portion of the loan to be forgiven, based on certain
criteria being met including that the use of the loan proceeds for qualifying expenses, which include payroll costs, rent, and
utility costs, having no more than 300 employees and us providing sufficient support that we have experienced a 25% reduction in
gross receipts between comparable quarters in 2019 and 2020. Although we believe that we meet the criteria for full loan forgiveness,
the determination of such forgiveness is made by the Small Business Administration, after review of a loan forgiveness application,
which has been completed and submitted. Without formal written approval from the Small Business Administration, we cannot provide
certainty that we will obtain forgiveness of the loan in whole or in part.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif"><b><i>Our
annual and quarterly financial results are subject to significant fluctuations depending on various factors, many of which are
beyond our control</i></b></span><i>.</i></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our sales and operating results can vary significantly
from quarter to quarter and year to year depending on various factors, many of which are beyond our control. These factors include,
but are not limited to:</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 3%; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; width: 3%; padding-right: 0.8pt"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; width: 94%; padding-right: 0.8pt; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">Seasonal
consumer demand for our products;</span></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">Discretionary
spending habits;</span></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">Changes
in pricing in, or the availability of supply in, the powerboat market;</span></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">Failure
to maintain a premium brand image;</span></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">Disruption
in the operation of our manufacturing facilities;</span></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">Variations
in the timing and volume of our sales;</span></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">The
timing of our expenditures in anticipation of future sales;</span></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">Sales
promotions by us and our competitors;</span></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">Changes
in competitive and economic conditions generally;</span></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">Consumer
preferences and competition for consumers&#8217; leisure time;</span></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">Impact
of unfavorable weather conditions;</span></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">Changes
in the cost or availability of our labor; and</span></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">Increased
fuel prices.</span></td></tr>
</table>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 16.2pt">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 16.2pt"></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 16.2pt">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Due to these and other factors, our results
of operations may decline quickly and significantly in response to changes in order patterns or rapid decreases in demand for our
products. We anticipate that fluctuations in operating results will continue in the future.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Unfavorable weather conditions may have
a material adverse effect on our business, financial condition, and results of operations, especially during the peak boating season.</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Adverse weather conditions in any year in any
particular geographic region may adversely affect sales in that region, especially during the peak boating season. Sales of our
products are generally stronger just before and during spring and summer, which represent the peak boating months, and favorable
weather during these months generally has a positive effect on consumer demand. Conversely, unseasonably cool weather, excessive
rainfall, reduced rainfall levels, or drought conditions during these periods may close area boating locations or render boating
dangerous or inconvenient, thereby generally reducing consumer demand for our products. Our annual results would be materially
and adversely affected if our net sales were to fall below expected seasonal levels during these periods. We may also experience
more pronounced seasonal fluctuation in net sales in the future as we expand our businesses. There can be no assurance that weather
conditions will not have a material effect on the sales of any of our products.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif"><b><i>A
natural disaster, the effects of climate change, or other disruptions at our manufacturing facility could adversely affect our
business, financial condition, and results of operations</i></b></span><i>.</i></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We rely on the continuous operation of our
only manufacturing facility in Stuart, Florida for the production of our products. Any natural disaster or other serious disruption
to our facility due to fire, flood, earthquake, or any other unforeseen circumstance would adversely affect our business, financial
condition, and results of operations. Changes in climate could adversely affect our operations by limiting or increasing the costs
associated with equipment or fuel supplies. In addition, adverse weather conditions, such as increased frequency and/or severity
of storms, or floods could impair our ability to operate by damaging our facilities and equipment or restricting product delivery
to customers. The occurrence of any disruption at our manufacturing facility, even for a short period of time, may have an adverse
effect on our productivity and profitability, during and after the period of the disruption. These disruptions may also cause personal
injury and loss of life, severe damage to or destruction of property and equipment, and environmental damage. Although we maintain
property, casualty, and business interruption insurance of the types and in the amounts that we believe are customary for the industry,
we are not fully insured against all potential natural disasters or other disruptions to our manufacturing facility.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif"><b><i>If
we fail to manage our manufacturing levels while still addressing the seasonal retail pattern for our products, our business and
margins may suffer</i></b></span><i>.</i></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The seasonality of retail demand for our products,
together with our goal of balancing production throughout the year, requires us to manage our manufacturing and allocate our products
to our dealer network to address anticipated retail demand. Our dealers must manage seasonal changes in consumer demand and inventory.
If our dealers reduce their inventories in response to weakness in retail demand, we could be required to reduce our production,
resulting in lower rates of absorption of fixed costs in our manufacturing and, therefore, lower margins. As a result, we must
balance the economies of level production with the seasonal retail sales pattern experienced by our dealers. Failure to adjust
manufacturing levels adequately may have a material adverse effect on our financial condition and results of operations.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif"><b><i>We
depend on our network of independent dealers, face increasing competition for dealers, and have little control over their activities</i></b></span><i>.</i></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">A significant portion of our sales are derived
from our network of independent dealers. We typically manufacture our boats based upon indications of interest received from dealers
who are not contractually obligated to purchase any boats. While our dealers typically have purchased all of the boats for which
they have provided us with indications of interest, it is possible that a dealer could choose not to purchase boats for which it
has provided an indication of interest (e.g., if it were to have reached the credit limit on its floor plan), and as a result we
once experienced, and in the future could experience, excess inventory and costs. For fiscal 2020, our top five dealers accounted
for 33% of our total boats sold. The loss of a significant dealer could have a material adverse effect on our financial condition
and results of operations. The number of dealers supporting our products and the quality of their marketing and servicing efforts
are essential to our ability to generate sales. Competition for dealers among other boat manufacturers continues to increase based
on the quality, price, value, and availability of the manufacturers&#8217; products, the manufacturers&#8217; attention to customer
service, and the marketing support that the manufacturer provides to the dealers. We face intense competition from other boat manufacturers
in attracting and retaining dealers, affecting our ability to attract or retain relationships with qualified and successful dealers.
Although our management believes that the quality of our products in the performance sport boat industry should permit us to maintain
our relationships with our dealers and our market share position, there can be no assurance that we will be able to maintain or
improve our relationships with our dealers or our market share position. In addition, independent dealers in the boating industry
have experienced significant consolidation in recent years, which could result in the loss of one or more of our dealers in the
future if the surviving entity in any such consolidation purchases similar products from a competitor. A substantial deterioration
in the number of dealers or quality of our network of dealers would have a material adverse effect on our business, financial condition,
and results of operations.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Our success depends, in part, upon the
financial health of our dealers and their continued access to financing.</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Because we sell nearly all of our products
through dealers, their financial health is critical to our success. Our business, financial condition, and results of operations
may be adversely affected if the financial health of the dealers that sell our products suffers. Their financial health may suffer
for a variety of reasons, including a downturn in general economic conditions, rising interest rates, higher rents, increased labor
costs and taxes, compliance with regulations, and personal financial issues.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In addition, our dealers require adequate liquidity
to finance their operations, including purchases of our products. Dealers are subject to numerous risks and uncertainties that
could unfavorably affect their liquidity positions, including, among other things, continued access to adequate financing sources
on a timely basis on reasonable terms. These sources of financing are vital to our ability to sell products through our distribution
network. Access to financing generally facilitates our dealers&#8217; ability to purchase boats from us, and their financed purchases
reduce our working capital requirements. If financing were not available to our dealers, our sales and our working capital levels
would be adversely affected.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif"><b><i>We
may be required to repurchase inventory of certain dealers</i></b></span><i>.</i></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Many of our dealers have floor plan financing
arrangements with third-party finance companies that enable the dealers to purchase our products. In connection with these agreements,
we may have an obligation to repurchase our products from a finance company under certain circumstances, and we may not have any
control over the timing or amount of any repurchase obligation nor have access to capital on terms acceptable to us to satisfy
any repurchase obligation. This obligation is triggered if a dealer defaults on its debt obligations to a finance company, the
finance company repossesses the boat, and the boat is returned to us. Our obligation to repurchase a repossessed boat for the unpaid
balance of our original invoice price for the boat is subject to reduction or limitation based on the age and condition of the
boat at the time of repurchase, and in certain cases by an aggregate cap on repurchase obligations associated with a particular
floor plan financing program. To date, we have not been obligated to repurchase any boats under our dealers&#8217; floor plan financing
arrangements, and we are not aware of any applicable laws regulating dealer relations which govern our relations with the dealers
or would require us to repurchase any boats. However, there is no assurance that a dealer will not default on the terms of a credit
line in the future. In addition, applicable laws regulating dealer relations may also require us to repurchase our products from
our dealers under certain circumstances, and we may not have any control over the timing or amount of any repurchase obligation
nor have access to capital on terms acceptable to us to satisfy any repurchase obligation. If we were obligated to repurchase a
significant number of units under any repurchase agreement or under applicable dealer laws, our business, operating results and
financial condition could be adversely affected.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif"><b><i>We
rely on third-party suppliers in the manufacturing of our boats</i></b></span><i>.</i></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We depend on third-party suppliers to provide
components and raw materials essential to the construction of our boats. While we believe that our relationships with our current
suppliers are sufficient to provide the materials necessary to meet present production demand, we cannot assure you that these
relationships will continue or that the quantity or quality of materials available from these suppliers will be sufficient to meet
our future needs, irrespective of whether we successfully implement our growth strategy. We expect that our need for raw materials
and supplies will increase. Our suppliers must be prepared to ramp up operations and, in many cases, hire additional workers and/or
expand capacity in order to fulfill the orders placed by us and other customers. Operational and financial difficulties that our
suppliers may face in the future could adversely affect their ability to supply us with the parts and components we need, which
could significantly disrupt our operations.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif"><b><i>Termination
or interruption of informal supply arrangements could have a material adverse effect on our business or results of operations</i></b></span><i>.</i></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Although we have long term relationships with
many of our suppliers, we do not have any formal agreements with any suppliers for the purchase of parts needed and our purchases
are made on a purchase order basis. We have no binding commitment from our suppliers to supply any specified quantity of materials
needed within any specified time period. In the event that our suppliers receive a large number of orders from other customers,
there is a possibility that they will not be able to support our needs. If any of our current suppliers were to be unable to provide
needed products to us, there can be no assurance that alternate supply arrangements will be made on satisfactory terms. If we need
to enter into supply arrangements on unsatisfactory terms, or if there are any delays to our supply arrangements, it could adversely
affect our business and operating results.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>We rely on one manufacturer to supply
our engines and do not have any long terms commitments from such manufacturer.</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We currently rely on one manufacturer, Suzuki
Motor of America, Inc. for the supply of our board engines. We do not have any long-term commitments from Suzuki to supply any
specified number of engines and therefore cannot guarantee that there will be adequate supply of our engines. To date, as a result
of the COVID-19 pandemic, we have experienced shortages in obtaining the 150-horsepower motors that are supplied to us by Suzuki
Motor of America, Inc., which historically have been used in approximately 15% of our boats. Although we believe we have sufficient
supply of our other engines, due to supply chain shortages, we may not be able to obtain engines in the future from other manufacturers
if Suzuki Motor of America, Inc. should be unable to satisfy our needs. Suzuki Motor of America, Inc., and other manufacturers
may not be able to provide us with engines in a timely manner due to supply chain shortages and even if other manufacturers are
able to fulfill our engine needs they may not be able to do so at the same price as we currently pay for the engines we install
in our boats, which could result in lower profit margins or us increasing the price of our boats in order to maintain profit margins
which could adversely impact demand for our boats.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Product liability, warranty, personal
injury, property damage and recall claims may materially affect our financial condition and damage our reputation.</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We are engaged in a business that exposes us
to claims for product liability and warranty claims in the event our products actually or allegedly fail to perform as expected
or the use of our products results, or is alleged to result, in property damage, personal injury or death. Although we maintain
product and general liability insurance of the types and in the amounts that we believe are customary for the industry, we are
not fully insured against all such potential claims. Our products involve kinetic energy, produce physical motion and are to be
used on the water, factors which increase the likelihood of injury or death. Our products contain Lithium-ion batteries, which
have been known to catch fire or vent smoke and flame, and chemicals which are known to be, or could later be proved to be, toxic
carcinogenic. Any judgment or settlement for personal injury or wrongful death claims could be more than our assets and, even if
not justified, could prove expensive to contest.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We may experience legal claims in excess of
our insurance coverage or claims that are not covered by insurance, either of which could adversely affect our business, financial
condition and results of operations. Adverse determination of material product liability and warranty claims made against us could
have a material adverse effect on our financial condition and harm our reputation. In addition, if any of our products or components
in our products are, or are alleged to be, defective, we may be required to participate in a recall of that product or component
if the defect or alleged defect relates to safety. Any such recall and other claims could be costly to us and require substantial
management attention.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif"><b><i>Significant
product repair and/or replacement due to product warranty claims or product recalls could have a material adverse impact on our
results of operations</i></b></span><i>.</i></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We provide a hull warranty for structural damage
of up to ten years. In addition, we provide a three-year limited fiberglass small parts warranty on all on some small fiberglass
parts and components such as consoles Gelcoat is covered up to one year. Additionally, fiberglass lids, plastic lids, electrical
panels, bilge pumps, aerator pumps or other electrical devices (excluding stereos, depth finders, radar, chart plotters except
for installation if installed by Twin Vee Powercats, Inc.), steering systems, electrical panels, and pumps are covered under a
one-year basic limited systems warranty. Some materials, components or parts of the boat that are not covered by our limited product
warranties are separately warranted by their manufacturers or suppliers. These other warranties include warranties covering engines
purchased from suppliers and other components.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our standard warranties require us or our dealers
to repair or replace defective products during such warranty periods at no cost to the consumer. Although we employ quality control
procedures, sometimes a product is distributed that needs repair or replacement. The repair and replacement costs we could incur
in connection with a recall could adversely affect our business. In addition, product recalls could harm our reputation and cause
us to lose customers, particularly if recalls cause consumers to question the safety or reliability of our products.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>The nature of our business exposes us
to workers&#8217; compensation claims and other workplace liabilities.</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>&#160;</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Certain materials we use require our employees
to handle potentially hazardous or toxic substances. While our employees who handle these and other potentially hazardous or toxic
materials receive specialized training and wear protective clothing, there is still a risk that they, or others, may be exposed
to these substances. Exposure to these substances could result in significant injury to our employees and damage to our property
or the property of others, including natural resource damage. Our personnel are also at risk for other workplace-related injuries,
including slips and falls. We may in the future be subject to fines, penalties, and other liabilities in connection with any such
injury or damage. Although we currently maintain what we believe to be suitable and adequate insurance in excess of our self-insured
amounts, we may be unable to maintain such insurance on acceptable terms or such insurance may not provide adequate protection
against potential liabilities.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif"><b><i>If
we are unable to comply with environmental and other regulatory requirements, our business may be exposed to material liability
and/or fines</i></b></span><i>.</i></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our operations are subject to extensive and
frequently changing federal, state, local, and foreign laws and regulations, including those concerning product safety, environmental
protection, and occupational health and safety. Some of these laws and regulations require us to obtain permits and limit our ability
to discharge hazardous materials into the environment. If we fail to comply with these requirements, we may be subject to civil
or criminal enforcement actions that could result in the assessment of fines and penalties, obligations to conduct remedial or
corrective actions, or, in extreme circumstances, revocation of our permits or injunctions preventing some or all of our operations.
In addition, the components of our boats must meet certain regulatory standards, including stringent air emission standards for
boat engines. Failure to meet these standards could result in an inability to sell our boats in key markets, which would adversely
affect our business. Moreover, compliance with these regulatory requirements could increase the cost of our products, which in
turn, may reduce consumer demand.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">While we believe that we are in material compliance
with applicable federal, state, local, and foreign regulatory requirements, and hold all licenses and permits required thereunder,
we cannot assure you that we will, at all times, be able to continue to comply with applicable regulatory requirements. Compliance
with increasingly stringent regulatory and permit requirements may, in the future, cause us to incur substantial capital costs
and increase our cost of operations, or may limit our operations, all of which could have a material adverse effect on our business
or financial condition.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As with most boat construction businesses,
our manufacturing processes involve the use, handling, storage, and contracting for recycling or disposal of hazardous substances
and wastes. The failure to manage or dispose of such hazardous substances and wastes properly could expose us to material liability
or fines, including liability for personal injury or property damage due to exposure to hazardous substances, damages to natural
resources, or for the investigation and remediation of environmental conditions. Under environmental laws, we may be liable for
remediation of contamination at sites where our hazardous wastes have been disposed or at our current facility, regardless of whether
our facility is owned or leased or whether the environmental conditions were created by us, a prior owner or tenant, or a third-party.
While we do not believe that we are presently subject to any such liabilities, we cannot assure you that environmental conditions
relating to our prior, existing, or future sites or operations or those of predecessor companies will not have a material adverse
effect on our business or financial condition.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Our industry is characterized by intense
competition, which affects our sales and profits.</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The performance sport boat category and the
powerboat industry as a whole are highly competitive for consumers and dealers. We also compete against consumer demand for used
boats. Competition affects our ability to succeed in both the markets we currently serve and new markets that we may enter in the
future. Competition is based primarily on brand name, price, product selection, and product performance. We compete with several
large manufacturers that may have greater financial, marketing, and other resources than we do and who are represented by dealers
in the markets in which we now operate and into which we plan to expand. We also compete with a variety of small, independent manufacturers.
We cannot assure you that we will not face greater competition from existing large or small manufacturers or that we will be able
to compete successfully with new competitors. Our failure to compete effectively with our current and future competitors would
adversely affect our business, financial condition, and results of operations.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif"><b><i>We
face increasing competition for dealers and have little control over their activities</i></b></span><i>.</i></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We face intense competition from other performance
sport boat manufacturers in attracting and retaining dealers and customers, affecting our ability to attract or retain relationships
with qualified and successful dealers and consumers looking to purchase boats. Although our management believes that the quality
of our products in the boat industry should permit us to maintain our relationships with our dealers and our market share position,
there can be no assurance that we will be able to maintain or improve our relationships with our dealers or our market share position.
In addition, independent dealers in the boating industry have experienced significant consolidation in recent years, which could
result in the loss of one or more of our dealers in the future if the surviving entity in any such consolidation purchases similar
products from a competitor. A substantial deterioration in the number of dealers or quality of our network of dealers would have
a material adverse effect on our business, financial condition, and results of operations.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif"><b><i>Our
sales may be adversely impacted by increased consumer preference for other leisure activities or used boats or the supply of new
boats by competitors in excess of demand</i></b></span><i>.</i></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our boats are not necessities and in times
of economic hardship, consumers may cease purchasing non-essential items. Demand for our boats may be adversely affected by competition
from other activities that occupy consumers&#8217; leisure time and by changes in consumer life style, usage pattern or taste.
Similarly, an overall decrease in consumer leisure time may reduce consumers&#8217; willingness to purchase and enjoy our boats.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the economic downturn that commenced
in 2008, there was a shift in consumer demand toward purchasing more used boats, primarily because prices for used boats are typically
lower than retail prices for new boats. If this were to occur again, it could have the effect of reducing demand among retail purchasers
for our new boats. Also, while we have balanced production volumes for our boats to meet demand, our competitors could choose to
reduce the price of their products, which could have the effect of reducing demand for our new boats. Reduced demand for new boats
could lead to reduced sales by us, which could adversely affect our business, results of operations, and financial condition.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Our sales and profitability depend, in
part, on the successful introduction of new products.</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Market acceptance of our products depends on
our technological innovation and our ability to implement technology in our boats. Our sales and profitability may be adversely
affected by difficulties or delays in product development, such as an inability to develop viable or innovative new products. Our
failure to introduce new technologies and product offerings that consumers desire could adversely affect our business, financial
condition, and results of operations. If we fail to introduce new features or those we introduce fail to gain market acceptance,
our bottom line may suffer.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We are developing the Twin 240E, a fully electric
version of our popular 24-foot center console PowerCat. The 240 E will be Twin Vee&#8217;s first fully electric I/O powertrain
system that will combine an advanced battery pack, converter, high-efficiency motor, and proprietary union assembly between the
transmission, electric motor design, and control software. If we experience delays in the development of the electric I/O powertrain
system for the boat, fail to bring the Twin 240E to market as and when planned or if it fails to gain market acceptance, our bottom
line may also suffer.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In addition, some of our direct competitors
and indirect competitors may have significantly more resources to develop and patent new technologies. It is possible that our
competitors will develop and patent equivalent or superior technologies and other products that compete with ours. They may assert
these patents against us and we may be required to license these patents on unfavorable terms or cease using the technology covered
by these patents, either of which would harm our competitive position and may materially adversely affect our business.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We also cannot be certain that our products
or features have not infringed or will not infringe the proprietary rights of others. Any such infringement could cause third parties,
including our competitors, to bring claims against us, resulting in significant costs and potential damages.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Our success depends upon the continued
strength of our brand, the value of our brand, and sales of our products could be diminished if we, the consumers who use our products,
or the sports and activities in which our products are used are associated with negative publicity.</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We believe that our brand is a significant
contributor to the success of our business and that maintaining and enhancing our brand is important to expanding our consumer
and dealer base. Failure to continue to protect our brand may adversely affect our business, financial condition, and results of
operations. We expect that our ability to develop, maintain and strengthen the Twin Vee brand will also depend heavily on the success
of our marketing efforts. To further promote our brand, we may be required to change our marketing practices, which could result
in substantially increased advertising expenses, including the need to use traditional media such as television, radio and print.
Many of our current and potential competitors have greater name recognition, broader customer relationships and substantially greater
marketing resources than we do. If we do not develop and maintain strong brands, our business, prospects, financial condition and
operating results will be materially and adversely impacted.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Negative publicity, including that resulting
from severe injuries or death occurring in the sports and activities in which our products are used, could negatively affect our
reputation and result in restrictions, recalls, or bans on the use of our products. If the popularity of the sports and activities
for which we design, manufacture, and sell products were to decrease as a result of these risks or any negative publicity, sales
of our products could decrease, which could have an adverse effect on our net sales, profitability, and operating results. In addition,
if we become exposed to additional claims and litigation relating to the use of our products, our reputation may be adversely affected
by such claims, whether or not successful, including by generating potential negative publicity about our products, which could
adversely impact our business and financial condition.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>We may not be able to execute our manufacturing
strategy successfully, which could cause the profitability of our products to suffer.</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our manufacturing strategy is designed to improve
product quality and increase productivity, while reducing costs and increasing flexibility to respond to ongoing changes in the
marketplace. To implement this strategy, we must be successful in our continuous improvement efforts, which depend on the involvement
of management, production employees, and suppliers. Any inability to achieve these objectives could adversely impact the profitability
of our products and our ability to deliver desirable products to our consumers.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>We may need to raise additional capital that may be required
to grow our business, and we may not be able to raise capital on terms acceptable to us or at all.</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">Operating our business
and maintaining our growth efforts will require significant cash outlays and advance capital expenditures and commitments. Although
the proceeds of our initial public offering should be sufficient to fund our operations, if cash on hand and cash generated from
operations and from our initial public offering are not sufficient to meet our cash requirements, we will need to seek additional
capital, potentially through debt or equity financings, to fund our growth. We cannot assure you that we will be able to raise
needed cash on terms acceptable to us or at all. Financings may be on terms that are dilutive or potentially dilutive to our stockholders,
and the prices at which new investors would be willing to purchase our securities may be lower than the price per share of our
common stock in our initial public offering. The holders of new securities may also have rights, preferences or privileges which
are senior to those of existing holders of common stock. If new sources of financing are required, but are insufficient or unavailable,
we will be required to modify our growth and operating plans based on available funding, if any, which would harm our ability to
grow our business.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>If we fail to manage future growth effectively,
we may not be able to market or sell our products successfully.</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Any failure to manage our growth effectively
could materially and adversely affect our business, prospects, operating results and financial condition. We plan to expand our
operations in the near future. Our future operating results depend to a large extent on our ability to manage this expansion and
growth successfully. Risks that we face in undertaking this expansion include:</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 3%; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; width: 3%; padding-right: 0.8pt"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; width: 94%; padding-right: 0.8pt; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">training
new personnel;</span></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">&#160;</td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt">&#160;</td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify">&#160;</td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">forecasting
production and revenue;</span></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">&#160;</td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt">&#160;</td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify">&#160;</td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">expanding
our marketing efforts, including the marketing of a new powertrain that we intend to develop;</span></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">&#160;</td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt">&#160;</td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify">&#160;</td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">controlling
expenses and investments in anticipation of expanded operations;</span></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">&#160;</td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt">&#160;</td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify">&#160;</td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">establishing
or expanding design, manufacturing, sales and service facilities;</span></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">&#160;</td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt">&#160;</td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify">&#160;</td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">implementing
and enhancing administrative infrastructure, systems and processes; and</span></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">&#160;</td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt">&#160;</td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify">&#160;</td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">addressing
new markets.</span></td></tr>
</table>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We intend to continue to hire a number of additional
personnel, including design and manufacturing personnel and service technicians for our electric boats and powertrains. Competition
for individuals with experience designing, manufacturing and servicing electric boats is intense, and we may not be able to attract,
assimilate, train or retain additional highly qualified personnel in the future. The failure to attract, integrate, train, motivate
and retain these additional employees could seriously harm our business and prospects.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><b><i>The loss of&#160;one&#160;or
a few customers could have a material adverse effect on us.</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">A few customers have
in the past, and may in the future, account for a significant portion of our revenues in any&#160;one&#160;year or over a period
of several consecutive years. For example, during the nine months ended September 30, 2021 two dealers represented 23% of our sales.
The loss of business from a significant customer could have a material adverse effect on our business, financial condition, results
of operations and cash flows.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif"><b><i>We
depend upon our executive officers and we may not be able to retain them and their knowledge of our business and technical expertise
would be difficult to replace</i></b></span><i>.</i></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our future success will depend in significant
part upon the continued service of our executive officers. We cannot assure you that we will be able to continue to attract or
retain such persons. We do not have an insurance policy on the life of our chief executive officer, and we do not have &#8220;key
person&#8221; life insurance policies for any of our other officers or advisors. The loss of the technical knowledge and management
and industry expertise of any of our key personnel could result in delays in product development, loss of customers and sales and
diversion of management resources, which could adversely affect our operating results.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Certain of our shareholders have sufficient
voting power to make corporate governance decisions that could have a significant influence on us and the other stockholders.</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our parent company currently owns approximately
57.14% of our outstanding common stock. Our Chief Executive Officer is the Chief Executive Officer of our parent company and a
member of its board of directors in addition to owning 56.14% of the outstanding common stock of our parent company. As a result,
our Chief Executive Officer does and will have significant influence over our management and affairs and over matters requiring
stockholder approval, including the election of directors and approval of significant corporate transactions. In addition, this
concentration of ownership may delay or prevent a change in our control and might affect the market price of our common stock,
even when a change in control may be in the best interest of all stockholders. Furthermore, the interests of this concentration
of ownership may not always coincide with our interests or the interests of other stockholders. Accordingly, our Chief Executive
Officer could cause us to enter into transactions or agreements that we would not otherwise consider.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif"><b><i>We
may attempt to grow our business through acquisitions or strategic alliances and new partnerships, which we may not be successful
in completing or integrating</i></b></span><i>.</i></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We may in the future enter into acquisitions,
such as our current search for a waterfront property and the 14.5 acre parcel for which we have an option to acquire pursuant to
the land purchase agreement we executed in October 2021, and strategic alliances that will enable us to acquire complementary skills
and capabilities, offer new products, expand our consumer base, enter new product categories or geographic markets, and obtain
other competitive advantages. We cannot assure you, however, that we will identify acquisition candidates or strategic partners
that are suitable to our business, obtain financing on satisfactory terms, complete acquisitions or strategic alliances, or successfully
integrate acquired operations into our existing operations. Once integrated, acquired operations may not achieve anticipated levels
of sales or profitability, or otherwise perform as expected. Acquisitions also involve special risks, including risks associated
with unanticipated challenges, liabilities and contingencies, and diversion of management attention and resources from our existing
operations. Similarly, our partnership with leading franchises from other industries to market our products or with third-party
technology providers to introduce new technology to the market may not achieve anticipated levels of consumer enthusiasm and acceptance,
or achieve anticipated levels of sales or profitability, or otherwise perform as expected.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>We rely on network and information systems
and other technologies for our business activities and certain events, such as computer hackings, viruses or other destructive
or disruptive software or activities may disrupt our operations, which could have a material adverse effect on our business, financial
condition and results of operations.</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Network and information systems and other technologies
are important to our business activities and operations. Network and information systems-related events, such as computer hackings,
cyber threats, security breaches, viruses, or other destructive or disruptive software, process breakdowns or malicious or other
activities could result in a disruption of our services and operations or improper disclosure of personal data or confidential
information, which could damage our reputation and require us to expend resources to remedy any such breaches. Moreover, the amount
and scope of insurance we maintain against losses resulting from any such events or security breaches may not be sufficient to
cover our losses or otherwise adequately compensate us for any disruptions to our businesses that may result, and the occurrence
of any such events or security breaches could have a material adverse effect on our business and results of operations.&#160;The
risk of these systems-related events and security breaches occurring has intensified, in part because we maintain certain information
necessary to conduct our businesses in digital form stored on cloud servers. While we develop and maintain systems seeking to prevent
systems-related events and security breaches from occurring, the development and maintenance of these systems is costly and requires
ongoing monitoring and updating as technologies change and efforts to overcome security measures become more sophisticated. Despite
these efforts, there can be no assurance that disruptions and security breaches will not occur in the future. Moreover, we may
provide certain confidential, proprietary and personal information to third parties in connection with our businesses, and while
we obtain assurances that these third parties will protect this information, there is a risk that this information may be compromised.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Likewise, data privacy breaches by employees
or others with permitted access to our systems may pose a risk that sensitive data may be exposed to unauthorized persons or to
the public. While we have invested in protection of data and information technology, there can be no assurance that our efforts
will prevent breakdowns or breaches in our systems that could adversely affect our business. The occurrence of any of such network
or information systems-related events or security breaches could have a material adverse effect on our business, financial condition
and results of operations.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Intellectual Property Risks</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><b><i>A significant
portion of our intellectual property is not protected through patents or formal copyright registration. As a result, we do not
have the full benefit of patent or copyright laws to prevent others from replicating our products, product candidates and brands.</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">We have not protected
our intellectual property rights through patents or formal copyright registration, and we do not currently have any patent applications
pending other than our new patent application that we filed for our propulsion system being developed. There can be no assurance
that any patent will issue or if issued that the patent will protect our intellectual property. As a result, we may not be able
to protect our intellectual property and trade secrets or prevent others from independently developing substantially equivalent
proprietary information and techniques or from otherwise gaining access to our intellectual property or trade secrets. In such
an instance, our competitors could produce products that are nearly identical to ours resulting in us selling less products or
generating less revenue from our sales.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Confidentiality agreements with employees
and others may not adequately prevent disclosure of trade secrets and other proprietary information.</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We rely on trade secrets, know-how and technology,
which are not protected by patents, to protect the intellectual property behind our electric powertrain and for the construction
of our boats. We have recently begun to use confidentiality agreements with our collaborators, employees, consultants, outside
collaborators and other advisors to protect our proprietary technology and processes. We intend to use such agreements in the future,
but these agreements may not effectively prevent disclosure of confidential information and may not provide an adequate remedy
in the event of unauthorized disclosure of confidential information. In addition, others may independently discover trade secrets
and proprietary information, and in such cases, we could not assert any trade secret rights against such party. Costly and time-consuming
litigation could be necessary to enforce and determine the scope of our proprietary rights, and failure to obtain or maintain trade
secret protection could adversely affect our competitive business position.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

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    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>We may need to defend ourselves against patent, copyright
or trademark infringement claims, which may be time-consuming and would cause us to incur substantial costs.</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The status of the protection of our intellectual
property is unsettled as we do not have any issued patents, registered trademarks or registered copyrights for most of our intellectual
property and other than one patent application, we have not applied for the same. Companies, organizations or individuals, including
our competitors, may hold or obtain patents, trademarks or other proprietary rights that would prevent, limit or interfere with
our ability to make, use, develop, sell or market our powerboats and electric powertrains or use third-party components, which
could make it more difficult for us to operate our business. From time to time, we may receive communications from third parties
that allege our products or components thereof are covered by their patents or trademarks or other intellectual property rights.
Companies holding patents or other intellectual property rights may bring suits alleging infringement of such rights or otherwise
assert their rights. If we are determined to have infringed upon a third party&#8217;s intellectual property rights, we may be
required to do one or more of the following:</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 3%; text-align: justify">&#160;</td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; width: 5%"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">cease making, using, selling or offering to sell processes, goods or services that incorporate or use the third-party intellectual property;</span></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">&#160;</td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt">&#160;</td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify">&#160;</td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">&#160;</td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">pay substantial damages;</span></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">&#160;</td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt">&#160;</td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify">&#160;</td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">&#160;</td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">seek a license from the holder of the infringed intellectual property right, which license may not be available on reasonable terms or at all;</span></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">&#160;</td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt">&#160;</td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify">&#160;</td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">&#160;</td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">redesign our boats or other goods or services to avoid infringing the third-party intellectual property;</span></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">&#160;</td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt">&#160;</td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify">&#160;</td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">&#160;</td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">establish and maintain alternative branding for our products and services; or</span></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">&#160;</td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt">&#160;</td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify">&#160;</td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">&#160;</td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">find-third providers of any part or service that is the subject of the intellectual property claim.</span></td></tr>
</table>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In the event of a successful claim of infringement
against us and our failure or inability to obtain a license to the infringed technology or other intellectual property right, our
business, prospects, operating results and financial condition could be materially adversely affected. In addition, any litigation
or claims, whether or not valid, could result in substantial costs, negative publicity and diversion of resources and management
attention.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Risks Related to Our Industry</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Demand in the powerboat industry is highly
volatile.</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Volatility of demand in the powerboat industry,
especially for recreational powerboats and electric powerboats, may materially and adversely affect our business, prospects, operating
results and financial condition. The markets in which we will be competing have been subject to considerable volatility in demand
in recent periods. Demand for recreational powerboat and electric powerboat sales depends to a large extent on general, economic
and social conditions in a given market. Historically, sales of recreational powerboats decrease during economic downturns. We
have fewer financial resources than more established powerboat manufacturers to withstand adverse changes in the market and disruptions
in demand.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif"><b><i>General
economic conditions, particularly in the U.S., affect our industry, demand for our products and our business, and results of operations</i></b></span><i>.</i></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Demand for premium boat brands has been significantly
influenced by weak economic conditions, low consumer confidence, high unemployment, and increased market volatility worldwide,
especially in the U.S. In times of economic uncertainty and contraction, consumers tend to have less discretionary income and tend
to defer or avoid expenditures for discretionary items, such as our products. Sales of our products are highly sensitive to personal
discretionary spending levels. Our business is cyclical in nature and its success is impacted by economic conditions, the overall
level of consumer confidence and discretionary income levels. Any substantial deterioration in general economic conditions that
diminishes consumer confidence or discretionary income may reduce our sales and materially adversely affect our business, financial
condition and results of operations. We cannot predict the duration or strength of an economic recovery, either in the U.S. or
in the specific markets where we sell our products. Corporate restructurings, layoffs, declines in the value of investments and
residential real estate, higher gas prices, higher interest rates, and increases in federal and state taxation may each materially
adversely affect our business, financial condition, and results of operations.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Consumers often finance purchases of our products.
Although consumer credit markets have improved, consumer credit market conditions continue to influence demand, especially for
boats, and may continue to do so. There continue to be fewer lenders, tighter underwriting and loan approval criteria, and greater
down payment requirements than in the past. If credit conditions worsen, and adversely affect the ability of consumers to finance
potential purchases at acceptable terms and interest rates, it could result in a decrease in the sales of our products.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><b><i>Global economic
conditions could materially adversely impact demand for our products and services.</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">Our operations and
performance depend significantly on economic conditions. Global financial conditions continue to be subject to volatility arising
from international geopolitical developments and global economic phenomenon, as well as general financial market turbulence, including
a significant recent market reaction to the novel coronavirus (COVID-19), resulting in a significant reduction in many major market
indices. Uncertainty about global economic conditions could result in material adverse effects on our business, results of operations
or financial condition. Access to public financing and credit can be negatively affected by the effect of these events on U.S.
and global credit markets. The health of the global financing and credit markets may affect our ability to obtain equity or debt
financing in the future and the terms at which financing, or credit is available to us. These instances of volatility and market
turmoil could adversely affect our operations and the trading price of our common shares resulting in:</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">&#160;</p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0; background-color: white">
<tr style="vertical-align: top">
<td style="width: 0.25in"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="width: 0.25in"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">customers postponing purchases of our products
and services in response to tighter credit, unemployment, negative financial news and/or declines in income or asset values and
other macroeconomic factors, which could have a material negative effect on demand for our products and services; and</span></td></tr>
<tr style="vertical-align: top">
<td>&#160;</td>
<td>&#160;</td>
<td style="text-align: justify">&#160;</td></tr>
<tr style="vertical-align: top">
<td><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td>&#9679;</td>
<td style="text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">third-party suppliers being unable to produce
parts and components for our products in the same quantity or on the same timeline or being unable to deliver such parts and components
as quickly as before or subject to price fluctuations, which could have a material adverse effect on our production or the cost
of such production.</span></td></tr>
</table>




<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>&#160;</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Risks Relating to Ownership of our Common
Stock</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Terms of subsequent financings may adversely
impact your investment.</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We may have to engage in common equity, debt,
or preferred stock financing in the future. Your rights and the value of your investment in our securities could be reduced. Interest
on debt securities could increase costs and negatively impacts operating results. Preferred stock could be issued in series from
time to time with such designation, rights, preferences, and limitations as needed to raise capital. The terms of preferred stock
could be more advantageous to those investors than to the holders of common shares. In addition, if we need to raise more equity
capital from the sale of common shares, institutional or other investors may negotiate terms at least as, and possibly more, favorable
than the terms of your investment. Common shares which we sell could be sold into any market which develops, which could adversely
affect the market price.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>If securities analysts do not publish
research or reports about our company, or if they issue unfavorable commentary about us or our industry or downgrade our common
stock, the price of our common stock could decline.</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The trading market for our common stock will
depend in part on the research and reports that third-party securities analysts publish about our company and our industry. We
may be unable or slow to attract research coverage and if one or more analysts cease coverage of our company, we could lose visibility
in the market. In addition, one or more of these analysts could downgrade our common stock or issue other negative commentary about
our company or our industry. As a result of one or more of these factors, the trading price of our common stock could decline.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>The obligations associated with being a public company will
require significant resources and management attention, which may divert from our business operations.</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As a result of our initial public offering,
we are subject to the reporting requirements of the Exchange Act and the Sarbanes-Oxley Act. The Exchange Act requires that we
file annual, quarterly, and current reports with respect to our business and financial condition. The Sarbanes-Oxley Act requires,
among other things, that we establish and maintain effective internal controls and procedures for financial reporting. As a result,
we have and will continue to incur significant legal, accounting, and other expenses that we did not previously incur.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>We have identified weaknesses in our
internal controls, and we cannot provide assurances that these weaknesses will be effectively remediated or that additional material
weaknesses will not occur in the future.</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As a public company, we will be subject to
the reporting requirements of the Exchange Act, and the Sarbanes-Oxley Act. We expect that the requirements of these rules and
regulations will continue to increase our legal, accounting and financial compliance costs, make some activities more difficult,
time consuming and costly, and place significant strain on our personnel, systems and resources.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Sarbanes-Oxley Act requires, among other
things, that we maintain effective disclosure controls and procedures, and internal control over financial reporting.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We do not yet have effective disclosure controls
and procedures, or internal controls over all aspects of our financial reporting. We are continuing to develop and refine our disclosure
controls and other procedures that are designed to ensure that information required to be disclosed by us in the reports that we
will file with the SEC is recorded, processed, summarized and reported within the time periods specified in SEC rules and in accordance
with GAAP. Our management is responsible for establishing and maintaining adequate internal control over our financial reporting,
as defined in Rule 13a-15(f) under the Exchange Act. We will be required to expend time and resources to further improve our internal
controls over financial reporting, including by expanding our staff. However, we cannot assure you that our internal control over
financial reporting, as modified, will enable us to identify or avoid material weaknesses in the future.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We have identified material weaknesses in our
internal control over financial reporting. A material weakness is a deficiency, or a combination of deficiencies, in internal control
over financial reporting such that there is a reasonable possibility that a material misstatement of our financial statements will
not be prevented or detected on a timely basis. The material weaknesses identified to date include (i) lack of segregation of duties
and (ii) the level of review of our internally prepared financial statements. In addition, our auditor identified during its testing
of our December 31, 2019 balances an error in inventory in the approximate amount of $227,000 for the use of the wrong unit of
measure for an inventory item which resulted in a misstatement within inventory and cost of sales. Other errors were also discovered
during testing of our December 31, 2019 balances that included differences between the ledger and supporting schedules relating
to inventory, property and equipment, accounts payable, accrued expenses, additional paid-in capital, revenue, cost of sales, gross
margin and general and administrative expenses. As such, the auditor provided us with a letter stating that our internal controls
with respect to the financial close and financial reporting do not include a sufficient process to reconcile the accounts to supporting
records and an independent review process to ensure U.S. GAAP financial statements are free from error. Accordingly, our internal
controls over financial reporting were not and have not been designed or operating effectively.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We are expending time and resources to further
improve our internal controls over financial reporting, including by expanding our staff; however we still do not have sufficient
staff for proper segregation of duties . However, we cannot assure you that our internal control over financial reporting, as modified,
will enable us to identify or avoid material weaknesses in the future.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We have not yet retained sufficient staff or
engaged sufficient outside consultants with appropriate experience in GAAP presentation, especially of complex instruments, to
devise and implement effective disclosure controls and procedures, or internal controls. We will be required to expend time and
resources hiring and engaging additional staff and outside consultants with the appropriate experience to remedy these weaknesses.
We cannot assure you that management will be successful in locating and retaining appropriate candidates; that newly engaged staff
or outside consultants will be successful in remedying material weaknesses thus far identified or identifying material weaknesses
in the future; or that appropriate candidates will be located and retained prior to these deficiencies resulting in material and
adverse effects on our business.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our current controls and any new controls that
we develop may become inadequate because of changes in conditions in our business, including increased complexity resulting from
our international expansion. Further, weaknesses in our disclosure controls or our internal control over financial reporting may
be discovered in the future. Any failure to develop or maintain effective controls, or any difficulties encountered in their implementation
or improvement, could harm our operating results or cause us to fail to meet our reporting obligations and may result in a restatement
of our financial statements for prior periods. Any failure to implement and maintain effective internal control over financial
reporting could also adversely affect the results of management reports and independent registered public accounting firm audits
of our internal control over financial reporting that we will eventually be required to include in our periodic reports that will
be filed with the SEC. Ineffective disclosure controls and procedures, and internal control over financial reporting could also
cause investors to lose confidence in our reported financial and other information, which would likely have a negative effect on
the market price of our common stock.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our independent registered public accounting
firm is not required to audit the effectiveness of our internal control over financial reporting until after we are no longer an
&#8220;emerging growth company&#8221; as defined in the JOBS Act. At such time, our independent registered public accounting firm
may issue a report that is adverse in the event it is not satisfied with the level at which our internal control over financial
reporting is documented, designed or operating. Any failure to maintain effective disclosure controls and internal control over
financial reporting could have a material and adverse effect on our business and operating results and cause a decline in the market
price of our common stock.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif"><b><i>Our
failure to achieve and maintain effective internal control over financial reporting in accordance with Section 404 of the Sarbanes-Oxley
Act as a public company could have a material adverse effect on our business and share price</i></b></span><i>.</i></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Prior to the completion of our initial public
offering, we have not had to independently comply with Section 404(a) of the Sarbanes-Oxley Act. Section 404(a) of the Sarbanes-Oxley
Act requires annual management assessments of the effectiveness of our internal control over financial reporting, starting with
the second annual report that we would expect to file with the SEC. We anticipate being required to meet these standards in the
course of preparing our financial statements as of and for the year ending December 31, 2022, and our management will be required
to report on the effectiveness of our internal control over financial reporting for such year. Additionally, once we are no longer
an emerging growth company, as defined by the JOBS Act, our independent registered public accounting firm will be required pursuant
to Section 404(b) of the Sarbanes-Oxley Act to attest to the effectiveness of our internal control over financial reporting on
an annual basis. The rules governing the standards that must be met for our management to assess our internal control over financial
reporting are complex and require significant documentation, testing, and possible remediation.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Internal control over financial reporting is
a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial
statements in accordance with generally accepted accounting principles. We are in the process of reviewing, documenting, and testing
our internal control over financial reporting, but we are not currently in compliance with, and we cannot be certain when we will
be able to implement, the requirements of Section 404(a). We may encounter problems or delays in implementing any changes necessary
to make a favorable assessment of our internal control over financial reporting. In addition, we may encounter problems or delays
in completing the implementation of any public accounting firm after we cease to be an emerging growth company. If we cannot favorably
assess the effectiveness of our internal control over financial reporting, or if our independent registered public accounting firm
is unable to provide an unqualified attestation report on our internal controls after we cease to be an emerging growth company,
investors could lose confidence in our financial information and the price of our common stock could decline.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Additionally, the existence of any material
weakness or significant deficiency requires management to devote significant time and incur significant expense to remediate any
such material weaknesses or significant deficiencies and management may not be able to remediate any such material weaknesses or
significant deficiencies in a timely manner. The existence of any material weakness in our internal control over financial reporting
could also result in errors in our financial statements that could require us to restate our financial statements, cause us to
fail to meet our reporting obligations, and cause stockholders to lose confidence in our reported financial information, all of
which could materially and adversely affect our business and share price.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>For as long as we are an emerging growth
company, we will not be required to comply with certain reporting requirements, including those relating to accounting standards
and disclosure about our executive compensation, that apply to other public companies.</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We are an &#8220;emerging growth company,&#8221;
as defined in Section 2(a) of the Securities Act, as modified by the JOBS Act. As such, we are eligible to take advantage of certain
exemptions from various reporting requirements that are applicable to other public companies that are not &#8220;emerging growth
companies,&#8221; including, but not limited to, (i) not being required to comply with the auditor attestation requirements of
Section 404(b) of the Sarbanes-Oxley Act, (ii) reduced disclosure obligations regarding executive compensation in our periodic
reports and proxy statements, and (iii) exemptions from the requirements of holding a non-binding advisory vote on executive compensation
and of stockholder approval of any golden parachute payments not previously approved. We have elected to adopt these reduced disclosure
requirements. We cannot predict if investors will find our common stock less attractive as a result of our taking advantage of
these exemptions and as a result, there may be a less active trading market for our common stock and our stock price may be more
volatile.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

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    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We could remain an &#8220;emerging growth company&#8221;
for up to five years or until the earliest of (a) the last day of the first fiscal year in which our annual gross revenues exceed
$1 billion, (b) the date that we become a &#8220;large accelerated filer&#8221; as defined in Rule 12b-2 under the Exchange Act,
which would occur if the market value of our common stock that is held by non-affiliates exceeds $700 million as of the last business
day of our most recently completed fiscal quarter, and (c) the date on which we have issued more than $1 billion in non-convertible
debt securities during the preceding three-year period.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We are also a &#8220;smaller reporting company&#8221;
as defined in the Exchange Act, and have elected to take advantage of certain of the scaled disclosures available to smaller reporting
companies. To the extent that we continue to qualify as a &#8220;smaller reporting company&#8221; as such term is defined in Rule&#160;12b-2
under the Exchange Act, after we cease to qualify as an emerging growth company, certain of the exemptions available to us as an
&#8220;emerging growth company&#8221; may continue to be available to us as a &#8220;smaller reporting company,&#8221; including
exemption from compliance with the auditor attestation requirements pursuant to SOX and&#160;reduced disclosure about our executive
compensation arrangements. We will continue to be a &#8220;smaller reporting company&#8221; until we have $250&#160;million or
more in public float (based on our common stock) measured as of the last business day of our most recently completed second fiscal
quarter or, in the event we have no public float (based on our common stock) or a public float (based on our common stock) that
is less than $700 million, annual revenues of $100&#160;million or more during the most recently completed fiscal year.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Our common stock price may be volatile
or may decline regardless of our operating performance and you may not be able to resell your shares at or above the initial public
offering price.</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">It is possible that an active trading market
will not continue or be sustained, which could make it difficult for investors to sell their shares of our common stock at an attractive
price or at all.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Volatility in the market price of our common
stock may prevent investors from being able to sell their shares at or above the price you paid for them. Many factors, which are
outside our control, may cause the market price of our common stock to fluctuate significantly, including those described elsewhere
in this &#8220;Risk Factors&#8221; section and this prospectus, as well as the following:</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 3%"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; width: 3%; padding-right: 0.8pt"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; width: 94%; padding-right: 0.8pt; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">Our
operating and financial performance and prospects;</span></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">Our
quarterly or annual earnings or those of other companies in our industry compared to market expectations;</span></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">Conditions
that impact demand for our products;</span></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">Future
announcements concerning our business or our competitors&#8217; businesses;</span></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">The
public&#8217;s reaction to our press releases, other public announcements, and filings with the SEC;</span></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">The
size of our public float;</span></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">Coverage
by or changes in financial estimates by securities analysts or failure to meet their expectations;</span></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">Market
and industry perception of our success, or lack thereof, in pursuing our growth strategy;</span></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">Strategic
actions by us or our competitors, such as acquisitions or restructurings;</span></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">Changes
in laws or regulations that adversely affect our industry or us;</span></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">Changes
in accounting standards, policies, guidance, interpretations, or principles;</span></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">Changes
in senior management or key personnel;</span></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">Issuances,
exchanges or sales, or expected issuances, exchanges or sales of our capital stock;</span></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">Changes
in our dividend policy;</span></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">Adverse
resolution of new or pending litigation against us; and</span></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td><span style="font: 10pt Times New Roman, Times, Serif">Changes in general market, economic, and political conditions in the
U.S. and global economies or financial &#160; markets, including those resulting from natural disasters, terrorist attacks, acts
of war, and responses to such events.</span></td></tr>
</table>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As a result, volatility in the market price
of our common stock may prevent investors from being able to sell their common stock at or above the initial public offering price
or at all. These broad market and industry factors may materially reduce the market price of our common stock, regardless of our
operating performance. In addition, price volatility may be greater if the public float and trading volume of our common stock
is low. As a result, investors may suffer a loss on your investment.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Additionally, recently, securities of certain
companies have experienced significant and extreme&#160;volatility in stock price due to short sellers of shares of common stock,
known as a &#8220;short squeeze.&#8221; These short squeezes have caused extreme volatility in those companies and in the market
and have led to the price per share of those companies to trade at significantly inflated rates that is disconnected from the underlying
value of the company. Many investors who have purchased shares in those companies at an inflated rate face the risk of losing a
significant portion of their original investment as the price per share has declined steadily as interest in those stocks have
abated. While we have no reason to believe our shares would be the target of a short squeeze, there can be no assurance that we
won&#8217;t be in the future, and investors may lose a significant portion or all of their investment if you purchase our shares
at a rate that is significantly disconnected from our underlying value.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>We do not intend to pay dividends on
our common stock for the foreseeable future.</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We presently have no intention to pay dividends
on our common stock at any time in the foreseeable future. Any decision to declare and pay dividends in the future will be made
at the discretion of our board of directors and will depend on, among other things, our results of operations, financial condition,
cash requirements, contractual restrictions, and other factors that our board of directors may deem relevant. Furthermore, our
ability to declare and pay dividends may be limited by instruments governing future outstanding indebtedness we may incur.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>FINRA sales practice requirements may limit your ability to
buy and sell our common shares, which could depress the price of our shares.</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">FINRA rules require broker-dealers to have
reasonable grounds for believing that an investment is suitable for a customer before recommending that investment to the customer.
Prior to recommending speculative low-priced securities to their non-institutional customers, broker-dealers must make reasonable
efforts to obtain information about the customer&#8217;s financial status, tax status and investment objectives, among other things.
Under interpretations of these rules, FINRA believes that there is a high probability such speculative low-priced securities will
not be suitable for at least some customers. Thus, FINRA requirements may make it more difficult for broker-dealers to recommend
that their customers buy our common shares, which may limit an investors ability to buy and sell our shares, have an adverse effect
on the market for our shares and, thereby, depress their market prices.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Volatility in our common shares price
may subject us to securities litigation.</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The market for our common shares may have,
when compared to seasoned issuers, significant price volatility, and we expect that our share price may continue to be more volatile
than that of a seasoned issuer for the indefinite future. In the past, plaintiffs have often initiated securities class action
litigation against a company following periods of volatility in the market price of its securities. We may, in the future, be the
target of similar litigation. Securities litigation could result in substantial costs and liabilities and could divert management&#8217;s
attention and resources.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif"><b><i>We
have broad discretion in the use of the net proceeds from</i></b></span> <b><i>our initial public offering and may not use them
effectively.</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our management has broad discretion in the
application of the net proceeds from our initial public offering, and investors do not have the opportunity to assess whether the
net proceeds are being used appropriately. Because of the number and variability of factors that will determine our use of the
net proceeds from our initial public offering, their ultimate use may vary substantially from their initial intended use. The failure
by our management to apply those funds effectively could harm our business.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Provisions in our corporate charter documents
and under Delaware law could make an acquisition of our company, which may be beneficial to our stockholders, more difficult and
may prevent attempts by our stockholders to replace or remove our current management.</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Provisions in our corporate charter and our
bylaws may discourage, delay or prevent a merger, acquisition or other change in control of our company that stockholders may consider
favorable, including transactions in which you might otherwise receive a premium for your shares. These provisions could also limit
the price that investors might be willing to pay in the future for shares of our common stock, thereby depressing the market price
of our common stock. In addition, because our board of directors is responsible for appointing the members of our management team,
these provisions may frustrate or prevent any attempts by our stockholders to replace or remove our current management by making
it more difficult for stockholders to replace members of our board of directors. Among other things, these provisions:</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 3%"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; width: 3%; padding-right: 0.8pt"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">our
board of directors is divided into three classes, one class of which is elected each year by our stockholders with the directors
in each class to serve for a three-year term;</span></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif">&#160;</td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt">&#160;</td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify">&#160;</td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">the
authorized number of directors can be changed only by resolution of our board of directors;</span></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif">&#160;</td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt">&#160;</td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify">&#160;</td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">directors
may be removed only by the affirmative vote of the holders of at least sixty percent (60%) of our voting stock, whether for cause
or without cause;</span></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif">&#160;</td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt">&#160;</td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify">&#160;</td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">our
bylaws may be amended or repealed by our board of directors or by the affirmative vote of sixty-six and two-thirds percent (66
2/3%) of our stockholders;</span></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif">&#160;</td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt">&#160;</td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify">&#160;</td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">stockholders
may not call special meetings of the stockholders or fill vacancies on the board of directors;</span></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif">&#160;</td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt">&#160;</td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify">&#160;</td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">our
board of directors will be authorized to issue, without stockholder approval, preferred stock, the rights of which will be determined
at the discretion of the board of directors and that, if issued, could operate as a &#8220;poison pill&#8221; to dilute the stock
ownership of a potential hostile acquirer to prevent an acquisition that our board of directors does not approve;</span></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif">&#160;</td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt">&#160;</td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify">&#160;</td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">our
stockholders do not have cumulative voting rights, and therefore our stockholders holding a majority of the shares of common stock
outstanding will be able to elect all of our directors; and</span></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif">&#160;</td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt">&#160;</td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify">&#160;</td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">our
stockholders must comply with advance notice provisions to bring business before or nominate directors for election at a stockholder
meeting.</span></td></tr>
</table>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Moreover, because we are incorporated in Delaware,
we are governed by the provisions of Section 203 of the Delaware General Corporation Law, which prohibits a person who owns in
excess of 15% of our outstanding voting stock from merging or combining with us for a period of three years after the date of the
transaction in which the person acquired in excess of 15% of our outstanding voting stock, unless the merger or combination is
approved in a prescribed manner.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Our Certificate of Incorporation provides
that the Court of Chancery of the State of Delaware will be the exclusive forum for certain types of state actions that may be
initiated by our stockholders, which could limit our stockholders&#8217; ability to obtain a favorable judicial forum for disputes
with us or our directors, officers, or employees</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our Certificate of Incorporation provides that,
unless we consent to the selection of an alternative forum, the Court of Chancery of the State of Delaware is the exclusive forum
for (i) any derivative action or proceeding brought on behalf of us, (ii) any action asserting a claim of breach of a fiduciary
duty owed by any of our directors, officers, or other employees to us or our stockholders, (iii) any action arising pursuant to
any provision of the DGCL or our certificate of incorporation or bylaws (as either may be amended from time to time), or (iv) any
action asserting a claim governed by the internal affairs doctrine. The exclusive forum provision does not apply to suits brought
to enforce any liability or duty created by the Securities Act or the Exchange Act or any other claim for which the federal courts
have exclusive jurisdiction. To the extent that any such claims may be based upon federal law claims, Section 27 of the Exchange
Act creates exclusive federal jurisdiction over all suits brought to enforce any duty or liability created by the Exchange Act
or the rules and regulations thereunder. Furthermore, Section 22 of the Securities Act creates concurrent jurisdiction for federal
and state courts over all suits brought to enforce any duty or liability created by the Securities Act or the rules and regulations
thereunder.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">These exclusive-forum provisions may limit
a stockholder&#8217;s ability to bring a claim in a judicial forum that it finds favorable for disputes with us or our directors,
employees, control persons, underwriters, or agents, which may discourage lawsuits against us and our directors, employees, control
persons, underwriters, or agents. Additionally, a court could determine that the exclusive forum provision is unenforceable, and
our stockholders will not be deemed to have waived our compliance with the federal securities laws and the rules and regulations
thereunder. If a court were to find these provisions of our bylaws inapplicable to, or unenforceable in respect of, one or more
of the specified types of actions or proceedings, we may incur additional costs associated with resolving such matters in other
jurisdictions, which could adversely affect our business, financial condition, or results of operations.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><span id="a_012"></span>ITEM&#160;2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE
OF PROCEEDS.</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>&#160;</b></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0.25in"><span style="font: 10pt Times New Roman, Times, Serif"><b><i>(a)</i></b></span></td><td style="text-align: justify"><b><i>Unregistered Sales of Equity Securities. </i></b></td></tr></table>



<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.05in; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.05in; text-align: justify">None.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.05in; text-align: justify">&#160;</p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0.25in"><span style="font: 10pt Times New Roman, Times, Serif"><b><i>(c)</i></b></span></td><td style="text-align: justify"><b><i>Use of Proceeds. </i></b></td></tr></table>



<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On July 22, 2021, we closed our initial public
offering pursuant to which we offered and sold 3,000,000 shares of our common stock at an offering price of $6.00 per share (for
aggregate gross proceeds of $18,000,000), pursuant to our Registration Statement on Form S-1 (as amended) (File No. 333-255134),
which was declared effective by the SEC on July 20, 2021, as amended by the Registration Statement on Form S-1 MEF (File No. 333-258058)
filed with the SEC on July 20, 2021 and effective as of the date of filing. After deducting underwriting discounts and commissions
of approximately $1,260,000, and other offering expenses payable by us of approximately $1,567,150, we received approximately $15,849,037
in net proceeds from our initial public offering. ThinkEquity, a division of Fordham Financial Management, Inc. acted as the representative
of the several underwriters for the offering. <span style="color: black">We also granted a 45-day option to the representative
of the underwriters to purchase up to 450,000&#160;additional shares of common stock solely to cover over-allotments, if any, which
expired unexercised. </span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">There has been no material change in the planned
use of proceeds from our initial public offering as described in our final prospectus, dated July 20, 2021, which was filed with
the SEC on July 22, 2021 pursuant to Rule 424(b) under the Securities Act. The primary use of the net proceeds from our initial
public offering continues to be, as follows: (i) approximately $1,500,000 for production and marketing of our larger fully equipped
boats. Due to their size, the larger boats will require us to acquire specialized equipment such as overhead cranes and industrial
grade gantry systems to lift and move the boats, engines and load the boats on extra-large custom designed boat trailers; (ii)
approximately $2,500,000 for the design, development, testing, manufacturing and marketing of our new line of electric boats; (iii)
approximately $6,000,000 for the design, development, testing, manufacturing and marketing of our fully electric propulsion system;
(iv) approximately $3,500,000 for acquisition of waterfront property and development of the Electra Power Sports- EV Innovation
&amp; Testing Center, in Fort Pierce, Florida to build, design and manufacture our electric propulsion systems and (v) the balance
for working capital.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">No payments were made by us to directors, officers
or persons owning ten percent or more of our common stock or to their associates, or to our affiliates, other than payments in
the ordinary course of business to officers for salaries. Pending the uses described, we have invested the net proceeds in our
operating cash account.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0"><b><span id="a_013"></span>ITEM&#160;3. DEFAULTS UPON SENIOR SECURITIES.</b></p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0"><b>&#160;</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Not Applicable.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0"><b><span id="a_014"></span>ITEM&#160;4. MINE SAFETY DISCLOSURES.</b></p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0"><b>&#160;</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Not Applicable.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0"><b><span id="a_015"></span>ITEM&#160;5. OTHER INFORMATION.</b></p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0"><b>&#160;</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">None.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0"><b><span id="a_016"></span>ITEM&#160;6. EXHIBITS.</b></p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0"><b>&#160;</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The exhibits filed as part of this Quarterly
Report on Form&#160;10-Q are set forth on the Exhibit&#160;Index. The Exhibit&#160;Index is incorporated herein by reference.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>EXHIBIT&#160;INDEX</b></p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&#160;</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>

<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="border-bottom: Black 1pt solid; font: 10pt/115% Times New Roman, Times, Serif; width: 8%"><span style="font: 10pt Times New Roman, Times, Serif"><b>Exhibit
No.</b></span></td>
    <td style="width: 2%; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="border-bottom: Black 1pt solid; font: 10pt/115% Times New Roman, Times, Serif; width: 90%"><span style="font: 10pt Times New Roman, Times, Serif"><b>Description</b></span></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt/115% Calibri, Helvetica, Sans-Serif"><span style="font: 10pt Times New Roman, Times, Serif">1.1</span></td>
    <td><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td><span style="font: 10pt Times New Roman, Times, Serif"><a href="http://www.sec.gov/Archives/edgar/data/1855509/000173112221001235/e2940_ex1-1.htm">Underwriting Agreement between Twin Vee PowerCats Co. and ThinkEquity, a division of Fordham Financial Management, Inc. (incorporated by reference to Exhibit 1.1 to the Current Report on Form 8-K filed with the Securities and Exchange Commission on July 26, 2021 (File No. 001-40623))</a></span></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt/115% Calibri, Helvetica, Sans-Serif"><span style="font: 10pt Times New Roman, Times, Serif">3.1</span></td>
    <td><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td><span style="font: 10pt Times New Roman, Times, Serif"><a href="http://www.sec.gov/Archives/edgar/data/1855509/000173112221000553/e2601_ex3-1.htm">Articles of Incorporation filed with the Secretary of State of the State of Florida, dated December 1, 2009 (incorporated by reference to Exhibit 3.1 to the Registration Statement on Form S-1 with the Securities and Exchange Commission on April 8, 2021 (File No. 333-255134))</a></span></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt/115% Calibri, Helvetica, Sans-Serif"><span style="font: 10pt Times New Roman, Times, Serif">3.2</span></td>
    <td><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td><span style="font: 10pt Times New Roman, Times, Serif"><a href="http://www.sec.gov/Archives/edgar/data/1855509/000173112221000553/e2601_ex3-2.htm">Articles of Amendment to the Articles of Incorporation, filed with the Secretary of State of the State of Florida on January 22, 2016 (incorporated by reference to Exhibit 3.2 to the Registration Statement on Form S-1 with the Securities and Exchange Commission on April 8, 2021 (File No. 333-255134))</a></span></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt/115% Calibri, Helvetica, Sans-Serif"><span style="font: 10pt Times New Roman, Times, Serif">3.3</span></td>
    <td><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td><span style="font: 10pt Times New Roman, Times, Serif"><a href="http://www.sec.gov/Archives/edgar/data/1855509/000173112221000553/e2601_ex3-3.htm">Articles of Amendment to the Articles of Incorporation, filed with the Secretary of State of the State of Florida on April 12, 2016 (incorporated by reference to Exhibit 3.3 to the Registration Statement on Form S-1 with the Securities and Exchange Commission on April 8, 2021 (File No. 333-255134))</a></span></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt/115% Calibri, Helvetica, Sans-Serif"><span style="font: 10pt Times New Roman, Times, Serif">3.4</span></td>
    <td><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td><span style="font: 10pt Times New Roman, Times, Serif"><a href="http://www.sec.gov/Archives/edgar/data/1855509/000173112221000553/e2601_ex3-4.htm">Article of Conversion filed with the Secretary of State of the State of Florida, dated April 7, 2021 (incorporated by reference to Exhibit 3.4 to the Registration Statement on Form S-1 with the Securities and Exchange Commission on April 8, 2021 (File No. 333-255134))</a></span></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt/115% Calibri, Helvetica, Sans-Serif"><span style="font: 10pt Times New Roman, Times, Serif">3.5</span></td>
    <td><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td><span style="font: 10pt Times New Roman, Times, Serif"><a href="http://www.sec.gov/Archives/edgar/data/1855509/000173112221000553/e2601_ex3-5.htm">Certificate of Conversion filed with the Secretary of State of the State of Delaware on April 7, 2021 (incorporated by reference to Exhibit 3.5 to the Registration Statement on Form S-1 with the Securities and Exchange Commission on April 8, 2021 (File No. 333-255134))</a></span></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt/115% Calibri, Helvetica, Sans-Serif"><span style="font: 10pt Times New Roman, Times, Serif">3.6</span></td>
    <td><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td><span style="font: 10pt Times New Roman, Times, Serif"><a href="http://www.sec.gov/Archives/edgar/data/1855509/000173112221000553/e2601_ex3-6.htm">Certificate of Incorporation filed with the Secretary of State of the State of Delaware on April 7, 2021 (incorporated by reference to Exhibit 3.6 to the Registration Statement on Form S-1 with the Securities and Exchange Commission on April 8, 2021 (File No. 333-255134))</a></span></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt/115% Calibri, Helvetica, Sans-Serif"><span style="font: 10pt Times New Roman, Times, Serif">3.7</span></td>
    <td><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td><span style="font: 10pt Times New Roman, Times, Serif"><a href="http://www.sec.gov/Archives/edgar/data/1855509/000173112221000553/e2601_ex3-7.htm">Bylaws (incorporated by reference to Exhibit 3.7 to the Registration Statement on Form S-1 with the Securities and Exchange Commission on April 8, 2021 (File No. 333-255134))</a></span></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt/115% Calibri, Helvetica, Sans-Serif"><span style="font: 10pt Times New Roman, Times, Serif">10.1</span></td>
    <td><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td><span style="font: 10pt Times New Roman, Times, Serif"><a href="http://www.sec.gov/Archives/edgar/data/1855509/000173112221000989/e2785_ex10-2.htm">Twin Vee Powercats Co. Amended and Restated 2021 Stock Incentive Stock Plan (incorporated by reference to Exhibit 10.2 to the Registration Statement on Form S- 1, filed with the Securities and Exchange Commission on June 2, 2021 (File No. 333-255134))</a></span></td></tr>
<tr style="vertical-align: top">
<td style="font: 10pt/115% Calibri, Helvetica, Sans-Serif"><span style="font: 10pt Times New Roman, Times, Serif">10.2</span></td>
    <td><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt/115% Calibri, Helvetica, Sans-Serif"><span style="font: 10pt Times New Roman, Times, Serif"><a href="http://www.sec.gov/Archives/edgar/data/1855509/000173112221000989/e2785_ex10-2.htm">Form of Stock Option Grant Notice, Option Agreement (Incentive Stock Option or&#160;Nonstatutory Stock Option) and Notice of Exercise under the Amended and Restated 2021 Stock Incentive Plan (incorporated by reference to Exhibit 10.2 to the Registration Statement on Form S-1, filed with the Securities and Exchange Commission on June 2, 2021 (File No. 333-255134)</a>)</span></td></tr>
</table>



<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&#160;</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>

<!-- Field: Page; Sequence: 47; Value: 1 -->
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    <!-- Field: /Page -->

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&#160;</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>

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<td style="width: 8%; line-height: 115%; font-size: 10pt"><span style="font: 10pt Times New Roman, Times, Serif">10.3</span></td>
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<td style="width: 90%"><span style="font: 10pt Times New Roman, Times, Serif"><a href="http://www.sec.gov/Archives/edgar/data/1855509/000173112221001640/e3145_ex10-1.htm">Employment Agreement dated as of October 1, 2021 by and between Twin Vee Powercats Co. and Carrie Gunnerson, Effective October 1, 2021 (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed on July 26, 2021 (File No. 001-40623))</a></span></td></tr>
<tr style="vertical-align: top">
<td style="line-height: 115%; font-size: 10pt"><span style="font: 10pt Times New Roman, Times, Serif">31.1*</span></td>
    <td><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td><span style="font: 10pt Times New Roman, Times, Serif"><a href="e3274_ex31-1.htm">Certification by principal executive officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.</a></span></td></tr>
<tr style="vertical-align: top">
<td style="line-height: 115%; font-size: 10pt"><span style="font: 10pt Times New Roman, Times, Serif">31.2*</span></td>
    <td><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td><span style="font: 10pt Times New Roman, Times, Serif"><a href="e3274_ex31-2.htm">Certification by principal financial officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.</a></span></td></tr>
<tr style="vertical-align: top">
<td style="line-height: 115%; font-size: 10pt"><span style="font: 10pt Times New Roman, Times, Serif">32.1*</span></td>
    <td><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td><span style="font: 10pt Times New Roman, Times, Serif"><a href="e3274_ex32-1.htm">Certification by principal executive officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.</a></span></td></tr>
<tr style="vertical-align: top">
<td style="line-height: 115%; font-size: 10pt"><span style="font: 10pt Times New Roman, Times, Serif">32.2*</span></td>
    <td><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td><span style="font: 10pt Times New Roman, Times, Serif"><a href="e3274_ex32-2.htm">Certification by principal financial officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.</a></span></td></tr>
<tr style="vertical-align: top">
<td style="line-height: 115%; font-size: 10pt"><span style="font: 10pt Times New Roman, Times, Serif">101.INS*</span></td>
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<td style="line-height: 115%; font-size: 10pt"><span style="font: 10pt Times New Roman, Times, Serif">Inline XBRL Instance
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<td style="line-height: 115%; font-size: 10pt"><span style="font: 10pt Times New Roman, Times, Serif">Inline XBRL Taxonomy Extension
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<td style="line-height: 115%; font-size: 10pt"><span style="font: 10pt Times New Roman, Times, Serif">Inline XBRL Taxonomy Extension
Label Linkbase Document</span></td></tr>
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<td style="line-height: 115%; font-size: 10pt"><span style="font: 10pt Times New Roman, Times, Serif">Inline XBRL Taxonomy Extension
Presentation Linkbase Document</span></td></tr>
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<td style="line-height: 115%; font-size: 10pt"><span style="font: 10pt Times New Roman, Times, Serif">104</span></td>
    <td><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="line-height: 115%; font-size: 10pt"><span style="font: 10pt Times New Roman, Times, Serif">Cover Page Interactive Data
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<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>




<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&#160;</p>

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<td style="width: 0.25in">*</td>
<td style="text-align: justify">Filed herewith.</td></tr>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b><span id="a_017"></span>SIGNATURES</b></p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>&#160;</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="font: 10pt Times New Roman, Times, Serif"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td colspan="2" style="font: 10pt Times New Roman, Times, Serif"><span style="font: 10pt Times New Roman, Times, Serif"><b>TWIN
VEE POWERCATS CO.</b></span></td></tr>
<tr style="vertical-align: bottom">
<td style="font: 10pt Times New Roman, Times, Serif; width: 50%"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; width: 5%"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif; width: 45%"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr style="vertical-align: bottom">
<td style="font: 10pt Times New Roman, Times, Serif"><span style="font: 10pt Times New Roman, Times, Serif">Date: November 15,
2021</span></td>
<td style="font: 10pt Times New Roman, Times, Serif"><span style="font: 10pt Times New Roman, Times, Serif">By:&#160;</span></td>
<td style="border-bottom: windowtext 1pt solid; font: 10pt Times New Roman, Times, Serif"><span style="font: 10pt Times New Roman, Times, Serif">/s/
Joseph C. Visconti</span></td></tr>
<tr style="vertical-align: bottom">
<td style="font: 10pt Times New Roman, Times, Serif"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif"><span style="font: 10pt Times New Roman, Times, Serif">Joseph C. Visconti</span></td></tr>
<tr style="vertical-align: bottom">
<td style="font: 10pt Times New Roman, Times, Serif"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif"><span style="font: 10pt Times New Roman, Times, Serif"><i>Chairman and Chief
Executive Officer</i></span></td></tr>
<tr style="vertical-align: bottom">
<td style="font: 10pt Times New Roman, Times, Serif"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif"><span style="font: 10pt Times New Roman, Times, Serif"><i>(Principal Executive
Offi cer)</i></span></td></tr>
<tr style="vertical-align: bottom">
<td style="font: 10pt Times New Roman, Times, Serif"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr style="vertical-align: bottom">
<td style="font: 10pt Times New Roman, Times, Serif"><span style="font: 10pt Times New Roman, Times, Serif">Date: November 15,
2021</span></td>
<td style="font: 10pt Times New Roman, Times, Serif"><span style="font: 10pt Times New Roman, Times, Serif">By:</span></td>
<td style="border-bottom: windowtext 1pt solid; font: 10pt Times New Roman, Times, Serif"><span style="font: 10pt Times New Roman, Times, Serif">/s/&#160;Carrie
Gunnerson</span></td></tr>
<tr style="vertical-align: bottom">
<td style="font: 10pt Times New Roman, Times, Serif"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif"><span style="font: 10pt Times New Roman, Times, Serif">Carrie Gunnerson</span></td></tr>
<tr style="vertical-align: bottom">
<td style="font: 10pt Times New Roman, Times, Serif"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif"><span style="font: 10pt Times New Roman, Times, Serif"><i>Chief Financial
Officer</i></span></td></tr>
<tr style="vertical-align: bottom">
<td style="font: 10pt Times New Roman, Times, Serif"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="font: 10pt Times New Roman, Times, Serif"><span style="font: 10pt Times New Roman, Times, Serif"><i>(Principal Financial
and Accounting Officer)</i></span></td></tr>
</table>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0">46</p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p>

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
10-Q
(Mark One)
☒
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period
ended
September 30, 2021
OR
☐
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _______________
to _______________
Commission file number:
001-40623
TWIN VEE POWERCATS CO.
(Exact Name of Registrant as Specified in
Its Charter)
Delaware
(State or Other Jurisdiction of
Incorporation or Organization)
27-1417610
(I.R.S. Employer
Identification
No.)
3101 S US-1 Ft. Pierce
,
Florida
(Address
of Principal Executive Offices)
34982
(Zip Code)
(772)
429-2525
(Registrant's Telephone Number, including
Area Code)
Securities registered pursuant to Section 12(b) of
t
he Act:
Title
of each class
Trading
Symbol(s)
Name
of each exchange on which registered
Common
Stock, par value $0.001 per share
VEEE
The
Nasdaq
Stock Market, LLC
(The Nasdaq Capital Market)
Indicate
by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required
to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes
☐
No ☒ Registrant became subject to such filing requirements on July 20, 2021.
Indicate
by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant
to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter
period that the registrant was required to submit such files).
Yes
☒
No
☐
Indicate
by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting
company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer"
"smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated
filer
☐
Accelerated
filer
☐
Non-accelerated filer
☒
Smaller reporting
company
☒
Emerging growth
company
☒
If
an emerging growth company indicate by check mark if the registrant has elected not to use the extended transition period for
complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange
Act.
☐
Indicate
by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes
☐
No
☒
As
of November 15, 2021, there were [
7,000,000
] shares
of Common Stock, $0.001 par value per share, outstanding.
Table of Contents
TWIN VEE POWERCATS CO.
TABLE OF CONTENTS
Page No.
PART I—FINANCIAL
INFORMATION
Item 1.
Financial Statements (Unaudited)
3
Condensed Consolidated Balance Sheets as of September 30, 2021 (Unaudited) and December 31, 2020
3
Condensed Consolidated Statements of Operations (Unaudited) for the Three and Nine months ended September 30, 2021 and 2020
4
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) for the Three and Nine months ended September 30, 2021 and 2020
5
Condensed Consolidated Statements of Cash Flows (Unaudited) for the Nine months ended September 30, 2021 and 2020
6
Notes to the Condensed Consolidated Financial Statements (Unaudited)
7
Item 2.
Management's Discussion and Analysis of Financial Condition and Results of Operations
18
Item 3.
Quantitative and Qualitative Disclosures About Market Risk
25
Item 4.
Controls and Procedures
26
PART II—OTHER
INFORMATION
Item 1.
Legal Proceedings
27
Item 1A.
Risk Factors
27
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
44
Item 3.
Defaults Upon Senior Securities
44
Item 4.
Mine Safety Disclosures
44
Item 5.
Other Information
44
Item 6.
Exhibits
45
SIGNATURES
46
Table of Contents
FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q contains
forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities
Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements,
other than statements of historical facts, contained in this Quarterly Report on Form 10-Q, including statements regarding
our strategy, future operations, future financial position, future revenues, projected costs, prospects, plans and objectives of
management, are forward-looking statements. The words "anticipate," "believe," "estimate,"
"expect," "intend," "may," "plan," "predict," "project,"
"target," "potential," "will," "would," "could," "should,"
"continue" and similar expressions are intended to identify forward-looking statements, although not all forward-looking
statements contain these identifying words.
T
he forward-looking
statements contained in this
Quarterly Report on Form 10-Q
are based on assumptions that
we have made in light of our industry experience and our perceptions of historical trends, current conditions, expected future
developments, and other factors we believe are appropriate under the circumstances. As you read and consider this
Quarterly
Report on Form 10-Q
, you should understand that these statements are not guarantees of performance
or results. They involve risks, uncertainties (many of which are beyond our control), and assumptions. Although we believe that
these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect our actual
operating and financial performance and cause our performance to differ materially from the performance anticipated in the forward-looking
statements. We believe these factors include, but are not limited to, those described under "Risk Factors" and "Management's
Discussion and Analysis of Financial Condition and Results of Operations." Should one or more of these risks or uncertainties
materialize, or should any of these assumptions prove incorrect, our actual operating and financial performance may vary in material
respects from the performance projected in these forward-looking statements
. Therefore, actual results may differ materially
and adversely from those expressed in any forward-looking statements.
As a result of these and other factors, we
may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not
place undue reliance on our forward-looking statements. We do not assume any obligation to update any forward-looking statements,
whether as a result of new information, future events or otherwise, except as required by law.
NOTE REGARDING COMPANY REFERENCES
Throughout this Quarterly Report on Form 10-Q,
"Twin Vee," "the Company," "we" and "our" refer to Twin Vee PowerCats Co.
Summary Risk Factors
The
following is a summary of the key risks relating to the Company. A more detailed description of each of these risks can be found
below in
Part II—Item 1A. "Risk Factors."
●
General economic conditions, particularly in the U.S., affect our industry,
demand for our products and our business,   and results of operations.
●
The COVID-19 global pandemic and other
natural phenomena.
●
Our ability to meet our manufacturing workforce needs is crucial to
our results of operations and future sales and   profitability.
●
There is limited public information on
our operating history.
●
Interest rates and energy prices affect
product sales
●
Our annual and quarterly financial results are subject to significant
fluctuations depending on various factors, many   of which are beyond our control.
1
Table of Contents
●
We depend on our network of independent dealers,
face increasing competition for dealers and have little control over their activities.
●
Our success depends, in part, upon the financial
health of our dealers and their continued access to financing.
●
Unfavorable weather conditions may have a material adverse effect on
our business, financial condition, and results of operations, especially during the peak boating season.
●
A natural disaster, the effects of climate change, or disruptions at
our manufacturing facility could adversely affect our business, financial condition and results of operations.
●
If we fail to manage our manufacturing levels while still addressing
the seasonal retail pattern for our products, our business and margins may suffer.
●
We have a large, fixed cost base that will
affect our profitability if our sales decrease.
●
We may be required to repurchase inventory
of certain dealers.
●
Termination or interruption of informal supply arrangements could have
a material adverse effect on our business or results of operations.
●
We rely on one manufacturer to supply our
engines and do not have any long terms commitments from such manufacturer
●
Product liability, warranty, personal injury, property damage and recall
claims may materially affect our financial condition and damage our reputation.
●
Significant product repair and/or replacement due to product warranty
claims or product recalls could have a material adverse impact on our results of operations.
●
Demand in the powerboat industry is highly
volatile.
●
General economic conditions, particularly in the U.S., affect our industry,
demand for our products and our business, and results of operations
●
Our industry is characterized by intense
competition, which affects our sales and profits.
●
We have identified weaknesses in our internal controls, and we cannot
provide assurances that these weaknesses will be effectively remediated or that additional material weaknesses will not occur
in the future.
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PART I—FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
TWIN VEE POWERCATS CO, INC.
(F/K/A TWIN VEE CATAMARANS, INC.)
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
September 30,
December 31,
2021
2020
(Note 1)
ASSETS
Current Assets
Cash and cash equivalents
$
8,978,908
$
891,816
Accounts receivable
212,908
—
Marketable securities
2,998,181
—
Inventories
2,451,794
936,676
Due from affiliated companies
306,897
6,100
Prepaid expenses and other current assets
685,163
350
Total Current Assets
15,633,851
1,834,942
Marketable securities – non current
3,092,704
—
Property and equipment, net
2,230,729
1,365,029
Operating lease right of use asset
1,646,700
1,279,595
Security deposit
25,000
25,000
Total Assets
$
22,628,984
$
4,504,566
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable
$
1,687,745
$
799,280
Accrued liabilities
492,205
142,936
Contract liability
162,637
6,784
Warranty reserve
75,000
75,000
Note payable - related party
—
27,850
Due to affiliated companies
115,043
92,843
Operating lease right of use liability
364,822
295,374
Total Current Liabilities
2,897,452
1,440,067
Paycheck Protection Program Loan
608,224
—
Economic Injury Disaster Loan
499,900
499,900
Operating lease liability - noncurrent
1,336,437
1,015,759
Total Liabilities
5,342,013
2,955,726
Commitments and contingencies (Note 10)
Stockholders' equity:
Preferred stock:
10,000,000
authorized; $
0.001
par value;
no
shares issued and outstanding
—
—
Common stock:
50,000,000
authorized; $
0.001
par value;
7,000,000
and
4,000,000
shares issued and outstanding, respectively
7,000
4,000
Additional paid-in capital
18,486,995
2,551,387
Accumulated deficit
(
1,207,024
)
(
1,006,547
)
Total Stockholders' Equity
17,286,971
1,548,840
Total Liabilities and Stockholders' Equity
$
22,628,984
$
4,504,566
The accompanying notes are an integral part
of these unaudited condensed consolidated financial statements
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Table of Contents
TWIN VEE POWERCATS CO, INC.
(F/K/A TWIN VEE CATAMARANS, INC.)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2021
2020
2021
2020
Net sales
$
4,118,246
$
2,498,218
$
10,623,460
$
6,885,679
Cost of products sold
2,508,170
1,798,288
6,209,334
4,321,067
Gross profit
1,610,076
699,930
4,414,126
2,564,612
Operating expenses:
Selling, general and administrative
512,982
251,371
1,090,583
708,893
Salaries and wages
1,222,062
637,993
3,197,476
1,764,592
Research and design
61,091
—
61,091
—
Professional fees
105,384
25,056
217,592
104,519
Depreciation
31,091
33,068
132,089
95,954
Total operating expenses
1,932,610
947,488
4,698,831
2,673,958
Loss from operations
(
322,534
)
(
247,558
)
(
284,705
)
(
109,346
)
Other income (expense):
Other income
148
79,658
148
79,658
Interest expense
(
50,315
)
(
32,624
)
(
85,468
)
(
115,704
)
Loss on disposal of assets
—
—
(
254,600
)
—
Gain from insurance recovery
—
—
434,724
—
Net change in fair value of marketable securities
(
10,576
)
—
(
10,576
)
—
Total other income (expenses)
(
60,743
)
47,034
84,228
(
36,046
)
Net loss
$
(
383,277
)
$
(
200,524
)
$
(
200,477
)
$
(
145,392
)
Basic and dilutive loss per share of common stock
$
(
0.06
)
$
(
0.05
)
$
(
0.04
)
$
(
0.04
)
Weighted average number of shares of common stock outstanding
6,282,700
4,000,000
4,769,200
4,000,000
The accompanying notes are an integral part
of these unaudited condensed consolidated financial statements
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TWIN VEE POWERCATS CO, INC.
(F/K/A TWIN VEE CATAMARANS, INC.)
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS'
EQUITY
(Unaudited)
For the Three and Nine months ended September 30, 2020
Additional
Total
Common Stock
Paid-in
Accumulated
Stockholders'
Shares
Amount
Capital
Deficit
Equity
Balance at December 31, 2019
4,000,000
$
4,000
$
2,289,231
$
(
2,177,624
)
$
115,607
Net income for the period
—
—
—
78,656
78,656
Balance at March 31, 2020
4,000,000
$
4,000
$
2,289,231
$
(
2,098,968
)
$
194,263
Net loss for the period
—
—
—
(
23,524
)
(
23,524
)
Balance at June 30, 2020
4,000,000
$
4,000
$
2,289,231
$
(
2,122,492
)
$
170,739
Net loss for the period
—
—
—
(
200,524
)
(
200,524
)
Balance, September 30, 2020
4,000,000
$
4,000
$
2,289,231
$
(
2,323,016
)
$
(
29,785
)
For the Three and Nine months ended September 30, 2021
Additional
Total
Common
Stock
Paid-in
Accumulated
Stockholders'
Shares
Amount
Capital
Deficit
Equity
Balance
at December 31, 2020
4,000,000
$
4,000
$
2,551,387
$
(
1,006,547
)
$
1,548,840
Net
income for the period
—
—
—
131,949
131,949
Balance
at March 31, 2021
4,000,000
$
4,000
$
2,551,387
$
(
874,598
)
$
1,680,789
Net
income for the period
—
—
—
50,851
50,851
Balance
at June 30, 2021
4,000,000
$
4,000
$
2,551,387
$
(
823,747
)
$
1,731,640
Common
stock issued for cash
3,000,000
3,000
15,849,037
—
15,852,037
Stock-based compensation
—
—
86,571
—
86,571
Net
loss for the period
—
—
—
(
383,277
)
(
383,277
)
Balance,
September 30, 2021
7,000,000
$
7,000
$
18,486,995
$
(
1,207,024
)
$
17,286,971
The accompanying notes are an integral part
of these unaudited condensed consolidated financial statements
5
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TWIN VEE POWERCATS CO, INC.
(F/K/A TWIN VEE CATAMARANS, INC.)
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
(Unaudited)
Nine Months Ended
September 30,
2021
2020
Cash Flows From Operating Activities
Net loss
$
(
200,477
)
$
(
145,392
)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock based compensation
86,571
—
Depreciation and amortization
132,089
95,954
Loss on disposal of asset
224,037
—
Change of ROU and lease liabilities
23,021
23,653
Net change in fair value of marketable securities
10,576
—
Changes in operating assets and liabilities:
Accounts receivable
(
212,908
)
—
Inventories
(
1,515,118
)
(
259,465
)
Prepaid expenses and other current assets
(
684,813
)
(
1,104
)
Accounts payable
888,465
2,973
Accrued liabilities
349,269
(
85,301
)
Contract liabilities
155,853
78,153
Net cash used in operating activities
(
743,435
)
(
290,529
)
Cash Flows From Investing Activities
Net purchases of investment in trading marketable securities
(
6,101,461
)
—
Purchase of property and equipment
(
1,221,826
)
(
177,045
)
Net cash used in investing activities
(
7,323,287
)
(
177,045
)
Cash Flows From Financing Activities
Net proceeds from issuance of common stock
15,852,037
—
Proceeds from Paycheck Protection Program loan
608,224
609,500
Proceeds from EIDL loan
—
499,900
Advances from related parties
33,129
117,406
Repayment to related parties
(
339,576
)
(
647,744
)
Finance lease payments
—
(
60,600
)
Net cash provided by financing activities
16,153,814
518,462
Net change in cash and cash equivalents
8,087,092
50,888
Cash at beginning of period
891,816
215,574
Cash and cash equivalents at end of period
$
8,978,908
$
266,462
Supplemental Cash Flow Information
Cash paid for income taxes
$
—
$
—
Cash paid for interest
$
118,906
$
77,904
Non Cash Investing and Financing Activities
Increase in the right-of-use asset and lease liability
$
655,726
$
1,586,738
The accompanying notes are an integral part
of these unaudited condensed consolidated financial statements
6
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TWIN VEE POWERCATS CO.
(F/K/A TWIN VEE CATAMARANS, INC.)
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
SEPTEMBER 30, 2021
1.
Organization and Summary of Significant
Accounting Policies
Organization
Twin Vee PowerCats Co. ("Twin Vee")
was incorporated as Twin Vee Catamarans, Inc., in the state of Florida, on December 1, 2009. On April 7, 2021, the Company filed
a Certificate of Conversion to register and incorporate in the state of Delaware and changed the company name to Twin Vee PowerCats
Co. The Certificate of Incorporation for Twin Vee PowerCats Co. was also filed on April 7, 2021.
On September 1, 2021, the Company formed Fix
My Boat, Inc., ("Fix My Boat"), a wholly-owned subsidiary. Fix My Boat will utilize a franchise model for marine mechanics
across the country. While Fix My Boat was established, there was no activity through September 30, 2021.
Principles of Consolidation
The accompanying condensed
consolidated financial statements include the accounts of the Company, Twin Vee PowerCats Co. and the wholly owned subsidiary,
Fix My Boat, Inc.
The Company operates
two separate entities. Each of these entities is consolidated. All inter-company accounts and transactions have been eliminated
in consolidation.
Basis of Presentation
The accompanying unaudited condensed consolidated
financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America
("GAAP ") for interim financial statements and with the instructions to Form 10-Q and Rule 8-03 of Regulation
S-X of the United States Securities and Exchange Commission ("SEC"). Accordingly, they do not contain all information
and footnotes required by accounting principles generally accepted in the United States of America for annual financial statements.
In the opinion of the Company's management,
the accompanying unaudited condensed consolidated financial statements contain all the adjustments necessary (consisting only of
normal recurring accruals) to present the financial position of the Company as of September 30, 2021 and the results of operations
and cash flows for the periods presented. The results of operations for the nine months ended September 30, 2021 are not necessarily
indicative of the operating results for the full fiscal year or any future period. These unaudited condensed consolidated financial
statements should be read in conjunction with the financial statements and related notes thereto for the year ended December 31,
2020 included in the Company's Prospectus on Form 424(b)(4) filed with the SEC on July 22, 2021.
Common Stock Split
On May 13, 2021, the Company effected a forty
thousand
(40,000)-for-one
stock split to the shareholder of record as of May 13, 2021. The stock split was in the form
of a common stock dividend of
3,999,900
new shares and all share and per share information has been retroactively adjusted
to reflect the stock split.
Use of Estimates
The preparation of financial statements in
conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses
during the reporting period. Some of these judgments can be subjective and complex, and, consequently, actual results may differ
from these estimates.
7
Table of Contents
Cash and Cash Equivalents
Cash and cash equivalents include all highly
liquid investments with original maturities of three months or less at the time of purchase. On September 30, 2021 and December 31,
2020, the Company had cash and cash equivalents of $
8,978,908
and $
891,816
, respectively.
Concentrations of Credit and Business
Risk
Financial instruments that potentially subject
the Company to concentrations of credit risk primarily consist of trade receivables. Credit risk on trade receivables is mitigated
as a result of the Company's use of trade letters of credit, dealer floor plan financing arrangements, and the geographically
diversified nature of the Company's customer base. The Company minimizes the concentration of credit risk associated with
its cash by maintaining its cash with high quality federally insured financial institutions. However, cash balances in excess of
the Federal Deposit Insurance Corporation ("FDIC") insured limit of $
250,000
are at risk. As of September 30,
2021 and December 31, 2020, the Company had $
8,728,908
and $
641,816
, respectively, in excess of FDIC insured limits.
Marketable Securities
Our investments in debt securities are carried
at either amortized cost or fair value. Investments in debt securities that the Company has the positive intent and ability to
hold to maturity are carried at amortized cost and classified as held-to-maturity. Investments in debt securities that are not
classified as held-to-maturity are carried at fair value and classified as either trading or available-for-sale. Realized and unrealized
gains and losses on trading debt securities as well as realized gains and losses on available-for-sale debt securities are included
in net income.
Revenue Recognition
The Company's revenue is derived primarily
from the sale of boats, motors and trailers to its independent dealers. The Company recognizes revenue when obligations under the
terms of a contract are satisfied and control over promised goods is transferred to the dealer. For the majority of sales, this
occurs when the product is released to the carrier responsible for transporting it to a dealer. The Company typically receives
payment within five business days of shipment. Revenue is measured as the amount of consideration it expects to receive in exchange
for a product. The Company offers dealer incentives that include wholesale rebates, retail rebates and promotions, floor plan reimbursement
or cash discounts, and other allowances that are recorded as reductions of revenues in net sales in the statements of operations.
The consideration recognized represents the amount specified in a contract with a customer, net of estimated incentives the Company
reasonably expects to pay. The estimated liability and reduction in revenue for dealer incentives is recorded at the time of sale.
Subsequent adjustments to incentive estimates are possible because actual results may differ from these estimates if conditions
dictate the need to enhance or reduce sales promotion and incentive programs or if dealer achievement or other items vary from
historical trends. Accrued dealer incentives are included in accrued expenses and other current liabilities in the accompanying
balance sheets.
The Company accounts for revenue in accordance
with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 606
which was adopted at the beginning of fiscal year 2018 using the modified retrospective method. The Company did not recognize any
cumulative-effect adjustment to retained earnings upon adoption as the effect was immaterial.
Payment received for the future sale of a boat
to a customer is recognized as a customer deposit, which is included in contract liabilities on the balance sheet. Customer deposits
are recognized as revenue when control over promised goods is transferred to the customer. During the period ended September 30,
2021 and year ended December 31, 2020, the Company had customer deposits of $
162,637
and $
6,784
, respectively, and is expected
to be recognized as revenue within a one-year period.
8
Table of Contents
Rebates and Discounts
Dealers earn wholesale rebates based on purchase
volume commitments and achievement of certain performance metrics. The Company estimates the amount of wholesale rebates based
on historical achievement, forecasted volume, and assumptions regarding dealer behavior. Rebates that apply to boats already in
dealer inventory are referred to as retail rebates. The Company estimates the amount of retail rebates based on historical data
for specific boat models adjusted for forecasted sales volume, product mix, dealer and consumer behavior, and assumptions concerning
market conditions. The Company also utilizes various programs whereby it offers cash discounts or agrees to reimburse its dealers
for certain floor plan interest costs incurred by dealers for limited periods of time, generally ranging up to nine months.
Shipping and Handling Costs
All manufactured boats are free on board (FOB),
from the Fort Pierce manufacturing plant. Dealers are required to either pick up the boats themselves or contract with a transporter.
Research and Development
The Company expenses research and development
costs relating to new product development as they are incurred. For the nine months ended September 30, 2021 and 2020, research
and development costs amounted to $61,091 and $0, respectively.
Other Revenue Recognition Matters
Dealers generally have no right to return unsold
boats. Occasionally, the Company may accept returns in limited circumstances and at the Company's discretion under its warranty
policy. The Company may be obligated, in the event of default by a dealer, to accept returns of unsold boats under its repurchase
commitment to floor financing providers, who are able to obtain such boats through foreclosure. The repurchase commitment is on
an individual unit basis with a term from the date it is financed by the lending institution through the payment date by the dealer,
generally not exceeding 30 months.
The Company has excluded sales and other taxes
assessed by a governmental authority in connection with revenue-producing activities from the determination of the transaction
price for all contracts. The Company has not adjusted net sales for the effects of a significant financing component because the
period between the transfer of the promised goods and the customer's payment is expected to be one year or less.
Supplier Concentrations
The Company is dependent on the ability of
its suppliers to provide products on a timely basis and on favorable pricing terms. The loss of certain principal suppliers or
a significant reduction in product availability from principal suppliers could have a material adverse effect on the Company. Business
risk insurance is in place to mitigate the business risk associated with sole suppliers for sudden disruptions such as those caused
by natural disasters.
The Company is dependent on third-party equipment
manufacturers, distributors, and dealers for certain parts and materials utilized in the manufacturing process. During the nine
months ended September 30, 2021, the Company purchased all engines for its boats under a supply agreement with a single vendor.
For the nine months ended September 30, 2021, and 2020, total purchases from this vendor were $
2,805,739
and $
1,475,873
, respectively.
2.
Marketable securities
Investments in debt securities that are not
classified as held-to-maturity are carried at fair value and classified as either trading or available-for-sale. Realized and unrealized
gains and losses on trading debt securities as well as realized gains and losses on available-for-sale debt securities are included
in net loss.
9
Table of Contents
The following tables show the Company's
fair value marketable securities by investment category as of September 30, 2021 and December 31, 2020:
September 30,
December 31,
2021
2020
Corporate debt securities
Level 2
$
5,570,483
$
—
Certificates of deposit
Level 2
520,402
—
$
6,090,885
$
—
Level 2 applies to assets or liabilities for
which there are inputs other than quoted prices that are observable for the assets or liability such as quoted prices for similar
assets or liabilities in active markets, quoted prices for identical assets or liabilities in markets with insufficient volume
or infrequent transactions (less active markets), or model-derived valuations in which significant inputs are observable or can
be derived principally from, or corroborated by observable market data.
We classify our marketable securities as trading
securities as of September 30, 2021.
3.
Inventories
At September 30, 2021 and December 31, 2020
inventories consisted of the following:
September 30,
December 31,
2021
2020
Raw Materials
$
2,072,464
$
763,633
Work in Process
288,913
173,043
Finished Product
90,417
—
Total Inventory
$
2,451,794
$
936,676
4.
Property and Equipment
At September 30, 2021 and December 31,
2020, property and equipment consisted of the following:
September 30,
December 31,
2021
2020
Machinery and equipment
$
1,114,290
$
985,862
Furniture and fixtures
1,850
1,850
Leasehold improvements
553,072
228,875
Software and website development
113,120
113,120
Computer hardware and software
67,118
49,967
Boat molds
612,279
126,000
Electric prototypes and tooling
163,696
146,232
2,625,425
1,651,906
Less accumulated depreciation and amortization
(
394,696
)
(
286,877
)
$
2,230,729
$
1,365,029
Depreciation and amortization expense of property
and equipment for the nine months ended September 30, 2021 and 2020 is $
132,089
and $
95,954
, respectively.
10
Table of Contents
5.
Leases – Related Party
Operating right of use ("ROU")
assets and operating lease liabilities are recognized at the lease commencement date. Operating lease liabilities represent the
present value of lease payments not yet paid. Operating right of use assets represent our right to use an underlying asset and
is based upon the operating lease liabilities adjusted for prepayments or accrued lease payments, initial direct costs, lease
incentives, and impairment of operating lease assets. To determine the present value of lease payments not yet paid, we estimate
incremental secured borrowing rates corresponding to the maturities of the leases. We used the U.S. Treasury rate of
0.36
%
and
1.67
% at September 30, 2021 and December 31, 2020, respectively.
Our office lease contains rent escalations
over the lease term. We recognize expense for this office lease on a straight-line basis over the lease term. Additionally,
tenant incentives used to fund leasehold improvements are recognized when earned and reduce our right-of-use asset related to the
lease. These are amortized through the right-of-use asset as reductions of expense over the lease term.
The Company leases its office and warehouse
facilities, and the land which are located at 3101 S US-1, Fort Pierce, Florida (the "Property") from Visconti Holdings,
LLC. Visconti Holdings, LLC is a single member LLC that holds the ownership of the property, and its sole member is Joseph C
Visconti, the CEO and majority shareholder of the Company. The Company entered into the lease on January 1, 2020, and as amended
January 1, 2021, the lease has a term of five
years. The current base rent payment is $
30,000
per
month including property taxes and the lease required a $
25,000
security
deposit. The base rent will increase five percent (5%) on the anniversary of each annual term.
11
Table of Contents
At September 30, 2021 and December 31, 2020,
supplemental balance sheet information related to leases were as follows:
September 30,
December 31,
2021
2020
Operating lease ROU asset
$
1,646,700
$
1,279,595
September 30,
December 31,
2021
2020
Operating lease liabilities:
Current portion
$
364,822
$
295,374
Non-current portion
1,336,437
1,015,759
Total lease liabilities
$
1,701,259
$
1,311,133
At September 30, 2021, future minimum lease
payments under the non-cancelable operating leases are as follows:
Year Ending December 31,
2021 (excluding the nine months ended September 30, 2021)
$
90,000
2022
373,800
2023
396,900
2024
416,745
2025
437,582
Total lease payment
1,715,027
Less imputed interest
(
13,768
)
Total
$
1,701,259
The following summarizes other supplemental information about the
Company's operating lease:
September 30, 2021
Weighted average discount rate
0.36
%
Weighted average remaining lease term (years)
4.25
Nine Months Ended
September 30,
2021
2020
Operating lease cost
$
293,022
$
248,652
Total lease cost
$
293,022
$
248,652
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6.
Accrued Liabilities
At September 30, 2021 and December 31, 2020,
accrued liabilities consisted of the following:
September 30,
December 31,
2021
2020
Accrued wages and benefits
$
254,300
$
60,988
Accrued bonus
68,500
0
Accrued operating expenses
63,131
0
Interest
28,879
62,317
Other
77,395
19,631
Total accrued liabilities
$
492,205
$
142,936
7.
Notes Payable – Paycheck Protection
Program
In response to the coronavirus disease ("Covid-19")
COVID-19 pandemic, the PPP round 2 was established under the Coronavirus Aid, Relief, and Economic Security ("CARES")
Act and administered by the Small Business Administration ("SBA"). Companies who met the eligibility requirements set
forth by the PPP round 2 could qualify for PPP loans. If the loan proceeds are fully utilized to pay qualified expenses, the full
principal amount of the PPP loan, along with any accrued interest, may qualify for loan forgiveness, subject to potential reduction
based on whether the company can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and
2020. The Company has applied for forgiveness.
On March 19, 2021, the Company received a loan
of $
608,224
under the PPP round 2 provided by
SunTrust/Trust Bank.
The
loan bears interest at
1.0
%. No payments are due until the earlier of the application for forgiveness or ten months from the
end of the twenty-four week covered period. The loan and interest would be paid back over a period of 5 years from the loan
origination date if the loan is not forgiven under the terms of the PPP. Funds from the loan may only be used for payroll and other
qualified costs, as defined.
8.
Notes Payable – SBA EIDL Loan
On April 22, 2020, the Company received an
SBA Economic Injury Disaster Loan ("EIDL") in the amount of $
499,900
. The loan is in response to the COVID
-
19
Pandemic. The loan is a
30
-year loan with an interest rate of
3.75
%, monthly payments of $
2,437
to begin April 22,
2022, under the EIDL program, which is administered through the SBA. Under the guidelines of the EIDL, the maximum term is 30 years;
however, terms are determined on a case-by-case basis based on each borrower's ability to repay and carry an interest rate
of 3.75%. The EIDL loan has an initial deferment period wherein no payments are due for twenty-four months from the date of disbursement.
The
EIDL loan may be prepaid by the Company at any time prior to maturity with no prepayment penalties. The proceeds from this loan
must be used solely as working capital to alleviate economic injury caused by the COVID-19 pandemic.
As part
of the EIDL loan, the Company granted the SBA a continuing security interest in and to any and all collateral to secure payment
and performance of all debts, liabilities and obligations of the Company to the SBA under the EIDL loan. The collateral includes
substantially all tangible and intangible personal property of the Company.
13
Table of Contents
A summary of the minimum maturities of term
debt follows for the years ending December 31, 2021.
Year
2021
$
—
2022
1,846
2023
9,459
2024
9,820
2025
10,195
2026 and thereafter
501,566
9.
Related Party Transactions
On December 31, 2018, the Company entered into
a loan and promissory note with Joseph C. Visconti, the CEO and majority shareholder of the Company. The principal amount of the
loan was $
525,500
, together with a simple interest rate of
6
% on the balance of principal remaining unpaid. During the nine
months ended September 30, 2021, the Company repaid $
27,850
. At September 30, 2021 and December 31, 2020, the outstanding amount
of the note payable was $
0
and $
27,850
, respectively.
As discussed in note 5, the Company has leased
its facilities from a company owned by its CEO.
During the nine months ended September 30,
2021, and 2020, the Company had purchases of $
90,417
and $
0
, respectively, from a related party. The Company paid $
90,417
to
our parent company, Twin Vee PowerCats, Inc., to purchase a 36-foot used catamaran boat.
During the nine months ended September 30,
2021, and 2020, the Company received cash of $
33,128
and $
117,406
from its affiliate companies and paid $
339,576
and
$
647,744
to its affiliate companies, respectively.
During nine months ended September 30, 2021,
and 2020, the Company recorded management fees of $
31,500
and $
0
, respectively, paid to its shareholder parent company.
After taking into account the activity described
the balance due to affiliated companies was $
115,043
at September 30,2021.
10.
Commitments and Contingencies
Repurchase Obligations
Under certain conditions, the Company is obligated
to repurchase new inventory repossessed from dealerships by financial institutions that provide credit to the Company's dealers.
The maximum obligation of the Company under such floor plan agreements totaled approximately $
2,844,000
and $
1,790,000
as
of September 30, 2021, and December 31, 2020, respectively. The Company incurred no impact from repurchase events during the
nine months ended September 30, 2021 and year ended December 31, 2020.
COVID-19
The COVID-19 outbreak in the United States
has caused business disruption through mandated and voluntary closings of multiple industries. While disruption is currently expected
to be temporary, there is considerable uncertainty regarding the duration of the closings. The extent to which COVID-19 impacts
future results, which are highly uncertain and cannot be predicted, including new information which may emerge concerning the severity
of the coronavirus and the action to contain it or treat its impact, among others. At this time, the Company cannot estimate with
meaningful precision the potential impact of COVID-19 to its financial and operational results.
14
Table of Contents
Litigation
The Company is currently involved in various
civil litigation in the normal course of business none of which is considered material.
11.
Stockholder's Equity
On April 7, 2021, the Company filed a Certificate
of Incorporation with the Secretary of State of the State of Delaware (see Note 1) which authorizes the Company to issue
50,000,000
shares
of common stock and
10,000,000
shares of preferred stock, each with a par value of $
0.001
.
On May 13, 2021, the Company effected a
forty-thousand
(40,000)-for-one stock split
to the shareholder of record as of May 13, 2021. The stock split was in the form of a common stock
dividend of 3,999,900 new shares and all share and per share information has been retroactively adjusted to reflect the stock split.
On July 23, 2021, the Company, consummated
its initial public offering (the "IPO") of
3,000,000
shares of its common stock ("Shares") at
a public offering price of $
6.00
per Share, generating gross proceeds of $
18,000,000
, which netted to the Company $15,849,037
after offering expenses. The Company had granted the underwriters a 45-day option to purchase up to
450,500
additional
Shares to cover over-allotment., which option expired unexercised.
Common Stock Warrants
As of September 30, 2021, the Company has outstanding
warrants to purchase
3,000,000
shares of common stock issuable at a weighted-average exercise price of $
7.50
per share
that were issued to the representative of the underwriters in connection with the IPO. There was no warrant activity during the
quarter ended September 30, 2021 other than the warrant issuance.
Equity Compensation Plans
The Company maintains
an equity compensation plan under which it may award employees, directors and consultants incentive and non-qualified stock options,
restricted stock, stock appreciation rights and other stock based awards with terms established by the Compensation Committee of
the Board of Directors which has been appointed by the Board of Directors to administer the plans. As of September 30, 2021, there
were $
407,500
shares remaining available for grant under these plans.
Accounting for Stock -Based Compensation
Stock
Compensation Expense
- For the three and nine months ended September 30, 2021, the Company recorded $
86,571
and $
86,571
of stock-based compensation expense, respectively. For the three and nine months ended September 30, 2020, the Company
did not issue any stock-based compensation expense.
Stock
Options
. Under the Company's
2021 Stock Incentive Plan the Company has issued
stock options.
A stock option grant gives the holder the right, but not the obligation to purchase a
certain number of shares at a predetermined price for a specific period of time. The Company typically issues options that vest pro
rata on a monthly basis over 36 months. Under the terms of the Plan, the contractual life of the option grants may not
exceed ten years. During the nine months ended September 30, 2021 and 2020, the Company issued options that expire ten
years from the date of grant.
In July 2021, the Company granted under its 2021 Stock Incentive Plan stock options to
purchase
272,000
shares of the Company's common stock to Joseph Visconti, stock options to purchase
136,000
shares of the Company's common stock to Preston Yarborough, stock options to purchase
68,000
shares of the Company's common stock to Donna Barnett, stock options to purchase
5,500
shares of the Company's common stock to Pete Melvin, stock options to purchase
5,500
shares of the Company's common stock to Neil Ross and stock options to purchase
5,500
shares of the Company's common stock to Steven A. Shallcross. The stock option awards to Mr. Visconti, Mr. Yarborough and Ms.
Barnett vest pro rata on a monthly basis over 36 months, subject to the officer's continuous service to the Company on each
applicable vesting date. The stock option awards to Mr. Melvin, Mr. Ross and Mr. Shallcross vest pro rata on a monthly basis over 12
months, subject to the director's continuous service to the Company on each applicable vesting date. The options are
exercisable for a period of ten
years from the date of grant and have an exercise price of $
5.80
per share.
15
Table of Contents
In August 2021, the Company granted under its
2021 Stock Incentive Plan stock options to purchase 100,000 shares of the Company's common stock to its employees. The stock
option awards to the employees vest on the one (1) year anniversary of the grant date. The options are exercisable for a period
of ten (10) years from the date of grant and have an exercise price of $4.10 per share.
During the nine months ended September 30,
2021, $
86,571
was expensed, and as of September 30, 2021, $1,303,142 remains unamortized and is expected to vest over 34 months.
The intrinsic value of the
592,500
options outstanding as of September 30, 2021 is $
0
.
The
Company utilizes the Black-Scholes model to determine fair value of stock option awards on the date pf grant. The Company utilized
the following assumptions
for option grants during the three and nine months ended September 30,
2021:
Nine Months Ended
September 30,
2021
Expected term
4.94
-
5
years
Expected average volatility
49
%
Expected dividend yield
—
Risk-free interest rate
0.72
–
0.78
%
The expected volatility of the option is determined
using historical volatilities based on historical stock price of comparable boat manufacturing companies. The Company estimated
the expected life of the options granted based upon historical weighted average of comparable boat manufacturing companies. The
risk-free interest rate is determined using the U.S. Department of the Treasury yield curve rates with a remaining term equal to
the expected life of the option. The Company has never paid a dividend, and as such the dividend yield is 0.0%
Options Outstanding
Weighted Average
Number of
Weighted Average
Remaining life
Options
Exercise Price
(years)
Fair value of option
Outstanding, December 31, 2020
—
$
—
—
$
—
Granted
592,500
5.51
10.00
1,389,713
Exercised
—
—
—
—
Forfeited/canceled
—
—
—
—
Outstanding, September 30, 2021
592,500
$
5.51
9.73
$
—
Exercisable options, September 30, 2021
29,194
$
5.80
9.69
13
Major Customers
During the nine months ended September 30,
2021, five
customers had sales of over 10% of our total sales, combined the five customers
represented
67
% of total sales. During the nine months end September 30, 2020, three customers had sales of over 10% of our
total sales, combined the three customers represented
33
% of total sales.
16
Table of Contents
14.
Gain from Insurance recovery
During
May 2021, the Company experienced a thermal event on the electric boat prototype rendering it unusable for further testing. Additionally,
the
Company experienced a building fire in one of the outer storage buildings resulting in the need for demolition. This had no impact
on production as this was an extra storage building not necessary for business operations. The Company recorded a loss on disposal
of asset from fire of $
249,499
and gain from insurance recovery of $
434,724
, during the nine months ended September 30, 2021.
15.
Subsequent Events
Management evaluated all additional events
subsequent to the balance sheet date through to November 14, 2021, the date the condensed consolidated financial statements were
available to be issued, and determined the following items:
On October 1, 2021, Carrie Gunnerson was appointed
Chief Financial Officer of Twin Vee PowerCats Co. In connection with the Board of Directors appointment of Mrs. Gunnerson as Chief
Financial Officer, the Company and Mrs. Gunnerson entered into a five-year employment agreement (the Employment Agreement). The
Employment Agreement provides for an initial annual base salary of $
175,000
and a potential performance bonus of up to 30% of the
base salary as well as severance and other standard employment benefits. As an inducement for Mrs. Gunnerson to join the Company
and as additional compensation, the Board of Directors awarded her options to purchase
136,000
share of the Company's common
stock an exercise price of $
3.87
per share (the Option Agreement). These options vest over a five-year period.
On October 13, 2021, the Company signed a land
purchase agreement give it the right to acquire a 14.5-acre parcel near the waterfront in Fort Pierce, Florida. The terms of the
agreement grant the Company a 60-day due diligence period that ends on December 6. The Company is then provided with 150 days to
accomplish necessary site and zoning approvals before closing on the site.
On October 15, 2021, Electra Power Sprots,
Inc., a wholly owned subsidiary of Twin Vee PowerCats Co., was incorporated in the state of Delaware. On October 29, 2021, the
Company filed a Certificate of Amendment and changed the company name to Forza X1, Inc.
17
Table of Contents
ITEM 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS.
You
should read the following discussion and analysis of our financial condition and results of operations together with our financial
statements and related notes included in this Quarterly Report on Form 10-Q. The following discussion contains forward-looking
statements that involve risks and uncertainties. This discussion may contain forward-looking statements that involve risks and
uncertainties. See "Forward-Looking Statements."
Our actual results and the timing of certain events
could differ materially from those anticipated in these forward-looking statements as a result of certain factors, including those
discussed below and elsewhere in this Quarterly Report on Form 10-Q. This discussion should be read in conjunction with the accompanying
unaudited condensed consolidated financial statements and notes thereto. You should also review the disclosure under the heading
"Risk Factors" in this Quarterly Report on Form 10-Q for a discussion of important factors that could cause our actual
results to differ materially from those anticipated in these forward-looking statements.
OVERVIEW
We are a designer, manufacturer and marketer
of recreational and commercial power catamaran boats. We believe our company has been an innovator in the recreational and commercial
power catamaran industry. We currently have 10 gas-powered models in production ranging in size from our 24-foot, dual engine,
center console to our newly designed 40-foot offshore 400 GFX. Our 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. We employ approximately 115 people, some of whom have been with our company for over twenty years.
Our 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. We believe that the performance, quality, and value of our boats position us to achieve
our goal of increasing our market share and expanding the power catamaran boating market. We primarily sell our boats through a
current network of 13 independent boat dealers in 15 locations across North America and the Caribbean who resell our boats to the
end user Twin Vee customers. We continue recruiting efforts for high quality boat dealers and seek to establish new dealers and
distributors domestically and internationally to distribute our boats as we grow our production and introduce new models.
During the quarter ending September 30, 2021
we shifted our focus from our IPO efforts to expanding our production. As we moved toward our goal of more than doubling production
from one boat a week during the business slowdown in the first half of 2020 due to the COVID pandemic, to four boats per week,
our operating expenses increased. More specifically, our headcount increased as we hired additional production employees and midlevel
managers resulting in higher salaries and wages. We are continuing to employ higher qualified production and administrative staff
to increase our efficiency and quality control. We have spent additional time and resources training employees and implementing
standard operating procedures to not only increase production and top line revenue but to also improve quality and efficiencies.
Another key factor in increasing production is mold development, during the quarter we moved forward with production of our 28-,
34- and 40-foot molds. We are working with third party vendors on the 28 and the 40, but we were able to use internal resources
to develop the 34-foot molds. Adding these molds not only increases our product offering, but also enable us to have more boat
in production at one time, increasing our overall through put. All the aforementioned molds will be completed in the 4
th
quarter, the 34 molds were complete in early October, and we were able to take our first production boat to the Fort Lauderdale
boat show on October 28th.
We also recently launched our wholly owned
subsidiary, Fix My Boat Inc. Fix My Boat, will be the first nationally branded, mobile marine service company utilizing a franchise
model for marine mechanics across the country. We hired, Matt Gustafson, as our VP of Operations, and we are in the process of
establishing our web and ap platforms, as well as setting our standard product offering, our operating procedures, fixed pricing.
18
Table of Contents
Results of Operations
Comparison of the Three Months Ended September 30, 2021 and
2020
The following table provides certain selected financial information
for the periods presented:
Three Months Ended
September 30,
2021
2020
Change
% Change
Net sales
$
4,118,246
$
2,498,218
$
1,620,028
65
%
Cost of products sold
$
2,508,170
$
1,798,288
$
709,882
39
%
Gross profit
$
1,610,076
$
699,930
$
910,146
130
%
Operating expenses
$
1,932,610
$
947,488
$
985,122
104
%
Loss from operations
$
(322,534
)
$
(247,558
)
$
(74,976
)
30
%
Other (expense) income
$
(60,743
)
$
47,034
$
(107,777
)
(229
%)
Net loss
$
(383,277
)
$
(200,524
)
$
(182,703
)
91
%
Net loss per common share: Basic and Diluted
$
(0.06
)
$
(0.05
)
$
(.01
)
20
%
Weighted average number of common shares outstanding: Basic and diluted
6,282,700
4,000,000
Net Sales and Cost Sales
Our net sales increased $1,620,028, or 65%
to $4,118,246 for the three months ended September 30, 2021 from $2,498,218 for the three months ended September 30, 2020. This
increase was due to an increase in the number of boats sold during the three months ended September 30, 2021. The number of our
boats sold during the three months ended September 30,2021 increased 33% over the three months ended September 30, 2020, due to
our increased production plan that we focused on during the third quarter of 2021, enabling us to produce more boats during the
quarter. Additionally, we have increased our sale prices to help offset the increases in operating expenses described below, in
addition to increased costs of product parts and components and our increased inventory that we are maintaining to protect against
supply chain shortages.
Gross Profit
Gross
profits increased by $910,146, or 130% to $1,610,076 for the three months ended September 30,2021 from $699,930 for the three months
ended September 30, 2020. Gross profit as a percentage of sales, for the three months ended September 30, 2021 and 2020 was 39%
and 28% respectively
. In the third quarter of 2020, demand for our product was just starting to strengthen after the initial
impacts of COVID-19, additional discounts were offered to stimulate sales, which impacted our gross profit in the period ending
September 30, 2020.
Total Operating Expenses
Our total operating expenses for the three
months ended September 30, 2021 and 2020 were $1,932,610 and $947,488 respectively. Operating expenses as a percentage of sales
were 47% compared to 38% in the prior year.
Selling, general and administrative expenses
increased by approximately 104%, or $261,611 to $512,982 for the three months ended September 30, 2021, compared to $251,371 for
the three months ended September 30, 2020. The majority of that increase resulted from expenses totaling $162,482 incurred from
being publicly traded company, which we did not incur in the prior period. Directors and officers insurance, filing fees and investor
relations are some of these expenses. We also incurred increases in repairs and maintenance, insurance, EPA compliance and hiring
expenses, totaling approximately $85,000 along with numerous other smaller increases.
19
Table of Contents
Salaries and wages increased by approximately
92%, or $584,069 to $1,222,062 for the three months ended September 30, 2021, compared to $637,993 for the three months ended September
30, 2020. The increase in salaries and wages of $316,000 was the result of aggressively ramping up of production, which required
increasing our production staff and adding mid-level staff. Included in salaries and wages for the three months ended September
30, 2021 was stock based compensation expense of $87,000 due to the issuance of options to employees. We have also offered bonuses
to attain our production goals and have accrued approximately $69,000 for payment of such bonuses during the three months ended
September 30, 2021. Not only were we focused on increasing production during the quarter, but we also dedicated significant resources
during the quarter to completing our 340 GFX molds, which added to overtime wages, which accounted for approximately $38,000 of
the salaries and wages during the quarter. The remaining increase of salaries and wages during the three months ended September
30, 2021 is associated with taxes and benefits.
Engineering expenses increased by $61,091 to
$61,091 for the three months ended September 30, 2021, from $0 for the three months ended September 30, 2020. Part of the use of
proceeds from our IPO, was the development of an electric boat and an electric motor.
Professional fees increased by 321%, or $80,329
to $105,384 for the three months ended September 30, 2021, compared to $25,056 for the three months ended 2020. This increase was
also due to the additional costs we incurred associated with being public. We engaged the services of an outside financial consultant,
as well as an audit firm for quarterly reporting and SEC legal counsel to fulfill our public company reporting obligations.
Depreciation expense for the three months ended
September 30, 2021 remained relatively consistent to the prior year corresponding quarter.
Our other income (expenses) decreased by 229%,
or $107,777 to an expense of $60,743 for the three months ended September 30, 2021, compared to income of $47,034 for the three
months ended, 2020. In 2020 we received a tax refund of $79,658, which we did not receive in 2021, this attributes to approximately
$80,000 of the difference.
Net Loss
Net loss for the three months ended September 30, 2021, and 2020
was $383,277 and $200,524 respectively. We continue to deal with the fallout of the global pandemic, as well as the impact of additional
costs of growth, but are encouraged by our continued increase in revenue. Basic and dilutive loss per share of common stock for
the three months ended September 30, 2021, and 2020 was ($0.06) and ($0.05).
Comparison of the Nine Months Ended September 30, 2021 and
2020
The following table provides certain selected
financial information for the periods presented:
Nine Months Ended
September 30,
2021
2020
Change
% Change
Net sales
$
10,623,460
$
6,885,679
$
3,737,781
54
%
Cost of products sold
$
6,209,334
$
4,321,067
$
1,888,267
44
%
Gross profit
$
4,414,126
$
2,564,612
$
1,849,514
72
%
Operating expenses
$
4,698,831
$
2,673,958
$
2,024,873
76
%
Loss from operations
$
(284,705
)
$
(109,346
)
$
(175,359
)
160
%
Other income (expenses)
$
84,228
$
(36,046
)
$
(120,274
)
(334
%)
Net loss
$
(200,477
)
$
(145,392
)
$
(55,085
)
38
%
Basic and dilutive income per share of common stock
$
(0.04
)
$
(0.04
)
$
0.00
(0
%)
Weighted average number of shares of common stock outstanding
4,769,200
4,000,000
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Table of Contents
Net Sales and Cost Sales
Our
net sales
increased by $3,737,781, or 54% to $10,623,460 for the nine months ended September 30, 2021 from $6,885,679 for
the nine months ended September 30, 2020. We attribute the large increase in net sales to a strengthening economy during 2021 compared
to 2020.During the first half of 2020, we were impacted significantly by COVID-19, during the 3
rd
quarter of 2020 we
started to see a rebound in sales as the economy started to strengthen. The number of our boats sold during the nine months ended
September 30, 2021 increased 37% over the number of our boats sold during the nine months ended September 30, 2020, due not only
to the strengthening economy over 2020, but also our increased production plan that we focused on during the third quarter of 2021.
Additionally, we have increased our sale prices to help offset the increases in operating expenses described below, in addition
to increased costs of product parts and components and our increased inventory that we are maintaining to protect against supply
chain shortages. Our average revenue per unit for the nine months ended September 30, 2021 is up approximately 12% over revenue
per unit for the nine months ended September 30, 2020.
Gross Profit
Gross profit increased by $1,849,514 or 72%
to 4,414,126 for the nine months ended September 30, 2021from $2,564,612 for the nine months ended September 30, 2020. Gross profit
as a percentage of net sales for the nine months ended September 30, 2021, was 42% as compared to 37% for the same period in fiscal
2020.
Total Operating Expenses
Our total operating expenses increased by $2,024,873, or 76% to
$4,698,831 for the nine months ended September 30, 2021from $2,673,958 for the nine months ended September 30, 2020. Operating
expenses as a percentage of sales were 44% and 39% for the nine months ended September 30, 2021, and 2020, respectively.
Selling, general and administrative expenses
increased by 54% or $381,690 to $1,090,583 for the nine months ending September 30, 2021, from $708,893 nine months ending September
30, 2020. A significant portion of the increase, totaling $162,482, resulted from expenses incurred in connection with being a
publicly traded company, which we did not incur in the prior period. Repairs and maintenance increased by approximately $119,000
and our electric consumption also increased by approximately $22,000 for the nine months ending September 30, 2021 compared to
the prior year comparable period due in large part to our production increase.
Salaries and wage increased by 81% or $1,432,884 to $3,197,476 for
the nine months ending September 30, 2021from $1,764,592 for the nine months ending September 30, 2020. Throughout 2021, we have
been aggressively working on increasing production, this included increasing our production staff as well as adding mid-level staff,
increased overtime for employees, resulting in approximately $967,000 of additional salaries and wage expense for the nine months
ending September 30, 2021 as compared to for the nine months ending September 30, 2020. During the nine months ended for the nine
months ending September 30, 2021, we also started accruing year-end bonuses based on employment agreements and milestones, which
accruals couple with bonuses already paid to employees in 2021 account for approximately $230,000 of the increase. Our non- cash
compensation, which resulted from option grants was approximately $87,000 for the nine months ending September 30, 2021. The non-
cash compensation and cash Board fees incurred during the nine months ending September 30, 2021 had not been incurred prior to
our IPO. The remained of the increase is due to associated taxes and benefits resulting from the increase in head count.
Engineering expenses for the nine months ended
September 2021, and 2020 were $61,091 and $0, respectively. Part of the use of proceeds from our IPO, was the development of an
electric boat and an electric motor.
Professional fees for the nine months ended
September 2021 and 2020 were $217,592 compared to $104,519, respectively. This increase is also due to the expenses incurred from
being public. We engaged the services of an outside financial consultant, as well as an audit firm for quarterly reporting and
SEC legal counsel in order to fulfill our public company reporting obligations.
Depreciation expenses for the nine months ended
September 2021 and 2020 were $132,089 and $95,954.
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Our other income (expenses) for the nine months
ended September 30, 2021, and 2020 were $84,228 and ($36,046) respectively. In 2021, we incurred losses on the disposal of assets
which was offset by a gain from insurance recovery, which netted to $180,000, Other income (expenses) for the nine months ended
September 30, 2021was also reduced by approximately $84,000 of interest expense.
Net Loss
Net loss for the nine months ended September
30, 2021, and 2020 was $200,477 and $145,392 respectively.
Liquidity and Capital Resources
A primary source of funds for the nine months
ended September 30, 2021 was net cash received from our initial public offering, and to a lesser extent proceeds from paycheck
protection program loan. Our primary use of cash was related to increasing inventory levels to meet the high level of demand. With
uncertainty on component availability, prolonged lead time and rising prices, we have been bringing in inventory far earlier than
previous years.
The following table provide selected financial
data about us as of September 30, 2021 and December 31,2020.
September 30,
December 31,
2021
2020
Cash and cash equivalents
$
8,978,908
$
891,816
Current assets
$
15,633,851
$
1,834,942
Current liabilities
$
2,897,452
$
1,440,067
Working capital
$
12,765,278
$
394,875
As of September 30, 2021, we had sufficient
cash and cash equivalents to meet ongoing expenses for at least twelve months from the date of the filing of this Quarterly Report
on Form 10-Q. As of September 30, 2021, we had $8,978,908 of cash
and cash equivalents
total
current assets were $15,633,851, total assets were $22,628,984, and our total liabilities were $5,313,134. Liabilities were comprised
of long-term liabilities of $2,444,561, and current liabilities of $2,897,452, which included accounts payable and accrued liabilities
of $2,151,071, warranty reserve of $75,000, contract liability of $162,637, due to affiliated companies of $115,043 and current
portion of operating lease right of use liability of $364,822. As of December 31, 2020, we had $891,816 of cash, total current
assets were $1,834,942, total assets were $4,504,566 and our total current liabilities of $1,440,067 and total liabilities of $2,955,726.
which included long-term operating lease liabilities for the lease of our facility.
Our stockholders' equity increased from
$1,548,840 as of December 31, 2020, to $17,315,850 as of September 30, 2021, as a result of completing our initial public offering.
Accumulated deficit was $1,178,145 as of September
30, 2021 compared to accumulated deficit of $1,006,547 as of December 31, 2020.
Our working capital increased by $12,370,403
from $394,875 as of December 31,2020, as compared to $12,765,278 on September 30, 2021, due primarily to the net proceeds received
from our IPO.
We believe cash, cash equivalents, and cash
from operations will provide sufficient cash to finance operations for at least twelve months from the date of the filing of this
Quarterly Report on Form 10-Q.
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Cash Flow
Three Months Ended
Years Ended
September 30,
December 31,
2021
2020
$ Change
% Change
2020
2019
$ Change
% Change
Cash provided by (used in) operating activities
$
(743,435
)
$
(290,529
)
$
(452,906
)
156
%
$
640,253
$
(152,259
)
$
792,512
(521
%)
Cash used in investing activities
$
(7,323,287
)
$
(177,045
)
$
(7,146,242
)
4,036
%
$
(200,452
)
$
(675,740
)
$
475,288
(70
%)
Cash provided by financing activities
$
16,153,814
$
518,462
$
15,635,352
3,016
%
$
236,441
$
1,019,824
$
(783,383
)
(77
%)
Net Change in Cash
$
8,087,092
$
50,888
$
8,036,204
15,792
%
$
676,242
$
191,825
$
484,417
253
%
Cash Flow from Operating Activities
For
the nine months ended September 30, 2021
, net cash flows used in operating activities was approximately $743,000 compared
to $291,000 used during the nine months ended September 30, 2020. We have increased inventory level by $1,515,118, due to supply
chain delays. that continue to impact lead time and parts availability. Prepaid expenses and other current assets increased by
$685,000, primarily due to Directors and Officers Insurance being paid upfront. Our net loss from operation was approximately $172,000,
which was decreased by non-cash expenses of approximately $476,000, primarily due to depreciation and stock-based compensation.
Cash Flow from Investing Activities
During the nine months ended September 30,
2021, we used approximately $7,323,000 for investment activities, compared to $177,045 used during the nine months ended September
30,2020. Approximately, $6,101,461 was invested in marketable securities and $1,222,000 was used to purchase property and equipment.
The majority of the money for property and equipment was invested into molds for new model boats, approximately $393,000, building
roof repairs and ventilation system improvements of approximately $359,000, new production equipment of approximately $152,000,
and electric boat tooling and prototype expenses of approximately 164,000.
Cash Flows from Financing Activities
For the nine months ended September 30, 2021,
net cash provided by financing activities was approximately $16,154,000, compared to $518,462 during the nine months ended September
30, 2020, primarily consisting of net proceeds from our IPO of $15,852,000, and to a lesser extent from the proceeds of a PPP loan
of approximately $608,000 and $33,000 from repayments of advances from related parties of $33,000, offset by repayment to related
parties of approximately $340,000.
CRITICAL ACCOUNTING POLICIES AND SIGNIFICANT JUDGMENTS AND
ESTIMATES
We believe that several accounting policies
are important to understanding our historical and future performance. We refer to these policies as "critical" because
these specific areas generally require us to make judgments and estimates about matters that are uncertain at the time we make
the estimate, and different estimates—which also would have been reasonable—could have been used, which would have
resulted in different financial results.
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Our management's discussion and analysis
of financial condition and results of operations is based on our condensed consolidated financial statements, which have been prepared
in accordance with U.S. GAAP. The preparation of our condensed consolidated financial statements requires us to make estimates
and judgments that affect the reported amounts of assets, liabilities, revenue and expenses and related disclosure of contingent
assets and liabilities. On an ongoing basis, we evaluate our estimates based on historical experience and make various assumptions,
which management believes to be reasonable under the circumstances, which form the basis for judgments about the carrying values
of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under
different assumptions or conditions.
The notes to our condensed consolidated financial
statements contained herein contain a summary of our significant accounting policies. We consider the following accounting policies
critical to the understanding of the results of our operations:
Revenue Recognition
The Company accounts for revenue in accordance
with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 606
which was adopted at the beginning of fiscal year 2018 using the modified retrospective method. The Company did not recognize any
cumulative-effect adjustment to retained earnings upon adoption as the effect was immaterial.
Payment received for the future sale of a boat
to a customer is recognized as a customer deposit, which is included in contract liabilities on the balance sheet. Customer deposits
are recognized as revenue when control over promised goods is transferred to the customer.
Use of Estimates
The preparation of financial statements in
conformity with accounting principles generally accepted in the United States "U.S. GAAP" requires management to make
estimates and assumptions that affect the amounts reported in the financial statements. Actual results could differ from those
estimates. Included in those estimates are assumptions about allowances for inventory obsolescence, useful life of fixed assets,
warranty reserves and bad-debt reserves.
Inventories
Inventories are stated at the lower of cost
or net realizable value using the first-in, first-out (FIFO) method. Net realizable value is defined as sales price less cost of
completion, disposable and transportation and a normal profit margin. Production costs, consisting of labor and overhead, are applied
to ending finished goods inventories at a rate based on estimated production capacity. Excess production costs are charged to cost
of products sold. Provisions have been made to reduce excess or obsolete inventories to their net realizable value.
Impairment of Long-Lived Assets
Management assesses the recoverability of its
long-lived assets when indicators of impairment are present. If such indicators are present, recoverability of these assets is
determined by comparing the undiscounted net cash flows estimated to result from those assets over the remaining life to the assets'
net carrying amounts. If the estimated undiscounted net cash flows are less than the net carrying amount, the assets would be adjusted
to their fair value, based on appraisal or the present value of the undiscounted net cash flows.
Product Warranty Costs
As required by FASB ASC Topic 460,
Guarantees
,
the Company is including the following disclosure applicable to its product warranties.
The Company accrues for warranty costs based
on the expected material and labor costs to provide warranty replacement products. The methodology used in determining the liability
for warranty cost is based upon historical information and experience. The Company's warranty reserve is calculated as the
gross sales multiplied by the historical warranty expense return rate.
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Leases
The Company adopted FASB Accounting Standards
Update ("ASU") No. 2016-02,
Leases
("Topic 842"), using the modified retrospective adoption
method with an effective date of January 1, 2019. This standard requires all lessees to recognize a right-of-use asset and a lease
liability, initially measured at the present value of the lease payments.
Under Topic 842, the Company applied a dual
approach to all leases whereby the Company is a lessee and classifies leases as either finance or operating leases based on the
principle of whether or not the lease is effectively a financed purchase by the Company. Lease classification is evaluated at the
inception of the lease agreement.
Paycheck Protection Program
U.S. GAAP does not contain authoritative accounting
standards for forgivable loans provided by governmental entities to a for-profit entity. Absent authoritative accounting standards,
interpretative guidance issued and commonly applied by financial statement preparers allows for the selection of accounting policies
amongst acceptable alternatives. Based on the facts and circumstances, the Company determined it most appropriate to account for
the Paycheck Protection Program ("PPP") loan proceeds as an in-substance government grant by analogy to International
Accounting Standards 20 "(IAS 20)",
Accounting for Government Grants and Disclosure of Government Assistance
.
Under the provisions of IAS 20, "a forgivable loan from government is treated as a government grant when there is reasonable
assurance that the entity will meet the terms for forgiveness of the loan." IAS 20 does not define "reasonable assurance";
however, based on certain interpretations, it is analogous to "probable" as defined in FASB ASC Subtopic 450-20-20
under U.S. GAAP, which is the definition the Company has applied to its expectations of PPP loan forgiveness. Under IAS 20, government
grants are recognized in earnings on a systematic basis over the periods in which the Company recognizes costs for which the grant
is intended to compensate (i.e., qualified expenses). Further, IAS 20 permits for the recognition in earnings either (1) separately
under a general heading such as other income, or (2) as a reduction of the related expenses. The Company has elected to recognize
government grant income separately within other income to present a clearer distinction in its financial statements between its
operating income and the amount of net income resulting from the PPP loan and forgiveness.
Income Taxes
In accordance with U.S. GAAP, the Company follows
the guidance in FASB ASC Topic 740,
Accounting for Uncertainty in Income Taxes
. At December 31, 2020, the Company does
not believe it has any uncertain tax positions that would require either recognition or disclosure in the accompanying financial
statements.
Income or loss and credits from the Company
are passed through to the shareholders and reported on the shareholders' income tax returns. As such, there is no provision
for income taxes. If applicable, the Company would recognize interest and penalties associated with tax matters as part of operating
expenses and include accrued interest and penalties with the related tax liability in its financial statements.
OFF-BALANCE SHEET ARRANGEMENTS
We did not have during the periods presented,
and we do not currently have, any off-balance sheet arrangements, as defined under Securities and Exchange Commission rules.
ITEM 3. QUANTITATIVE
AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
We are a smaller reporting company as defined
by Rule 12b-2 of the Exchange Act and are not required to provide the information required under this item.
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ITEM 4. CONTROLS AND PROCEDURES.
Evaluation of Disclosure Controls and Procedures
Our
management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our
disclosure controls and procedures as of September 30, 2021. The term "disclosure controls and procedures," as defined
in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, means controls and other procedures of a company that are
designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange
Act is recorded, processed, summarized and reported, within the time periods specified in the SEC's rules and forms.
Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required
to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to
the company's management, including its principal executive and principal financial officers, or persons performing similar
functions, as appropriate to allow timely decisions regarding required disclosure. We have adopted and maintain disclosure controls
and procedures (as defined Rules 13a-15(e) and 15d-15(e) under the Exchange Act) that are designed to provide reasonable
assurance that information required to be disclosed in the reports filed under the Exchange Act, such as this Quarterly Report
on Form 10-Q, is collected, recorded, processed, summarized, and reported within the time periods specified in the rules of
the SEC. Our disclosure controls and procedures are also designed to ensure that such information is accumulated and communicated
to management to allow timely decisions regarding required disclosure. Management recognizes that any controls and procedures,
no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives and management necessarily
applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Based on the evaluation of
our disclosure controls and procedures as of September 30, 2021, our Chief Executive Officer and Chief Financial Officer concluded
that, as of such a date, our disclosure controls and procedures were not effective at the reasonable assurance level, d
ue
to the material weaknesses in our internal control over financial reporting, as further described below
.
Previously Reported Material Weakness
As disclosed in Part II—Item 1A. "Risk
Factors" contained elsewhere in this Quarterly report on Form 10-Q, we previously identified material weaknesses in our internal
control over financial reporting relating to (i) lack of segregation of duties and (ii) the level of review of our internally prepared
financial statements. In addition, our auditor identified during its testing of our December 20 20 balances an error in inventory
in the approximate amount of $227,000 for the use of the wrong unit of measure for an inventory item which resulted in a misstatement
within inventory and cost of sales. Other errors were also discovered during testing of our December 31, 2019 balances that included
differences between the ledger and supporting schedules relating to inventory, property and equipment, accounts payable, accrued
expenses, additional paid-in capital, revenue, cost of sales, gross margin and general and administrative expenses. As such, the
auditor provided us with a letter stating that our internal controls with respect to the financial close and financial reporting
do not include a sufficient process to reconcile the accounts to supporting records and an independent review process to ensure
U.S. GAAP financial statements are free from error. W
e have determined that these control
deficiencies constituted material weaknesses in our internal control over financial reporting. A material weakness is a deficiency
or combination of deficiencies in our internal control over financial reporting such that there is a reasonable possibility that
a material misstatement of our condensed consolidated financial statements would not be prevented or detected on a timely basis.
These deficiencies could result in additional misstatements to our condensed consolidated financial statements that would be material
and would not be prevented or detected on a timely basis.
Remediation Plan
Management has developed
and is executing a remediation plan to address the previously disclosed material weaknesses. We are actively engaged in the remediation
of each of the outstanding material weaknesses, including the retention of a full-time controller and utilizing the assistance
of outside advisors where appropriate.
To remediate the existing
material weaknesses, additional time is required to demonstrate the effectiveness of the remediation efforts. The material weaknesses
cannot be considered remediated until the applicable remedial controls operate for a sufficient period of time and management has
concluded, through testing, that these controls are operating effectively. As of September 30, 2021, the material weakness has
not been remediated.
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Changes in Internal Control over Financial
Reporting
During the three months ended September 30,
2021, there were no changes in our internal control over financial reporting (as defined in Rules 13a 15(f) and 15d 15(f) of the
Exchange Act) that occurred that have materially affected, or are reasonably likely to materially affect, our internal control
over financial reporting.
PART II—OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS.
From time to time, we may become involved in
legal proceedings or be subject to claims arising in the ordinary course of our business. We are not presently a party to any legal
proceedings that, if determined adversely to us, would individually or taken together have a material adverse effect on our business,
operating results, financial condition or cash flows. Regardless of the outcome, litigation can have an adverse impact on us because
of defense and settlement costs, diversion of management resources and other factors.
ITEM 1A. RISK FACTORS.
Investing in our securities involves a high
degree of risk. You should consider carefully the following risks, together with all the other information in this Quarterly Report
on Form 10-Q, including our condensed consolidated financial statements and notes thereto. If any of the following risks actually
materializes, our operating results, financial condition and liquidity could be materially adversely affected.
RISKS RELATED TO OUR BUSINESS
There is limited public information on
our operating history.
Our limited public operating history makes
evaluating our business and prospects difficult. Although we were formed in 2003, we did not provide public reports on the results
of operations until our 2020 fiscal year. We only have two years of audited financial statements. Your investment decision will
not be made with the same data as would be available as if we had a longer history of public reporting.
Our ability to meet our manufacturing
workforce needs is crucial to our results of operations and future sales and profitability.
We rely on the existence of an available hourly
workforce to manufacture our products. We cannot assure you that we will be able to attract and retain qualified employees to meet
current or future manufacturing needs at a reasonable cost, or at all. For instance, the demand for skilled employees has increased
recently with the low unemployment rates in Florida where we have manufacturing facilities. Also, although none of our employees
are currently covered by collective bargaining agreements, we cannot assure you that our employees will not elect to be represented
by labor unions in the future. Additionally, competition for qualified employees could require us to pay higher wages to attract
a sufficient number of employees. Significant increases in manufacturing workforce costs could materially adversely affect our
business, financial condition or results of operations.
We have a large, fixed cost base that
will affect our profitability if our sales decrease.
The fixed cost levels of operating a powerboat
manufacturer can put pressure on profit margins when sales and production decline. Our profitability depends, in part, on our ability
to spread fixed costs over a sufficiently large number of products sold and shipped, and if we make a decision to reduce our rate
of production, gross or net margins could be negatively affected. Consequently, decreased demand or the need to reduce production
can lower our ability to absorb fixed costs and materially impact our financial condition or results of operations.
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Interest rates and energy prices affect
product sales.
Our products are often financed by our dealers
and retail powerboat consumers, we envision this continuing as we expand our operations and grow our network of distributors. This
may not occur if interest rates meaningfully rise because higher rates increase the borrowing costs and, accordingly, the cost
of doing business for dealers and the cost of powerboat purchases for consumers. Higher energy costs result in increases in operating
expenses at our manufacturing facility and in the expense of shipping products to our dealers. In addition, increases in energy
costs may adversely affect the pricing and availability of petroleum- based raw materials, such as resins and foams that are used
in our products. Also, higher fuel prices may have an adverse effect on demand for our boats, as they increase the cost of ownership
and operation and the pries at which we sell the boats. Therefore, higher interest rates and fuel costs can adversely affect consumers'
decisions relating to recreational powerboating purchases.
Our business
may be materially affected by the COVID-19 Outbreak.
The outbreak of the
novel coronavirus (COVID-19) has and may continue to cause disruptions to our business and operational plans. These disruptions
may include disruptions resulting from (i) shortages of employees, (ii) unavailability of contractors and subcontractors, (iii)
interruption of, or price fluctuations in, supplies from third parties upon which we rely, (iv) restrictions that governments impose
to address the COVID-19 outbreak, and (v) restrictions that we and our contractors and subcontractors impose to ensure the safety
of employees and others. To date, as a result of the COVID-19 pandemic, we have experienced shortages in obtaining the 150 horsepower
motors that are supplied to us by Suzuki Motor of America, Inc., which historically have been used in approximately 15% of our
boats. In addition, we have also been subject to increased prices for materials resulting generally from supply chain shortages.
We also have increased our inventory of parts and components, spending additional funds before we have purchase orders. Continued
delays in our supply chain could adversely impact our production and, in turn, our revenues. Further, it is presently not possible
to predict the extent or durations of these disruptions. These disruptions may have a material adverse effect on our business,
financial condition and results of operations. Such adverse effect could be rapid and unexpected. These disruptions may severely
affect our ability to carry out our business plans for 2021 and 2022.
There are no
assurances that our Small Business Administration Paycheck Protection Program loan will be forgivable in whole or in part.
On March 19, 2021, we received a loan in the
amount of $608,224 under the Small Business Administration Paycheck Protection Program round 2 provided by SunTrust/Trust Bank.
The loan bears interest at 1.0% per year and matures 5 years from the loan origination date. No payments are due until the earlier
of the application for forgiveness or ten months from the end of the twenty-four week covered period. Section 1106 of the CARES
Act as amended by Section 3(c) of the Flexibility Act, allows for all or a portion of the loan to be forgiven, based on certain
criteria being met including that the use of the loan proceeds for qualifying expenses, which include payroll costs, rent, and
utility costs, having no more than 300 employees and us providing sufficient support that we have experienced a 25% reduction in
gross receipts between comparable quarters in 2019 and 2020. Although we believe that we meet the criteria for full loan forgiveness,
the determination of such forgiveness is made by the Small Business Administration, after review of a loan forgiveness application,
which has been completed and submitted. Without formal written approval from the Small Business Administration, we cannot provide
certainty that we will obtain forgiveness of the loan in whole or in part.
Our
annual and quarterly financial results are subject to significant fluctuations depending on various factors, many of which are
beyond our control
.
Our sales and operating results can vary significantly
from quarter to quarter and year to year depending on various factors, many of which are beyond our control. These factors include,
but are not limited to:
●
Seasonal
consumer demand for our products;
●
Discretionary
spending habits;
●
Changes
in pricing in, or the availability of supply in, the powerboat market;
●
Failure
to maintain a premium brand image;
●
Disruption
in the operation of our manufacturing facilities;
●
Variations
in the timing and volume of our sales;
●
The
timing of our expenditures in anticipation of future sales;
●
Sales
promotions by us and our competitors;
●
Changes
in competitive and economic conditions generally;
●
Consumer
preferences and competition for consumers' leisure time;
●
Impact
of unfavorable weather conditions;
●
Changes
in the cost or availability of our labor; and
●
Increased
fuel prices.
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Due to these and other factors, our results
of operations may decline quickly and significantly in response to changes in order patterns or rapid decreases in demand for our
products. We anticipate that fluctuations in operating results will continue in the future.
Unfavorable weather conditions may have
a material adverse effect on our business, financial condition, and results of operations, especially during the peak boating season.
Adverse weather conditions in any year in any
particular geographic region may adversely affect sales in that region, especially during the peak boating season. Sales of our
products are generally stronger just before and during spring and summer, which represent the peak boating months, and favorable
weather during these months generally has a positive effect on consumer demand. Conversely, unseasonably cool weather, excessive
rainfall, reduced rainfall levels, or drought conditions during these periods may close area boating locations or render boating
dangerous or inconvenient, thereby generally reducing consumer demand for our products. Our annual results would be materially
and adversely affected if our net sales were to fall below expected seasonal levels during these periods. We may also experience
more pronounced seasonal fluctuation in net sales in the future as we expand our businesses. There can be no assurance that weather
conditions will not have a material effect on the sales of any of our products.
A
natural disaster, the effects of climate change, or other disruptions at our manufacturing facility could adversely affect our
business, financial condition, and results of operations
.
We rely on the continuous operation of our
only manufacturing facility in Stuart, Florida for the production of our products. Any natural disaster or other serious disruption
to our facility due to fire, flood, earthquake, or any other unforeseen circumstance would adversely affect our business, financial
condition, and results of operations. Changes in climate could adversely affect our operations by limiting or increasing the costs
associated with equipment or fuel supplies. In addition, adverse weather conditions, such as increased frequency and/or severity
of storms, or floods could impair our ability to operate by damaging our facilities and equipment or restricting product delivery
to customers. The occurrence of any disruption at our manufacturing facility, even for a short period of time, may have an adverse
effect on our productivity and profitability, during and after the period of the disruption. These disruptions may also cause personal
injury and loss of life, severe damage to or destruction of property and equipment, and environmental damage. Although we maintain
property, casualty, and business interruption insurance of the types and in the amounts that we believe are customary for the industry,
we are not fully insured against all potential natural disasters or other disruptions to our manufacturing facility.
If
we fail to manage our manufacturing levels while still addressing the seasonal retail pattern for our products, our business and
margins may suffer
.
The seasonality of retail demand for our products,
together with our goal of balancing production throughout the year, requires us to manage our manufacturing and allocate our products
to our dealer network to address anticipated retail demand. Our dealers must manage seasonal changes in consumer demand and inventory.
If our dealers reduce their inventories in response to weakness in retail demand, we could be required to reduce our production,
resulting in lower rates of absorption of fixed costs in our manufacturing and, therefore, lower margins. As a result, we must
balance the economies of level production with the seasonal retail sales pattern experienced by our dealers. Failure to adjust
manufacturing levels adequately may have a material adverse effect on our financial condition and results of operations.
We
depend on our network of independent dealers, face increasing competition for dealers, and have little control over their activities
.
A significant portion of our sales are derived
from our network of independent dealers. We typically manufacture our boats based upon indications of interest received from dealers
who are not contractually obligated to purchase any boats. While our dealers typically have purchased all of the boats for which
they have provided us with indications of interest, it is possible that a dealer could choose not to purchase boats for which it
has provided an indication of interest (e.g., if it were to have reached the credit limit on its floor plan), and as a result we
once experienced, and in the future could experience, excess inventory and costs. For fiscal 2020, our top five dealers accounted
for 33% of our total boats sold. The loss of a significant dealer could have a material adverse effect on our financial condition
and results of operations. The number of dealers supporting our products and the quality of their marketing and servicing efforts
are essential to our ability to generate sales. Competition for dealers among other boat manufacturers continues to increase based
on the quality, price, value, and availability of the manufacturers' products, the manufacturers' attention to customer
service, and the marketing support that the manufacturer provides to the dealers. We face intense competition from other boat manufacturers
in attracting and retaining dealers, affecting our ability to attract or retain relationships with qualified and successful dealers.
Although our management believes that the quality of our products in the performance sport boat industry should permit us to maintain
our relationships with our dealers and our market share position, there can be no assurance that we will be able to maintain or
improve our relationships with our dealers or our market share position. In addition, independent dealers in the boating industry
have experienced significant consolidation in recent years, which could result in the loss of one or more of our dealers in the
future if the surviving entity in any such consolidation purchases similar products from a competitor. A substantial deterioration
in the number of dealers or quality of our network of dealers would have a material adverse effect on our business, financial condition,
and results of operations.
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Our success depends, in part, upon the
financial health of our dealers and their continued access to financing.
Because we sell nearly all of our products
through dealers, their financial health is critical to our success. Our business, financial condition, and results of operations
may be adversely affected if the financial health of the dealers that sell our products suffers. Their financial health may suffer
for a variety of reasons, including a downturn in general economic conditions, rising interest rates, higher rents, increased labor
costs and taxes, compliance with regulations, and personal financial issues.
In addition, our dealers require adequate liquidity
to finance their operations, including purchases of our products. Dealers are subject to numerous risks and uncertainties that
could unfavorably affect their liquidity positions, including, among other things, continued access to adequate financing sources
on a timely basis on reasonable terms. These sources of financing are vital to our ability to sell products through our distribution
network. Access to financing generally facilitates our dealers' ability to purchase boats from us, and their financed purchases
reduce our working capital requirements. If financing were not available to our dealers, our sales and our working capital levels
would be adversely affected.
We
may be required to repurchase inventory of certain dealers
.
Many of our dealers have floor plan financing
arrangements with third-party finance companies that enable the dealers to purchase our products. In connection with these agreements,
we may have an obligation to repurchase our products from a finance company under certain circumstances, and we may not have any
control over the timing or amount of any repurchase obligation nor have access to capital on terms acceptable to us to satisfy
any repurchase obligation. This obligation is triggered if a dealer defaults on its debt obligations to a finance company, the
finance company repossesses the boat, and the boat is returned to us. Our obligation to repurchase a repossessed boat for the unpaid
balance of our original invoice price for the boat is subject to reduction or limitation based on the age and condition of the
boat at the time of repurchase, and in certain cases by an aggregate cap on repurchase obligations associated with a particular
floor plan financing program. To date, we have not been obligated to repurchase any boats under our dealers' floor plan financing
arrangements, and we are not aware of any applicable laws regulating dealer relations which govern our relations with the dealers
or would require us to repurchase any boats. However, there is no assurance that a dealer will not default on the terms of a credit
line in the future. In addition, applicable laws regulating dealer relations may also require us to repurchase our products from
our dealers under certain circumstances, and we may not have any control over the timing or amount of any repurchase obligation
nor have access to capital on terms acceptable to us to satisfy any repurchase obligation. If we were obligated to repurchase a
significant number of units under any repurchase agreement or under applicable dealer laws, our business, operating results and
financial condition could be adversely affected.
We
rely on third-party suppliers in the manufacturing of our boats
.
We depend on third-party suppliers to provide
components and raw materials essential to the construction of our boats. While we believe that our relationships with our current
suppliers are sufficient to provide the materials necessary to meet present production demand, we cannot assure you that these
relationships will continue or that the quantity or quality of materials available from these suppliers will be sufficient to meet
our future needs, irrespective of whether we successfully implement our growth strategy. We expect that our need for raw materials
and supplies will increase. Our suppliers must be prepared to ramp up operations and, in many cases, hire additional workers and/or
expand capacity in order to fulfill the orders placed by us and other customers. Operational and financial difficulties that our
suppliers may face in the future could adversely affect their ability to supply us with the parts and components we need, which
could significantly disrupt our operations.
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Termination
or interruption of informal supply arrangements could have a material adverse effect on our business or results of operations
.
Although we have long term relationships with
many of our suppliers, we do not have any formal agreements with any suppliers for the purchase of parts needed and our purchases
are made on a purchase order basis. We have no binding commitment from our suppliers to supply any specified quantity of materials
needed within any specified time period. In the event that our suppliers receive a large number of orders from other customers,
there is a possibility that they will not be able to support our needs. If any of our current suppliers were to be unable to provide
needed products to us, there can be no assurance that alternate supply arrangements will be made on satisfactory terms. If we need
to enter into supply arrangements on unsatisfactory terms, or if there are any delays to our supply arrangements, it could adversely
affect our business and operating results.
We rely on one manufacturer to supply
our engines and do not have any long terms commitments from such manufacturer.
We currently rely on one manufacturer, Suzuki
Motor of America, Inc. for the supply of our board engines. We do not have any long-term commitments from Suzuki to supply any
specified number of engines and therefore cannot guarantee that there will be adequate supply of our engines. To date, as a result
of the COVID-19 pandemic, we have experienced shortages in obtaining the 150-horsepower motors that are supplied to us by Suzuki
Motor of America, Inc., which historically have been used in approximately 15% of our boats. Although we believe we have sufficient
supply of our other engines, due to supply chain shortages, we may not be able to obtain engines in the future from other manufacturers
if Suzuki Motor of America, Inc. should be unable to satisfy our needs. Suzuki Motor of America, Inc., and other manufacturers
may not be able to provide us with engines in a timely manner due to supply chain shortages and even if other manufacturers are
able to fulfill our engine needs they may not be able to do so at the same price as we currently pay for the engines we install
in our boats, which could result in lower profit margins or us increasing the price of our boats in order to maintain profit margins
which could adversely impact demand for our boats.
Product liability, warranty, personal
injury, property damage and recall claims may materially affect our financial condition and damage our reputation.
We are engaged in a business that exposes us
to claims for product liability and warranty claims in the event our products actually or allegedly fail to perform as expected
or the use of our products results, or is alleged to result, in property damage, personal injury or death. Although we maintain
product and general liability insurance of the types and in the amounts that we believe are customary for the industry, we are
not fully insured against all such potential claims. Our products involve kinetic energy, produce physical motion and are to be
used on the water, factors which increase the likelihood of injury or death. Our products contain Lithium-ion batteries, which
have been known to catch fire or vent smoke and flame, and chemicals which are known to be, or could later be proved to be, toxic
carcinogenic. Any judgment or settlement for personal injury or wrongful death claims could be more than our assets and, even if
not justified, could prove expensive to contest.
We may experience legal claims in excess of
our insurance coverage or claims that are not covered by insurance, either of which could adversely affect our business, financial
condition and results of operations. Adverse determination of material product liability and warranty claims made against us could
have a material adverse effect on our financial condition and harm our reputation. In addition, if any of our products or components
in our products are, or are alleged to be, defective, we may be required to participate in a recall of that product or component
if the defect or alleged defect relates to safety. Any such recall and other claims could be costly to us and require substantial
management attention.
Significant
product repair and/or replacement due to product warranty claims or product recalls could have a material adverse impact on our
results of operations
.
We provide a hull warranty for structural damage
of up to ten years. In addition, we provide a three-year limited fiberglass small parts warranty on all on some small fiberglass
parts and components such as consoles Gelcoat is covered up to one year. Additionally, fiberglass lids, plastic lids, electrical
panels, bilge pumps, aerator pumps or other electrical devices (excluding stereos, depth finders, radar, chart plotters except
for installation if installed by Twin Vee Powercats, Inc.), steering systems, electrical panels, and pumps are covered under a
one-year basic limited systems warranty. Some materials, components or parts of the boat that are not covered by our limited product
warranties are separately warranted by their manufacturers or suppliers. These other warranties include warranties covering engines
purchased from suppliers and other components.
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Our standard warranties require us or our dealers
to repair or replace defective products during such warranty periods at no cost to the consumer. Although we employ quality control
procedures, sometimes a product is distributed that needs repair or replacement. The repair and replacement costs we could incur
in connection with a recall could adversely affect our business. In addition, product recalls could harm our reputation and cause
us to lose customers, particularly if recalls cause consumers to question the safety or reliability of our products.
The nature of our business exposes us
to workers' compensation claims and other workplace liabilities.
Certain materials we use require our employees
to handle potentially hazardous or toxic substances. While our employees who handle these and other potentially hazardous or toxic
materials receive specialized training and wear protective clothing, there is still a risk that they, or others, may be exposed
to these substances. Exposure to these substances could result in significant injury to our employees and damage to our property
or the property of others, including natural resource damage. Our personnel are also at risk for other workplace-related injuries,
including slips and falls. We may in the future be subject to fines, penalties, and other liabilities in connection with any such
injury or damage. Although we currently maintain what we believe to be suitable and adequate insurance in excess of our self-insured
amounts, we may be unable to maintain such insurance on acceptable terms or such insurance may not provide adequate protection
against potential liabilities.
If
we are unable to comply with environmental and other regulatory requirements, our business may be exposed to material liability
and/or fines
.
Our operations are subject to extensive and
frequently changing federal, state, local, and foreign laws and regulations, including those concerning product safety, environmental
protection, and occupational health and safety. Some of these laws and regulations require us to obtain permits and limit our ability
to discharge hazardous materials into the environment. If we fail to comply with these requirements, we may be subject to civil
or criminal enforcement actions that could result in the assessment of fines and penalties, obligations to conduct remedial or
corrective actions, or, in extreme circumstances, revocation of our permits or injunctions preventing some or all of our operations.
In addition, the components of our boats must meet certain regulatory standards, including stringent air emission standards for
boat engines. Failure to meet these standards could result in an inability to sell our boats in key markets, which would adversely
affect our business. Moreover, compliance with these regulatory requirements could increase the cost of our products, which in
turn, may reduce consumer demand.
While we believe that we are in material compliance
with applicable federal, state, local, and foreign regulatory requirements, and hold all licenses and permits required thereunder,
we cannot assure you that we will, at all times, be able to continue to comply with applicable regulatory requirements. Compliance
with increasingly stringent regulatory and permit requirements may, in the future, cause us to incur substantial capital costs
and increase our cost of operations, or may limit our operations, all of which could have a material adverse effect on our business
or financial condition.
As with most boat construction businesses,
our manufacturing processes involve the use, handling, storage, and contracting for recycling or disposal of hazardous substances
and wastes. The failure to manage or dispose of such hazardous substances and wastes properly could expose us to material liability
or fines, including liability for personal injury or property damage due to exposure to hazardous substances, damages to natural
resources, or for the investigation and remediation of environmental conditions. Under environmental laws, we may be liable for
remediation of contamination at sites where our hazardous wastes have been disposed or at our current facility, regardless of whether
our facility is owned or leased or whether the environmental conditions were created by us, a prior owner or tenant, or a third-party.
While we do not believe that we are presently subject to any such liabilities, we cannot assure you that environmental conditions
relating to our prior, existing, or future sites or operations or those of predecessor companies will not have a material adverse
effect on our business or financial condition.
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Our industry is characterized by intense
competition, which affects our sales and profits.
The performance sport boat category and the
powerboat industry as a whole are highly competitive for consumers and dealers. We also compete against consumer demand for used
boats. Competition affects our ability to succeed in both the markets we currently serve and new markets that we may enter in the
future. Competition is based primarily on brand name, price, product selection, and product performance. We compete with several
large manufacturers that may have greater financial, marketing, and other resources than we do and who are represented by dealers
in the markets in which we now operate and into which we plan to expand. We also compete with a variety of small, independent manufacturers.
We cannot assure you that we will not face greater competition from existing large or small manufacturers or that we will be able
to compete successfully with new competitors. Our failure to compete effectively with our current and future competitors would
adversely affect our business, financial condition, and results of operations.
We
face increasing competition for dealers and have little control over their activities
.
We face intense competition from other performance
sport boat manufacturers in attracting and retaining dealers and customers, affecting our ability to attract or retain relationships
with qualified and successful dealers and consumers looking to purchase boats. Although our management believes that the quality
of our products in the boat industry should permit us to maintain our relationships with our dealers and our market share position,
there can be no assurance that we will be able to maintain or improve our relationships with our dealers or our market share position.
In addition, independent dealers in the boating industry have experienced significant consolidation in recent years, which could
result in the loss of one or more of our dealers in the future if the surviving entity in any such consolidation purchases similar
products from a competitor. A substantial deterioration in the number of dealers or quality of our network of dealers would have
a material adverse effect on our business, financial condition, and results of operations.
Our
sales may be adversely impacted by increased consumer preference for other leisure activities or used boats or the supply of new
boats by competitors in excess of demand
.
Our boats are not necessities and in times
of economic hardship, consumers may cease purchasing non-essential items. Demand for our boats may be adversely affected by competition
from other activities that occupy consumers' leisure time and by changes in consumer life style, usage pattern or taste.
Similarly, an overall decrease in consumer leisure time may reduce consumers' willingness to purchase and enjoy our boats.
During the economic downturn that commenced
in 2008, there was a shift in consumer demand toward purchasing more used boats, primarily because prices for used boats are typically
lower than retail prices for new boats. If this were to occur again, it could have the effect of reducing demand among retail purchasers
for our new boats. Also, while we have balanced production volumes for our boats to meet demand, our competitors could choose to
reduce the price of their products, which could have the effect of reducing demand for our new boats. Reduced demand for new boats
could lead to reduced sales by us, which could adversely affect our business, results of operations, and financial condition.
Our sales and profitability depend, in
part, on the successful introduction of new products.
Market acceptance of our products depends on
our technological innovation and our ability to implement technology in our boats. Our sales and profitability may be adversely
affected by difficulties or delays in product development, such as an inability to develop viable or innovative new products. Our
failure to introduce new technologies and product offerings that consumers desire could adversely affect our business, financial
condition, and results of operations. If we fail to introduce new features or those we introduce fail to gain market acceptance,
our bottom line may suffer.
We are developing the Twin 240E, a fully electric
version of our popular 24-foot center console PowerCat. The 240 E will be Twin Vee's first fully electric I/O powertrain
system that will combine an advanced battery pack, converter, high-efficiency motor, and proprietary union assembly between the
transmission, electric motor design, and control software. If we experience delays in the development of the electric I/O powertrain
system for the boat, fail to bring the Twin 240E to market as and when planned or if it fails to gain market acceptance, our bottom
line may also suffer.
In addition, some of our direct competitors
and indirect competitors may have significantly more resources to develop and patent new technologies. It is possible that our
competitors will develop and patent equivalent or superior technologies and other products that compete with ours. They may assert
these patents against us and we may be required to license these patents on unfavorable terms or cease using the technology covered
by these patents, either of which would harm our competitive position and may materially adversely affect our business.
We also cannot be certain that our products
or features have not infringed or will not infringe the proprietary rights of others. Any such infringement could cause third parties,
including our competitors, to bring claims against us, resulting in significant costs and potential damages.
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Our success depends upon the continued
strength of our brand, the value of our brand, and sales of our products could be diminished if we, the consumers who use our products,
or the sports and activities in which our products are used are associated with negative publicity.
We believe that our brand is a significant
contributor to the success of our business and that maintaining and enhancing our brand is important to expanding our consumer
and dealer base. Failure to continue to protect our brand may adversely affect our business, financial condition, and results of
operations. We expect that our ability to develop, maintain and strengthen the Twin Vee brand will also depend heavily on the success
of our marketing efforts. To further promote our brand, we may be required to change our marketing practices, which could result
in substantially increased advertising expenses, including the need to use traditional media such as television, radio and print.
Many of our current and potential competitors have greater name recognition, broader customer relationships and substantially greater
marketing resources than we do. If we do not develop and maintain strong brands, our business, prospects, financial condition and
operating results will be materially and adversely impacted.
Negative publicity, including that resulting
from severe injuries or death occurring in the sports and activities in which our products are used, could negatively affect our
reputation and result in restrictions, recalls, or bans on the use of our products. If the popularity of the sports and activities
for which we design, manufacture, and sell products were to decrease as a result of these risks or any negative publicity, sales
of our products could decrease, which could have an adverse effect on our net sales, profitability, and operating results. In addition,
if we become exposed to additional claims and litigation relating to the use of our products, our reputation may be adversely affected
by such claims, whether or not successful, including by generating potential negative publicity about our products, which could
adversely impact our business and financial condition.
We may not be able to execute our manufacturing
strategy successfully, which could cause the profitability of our products to suffer.
Our manufacturing strategy is designed to improve
product quality and increase productivity, while reducing costs and increasing flexibility to respond to ongoing changes in the
marketplace. To implement this strategy, we must be successful in our continuous improvement efforts, which depend on the involvement
of management, production employees, and suppliers. Any inability to achieve these objectives could adversely impact the profitability
of our products and our ability to deliver desirable products to our consumers.
We may need to raise additional capital that may be required
to grow our business, and we may not be able to raise capital on terms acceptable to us or at all.
Operating our business
and maintaining our growth efforts will require significant cash outlays and advance capital expenditures and commitments. Although
the proceeds of our initial public offering should be sufficient to fund our operations, if cash on hand and cash generated from
operations and from our initial public offering are not sufficient to meet our cash requirements, we will need to seek additional
capital, potentially through debt or equity financings, to fund our growth. We cannot assure you that we will be able to raise
needed cash on terms acceptable to us or at all. Financings may be on terms that are dilutive or potentially dilutive to our stockholders,
and the prices at which new investors would be willing to purchase our securities may be lower than the price per share of our
common stock in our initial public offering. The holders of new securities may also have rights, preferences or privileges which
are senior to those of existing holders of common stock. If new sources of financing are required, but are insufficient or unavailable,
we will be required to modify our growth and operating plans based on available funding, if any, which would harm our ability to
grow our business.
If we fail to manage future growth effectively,
we may not be able to market or sell our products successfully.
Any failure to manage our growth effectively
could materially and adversely affect our business, prospects, operating results and financial condition. We plan to expand our
operations in the near future. Our future operating results depend to a large extent on our ability to manage this expansion and
growth successfully. Risks that we face in undertaking this expansion include:
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●
training
new personnel;
●
forecasting
production and revenue;
●
expanding
our marketing efforts, including the marketing of a new powertrain that we intend to develop;
●
controlling
expenses and investments in anticipation of expanded operations;
●
establishing
or expanding design, manufacturing, sales and service facilities;
●
implementing
and enhancing administrative infrastructure, systems and processes; and
●
addressing
new markets.
We intend to continue to hire a number of additional
personnel, including design and manufacturing personnel and service technicians for our electric boats and powertrains. Competition
for individuals with experience designing, manufacturing and servicing electric boats is intense, and we may not be able to attract,
assimilate, train or retain additional highly qualified personnel in the future. The failure to attract, integrate, train, motivate
and retain these additional employees could seriously harm our business and prospects.
The loss of one or
a few customers could have a material adverse effect on us.
A few customers have
in the past, and may in the future, account for a significant portion of our revenues in any one year or over a period
of several consecutive years. For example, during the nine months ended September 30, 2021 two dealers represented 23% of our sales.
The loss of business from a significant customer could have a material adverse effect on our business, financial condition, results
of operations and cash flows.
We
depend upon our executive officers and we may not be able to retain them and their knowledge of our business and technical expertise
would be difficult to replace
.
Our future success will depend in significant
part upon the continued service of our executive officers. We cannot assure you that we will be able to continue to attract or
retain such persons. We do not have an insurance policy on the life of our chief executive officer, and we do not have "key
person" life insurance policies for any of our other officers or advisors. The loss of the technical knowledge and management
and industry expertise of any of our key personnel could result in delays in product development, loss of customers and sales and
diversion of management resources, which could adversely affect our operating results.
Certain of our shareholders have sufficient
voting power to make corporate governance decisions that could have a significant influence on us and the other stockholders.
Our parent company currently owns approximately
57.14% of our outstanding common stock. Our Chief Executive Officer is the Chief Executive Officer of our parent company and a
member of its board of directors in addition to owning 56.14% of the outstanding common stock of our parent company. As a result,
our Chief Executive Officer does and will have significant influence over our management and affairs and over matters requiring
stockholder approval, including the election of directors and approval of significant corporate transactions. In addition, this
concentration of ownership may delay or prevent a change in our control and might affect the market price of our common stock,
even when a change in control may be in the best interest of all stockholders. Furthermore, the interests of this concentration
of ownership may not always coincide with our interests or the interests of other stockholders. Accordingly, our Chief Executive
Officer could cause us to enter into transactions or agreements that we would not otherwise consider.
We
may attempt to grow our business through acquisitions or strategic alliances and new partnerships, which we may not be successful
in completing or integrating
.
We may in the future enter into acquisitions,
such as our current search for a waterfront property and the 14.5 acre parcel for which we have an option to acquire pursuant to
the land purchase agreement we executed in October 2021, and strategic alliances that will enable us to acquire complementary skills
and capabilities, offer new products, expand our consumer base, enter new product categories or geographic markets, and obtain
other competitive advantages. We cannot assure you, however, that we will identify acquisition candidates or strategic partners
that are suitable to our business, obtain financing on satisfactory terms, complete acquisitions or strategic alliances, or successfully
integrate acquired operations into our existing operations. Once integrated, acquired operations may not achieve anticipated levels
of sales or profitability, or otherwise perform as expected. Acquisitions also involve special risks, including risks associated
with unanticipated challenges, liabilities and contingencies, and diversion of management attention and resources from our existing
operations. Similarly, our partnership with leading franchises from other industries to market our products or with third-party
technology providers to introduce new technology to the market may not achieve anticipated levels of consumer enthusiasm and acceptance,
or achieve anticipated levels of sales or profitability, or otherwise perform as expected.
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We rely on network and information systems
and other technologies for our business activities and certain events, such as computer hackings, viruses or other destructive
or disruptive software or activities may disrupt our operations, which could have a material adverse effect on our business, financial
condition and results of operations.
Network and information systems and other technologies
are important to our business activities and operations. Network and information systems-related events, such as computer hackings,
cyber threats, security breaches, viruses, or other destructive or disruptive software, process breakdowns or malicious or other
activities could result in a disruption of our services and operations or improper disclosure of personal data or confidential
information, which could damage our reputation and require us to expend resources to remedy any such breaches. Moreover, the amount
and scope of insurance we maintain against losses resulting from any such events or security breaches may not be sufficient to
cover our losses or otherwise adequately compensate us for any disruptions to our businesses that may result, and the occurrence
of any such events or security breaches could have a material adverse effect on our business and results of operations. The
risk of these systems-related events and security breaches occurring has intensified, in part because we maintain certain information
necessary to conduct our businesses in digital form stored on cloud servers. While we develop and maintain systems seeking to prevent
systems-related events and security breaches from occurring, the development and maintenance of these systems is costly and requires
ongoing monitoring and updating as technologies change and efforts to overcome security measures become more sophisticated. Despite
these efforts, there can be no assurance that disruptions and security breaches will not occur in the future. Moreover, we may
provide certain confidential, proprietary and personal information to third parties in connection with our businesses, and while
we obtain assurances that these third parties will protect this information, there is a risk that this information may be compromised.
Likewise, data privacy breaches by employees
or others with permitted access to our systems may pose a risk that sensitive data may be exposed to unauthorized persons or to
the public. While we have invested in protection of data and information technology, there can be no assurance that our efforts
will prevent breakdowns or breaches in our systems that could adversely affect our business. The occurrence of any of such network
or information systems-related events or security breaches could have a material adverse effect on our business, financial condition
and results of operations.
Intellectual Property Risks
A significant
portion of our intellectual property is not protected through patents or formal copyright registration. As a result, we do not
have the full benefit of patent or copyright laws to prevent others from replicating our products, product candidates and brands.
We have not protected
our intellectual property rights through patents or formal copyright registration, and we do not currently have any patent applications
pending other than our new patent application that we filed for our propulsion system being developed. There can be no assurance
that any patent will issue or if issued that the patent will protect our intellectual property. As a result, we may not be able
to protect our intellectual property and trade secrets or prevent others from independently developing substantially equivalent
proprietary information and techniques or from otherwise gaining access to our intellectual property or trade secrets. In such
an instance, our competitors could produce products that are nearly identical to ours resulting in us selling less products or
generating less revenue from our sales.
Confidentiality agreements with employees
and others may not adequately prevent disclosure of trade secrets and other proprietary information.
We rely on trade secrets, know-how and technology,
which are not protected by patents, to protect the intellectual property behind our electric powertrain and for the construction
of our boats. We have recently begun to use confidentiality agreements with our collaborators, employees, consultants, outside
collaborators and other advisors to protect our proprietary technology and processes. We intend to use such agreements in the future,
but these agreements may not effectively prevent disclosure of confidential information and may not provide an adequate remedy
in the event of unauthorized disclosure of confidential information. In addition, others may independently discover trade secrets
and proprietary information, and in such cases, we could not assert any trade secret rights against such party. Costly and time-consuming
litigation could be necessary to enforce and determine the scope of our proprietary rights, and failure to obtain or maintain trade
secret protection could adversely affect our competitive business position.
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We may need to defend ourselves against patent, copyright
or trademark infringement claims, which may be time-consuming and would cause us to incur substantial costs.
The status of the protection of our intellectual
property is unsettled as we do not have any issued patents, registered trademarks or registered copyrights for most of our intellectual
property and other than one patent application, we have not applied for the same. Companies, organizations or individuals, including
our competitors, may hold or obtain patents, trademarks or other proprietary rights that would prevent, limit or interfere with
our ability to make, use, develop, sell or market our powerboats and electric powertrains or use third-party components, which
could make it more difficult for us to operate our business. From time to time, we may receive communications from third parties
that allege our products or components thereof are covered by their patents or trademarks or other intellectual property rights.
Companies holding patents or other intellectual property rights may bring suits alleging infringement of such rights or otherwise
assert their rights. If we are determined to have infringed upon a third party's intellectual property rights, we may be
required to do one or more of the following:
●
cease making, using, selling or offering to sell processes, goods or services that incorporate or use the third-party intellectual property;
●
pay substantial damages;
●
seek a license from the holder of the infringed intellectual property right, which license may not be available on reasonable terms or at all;
●
redesign our boats or other goods or services to avoid infringing the third-party intellectual property;
●
establish and maintain alternative branding for our products and services; or
●
find-third providers of any part or service that is the subject of the intellectual property claim.
In the event of a successful claim of infringement
against us and our failure or inability to obtain a license to the infringed technology or other intellectual property right, our
business, prospects, operating results and financial condition could be materially adversely affected. In addition, any litigation
or claims, whether or not valid, could result in substantial costs, negative publicity and diversion of resources and management
attention.
Risks Related to Our Industry
Demand in the powerboat industry is highly
volatile.
Volatility of demand in the powerboat industry,
especially for recreational powerboats and electric powerboats, may materially and adversely affect our business, prospects, operating
results and financial condition. The markets in which we will be competing have been subject to considerable volatility in demand
in recent periods. Demand for recreational powerboat and electric powerboat sales depends to a large extent on general, economic
and social conditions in a given market. Historically, sales of recreational powerboats decrease during economic downturns. We
have fewer financial resources than more established powerboat manufacturers to withstand adverse changes in the market and disruptions
in demand.
General
economic conditions, particularly in the U.S., affect our industry, demand for our products and our business, and results of operations
.
Demand for premium boat brands has been significantly
influenced by weak economic conditions, low consumer confidence, high unemployment, and increased market volatility worldwide,
especially in the U.S. In times of economic uncertainty and contraction, consumers tend to have less discretionary income and tend
to defer or avoid expenditures for discretionary items, such as our products. Sales of our products are highly sensitive to personal
discretionary spending levels. Our business is cyclical in nature and its success is impacted by economic conditions, the overall
level of consumer confidence and discretionary income levels. Any substantial deterioration in general economic conditions that
diminishes consumer confidence or discretionary income may reduce our sales and materially adversely affect our business, financial
condition and results of operations. We cannot predict the duration or strength of an economic recovery, either in the U.S. or
in the specific markets where we sell our products. Corporate restructurings, layoffs, declines in the value of investments and
residential real estate, higher gas prices, higher interest rates, and increases in federal and state taxation may each materially
adversely affect our business, financial condition, and results of operations.
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Consumers often finance purchases of our products.
Although consumer credit markets have improved, consumer credit market conditions continue to influence demand, especially for
boats, and may continue to do so. There continue to be fewer lenders, tighter underwriting and loan approval criteria, and greater
down payment requirements than in the past. If credit conditions worsen, and adversely affect the ability of consumers to finance
potential purchases at acceptable terms and interest rates, it could result in a decrease in the sales of our products.
Global economic
conditions could materially adversely impact demand for our products and services.
Our operations and
performance depend significantly on economic conditions. Global financial conditions continue to be subject to volatility arising
from international geopolitical developments and global economic phenomenon, as well as general financial market turbulence, including
a significant recent market reaction to the novel coronavirus (COVID-19), resulting in a significant reduction in many major market
indices. Uncertainty about global economic conditions could result in material adverse effects on our business, results of operations
or financial condition. Access to public financing and credit can be negatively affected by the effect of these events on U.S.
and global credit markets. The health of the global financing and credit markets may affect our ability to obtain equity or debt
financing in the future and the terms at which financing, or credit is available to us. These instances of volatility and market
turmoil could adversely affect our operations and the trading price of our common shares resulting in:
●
customers postponing purchases of our products
and services in response to tighter credit, unemployment, negative financial news and/or declines in income or asset values and
other macroeconomic factors, which could have a material negative effect on demand for our products and services; and
●
third-party suppliers being unable to produce
parts and components for our products in the same quantity or on the same timeline or being unable to deliver such parts and components
as quickly as before or subject to price fluctuations, which could have a material adverse effect on our production or the cost
of such production.
Risks Relating to Ownership of our Common
Stock
Terms of subsequent financings may adversely
impact your investment.
We may have to engage in common equity, debt,
or preferred stock financing in the future. Your rights and the value of your investment in our securities could be reduced. Interest
on debt securities could increase costs and negatively impacts operating results. Preferred stock could be issued in series from
time to time with such designation, rights, preferences, and limitations as needed to raise capital. The terms of preferred stock
could be more advantageous to those investors than to the holders of common shares. In addition, if we need to raise more equity
capital from the sale of common shares, institutional or other investors may negotiate terms at least as, and possibly more, favorable
than the terms of your investment. Common shares which we sell could be sold into any market which develops, which could adversely
affect the market price.
If securities analysts do not publish
research or reports about our company, or if they issue unfavorable commentary about us or our industry or downgrade our common
stock, the price of our common stock could decline.
The trading market for our common stock will
depend in part on the research and reports that third-party securities analysts publish about our company and our industry. We
may be unable or slow to attract research coverage and if one or more analysts cease coverage of our company, we could lose visibility
in the market. In addition, one or more of these analysts could downgrade our common stock or issue other negative commentary about
our company or our industry. As a result of one or more of these factors, the trading price of our common stock could decline.
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The obligations associated with being a public company will
require significant resources and management attention, which may divert from our business operations.
As a result of our initial public offering,
we are subject to the reporting requirements of the Exchange Act and the Sarbanes-Oxley Act. The Exchange Act requires that we
file annual, quarterly, and current reports with respect to our business and financial condition. The Sarbanes-Oxley Act requires,
among other things, that we establish and maintain effective internal controls and procedures for financial reporting. As a result,
we have and will continue to incur significant legal, accounting, and other expenses that we did not previously incur.
We have identified weaknesses in our
internal controls, and we cannot provide assurances that these weaknesses will be effectively remediated or that additional material
weaknesses will not occur in the future.
As a public company, we will be subject to
the reporting requirements of the Exchange Act, and the Sarbanes-Oxley Act. We expect that the requirements of these rules and
regulations will continue to increase our legal, accounting and financial compliance costs, make some activities more difficult,
time consuming and costly, and place significant strain on our personnel, systems and resources.
The Sarbanes-Oxley Act requires, among other
things, that we maintain effective disclosure controls and procedures, and internal control over financial reporting.
We do not yet have effective disclosure controls
and procedures, or internal controls over all aspects of our financial reporting. We are continuing to develop and refine our disclosure
controls and other procedures that are designed to ensure that information required to be disclosed by us in the reports that we
will file with the SEC is recorded, processed, summarized and reported within the time periods specified in SEC rules and in accordance
with GAAP. Our management is responsible for establishing and maintaining adequate internal control over our financial reporting,
as defined in Rule 13a-15(f) under the Exchange Act. We will be required to expend time and resources to further improve our internal
controls over financial reporting, including by expanding our staff. However, we cannot assure you that our internal control over
financial reporting, as modified, will enable us to identify or avoid material weaknesses in the future.
We have identified material weaknesses in our
internal control over financial reporting. A material weakness is a deficiency, or a combination of deficiencies, in internal control
over financial reporting such that there is a reasonable possibility that a material misstatement of our financial statements will
not be prevented or detected on a timely basis. The material weaknesses identified to date include (i) lack of segregation of duties
and (ii) the level of review of our internally prepared financial statements. In addition, our auditor identified during its testing
of our December 31, 2019 balances an error in inventory in the approximate amount of $227,000 for the use of the wrong unit of
measure for an inventory item which resulted in a misstatement within inventory and cost of sales. Other errors were also discovered
during testing of our December 31, 2019 balances that included differences between the ledger and supporting schedules relating
to inventory, property and equipment, accounts payable, accrued expenses, additional paid-in capital, revenue, cost of sales, gross
margin and general and administrative expenses. As such, the auditor provided us with a letter stating that our internal controls
with respect to the financial close and financial reporting do not include a sufficient process to reconcile the accounts to supporting
records and an independent review process to ensure U.S. GAAP financial statements are free from error. Accordingly, our internal
controls over financial reporting were not and have not been designed or operating effectively.
We are expending time and resources to further
improve our internal controls over financial reporting, including by expanding our staff; however we still do not have sufficient
staff for proper segregation of duties . However, we cannot assure you that our internal control over financial reporting, as modified,
will enable us to identify or avoid material weaknesses in the future.
We have not yet retained sufficient staff or
engaged sufficient outside consultants with appropriate experience in GAAP presentation, especially of complex instruments, to
devise and implement effective disclosure controls and procedures, or internal controls. We will be required to expend time and
resources hiring and engaging additional staff and outside consultants with the appropriate experience to remedy these weaknesses.
We cannot assure you that management will be successful in locating and retaining appropriate candidates; that newly engaged staff
or outside consultants will be successful in remedying material weaknesses thus far identified or identifying material weaknesses
in the future; or that appropriate candidates will be located and retained prior to these deficiencies resulting in material and
adverse effects on our business.
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Our current controls and any new controls that
we develop may become inadequate because of changes in conditions in our business, including increased complexity resulting from
our international expansion. Further, weaknesses in our disclosure controls or our internal control over financial reporting may
be discovered in the future. Any failure to develop or maintain effective controls, or any difficulties encountered in their implementation
or improvement, could harm our operating results or cause us to fail to meet our reporting obligations and may result in a restatement
of our financial statements for prior periods. Any failure to implement and maintain effective internal control over financial
reporting could also adversely affect the results of management reports and independent registered public accounting firm audits
of our internal control over financial reporting that we will eventually be required to include in our periodic reports that will
be filed with the SEC. Ineffective disclosure controls and procedures, and internal control over financial reporting could also
cause investors to lose confidence in our reported financial and other information, which would likely have a negative effect on
the market price of our common stock.
Our independent registered public accounting
firm is not required to audit the effectiveness of our internal control over financial reporting until after we are no longer an
"emerging growth company" as defined in the JOBS Act. At such time, our independent registered public accounting firm
may issue a report that is adverse in the event it is not satisfied with the level at which our internal control over financial
reporting is documented, designed or operating. Any failure to maintain effective disclosure controls and internal control over
financial reporting could have a material and adverse effect on our business and operating results and cause a decline in the market
price of our common stock.
Our
failure to achieve and maintain effective internal control over financial reporting in accordance with Section 404 of the Sarbanes-Oxley
Act as a public company could have a material adverse effect on our business and share price
.
Prior to the completion of our initial public
offering, we have not had to independently comply with Section 404(a) of the Sarbanes-Oxley Act. Section 404(a) of the Sarbanes-Oxley
Act requires annual management assessments of the effectiveness of our internal control over financial reporting, starting with
the second annual report that we would expect to file with the SEC. We anticipate being required to meet these standards in the
course of preparing our financial statements as of and for the year ending December 31, 2022, and our management will be required
to report on the effectiveness of our internal control over financial reporting for such year. Additionally, once we are no longer
an emerging growth company, as defined by the JOBS Act, our independent registered public accounting firm will be required pursuant
to Section 404(b) of the Sarbanes-Oxley Act to attest to the effectiveness of our internal control over financial reporting on
an annual basis. The rules governing the standards that must be met for our management to assess our internal control over financial
reporting are complex and require significant documentation, testing, and possible remediation.
Internal control over financial reporting is
a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial
statements in accordance with generally accepted accounting principles. We are in the process of reviewing, documenting, and testing
our internal control over financial reporting, but we are not currently in compliance with, and we cannot be certain when we will
be able to implement, the requirements of Section 404(a). We may encounter problems or delays in implementing any changes necessary
to make a favorable assessment of our internal control over financial reporting. In addition, we may encounter problems or delays
in completing the implementation of any public accounting firm after we cease to be an emerging growth company. If we cannot favorably
assess the effectiveness of our internal control over financial reporting, or if our independent registered public accounting firm
is unable to provide an unqualified attestation report on our internal controls after we cease to be an emerging growth company,
investors could lose confidence in our financial information and the price of our common stock could decline.
Additionally, the existence of any material
weakness or significant deficiency requires management to devote significant time and incur significant expense to remediate any
such material weaknesses or significant deficiencies and management may not be able to remediate any such material weaknesses or
significant deficiencies in a timely manner. The existence of any material weakness in our internal control over financial reporting
could also result in errors in our financial statements that could require us to restate our financial statements, cause us to
fail to meet our reporting obligations, and cause stockholders to lose confidence in our reported financial information, all of
which could materially and adversely affect our business and share price.
For as long as we are an emerging growth
company, we will not be required to comply with certain reporting requirements, including those relating to accounting standards
and disclosure about our executive compensation, that apply to other public companies.
We are an "emerging growth company,"
as defined in Section 2(a) of the Securities Act, as modified by the JOBS Act. As such, we are eligible to take advantage of certain
exemptions from various reporting requirements that are applicable to other public companies that are not "emerging growth
companies," including, but not limited to, (i) not being required to comply with the auditor attestation requirements of
Section 404(b) of the Sarbanes-Oxley Act, (ii) reduced disclosure obligations regarding executive compensation in our periodic
reports and proxy statements, and (iii) exemptions from the requirements of holding a non-binding advisory vote on executive compensation
and of stockholder approval of any golden parachute payments not previously approved. We have elected to adopt these reduced disclosure
requirements. We cannot predict if investors will find our common stock less attractive as a result of our taking advantage of
these exemptions and as a result, there may be a less active trading market for our common stock and our stock price may be more
volatile.
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We could remain an "emerging growth company"
for up to five years or until the earliest of (a) the last day of the first fiscal year in which our annual gross revenues exceed
$1 billion, (b) the date that we become a "large accelerated filer" as defined in Rule 12b-2 under the Exchange Act,
which would occur if the market value of our common stock that is held by non-affiliates exceeds $700 million as of the last business
day of our most recently completed fiscal quarter, and (c) the date on which we have issued more than $1 billion in non-convertible
debt securities during the preceding three-year period.
We are also a "smaller reporting company"
as defined in the Exchange Act, and have elected to take advantage of certain of the scaled disclosures available to smaller reporting
companies. To the extent that we continue to qualify as a "smaller reporting company" as such term is defined in Rule 12b-2
under the Exchange Act, after we cease to qualify as an emerging growth company, certain of the exemptions available to us as an
"emerging growth company" may continue to be available to us as a "smaller reporting company," including
exemption from compliance with the auditor attestation requirements pursuant to SOX and reduced disclosure about our executive
compensation arrangements. We will continue to be a "smaller reporting company" until we have $250 million or
more in public float (based on our common stock) measured as of the last business day of our most recently completed second fiscal
quarter or, in the event we have no public float (based on our common stock) or a public float (based on our common stock) that
is less than $700 million, annual revenues of $100 million or more during the most recently completed fiscal year.
Our common stock price may be volatile
or may decline regardless of our operating performance and you may not be able to resell your shares at or above the initial public
offering price.
It is possible that an active trading market
will not continue or be sustained, which could make it difficult for investors to sell their shares of our common stock at an attractive
price or at all.
Volatility in the market price of our common
stock may prevent investors from being able to sell their shares at or above the price you paid for them. Many factors, which are
outside our control, may cause the market price of our common stock to fluctuate significantly, including those described elsewhere
in this "Risk Factors" section and this prospectus, as well as the following:
●
Our
operating and financial performance and prospects;
●
Our
quarterly or annual earnings or those of other companies in our industry compared to market expectations;
●
Conditions
that impact demand for our products;
●
Future
announcements concerning our business or our competitors' businesses;
●
The
public's reaction to our press releases, other public announcements, and filings with the SEC;
●
The
size of our public float;
●
Coverage
by or changes in financial estimates by securities analysts or failure to meet their expectations;
●
Market
and industry perception of our success, or lack thereof, in pursuing our growth strategy;
●
Strategic
actions by us or our competitors, such as acquisitions or restructurings;
●
Changes
in laws or regulations that adversely affect our industry or us;
●
Changes
in accounting standards, policies, guidance, interpretations, or principles;
●
Changes
in senior management or key personnel;
●
Issuances,
exchanges or sales, or expected issuances, exchanges or sales of our capital stock;
●
Changes
in our dividend policy;
●
Adverse
resolution of new or pending litigation against us; and
●
Changes in general market, economic, and political conditions in the
U.S. and global economies or financial   markets, including those resulting from natural disasters, terrorist attacks, acts
of war, and responses to such events.
As a result, volatility in the market price
of our common stock may prevent investors from being able to sell their common stock at or above the initial public offering price
or at all. These broad market and industry factors may materially reduce the market price of our common stock, regardless of our
operating performance. In addition, price volatility may be greater if the public float and trading volume of our common stock
is low. As a result, investors may suffer a loss on your investment.
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Additionally, recently, securities of certain
companies have experienced significant and extreme volatility in stock price due to short sellers of shares of common stock,
known as a "short squeeze." These short squeezes have caused extreme volatility in those companies and in the market
and have led to the price per share of those companies to trade at significantly inflated rates that is disconnected from the underlying
value of the company. Many investors who have purchased shares in those companies at an inflated rate face the risk of losing a
significant portion of their original investment as the price per share has declined steadily as interest in those stocks have
abated. While we have no reason to believe our shares would be the target of a short squeeze, there can be no assurance that we
won't be in the future, and investors may lose a significant portion or all of their investment if you purchase our shares
at a rate that is significantly disconnected from our underlying value.
We do not intend to pay dividends on
our common stock for the foreseeable future.
We presently have no intention to pay dividends
on our common stock at any time in the foreseeable future. Any decision to declare and pay dividends in the future will be made
at the discretion of our board of directors and will depend on, among other things, our results of operations, financial condition,
cash requirements, contractual restrictions, and other factors that our board of directors may deem relevant. Furthermore, our
ability to declare and pay dividends may be limited by instruments governing future outstanding indebtedness we may incur.
FINRA sales practice requirements may limit your ability to
buy and sell our common shares, which could depress the price of our shares.
FINRA rules require broker-dealers to have
reasonable grounds for believing that an investment is suitable for a customer before recommending that investment to the customer.
Prior to recommending speculative low-priced securities to their non-institutional customers, broker-dealers must make reasonable
efforts to obtain information about the customer's financial status, tax status and investment objectives, among other things.
Under interpretations of these rules, FINRA believes that there is a high probability such speculative low-priced securities will
not be suitable for at least some customers. Thus, FINRA requirements may make it more difficult for broker-dealers to recommend
that their customers buy our common shares, which may limit an investors ability to buy and sell our shares, have an adverse effect
on the market for our shares and, thereby, depress their market prices.
Volatility in our common shares price
may subject us to securities litigation.
The market for our common shares may have,
when compared to seasoned issuers, significant price volatility, and we expect that our share price may continue to be more volatile
than that of a seasoned issuer for the indefinite future. In the past, plaintiffs have often initiated securities class action
litigation against a company following periods of volatility in the market price of its securities. We may, in the future, be the
target of similar litigation. Securities litigation could result in substantial costs and liabilities and could divert management's
attention and resources.
We
have broad discretion in the use of the net proceeds from
our initial public offering and may not use them
effectively.
Our management has broad discretion in the
application of the net proceeds from our initial public offering, and investors do not have the opportunity to assess whether the
net proceeds are being used appropriately. Because of the number and variability of factors that will determine our use of the
net proceeds from our initial public offering, their ultimate use may vary substantially from their initial intended use. The failure
by our management to apply those funds effectively could harm our business.
Provisions in our corporate charter documents
and under Delaware law could make an acquisition of our company, which may be beneficial to our stockholders, more difficult and
may prevent attempts by our stockholders to replace or remove our current management.
Provisions in our corporate charter and our
bylaws may discourage, delay or prevent a merger, acquisition or other change in control of our company that stockholders may consider
favorable, including transactions in which you might otherwise receive a premium for your shares. These provisions could also limit
the price that investors might be willing to pay in the future for shares of our common stock, thereby depressing the market price
of our common stock. In addition, because our board of directors is responsible for appointing the members of our management team,
these provisions may frustrate or prevent any attempts by our stockholders to replace or remove our current management by making
it more difficult for stockholders to replace members of our board of directors. Among other things, these provisions:
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●
our
board of directors is divided into three classes, one class of which is elected each year by our stockholders with the directors
in each class to serve for a three-year term;
●
the
authorized number of directors can be changed only by resolution of our board of directors;
●
directors
may be removed only by the affirmative vote of the holders of at least sixty percent (60%) of our voting stock, whether for cause
or without cause;
●
our
bylaws may be amended or repealed by our board of directors or by the affirmative vote of sixty-six and two-thirds percent (66
2/3%) of our stockholders;
●
stockholders
may not call special meetings of the stockholders or fill vacancies on the board of directors;
●
our
board of directors will be authorized to issue, without stockholder approval, preferred stock, the rights of which will be determined
at the discretion of the board of directors and that, if issued, could operate as a "poison pill" to dilute the stock
ownership of a potential hostile acquirer to prevent an acquisition that our board of directors does not approve;
●
our
stockholders do not have cumulative voting rights, and therefore our stockholders holding a majority of the shares of common stock
outstanding will be able to elect all of our directors; and
●
our
stockholders must comply with advance notice provisions to bring business before or nominate directors for election at a stockholder
meeting.
Moreover, because we are incorporated in Delaware,
we are governed by the provisions of Section 203 of the Delaware General Corporation Law, which prohibits a person who owns in
excess of 15% of our outstanding voting stock from merging or combining with us for a period of three years after the date of the
transaction in which the person acquired in excess of 15% of our outstanding voting stock, unless the merger or combination is
approved in a prescribed manner.
Our Certificate of Incorporation provides
that the Court of Chancery of the State of Delaware will be the exclusive forum for certain types of state actions that may be
initiated by our stockholders, which could limit our stockholders' ability to obtain a favorable judicial forum for disputes
with us or our directors, officers, or employees
Our Certificate of Incorporation provides that,
unless we consent to the selection of an alternative forum, the Court of Chancery of the State of Delaware is the exclusive forum
for (i) any derivative action or proceeding brought on behalf of us, (ii) any action asserting a claim of breach of a fiduciary
duty owed by any of our directors, officers, or other employees to us or our stockholders, (iii) any action arising pursuant to
any provision of the DGCL or our certificate of incorporation or bylaws (as either may be amended from time to time), or (iv) any
action asserting a claim governed by the internal affairs doctrine. The exclusive forum provision does not apply to suits brought
to enforce any liability or duty created by the Securities Act or the Exchange Act or any other claim for which the federal courts
have exclusive jurisdiction. To the extent that any such claims may be based upon federal law claims, Section 27 of the Exchange
Act creates exclusive federal jurisdiction over all suits brought to enforce any duty or liability created by the Exchange Act
or the rules and regulations thereunder. Furthermore, Section 22 of the Securities Act creates concurrent jurisdiction for federal
and state courts over all suits brought to enforce any duty or liability created by the Securities Act or the rules and regulations
thereunder.
These exclusive-forum provisions may limit
a stockholder's ability to bring a claim in a judicial forum that it finds favorable for disputes with us or our directors,
employees, control persons, underwriters, or agents, which may discourage lawsuits against us and our directors, employees, control
persons, underwriters, or agents. Additionally, a court could determine that the exclusive forum provision is unenforceable, and
our stockholders will not be deemed to have waived our compliance with the federal securities laws and the rules and regulations
thereunder. If a court were to find these provisions of our bylaws inapplicable to, or unenforceable in respect of, one or more
of the specified types of actions or proceedings, we may incur additional costs associated with resolving such matters in other
jurisdictions, which could adversely affect our business, financial condition, or results of operations.
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ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE
OF PROCEEDS.
(a)
Unregistered Sales of Equity Securities.
None.
(c)
Use of Proceeds.
On July 22, 2021, we closed our initial public
offering pursuant to which we offered and sold 3,000,000 shares of our common stock at an offering price of $6.00 per share (for
aggregate gross proceeds of $18,000,000), pursuant to our Registration Statement on Form S-1 (as amended) (File No. 333-255134),
which was declared effective by the SEC on July 20, 2021, as amended by the Registration Statement on Form S-1 MEF (File No. 333-258058)
filed with the SEC on July 20, 2021 and effective as of the date of filing. After deducting underwriting discounts and commissions
of approximately $1,260,000, and other offering expenses payable by us of approximately $1,567,150, we received approximately $15,849,037
in net proceeds from our initial public offering. ThinkEquity, a division of Fordham Financial Management, Inc. acted as the representative
of the several underwriters for the offering.
We also granted a 45-day option to the representative
of the underwriters to purchase up to 450,000 additional shares of common stock solely to cover over-allotments, if any, which
expired unexercised.
There has been no material change in the planned
use of proceeds from our initial public offering as described in our final prospectus, dated July 20, 2021, which was filed with
the SEC on July 22, 2021 pursuant to Rule 424(b) under the Securities Act. The primary use of the net proceeds from our initial
public offering continues to be, as follows: (i) approximately $1,500,000 for production and marketing of our larger fully equipped
boats. Due to their size, the larger boats will require us to acquire specialized equipment such as overhead cranes and industrial
grade gantry systems to lift and move the boats, engines and load the boats on extra-large custom designed boat trailers; (ii)
approximately $2,500,000 for the design, development, testing, manufacturing and marketing of our new line of electric boats; (iii)
approximately $6,000,000 for the design, development, testing, manufacturing and marketing of our fully electric propulsion system;
(iv) approximately $3,500,000 for acquisition of waterfront property and development of the Electra Power Sports- EV Innovation
& Testing Center, in Fort Pierce, Florida to build, design and manufacture our electric propulsion systems and (v) the balance
for working capital.
No payments were made by us to directors, officers
or persons owning ten percent or more of our common stock or to their associates, or to our affiliates, other than payments in
the ordinary course of business to officers for salaries. Pending the uses described, we have invested the net proceeds in our
operating cash account.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES.
Not Applicable.
ITEM 4. MINE SAFETY DISCLOSURES.
Not Applicable.
ITEM 5. OTHER INFORMATION.
None.
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ITEM 6. EXHIBITS.
The exhibits filed as part of this Quarterly
Report on Form 10-Q are set forth on the Exhibit Index. The Exhibit Index is incorporated herein by reference.
EXHIBIT INDEX
Exhibit
No.
Description
1.1
Underwriting Agreement between Twin Vee PowerCats Co. and ThinkEquity, a division of Fordham Financial Management, Inc. (incorporated by reference to Exhibit 1.1 to the Current Report on Form 8-K filed with the Securities and Exchange Commission on July 26, 2021 (File No. 001-40623))
3.1
Articles of Incorporation filed with the Secretary of State of the State of Florida, dated December 1, 2009 (incorporated by reference to Exhibit 3.1 to the Registration Statement on Form S-1 with the Securities and Exchange Commission on April 8, 2021 (File No. 333-255134))
3.2
Articles of Amendment to the Articles of Incorporation, filed with the Secretary of State of the State of Florida on January 22, 2016 (incorporated by reference to Exhibit 3.2 to the Registration Statement on Form S-1 with the Securities and Exchange Commission on April 8, 2021 (File No. 333-255134))
3.3
Articles of Amendment to the Articles of Incorporation, filed with the Secretary of State of the State of Florida on April 12, 2016 (incorporated by reference to Exhibit 3.3 to the Registration Statement on Form S-1 with the Securities and Exchange Commission on April 8, 2021 (File No. 333-255134))
3.4
Article of Conversion filed with the Secretary of State of the State of Florida, dated April 7, 2021 (incorporated by reference to Exhibit 3.4 to the Registration Statement on Form S-1 with the Securities and Exchange Commission on April 8, 2021 (File No. 333-255134))
3.5
Certificate of Conversion filed with the Secretary of State of the State of Delaware on April 7, 2021 (incorporated by reference to Exhibit 3.5 to the Registration Statement on Form S-1 with the Securities and Exchange Commission on April 8, 2021 (File No. 333-255134))
3.6
Certificate of Incorporation filed with the Secretary of State of the State of Delaware on April 7, 2021 (incorporated by reference to Exhibit 3.6 to the Registration Statement on Form S-1 with the Securities and Exchange Commission on April 8, 2021 (File No. 333-255134))
3.7
Bylaws (incorporated by reference to Exhibit 3.7 to the Registration Statement on Form S-1 with the Securities and Exchange Commission on April 8, 2021 (File No. 333-255134))
10.1
Twin Vee Powercats Co. Amended and Restated 2021 Stock Incentive Stock Plan (incorporated by reference to Exhibit 10.2 to the Registration Statement on Form S- 1, filed with the Securities and Exchange Commission on June 2, 2021 (File No. 333-255134))
10.2
Form of Stock Option Grant Notice, Option Agreement (Incentive Stock Option or Nonstatutory Stock Option) and Notice of Exercise under the Amended and Restated 2021 Stock Incentive Plan (incorporated by reference to Exhibit 10.2 to the Registration Statement on Form S-1, filed with the Securities and Exchange Commission on June 2, 2021 (File No. 333-255134)
)
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10.3
Employment Agreement dated as of October 1, 2021 by and between Twin Vee Powercats Co. and Carrie Gunnerson, Effective October 1, 2021 (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed on July 26, 2021 (File No. 001-40623))
31.1*
Certification by principal executive officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*
Certification by principal financial officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*
Certification by principal executive officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*
Certification by principal financial officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS*
Inline XBRL Instance
Document
101.SCH*
Inline XBRL Taxonomy Extension
Schema Document
101.CAL*
Inline XBRL Taxonomy Extension
Calculation Linkbase Document
101.DEF*
Inline XBRL Taxonomy Extension
Definition Linkbase Document
101.LAB*
Inline XBRL Taxonomy Extension
Label Linkbase Document
101.PRE*
Inline XBRL Taxonomy Extension
Presentation Linkbase Document
104
Cover Page Interactive Data
File (the cover page XBRL tags are embedded within the inline XBRL document)
*
Filed herewith.
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
TWIN
VEE POWERCATS CO.
Date: November 15,
2021
By:
/s/
Joseph C. Visconti
Joseph C. Visconti
Chairman and Chief
Executive Officer
(Principal Executive
Offi cer)
Date: November 15,
2021
By:
/s/ Carrie
Gunnerson
Carrie Gunnerson
Chief Financial
Officer
(Principal Financial
and Accounting Officer)
46