Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 24, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2021 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 001-40623 | |
Entity Registrant Name | TWIN VEE POWERCATS CO. | |
Entity Central Index Key | 0001855509 | |
Entity Tax Identification Number | 27-1417610 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 3101 S. US-1 Ft. Pierce | |
Entity Address, City or Town | Florida | |
Entity Address, State or Province | DE | |
Entity Address, Postal Zip Code | 34982 | |
City Area Code | 772 | |
Local Phone Number | 429-2525 | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | VEEE | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | No | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Elected Not To Use the Extended Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 7,000,000 |
CONDENSED BALANCE SHEETS (Unaud
CONDENSED BALANCE SHEETS (Unaudited) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Cash | $ 406,642 | $ 891,816 |
Accounts receivable | 20,540 | |
Inventories | 1,539,514 | 936,676 |
Deferred offering costs | 206,293 | |
Due from affiliated companies | 287,610 | 6,100 |
Prepaid expenses and other current assets | 439,242 | 350 |
Total Current Assets | 2,899,841 | 1,834,942 |
Property and equipment, net | 1,644,984 | 1,365,029 |
Operating lease right of use asset | 1,742,790 | 1,279,595 |
Security deposit | 25,000 | 25,000 |
Total Assets | 6,312,615 | 4,504,566 |
Current Liabilities: | ||
Accounts payable | 1,190,147 | 799,280 |
Accrued liabilities | 114,008 | 142,936 |
Contract liability | 188,978 | 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 | 361,045 | 295,374 |
Total Current Liabilities | 2,044,221 | 1,440,067 |
Paycheck Protection Program Loan | 608,224 | |
Economic Injury Disaster Loan | 499,900 | 499,900 |
Operating lease liability - noncurrent | 1,428,630 | 1,015,759 |
Total Liabilities | 4,580,975 | 2,955,726 |
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; 4,000,000 shares issued and outstanding | 4,000 | 4,000 |
Additional paid-in capital | 2,551,387 | 2,551,387 |
Accumulated deficit | (823,747) | (1,006,547) |
Total Stockholders’ Equity | 1,731,640 | 1,548,840 |
Total Liabilities and Stockholders’ Equity | $ 6,312,615 | $ 4,504,566 |
CONDENSED BALANCE SHEETS (Una_2
CONDENSED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares issued | 4,000,000 | 4,000,000 |
Common stock, shares outstanding | 4,000,000 | 4,000,000 |
CONDENSED STATEMENTS OF OPERATI
CONDENSED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | ||||
Net sales | $ 3,297,571 | $ 1,720,604 | $ 6,505,214 | $ 4,387,461 |
Cost of products sold | 1,981,427 | 1,025,156 | 3,701,164 | 2,522,779 |
Gross profit | 1,316,144 | 695,448 | 2,804,050 | 1,864,682 |
Operating expenses: | ||||
Selling, general and administrative | 278,176 | 173,797 | 577,601 | 457,522 |
Salaries and wages | 1,047,244 | 451,350 | 1,975,414 | 1,126,599 |
Professional fees | 53,182 | 39,060 | 112,208 | 79,463 |
Depreciation | 54,475 | 32,065 | 100,998 | 62,886 |
Total operating expenses | 1,433,077 | 696,272 | 2,766,221 | 1,726,470 |
(Loss) income from operations | (116,933) | (824) | 37,829 | 138,212 |
Other income (expense): | ||||
Interest expense | (17,441) | (22,700) | (35,153) | (83,080) |
Loss on disposal of asset | (249,499) | (254,600) | ||
Gain from insurance recovery | 434,724 | 434,724 | ||
Total other income (expenses) | 167,784 | (22,700) | 144,971 | (83,080) |
Net income (loss) | $ 50,851 | $ (23,524) | $ 182,800 | $ 55,132 |
Basic and dilutive income per share of common stock | $ 0.01 | $ (0.01) | $ 0.05 | $ 0.01 |
Weighted average number of shares of common stock outstanding | 4,000,000 | 4,000,000 | 4,000,000 | 4,000,000 |
CONDENSED STATEMENT OF STOCKHOL
CONDENSED STATEMENT OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Dec. 31, 2019 | $ 4,000 | $ 2,289,231 | $ (2,177,624) | $ 115,607 |
Balance at beginning, shares at Dec. 31, 2019 | 4,000,000 | |||
Net loss for the period | 78,656 | 78,656 | ||
Ending balance, value at Mar. 31, 2020 | $ 4,000 | 2,289,231 | (2,098,968) | 194,263 |
Balacne at ending, shares at Mar. 31, 2020 | 4,000,000 | |||
Net loss for the period | (23,524) | (23,524) | ||
Ending balance, value at Jun. 30, 2020 | $ 4,000 | 2,289,231 | (2,122,492) | 170,739 |
Balacne at ending, shares at Jun. 30, 2020 | 4,000,000 | |||
Beginning balance, value at Dec. 31, 2020 | $ 4,000 | 2,551,387 | (1,006,547) | 1,548,840 |
Balance at beginning, shares at Dec. 31, 2020 | 4,000,000 | |||
Net loss for the period | 131,949 | 131,949 | ||
Ending balance, value at Mar. 31, 2021 | $ 4,000 | 2,551,387 | (874,598) | 1,680,789 |
Balacne at ending, shares at Mar. 31, 2021 | 4,000,000 | |||
Net loss for the period | 50,851 | 50,851 | ||
Ending balance, value at Jun. 30, 2021 | $ 4,000 | $ 2,551,387 | $ (823,747) | $ 1,731,640 |
Balacne at ending, shares at Jun. 30, 2021 | 4,000,000 |
CONDENSED STATEMENTS OF CASH FL
CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash Flows From Operating Activities | ||
Net income | $ 182,800 | $ 55,132 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 100,998 | 62,886 |
Loss on disposal of asset | 224,037 | |
Change of ROU and lease liabilities | 15,347 | 15,768 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (20,540) | |
Inventories | (602,838) | (99,440) |
Prepaid expenses and other current assets | (438,892) | (225) |
Accounts payable | 390,867 | (185,092) |
Accrued liabilities | (28,928) | (97,349) |
Contract liabilities | 182,194 | (66,047) |
Net cash provided by (used in) operating activities | 5,045 | (314,367) |
Cash Flows From Investing Activities | ||
Purchase of property and equipment | (604,990) | (119,692) |
Net cash used in investing activities | (604,990) | (119,692) |
Cash Flows From Financing Activities | ||
Deferred offering costs | (206,293) | |
Proceeds from Paycheck Protection Program loan | 608,224 | 609,500 |
Proceeds from EIDL loan | 499,900 | |
Advances from related parties | 24,300 | 117,406 |
Repayment to related parties | (311,460) | (549,220) |
Finance lease payments | (91,542) | |
Net cash provided by financing activities | 114,771 | 586,044 |
Net change in cash | (485,174) | 151,985 |
Cash at beginning of period | 891,816 | 215,574 |
Cash at end of period | 406,642 | 367,559 |
Supplemental Cash Flow Information | ||
Cash paid for income taxes | ||
Cash paid for interest | 97,470 | 60,332 |
Non Cash Investing and Financing Activities | ||
Increase in the right-of-use asset and lease liability | $ 655,726 | $ 1,586,738 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Summary of Significant Accounting Policies | 1. Organization and Summary of Significant Accounting Policies Organization Twin Vee PowerCats Co. (the “Company”), 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. Basis of Presentation The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP In the opinion of the Company’s management, the accompanying unaudited condensed financial statements contain all the adjustments necessary (consisting only of normal recurring accruals) to present the financial position of the Company as of June 30, 2021 and the results of operations and cash flows for the periods presented. The results of operations for the six months ended June 30, 2021 are not necessarily indicative of the operating results for the full fiscal year or any future period. These unaudited condensed 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 Common Stock Split On May 13, 2021, the Company effected a forty thousand (40,000)-for-one 3,999,900 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. 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 June 30, 2021 and year ended December 31, 2020, the Company had customer deposits of $ 188,978 6,784 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. 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. 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 $ 250,000 156,642 641,816 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 six months ended June 30, 2021, the Company purchased all engines for its boats under a supply agreement with a single vendor. For the six months ended June 30, 2021 and 2020, total purchases from this vendor were $ 1,308,671 812,995 |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | 2. Inventories At June 30, 2021 and December 31, 2020 inventories consisted of the following: Schedule of Inventories June 30, December 31, 2021 2020 Raw materials $ 1,188,273 $ 763,633 Work in process 260,824 173,043 Finished product 90,417 — Total inventory $ 1,539,514 $ 936,676 |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 3. Property and Equipment At June 30, 2021 and December 31, 2020, property and equipment consisted of the following: Schedule of property and equipment June 30, December 31, 2021 2020 Machinery and equipment $ 970,109 $ 985,862 Furniture and fixtures 1,850 1,850 Leasehold improvements 386,441 228,875 Software and website development 113,120 113,120 Computer hardware and software 51,962 49,967 Boat molds 126,000 126,000 New model development 359,108 146,232 2,008,590 1,651,906 Less accumulated depreciation and amortization (363,606 ) (286,877 ) $ 1,644,984 $ 1,365,029 Depreciation and amortization expense of property and equipment for the six months ended June 30, 2021 and 2020 is $ 100,998 62,886 |
Leases _ Related Party
Leases – Related Party | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Leases – Related Party | 4. 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 1.67 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 5 30,000 25,000 At June 30, 2021 and December 31, 2020, supplemental balance sheet information related to leases were as follows: Schedule of leases supplemental balance sheet information June 30, December 31, 2021 2020 Operating lease ROU asset $ 1,742,790 $ 1,279,595 June 30, December 31, 2021 2020 Operating lease liabilities: Current portion $ 361,045 $ 295,374 Non-current portion 1,428,630 1,015,759 Total lease liabilities $ 1,789,675 $ 1,311,133 At June 30, 2021, future minimum lease payments under the non-cancelable operating leases are as follows: Schedule of maturities of lease liabilities Year Ending December 31, 2021 (excluding the six months ended June 30, 2021) $ 180,000 2022 373,800 2023 396,900 2024 416,745 2025 437,582 Total lease payment 1,805,027 Less imputed interest (15,352 ) Total $ 1,789,675 The following summarizes other supplemental information about the Company’s operating lease: Schedule of operating lease cost June 30, 2021 Weighted average discount rate 0.36 % Weighted average remaining lease term (years) 4.50 Six Months Ended June 30, 2021 2020 Operating lease cost $ 195,348 $ 165,768 Total lease cost $ 195,348 $ 165,768 |
Accrued Liabilities
Accrued Liabilities | 6 Months Ended |
Jun. 30, 2021 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | 5. Accrued Liabilities At June 30, 2021 and December 31, 2020, accrued liabilities consisted of the following: June 30, December 31, 2021 2020 Accrued wages and benefits $ 93,267 $ 60,988 Interest — 62,317 Other 20,741 19,631 Total accrued liabilities $ 114,008 $ 142,936 |
Notes Payable _ Paycheck Protec
Notes Payable – Paycheck Protection Program | 6 Months Ended |
Jun. 30, 2021 | |
Notes Payable Paycheck Protection Program | |
Notes Payable – Paycheck Protection Program | 6. 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 will apply for forgiveness when the applications are available. On March 19, 2021, the Company received a loan of $ 608,224 SunTrust/Trust Bank. 1.0 |
Notes Payable _ SBA EIDL Loan
Notes Payable – SBA EIDL Loan | 6 Months Ended |
Jun. 30, 2021 | |
Notes Payable Sba Eidl Loan | |
Notes Payable – SBA EIDL Loan | 7. 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 - 30 3.75 2,437 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. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 8. 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 6 27,850 0 27,850 As discussed in note 4, the Company has leased its facilities from its CEO. During the six months ended June 30, 2021 and 2020, the Company had purchases of $ 90,417 0 90,417 During the six months ended June 30, 2021 and 2020, the Company received cash of $ 24,300 117,406 311,460 549,220 During the six months ended June 30, 2021 and 2020, the Company recorded management fees of $ 21,000 0 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. 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 $ 2,280,000 1,790,000 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. Litigation The Company is currently involved in various civil litigation in the normal course of business none of which is considered material. |
Stockholder_s Equity
Stockholder’s Equity | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Stockholder’s Equity | 10. 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 10,000,000 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. |
Major Customers
Major Customers | 6 Months Ended |
Jun. 30, 2021 | |
Major Customers | |
Major Customers | 11. Major Customers During the six months ended June 30, 2021, five customers had sales of over 10% of our total sales, combined the five customers represented 64 35 |
Gain from Insurance recovery
Gain from Insurance recovery | 6 Months Ended |
Jun. 30, 2021 | |
Gain From Insurance Recovery | |
Gain from Insurance recovery | 12. 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 $ 249,499 434,724 428,865 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | 13. Subsequent Events Management evaluated all additional events subsequent to the balance sheet date through to August 23, 2021, the date the condensed financial statements were available to be issued, and determined the following items: On July 23, 2021, the Company, consummated its initial public offering (the “IPO”) of 3,000,000 6.00 18,000,000 450,500 We currently anticipate using the net proceeds from this offering, together with our existing resources, as follows: (1) production and marketing of our larger fully equipped boats; (2) design, development, testing, manufacturing and marketing of our new line of electric boats; (3) design, development, testing, manufacturing and marketing of our fully electric propulsions system; (4) acquisition and development of waterfront property to be used as a testing center for our boats; and (5) working capital. After the closing of the IPO, the Company granted under its 2021 Stock Incentive Plan stock options to purchase 272,000 136,000 68,000 5,500 5,500 5,500 10 5.80 |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization Twin Vee PowerCats Co. (the “Company”), 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. |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP In the opinion of the Company’s management, the accompanying unaudited condensed financial statements contain all the adjustments necessary (consisting only of normal recurring accruals) to present the financial position of the Company as of June 30, 2021 and the results of operations and cash flows for the periods presented. The results of operations for the six months ended June 30, 2021 are not necessarily indicative of the operating results for the full fiscal year or any future period. These unaudited condensed 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 |
Common Stock Split | Common Stock Split On May 13, 2021, the Company effected a forty thousand (40,000)-for-one 3,999,900 |
Use of Estimates | 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. |
Revenue Recognition | 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 June 30, 2021 and year ended December 31, 2020, the Company had customer deposits of $ 188,978 6,784 |
Rebates and Discounts | 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 | 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. |
Other Revenue Recognition Matters | 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. |
Concentrations of Credit and Business Risk | 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 $ 250,000 156,642 641,816 |
Supplier Concentrations | 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 six months ended June 30, 2021, the Company purchased all engines for its boats under a supply agreement with a single vendor. For the six months ended June 30, 2021 and 2020, total purchases from this vendor were $ 1,308,671 812,995 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Schedule of Inventories June 30, December 31, 2021 2020 Raw materials $ 1,188,273 $ 763,633 Work in process 260,824 173,043 Finished product 90,417 — Total inventory $ 1,539,514 $ 936,676 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | Schedule of property and equipment June 30, December 31, 2021 2020 Machinery and equipment $ 970,109 $ 985,862 Furniture and fixtures 1,850 1,850 Leasehold improvements 386,441 228,875 Software and website development 113,120 113,120 Computer hardware and software 51,962 49,967 Boat molds 126,000 126,000 New model development 359,108 146,232 2,008,590 1,651,906 Less accumulated depreciation and amortization (363,606 ) (286,877 ) $ 1,644,984 $ 1,365,029 |
Leases _ Related Party (Tables)
Leases – Related Party (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Schedule of leases supplemental balance sheet information | Schedule of leases supplemental balance sheet information June 30, December 31, 2021 2020 Operating lease ROU asset $ 1,742,790 $ 1,279,595 June 30, December 31, 2021 2020 Operating lease liabilities: Current portion $ 361,045 $ 295,374 Non-current portion 1,428,630 1,015,759 Total lease liabilities $ 1,789,675 $ 1,311,133 |
Schedule of maturities of lease liabilities | Schedule of maturities of lease liabilities Year Ending December 31, 2021 (excluding the six months ended June 30, 2021) $ 180,000 2022 373,800 2023 396,900 2024 416,745 2025 437,582 Total lease payment 1,805,027 Less imputed interest (15,352 ) Total $ 1,789,675 |
Schedule of operating lease cost | Schedule of operating lease cost June 30, 2021 Weighted average discount rate 0.36 % Weighted average remaining lease term (years) 4.50 Six Months Ended June 30, 2021 2020 Operating lease cost $ 195,348 $ 165,768 Total lease cost $ 195,348 $ 165,768 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | June 30, December 31, 2021 2020 Accrued wages and benefits $ 93,267 $ 60,988 Interest — 62,317 Other 20,741 19,631 Total accrued liabilities $ 114,008 $ 142,936 |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies (Details Narrative) - USD ($) | May 13, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Common Stock Split | (40,000)-for-one | ||
Common stock dividend | 3,999,900 | ||
Customer deposits | $ 188,978 | $ 6,784 | |
FDIC insured limit | 250,000 | ||
FDIC uninsured amount | 156,642 | 641,816 | |
Account payables | $ 1,308,671 | $ 812,995 |
Inventories (Details)
Inventories (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 1,188,273 | $ 763,633 |
Work in process | 260,824 | 173,043 |
Finished product | 90,417 | |
Total inventory | $ 1,539,514 | $ 936,676 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,008,590 | $ 1,651,906 |
Less accumulated depreciation and amortization | (363,606) | (286,877) |
Property and equipment, net | 1,644,984 | 1,365,029 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 970,109 | 985,862 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,850 | 1,850 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 386,441 | 228,875 |
Software Development [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 113,120 | 113,120 |
Computer Hardware And Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 51,962 | 49,967 |
Boat Molds [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 126,000 | 126,000 |
New Model Development [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 359,108 | $ 146,232 |
Property and Equipment (Detai_2
Property and Equipment (Details Narrative) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation and amortization | $ 100,998 | $ 62,886 |
Leases - Related Party (Details
Leases - Related Party (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Operating lease ROU asset | $ 1,742,790 | $ 1,279,595 |
Operating lease liabilities: | ||
Current portion | 361,045 | 295,374 |
Non-current portion | 1,428,630 | 1,015,759 |
Total lease liabilities | $ 1,789,675 | $ 1,311,133 |
Leases - Related Party (Detai_2
Leases - Related Party (Details 2) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Leases [Abstract] | ||
Weighted average discount rate | 0.36% | |
Weighted average remaining lease term (years) | 4 years 6 months | |
Operating lease cost | $ 195,348 | $ 165,768 |
Total lease cost | $ 195,348 | $ 165,768 |
Leases _ Related Party (Details
Leases – Related Party (Details Narrative) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | ||
Interest rate | 0.36% | 1.67% |
Visconti Holdings L L C [Member] | ||
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | ||
Lease term | 5 years | 5 years |
Lease payment | $ 30,000 | |
Security deposit | $ 25,000 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Accrued wages and benefits | $ 93,267 | $ 60,988 |
Interest | 62,317 | |
Other | 20,741 | 19,631 |
Total accrued liabilities | $ 114,008 | $ 142,936 |
Notes Payable _ Paycheck Prot_2
Notes Payable – Paycheck Protection Program (Details Narrative) - P P P Loan [Member] | 1 Months Ended |
Mar. 19, 2021USD ($) | |
Obligation with Joint and Several Liability Arrangement [Line Items] | |
Loan | $ 608,224 |
Interest rate | 1.00% |
Notes Payable _ SBA EIDL Loan (
Notes Payable – SBA EIDL Loan (Details Narrative) - E I D L [Member] | 1 Months Ended |
Apr. 22, 2020USD ($) | |
Obligation with Joint and Several Liability Arrangement [Line Items] | |
Loan amount | $ 499,900 |
Loan term | 30 years |
Interest rate | 3.75% |
Periodic payments | $ 2,437 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | ||||
Repayment of related party debt | $ 311,460 | $ 549,220 | ||
Advances from related parties | 24,300 | 117,406 | ||
Joseph C Visconti [Member] | ||||
Related Party Transaction [Line Items] | ||||
Principal amount | $ 525,500 | |||
Interest rate | 6.00% | |||
Repayment of related party debt | 27,850 | |||
Related party notes payable | 0 | $ 27,850 | ||
Relatedparty [Member] | ||||
Related Party Transaction [Line Items] | ||||
Repayment of related party debt | 311,460 | 549,220 | ||
Purchased from related party | 90,417 | 0 | ||
Advances from related parties | 24,300 | 117,406 | ||
Management fees | 21,000 | $ 0 | ||
Twin Vee Powercats [Member] | ||||
Related Party Transaction [Line Items] | ||||
Repayment of related party debt | $ 90,417 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Commitments and Contingencies Disclosure [Abstract] | ||
Maximum obligation | $ 2,280,000 | $ 1,790,000 |
Stockholder_s Equity (Details N
Stockholder’s Equity (Details Narrative) - $ / shares | Jun. 30, 2021 | Apr. 07, 2021 | Dec. 31, 2020 |
Equity [Abstract] | |||
Common stock, shares authorized | 50,000,000 | 50,000,000 | 50,000,000 |
Preferred stock, shares | 0 | 10,000,000 | 0 |
Preferred stock, par value | $ 0.001 | $ 0.001 | $ 0.001 |
Major Customers (Details Narrat
Major Customers (Details Narrative) - Sales [Member] | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Five Customer [Member] | ||
Ceded Credit Risk [Line Items] | ||
Concentration percentage | 64.00% | |
Three Customer [Member] | ||
Ceded Credit Risk [Line Items] | ||
Concentration percentage | 35.00% |
Gain from Insurance recovery (D
Gain from Insurance recovery (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
May 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Gain From Insurance Recovery | ||||||
Loss on disposal of asset | $ 249,499 | $ (249,499) | $ (254,600) | |||
Gain from insurance recovery | 434,724 | 434,724 | ||||
Prepaid expenses and other current assets | $ 428,865 | $ 439,242 | $ 439,242 | $ 350 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - Subsequent Event [Member] | 1 Months Ended |
Jul. 23, 2021USD ($)$ / sharesshares | |
Stock Incentive Plan 2021 [Member] | |
Subsequent Event [Line Items] | |
Options exercisable period | 10 years |
Exercise price | $ / shares | $ 5.80 |
Stock Incentive Plan 2021 [Member] | Joseph Visconti [Member] | |
Subsequent Event [Line Items] | |
Share purchase | 272,000 |
Stock Incentive Plan 2021 [Member] | Preston Yarborough [Member] | |
Subsequent Event [Line Items] | |
Share purchase | 136,000 |
Stock Incentive Plan 2021 [Member] | Donna Barnett [Member] | |
Subsequent Event [Line Items] | |
Share purchase | 68,000 |
Stock Incentive Plan 2021 [Member] | Pete Melvin [Member] | |
Subsequent Event [Line Items] | |
Share purchase | 5,500 |
Stock Incentive Plan 2021 [Member] | Neil Ross [Member] | |
Subsequent Event [Line Items] | |
Share purchase | 5,500 |
Stock Incentive Plan 2021 [Member] | Steven A Shallcross [Member] | |
Subsequent Event [Line Items] | |
Share purchase | 5,500 |
IPO [Member] | |
Subsequent Event [Line Items] | |
Number of shares issued | 3,000,000 |
Share price | $ / shares | $ 6 |
Proceeds from Issuance Initial Public Offering | $ | $ 18,000,000 |
Over-Allotment Option [Member] | |
Subsequent Event [Line Items] | |
Share purchase | 450,500 |