Welcome to the Twin Vee Powercats Company Second Quarter 2025 Investor Call. As a reminder, this call is being recorded. Your speakers for today's program are President and CEO, Joseph Visconti and Chief Financial and Administrative Officer, Michael P. Dickerson. Before I turn the call over to Joseph, please remember that certain statements made during this investor call are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements on this call other than the statements of historical facts, including statements regarding the company's future operations and financial position, business strategy and plans and objectives of management for future operations are forward-looking statements. In some cases, forward-looking statements can be identified by terminologies such as believes, may, estimate, continue, anticipate, intends, should, plan, expects, predict, potential or the negative of these terms or other similar expressions. The company has based these forward-looking statements largely on its current expectations and projections about future events and financial trends that it believes may affect its financial condition, results of operations, business strategy and financial needs. These forward-looking statements are subject to a number of risks and uncertainties and assumptions described, including those set forth in its filings with the Securities and Exchange Commission, which are available on the company's Investor Relations website at ir.twinvee.com. You should not rely upon forward-looking statements as predictions of future events. We cannot assure you that the events and circumstances reflected in the forward-looking statements will be achieved or occur. Finally, this conference call is being webcast. The webcast will be available at ir.twinvee.com for at least 90 days. Audiocast quality is subject to your equipment available bandwidth and Internet traffic. If you experience unsatisfactory audio quality, please use the telephone dial-in option.

Thank you, Rob. Good afternoon, everyone, and thank you for joining us. I'm happy to share that despite ongoing economic challenges in the recreational marine industry, Twin Vee achieved strong results this quarter. We reported revenues of $4.8 million, which is a 9.9% increase compared to last year’s second quarter. Our gross margin improved to 13.8%, an increase of over 900 basis points from the same quarter last year, demonstrating our commitment to disciplined execution, enhanced operational efficiency, and consistent pricing across our product range. Our cash and cash equivalents grew to $6.2 million. These outcomes highlight our dedication to safeguarding our balance sheet, maintaining pricing discipline, and ensuring product availability aligns with dealer demand. Our CFO, Mike Dickerson, will provide more detailed financial information later in the call. This quarter marked a significant transformation for our company. We successfully acquired Bahama Boat Works, a highly respected name in offshore boating. Additionally, we introduced a new 22' BayCat model, which builds on the success of Twin Vee's single-engine BayCat platform. We also expanded our dealer network by adding 10 new dealers, enhancing our geographic reach and retail presence as we head into the latter half of the year. In this challenging environment, we are concentrating on aspects we can control: costs, margins, dealer support, and innovation. I will explain how we are navigating the current market, the strategic choices we've made, and why we remain optimistic about our future. We are actively managing and lowering our field inventory while ensuring supply meets real-time market demand. Our inventory has decreased from nearly 160 units a couple of years ago to about 50 Twin Vees across our dealer network. We continue to closely monitor our floor plan exposure and field inventory. Despite facing challenges, we have not been inactive. We've launched new products, particularly our 22' BayCat, which is already being well received due to its efficiency and accessibility. We are currently manufacturing around 2 BayCats monthly, with the ability to increase to 4 units per month. I encourage anyone who hasn't seen this impressive boat to visit twinvee.com, check out the BayCat, and try out our newly launched 3D modeling tool for configuring and pricing. In the second quarter, Twin Vee made measured decisions to fortify our base and position the company for sustainable growth. Building on our strong operational foundation, we also pursued strategic initiatives, culminating in the acquisition of Bahama Boat Works in June. This union brings together two respected legacies within the marine industry. The Bahama brand is well-known for its exceptional craftsmanship and dedication to producing high-quality offshore fishing vessels, and we are pleased to have Bahama's molds, tooling, and essential equipment now onsite at Twin Vee's headquarters in Sport Pierce. Under the Twin Vee banner, Bahama Boat Works will continue to produce finely crafted boats for discerning customers who demand excellence. These vessels will feature signature screwless hardware, flush mounting finishes, state-of-the-art marine electronics, and optimized hull designs, marrying tradition with innovation. Furthermore, we are introducing a comprehensive range of Bahama Boat Works models that includes 22, 24, 28, and 31 center consoles, expanding upon Bahama's existing offerings of the 35, 37, 41, and 41 GT models. This strategic move into the monohull center console market will allow us to attract a wider customer base, including younger buyers, families, and seasoned enthusiasts seeking the quality associated with Bahama builds. On the tooling side, we recently received a new 5-axis router, which will make the production process more efficient and less costly. This advanced technology allows for intricate cuts and precise shaping vital for modern boat designs. In the past, we had to rely on external vendors, which resulted in longer lead times and higher costs. By bringing this technology in-house, we are enhancing the quality and precision of our boat molds while reducing our dependence on third-party tooling. In terms of digital advancements, we've launched a new interactive Twin Vee website and introduced an online 3D configurator. Customers can now customize and price their Twin Vees online, receiving real-time updates on options like interior upholstery, colors, and engine configurations. The platform also enables users to rotate and interact with their selected model in 3D. We are expanding the configurator to include our new BayCat, along with our other models over the coming weeks. Although new boat sales are facing difficulties, the market for used boats remains strong. Boat manufacturing peaked in unit production three years ago, leading to a healthy used boat market that is impacting most new boat sales. In light of this, we launched WIZZ BANGER, our subsidiary aimed at simplifying and enhancing transparency in the boat marketplace using technology and customer-oriented service locations. WIZZ BANGER’s AI-driven valuation tool will provide instant, data-based information for dealers, buyers, and sellers, similar to a CARFAX report for cars. It aims to reduce disputes and speed up the sales process, allowing dealers to finalize deals more efficiently. Our main goal is to increase the production and sale of both Twin Vee and Bahama Boats, while other technologies and supporting services will enhance this objective, ultimately boosting sales and shareholder value. In closing, although the marine industry is facing challenges, Twin Vee remains focused and disciplined. We are optimizing our operations, investing in innovation, and expanding our portfolio with strategic acquisitions like Bahama Boats, while staying true to our core values of quality, performance, and integrity. We believe the actions we are taking today will lead to sustainable growth and long-term value for our shareholders. Thank you for your ongoing support and confidence in Twin Vee as we navigate these challenges and build for the future. Now, I’d like to hand it over to our CFO, Mike Dickerson.

Thank you, Joseph. Good afternoon, everyone. Thank you for joining us today. It's a pleasure to talk to you today about our financial results for the second quarter ended June 30, 2025. We're pleased again to report continued progress in our financial and operational performance this quarter. Revenues grew to $4.8 million, a 32% increase over the first quarter of 2025 and a 10% year-over-year increase over the second quarter of 2024. This represents the first year-over-year positive growth rate since the first quarter of 2023 and stems primarily from our new dealer expansion initiatives and the introduction of our new 22' BayCat. We shipped a total of 31 units in the second quarter, a sequential increase of 29% compared to the first quarter of 2025 at an average sales price of $153,000, up slightly from last quarter. Gross margin expanded by 910 basis points to 13.8% in the second quarter from just 4.7% in the prior year period. This improvement was primarily driven by production efficiencies, better alignment between supply and demand, and our ongoing efforts to streamline costs. For the first 6 months of the year, gross margin was also up more than 900 basis points to 14.2%, further supporting our path forward towards profitability. Operating expenses in the quarter were $2.3 million, down 52% from $4.9 million a year ago. We remain focused on disciplined expense control and resource allocation, especially as we begin integrating the Bahama Boat line and investing in our WIZZ BANGER boats for Sale AI platform. Included in the 3- and 6-month period ended June 30, 2024, was a $1.674 million impairment charge related to our building in North Carolina that is now held for sale. Even before this charge last year, operating expenses for the 3- and 6-month periods ended June 30, 2025, were down 27% and 24%, respectively, demonstrating our ongoing commitment to cost control. On a GAAP basis, the net loss for the quarter was $1.7 million, a 63% improvement compared to the second quarter of 2024. Our adjusted net loss, which excludes noncash charges such as depreciation, stock-based compensation, as well as development costs for WIZZ BANGER, totaled $941,000 for the quarter, reflecting an average adjusted net loss of approximately $314,000 per month. This represents another sequential improvement and compares favorably from our previous expectations. Turning briefly to the balance sheet, we ended the quarter with $6.2 million in cash, cash equivalents, and restricted cash. This was up over $1 million from the end of the first quarter, reflecting the impact of our secondary offering in May and disciplined cash management, partially offset by investments in capital and our WIZZ BANGER Boats for Sale AI platform. Working capital grew to $10.2 million, up over 50% from the year-end 2024, primarily due to the reclassification of $4.3 million in assets held for sale that are expected to be sold within the next 12 months. During the quarter, we closed on the acquisition of the Bahama Boat brand. This transaction significantly enhances our product portfolio and market presence. The Bahama lineup is widely respected among the offshore fishing community and complements our offering by adding premium vessels ranging from 35 to 41 feet. Looking ahead, we are actively developing 22-, 24-, 28-, and 31-foot Bahama models to bring that same quality to the broader market segment, which we expect to become available over the next several months. During the quarter, we also introduced our newly redesigned 22' BayCat, one of the most popular boats in Twin Vee history. Early dealer feedback has been strong, and we expect this model to play an important role in our future. Our priorities remain clear: deliver high-quality boats, optimize our dealer network, reignite the premium Bahama brand, control costs, and build long-term shareholder value through disciplined execution. With that, I'll turn the call over to the operator to handle your questions.

There are no questions at this time. I'd like to turn the call back over to your host, Joseph Visconti.

Thank you, Rob. I want to thank everyone for participating in the call today. We will continue to work hard for our shareholders and appreciate your time. Have a wonderful day. Thank you.

This concludes today's conference. You may disconnect your lines at this time, and we thank you for your participation.