| Organization and Summary of Significant Accounting Policies | 1. Organization and Summary of Significant
Accounting Policies Organization Forza X1, Inc. was initially incorporated as Electra
Power Sports, Inc. on October 15, 2021, but subsequently changed its name to Forza X1, Inc. on October 29, 2021. The Company’s parent
company was incorporated in the State of Florida as Twin Vee Catamarans, Inc. on December 1, 2009, and reincorporated in Delaware on April
7, 2021, as Twin Vee PowerCats Co. Prior to October 15, 2021, Twin Vee PowerCats, Co.
dedicated resources to designing and building prototype electric boats. These resources and expenditures were segregated in Twin Vee PowerCats,
Co’s financial statements and have been carved out and included as the predecessor herein for the period January 1, 2021 through
June 30, 2021. The accompanying financial statements include the
historical accounts of Forza X1, Inc. and its predecessor, the carve-out of the electric segment business of Twin Vee PowerCats, Co. (“Twin
Vee” or the “Parent”). Forza is in the business of design and development of electric boats. Forza has a December 31 st Forza succeeded to substantially all of the
business of the electric segment of Twin Vee and Forza’s own operations before the succession, October 15, 2021, were non-existent.
Accordingly, the carve-out financial statements of the electric segment of Twin Vee are included as Predecessor herein. Management has
reached this conclusion based upon an evaluation of the requirements and the facts and circumstances, including the historical life of
the electric segment, the historical level of operations of the electric segment, and the fact that the Company’s operations, prior
to the succession were non-existent. 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 ”)
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 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, 2022 and the results of operations and cash flows for the periods presented.
The results of operations for the six months ended June 30, 2022 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, 2021 included in the Company’s Prospectus on Form 424(b)(4) filed with
the SEC on April 20, 2022. Use of Estimates The preparation of financial statements in conformity
with accounting principles generally accepted in the United States “U.S. GAAP” required 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 useful life of fixed assets. 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 the purchase. On June 30, 2022 and December 31, 2021, the
Company had cash and cash equivalents of $ 258,391 1,803,285 Concentrations of Credit and Business Risk 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 0 1,492,019 Inventories Inventories are valued at the lower of cost and net
realizable value, with cost determined using the average cost 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. |
