Earnings call transcript Q4 2022

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Operator

Greetings and welcome to the Forza X1 Incorporated Year-End 2022 Investor Call.

As a reminder this call is being recorded and all participants are in a listen-only mode.

Your speaker for today’s program is Joseph Visconti, Executive Chairman and Chief of Product Development for Forza X1.

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 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. of statements estimates, identified plan, continue, potential the forward-looking as terminologies expects, cases other or may, or believes, anticipates, negative some can by be such predict, similar In expressions. terms these intends, should, and largely financial based projections expectations operation, condition, events financial results statements future believe I strategy, our trends current of The company that forward-looking financial may on has and these needs. and about affect business its

and Commission uncertainties described a with Investor number available These set ir.forzaxX.com. of in including on forward-looking at statements subject forth and those are the to risks Securities which our assumptions our filings website and Relations Exchange are

not or We the reflected should of in upon you occur. predictions statements and as future cannot be will circumstances You forward-looking events. achieved forward-looking that rely statements assure the events

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Joseph Visconti

and thank I'm Forza name taking of everybody. like My the to for Good call to you would Chairman I today time everyone XX. Executive morning, Visconti. your out welcome the Joseph is schedules. of the

boats. sustainable of recreational the electric mission Forza's accelerate is to adoption commercial

And through and focused our propulsion lithium are and fully electric the utilizing interface of garment includes outboard system be as boats all our system. on and cellular. screen the we high-powered Wi-Fi design, the We and and our monitor software electric user development, integrated packs, control motors, to sale our that telematics our proprietary our update battery of continue testing to

We transition as of is in global following footsteps believe industry electrification. the automotive to the the the industry witness marine we

electric As several basis products, Forza being our which has on we daily a you've the our red monohull. entered our and which our electric deck motors, that FX-X console electric model our are is electrified center of phase outboard the include multi several for our push almost our specifically with seen, XX boats newest water forward, to be hull XX-foot testing tested boat of

of the as with of combustion to offer electric price comparable our As boats by up recreational of we boats. to ice clear boats performance be by known must powered XX a We a XX products, six that believe consumers commercialization in XX engines, consumers single also knots, terms transformative motors with charge run times get outboard day internal that will to miles experience closer for required electric performance. of to specs to it's and the boating ignite hours, day demand use electric of motors speeds recreational and

gaining capacity and to momentum. confident electrification we feel marine continues battery As continue and technology that power will battery evolve the increases,

seeking we inquiries electrification receiving the around fact, their In for various are products. world to already from companies from own adopt

fiberglass a that to range electrify extremely wide all the pontoon can hand boats to tech to company tenders electric We we EV high end provide companies out-of-the-box marine the to for their manufacturers the pocket and that are on the shift world of an are from with having all interactions based themselves paradigm many from witnessing seeking products. with yachts align propulsion over first system seeking

production and turning goals enter comparable performance, boats flat not boat the quality, Many Electric electric consumers. consumers building XX is want seeking We're while a educated, to forward boats. will forward. many deliver we Consumers are which XX times design, the we electric and shopping the typically similar will are to small deliver experience a will price. way strongly and power the fit is players There well companies buying and feel are market and proximately the that counterparts specifically and described. versed, finish, batch the and left don't of seeking from These be moves feel marine buying course group benefits electrification. strongly new builders We as are demand is run consumer they have footed to value knowledgeable of electrification that smart, proposition almost Forza companies share are ice boat all but products and seeing companies boats. space gain for monthly, its of tide

more We demonstrate internal make sense that to lower boats. when boats No or or why quieter and all exhaust, combustion points know comparing experience, a maintenance. them the engine fuel boats sustainable, electric ice talking

tire moving Tesla almost changed my the and had gas the I've than three years car a in less pressure electric parts years. for at more stopped have I have station efficient. Simply than engines example, gas maintained, burning XX% night motors For not are keeping and three in at or XX% oil other plugging put, and

hull battery and water keeping boat a the would require many design. be pack. the model, us. cat X Most have was In late power FX this and second motor again, a first It our motor that The motors. A X for reached the offers second is of XX Forza FX up. engine the in this expense but down designed significant single of console win increased X from stability a two behind FX multi catamarans during was cost Twin hull performance Our allows system achievement adding that better to is test, even a XXXX, milestone hydrodynamic knots twin hull boat ground due characteristics important. terms boats in catamaran the dual great efficiencies. for great control and

far going Therefore, sake to conscious its us and as are most we've success. from consumer the for to motor boats best that of willing drives up for for when their offered decided transition product they're second consumer monohull, the price consumers gives value chance pivot being to forward The our XX-foot first believe and gas the product monohull to move sale, be as and seeking purchase. with boats the cost XX-foot of we acceptance for our electric

in boat unit mind range in Keep any XX-foot XX-foot in were on that the sold of market More recreational engine produced segment is the terms boats than that today. the monohull other being largest single boat planet sales.

ago was trialed. monohull XX-foot electrified several successfully Our and weeks sea

testing, use dual turn the of loss CG performance paces. V sitting the to in single inconsequential performance. we took the the when on the versus was its monohull The XX in battery XX lower the center its with hull During a motor the lower through compared the drag and gravity or quickly, ease no a boat, allowed of dime, plane and with there pack V on get hull nontraditional performance characteristics is hull V for to and the or as hull handling monohull,

battery times. in V our can Our improved increased as coming on XX testing for continue well examine that so continue gathering, will team weeks the to potential and hull its data run life performance additional as

dual feel small that and of on the With that XX first console into XX market. excite and be thousands production be hull buyers will said, that believe that gone right, and this for going market batch boat we the value will ready, we the be to it'll to will now boat. the electric be It's being right priced XX waiting V have our many boat and great the

boat. at Our our all new electric hard engineers have deck on work also been

completed test successfully boat March. in deck The February and

boat an During speed tests we performed to These the a knots average bring able with excited deck initial with of to run miles the continue use, around success. XX those were We're only major to tests battery XX% we're over happy as can market. we to so were our XX that XX% work all systems expected. to report boat deck

our are operate through As per least boat in the X several test is for daily basis. boats day, our to to electric paces of putting their water boats to a regular several trying fulltime hours We've them. on boats X the whose job of and hired at break captains today,

most our which increase lineup. designed proprietary to range. on is have of horsepower which XXX working our model is motor increase to performance boat from motor X will version to second enhance XXX horsepower, been outboard We new adding recently current maximum our power the Model and

systems, our have and as helm the far standard we control the centralizing reimagined As through modernized controls.

we and and heading Marine indicators We tech Telematics speed. have leader that as mapping, Screen The utilizing industry our readings, Garmin Osmosis are help partnered depth with offers user GPS high Garmin that control this power system. interface and command

anxiety and temperature, Additionally, and reduce beta display the will also on experience. battery customer the control range to for capable the the Garmin items as such for motor battery be anchorage draw unit charge, improve specific

that offer financing, web Forza frictionless platform less to a will delivery, in will will be we consumer eight easy in offer price and consumer to continues in and all up developing that build direct one platform We in the experience. module. service use website digital The app believe an and all training schedule than months.

channels about thrilled to strategic additional partnership with sorry, partner electric for is Marine, Forza which Forza partner in I'm distribution and will our addition, In create increase, to OneWater OneWater our boats.

largest over the is in locations fastest in growing XXX States operates and Marine the and retail premium one retailers currently states. OneWater of United marine XX

ability desire to boats traditional our a As who buying pursue boat representatives, market, test with the our give engage enable to experience one-on-one we rides, either platform more bring direct will in plus dealerships trade this and customers. OneWater will country or experience, We more further, and OneWater’s multi-channel us throughout more, the engage through approach believe sell the to reach the XXX all-digital consumer opportunities. to customers

Carolina our units for of will specifically and Forza you The its integrated factory. factory product aware the in boats. is has square development first of United be of site feet one already every a As phases manufacturing its of the part producing which center We When be XX,XXX the of All aspects kind designed as approximately for States, finished, the two year. manufacturing of the basically in future art factory electric we're the will believe factory state North be XXXX up selected construction state-of-the-art designed fully may vertically building be means will to boat. capable of roof, under a integrated each.

is and land the completed. grading XX% clearing for The

temporary In space batch Fort, North and have We small outboard testing Carolina a XXXX to on QX is installed near factory the meantime, test the town our are in utilized our factory with tank. the constructed. we date Old leased being production called targeting motors new which fully a for newly have motors completion the

large and the need without allows is of obtain It of facility. body within to tank quicker from Fort us controlled allows to performance our engineers traveling also test water. data a Old to Our tests the to quite conduct access and

all prototype ready, Pierce in the be work is installed For factory then shipped Twin Fort Vee’s Florida Carolina and Pierce, assembly at prototype fabricated [ph] will North boats. and months being on Fort the our are to headquarters next several until our undertaking and while engines

So I'd with to that being it said, for up questions. open like

Operator

[Operator Thank Instructions]. you.

Our first with question comes Investor. Please from Private your Johnson, proceed a Paul question.

Unidentified Analyst

good Yes, morning.

about is Do million you to XX.X get more to you raise in be to fully that have production need money? reported point expect cash. will enough you're that going think that do You that the you to this you in or you

Joseph Visconti

you, Thank Paul.

As $XX,XXX,XXX in bank. we have of XXXX, the

that's $X is if XX We're have which in. to in $XXX,XXX it, currently And development million about so prototype, four are $XXX,XXX sit $XXX,XXX, building, we each. no on we of on approximately Our our cash. per put at as And That's pay six the of there's the number all then burn approximately month boats, $XXX,XXX. so today. there's prototype we add another debt boats

out believe we said about So XX our in generating months, be than as take revenue we which we months. less us cash today, XX will will

that money So but position. of be it's cash out, revenues. have tight, our And raising it like going sit and a to as with to XX our but said believe to little we burn make we currently laid we're is course months going as I bit today important, we we

Unidentified Analyst

for or back is Okay. you able And initial of or you from of OneWater down it commitments share, example any backlog any there orders kind are too or payments share individuals, is early? is can to kind information there, or

Joseph Visconti

No.

that a have people up deposit. really or XXX, So and And we view a been there's under ordered I an non-refundable a refundable little indicator. about have I -- XXX deposits that website mean we put boat as that have a don't not takes

because se, in We straight have there's not continued, innovation. marketed per boats no our as we've line

market. presentation, is So as are on during boat to tested like and I we've one we mentioned our we the first now the V landing hull

can you really XX-foot is down to boat another that goal get our to to price is the apples at and boat this $XXX,XXX in like single where which consumer you could compare engine We'd around bring So to range. buy this apples. same boat

got four a goal our becomes consumer I These to from can electric make XX and runtime. boat to that's to last for and real XX transition that combustion boat. So boats to knots, That XX earlier, hours six to we've up sure like engine to an mentioned of viable you've option a miles, got add a $XXX,XXX. speeds

level. information really goal that some locations. with at real with to a and So the order pick a to at put have deposits going and this is to media, here's engine, can We're and color, we people pick Paul, kind start to getting up interior. gaining next orders going boats hey, where website national individuals showcase in believe XX dealer our an an And point a start products pick media network that and said, real we're XXX being put a which out, an boat, on investors, interim that the of our will we're can down, the our out deposit we'll that really our that days, day doing a down a coming be deposits invite OneWater

it's So all the in mix.

not have a just But but answer, know say companies and said lot mean $XXXX your today, strategy. as long hey, was there's of today, this not we as that we said we a said, put boat. down order I EV was that our I

or its they win transition I terms get right, we've these they've at boats. in real boat attain be use fit let's right work, to think I products hands bulletproof, of talking to was and on have gas word a comparable the a The be a range. to bulletproof. that can -- I'm And products quality to to let's the have better have other they XXX got strategy if boats finish, these the any consumer price got than Our we about, got electric from our to numbers as

XX consumers So on we've I seen will that you're would marketing we because buy. the you've to than finally first be days next boat see over landed say going the a believe brought more for to lot boat a historically out

sorry long So for a the lot going but on. answer,

Unidentified Analyst

anybody positioning bit in even that's No, what is or there, helpful us about right production just can a leading And with finally, the who who's actually. boats has now? really here, little you out tell competitive if electric the market

Joseph Visconti

extremely the there's a good sold outboard decent is boating is a So the direct something which outboard that traditional motor a that is market. is, looks American do European chose good like experience, but an of market. companies, Shore we've shaft I At United They an Swedish We're to be and that more some into would people, which market American [ph] but chosen. boat, all or in going might boat Danish the say of outboard probably reasons It's for a a the feels propeller which they're the with motor, -- underneath It's good That's I company, not expensive. States tack. that a path have is an an motor. and boats can get XX% there's, why the wants furthest.

So three you've for. more price the [ph] or what there, times than that's got Shore is out but we're shooting At two

to the annually. going that mass of to be said, aluminum XXXX an are ski boats, company Ark produce don't a up that's producers, kind stake company doing electric we're there's other boat. company California the XX any units we that's got batch know out in but in to that's there put ground companies to of that build mean called small a You've I infrastructure of kind and going

with the seven up with as Group a and building IPO who So the with Maverick, he day Boat this over factory, our came infrastructure year CEO money, a various factory and Leffew, over models with Maverick. did we at have produced to set President the that experience Jim boats has a XXXX mass our Maverick at background boats was from

producer. pieces that answer, marine automotive So doing scale we've for of obviously any production the be are happen manufacturer again, as being to and that the the leader together want as industry be mass boat infrastructure seen that put the transitions all We to the puzzle see the for. way industry. large long electrification in we sorry again other don't we're But the shooting to

Unidentified Analyst

I appreciate Thank you. it.

Joseph Visconti

of and and date. kind by marine the boats. everybody's great site gentleman that every Boats behind phenomenal And a creates kind the to guy Paul, does and electrification electric it's it way, any boat, website there's players great the keeping called a The new market, industry a called there's in job, the at, Plug to plug follow. where a has of It's up to

Unidentified Analyst

Okay, thank you.

Operator

[Operator this There has excuse me, Instructions]. time. another question. Johnson Paul Oh, at questions no are further

Unidentified Analyst

Hi, about company, Forza talk what Cats or between bit the company, going synergistic forward? in was the and little can Power opportunities parent terms you Vee a of Twin the relationship the parent

Joseph Visconti

question. great course, Of

NASDAQ under FL. Vee So did in the XXX boat about $XX We boats Twin Twin here in cats built a Vee builder revenues. V Fort annually. got E about trades producing We've symbol of and Power Triple gas XXX Pierce, We about million is employees.

factory. we so out electric for we to developing which electric raise additional needed our And was capital boats, the spun kind division as of large were scale

being tested are Those to being back in shipped boats here down And the in and Florida. are are are built for the the here synergistic on sit relationship in our is all temporary Fort Vee FL. in as designed, motors being Pierce, old the Fort hung So down space of Twin manufactured Carolina. these all the here and ten Twin fiberglass we today then Vee prototype The boats North and the being motors boats. rigging factory

of may international but yacht also kind at a labor, we Vee might of this, very of for some where billing Of company and a kind boat want system. builders There's course, looking play. large extent. looking need our bit We're Twin propulsion Vee -- some little opportunities is electrification crossover in other looking at is to it bring that Forza we're to an for Twin of

engineers So produced Vee work but I fiberglass factory into we Twin think we've get Forza. side, hard are until the is our Forza being for got new at on the all at our

Unidentified Analyst

you. Thank Understood.

Operator

over the to the We call back have would Joseph to closing like for turn session. of end I Visconti the comments. reached question-and-answer now

Joseph Visconti

I taking team today time just hard. want their thank and to Forza working for everyone

exciting lot got lot front med of in have milestones that have a We we of and those. a more

you thank to for again Have a next great So time taking the looking forward your and day. call.

Operator

This concludes today’s conference.

You times and we participation. may lines your disconnect your you at thank this for

Forza X1 (FRZA) 27 Mar 232022 Q4 Earnings call transcript