This conference call transcript was computer generated and almost certianly contains errors. This transcript is provided for information purposes only.EarningsCall, LLC makes no representation about the accuracy of the aforementioned transcript, and you are cautioned not to place undue reliance on the information provided by the transcript.
spk02: Welcome to the Forza X1 second quarter 2023 investor call. As a reminder, this call is being recorded and all participants are on 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. In some cases, forward-looking statements can be identified by terminologies such as believes, may, estimates, continue, anticipates, intends, should, plan, expects, predict. Potential or the negative of these terms are other similar expressions. The company has based these forward-looking statements largely on our current expectations and projections about future events and financial trends that it believes may affect its financial condition, results of operation, 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 our filings with the Securities and Exchange Commission, which are available on our investor relations website at irbornzax1.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 goal is being webcast. The webcast will be available on our investor relations website at ir.forsaxone.com for at least 90 days. Audio cast quality is subject to your equipment, available bandwidth, and internet traffic. If you experience unsatisfactory audio quality, please use the telephone dial-in option. A question and answer session will follow the presentation. Please note that only those that have dialed in via telephone may ask a question. Those listening via webcast will be unable to submit questions and must call in instead. If you'd like to ask a question, you may signal by pressing star 1 on your telephone keypad. I will now turn the call over to Joseph Visconti.
spk01: Good morning, everybody. I would like to welcome everyone to the call today. My name is Joseph Visconti. I am the Executive Chairman of Forza X1. We are joined with our president and CEO, Jim LePue, and Kerry Gunnarsson, our CFO, and both will be available for Q&A at the end of the presentation. Our teams continue pushing forward with the goal of designing, developing, and manufacturing sustainable electric boats that address one of the largest segments of the recreational marine space, the 20- to 24-foot sport boat market for salt and freshwater lakes, rivers, and inland waters. Our zero-emission electric boats are designed to enjoy a full day of boating with the versatility to fish, pull your kids on a tube, wake surf, cruise, or pull your boat up to a sandbar and enjoy the day with friends and family. Today, I'm going to do a brief overview and update on major milestone accomplishments and then open up for Q&A. We are focused on the production of our F-22 electric boats. We are in small batch production on this vessel and will continue with extensive testing before we officially begin production, producing boats for end user customers in our targeted Q1 2024 date. As we've previously announced, our F-22 is reaching speeds of nearly 40 miles per hour. The F-22 has been designed to house over 100 kilowatt lithium battery combined with our 180 horse peak power outboard motor. This is more than enough power and battery for you and your family to spend the entire day on the water, travel 40 to 50 miles at lower speeds, pull your kids on the board, go fast, go slow, cruise, enjoy the day. And when you're done, you will pull your F-22 back onto your trailer like any other 22-foot boat. The F-22 can be charged very simply with a $400 off-the-shelf Level 2 charger that you can buy at Amazon, Home Depot, or Lowe's. If you keep your electric boat in a marina with shore power, you can buy a $30 adapter from Amazon, plug in your F-22 right into the shore power at the dock, and charge your boat. Both the shore power and the Level 2 store-bought system will take approximately six to eight hours and charge your battery pack up to the recommended 85% to 90%, and you'll be able to use your electric boat the following day. Some of the highlights. To date, Forza X1 has built out three offshore-styled catamarans, two electric bay boat catamarans, one deck boat, and three F-22-styled monohulls. In addition, we have electrified two pontoon boats for major national pontoon manufacturer. We recently completed a funding round of over $8 million. This round, we only issued common stock with no warrant coverage. This funding allows Forza to build its North Carolina plant without needing to finance a mortgage or debt. Our North Carolina property has been graded and we anticipate starting construction in the next several months. The plans to electrify our new 22-foot dual console are moving forward and we should have the first electrified DC or dual console no later than Q4 2023. We are continuing to work on a more powerful proprietary motor designed to increase power output to 300 horsepower. This larger, more powerful outboard motor would enhance boat performance and increase the maximum range. Once prototype work is completed, our all-new 300-horsepower electric outboard motor will be rigged to one of our boats and begin extensive testing. We are working with one of the largest pontoon manufacturers in the United States. We have electrified two of their pontoon models. The two boats are going through extensive testing and our team continues to meet and share data with executives and engineers of this unnamed company with the goal of selling our electric power system or jointly working together to electrify this company's boats. I am unable to share additional information at this time, but I can say that there was almost 15 companies originally targeted or chosen to electrify these pontoons. And as far as I know, After a year of back and forth with the company and the executives, Forza X1 motor, controller, and battery packs was chosen to electrify these boats. And the company executives traveled to our tech center in Old Port, North Carolina to ride these electrified pontoons and meet with our entire team. Hopefully there's more to come on this highlight. Forza X1 hosted an electrified launch event this last month at the Bend Hotel in downtown West Palm Beach. We had nearly 200 people that included marine EV industry leaders, influencers in the marine and EV space, shareholders, and individuals that placed initial orders for our electric boats. Our event can be viewed on YouTube under the Forza X1 Bend Hotel launch event. We had a very cool room downstairs that showcased one of our electric boats. our Garmin electronics, our new double-stack 300-horsepower motor on a stand, telematics with our Forza Connect app, and then we all moved the 200-plus people upstairs to the ballroom for a full event, including the launch of a brand-new branding launch video, followed by presentations by myself, Jim LePue, our president and CEO, Dan Norton, our chief engineer, and Owen Golden, our chief electrical integrator. The event resulted in some great press, including many articles and milestones, to name a few, including the International Boat Industry, IBI News, Boating Magazine, Soundings, which is trade-only, ScreamAndFly.com, River Dave's Place, BoatTrader.com, Recently, there was a podcast that I did an interview on a podcast named Ship Shape, and we will be circulating the link, but they can be found on Apple and Spotify. One Water Marine, the largest boat dealer in the United States with over 100 locations, has placed an initial order for 100 units of our F-22 boat. Again, we feel confident that we will begin manufacturing and distributing these electric boats in Q1 of 2024. And this initial 100-boat order should generate approximately $12 million in revenue for our company. So I'm going to move to some of the financial highlights and then open it up for Q&A. So as of the end of June 30, 2023, our company has cash and cash equivalents. of approximately $16,516,000. And our cash burn was $1 million for the quarter. This $1 million included all salary, expenses, prototypes, boat production, and the purchase of some inventory units. So I will now open up for Q&A.
spk02: Thank you. At this time, we'll be conducting a question and answer session. If you'd like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.
spk00: One moment, please, while we poll for questions. As a reminder, if you'd like to ask a question, please hit star one on your telephone keypad. One moment while we poll for questions. There are no questions at this time. I'd like to turn the call back over to Joseph Visconti for closing remarks.
spk01: Thank you. So we're going to keep it short and sweet today. We will continue to keep everybody updated. Thank you for your time and have a great day.
spk02: This concludes today's conference. You may disconnect your lines at this time, and we thank you for your participation.
Disclaimer