Forza X1, Inc.

Welcome to the Forza X1, Inc. Q3 2023 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 Jim LeFou, CEO and President of Forza X1, Inc. Before I turn the call over to Jim, 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 or 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 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 our filings with the Securities and Exchange Commission, which are available on our Investor Relations website at ir.forza1.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 on our investor relations website at ir.forza1.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 would like to ask a question, you may signal by pressing star 1 on your telephone keypad. I would now turn the call over to Jim LeFou.

Thank you and good morning. I would like to welcome everyone to the call today. I'm Jim LeFou, CEO and President of Forza X1. Today, I'm going to do a brief overview and update for milestone accomplishments in Q3 of 2023, and then open up for Q&A. The Forza X1 engineering team continues to push forward with the mission 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. Our fully integrated zero-emission electric boats are designed for use on saltwater, intracoastal waterways, and freshwater rivers and lakes so that owners can enjoy a full day of boating, doing the things they love on the water, cruising, fishing, pulling the kids on a tube, anchoring on a sandbar, or docking at a waterfront cafe to enjoy the day with friends and family. At present, the team is focused on the production of our fiberglass F-22 electric boats, in addition to creating a high-quality electric pontoon offering. We are in small batch production on the fiberglass vessel, and we now have two exciting versions, a center console and a brand-new dual console that we just launched last month. We are currently building one boat a month as we continue with our extensive testing protocol. and we will ramp up to two per month as we officially begin production for retail use in early 2024. From there, we will advance our rate of production in accordance with market demand. As we have previously announced, our F-22 has reached speeds of up to 40 miles per hour. The F-22 has been designed to utilize 100 kilowatt-hour lithium batteries combined with our own electric outboard capable of peak instantaneous power of over 180 horsepower. This is enough power and battery for you and your family to spend a comfortable day on the water, traveling up to 50 miles at a variety of operating or cruising speeds. The F-22 features a beautiful Garmin user interface that displays all of the pertinent operating characteristics of the boat and also has a remarkable downloadable telematics app for remote monitoring and diagnostics and location tracking capabilities. The F-22 can be charged very simply with an off the shelf level two or 240 volt charger. If you keep your electric boat in a marina, you can buy a $30 plug and use it to charge your F-22 using the dockside shore power. Similarly, if you use a trailer with your boat, you can recharge it in your driveway with a dryer type outlet from your garage. A recharge can take approximately 6 to 10 hours, depending on the state of charge of your battery, and you're ready for the next day. Quarter 3 of 2023 was a very busy one for Forza X1. Some of the highlights of our third quarter are, in July, Forza X1 hosted an electrified launch event at the Bend Hotel in downtown West Palm Beach, where we introduced our F-22 fiberglass boat to the market. We had nearly 200 people in attendance, including marine EV industry leaders and influencers, and shareholders and individuals that placed initial orders for our electric boats. Our event can be viewed on our YouTube channel under the Forza X1 launch event. The boating media community was well represented, and the event resulted in some great press, including articles from International Boat Industry, IBI News, Boating Magazine, Sound Names Trade Only, and BoatTrader.com. In August, at the invitation of Polaris Marine, Forza X1 presented two electrified demonstration pontoons, including a Bennington and Godfrey, two of the leading brands. And we showcased these at their dealer meetings at Lake Wabasee in Syracuse, Indiana. Over the course of two weeks, we demonstrated the units and successfully ran over 50 test runs, with a variety of Polaris dealers, owners, and management. The products were very well received, and you can see a video about that event by searching for Bennington Electric Boat with Forza X1 on YouTube. In Q4, we will continue with the next phase of that project to enhance the Godfrey model at our old Ford North Carolina test facility, where we will trial our 300 peak horsepower motor and retrofit the pontoon with a smaller and more powerful single lithium ion phosphate battery. And finally, in September of Q3, we were excited to announce that we closed out the initial clearing and grading project funded by a state and county grant and received our 11.3 acre site in Marion, North Carolina, where our new Forza factory will reside. Because of an additional funding round Forza X1 completed in June of this year of over $8 million. We will be able to build this plant without the need to finance a mortgage or acquired debt. Full construction is now underway and expected to last for approximately 10 months. To date, all of the structural seal and rebar has been delivered and the 60,000 square foot pad is being prepped for concrete and footer work. The building will be capable of producing 500 boats annually or more. and will serve as the technology and fabrication center for Forza X1. As you can see, it was a very productive quarter for us, and the fourth quarter started off with a bang as well. Forza X1 had a great showing at the Fort Lauderdale boat show a few weeks ago, and we noted enthusiastic interest in our product. In fact, many people streamed into the booth to ask questions and signal their interest in buying a new Forza in 2024. The excitement was palpable, and our booth was well represented with the professional sales staff of One Water Marine. As many of you know, One Water Marine, one of the largest boat dealers in the United States with over 100 locations, has placed an initial order for 100 units of our F-22 boats. This initial 100-boat order should generate approximately $12 million in revenue for our company. At the Fort Lauderdale show, we solidified an agreement to present two of our boats at one of One Water's premier location in Southern California for demonstration and sales in early 2024. California is by far the state with the largest number of current consumers of electric boats in the United States. And we are thrilled to enter that market in the spring of next year. Now turning to some financial updates. As of the end of September 30, 2023, our company has cash and securities of approximately $15.1 million, and our cash burn was $1.1 million for the quarter. This $1.1 million covered all salary, expenses, prototyping, boat production, and inventory purchases. Again, I'd like to thank you for joining the call today, and I will now open up for Q&A. Thank you.

At this time, we will be conducting a question and answer session. If you would 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 would 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. One moment please while we pull for questions. Our first question today comes from Raj Mizwari of Charlestown Capital. Please proceed with your question.