Twin Vee PowerCats, Co.

Twin Vee PowerCats Co. reported a significant increase in net loss for the second quarter of 2026, reaching $(2.9) million, up from $(1.7) million in the prior year. Net sales declined to $3.1 million from $4.8 million, resulting in a gross loss for the quarter. The company also issued a going concern warning, citing substantial losses and insufficient revenue to achieve cash-flow breakeven in the short term. Additionally, the company disclosed that its reincorporation to Nevada and a 1-for-37 reverse stock split were defective corporate acts requiring stockholder ratification.

Twin Vee PowerCats Co. announced that its attempted reincorporation from Delaware to Nevada in April 2026 was invalid due to a lack of sufficient shareholder approval. Consequently, the company corrected its status to remain a Delaware corporation. This invalid reincorporation also rendered a subsequent 1-for-37 reverse stock split, executed with only Board approval, invalid under Delaware law. The company is now seeking shareholder approval to ratify this reverse stock split. Additionally, the Board approved an amendment to the company's bylaws, reducing the quorum for stockholder meetings from a majority to at least 1/3 of the outstanding shares.

Twin Vee PowerCats Co. announced a definitive agreement to merge with USFM Corporation, a mineral exploration company. As part of the transaction, Twin Vee's Marine Business will be privatized and transferred to a Contingent Value Right (CVR) Trust for the benefit of pre-merger stockholders. Twin Vee shareholders will receive a pro rata portion of USFM common stock representing 10% of the combined company's fully diluted shares. The company believes this strategic move will unlock value, provide greater flexibility, and position both businesses for future growth, with the combined public entity expected to trade on NYSE American.

Twin Vee PowerCats Co. delivered a notice of non-renewal for the employment agreement of Joseph Visconti, effective July 23, 2026. The non-renewal was not due to any disagreement between Mr. Visconti and the company. Following this date, Mr. Visconti will continue to serve as the Company's Chief Executive Officer, Interim Chief Financial Officer, and President on an at-will basis.

Twin Vee PowerCats Co. reported increased net sales for the first quarter of 2026, reaching $3.96 million, up from $3.61 million in the prior year. However, the company's net loss widened to $2.09 million, compared to a $1.61 million net loss in Q1 2025, and gross profit declined. The company raised $5.80 million in net proceeds from equity offerings during the quarter, significantly boosting its cash position to $5.67 million, but still noted substantial doubt about its ability to continue as a going concern.

Twin Vee PowerCats Co. announced a 1-for-37 reverse stock split of its common stock, effective May 4, 2026. The split aims to regain compliance with Nasdaq's minimum bid price requirement and broaden potential investor interest. This action will reduce the number of outstanding common shares from approximately 19.6 million to 0.5 million and authorized shares from 500 million to 13.5 million, with fractional shares being rounded up.

The Compensation Committee of Twin Vee PowerCats Co. approved an increase in the base salary for Preston Yarborough, the Company's Vice President. His annual base salary will now be $250,000, effective April 22, 2026. This change was formalized through an amendment to his employment agreement.

Twin Vee PowerCats Co. has completed its reincorporation from the State of Delaware to the State of Nevada, effective April 10, 2026. This change was approved by stockholders at the 2025 annual meeting. The company's operations will now be governed by Nevada law, though it will continue as the same entity with all existing rights, privileges, powers, properties, debts, liabilities, and management.