NASDAQ: VEEE

Revenue from the sale of our boats accounted for nearly
100% of our net revenue in 2025 and 2024. Our boats are manufactured in Fort Pierce, Florida. We believe our company has been an innovator
in the recreational and commercial power boat industry. We currently have 12 Twin Vee models in or nearing production ranging in size
from 24-foot to 40-foot, and 9 monohull (Bahama) models in or nearing production ranging in size from 22-foot to 41-foot.

During the 2025 and 2024 fiscal years, we focused
our efforts on increased throughput through our facility, and integrating the new models from our Bahama Boats brand that we acquired
in 2025.

During the year ended December 31, 2025, two individual dealers
each represented over 10% of our total sales and in the aggregate represented 27% of total
sales. During the year ended December 31, 2024, three individual dealers represented over 10% of our total sales, and in the aggregate
represented 40% of total sales.

Twin Vee’s Twin-Hull
Shape

Twin Vee catamaran boats are designed for a dry and
smooth ride. As a Twin Vee moves through the water, the boat’s symmetrical catamaran hull has lifting strakes on the side of each
hull. Lifting strakes are known to produce lift at the bow of a boat by displacing water, allowing the boat
to, in essence, glide above the water rather than lumber through it. Twin Vee’s lifting strakes work to not only create lift, but
also to make the ride smoother. The forward motion of a catamaran boat lifts water up towards the top of the tunnel while pushing
the water inward to form two counter-flowing vortexes. As these vortexes are being formed, the Twin Vee hull design aerates these vortexes
with small air bubbles, which are then compressed at an increasing rate as the vortexes move down the tunnel. It is the kinetic energy
stored in these compressed air bubbles, which creates a smooth and stable ride. As speed increases, the kinetic energy increases at a
non-linear rate as more and more air is induced into the increasingly faster flowing vortexes. The trailing surfaces of the Twin Vee hulls
are specifically designed to facilitate propulsion efficiency by discharging the kinetic energy and air bubbles from the counter-flowing
vortexes upon exiting astern, thus providing the propellers with a steady flow of super clean and highly ordered water.

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We believe that these features, combined with a catamaran’s
soft ride, results in Twin Vee’s renowned efficiency and smooth, seaworthy safety. At speed, the Twin Vee’s displacement hull
slices through the water, traveling with the shape of the seas rather than flying over them and experiencing reentry shock. This is intended
to result in a stable and smooth ride. The following are some benefits of the catamaran, or Twin Vee’s, hull shape.

Power Catamaran Hull
Benefits

●
Catamaran stability. Catamarans have parallel hulls on the outer edges of the boat rather than in the middle, providing superior stability. A Twin Vee hull is designed to travel with the wave shapes because its buoyancy is to the outside, reducing the snap roll pendulum motion of deep vee monohulls. A Twin Vee’s wider footprint mitigates the effects of rolling seas, making them less likely to capsize and reducing seasickness.

●
Shallow draft for travelling in “skinny” waters. The weight of the boat is distributed to two hulls for a shallower draft than a monohull vessel of the same weight might have. The shallow draft of the Twin Vee design provides access to areas that conventional hulls cannot reach.

●
More usable deck space. The relatively rectangular design of the Twin Vee expanded deck area allows for more usable deck space than monohulls. Twin Vee boats are wider in the bows providing more open-area in open models and bigger berths in cabins.

●
Maintains a plane at lower speed for fuel efficiency, enabling single engine operation. Twin Vee catamaran hulls do not need planing speed power to travel rapidly. Further, a Twin Vee’s deck remains closer to being parallel with the water than a monohull vessel would at the same speed, allowing customers to take advantage of the greater fuel efficiency that lower speeds allow without compromising visibility as much as they might in a monohull vessel.

●
Docking and maneuverability. With the extra separation between the motors compared to most mono hull boats, you can cross-clutch the motors and turn or spin the boat up to its own length.

●
Greater stability provides more options for fishing. Monohull vessels can list significantly when weight on the boat is not balanced. The stability of Twin Vee’s catamaran design allows fishing from one side without the extreme listing of a monohull.

Wizz Banger Platform

We are developing Wizz Banger, a technology-enabled
marine retail and valuation platform intended to modernize and streamline the process of buying, selling, trading, and financing recreational
boats. This initiative represents the evolution of our prior Pro Direct platform concept and consists of two primary components: (i) the
Wizz Banger Value App, which utilizes artificial intelligence (“AI”) and multi-source data inputs to generate independent,
condition-specific valuation assessments of new and used boats, and (ii) Wizz Banger Boats, a related physical retail location intended
to be established at our Fort Pierce, Florida headquarters.

The objective of Wizz Banger is to reduce valuation
inconsistencies across the marine industry, improve transparency for all participants in the transaction cycle, and shorten the time required
for consumers to obtain financing approvals. We believe that increased valuation alignment among lenders, insurers, dealers, and customers
may enhance efficiency in the marine retail ecosystem and potentially increase transaction completion rates.

Wizz Banger Value App: Data Aggregation and Valuation
Methodology

The Wizz Banger Value App is designed to serve as
an independent valuation tool that aggregates and analyzes multiple categories of data, including:

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●
Historical sales data obtained through API integrations with third-party data providers.

●
Current listings across national and regional marketplaces.

●
AI-based visual assessments, including of hull surfaces, gelcoat oxidation, cushions and upholstery, hardtops and T-tops, trailer condition, and visible aftermarket components such as radar, sonar, GPS, cameras, power poles, and battery systems.

●
Comparative equipment and configuration adjustments based on historical market behavior.

The AI component utilizes image-recognition models
to evaluate visual condition factors with greater consistency than traditional manual inspections. While the system does not measure engine
hours or identify internal mechanical issues, it is designed to significantly narrow valuation ranges by eliminating subjective variability
and inconsistent dealer or third-party assessments.

By standardizing the valuation input process, the
Wizz Banger Value App seeks to provide lenders, insurers, dealers, and customers with a more reliable, condition-specific, and data-supported
valuation reference point.

Potential Industry Impact and Expected Benefits

We believe that a more unified valuation framework
could positively impact several parts of the marine transaction process:

●
Financing Efficiency: Providing lenders with consistent data may reduce the underwriting and decision-making timeline.

●
Insurance Alignment: More standardized condition assessments may improve insurer confidence in collateral evaluation.

●
Dealer Operations: Consistent valuations may support more efficient trade-in processes and reduce negotiation variability.

●
Customer Experience: Shorter financing cycles and improved transparency may help reduce transaction fallout and increase customer participation in the market.

Many marine transactions are delayed or abandoned
due to the time-consuming and uncertain financing process. Our intention is to assist in reducing these inefficiencies by providing valuation
data that may help lenders issue decisions more quickly and with greater confidence.

Wizz Banger Boats Retail Location

As part of the Wizz Banger initiative, we plan to
launch Wizz Banger Boats, a physical retail location situated directly on our U.S. Highway 1 frontage at our Fort Pierce, Florida headquarters.
This site is expected to function as the initial operational deployment location for the Wizz Banger Value App, where we will integrate
the valuation system into live retail, trade-in, and resale activities.

The location will also allow us to assess real-world
dealer and customer behavior, validate the valuation engine under practical transaction conditions, refine the system’s accuracy,
and evaluate operational processes that may be expanded to additional locations in the future. The initial site will focus on used-boat
retailing, trade-ins, and evaluation services and may also be used to support lender and insurance partners who require in-person verification
of valuation inputs.

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Our Strategy

Overall Strategy

We intend to capitalize on the thriving broader marine
industry through the following strategies:

Develop New and Innovative Products in Our Core
Market. As an innovator, designer, manufacturer, and marketer of catamaran powerboats, we strive to design new and inventive products
that appeal to a broad customer base. We intend to launch a number of new products and features with best-in-class quality, with the goal
of increasing sales and significant margin expansion. For example, we currently have over a dozen
gas-powered models in production ranging in size from our 22-foot single engine BayCat, center console to our flagship 40-foot offshore
400 GFX2. Our product development process enables us to renew our product portfolio with innovative offerings at a rate that we
believe will be difficult for our competitors to match without significant additional capital investments. We intend to release new products
and features multiple times during the year, which we believe enhances our reputation as a cutting-edge boat manufacturer and will drive
consumer interest in our products.

Increase the Power Boat Category Segment. Our
near-term product development strategy is to develop a new product line to reach underserved segments of the catamaran and monohull powerboat
category that are distinct from our traditional customer base. Our existing supplier relationships, material agreements, and manufacturing
processes should allow us to offer this product line at an attractive price point for the consumer while sustaining our gross margins
and the product attributes critical to the Twin Vee brand.

Capture Additional Market Share from Adjacent
Boating Categories. Another strategy for growing our market share is to introduce new products with increased versatility, functionality,
and performance that can appeal to a more expansive customer base that values boats for both water sports and general recreational boating
purposes. In 2024 we launched several marketing campaigns that focused on new product launches and help to educate the market on our value
proposition to customers.

Effectively Manage Dealer Inventory and Further
Strengthen Our Dealer Network. We view our dealers as our partners and product champions. Therefore, we will continue to devote
significant time and resources to finding high quality dealers and developing and improving their performance over time. We believe the
quality and trust in our dealer relationships are more beneficial to our long-term success than the quantity of dealers. We currently
have a network of 17 independent boat dealers across North America, Hawaii, and Australia.

Design and Introduce a First of a Kind in the
Marine Market Pro-Direct Platform. As consumer expectations change, we hope to revolutionize the marine industry with Wizz Banger,
a technology-enabled marine retail and valuation platform intended to modernize and streamline the process of buying, selling, trading,
and financing recreational boats.

Increase Our Sales in International Markets.
We believe we have a brand that will have natural growth in international markets. Catamaran powerboats have already been accepted as
the norm in many international markets. For example, the global catamaran market is expected to expand at a compound annual growth rate
(CAGR) of 5.8% from 2022 to 2030. The U.S. catamaran market was worth $342.5 million in 2021 and is expected to expand at a CAGR of 5.4%
from 2022 to 2030. Based on our brand and product offering, as well as our potential distribution strengths, we believe we are well positioned
to leverage our reputation and capture additional international sales. We believe that we will increase our international sales by promoting
our products in developed markets where we have a dealer base and in international markets where rising consumer incomes are expected
to increase demand for recreational products, such as Australia, Europe, Israel, Dubai and Brazil. We are also developing new product
offerings that will specifically target certain product demand from our international consumers and that we believe will drive further
sales growth in international markets.

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Our Strengths and Competitive Advantages

We believe that the following are the key investment attributes of our
company:

Recognized Brands. We believe the Twin
Vee and Bahama Boat Works brands are well-known among boating enthusiasts for performance, quality, and value, and that the market recognizes
both Twin Vee and Bahama Boat Works as brands that deliver a proposition.

Diverse Product Offering. We
are able to attract consumers across multiple categories within the recreational powerboat industry. We currently have over a dozen models
in production that range from our 22-foot single engine BayCat to our flagship 40-foot offshore 400GFX, offered at retail prices that
start at approximately $90,000 and go up to $900,000. We further diversified our offerings in 2025, with our new redesigned 22-foot Twin
Vee BayCat.

Focus on Innovative Product Offerings. We
are currently designing numerous new boat models to meet market demand and grow our business, and our current focus is on bring a full
line of monohull boats to the market under the Bahama Boat Works brand.

Price Point. Twin Vee has also made
investments in infrastructure and engineering. These investments have resulted in lower material waste, reduced labor hours per boat,
reduced re-work, and increased production efficiencies. Therefore, we are able to offer favorable pricing while increasing margins by
controlling costs through disciplined engineering and manufacturing processes.

Our Markets

According to SSI data (Statistical Surveys Incorporated),
179,168 new watercraft were sold in the U.S. in 2024, a decline of 9.59% across the entire industry compared to 2023. Our core market
corresponds most directly with the saltwater outboard market defined by SSI and is further categorized by the power catamaran segment.
The saltwater outboard market experienced a decline of 9.26% in 2024 compared to 2023, with a total of 18,684 new units sold in the United
States during 2024.

Outboard Motor Market

An outboard motor is a propulsion system for boats,
consisting of a self-contained unit that includes engine, gearbox and propeller or jet drive, designed to be affixed to the outside of
the boat. As well as providing propulsion, outboards provide steering control, as they are designed to pivot over their mountings and
thus control the direction of thrust. Outboard motors tend to be found on smaller watercraft as it is more efficient for larger boats
to have an inboard system. Although outboard engines powered by fossil fuels have traditionally dominated this market and continue to
do so, electric outboard motors are a relatively new phenomenon that have been growing in step with the growth in the electric boat market.
The boats that we sell and manufacture all have outboard motors.

According to the NMMA, sales of outboard engines.
in the United States (which includes outboard motors) were $3.8 billion in 2023. Consumer demand for higher-performance engines hit an
all-time high in 2020. The market saw a decline of 1.6% in 2023, over 2022.

Although many recreational boats can be powered by
outboard or inboard motors, many consumers prefer outboard motors. Among the reasons for their preference are that, unlike inboard motors,
outboard motors can be easily removed for storage or repairs, they provide more room in the boat as they are attached to the transom outside
of the boat, they tend to have a shallower draft and they can be more easily replaced in the event the motor no longer works or a desire
to upgrade to a higher horsepower.

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Our Dealer Network

We primarily sell our gas-powered boats through a
network of 17 independent boat dealers across North America, Hawaii, and Australia. We are always seeking to recruit and establish new
dealers and distributors domestically and are striving to develop international distribution.

We establish performance criteria that our dealers
must meet in order to be part of our network to ensure our dealer network remains strong, which include minimum annual purchase orders.
As a member of our network, dealers in North America may qualify for floor plan financing programs, rebates, seasonal discounts, promotional
co-op payments and other allowances. We expect this will strengthen our dealers’ ability to sell our products.

During the year ended December 31, 2025, two individual
dealers each represented over 10% of our total sales and in the aggregate represented 27% of total sales. During the year ended December
31, 2024, three individual dealers represented over 10% of our total sales, and in the aggregate represented 40% of total sales.

We consistently review our distribution network to
identify opportunities to expand our geographic footprint and improve our coverage of the market. We believe that our diverse product
offering and strong market position in the United States helped us capitalize on growth opportunities as our industry recovered from the
economic downturn. We have the ability to opportunistically add new dealers and new dealer locations to previously underserved markets
and use data and performance metrics to monitor dealer performance. We believe our outstanding dealer network allows us to distribute
our products more efficiently than our smaller competitors.

We do not have written agreements with our dealers.
Prior to the beginning of each year, we establish a minimum number of units that each dealer must acquire based upon indications of interest
from the dealers. Payment for the units is made by the dealer or a third-party lender once the boat is manufactured and delivered to the
dealer. Dealers are not contractually obligated to purchase any boats. Although to date most dealers have purchased boats for which they
have provided indications of interest, we could experience excess inventory and costs if a dealer should choose not to purchase a boat
for which it has provided an indication of interest. Beginning in early 2025, as a condition to participate in various programs, we are
requiring new dealers to sign a dealer agreement, provide a non-binding APT (Annual Purchase Target), register new boat owners’
warranty information and meet various other requirements. There can be no assurances that these efforts will result in any specific level
of participation or adherence to the annual APT.

Demand for our products is typically seasonal, with
sales generally highest in the second quarter of the calendar year, although market turmoil over the last couple of years overshadowed
normal seasonal patterns.

Floor Plan Financing

Our North American dealers often purchase boats through
floor plan financing programs with third-party floor plan financing providers. During the year ended December 31, 2025, a majority of
our North American shipments were made pursuant to floor plan financing programs through which our dealers participate. These programs
allow dealers across our brands to establish lines of credit with third-party lenders to purchase inventory. Under these programs, a dealer
draws on the floor plan facility upon purchasing a boat from us and the lender pays us the invoice price of the boat. As is typical in
our industry, we have entered into repurchase agreements with certain floor plan financing providers to our dealers. Under the terms of
these arrangements, in the event a lender repossesses a boat from a dealer that has defaulted on its floor financing arrangement and is
able to deliver the repossessed boat to us, we are obligated to repurchase the boat from the lender. Our obligation to repurchase such
repossessed products for the unpaid balance of our original invoice price for the boat is subject to reduction or limitation based on
the age and condition of the boat at the time of repurchase, and in certain cases by an aggregate cap on repurchase obligations associated
with a particular floor financing program.

Our exposure under repurchase agreements with third-party
lenders is mitigated by our ability to resell repurchased inventory to a new dealer. The primary cost to us of a repurchase event is any
margin loss on the resale of a repurchased unit.

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Competition

The powerboat industry, including the performance
sport boat category, is highly competitive for consumers and dealers. Competition affects our ability to succeed in the markets we currently
serve and new markets that we may enter in the future. We compete with several large manufacturers that may have greater financial, marketing
and other resources than we do. We compete with large manufacturers who are represented by dealers in the markets in which we now operate
and into which we plan to expand. We also compete with a wide variety of small, independent manufactures. Competition in our industry
is based primarily on brand name, price and product performance.

We also face competition for employees. Competition
for individuals with experience designing, manufacturing and servicing electric boats is intense, and we may not be able to attract, assimilate,
train or retain additional highly qualified personnel in the future. The failure to attract, integrate, train, motivate and retain these
additional employees could seriously harm our business and prospects.

Raw Materials, Principal Suppliers, and Customers

We purchase a number of our
product parts and components from third-party suppliers, including the fiberglass we use to manufacture parts of our boats, hydrocarbon
feedstocks and steel, as well as product parts and components, such as engines and electronic controls, through a sales order process.
The most significant component used in manufacturing a gas-powered boat, based on cost, is the engine. We maintain a strong and long-standing
relationship with our main supplier of engines, Suzuki Motor of America, Inc.

We do not maintain long-term
contracts with preferred suppliers but instead rely on informal arrangements and off-the-shelf purchases. We purchase motors from three
different manufacturers. We have not experienced any material shortages in any of our product parts, or components. Temporary shortages,
when they do occur, usually involve manufacturers of these products adjusting model mix, introducing new product lines, or limiting production
in response to an industry-wide reduction in boat demand.

A few customers have in the past, and may in the future,
account for a significant portion of our revenues in any one year or over a period of several consecutive years. For example, during the
year end December 31, 2025 two dealers represented 27% of our sales, while during the year end December 31, 2024, three dealers represented
40% of our sales. The loss of business from a significant customer could have a material adverse effect on our business, financial condition,
results of operations and cash flows.

Intellectual Property

We have not protected our
intellectual property rights for our gas-powered motor products through patents or formal copyright registration, and we do not currently
have any patent applications pending related to our gas-powered boats. Instead, we rely on trade secrets, know-how and technology to protect
our current products, which are not protected by patents, to protect the intellectual property behind our boats. We utilize confidentiality
agreements with our collaborators, employees, consultants, outside collaborators and other advisors to protect our proprietary technology
and processes. These agreements may not effectively prevent disclosure of confidential information and may not provide an adequate remedy
in the event of unauthorized disclosure of confidential information. In addition, others may independently discover trade secrets and
proprietary information, and in such cases, we could not assert any trade-secret rights against such party. Costly and time-consuming
litigation could be necessary to enforce and determine the scope of our proprietary rights, and failure to obtain or maintain trade secret
protection could adversely affect our competitive business position. See “Risk Factors—Intellectual Property Risks.”
Although we do have patents to protect our intellectual property rights for electric powered motor products; we are no longer developing
electric powered boats.

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Insurance and Product Warranties

We carry various insurance
policies, including policies to cover general products liability, directors and officers, workers’ compensation and other casualty
and property risks, to protect against certain risks of loss consistent with the exposures associated with the nature and scope of our
operations. Our policies are generally based on our safety record as well as market trends in the insurance industry and are subject to
certain deductibles, limits and policy terms and conditions.

We provide limited product warranties, generally covering
periods of ten years for the hull, and the motors are under warranty by their manufacturer.

In addition, we provide a three-year limited fiberglass
small parts warranty on some parts and components, such as consoles. Gelcoat is covered up to one year. We pass all warranties included
with third party components (e.g., stereos, pumps, electrical devices) directly on to the consumer. Where there is no separate OEM warranty,
we provide a one-year basic limited systems warranty for repair or replacement of the defective part.

Environmental, Safety and Regulatory Matters

Certain materials used in
our manufacturing, including the resins used in production of our boats, are toxic, flammable, corrosive or reactive and are classified
by the federal and state governments as “hazardous materials.” Control of these substances is regulated by the Environmental
Protection Agency (the “EPA”) and state pollution control agencies. The United States Clean Air Act (the “CAA”)
and corresponding state and provincial rules regulate emissions of air pollutants. The Occupational Safety and Health Administration (“OSHA”)
standards limit the emissions to which an employee may be exposed without the need for respiratory protection or upgraded plant ventilation.
Our facilities are regularly inspected by OSHA and by state and local inspection agencies and departments. We believe that our facility
complies in all material aspects with these regulations. Although capital expenditures related to compliance with environmental laws are
expected to increase, we do not currently anticipate any material expenditure will be required to continue to comply with existing environmental
or safety regulations in connection with our existing manufacturing facilities.

Powerboats sold in the United
States must be manufactured to meet the standards of certification required by the United States Coast Guard. In addition, boats manufactured
for sale in the European Community must be certified to meet the European Community’s imported manufactured products standards.
These certifications specify standards for the design and construction of powerboats. We believe that all of our boats meet these standards.
In addition, safety of recreational boats is subject to federal regulation under the Boat Safety Act of 1971, which requires boat manufacturers
to recall products for replacement of parts or components that have demonstrated defects affecting safety. We have instituted recalls
for defective component parts produced by certain of our third-party suppliers. None of the recalls has had a material adverse effect
on our company.

In addition to the regulation of our manufacturing
operations, the EPA has adopted regulations stipulating that many marine propulsion engines meet certain air emission standards. The engines
used in our products, all of which are manufactured by third parties, are warranted by the manufacturers to be in compliance with the
EPA’s emission standards. Furthermore, the engines used in our products must comply with the applicable emission standards under
the Center for European Policy Analysis (“CEPA”) and corresponding provincial legislation. The additional cost of complying
with these regulations has increased our cost to purchase the engines and, accordingly, has increased the cost to manufacture our products.

If we are not able to pass these additional costs
along to our dealers, it may have a negative impact on our business and financial condition.

Employees/Human Capital

We currently employ approximately
70 employees, all of whom are full-time employees. None of our employees are represented by a labor union.

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Competitive Pay and Benefits

Our compensation programs
are designed to align the compensation of our employees with our performance and to provide the proper incentives to attract, retain and
motivate employees to achieve superior results. The structure of our compensation programs balances incentive earnings for both short-term
and long-term performance. Specifically:

●
we provide employee wages and benefits that are competitive and consistent with employee positions, skill levels, experience, knowledge and geographic location;

●
we align our executives’ long-term equity compensation with our shareholders’ interests by linking realizable pay with stock performance; and

●
all employees are eligible for health insurance, paid and unpaid leaves, a retirement plan and life and disability/accident coverage.

Legal Proceedings

From time to time, we may become involved in legal
proceedings or be subject to claims arising in the ordinary course of our business. Except as disclosed below, we are not presently a
party to any legal proceedings that, if determined adversely to us, would individually or taken together have a material adverse effect
on our business, operating results, financial condition or cash flows. Regardless of the outcome, litigation can have an adverse impact
on us because of defense and settlement costs, diversion of management resources and other factors.

On March 10, 2025, shareholders Nabeel Youseph and
Marisa Hardyal-Youseph (“Plaintiffs”), who are former holders of common stock of Forza X1, Inc. (“Forza”), commenced
an action in the Court of Chancery in the State of Delaware, captioned Youseph, et al. v. Visconti, et al., Case No. 2025-0262, by filing
a putative class action complaint (the “Complaint”) against Defendants Joseph Visconti, Kevin Schuyler, Neil Ross, Twin Vee
PowerCats Co. and Twin Vee PowerCats, Inc. (collectively, “Defendants”), related to Forza’s merger with Twin Vee seeking
an unspecified award of damages, plus interest, costs, and attorneys’ fees. Plaintiffs’ Complaint asserts claims (1) against
Defendants for breach of fiduciary duty in their capacities as controlling shareholders of Forza, (2) against Messrs. Visconti, Schuyler,
and Ross for breach of fiduciary duty in their capacities as directors of Forza, and (3) against Mr. Visconti for breach of fiduciary
duty in his capacity as an officer of Forza. Defendants deny the allegations and intend to vigorously defend against the claims. At this
time, as the matter is in the pleadings stage, the Company is unable to estimate or project the ultimate outcome of this matter.

Corporate Information

Our principal executive office is located at 3101
S. US-1, Ft. Pierce, Florida 34982 and our telephone number is (772) 429-2525. We maintain our corporate website at www.twinvee.com. The
reference to our website is an inactive textual reference only, the information that can be accessed through our website is not part of
this report, and investors should not rely on any such information in deciding whether to purchase our common stock.

We were incorporated in the State of Florida as Twin
Vee Catamarans, Inc. on December 1, 2009 and reincorporated in Delaware on April 7, 2021 under the name to Twin Vee PowerCats Co. ValueRich,
Inc. was incorporated under the laws of the state of Florida on July 11, 2003 and reincorporated in Delaware on March 3, 2006. On February
17, 2015 ValueRich, Inc. consummated the acquisition of Twin Vee Catamarans, Inc. On April 26, 2016, ValueRich, Inc. changed its name
and began operating under the name Twin Vee PowerCats, Inc. On December 5, 2022, Twin Vee PowerCats, Inc. was merged into our company.

Forza X1, Inc. was initially incorporated as Electra
Power Sports, Inc. on October 15, 2021, which name was subsequently changed to Forza X1, Inc. on October 29, 2021. Prior to Forza’s
incorporation on October 15, 2021, the electric boat business was operated as our Electra Power Sports™ Division. Following our
initial public offering that closed on July 23, 2021 (the “IPO”), we determined in October 2021 that for several reasons,
that we would market our new independent line of electric boats under a new brand name (and new subsidiary). and we engaged in a public
offering of the shares of common stock of Forza. During 2024, Forza determined to cease production of its planned electric boat, and on
November 26, 2024, Forza was merged into Twin Vee PowerCats. Co. and became a wholly -owed subsidiary of Twin Vee PowerCats. Co.

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On March 26, 2025, the Company formed Wizz Banger,
Inc., a wholly owned subsidiary in the state of Florida in connection with the Company’s plan to develop an enhanced used boat marketplace.

We are subject to the reporting requirements of the
Exchange Act. The Exchange Act requires us to file periodic reports, proxy statements and other information with the Securities and Exchange
Commission (“SEC”). The SEC maintains a website that contains reports, proxy and information statements, and other information
regarding issuers that file electronically with the SEC. These materials may be obtained electronically by accessing the SEC’s website
at http://www.sec.gov.

Implications of Being an Emerging Growth Company

We are an “emerging growth company,” as
defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and therefore we intend to take advantage of
certain exemptions from various public company reporting requirements, including not being required to have our internal controls over
financial reporting audited by our independent registered public accounting firm pursuant to Section 404 of the Sarbanes-Oxley Act of
2002 (the “Sarbanes-Oxley Act”), reduced disclosure obligations regarding executive compensation in our periodic reports and
proxy statements and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and any golden parachute
payments. We may take advantage of these exemptions until we are no longer an “emerging growth company.” In addition, the
JOBS Act provides that an “emerging growth company” can delay adopting new or revised accounting standards until such time
as those standards apply to private companies. We have elected to use the extended transition period for complying with new or revised
accounting standards under the JOBS Act. This election allows us to delay the adoption of new or revised accounting standards that have
different effective dates for public and private companies until those standards apply to private companies. As a result of this election,
our financial statements may not be comparable to companies that comply with public company effective dates. We will remain an “emerging
growth company” until the earlier of (1) the last day of the fiscal year: (a) following the fifth anniversary of the completion
of our initial public offering; (b) in which we have total annual gross revenue of at least $1.235 billion; or (c) in which we are deemed
to be a large accelerated filer, which means the market value of our common stock that is held by non-affiliates exceeded $700.0 million
as of the prior June 30th, and (2) the date on which we have issued more than $1.0 billion in non-convertible debt during the
prior three-year period. References herein to “emerging growth company” have the meaning associated with that term in the
JOBS Act.

Recent
Developments

First Amendment to the License and Conditional Sale Agreement with Revver
Digital, LLC

Effective July 14, 2025,
we and our recently formed, wholly owned subsidiary, Wizz Banger, Inc. (“Wizz Banger”), entered into a First Amendment (the
“First Amendment”) to that certain license and conditional sale agreement (the “License and Sale Agreement”),
entered into and effective as of February 4, 2025, by and between us and Revver Digital, LLC, providing us with the right to acquire certain
intellectual property of OWM (the “OWM Intellectual Property”) related to (a) the online marketplace, advertisement, marketing,
and sale services of yachts, boats, and yacht and boat accessories and (b) arranging of loans, insurance, and warranty services related
to yachts and boats under the brands “Yachts for Sale” and “Boats for Sale” through the websites available at
the domains (the “Domains”) “yachtsforsale.com” and “boatsforsale.com” (the “Business”).
Pending the closing of the sale to us of the OWM Intellectual Property, the License and Sale Agreement grants us a license to use and
sublicense the OWM Intellectual Property to conduct the Business in consideration of: (a) the payment to OWM of a monthly revenue-sharing
royalty (the “Revenue-Sharing Royalty”) of six percent (6%) of the Aggregate Subscription Revenue (as defined in the License
and Sale Agreement) of the Business; and (b) a credit to OWM of $500 per OWM dealer who lists boats or yachts on the Domains during such
period (the “Dealer Storefront Credit”). On the date of the closing of the sale to us of the OWM Intellectual Property, the
License and Sale Agreement provides that in consideration of the transfer of, and as a purchase price for, the OWM Intellectual Property,
we will assume certain liabilities of OWM related to the Business and pay to OWM $5,000,000, less the aggregate amount of all Revenue-Sharing
Royalties paid to OWM through such date and the aggregate amount of all Dealer Storefront Credits accrued for the benefit of OWM through
such date.

16

The First Amendment was entered
into in order to (i) amend the definition of “Foreground Intellectual Property” (as defined therein), (ii) to clarify the
respective rights of the parties thereunder, (iii) to assign the License and Sale Agreement to Wizz Banger, and (iv) to provide for a
guaranty by us of Wizz Banger’s obligations and liabilities under the License and Sale Agreement, as amended, as provided therein
and effect other amendments to the License and Sale Agreement as set forth therein.

Bahama Boat Works Acquisition

On June 5, 2025, we entered
into an Asset Purchase Agreement (the “Asset Purchase Agreement”), with Bahama Boat Works, LLC (“Bahama Boat Works”),
pursuant to which we acquired various tangible and intangible assets (the “Assets”) from Bahama Boat Works’ relating
to the Bahama boat brand (the “Bahama Boat Brand”). In accordance with the Asset Purchase Agreement, in consideration of the
transferred Assets we paid Bahama Boat Works $100,000 and agreed to pay up to $2,900,000 in additional contingent consideration based
upon a percentage of the revenues we receive from future sales to customers of new Bahama Boat Brand 31’, 35’, 37’,
and 41’ boat models (the “Bahama Boat Revenues”). The Asset Purchase Agreement provides that Bahama Boat Works will
receive 20% of the first $7,500,000 of Bahama Boat Revenues we receive and 10% of the Bahama Boat Revenues we receive in excess of $7,500,000
(but not exceeding $21,500,000) until such time as Bahama Boat Works has been paid an aggregate of $3,000,000 by us from such sales.

The Asset Purchase Agreement
may be terminated by mutual written consent of the parties or by us, in our sole discretion, if we decide to discontinue further development,
production, or commercialization of the Bahama Boat Brand product line before the balance of the contingent consideration due to Bahama
Boat Works is paid. Upon any such termination, the parties may either seek to sell the Bahama Boat Brand and associated assets pursuant
to a mechanism set forth in the Asset Purchase Agreement or we, in our sole discretion, may elect to return the Assets to Bahama Boat
Works.

Underwritten Public Offering

On May 8, 2025, we entered into an underwriting agreement
(the “Underwriting Agreement”) with ThinkEquity LLC, as representative of the several underwriters named therein (the “Representative”),
pursuant to which we agreed to sell to the Representative in a firm commitment underwritten public offering (the “May 2025 Offering”)
an aggregate of 750,000 shares (the “Shares”) of our common stock at the public offering price of $4.00 per share, resulting
in gross proceeds of $3.0 million, before deducting underwriting discounts, commissions and offering expenses. The Shares were sold pursuant
to an effective shelf registration statement on Form S-3 (File No. 333-266858) filed with the SEC under the Securities Act and declared
effective by the Commission on August 24, 2022, a base prospectus, dated August 24, 2022, included in the Registration Statement at the
time it originally became effective, and a prospectus supplement, dated May 8, 2025, filed with the Commission pursuant to Rule 424(b)
under the Securities Act. Pursuant to the Underwriting Agreement, we also issued to designees of the Representative unregistered warrants
to purchase up to 37,500 shares of our common stock, which equals 5% of the shares of common stock purchased in the May 2025 Offering.
The May 2025 Offering closed on May 12, 2025. The net proceeds to us from the May 2025 Offering, after deducting the underwriting discount,
the Representative’s fees and expenses and our estimated offering expenses, were $2,555,101.

Repurchase Request

On April 21, 2025, Northpoint Commercial Finance LLC
(“Northpoint”) came into possession of certain Twin Vee and AquaSport inventory of United Marine and Storage LLC, a former
dealer of our products. Northpoint requested that we take possession of and repurchase the inventory in accordance with the Repurchase
Agreement that we previously entered into with Northpoint (the “Repurchase Agreement”). During the second quarter of 2025,
we sold five of the six repossessed boats, resulting in a net loss on the sale of approximately $14,875 after transportation, refurbishment,
and commissions for the second quarter. During the third quarter of 2025, we paid our obligation to Northpoint for our one remaining repurchase
obligation of $58,984 and are currently marketing this boat for sale. We expect to fully recover the amount of the repurchase obligation.

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Nasdaq Compliance

On May 10, 2024, we received written notice from the
Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”) notifying us that for the preceding 30 consecutive
business days (March 28, 2024 through May 9, 2024), our common stock did not maintain a minimum closing bid price of $1.00 per share as
required by Nasdaq Listing Rule 5550(a)(2) (the “Minimum Bid Price Requirement”). We were provided 180 calendar days, or until
November 6, 2024, to regain compliance. On November 7, 2024, we received written notification from Nasdaq granting our request for a 180-day
extension to regain compliance with the Minimum Bid Price Requirement. Compliance would be achieved if the closing bid price of our common
stock is at or above $1.00 for a minimum of ten consecutive business days at any time prior to May 5, 2025.

On April 4, 2025, we filed an amendment (the “Amendment”)
to our Certificate of Incorporation with the Secretary of State of the State of Delaware to effect the Reverse Stock Split at a ratio
of 1-for-10, effective as of 11:59 p.m. Eastern Time, on April 7, 2025 (the “Effective Time”), in order to regain compliance
with the Minimum Bid Price Requirement. Our common stock began trading on a reverse split-adjusted basis on April 8, 2025 under the existing
ticker symbol “VEEE.” Any share amounts and exercise or conversion prices in this report have been adjusted retrospectively
for the Reverse Stock Split.

On April 28, 2025, we received a letter from Nasdaq stating that Nasdaq
had determined that we now comply with the Minimum Bid Price Requirement.

Establishment of Strategic Steering Committee

On January 6, 2026, we announced the formation of
a strategic steering committee to focus on advancing autonomous marine technologies to address key challenges in unmanned maritime systems
and help bridge gaps exposed in current defense and commercial autonomy efforts. The executive-level steering committee includes members
of our board of directors and management team. Its primary focus is to explore, evaluate, and identify potential technology partners in
the autonomous and AI space whose capabilities may complement Twin Vee’s marine design and manufacturing platform and to present
such opportunities to our board of directors and management, as appropriate.

Formation of Black Line Defense

On January 22, 2026, we formed Black Line Defense,
a wholly owned subsidiary focused on the design and manufacture of manned and autonomous maritime platforms for defense, security, and
surveillance missions. Black Line Defense is seeking to pursue opportunities with the U.S. Department of Defense, Homeland Security, and
allied agencies, targeting government programs allocating billions of dollars toward small-craft fleets over the coming years. The subsidiary
aims to leverage Twin Vee’s existing vertically integrated manufacturing footprint, including in-house design, composite lamination,
CNC tooling, wire-harness fabrication, rigging, quality control, and scalable production capacity. Black Line Defense is structured to
enter the government market with limited incremental capital investment while offering cost-competitive, rapidly deployable vessel solutions
for patrol, interdiction, logistics, and unmanned operations.

Appointment of Certain Officers

On September 17, 2025, our board of directors appointed
Scott Searles to serve as Interim Chief Financial Officer, effective immediately, while we undertake a search to identify a permanent
successor. Mr. Searles terminated his employment as our Interim Chief Financial Officer in January 2026. On January 9, 2026, Joseph Visconti
was appointed as Interim Chief Financial Officer, effective immediately, while we undertake a search to identify a permanent successor.

Sale of North Carolina
Building

On September 26, 2025, we
entered into a purchase and sale agreement with Highland Myco Holdings, LLC for the sale of our property located at 100 College Drive,
Marion, North Carolina, which was completed on October 31, 2025. We received $500,000 as a closing payment, with an additional $3,750,000
payable in installments of $500,000 plus accrued interest at a rate of 5% on October 31, 2026, $500,000 plus accrued interest on April
30, 2027, and a balloon payment of $2,750,000 plus accrued interest on October 31, 2027.

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February 2026 Offering

On February 19, 2026, we entered into a placement
agency agreement (the “Placement Agency Agreement”) with ThinkEquity LLC, as sole placement agent (the “Placement Agent”),
pursuant to which we agreed to issue and sell directly to various investors in a best efforts public offering (the “February 2026
Offering”) an aggregate of 6,383,000 shares (the “Shares”) of our common stock at a public offering price of $0.47 per
share. The Shares were sold pursuant to a registration statement on Form S-1 (File No. 333-292661) relating to the securities filed with
the Securities and Exchange Commission (“SEC”) and became effective on February 13, 2026, and a prospectus, dated February
19, 2026. The February 2026 Offering closed on February 23, 2026. The net proceeds to us from the February 2026 Offering, after deducting
the underwriting discount, the Representative’s fees and expenses and our estimated offering expenses, were approximately $2,540,109.