Forza X1, Inc. reported significant financial changes in its latest 10-Q filing for the quarter ending September 30, 2024. The company, which has ceased operations related to the development and sale of electric boats, recorded no revenue for the three and nine months ended September 30, 2024, a complete decline from $18,559 in the same periods of 2023. This cessation of business operations has led to a net loss of $895,702 for the third quarter, a 14% improvement from a net loss of $1,046,314 in Q3 2023. For the nine months ended September 30, 2024, the net loss increased to $4,895,093, compared to $4,535,100 for the same period in the previous year.

Total operating expenses for the third quarter decreased by 32% to $852,451 from $1,258,966 in Q3 2023, primarily due to reduced salaries and wages, which fell to $356,650 from $837,857. The company also recorded an impairment charge of $1,674,000 against the carrying cost of its partially constructed building as of June 30, 2024.

As of September 30, 2024, Forza's cash and cash equivalents stood at $7,200,427, down 26.7% from $9,821,531 at the end of 2023. Total current assets decreased by 43.5% to $7,554,051, while total liabilities dropped significantly to $180,871 from $901,311 at the end of the previous fiscal year. The accumulated deficit increased to $(14,915,838) from $(10,020,745) as of December 31, 2023.

Strategically, Forza entered into a Merger Agreement with its parent company, Twin Vee PowerCats Co., on August 12, 2024. The merger is expected to convert each outstanding share of Forza's common stock into 0.61166627 shares of Twin Vee common stock, totaling approximately 5,355,000 shares. Stockholder approvals for the merger were obtained on November 11, 2024, and the merger is anticipated to be completed by December 1, 2024, subject to customary conditions.

The company has also faced challenges with its stock trading status, as it was suspended from trading on the Nasdaq Capital Market and is now listed on the OTC Markets under the symbol “FRZA.” The independent registered public accounting firm has expressed doubt about the company's ability to continue as a going concern, highlighting the need for significant cash outlays if the merger does not proceed.