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Major Run on (HBRM) Herborium Group, Maker of Rosacea, AcnEase & ME-Mask

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2 years ago

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HBRM () has skyrocketed up the charts in recent months out of the triple zeroes to recent highs of $0.0072. The stock has been under heavy accumulation recently and volume has picked up substantially since Microcapdaily first covered the stock in December regularly trading billions of shares and several million dollars in daily trading volume. After some recent choppy waters HBRM Investors are looking for a break over $0.0072 highs and confirmation of the next leg up and a powerhouse blue sky breakout on HBRM as so many penny stocks are these days fueled by robinhood and its 100 million new trading accounts take on the bulletin boards. These are different times than just a few short years ago; now penny stocks such as TSNP can achieve a $6 billion plus market valuation and trade $375 million in dollar volume in a day on the bulletin boards. And TSNP has no stronger fundamentals than HBRM does.    

There is a lot to get excited about on HBRM; The Company has a strong team behind it and is led by its founder, high level biotech exec Agnes Olszewski, PhD, founding partner of ClearSign Diagnostics (CSD) and holding 66% preferred A shares of HBRM. Other founders are partner CSD James Gilligan who is also co-founder of Osteon therapeutics. HBRM management is quickly becoming known for running a very tight ship and for doing things the right way; HBRM is virtually debt free, with a very clean balance sheet and no big notes. Revenues have been growing steadily; HBRM reported (just under a million USD) $993,000 in revenues for fiscal 2020, ended November 30. The Company has a low cost of sales and reported $639,000 in gross income and a net income of $47,000. Unheard of numbers on the otc bulletin boards. HBRM flagship AcnEase® has helped over three quarter of a million women and men of every age and skin tone to achieve healthy skin and healthy self–perception. In December 2020 Herborium launched the first product line extension which is complementary to its Botanical Therpeutic®- AcnEase®. This product focused on acne scars, marks and other cosmetic imperfections of the skin. The product line utilizes plant-based stem cell technology developed by NASA. The product series is already a part of the Asian expansion plan and is the first module in introducing the AcnEase Skin Management System. Additional products in the space are already being reviewed. HBRM recently signed a master distribution agreement with Phinix Global Pte. Ltd; is a part of GPS Alliance Holdings Limited (AU:GPS) which is listed on the Sydney Stock Exchange. GPS has extensive reach throughout South East Asia. In addition to marketing and distributing Herborium’s products Herborium and GPS are presently discussing additional near-term partnerships to foster growth in the US and Asia.  Phinix is presently in the process of registering Herborium’s products in Singapore to make them ready for a rollout in Asian markets in the second quarter of 2021. Earlier this month HBRM launched its antimicrobial, anti-viral, water repellent (Prevents Aerosol Viral Transmission), reusable fabric face mask. The mask provides protection for yourself and those around you by preventing COVID-19 transmission The Herborium ME-Mask is based on proprietary Japanese technology and has been tested by Intertek, a Total Quality Assurance provider based in the UK that provides Assurance, Testing, Inspection and Certification services in over 100 countries. Herborium’s ME-Masks are differentiated from any other standard cloth masks on the market, by their internationally confirmed ability to protect the user as well as others. Through their 2 -in -One double layer innovative technology they show 99.98% Reduction Water Repellant  and retain its beneficial qualities for 30 washes.

HBRM) Herborium Group, Inc. is a botanical therapeutics® company that develops, licenses and markets proprietary, botanical based medicinal products to consumers and healthcare professionals. HBRM flagship AcnEase® has helped over three quarter of a million women and men of every age and skin tone to achieve healthy skin and healthy self–perception.  The Company’s business model focuses on emerging market opportunities spearheaded by the growth of a new market sector located between high-cost, high-risk, ethical pharmaceuticals and commoditized classic nutraceuticals (supplements).  The Company uses clinical validation and a proactive regulatory strategy based to establish and maintain a differential advantage.  Herborium has secured a pipeline of botanical ingredients based products Herborium Group sells its products in the United States, the United Kingdom, and continental Europe through a network of distributors, specialty retailers, and e-commerce.

Herborium secured a pipeline of botanical ingredient based products in the areas of dermatological needs, Prostate Health (BPH), Liver Diseases, Women’s Health and selected sexual disorders resulting from cardiovascular disease, use of anti-depressants, surgical procedures, and other problems. The longer-term pipeline includes arthritis candidate and the anti-infectious product candidate focused on antibiotic resistant infections. Herborium Managements represents a unique blend of expertise with over 50 years of successful business dealings in Asia, an exceptional track record in pharmacology and drug development, clinical testing and regulatory affairs in the US and Europe, supported by high standards, know how in herbal science and formulation, and specifically Modern Chinese Medicine.

Herborium presently sells its products in the United States, the United Kingdom, and continental Europe through a network of distributors, specialty retailers, and e-commerce. With initial seed investment brought to the Company by Friends and Family and a small professional round, spear-headed by Southridge Investment Group LLC, the Company is ideally positioned for exponential growth in the near future.

Microcapdaily reported on HBRM on December 7 as the stock was moving up out of the triple zeroes stating: “HBRM is moving up the charts in recent weeks as the Company is becoming current on OTCMarkets with the recent filing of a number of quarters including for the period ending August 31, 2020. The stock is quickly attracting a fast growing shareholder base who continues to heavily accumulate. HBRM is making money off its acne product AcnEase recently reporting a net income in the past 3 quarters with revenues of $260,000 for the 3 months ended August 31, 2020. The Company has very little debt and no big notes on the books and states on its website its longer-term pipeline includes arthritis candidate and the anti-infectious product candidate focused on antibiotic resistant infections. The Company has a strong team behind it and is led by its founder, high level biotech exec Agnes Olszewski, PhD, founding partner of ClearSign Diagnostics (CSD) and holding 66,7% preferred A shares of HBRM. Other founding partner CSD James Gilligan holds 33,3% pref A of HRBM and is also co founder of Osteon therapeutics.

On January 8 Agnes Olszewski, HBRM CEO stated in an update: “Despite the impact of Covid-19 and associated ‘lockdowns’, Herborium® financial results actually where significantly improved. Our revenues grew 13% in comparison to 2019, with gross margin increased 14.75%. We ended 2020 with profitable 3rd and 4th quarters and an approximately 2/3rd decrease in our short term debt; all this was achieved without any changes to the capitalization table (i.e. no dilution) or other outside resources. Our major European distribution partner THG (LON), a British e-commerce company went public on London Stock Exchange and is fast becoming one of the world’s leading beauty and wellbeing online retailer. We are prepared to participate in this growth through our ongoing commercial relationship which we hope to expand in the coming year.

As the global dietary supplements market is poised to grow by $26.7 billion during the period spanning 2020-2024, the major shift lies in where this growth will come from. In 2017, 31% of the world’s consumer disposable income originates from Asia. By 2030, Asia is expected to add an additional USD12 trillion in disposable income, which is almost 55% of the global increment. The Asian skincare market is expected to grow by 6% by 2022. To harness this opportunity, in November 2020 Herborium ®signed a master distribution agreement with Phinix Global Pte. Ltd. (“Phinix”).  Phinix Global Pte. Ltd. is a part of GPS Alliance Holdings Limited (AU:GPS) which is listed on the Sydney Stock Exchange. GPS has extensive reach throughout South East Asia . In addition to marketing and distributing Herborium’s products Herborium and GPS are presently discussing additional near term partnerships to foster growth in the US and Asia.  Phinix is presently in the process of registering Herborium’s products in Singapore to make them ready for a rollout in Asian markets in the second quarter of 2021.

Our unique botanicals based acne, Rosacea and oily skin treatment AcnEase® has helped over three quarter of a million women and men of every age and skin tone to achieve healthy skin and healthy self–perception.   However, one product is not enough to justify the growth we want to secure for the company. In December 2020 Herborium launched the first product line extension which is complementary to our Botanical Therpeutic®- AcnEase® .  This product focused on acne scars, marks and other cosmetic imperfections of the skin. The product line utilizes plant based stem cell technology developed by NASA. The product series is already a part of the Asian expansion plan and is the first module in introducing the AcnEase Skin Management System. Additional products in the space are already being reviewed. To keep up with new technological and regulatory opportunities in the US and globally we intend to capitalize on new ingredients such as terpenes and cannabinoids as critical ingredients in the development of these new products.”

Investor sentiment in HBRM is very high:

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HBRM

On February 8 HBRM launched  an antimicrobial, anti-viral, water repellent (Prevents Aerosol Viral Transmission), reusable fabric face mask. The mask will provide protection for yourself and those around you by preventing COVID-19 transmission www.memasklife.com. The Herborium ME-Mask is based on proprietary Japanese technology and has been tested by Intertek www.intertek.com , a Total Quality Assurance provider based in the UK that provides Assurance, Testing, Inspection and Certification services in over 100 countries.

Herborium’s ME-Masks are differentiated from any other standard cloth masks on the market, by their internationally confirmed ability to protect the user as well as others. Through their 2 -in -One double layer innovative technology they show 99.98% Reduction Water Repellant  and retain its beneficial qualities for 30 washes.  The inner layer of the mask uses colloidal copper and colloidal silver known for their antimicrobial and anti-viral properties to enhance the protective value of the mask.  Herborium masks also provide  superb comfort for  prolonged use and are created to prevent and mitigate mask acne.. Consumer’s cost is less than $0.70 per use since Herborium feels responsible to make the product available to a large number of consumers and customers.  Herborium expects to sell the masks using its own e-commerce platform and through the network of existing and new distributors and partners in the US and abroad. According to Polaris Market Research the Face Mask Market will surpass $31.83 Billion by 2027 | CAGR: 24.6%.  With 50% of the US population expected to wear  masks at this time next year, the fastest growth in face mask market is expected in the sector of reusable, personal masks which  are projected to surpass $9 billion in revenues by the end of 2021.  This calculation is based on a rather conservative assumption that each consumer will buy only 5 multi use masks (according to Keybanc Capital Markets).

HBRM CEO Dr. Agnes P. Olszewski stated: “We expect to generate additional, sizable revenues through the sales of our proprietary new masks, while at the same time expanding our product line and reach to  existing and potential new consumers suffering from such skin problems as acne and Rosacea (www.acnease.com). ME-Mask not only offers superb protection against the spread of Covid-19. It is also created to mitigate the occurrence of a new, emerging type of acne, mask acne (maskne) resulting from prolonged wear of facial covering. Providing an important solution to problems facing consumers while growing the company, improving our bottom line and building our brand name is a very beneficial path both – short term and for the company’s future.” concluded Dr Olszewski.

 

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HBRM has skyrocketed up the charts in recent months out of the triple zeroes to recent highs of $0.0072. The stock has been under heavy accumulation recently and volume has picked up substantially since Microcapdaily first covered the stock in December regularly trading billions of shares and several million dollars in daily trading volume. After some recent choppy waters HBRM Investors are looking for a break over $0.0072 highs and confirmation of the next leg up and a powerhouse blue sky breakout on HBRM as so many penny stocks are these days fueled by robinhood and its 100 million new trading accounts take on the bulletin boards. These are different times than just a few short years ago; now penny stocks such as TSNP can achieve a $6 billion plus market valuation and trade $375 million in dollar volume in a day on the bulletin boards. And TSNP has no stronger fundamentals than HBRM does. There is a lot to get excited about on HBRM; The Company has a strong team behind it and is led by its founder, high level biotech exec Agnes Olszewski, PhD, founding partner of ClearSign Diagnostics (CSD) and holding 66% preferred A shares of HBRM. Other founders are partner CSD James Gilligan who is also co-founder of Osteon therapeutics. HBRM management is quickly becoming known for running a very tight ship and for doing things the right way; HBRM is virtually debt free, with a very clean balance sheet and no big notes. Revenues have been growing steadily; HBRM reported (just under a million USD) $993,000 in revenues for fiscal 2020, ended November 30. The Company has a low cost of sales and reported $639,000 in gross income and a net income of $47,000. Unheard of numbers on the otc bulletin boards. HBRM flagship AcnEase® has helped over three quarter of a million women and men of every age and skin tone to achieve healthy skin and healthy self–perception. In December 2020 Herborium launched the first product line extension which is complementary to our Botanical Therpeutic®- AcnEase®. This product focused on acne scars, marks and other cosmetic imperfections of the skin. The product line utilizes plant-based stem cell technology developed by NASA. The product series is already a part of the Asian expansion plan and is the first module in introducing the AcnEase Skin Management System. Additional products in the space are already being reviewed. HBRM recently signed a master distribution agreement with Phinix Global Pte. Ltd; is a part of GPS Alliance Holdings Limited (AU:GPS) which is listed on the Sydney Stock Exchange. GPS has extensive reach throughout South East Asia. In addition to marketing and distributing Herborium’s products Herborium and GPS are presently discussing additional near-term partnerships to foster growth in the US and Asia.  Phinix is presently in the process of registering Herborium’s products in Singapore to make them ready for a rollout in Asian markets in the second quarter of 2021. HBRM sees big things happening this year “2021 will see the unveiling of the new content and content platform utilizing artificial intelligence and cross industry partnerships that will make Herborium attractive not only to the global consumers and customers but also to major social media and medical and wellness services providers. Earlier this month HBRM launched its antimicrobial, anti-viral, water repellent (Prevents Aerosol Viral Transmission), reusable fabric face mask. The mask provides protection for yourself and those around you by preventing COVID-19 transmission The Herborium ME-Mask is based on proprietary Japanese technology and has been tested by Intertek, a Total Quality Assurance provider based in the UK that provides Assurance, Testing, Inspection and Certification services in over 100 countries. Herborium’s ME-Masks are differentiated from any other standard cloth masks on the market, by their internationally confirmed ability to protect the user as well as others. Through their 2 -in -One double layer innovative technology they show 99.98% Reduction Water Repellant  and retain its beneficial qualities for 30 washes. We will be updating on HBRM when more details emerge so make sure you are subscribed to Microcapdaily so you know what’s going on with HBRM.

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Disclosure: we hold no position in HBRM either long or short and we have not been compensated for this article.

 

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Featured

Farmer Brothers (NASDAQ:FARM) Announces $100 Million Sale of Northlake Facility, Shifts Production with Focus on Profitability

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6 hours ago

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June 8, 2023

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Farmer Bros. Co. (NASDAQ: FARM) shares rocketed 88% within the first hour of the opening bell on June 7, 2023.

Farmer Bros. Co. (NASDAQ: FARM) shares rocketed 88% within the first hour of the opening bell on June 7, 2023. This national distributor of coffee and tea intends to sell its direct shipping facility in Northlake for $100 million to TreeHouse Foods (NYQ: THS) and transfer its production operations to Portland, Oregon. The sale includes the 180 employees currently employed at the Northlake plant.

According to $FARM’s CEO Deverl Maserang, this move allows the company to concentrate primarily on its direct store delivery (DSD) business, which is the most profitable and offers the highest growth potential. Maserang stated that the company aims to ensure its direct ship customers are well-served by a national leader while focusing on DSD. After the deal is finalized, Farmer Brothers will relocate its remaining DSD business to its Portland roasting and production plant while maintaining its corporate headquarters in Texas by leasing space in Northlake.

2017 Farmer Brothers first made headlines when it acquired Boyd’s Coffee for nearly $60 million. And just recently, in 2021, Farmer Brothers announced opening a West Coast distribution center. Maserang’s focus is profitability. For a company bringing in an incredible ~496M in revenue annually, you’d think that’s a given. Yet they still reported a ~15M net loss on their June 30th, 2022 earnings, and TTM is ~28M net loss.  

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Farmer Brothers’ direct store delivery business serves coffee, tea, spices, breakfast, and brunch products to 45,000 locations nationwide through a network of 80 independent branches, five distribution centers, and almost 240 routes. Its customer base includes restaurants, food service operators, convenience stores, hotels, casinos, healthcare facilities, and grocery chains.

Founded in 1912, Farmer Brothers is known for its primary brands, such as Farmer Brothers, Artisan Collection by Farmer Brothers, Superior, Metropolitan, China Mist, and Boyd’s. Its sales for fiscal year 2022 reached $469.2 million.

Following the sale of the Northlake facility, the company estimates that its annual revenue will decrease to approximately $350 million. However, as mentioned, their focus is improving profit margins. Chief Financial Officer Scott Drake stated that shifting towards a DSD-focused organization would enhance internal efficiency, reduce operational costs, and increase margins. The company plans to use the proceeds from the sale to pay off debt and streamline its operations.

TreeHouse Foods, headquartered in Oak Brook, Illinois, is a prominent manufacturer of private-label food and beverages in North America. The company operates 26 production facilities in the United States and Canada, including existing locations in Dallas and Carrollton. It was established in 2005 as a spin-off of Dallas-based Dean Foods Co. In 2016, TreeHouse Foods acquired the private brands business from Conagra Brands, marking its most significant acquisition and nearly doubling its size. In 2022, the company reported sales of $3.45 billion.

Analyst Buy Rating Suggests Strong Potential for Growth

As of June 7, 2023, Farmer Bros Co (FARM) had a median target price of $6.00, according to an analyst providing a 12-month price forecast. This indicates a significant increase of 81% compared to the last price of $3.30. The high and low estimates for the stock were also $6.00, reflecting a consensus among analysts regarding FARM’s strong growth potential. An investment analyst polled on the matter has maintained a consistent buy rating for Farmer Bros Co since August. This rating suggests that the company is expected to perform well, and investors are advised to consider purchasing shares. Regarding FARM’s current quarter earnings, the company reported a loss per share of $0.60 and sales of $121.2M. As always, it is essential for investors to carefully evaluate their financial circumstances and risk tolerance before making any investment decisions.

We will update you on FARM when more details emerge, so make sure you are subscribed to Microcapdaily to know what’s happening in the markets!

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Disclosure: We have not been compensated for this article/video. MicroCap Daily is not an investment advisor; this article/video does not provide investment advice. Always do your research, make your own investment decisions, or consult with your nearest financial advisor. This article/video is not a solicitation or recommendation to buy, sell, or hold securities. This article/video is our opinion, is meant for informational and educational purposes only, and does not provide investment advice. Past performance is not indicative of future performance.

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Hoth Therapeutics (NASDAQ: HOTH) Makes Groundbreaking Progress in Alzheimer’s Research through HT-ALZ Therapy

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1 day ago

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June 7, 2023

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Hoth Therapeutics (NASDAQ: HOTH) made significant strides in Alzheimer's disease (AD) with its experimental therapy, HT-ALZ.

Hoth Therapeutics (NASDAQ: HOTH) made significant strides in Alzheimer’s disease (AD) with its experimental therapy, HT-ALZ, which showed promising results in preclinical studies. Following the announcement of these positive outcomes, the company experienced a remarkable 135% share value surge after Tuesday’s opening bell. While Hoth primarily focuses on dermatology, specifically atopic dermatitis and inflammatory skin conditions, their foray into AD research demonstrates their commitment to addressing unmet medical needs.

More on the HT-ALZ Study for Altzheimers Disease (AD)

In a recent study at Washington University in St. Louis, HT-ALZ showcased encouraging effects, particularly in improving spatial memory, with the higher dosage proving the most effective. Alzheimer’s disease is a degenerative neurological condition characterized by the accumulation of amyloid β (Aβ) plaques and neurofibrillary tangles of Tau protein in the brain, leading to symptoms such as dementia. Hoth’s initial data demonstrated a significant reduction in Aβ levels in both male and female mice with AD after acute treatment with HT-ALZ, compared to the placebo and baseline Aβ levels.

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Hoth Therapeutics has completed several behavioral tests and looks forward to sharing more data as it becomes available. This significant progress in their AD research highlights the company’s dedication to developing potential therapies for this debilitating disease.

Driving Forces Behind the Expansion of Alzheimer’s Disease Research

Alzheimer’s disease has been receiving increased attention from preclinical biotech companies for several reasons:

  • Growing prevalence: Alzheimer’s disease is a significant and escalating public health issue due to its increasing prevalence worldwide. As populations age, the incidence of Alzheimer’s is expected to rise, creating a greater need for effective treatments and interventions.
  • High unmet medical need: There is no cure for Alzheimer’s disease, and the available treatments only provide limited symptomatic relief. This unmet medical need presents an opportunity for biotech companies to develop innovative therapies that can potentially slow down the progression of the disease or target its underlying causes.
  • Advancements in understanding: Over the years, significant progress has been made in unraveling the complex mechanisms and underlying pathology of Alzheimer’s disease. This improved understanding of the disease has sparked renewed interest among biotech companies, as it provides a foundation for the development of novel therapeutic approaches.
  • Technological advancements: The advancements in various scientific and technical fields, such as genomics, proteomics, and imaging techniques, have facilitated better disease characterization and identification of potential drug targets. These tools and technologies enable biotech companies to conduct more detailed research and develop therapies targeting specific pathways or biomarkers in Alzheimer’s.
  • Supportive regulatory environment: Regulatory agencies have recognized the urgent need for effective Alzheimer’s treatments and are willing to support and expedite the development and approval processes. This has encouraged biotech companies to invest in Alzheimer’s research and development.

Centers for Medicare & Medicaid Services (CMS) reimbursement For Alzheimer’s Disease (AD)

On a related note, the Centers for Medicare & Medicaid Services (CMS) has announced plans to broaden coverage for Alzheimer’s drugs once they receive full approval from the Food and Drug Administration (FDA). However, CMS’s proposal requires patients to participate in registries that collect real-world data. The first drug that could be covered under this plan is Eisai’s Leqembi, pending FDA approval. CMS’s decision aims to ensure coverage for Medicare Part B enrollees who meet specific criteria, including participation in registries to gather evidence on drug effectiveness.

While the registry requirement has faced criticism as an unnecessary barrier, CMS officials defend it, citing the importance of real-world evidence in transforming patient care. CMS collaborates with multiple organizations to establish registries, but more details and enrollment information are needed.

The broader CMS reimbursement for Alzheimer’s drugs is expected to benefit Eisai, Biogen, and other companies in the anti-amyloid space. Given that over 5 million Medicare beneficiaries are affected by Alzheimer’s, the market potential is substantial. Analysts project significant revenue for Eisai and Biogen from Leqembi, with estimated annual sales in the United States reaching billions of dollars.

Conclusion

In conclusion, the combination of factors such as the growing prevalence of Alzheimer’s disease, unmet medical needs, advancements in understanding, technological progress, and supportive regulations have contributed to the increased attention and investment in AD research by preclinical biotech companies. Hoth Therapeutics’ remarkable improvement in its HT-ALZ study exemplifies the significance of these advancements and highlights the company’s potential in addressing this challenging disease.

We will update you on HOTH when more details emerge, so make sure you are subscribed to Microcapdaily to know what’s happening in the markets!

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Disclosure: We have not been compensated for this article/video. MicroCap Daily is not an investment advisor; this article/video does not provide investment advice. Always do your research, make your own investment decisions, or consult with your nearest financial advisor. This article/video is not a solicitation or recommendation to buy, sell, or hold securities. This article/video is our opinion, is meant for informational and educational purposes only, and does not provide investment advice. Past performance is not indicative of future performance.

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Emerging Markets

Strong Financials and Social Media Buzz Propel Forza X1, Inc. (NASDAQ:FRZA) to New Heights

Published

2 days ago

on

June 6, 2023

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Forza X1, Inc. (Nasdaq: FRZA) shares witnessed an exceptional and unforeseen surge in its share price, skyrocketing by 151% early morning of June 5th, 2023.

Forza X1, Inc. (Nasdaq: FRZA) shares witnessed an exceptional and unforeseen surge in its share price, skyrocketing by 151% early morning of June 5th, 2023. This surge was accompanied by an unprecedented level of trading volume, marking a significant departure from the previously observed average. Notably, the stock’s trading volume had been relatively low in recent months, with numerous days experiencing trading activity of less than 1,000 shares. Without any apparent news or filings, the cause behind this sudden surge remains a subject of intrigue and speculation among market participants.

What happened?

Firstly it’s important to note that $FRZA is a spin-off of Twin Vee PowerCats Co. (Nasdaq: VEEE). $VEEE is the parent company handling the design, manufacturing, and distribution of recreational and commercial, off-shore power catamaran boats while $FRZA is the new developer of electric sport boats with a mission to accelerate the adoption of sustainable recreational boating.

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Upon examination of the company, no discernible filings or press releases have been identified to account for today’s remarkable shift. However, it seems that a tweet disseminated by the company caught the attention of retail investors, subsequently generating an enormous surge in trading volume.

This recent occurrence serves as yet another compelling demonstration of the significant impact that the retail community can exert when armed with information regarding a small float micro-cap stock, particularly when the conditions align favorably and validate the potential for substantial gains. The tweet, skillfully crafted by the company’s social media team, featured a compelling GIF and clever “Don’t miss the boat” blurb, demonstrating a keen understanding of their business’s essence. 

The timely and engaging content proved to be a perfect execution, capturing the attention and imagination of investors in a manner that resonated deeply with the nature of the company’s operations.

Overview of Twin Vee PowerCats Co. Financials

Could the surge in share price also reflect the market’s enthusiastic response to Twin Vee’s strong financial results for the first quarter of 2023? 

On May 15, 2023, Twin Vee PowerCats Co. released its financials demonstrating a substantial increase in net revenue and notable improvements in the gas-powered boat segment.

https://twitter.com/JohnZidar/status/1665685698400141313?s=20

Twin Vee PowerCats Co. (Nasdaq: VEEE) reported strong financial results for the first quarter ended March 31, 2023. The company experienced a notable 51% increase in net revenue, reaching $8.9 million compared to $5.9 million in the same period last year. The gas-powered boat segment achieved a net income of $181,000, significantly improving from the net loss of $626,000 in Q1 2022.

However, as per GAAP accounting policy, Twin Vee’s consolidated financial statements resulted in a total net loss of $1.8 million for the quarter, primarily due to their majority ownership in Forza X1, Inc. (Nasdaq: FRZA), an electric boat company. Twin Vee reported cash, cash equivalents, restricted cash, and marketable securities of approximately $12.6 million as of March 31, 2023.

The company has been expanding its product lineup, including introducing the Aquasport mono-hull boat brand. Twin Vee is confident these efforts will contribute to business scalability and brand growth. They aim to optimize inventory levels and production costs while closely monitoring market conditions, dealer inventories, and economic indicators.

Financial highlights for Q1 2023

  • Total revenue: $8,877,000 (51% increase compared to Q1 2022)
  • Gross profit: $3,222,000
  • Net income from gas-powered boats segment: $182,000
  • Net loss from Forza X1 (electric boat entity): $2,005,000
  • Loss from Fix My Boat (franchise business): $5,000
  • Adjusted net loss (excluding non-cash charges): $1,347,000
  • Adjusted net income from gas-powered boats segment: $265,000

Twin Vee’s consolidated cash, cash equivalents, restricted cash, and marketable securities were $23,457,000 as of March 31, 2023. Forza X1 reported $10,683,000 in the same category, while Twin Vee’s core business had $12,643,000, and Fix My Boat had approximately $132,000.

We will closely monitor the performance of Forza X1, Inc. (Nasdaq: FRZA) in the coming weeks, considering that it is a spinoff from its parent company. It is crucial to conduct thorough research, particularly for companies like FRZA that have yet to achieve profitability. However, it is worth noting that the parent company has been making notable progress, as evidenced by its recent financial results, which revealed a substantial increase in the bottom line.

We will update you on FRZA when more details emerge, so make sure you are subscribed to Microcapdaily to know what’s happening in the markets!

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Disclosure: We have not been compensated for this article/video. MicroCap Daily is not an investment advisor; this article/video does not provide investment advice. Always do your research, make your own investment decisions, or consult with your nearest financial advisor. This article/video is not a solicitation or recommendation to buy, sell, or hold securities. This article/video is our opinion, is meant for informational and educational purposes only, and does not provide investment advice. Past performance is not indicative of future performance.

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