10. Commitments and Contingencies

Repurchase Obligations

Under certain conditions, the Company is obligated to repurchase new inventory repossessed from dealerships by financial institutions that provide credit to the Company’s dealers. The maximum obligation of the Company under such floor plan agreements totaled $10,437,389 or 65 units, and $10,265,229 or 60 units, as of March 31, 2025 and December 31, 2024, respectively. The Company did not repurchase any inventory and incurred no impact from repurchase events during the three months ended March 31, 2025 and year ended December 31, 2024.

On April 21, 2025, Northpoint Commercial Finance LLC (“Northpoint”) has come into possession of certain Twin Vee and Aquasport inventory of United Marine and Storage LLC, a former dealer of Twin Vee PowerCats. Northpoint is requesting Twin Vee PowerCats Co. to take possession of the inventory and to repurchase the inventory in accordance with the Repurchase Agreement between Twin Vee PowerCats Co. and Northpoint. The Company is evaluating the condition of the inventory for purposes of determining the repurchase obligation. The Company expects that the repurchase obligation will be approximately $546,000.

Litigation

The Company is currently involved in various civil litigation in the normal course of business none of which is considered material.

Irrevocable line of credit

As of March 31, 2025 the Company had $215,117 of restricted cash included in cash, cash equivalents and restricted cash. This amount represents a deposit to secure an irrevocable letter of credit for a supplier contract with Yamaha. These deposits are held in an interest-bearing account. As of December 31, 2024, the Company had $215,117 of restricted cash.