Brownie's Marine Group, Inc.

What they do

Brownie's Marine Group, Inc. owns five subsidiaries: Brownie's Third Lung (surface-supplied air systems), BLU3 (ultra-portable tankless dive systems), LW Americas (high-pressure compressor distribution and service), Submersible Systems (redundant air tank systems, e.g., Spare Air), and Live Blue (guided tours and retail). The company manufactures and sells these products from facilities in Pompano Beach, Florida, Huntington Beach, California, and a retail location in Lauderdale-By-The-Sea, Florida. It also serves as exclusive distributor for L&W Compressors in the Americas and for Bright Weights in the U.S. and Caribbean.

Revenue drivers

• Brownie's Third Lung (Surface Supplied Air) — Designs and manufactures surface-supplied air systems including the patented Sea Lion and BIAS boat-integrated kits, historically gasoline-powered but transitioning to battery configurations. This segment saw a slight revenue decrease in Q1 2026 compared to Q1 2025.
• LW Americas (High Pressure Gas Systems) — Exclusive distributor and service provider for L&W Compressors across North, Central, and South America, serving diving, fire, industrial, oil & gas, defense, and aviation sectors; revenue increased in Q1 2026.
• BLU3 (Ultra-Portable Tankless Dive Systems) — Develops backpack-portable, battery-powered underwater breathing systems with software-driven control; launched the Nomad 3X Battery in Q3 2025 with triple the run time; revenue increased in Q1 2026.
• Submersible Systems (Redundant Air Tanks) — Manufactures miniature and emergency breathing devices, including the recently launched HEED3 product, which contributed to revenue growth from new customers in Q1 2026.

Recent performance

For the fiscal year ended December 31, 2025, revenue was $7.5 million, down 7.99% from $8.2 million in 2024, and the net loss improved to $105,149 from $240,599 in 2024. Gross profit margin declined from 40.4% in 2024 to 37.4% in 2025. In Q1 2026, net revenues increased 38.32% year-over-year, driven by gains in BLU3, SSI, and LWA, offset by a slight decrease in Brownie's Third Lung. As of June 30, 2026, the company had $2.0 million in quarterly revenue, total assets of $5.9 million, total liabilities of $3.2 million, and long-term debt of $54,804.

Strategy

The company is strategically transitioning from legacy gasoline-powered systems to battery-powered, software-enabled, and electrically driven technologies, leveraging shared engineering, IP, and distribution across subsidiaries. It is expanding distribution networks, including for L&W compressors, and developing new products like a battery-powered high-pressure fill compressor using 48-volt architecture. Recent acquisitions, such as the purchase of Sunrise Paddleboards' assets, aim to grow the Live Blue guided tour and retail operation. The company is also building a multi-tier distribution network for LWA and pursuing OEM integrations for its Sea Lion architecture.

Risks

• Going concern — Auditors have expressed substantial doubt about the company's ability to continue as a going concern due to recurring losses and an accumulated deficit of $18,031,358 as of December 31, 2025.
• History of losses — The company has incurred net losses every year from 2021 through 2025, with operating expenses exceeding gross profit in 2025.
• Revenue decline — Annual revenue decreased by 7.99% in 2025, and gross profit margin contracted from 40.4% to 37.4%.
• Dependence on new products — Growth relies on successful adoption of new products like the HEED3 and Nomad 3X Battery, which may not gain traction.

Outlook

Management expects continued growth from BLU3, SSI, and LWA, with new products like HEED3 and the Nomad 3X Battery driving sales. The acquisition of Sunrise Paddleboards is expected to enhance Live Blue's tour and retail offerings. The company received a $494,828.78 ERC refund in Q1 2026, and further refunds may be forthcoming for SSI, providing additional cash. However, management acknowledges that there are no assurances revenues will reach levels sufficient to support profitable operations.