WORKHORSE™ Q3 2022 Earnings Call November 8, 2022 Today's Presenters 2 Rick Dauch CEO • 27 years automotive industry experience • 15 years serving in CEO roles • Multiple Public/Private Board memberships Bob Ginnan CFO • 22 plus years of senior finance and leadership experience • Refined capital structures for firms in multiple industries • Executed multiple accounting and information technology ("IT") system installations Stan March Vice President, Corporate Development • 26 years executive experience acro ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file number: 001-37673 WORKHORSE GROUP INC. (Exact name of registrant as specified in its charter) Nevada 26-1394771 (State or ot ...

Workhorse Group, Inc. (NASDAQ:WKHS) Q2 2022 Earnings Conference Call August 9, 2022 10:00 AM ET Company Participants Stan March - VP, Corporate Development & Communications Richard Dauch - President, CEO & Director Robert Ginnan - CFO Conference Call Participants Jeffrey Osborne - Cowen and Company Gregory Lewis - BTIG Colin Rusch - Oppenheimer Michael Shlisky - D.A. Davidson & Co. Christopher Souther - B. Riley Securities Operator Ladies and gentlemen, greetings, and welcome to Workhorse Group's Second Qua ...

WORKHORSE™ Q2 2022 Earnings Call August 9,2022 Today's Presenters 2 Rick Dauch CEO 26 years automotive industry experience 14 years serving in CEO roles Multiple Public/Private Board memberships Bob Ginnan CFO 21 plus years of senior finance and leadership experience Refined capital structures for firms in multiple industries Executed multiple accounting and information technology ("IT") system installations Stan March Vice President, Corporate Development 25 years executive experience across multiple indus ...

For the transition period from __________ to __________ Commission file number: 001-37673 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 WORKHORSE GROUP INC. (Exact name of registrant as specified in its charter) Nevada 26-1394771 (State or other j ...

Workhorse Group Inc. (NASDAQ:WKHS) Q1 2022 Earnings Conference Call May 10, 2022 10:00 AM ET Company Participants Stan March – Vice President-Corporate Development and Communications Rick Dauch – Chief Executive Officer Bob Ginnan – Chief Financial Officer Conference Call Participants Colin Rusch – Oppenheimer and Company Jeff Osborne – Cowen and Company Craig Irwin – ROTH Capital Partners Greg Lewis – BTIG Mike Shlisky – D.A. Davidson Operator Ladies and gentlemen, greetings, and welcome to the Workhorse G ...

WORKHORSE™ Q1 2022 Earnings Call May 10, 2022 Today's Presenters 2 Rick Dauch CEO 26 years automotive industry experience 14 years serving in CEO roles Multiple Public/Private Board memberships Bob Ginnan CFO 21 plus years of senior finance and leadership experience Refined capital structures for firms in multiple industries Executed multiple accounting and information technology ("IT") system installations Stan March Vice President, Corporate Development 25 years executive experience across multiple indust ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file number: 001-37673 WORKHORSE GROUP INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of in ...

Financial Data and Key Metrics Changes - Sales for Q4 2021 were recorded at a negative $2 million, down from $0.7 million in Q4 2020, primarily due to decreased volume and increased vehicle returns related to the C1000 recall [39][40] - Cost of sales increased significantly to $100 million from $7 million in the same period last year, driven by non-cash charges totaling $94 million related to the C1000 [41] - SG&A expenses rose to $15.7 million from $4.7 million, attributed to increased selling costs, legal fees, and employee-related expenses due to a larger executive team [42] - Net loss for Q4 2021 was $156.1 million compared to a net income of $280.5 million in the same period last year [45] - For the full year 2021, net loss was $401.3 million, or a loss of $3.12 per diluted share, compared to a net income of $69.8 million in 2020 [53] Business Line Data and Key Metrics Changes - The company plans to limit production of the C1000 model to 50 to 75 units by year-end 2022, focusing instead on developing two new truck chassis platforms [24][25] - The W56 chassis platform is expected to launch in Q3 2023, targeting the Class 5 and Class 6 delivery market segments, with an estimated total addressable market of approximately $1.7 billion per year [26] - The W34 chassis, aimed at Class 3 and 4 vehicles, is projected to start production in 2024, with an addressable market of about $10.4 billion per year [28] Market Data and Key Metrics Changes - The company is experiencing strong industry fundamentals driving the transition from internal combustion engine (ICE) vehicles to electric vehicles (EVs) [15] - The W750, a Class 4 vehicle, is set to bridge the gap between the C1000 and future platforms, with deliveries expected to begin in Q3 2022 [29][30] Company Strategy and Development Direction - The company is transitioning from a prototype technology start-up to a full-fledged commercial vehicle OEM, focusing on a revised strategic product portfolio [13][21] - A new technical center has been opened in Wixom, Michigan, to enhance design, engineering, and testing capabilities, with plans to be fully operational by Q3 2022 [18] - The company aims to consolidate its headquarters in Sharonville, Ohio, to improve efficiency and teamwork [19] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges ahead but is committed to building a new foundation for growth and executing a clear product roadmap [58] - The company is focused on enhancing its financial position and operating efficiency while investing in people, products, and processes [56] - Management expects to manufacture and sell at least 250 vehicles in 2022, generating a minimum of $25 million in revenue, with production backloaded to the second half of the year [55][86] Other Important Information - The company has secured approximately $201.6 million in cash and cash equivalents as of December 31, 2021, which is deemed sufficient for 2022 operations [54] - The company plans to establish an at-the-market equity program to opportunistically raise capital in the coming quarters [54] Q&A Session Summary Question: Update on supply chain qualification and design validation - Management is working on multiple fronts, including the W750 with GreenPower and the W56 chassis, with plans to source parts by mid-March [60][62] Question: Anticipated cash needs for operational cash flow positivity - The company acknowledges current cash burn but believes the $200 million cash balance is sufficient for the near term, with plans for future capital raises [64] Question: Key roles still to fill in the management team - The company is looking to fill three key roles: a CIO, sales leadership, and a Director of logistics and supply chain management [66] Question: Strategic partnership opportunities beyond GreenPower - Management is open to exploring additional partnerships, leveraging the expanded Union City facility and workforce [69] Question: Expected throughput at the Union City facility - The facility has a potential throughput of at least 10,000 units, depending on operational shifts and production needs [71] Question: Pricing and gross margins for upcoming vehicles - While specific pricing details are not disclosed, management assures that the W750 will be a profitable vehicle [74] Question: Status of customer orders and backlog - The company is in the process of converting orders from the C1000 to the W750, with confidence in meeting contractual obligations [92]

Part I [Business](index=5&type=section&id=Item%201.%20Business) Workhorse designs and manufactures all-electric delivery trucks and drone systems, shifting to new W56/W34 platforms post-C-1000 recall - The company's primary focus is providing sustainable and cost-effective solutions to the commercial transportation sector by designing and manufacturing all-electric delivery trucks and drone systems[14](index=14&type=chunk) - A revised strategic product roadmap focuses on two new truck chassis platforms: the W56, with production expected in 2023, and the W34, with production expected in 2024[16](index=16&type=chunk) - To accelerate market entry in 2022, Workhorse entered a strategic supply agreement with GreenPower Motor Company for a Class 4 step van, to be branded as the W750[17](index=17&type=chunk)[33](index=33&type=chunk) - In September 2021, the company suspended deliveries and recalled all C-1000 vehicles due to non-compliance with Federal Motor Vehicle Safety Standards (FMVSS) The C-1000 is now considered a limited production vehicle, and manufacturing focus will shift to new platforms[18](index=18&type=chunk)[19](index=19&type=chunk) - The company is developing the HorseFly™ Unmanned Aerial System (UAS) for package delivery and is pursuing FAA Type Certification[24](index=24&type=chunk)[26](index=26&type=chunk) - As of December 31, 2021, the company had **221 full-time employees**, none of whom are represented by a labor union[56](index=56&type=chunk) [Risk Factors](index=13&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant operational, financial, and regulatory risks, including financing, product roadmap, and C-1000 recall - The company may need to raise additional financing in 2022 and beyond, and there is no certainty it will be available on acceptable terms[67](index=67&type=chunk) - There are significant execution risks associated with the new strategic product roadmap, which involves developing two new truck chassis platforms (W56 and W34) for production in 2023 and 2024[68](index=68&type=chunk) - The company has a history of unprofitability, with an accumulated deficit of **$510.4 million** as of December 31, 2021, and has experienced negative cash flow from operating activities, which was **$132.6 million** in 2021[70](index=70&type=chunk)[72](index=72&type=chunk) - Regulatory risks are high, demonstrated by the September 2021 recall of C-1000 vehicles for non-compliance with FMVSS The company is also cooperating with SEC and DOJ investigations regarding the USPS contract bidding process and revenue recognition[75](index=75&type=chunk)[78](index=78&type=chunk)[80](index=80&type=chunk) - The business is exposed to supply chain risks, including reliance on key suppliers for critical components like battery packs and potential global shortages of materials such as microchips[104](index=104&type=chunk)[105](index=105&type=chunk) - The conversion of the company's outstanding convertible notes could dilute the ownership interest of existing stockholders and potentially depress the stock price[123](index=123&type=chunk) [Unresolved Staff Comments](index=24&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports that it has no unresolved staff comments from the SEC - None[129](index=129&type=chunk) [Properties](index=24&type=section&id=Item%202.%20Properties) Workhorse operates corporate, R&D, and manufacturing facilities in Ohio, Indiana, and Michigan, deemed adequate for current needs - The company's corporate headquarters and research and development facility are located in Southwest Ohio, and its primary manufacturing facility is in Union City, Indiana[130](index=130&type=chunk) [Legal Proceedings](index=24&type=section&id=Item%203.%20Legal%20Proceedings) This section refers to Note 18 of financial statements for material legal proceedings and MD&A for regulatory matters - For a description of material legal proceedings, the report refers to Note 18, Commitments and Contingencies, in the consolidated financial statements[132](index=132&type=chunk) [Mine Safety Disclosures](index=24&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[133](index=133&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=25&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Workhorse common stock trades on NASDAQ (WKHS); no dividends paid or anticipated, earnings retained for expansion - The company's common stock is traded on the NASDAQ Capital Market under the symbol "**WKHS**"[135](index=135&type=chunk) - As of February 1, 2022, there were approximately **200 shareholders of record**[136](index=136&type=chunk) - The company has never declared or paid cash dividends on its common stock and does not anticipate paying any in the foreseeable future[137](index=137&type=chunk) [Reserved](index=26&type=section&id=Item%206.%20Reserved) This item is intentionally left blank [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) 2021 saw C-1000 recall, negative sales, and a large net loss, despite increased cash from LMC sale and financing [Overview and 2021 Highlights](index=27&type=section&id=Overview%20and%202021%20Highlights) 2021 focus was C-1000 compliance, production increase, and new W56/W34 product roadmap with new leadership - The company's 2021 focus was on C-1000 compliance, increasing vehicle production, and developing next-generation products[147](index=147&type=chunk) - A revised product roadmap was developed, focusing on two new truck platforms: the W56 (production expected in 2023) and the W34 (production expected in 2024)[148](index=148&type=chunk) - A new executive leadership team was appointed to support the company's transition to an efficient manufacturing operation[149](index=149&type=chunk) [Management Opportunities, Challenges and Risks and 2022 Outlook](index=27&type=section&id=Management%20Opportunities%2C%20Challenges%20and%20Risks%20and%202022%20Outlook) C-1000 recall and strategic shift led to significant financial charges; 2022 focuses on new W56/W34 platforms - In Q3 2021, the company suspended deliveries of its C-1000 vehicles and recalled all **41 delivered units** due to non-compliance with Federal Motor Vehicle Safety Standards (FMVSS)[150](index=150&type=chunk) - Following extensive testing, the C-1000 platform was deemed a low-volume, limited cargo capacity vehicle, leading to a decision to transition manufacturing to new platforms[153](index=153&type=chunk) Financial Impact of C-1000 Production Shift (as of Dec 31, 2021) | Charge Type | Amount | Source | | :--- | :--- | :--- | | Inventory Reserve | $77.0 million | Excess or obsolete inventories exceeding planned production | | Prepaid Purchases Reserve | $23.9 million | Deposits on planned future inventory purchases no longer needed | | Asset Impairment | $6.8 million | Tooling and machinery related to C-Series production no longer intended for use | [Results of Operations](index=31&type=section&id=Results%20of%20Operations) 2021 saw negative net sales, surging cost of sales, and a **$401.3 million** net loss, due to C-1000 recall and LMC investment loss Consolidated Statements of Operations Summary | Metric | 2021 | 2020 | | :--- | :--- | :--- | | Sales, net | $(851,922) | $1,392,519 | | Cost of sales | $132,492,110 | $13,067,108 | | Gross loss | $(133,344,032) | $(11,674,589) | | Loss from operations | $(185,114,854) | $(40,981,178) | | Net (loss) income | $(401,344,813) | $69,776,499 | - Sales decreased by **$2.2 million** year-over-year, becoming negative due to sales returns and allowances from the C-1000 vehicle recall[169](index=169&type=chunk) - Cost of sales increased by **$119.4 million**, primarily due to a **$75.0 million** inventory reserve, a **$23.9 million** prepaid purchases reserve, and a **$6.8 million** impairment charge related to the C-Series platform[171](index=171&type=chunk) - Other loss (income) changed unfavorably by **$548.5 million**, driven by a **$225.4 million** loss from the investment in Lordstown Motors Corp (LMC) in 2021, compared to a **$323.1 million** gain in 2020[179](index=179&type=chunk) [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) Cash increased to **$201.6 million** by year-end 2021, driven by restricted cash release and LMC sale, sufficient for next 12 months Cash and Cash Equivalents | Date | Amount | | :--- | :--- | | December 31, 2021 | $201.6 million | | December 31, 2020 | $46.8 million | - The increase in cash was mainly due to the release of **$194.4 million** of restricted cash from the October 2020 convertible notes and proceeds of **$105.1 million** from the sale of the LMC investment[183](index=183&type=chunk) - Management believes existing capital resources are sufficient to support funding requirements for at least the next twelve months[184](index=184&type=chunk) - Expected capital expenditures for 2022 are between **$25.0 million** and **$35.0 million** to upgrade facilities in Indiana, Ohio, and Michigan[186](index=186&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=37&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's investment portfolio minimizes interest rate risk through short-term securities, with no significant foreign currency exposure - The company's investment portfolio is maintained in a variety of securities, including money market funds and government/non-government debt with maturities of less than one year, to minimize interest rate risk[215](index=215&type=chunk) - Due to the short-term nature and low yield of its investments, management believes there is no material exposure to interest rate or market risk[215](index=215&type=chunk) - The company has not had any significant exposure to foreign currency rate fluctuations as it transacts business primarily in the United States[216](index=216&type=chunk) [Financial Statements and Supplementary Data](index=38&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents audited consolidated financial statements for 2021, including the independent auditor's report and detailed notes - The financial statements were audited by Grant Thornton LLP, which issued an unqualified opinion on both the financial statements and the effectiveness of internal control over financial reporting as of December 31, 2021[221](index=221&type=chunk)[229](index=229&type=chunk) - Critical audit matters identified were the fair value determination of the convertible notes and the valuation of inventory reserves, both of which involved significant management judgment and complex assumptions[232](index=232&type=chunk)[233](index=233&type=chunk)[235](index=235&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=68&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) No changes in or disagreements with accountants on accounting principles, financial disclosure, or auditing scope were reported - None[381](index=381&type=chunk) [Controls and Procedures](index=68&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded disclosure controls and internal control over financial reporting were effective as of December 31, 2021, with no material changes - Management, including the CEO and CFO, concluded that as of December 31, 2021, the company's disclosure controls and procedures were effective at a reasonable assurance level[383](index=383&type=chunk) - Management concluded that the company's internal control over financial reporting was effective as of December 31, 2021, based on the COSO framework[385](index=385&type=chunk) - There were no changes in internal control over financial reporting during the fourth quarter of 2021 that materially affected, or are reasonably likely to materially affect, internal controls[388](index=388&type=chunk) [Other Information](index=69&type=section&id=Item%209B.%20Other%20Information) The company reports no other information in this section - None[389](index=389&type=chunk) [Disclosure Regarding Foreign Jurisdictions That Prevent Inspections](index=69&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20That%20Prevent%20Inspections) This item is not applicable to the company - None[390](index=390&type=chunk) Part III Part III incorporates information on directors, executive compensation, security ownership, and accountant fees from the 2022 Proxy Statement [Directors, Executive Officers and Corporate Governance](index=70&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the 2022 Proxy Statement - Information regarding directors, executive officers, and corporate governance will be included in the 2022 Proxy Statement and is incorporated herein by reference[393](index=393&type=chunk) [Executive Compensation](index=70&type=section&id=Item%2011.%20Executive%20Compensation) Information on executive compensation is incorporated by reference from the 2022 Proxy Statement - Information regarding executive compensation will be included in the 2022 Proxy Statement and is incorporated herein by reference[394](index=394&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=70&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information on security ownership is incorporated by reference from the 2022 Proxy Statement - Information regarding security ownership will be included in the 2022 Proxy Statement and is incorporated herein by reference[395](index=395&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=70&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information on related party transactions and director independence is incorporated by reference from the 2022 Proxy Statement - Information regarding certain relationships, related transactions, and director independence will be included in the 2022 Proxy Statement and is incorporated herein by reference[396](index=396&type=chunk) [Principal Accountant Fees and Services](index=70&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information on principal accountant fees and services is incorporated by reference from the 2022 Proxy Statement - Information regarding principal accountant fees and services will be included in the 2022 Proxy Statement and is incorporated herein by reference[397](index=397&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=71&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists financial statements, schedules, and exhibits filed or incorporated by reference, including corporate governance documents - This item lists all exhibits filed as part of the annual report, including the Certificate of Incorporation, Bylaws, material contracts, and various certifications[401](index=401&type=chunk) [Form 10-K Summary](index=73&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company has not provided a summary for its Form 10-K - None[405](index=405&type=chunk)