Core Insights - Workhorse Group Inc. has announced a strategic collaboration with Kingsburg Truck Sales to enhance the adoption of zero-emission trucks in California, specifically through the purchase of 141 units of the Workhorse W4 CC trucks, expected for delivery in 2024 [1][17] - The collaboration is aimed at addressing the needs of commercial truck and small fleet owners amid California's stringent air quality regulations, while also streamlining Workhorse's operations following the divestiture of its Aero business [17][20] Company Developments - Kingsburg Truck Sales has committed to purchasing a significant number of Workhorse W4 CC trucks, reflecting confidence in the changing market for work trucks due to Advanced Clean Fleet (ACF) regulations [1][3] - Workhorse anticipates that the W4 CC will qualify for up to $60,000 in incentives through California's Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP), which is crucial for customer acquisition [4][10] - The divestiture of the Aero business is expected to provide monthly cost savings of approximately $375,000, allowing Workhorse to focus more on its commercial electric vehicle (EV) product roadmap [20][21] Product Offerings - The Workhorse W4 CC is designed to meet various industry needs with a range of body options, including Flatbed, Utility Bed, and Landscape Body, ensuring quick delivery for work truck owners [19][11] - The W4 CC features a range of up to 150 miles and compatibility with Level 2 and Level 3 charging, making it suitable for local delivery routes while helping customers comply with ACF regulations [10][11] Market Positioning - Kingsburg Truck Sales has been recognized as Workhorse's 2023 dealer of the year, highlighting its pivotal role in facilitating multiple purchase orders for Workhorse vehicles since becoming the first certified EV dealer in California [18] - The collaboration with Kingsburg is part of Workhorse's broader strategy to drive the adoption of zero-emission commercial vehicles and expand its dealer network [6][13]

Financial Data and Key Metrics Changes - Sales net of returns and allowances for Q1 2024 were $1.4 million, down from $1.7 million in the same period last year, primarily due to lower W4 CC vehicle sales [43] - Net loss for Q1 2024 was $29.2 million compared to $25 million in the same period last year [45] - Cash and cash equivalents as of March 31, 2024, were $6.7 million, with net inventory at $49.9 million [46] Business Line Data and Key Metrics Changes - The company has received orders for a total of 68 W56 step vans per day, indicating a strong sales pipeline [5] - Research and development expenses decreased to $3.5 million from $7.2 million year-over-year, reflecting reduced consulting and prototype costs [44] - Selling, general and administrative expenses decreased to $14.1 million from $14.7 million in the same period last year, driven by a decrease in employee compensation [66] Market Data and Key Metrics Changes - Fleets in California must register their entire fleet and target a 9% EV adoption rate by December 31, 2024, creating administrative challenges for smaller fleets [7] - The company is expanding its dealer network, adding new locations in New York City and the Midwest, aiming for 15 to 20 dealers by the end of 2024 [36] Company Strategy and Development Direction - The company is transitioning to a less capital-intensive Drones as a Service business model [3] - Focus remains on advancing the product roadmap, securing new orders, and delivering products to customers [69] - The company aims to emerge as a leader in the Class 4-6 step van and work truck segments, with a commitment to EV technology [70] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the transition to EV technologies is starting, albeit slower than expected, with discussions indicating a gradual shift among fleet customers [91] - The company is prepared for the transition and is working closely with suppliers and stakeholders to navigate challenges [24] Other Important Information - The company has temporarily furloughed employees at the Union City plant but is beginning to recall staff as orders increase [65] - The company is assessing the impact of battery tariffs and exploring alternative sourcing options for batteries [106][107] Q&A Session Summary Question: What is the current burn rate? - The burn rate for Q1 was approximately $5.5 million, expected to decrease to below $5 million in Q2 as cost reductions take effect [14][15] Question: How much finished goods inventory is on hand? - Finished goods inventory is about $20 million, with 75% in raw materials, allowing for the completion of 20 to 30 trucks [17] Question: Are recent orders contingent on subsidies? - Most W4 CC orders are tied to California HVIP incentives, while some W56 orders are not [95]

Company Performance - Workhorse Group reported a quarterly loss of $0.10 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.08, representing an earnings surprise of -25% [1] - The company posted revenues of $1.34 million for the quarter ended March 2024, missing the Zacks Consensus Estimate by 55.37%, and down from $1.69 million a year ago [2] - Over the last four quarters, Workhorse has surpassed consensus EPS estimates only once and has topped consensus revenue estimates just once [2] Stock Movement and Outlook - Workhorse shares have declined approximately 33.3% since the beginning of the year, contrasting with the S&P 500's gain of 11.2% [3] - The company's earnings outlook is mixed, with the current consensus EPS estimate for the coming quarter at -$0.08 on $4.5 million in revenues, and -$0.30 on $65 million in revenues for the current fiscal year [7] Industry Context - The Automotive - Original Equipment industry, to which Workhorse belongs, is currently ranked in the bottom 45% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact investor sentiment [5]

CINCINNATI, May 20, 2024 (GLOBE NEWSWIRE) -- Workhorse Group Inc. (Nasdaq: WKHS) ("Workhorse" or "the Company"), an American technology company focused on pioneering the transition to zero-emission commercial vehicles, today reported financial results for the first quarter ended March 31, 2024. Management Commentary "During the first quarter, we took important strategic and financial actions to better position Workhorse for the future while continuing to hit major milestones," said Workhorse CEO Rick Dauch. ...

CINCINNATI, May 20, 2024 (GLOBE NEWSWIRE) -- Workhorse Group Inc. (Nasdaq: WKHS) ("Workhorse" or "the Company"), an American technology company focused on pioneering the transition to zero-emission commercial vehicles, today reported financial results for the first quarter ended March 31, 2024. Management Commentary "During the first quarter, we took important strategic and financial actions to better position Workhorse for the future while continuing to hit major milestones," said Workhorse CEO Rick Dauch. ...

[Workhorse Group Inc. Form 8-K Filing (May 20, 2024)](index=1&type=section&id=Workhorse%20Group%20Inc.%20Form%208-K) This Form 8-K reports Workhorse Group Inc.'s first-quarter 2024 financial results and associated exhibits, filed on May 20, 2024 [Item 2.02: Results of Operations and Financial Condition](index=2&type=section&id=Item%202.02%3A%20Results%20of%20Operations%20and%20Financial%20Condition) Workhorse Group Inc. reports first-quarter 2024 financial results via a furnished press release, not a filed document - The company issued a press release on May 20, 2024, detailing its financial results for the quarter ending March 31, 2024[5](index=5&type=chunk) - The information in the press release is **furnished**, not **filed**, impacting legal liability under the Securities Exchange Act[6](index=6&type=chunk) [Item 9.01: Financial Statements and Exhibits](index=2&type=section&id=Item%209.01%3A%20Financial%20Statements%20and%20Exhibits) This section lists all exhibits attached to the Form 8-K filing, including the financial results press release List of Exhibits | Exhibit No. | Description | | :--- | :--- | | 99.1 | Press Release dated May 20, 2024 | | 104 | Cover page from this Current Report on Form 8-K, formatted as Inline XBRL |

[PART I FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Presents Workhorse Group Inc.'s unaudited condensed consolidated financial statements and notes for Q1 2024 and FY2023 [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) | Metric | March 31, 2024 | December 31, 2023 | | :-------------------------------- | :------------- | :---------------- | | Cash and cash equivalents | $6,728,430 | $25,845,915 | | Total current assets | $65,642,482 | $93,825,478 | | Total Assets | $113,869,956 | $141,674,724 | | Total current liabilities | $41,398,619 | $53,282,027 | | Total Liabilities | $46,446,184 | $58,562,553 | | Total stockholders' equity | $67,423,772 | $83,112,171 | - Cash and cash equivalents decreased significantly from **$25.8 million** at December 31, 2023, to **$6.7 million** at March 31, 2024[11](index=11&type=chunk) - Total assets declined from **$141.7 million** to **$113.9 million**, while total liabilities also decreased from **$58.6 million** to **$46.4 million**[11](index=11&type=chunk) [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Sales, net | $1,339,295 | $1,693,415 | | Cost of sales | $7,442,778 | $5,328,119 | | Gross loss | $(6,103,483) | $(3,634,704) | | Total operating expenses | $17,623,189 | $21,914,692 | | Loss from operations | $(23,726,672) | $(25,549,396) | | Net loss | $(29,155,787) | $(24,999,037) | | Net loss per share (Basic & Diluted) | $(0.10) | $(0.15) | - Net sales decreased by **20.9%** from **$1.69 million** in Q1 2023 to **$1.34 million** in Q1 2024, primarily due to lower W4 CC vehicle sales[13](index=13&type=chunk)[145](index=145&type=chunk) - Gross loss widened to **$(6.1) million** in Q1 2024 from **$(3.6) million** in Q1 2023, driven by a **$2.2 million** increase in inventory reserves and higher depreciation[13](index=13&type=chunk)[146](index=146&type=chunk) - Net loss increased to **$(29.2) million** in Q1 2024 from **$(25.0) million** in Q1 2023, largely due to a **$5.4 million** net interest expense compared to **$0.6 million** net interest income in the prior year[13](index=13&type=chunk)[149](index=149&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) | Metric | December 31, 2023 | March 31, 2024 | | :-------------------------------- | :---------------- | :------------- | | Common Stock (Number of Shares) | 285,980,843 | 330,791,980 | | Common Stock (Amount) | $285,981 | $330,792 | | Additional Paid-in Capital | $834,394,441 | $847,817,018 | | Accumulated Deficit | $(751,568,251) | $(780,724,038) | | Total Stockholders' Equity | $83,112,171 | $67,423,772 | - Total stockholders' equity decreased from **$83.1 million** at December 31, 2023, to **$67.4 million** at March 31, 2024, primarily due to a net loss of **$29.2 million**[16](index=16&type=chunk) - Common stock shares outstanding increased significantly due to issuances under the ATM program, 2023 Warrant Exchange, ELOC Purchase Agreement, and 2024 Securities Purchase Agreement[16](index=16&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) | Cash Flow Activity | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Net cash used in operating activities | $(17,963,578) | $(32,749,402) | | Net cash used in investing activities | $(3,025,775) | $(5,404,727) | | Net cash (used in) provided by financing activities | $(8,128,132) | $17,988,404 | | Change in cash and cash equivalents | $(29,117,485) | $(20,165,725) | | Cash and cash equivalents, end of period | $6,728,430 | $79,110,576 | - Net cash used in operating activities decreased to **$18.0 million** in Q1 2024 from **$32.7 million** in Q1 2023, primarily due to reduced inventory spend and lower employee compensation[20](index=20&type=chunk)[162](index=162&type=chunk) - Net cash used in investing activities decreased to **$3.0 million** in Q1 2024 from **$5.4 million** in Q1 2023, driven by reduced capital expenditures for tooling and equipment[20](index=20&type=chunk)[163](index=163&type=chunk) - Net cash used in financing activities was **$8.1 million** in Q1 2024, a significant shift from **$18.0 million** provided in Q1 2023, mainly due to the repayment of 2026 Notes, partially offset by proceeds from ATM and 2024 Notes[20](index=20&type=chunk)[164](index=164&type=chunk)[165](index=165&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) [1. SUMMARY OF BUSINESS AND SIGNIFICANT ACCOUNTING PRINCIPLES](index=8&type=section&id=1.%20SUMMARY%20OF%20BUSINESS%20AND%20SIGNIFICANT%20ACCOUNTING%20PRINCIPLES) - Workhorse Group Inc. designs, develops, manufactures, and sells fully electric ground and air-based electric vehicles, aiming to pioneer the transition to zero-emission commercial vehicles[23](index=23&type=chunk) - The Company's ability to continue as a going concern is in substantial doubt due to recurring losses, accumulated deficit (**$780.7 million**), projected capital needs, and lower-than-expected market demand[26](index=26&type=chunk)[27](index=27&type=chunk) - Management's plan to address liquidity includes increasing vehicle sales, reducing expenses, limiting capital expenditures, and raising capital through debt/equity issuances (e.g., 2024 Securities Purchase Agreement, ATM Agreement) or asset sales[27](index=27&type=chunk)[28](index=28&type=chunk) - The Company entered into a 2024 Securities Purchase Agreement for up to **$139.0 million** in senior secured convertible notes and warrants, with an initial **$9.0 million** note fully converted and a second **$6.3 million** note issued in May 2024[32](index=32&type=chunk)[33](index=33&type=chunk) - A planned sale-leaseback of the Union City manufacturing facility for **$34.5 million** is unlikely to close at the original price, and the Company is exploring alternative transactions at a materially lower price[36](index=36&type=chunk) - Cost-saving measures include a **20%** workforce reduction (excluding direct labor), executive salary deferrals, and furloughing **73** employees at the Union City facility in April 2024[37](index=37&type=chunk)[120](index=120&type=chunk) - The Aero drone design and manufacturing business is transitioning to a 'Drones as a Service' model, with a divestiture of the remaining Aero business expected in Q2 2024 to reduce operating costs[38](index=38&type=chunk) [2. INVENTORY, NET](index=10&type=section&id=2.%20INVENTORY

CINCINNATI, May 16, 2024 (GLOBE NEWSWIRE) -- Workhorse Group Inc. (Nasdaq: WKHS) ("Workhorse" or "the Company"), an American technology company focused on pioneering the transition to zero-emission commercial vehicles, today announced its upcoming participation as an exhibitor at the Advanced Clean Transportation Expo 2024 ("ACT Expo"). The annual event will be held this year from May 20-23 at the Las Vegas Convention Center in Las Vegas, Nevada. Workhorse will be located at Booth 3933, showcasing advanced ...

Core Viewpoint - Workhorse Group Inc. is actively participating in the Advanced Clean Transportation Expo 2024 to showcase its commitment to zero-emission commercial vehicles and innovative electric vehicle solutions [1][6]. Group 1: Event Participation - The Advanced Clean Transportation Expo 2024 will take place from May 20-23 at the Las Vegas Convention Center, where Workhorse will exhibit at Booth 3933 [2]. - The event serves as a platform for Workhorse to demonstrate its industry-leading commercial electric vehicles and their availability for real-world applications [6]. Group 2: Product Showcase - Workhorse will feature the W56 medium-duty refrigerated EV step van, which integrates a refrigeration system with the vehicle's high-voltage battery, eliminating the need for diesel units [3]. - The W56 step van offers a "ride and drive" experience for attendees, highlighting its operational ease, visibility, and regenerative braking system that recovers nearly 50% of energy used, achieving over 30 MPGe [4]. - Additionally, the Class 4 W4 CC chassis will be displayed, featuring a three cubic yard Rugby dump body, representing a first-of-its-kind 100% electric EV dump truck ready for market [5]. Group 3: Company Overview - Workhorse Group focuses on providing electric vehicles for last-mile delivery, including ground and air-based solutions, and develops integrated telematics systems for fleet optimization [7].

Core Viewpoint - Workhorse Group Inc. has received approval from stockholders for key proposals at its 2024 Annual Meeting, which will support the company's strategic roadmap for commercial vehicles [1][2]. Group 1: Company Overview - Workhorse Group Inc. is focused on developing zero-emission commercial vehicles, including ground and air-based electric vehicles for last-mile delivery [3]. - The company designs and manufactures high-performance, battery-electric trucks and drones, along with cloud-based telematics systems to enhance fleet efficiency [3]. Group 2: Annual Meeting Outcomes - Stockholders re-elected members to the Board of Directors for a term expiring at the 2025 annual meeting [5]. - A reverse stock split of Workhorse's outstanding shares will be considered, with a ratio between 1-for-10 and 1-for-20, to comply with Nasdaq Listing Rules [5]. - Approval was granted for the issuance of shares underlying senior secured convertible notes and warrants to purchase common stock [5].