Core Viewpoint - Workhorse Group Inc. successfully completed a 2,400-mile drive of its W56 electric step van, demonstrating its capabilities and efficiency in real-world conditions, which is crucial for fleet managers considering electric vehicle adoption [1][2][3]. Group 1: Vehicle Performance and Cost Efficiency - The W56 achieved 27 miles per gallon of gasoline-equivalent (MPGe) at highway speeds, nearly three times the efficiency of comparable internal combustion engine (ICE) step vans [2]. - The vehicle averaged 53% lower fuel costs compared to ICE vehicles and has 40% lower scheduled maintenance costs over five years, providing significant total cost of ownership advantages [2]. - The W56 is designed for last-mile delivery with a real-world range of up to 150 miles and cargo capacities of 1,000 or 1,200 cubic feet [8]. Group 2: Real-World Testing and Demonstration - The cross-country journey is part of Workhorse's "We Drove It Here" campaign, which began in October 2024, aimed at showcasing the readiness of its vehicles for commercial deployment [6]. - The journey included various challenging conditions, highlighting the vehicle's reliability and efficiency across different terrains and weather [3][6]. - Fleet managers can test drive the W56 at the ACT Expo, allowing them to experience the vehicle's operational reliability firsthand [7]. Group 3: Industry Context and Support - The transition to electric vehicles is supported by state HVIP funding, federal incentives, and infrastructure requirements, which are critical for fleet managers [8]. - Workhorse's vehicles meet federal and state incentive program requirements, ensuring compliance with regulatory landscapes while delivering immediate operational cost reductions [8]. - Kingsburg Truck Center, a certified Workhorse dealer, emphasizes the importance of practical conversations about making the EV transition financially viable for fleet managers [8].

Core Viewpoint - Workhorse Group Inc. has regained compliance with Nasdaq's minimum bid price requirement of $1.00 per share after a reverse stock split and meeting the necessary trading conditions [1][2][3]. Compliance with Nasdaq - The company received a notification from Nasdaq confirming compliance with Listing Rule 5550(a)(2) after previously being notified of non-compliance due to a closing bid price below $1.00 for 30 consecutive trading days [1][2]. - To regain compliance, Workhorse was required to maintain a minimum closing bid price of at least $1.00 for ten consecutive trading days, which has now been achieved [2]. Reverse Stock Split - On March 17, 2025, Workhorse executed a 1-for-12.5 reverse stock split to increase the market price of its common stock, which began trading on a split-adjusted basis thereafter [3]. Company Overview - Workhorse Group Inc. is focused on the transition to zero-emission commercial vehicles, designing and building vehicles in the U.S. for last-mile delivery and medium-duty operations [4].

Core Points - Workhorse Group Inc. has regained compliance with Nasdaq's minimum bid price requirement of $1.00 per share [1][2] - The company had previously fallen below this threshold for 30 consecutive trading days, prompting a notification from Nasdaq [2] - A reverse stock split of 1-for-12.5 was executed on March 17, 2025, to increase the stock price, after which the stock began trading on a split-adjusted basis [3] Company Overview - Workhorse Group Inc. is focused on the transition to zero-emission commercial vehicles, designing and building vehicles in the United States [4] - The company specializes in last-mile delivery, medium-duty operations, and a range of specialized applications [4]

Financial Performance - Net sales decreased by $65 million, from $1309 million in 2023 to $6616 million in 2024 [24] - Cost of sales decreased by $95 million, from $3835 million in 2023 to $2884 million in 2024 [25] - Operating expenses decreased by $2838 million, from $8004 million in 2023 to $5166 million in 2024 [24] - Net loss decreased by $2213 million, from $12391 million in 2023 to $10179 million in 2024 [24] - Cash and cash equivalents decreased by $2172 million, from $2585 million in 2023 to $412 million in 2024 [30] Operational Highlights - Secured an order for 13 W56 trucks for a California-based linen fleet [11] - Reduced operating expenses to approximately $3 million per month [11] - The company's W56 trucks achieved a 96% uptime rate during peak season testing [23] Strategic Priorities - The company aims to reduce the cash burn rate [34] - The company plans to grow backlog and advance product roadmaps [36] - The company intends to strengthen its financial position [36]

Financial Data and Key Metrics Changes - Sales net of returns and allowances for the full year 2024 were $6.6 million, a decrease from $13.1 million in 2023, primarily due to lower W4CC truck sales, offset by an increase in W56 truck sales and service revenue [43] - Cost of sales for 2024 was $28.2 million, down $9.5 million from $38.4 million in 2023, driven by lower W4CC vehicle sales and cost-saving initiatives [44] - SG&A expenses decreased to $42.5 million in 2024 from $55.6 million in 2023, primarily due to reduced employee compensation and consulting expenses [45] - R&D expenses for 2024 were $9.1 million, a decrease of $15.3 million compared to $24.5 million in 2023, mainly due to lower headcount and reduced prototype expenses [46] - The net loss for 2024 was $101.8 million, compared to a net loss of $123.9 million in 2023 [48] Business Line Data and Key Metrics Changes - The decrease in sales was primarily attributed to lower W4CC truck sales, while W56 truck sales increased, contributing positively to service revenue [43] - The company launched the new W56 208-inch wheelbase truck, receiving positive customer feedback and a purchase order for 13 units [11] Market Data and Key Metrics Changes - The commercial EV market is experiencing uncertainty due to regulatory pauses and delays in fleet electrification plans, impacting investment decisions by several fleets [8][9] - Despite challenges, some states continue to advance their electrification plans, and Workhorse is positioned to capitalize on these opportunities [9] Company Strategy and Development Direction - The company aims to extend its financial runway while advancing its product roadmap and ramping up production [53] - Workhorse is focused on securing breakthrough high-volume orders with national fleets and smaller orders in states with effective incentive programs [57] - The company emphasizes its commitment to delivering reliable, durable, and capable commercial vehicles that meet the needs of last-mile delivery fleets [38] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that EV adoption in the commercial space is slower than expected due to external factors such as regulatory delays and inadequate charging infrastructure [54] - The company remains optimistic about the fundamentals of transitioning to EVs in the last-mile delivery segment, highlighting the operational benefits of their vehicles [55] Other Important Information - The company executed a one-for-12.5 reverse stock split to increase the market price of its common stock and maintain compliance with NASDAQ listing requirements [48] - Workhorse has established in-house manufacturing capabilities, making it the only North American-based OEM capable of producing complete step vans [20] Q&A Session Summary - No specific questions were recorded during the Q&A session, and the call concluded with management expressing gratitude for the support and commitment to securing necessary orders for future growth [61][62]

Financial Data and Key Metrics Changes - Sales net of returns and allowances for the full year 2024 were $6.6 million, a decrease from $13.1 million in 2023, primarily due to lower W4CC truck sales, offset by an increase in W56 truck sales and service revenue [43] - Cost of sales for 2024 was $28.2 million, down $9.5 million from $38.4 million in 2023, driven by lower W4CC vehicle sales and cost-saving initiatives [44] - SG&A expenses decreased to $42.5 million in 2024 from $55.6 million in 2023, primarily due to reduced employee compensation and other cost-cutting measures [45] - R&D expenses for 2024 were $9.1 million, a decrease of $15.3 million compared to $24.5 million in 2023, mainly due to lower headcount and reduced prototype expenses [46] - The net loss for 2024 was $101.8 million, compared to a net loss of $123.9 million in 2023 [48] Business Line Data and Key Metrics Changes - The decrease in sales was primarily attributed to lower W4CC truck sales, while W56 truck sales increased, indicating a shift in product demand [43] - The company launched the new W56 208-inch wheelbase truck, receiving positive customer feedback and a purchase order for 13 units [11] Market Data and Key Metrics Changes - The commercial EV market is experiencing uncertainty due to regulatory pauses and delays in fleet electrification plans, impacting investment decisions by several fleets [8][9] - Despite challenges, some states continue to advance their electrification plans, and Workhorse is positioned to capitalize on these opportunities [9] Company Strategy and Development Direction - The company aims to extend its financial runway while advancing its product roadmap and ramping up production [53] - Workhorse is focused on securing high-volume orders with national fleets and smaller orders in states with effective incentive programs [57] - The company emphasizes its in-house manufacturing capabilities and has established a national dealer network to support long-term growth [20][21] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that EV adoption in the commercial space is slower than expected due to external factors such as regulatory delays and inadequate charging infrastructure [54] - The company remains committed to delivering a no-compromise electric truck that meets the needs of last-mile delivery fleets [56] - Management is optimistic about securing breakthrough orders and is actively engaging with Fortune 500 companies and government entities [37] Other Important Information - The company executed a one-for-12.5 reverse stock split to increase the market price of its common stock and maintain NASDAQ listing compliance [48] - Workhorse has received approval for the sale of its W750 and W56 step van models in Canada, expanding its market reach [12] Q&A Session Summary - No specific questions were recorded during the Q&A session, and the call concluded with management expressing gratitude for the support and patience of stakeholders [60][61]

Company Strategy and Operations - Workhorse Group Inc. plans to pioneer the transition to zero-emission commercial vehicles, focusing on all-electric delivery vehicles for the last mile delivery market[18]. - The company is focused on developing sustainable and cost-effective solutions for the commercial transportation sector, but this business plan remains unproven[103]. - The company is committed to leading the commercial vehicle industry's transition to zero emissions, focusing on lower carbon emissions in its operations[69]. - The company’s electric delivery vehicle platforms are designed to serve the "last mile delivery" market, providing significant benefits to fleet operators[188]. - The company continues to develop the Workhorse Connect™ remote data management system, capable of updating over 500 data points in ten seconds[52]. - The company launched the W56 vehicle chassis platform in 2023, which is central to its revised strategic product roadmap[99]. - The company plans to begin production of its second generation, low floor, advanced content offering for the vehicle chassis market in late 2026 or 2027[99]. - The company manufactures Class 4 and 5/6 commercial delivery vehicles, including the W56, designed for last-mile delivery and high payload applications[44]. Financial Performance - The Company reported net sales of $6,616,358 for the year ended December 31, 2024, a decrease of approximately 49.5% compared to $13,094,752 in 2023[217]. - The cost of sales for 2024 was $28,842,087, resulting in a gross loss of $22,225,729, compared to a gross loss of $25,255,793 in 2023[217]. - Total operating expenses decreased to $51,661,184 in 2024 from $80,042,673 in 2023, primarily due to reductions in selling, general and administrative expenses and research and development costs[217]. - The Company incurred a net loss of $101,790,293 for 2024, compared to a net loss of $123,919,189 in 2023, indicating an improvement in financial performance[217]. - The company has experienced recurring losses and an accumulated deficit, raising substantial doubt about its ability to continue as a going concern within one year from the issuance of its financial statements[28][33]. - The company had an accumulated deficit of $853.4 million as of December 31, 2024, and expects to continue incurring net losses in 2025[103]. - Negative cash flow from operating activities was reported at $47.6 million and $123.0 million for the years ended December 31, 2024 and 2023, respectively[88]. Capital and Financing - The company entered into a 2024 Securities Purchase Agreement, issuing senior secured convertible notes for up to $139.0 million, with $39.0 million issued in 2024 and an additional $38.5 million in early 2025[26][27]. - As of December 31, 2024, the outstanding fair value of the 2024 Notes was $10.5 million, with an aggregate principal amount of $7.6 million[203]. - The company sold 48,000 shares of Common Stock under the ELOC Purchase Agreement, generating proceeds of $3.1 million during the year ended December 31, 2024[212]. - Future financings may result in dilution for existing stockholders, particularly through the conversion of 2024 Notes and exercise of 2024 Warrants[164]. - The company has not paid cash dividends in the past and has no immediate plans to do so, opting to reinvest earnings instead[163]. Workforce and Cost Management - A reduction in force was initiated, terminating approximately 20% of the workforce, and executive officers deferred 20% of their cash compensation to improve liquidity[37][38]. - The company completed a reduction in force, terminating approximately 20% of its total workforce, excluding direct labor, in response to weaker market demand[77]. - Cost-saving measures have been implemented, including reductions in third-party consulting, lower research and development activities, and consolidation of back-office functions[40]. - Management plans to reduce capital expenditures significantly, focusing only on necessary manufacturing equipment and tooling to support firm orders[42]. Regulatory and Market Challenges - The Nasdaq has adopted new rules that could hinder the company's ability to maintain its listing, including immediate delisting for non-compliance with the Minimum Bid Requirement[23]. - The company is currently out of compliance with Nasdaq's minimum bid price requirement of $1.00, having received a deficiency notice on October 2, 2024[154]. - The company has a compliance period until March 31, 2025, to regain compliance with Nasdaq's listing requirements[155]. - The company faces risks associated with changes in regulations related to the electric vehicle industry, which could impact its business[110]. - Regulatory compliance costs could materially affect the company's financial condition and results of operations[112]. - The demand for commercial electric vehicles is sensitive to fluctuations in petroleum-based fuel prices, which could adversely affect the company's prospects[118]. Supply Chain and Production - The company has significantly reduced procurement of raw materials for future commercial vehicle production, impacting the near-term production of the W56 vehicle platform[41]. - The company is facing challenges in scaling production and sourcing components, which could impact its ability to fulfill orders and meet customer demand[90]. - The company relies on a limited number of suppliers for critical components, and any failure in supply could severely restrict manufacturing capabilities[137]. - The company has experienced supply chain constraints for battery packs, which are essential for vehicle production, and is working with additional suppliers to mitigate this risk[140]. - The company is working on cost-down initiatives to reduce material and production costs, as failure to do so could lead to continued net losses[117]. Environmental and Safety Considerations - The company has a holistic approach to sustainability, focusing on reducing its carbon footprint and ensuring strong performance and lower Total Operating Cost (TOC) for customers[72]. - The company’s electric vehicles utilize lithium-ion battery cells, which pose safety risks if not properly managed, potentially leading to liability and adverse publicity[145]. - The company is subject to increasing scrutiny regarding its environmental, social, and governance (ESG) practices, which could impose additional costs and risks[147]. - The EPA finalized its Phase 3 greenhouse gas emissions standards in 2024, which will apply to heavy-duty vehicles starting in model year 2027[60]. Market Position and Competition - The company faces intense competition from established players like General Motors, Ford, and Freightliner, which have greater financial resources and market recognition[130]. - The company currently has a limited number of customers and no long-term agreements, which poses a risk to future revenue generation[106]. - The company’s ability to compete may be impacted by the total cost of ownership of its vehicles compared to alternatives, including fossil fuel technologies[139]. - The future growth of the company depends on the adoption of electric vehicles by commercial vehicle fleet operators and the competitive pricing of its products[120]. Cybersecurity - The company faces significant risks associated with cyber-attacks, which could lead to substantial financial losses and reputational damage[148]. - The company has implemented a cybersecurity risk management program based on the NIST framework, focusing on prevention, detection, and mitigation[170]. - The company conducts regular cybersecurity training for employees and performs simulations to test defenses and improve security measures[173].

Financial Performance - Workhorse reported net sales of $6.6 million for the full year 2024, a decrease of 50.4% compared to $13.1 million in 2023, primarily due to lower W4 CC truck sales[5] - Total net sales for 2024 were $6,616,358, a decrease of 49.5% compared to $13,094,752 in 2023[26] - Workhorse's net loss for 2024 was $101.8 million, an improvement from a net loss of $123.9 million in 2023[14] - The net loss for 2024 was $101,790,29, compared to a net loss of $123,919,189 in 2023, reflecting a decrease of 17.9%[26] - Gross loss for 2024 was $22,225,729, compared to a gross loss of $25,255,793 in 2023, indicating an improvement[26] Expenses - Cost of sales for 2024 was $28.2 million, down 24.7% from $38.4 million in 2023, driven by lower W4 CC vehicle sales and cost-saving initiatives[6] - SG&A expenses decreased by 23.5% to $42.5 million in 2024 from $55.6 million in 2023, mainly due to reduced employee compensation and consulting expenses[7] - R&D expenses for 2024 were $9.1 million, a significant decrease of 62.4% from $24.5 million in 2023, reflecting lower headcount and reduced prototype expenses[8] - Total operating expenses decreased to $51,661,184 in 2024 from $80,042,673 in 2023, a reduction of 35.4%[26] - Research and development expenses were $9,149,055 in 2024, down from $24,467,933 in 2023, a decrease of 62.7%[26] Cash and Assets - Cash and cash equivalents decreased significantly from $25,845,915 in 2023 to $4,119,938 in 2024, a decline of 84.1%[23] - Total assets decreased from $141,674,724 in 2023 to $93,840,769 in 2024, a reduction of 33.8%[23] - Current liabilities decreased from $53,282,027 in 2023 to $45,235,937 in 2024, a decrease of 15.1%[23] Liquidity and Financing - The company issued a convertible note of $35.0 million in February 2025 to enhance liquidity, with net proceeds of $30.6 million held as restricted cash[10] - Workhorse's total working capital as of December 31, 2024, was $8.2 million, including $4.6 million in cash and cash equivalents[14] Market Activity and Product Development - The company secured an order for 13 W56 208-inch wheelbase trucks from a national provider, indicating growing customer interest and demand[4] - Workhorse expanded its EV offerings with the launch of the W56 208-inch wheelbase truck, which has a cargo capacity increase of 20% to 1,200 cubic feet[4] - The company entered the Pacific Northwest market with a purchase order for two W4 CC electric work trucks from the City of Tacoma[4] Risks and Challenges - The company is facing risks related to supply chain disruptions, regulatory changes, and competition, which could materially affect future performance[20] - The company reported a significant increase in interest expense, netting $22,241,781 in 2024 compared to $8,731,247 in 2023[26]

CINCINNATI, March 31, 2025 (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 full year ended December 31, 2024. Expanding Electric Vehicle Offerings: Throughout 2024, Workhorse advanced its product roadmap and expanded models of its EV trucks to meet customer needs. In the fourth quarter, the Company launched the W56 208-inch ...

Core Insights - Workhorse Group Inc. has integrated Geotab's advanced telematics technology into its Workhorse W56 step van, enhancing fleet performance and mobility through a unified dashboard for data access [1][2][4] - The integration allows for a plug-and-play experience, enabling fleets to reduce costs, maximize uptime, and increase efficiency [2][3] - Geotab's technology provides insights to optimize charging schedules and battery usage, ensuring operational efficiency and cost savings for fleets transitioning to electric vehicles [3][4] Company Overview - Workhorse Group Inc. focuses on the transition to zero-emission commercial vehicles, designing and building vehicles in the U.S. for last-mile delivery and medium-duty operations [5] - The Workhorse W56 is positioned as an ideal zero-emission vehicle for last-mile delivery, featuring impressive range and substantial cargo capacity [3][5] - Geotab is a leader in connected vehicle solutions, processing 80 billion data points daily from over 4.7 million vehicle subscriptions, serving a wide range of customers including Fortune 500 companies [6]