Financial Data and Key Metrics Changes - Sales net of returns and allowances for Q1 2025 were $600,000, a decrease from $1,300,000 in Q1 2024, primarily due to the Arrow divestiture and decreased W4CC and W56 truck sales [27] - Cost of sales for Q1 2025 was $5,200,000, down from $7,400,000 in the prior year, driven by lower sales volume and reduced labor costs [28] - Selling, general and administrative expenses decreased to $6,800,000 from $14,100,000 in the prior year, primarily due to lower headcount and related expenses [28] - Research and development expenses were $1,500,000, down from $3,500,000 in the prior year, mainly due to decreased employee compensation [29] - Interest expense net for Q1 2025 was $5,300,000, compared to $1,300,000 in the prior year, driven by higher outstanding convertible note balances [29] - As of March 31, 2025, the company had $2,600,000 in cash and cash equivalents and $27,900,000 in restricted cash [30] Business Line Data and Key Metrics Changes - Year to date, the company booked purchase orders for 27 W56 Step Vans, with deliveries expected in the next 60 to 120 days [6] - The company delivered FedEx's 2024 order of fully equipped W56 Step Vans, which are expected to be deployed at three terminals by the end of Q2 [8] - The company began delivering the extended wheelbase W56 Step Van to a national fleet, providing a larger electric alternative without range or payload compromise [9] - The company expanded its dealer and service networks, adding new partners to enhance market coverage and service reliability [11] Market Data and Key Metrics Changes - The commercial EV market is experiencing a shift in customer demand, with increasing interest in the company's vehicles and growing momentum through vehicle orders and deployments [5] - The company is the only North American OEM producing complete electric step vans in-house, providing a competitive advantage in quality and lead times [14][15] - The company has seen competitors struggling with production and quality concerns, highlighting its position as a reliable provider of electric trucks [23][24] Company Strategy and Development Direction - The company is focused on building dependable electric trucks and earning customer confidence through rigorous execution and partnerships [4][5] - The company aims to expand its product portfolio to meet the demands of last-mile delivery, with plans to introduce more range options and configurations [16][17] - The company is maintaining financial discipline and cash preservation while navigating market challenges and seeking larger fleet orders [12][13] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of disciplined execution and real-world impact, focusing on building and shipping key customer orders [34] - The company is ramping production in line with demand and assessing new battery suppliers to strengthen its supply chain [34] - Management acknowledged ongoing market challenges but expressed confidence in the company's ability to scale for long-term growth [26] Other Important Information - The company completed a reverse stock split in March 2025 to regain NASDAQ compliance, which is crucial for accessing capital [13] - The company received CMBSS certification for the import and sale of vehicles into Canada, broadening its international footprint [12] Q&A Session Summary Question: What is the company's outlook for future orders? - Management indicated that they anticipate receiving the 2025 RFQ from FedEx in Q2 and are actively engaging with multiple logistics providers for demos and orders [9][33] Question: How is the company managing its financial runway? - The company has successfully reduced monthly operating cash to below $3,000,000 and is focused on further cost reductions and increasing cash reserves [31][32]

Financial Data and Key Metrics Changes - Sales net of returns and allowances for Q1 2025 were $600,000, down from $1,300,000 in Q1 2024, primarily due to the Arrow divestiture and decreased W4CC and W56 truck sales [28] - Cost of sales decreased to $5,200,000 from $7,400,000 in the prior year, driven by lower sales volume and reduced labor costs [29] - Selling, general and administrative expenses were $6,800,000, down from $14,100,000, mainly due to a decrease in employee compensation and related expenses [29] - Research and development expenses decreased to $1,500,000 from $3,500,000, primarily due to lower headcount [30] - Interest expense net increased to $5,300,000 from $1,300,000, driven by higher outstanding convertible note balances [30] Business Line Data and Key Metrics Changes - Year to date, the company booked purchase orders for 27 W56 Step Vans, with deliveries expected in the next 60 to 120 days [6] - The company delivered FedEx's 2024 order of fully equipped W56 Step Vans, increasing the total number of FedEx terminals with W56 vehicles to 12 [9] - The company began delivering the extended wheelbase 208 inches W56 Step Van to a national fleet, showcasing a larger electric alternative [10] Market Data and Key Metrics Changes - The company added two new dealers in key states preparing to adopt CARB emission standards, expanding its market coverage [12] - The company received CMBSS certification for the import and sale of W56 and W750 vehicles into Canada, broadening its international footprint [13] Company Strategy and Development Direction - The company focuses on building dependable electric trucks and earning customer confidence through rigorous execution and partnerships [5] - The company aims to expand the W56 lineup to provide more range options and cargo capacity for fleet operators [17] - The company is integrating advanced telematics into its vehicles to support better operating decisions and efficiency gains [19] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of maintaining financial discipline and reducing operating expenses by $9,300,000 year over year [14] - The company is focused on building and shipping key customer orders while maintaining a lean operating environment [35] - Management expressed confidence in the company's ability to scale for long-term growth despite ongoing market challenges [27] Other Important Information - The company completed a reverse stock split in March 2025 to regain NASDAQ compliance, which is crucial for long-term plans and access to capital [14] - The company is actively pursuing additional funding to support its operations and growth [35] Q&A Session Summary - No specific annual revenue guidance was provided due to uncertainty in the EV landscape, but the company aims to ship more trucks in Q2 than in all of last year [33] - Management emphasized the importance of building trust with fleet customers through demonstrations and securing purchase orders [35]

[PART I FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) Overview of the company's financial performance and position, highlighting recurring losses and going concern issues [Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) Presents the company's unaudited Q1 2025 financial statements, revealing decreased sales, a net loss, and significant going concern doubts [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Details the company's financial position as of March 31, 2025, showing increased assets and liabilities, and negative working capital Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $2,645 | $4,120 | | Restricted cash | $27,947 | $525 | | Inventory, net | $41,309 | $41,839 | | Total current assets | $77,544 | $53,432 | | Total Assets | $115,484 | $93,841 | | **Liabilities & Equity** | | | | Accounts payable | $11,092 | $11,509 | | Convertible notes at fair value | $45,244 | $10,492 | | Total current liabilities | $80,388 | $45,236 | | Total Liabilities | $84,092 | $49,553 | | Total stockholders' equity | $31,392 | $44,288 | - The company had negative working capital of **$2.8 million** as of March 31, 2025[25](index=25&type=chunk) [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Reports the company's operational results for Q1 2025, indicating reduced sales, a gross loss, and a net loss Q1 2025 vs Q1 2024 Statement of Operations (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Sales, net | $641 | $1,339 | | Cost of sales | $5,165 | $7,443 | | Gross loss | $(4,524) | $(6,103) | | Selling, general and administrative | $6,784 | $14,095 | | Research and development | $1,529 | $3,528 | | Loss from operations | $(12,837) | $(23,727) | | Net loss | $(20,644) | $(29,156) | | Net loss per share (Basic and Diluted) | $(4.68) | $(24.09) | [Condensed Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) Outlines changes in stockholders' equity for Q1 2025, primarily driven by the net loss and capital raised from convertible notes - The company's accumulated deficit grew from **$853.4 million** to **$874.0 million** during the first quarter of 2025[17](index=17&type=chunk) - Common stock issued under convertible notes added **$7.0 million** to stockholders' equity during the quarter[17](index=17&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Summarizes cash movements for Q1 2025, showing cash used in operations and significant cash generated from financing activities Q1 2025 vs Q1 2024 Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(8,154) | $(17,964) | | Net cash used in investing activities | $(18) | $(3,026) | | Net cash provided by (used in) financing activities | $34,118 | $(8,128) | | **Change in cash, cash equivalents and restricted cash** | **$25,946** | **$(29,117)** | - Proceeds from convertible notes were the primary source of financing, providing **$33.7 million** in cash during Q1 2025[20](index=20&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Provides critical disclosures, including the company's going concern status, financing dependencies, and legal proceedings - Management has concluded that **substantial doubt exists** regarding the company's ability to continue as a going concern for at least one year from the issuance date of the financial statements[26](index=26&type=chunk)[33](index=33&type=chunk) - The company's ability to continue operations is **contingent on obtaining proceeds** from third-party financing, primarily the 2024 Securities Purchase Agreement, which has conditions for fund release[27](index=27&type=chunk)[37](index=37&type=chunk) - The company is in a legal dispute with supplier Coulomb Solutions Inc. (CSI) over alleged unpaid invoices **exceeding $4 million**. Workhorse has accrued **$1.0 million** in connection with this dispute[127](index=127&type=chunk) - Subsequent to the quarter end, the company received consent for the release of an **additional $5.5 million** from its lockbox account in two tranches (**$3.0M in April**, **$2.5M in May**)[131](index=131&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Discusses the company's financial condition and operational results, emphasizing going concern risks, cost-saving measures, and market challenges - The company's ability to obtain additional financing is '**extremely limited under current conditions**,' and if unsuccessful, it may need to **seek bankruptcy protection**[141](index=141&type=chunk)[179](index=179&type=chunk) - Cost-saving measures implemented include a **20% reduction** in workforce (excluding direct labor), furloughing employees, reducing capital expenditures, and raising capital through the 2024 Securities Purchase Agreement[149](index=149&type=chunk) Q1 2025 vs Q1 2024 Results of Operations Summary (in millions) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Sales, net | $0.6 | $1.3 | $(0.7) | | Cost of sales | $5.2 | $7.4 | $(2.2) | | SG&A expenses | $6.8 | $14.1 | $(7.3) | | R&D expenses | $1.5 | $3.5 | $(2.0) | | Net loss | $(20.6) | $(29.2) | $8.6 | - Market demand in Q1 2025 was negatively impacted by slower-than-anticipated EV adoption, lack of government subsidies, and delays in charging infrastructure roll-out[152](index=152&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=37&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Confirms no material changes to market risk disclosures from the prior annual report - There have been **no material changes** to the market risk disclosures previously reported in the 2024 Form 10-K[188](index=188&type=chunk) [Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) Concludes that disclosure controls and procedures were ineffective due to material weaknesses in internal control over financial reporting - The CEO and CFO concluded that disclosure controls and procedures were **not effective** as of March 31, 2025[190](index=190&type=chunk) - Material weaknesses identified include deficiencies in reviewing third-party valuations and a lack of sufficient, experienced accounting personnel due to turnover and cost-cutting measures[193](index=193&type=chunk) - The company is implementing remediation plans, but the material weaknesses **remain unresolved** as of the reporting date[196](index=196&type=chunk)[198](index=198&type=chunk) [PART II OTHER INFORMATION](index=39&type=section&id=PART%20II%20OTHER%20INFORMATION) Contains supplementary information not covered in the financial statements, including legal proceedings and risk factors [Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings) Refers to the financial statement notes for details on material legal disputes, specifically the CSI litigation - For details on legal proceedings, the report directs readers to Note 15 in the financial statements, which discusses the CSI litigation[201](index=201&type=chunk) [Risk Factors](index=39&type=section&id=Item%201A.%20Risk%20Factors) States that no material changes to the company's previously disclosed risk factors occurred during the period - There have been **no material changes** in the company's risk factors during the current period[202](index=202&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=39&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Reports no unregistered sales of equity securities during the reporting period - **None**[203](index=203&type=chunk) [Defaults Upon Senior Securities](index=39&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) Indicates that the company experienced no defaults on senior securities - **None**[204](index=204&type=chunk) [Mine Safety Disclosures](index=39&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Confirms that this disclosure item is not applicable to the company's operations - **Not applicable**[205](index=205&type=chunk) [Other Information](index=39&type=section&id=Item%205.%20Other%20Information) Notes that no directors or officers adopted or terminated Rule 10b5-1 trading plans in Q1 2025 - No directors or officers adopted or terminated any Rule 10b5-1 trading plans or similar arrangements in Q1 2025[206](index=206&type=chunk) [Exhibits](index=40&type=section&id=Item%206.%20Exhibits) Lists all documents filed as exhibits with the Form 10-Q, including financing agreements and certifications

Financial Performance - Q1 2025 sales were $06 million, a decrease of $07 million compared to $13 million in Q1 2024, primarily due to the Aero divestiture and lower W4 CC and W56 truck sales[21] - Q1 2025 cost of sales was $52 million, a decrease of $22 million compared to $74 million in Q1 2024, mainly due to lower sales volume, partially offset by lower inventory reserves of $05 million and lower direct and indirect labor costs of $16 million[22] - Q1 2025 SG&A expenses were $68 million, a decrease of $73 million compared to $141 million in Q1 2024, driven by lower employee compensation ($44 million), consulting expenses ($10 million), legal and professional expenses ($07 million), marketing expenses ($05 million), and IT expenses ($05 million)[23] - Q1 2025 R&D expenses were $15 million, a decrease of $20 million compared to $35 million in Q1 2024, primarily driven by lower employee compensation ($13 million)[24] - Cash and cash equivalents, including restricted cash, totaled $306 million as of March 31, 2025[25,26] Operational Highlights - Secured initial W56 order with Gateway Fleets and purchase orders for 27 W56 step vans and 6 W4 CC/W750[10] - Delivered fully-upfitted W56 178-inch step-vans to FedEx, with vans to be in service at 12 FedEx terminals by the end of Q2[10] - Completed a 2,400-mile cross-country trip with the W56, achieving 27 MPGe at highway speeds, 53% lower fuel costs, and 40% lower scheduled maintenance than ICE vehicles[16] Strategic Priorities - The company is focused on converting finished goods inventory to cash, aiming to ship more trucks in Q2 2025 than in all of 2024[29] - The company reduced the cash burn rate to $28 million per month by year-end 2024[29] - Near-term priorities include growing backlog, advancing product roadmaps, and strengthening the financial position[31]

Exhibit 99.1 Workhorse Group Reports First Quarter 2025 Results CINCINNATI, May 15, 2025 – 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, 2025. Management Commentary "We continue to deliver high-quality electric trucks and build strong momentum as customer interest grows," said Workhorse CEO Rick Dauch. "Our W56' ...

Core Viewpoint - Workhorse Group Inc. reported its financial results for Q1 2025, highlighting a decrease in sales but progress in securing purchase orders and expanding its electric vehicle offerings, while focusing on cash conservation and operational efficiency [1][5][14]. Management Commentary - CEO Rick Dauch emphasized the company's momentum in delivering electric trucks and securing initial orders, including 27 W56 step vans and six W4 CC/W750 trucks in 2025 [2]. - The company is negotiating additional orders and has begun delivering W56 step vans to a national customer [2]. - Workhorse is focused on cash preservation and extending its financial runway while capitalizing on long-term EV market opportunities [2]. Recent Strategic & Financial Actions - Workhorse secured a purchase order for two W4 CC electric work trucks for a municipal fleet in Washington [3]. - The integration of Geotab telematics technology into the W56 step van enhances fleet management capabilities [3]. - The company expanded its certified dealer network, adding new locations to strengthen its presence in key markets [3]. First Quarter Financial Results - Q1 2025 sales were $0.6 million, down from $1.3 million in the same period last year, primarily due to the Aero divestiture and decreased truck sales [5]. - Cost of sales decreased to $5.2 million from $7.4 million, driven by lower sales volume and reduced labor costs [6]. - SG&A expenses fell to $6.8 million from $14.1 million, reflecting a significant reduction in employee compensation and related expenses [7]. Research and Development Expenses - R&D expenses in Q1 2025 were $1.5 million, down from $3.5 million, mainly due to lower headcount and consulting expenses [8]. Interest Expense and Financial Position - Interest expense increased to $5.3 million from $1.2 million, attributed to higher outstanding convertible note balances [9]. - As of March 31, 2025, the company had $2.6 million in cash and cash equivalents, $27.9 million in restricted cash, and $41.3 million in inventory [12]. Financial Overview and Future Outlook - The CFO stated that the company expects to secure additional orders and aims to ship more trucks in Q2 2025 than in all of 2024 [13]. - Workhorse has reduced operating expenses by $9.3 million year-over-year, focusing on revenue generation while preserving financial runway [14]. - The company regained compliance with Nasdaq's minimum bid price requirement following a reverse stock split [14].

Core Insights - Workhorse Group Inc. is expanding its partnership with Ziegler Truck Group by adding two new dealer locations, enhancing its national network for zero-emission commercial vehicles [1][2] - The addition of Range Truck Group in Fife, Washington, strengthens Workhorse's presence in the Pacific Northwest, a region with increasing demand for electric last-mile delivery trucks [2][4] - A third Ziegler Truck Group location in DeForest, Wisconsin, is also being added to support Workhorse's Class 4–6 all-electric work trucks, reinforcing the company's commitment to fleet support [3][4] Company Developments - Range Truck Group specializes in zero-emission commercial vehicles and charging solutions, contributing to the electric vehicle adoption in the Pacific Northwest [2][6] - Ziegler Truck Group is an approved California Air Resource Board HVIP dealer, providing access to incentives for fleets adopting clean transportation technologies [4][6] - Workhorse's strategy includes a service-first approach, equipping fleets with tools to electrify operations while maintaining performance and reliability [5][7] Market Position - Workhorse Group focuses on the transition to zero-emission commercial vehicles, designing and building its vehicles in the U.S. for last-mile delivery and medium-duty operations [7] - The company aims to make its lineup of 100% electric, medium-duty work trucks more accessible to commercial fleets, addressing the need for reduced emissions [5][7]

Core Viewpoint - Workhorse Group Inc. is set to discuss its financial results for Q1 2025 and future plans during a conference call on May 15, 2025 [1][2]. Group 1: Conference Call Details - The conference call will take place on May 15, 2025, at 8:00 a.m. Eastern time (5:00 a.m. Pacific time) [1][2]. - Participants can join the call by dialing U.S. number 877-407-8289 or international number 201-689-8341 [2]. - A telephonic replay will be available after 11:00 a.m. Eastern time on the same day through May 22, 2025, with toll-free and international replay numbers provided [3]. Group 2: Company Overview - Workhorse Group Inc. focuses on the transition to zero-emission commercial vehicles, designing and building vehicles in the U.S. at its facility in Union City, Indiana [3]. - The company specializes in vehicles for last-mile delivery, medium-duty operations, and various specialized applications [3].

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].