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]

Financial Performance - Workhorse reported first quarter 2025 sales of $0.6 million, a decrease of 53.8% from $1.3 million in the same period last year, primarily due to the Aero divestiture and decreased truck sales[5]. - Net sales for the three months ended March 31, 2025, were $640,922, a decline of 52% compared to $1,339,295 for the same period in 2024[25]. - Gross loss for the first quarter of 2025 was $4,523,841, an improvement from a gross loss of $6,103,483 in Q1 2024[25]. - The net loss for the three months ended March 31, 2025, was $20,644,134, compared to a net loss of $29,155,787 in the same period of 2024, indicating a 29% improvement[25]. - Basic and diluted net loss per share improved to $(4.68) in Q1 2025 from $(24.09) in Q1 2024[25]. Expenses - Cost of sales for Q1 2025 was $5.2 million, down 29.7% from $7.4 million in the prior year, driven by lower sales volume and reduced labor costs[6]. - SG&A expenses decreased by 51.7% to $6.8 million in Q1 2025 from $14.1 million in the prior year, mainly due to a reduction in employee compensation and consulting expenses[7]. - R&D expenses fell by 57.1% to $1.5 million in Q1 2025 compared to $3.5 million in the prior year, reflecting lower headcount and consulting costs[8]. - Total operating expenses decreased to $8,312,930 in Q1 2025 from $17,623,189 in Q1 2024, reflecting a reduction of approximately 53%[25]. Cash and Assets - As of March 31, 2025, Workhorse had $2.6 million in cash and cash equivalents, with total inventory valued at $41.3 million[13]. - Total current assets increased to $77,543,591 as of March 31, 2025, up from $53,431,820 as of December 31, 2024, representing a growth of approximately 45%[23]. - Cash and cash equivalents decreased to $2,644,825 as of March 31, 2025, down from $4,119,938 as of December 31, 2024[23]. Liabilities and Capital - Total liabilities increased to $84,091,854 as of March 31, 2025, compared to $49,552,845 as of December 31, 2024, marking a rise of approximately 70%[23]. - The company reported a significant increase in additional paid-in capital, rising to $905,389,017 as of March 31, 2025, from $897,642,626 as of December 31, 2024[23]. Business Operations - Workhorse secured purchase orders for 27 W56 step vans and six W4 CC/W750 trucks in 2025, with ongoing negotiations for additional orders[3]. - The company successfully completed a 2,400-mile drive showcasing the W56's performance, further enhancing its market presence[12]. - Workhorse aims to ship more trucks in Q2 2025 than in all of 2024, having already shipped 18 trucks in Q2, which is six times the volume of Q1 2025[14]. - The company regained compliance with Nasdaq's minimum bid price requirement following a 1-for-12.5 reverse stock split on March 17, 2025[12]. Interest and Financing - Interest expense increased to $5.3 million in Q1 2025 from $1.2 million in the prior year, primarily due to higher outstanding convertible note balances[9].

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].

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]