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]

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 vehicle data access [1][2][3] 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] - 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] Technology Integration - The integration allows for a plug-and-play experience, enabling fleets to reduce costs, maximize uptime, and increase efficiency [2] - Geotab's technology provides insights to optimize charging schedules and battery usage, ensuring operational efficiency and cost savings during the transition to electric vehicles [3][4] Market Position - Geotab has over 4 million connected vehicles globally, with a significant presence in medium-duty fleets in the U.S., enhancing the efficiency and benefits of electric vehicle technology for Workhorse customers [4]

Core Insights - Workhorse Group Inc. is set to begin deliveries of its new 208-inch extended wheelbase W56 step vans to a national provider of uniforms and workplace supplies in partnership with Revolv, a leader in fleet electrification solutions [1][2] - The order includes 13 W56 step vans, which will be integrated into the customer's operations in 2025, showcasing Workhorse's commitment to zero-emission commercial vehicles [1][4] Company Overview - Workhorse Group Inc. focuses on pioneering the transition to zero-emission commercial vehicles, designing and building vehicles in the United States [6] - The W56 step van offers 1,200 cubic feet of cargo space, a range of up to 150 miles on a single charge, and a payload capacity of approximately 10,000 pounds, making it suitable for last-mile delivery [3][4] Partnership and Support - Revolv will facilitate the acquisition and deployment of the W56 step vans, ensuring seamless integration into the customer's operations and enhancing uptime performance [2][3] - Kingsburg Truck Center, a certified Workhorse dealer, will provide custom upfits tailored to the fleet's operational needs, optimizing vehicles for efficiency and performance [2] Market Position and Performance - The W56 has demonstrated strong real-world performance and reliability, reinforcing Workhorse's momentum in the commercial EV market [4] - The partnership with Revolv highlights Workhorse's dedication to customer support and the practical implementation of electrification for fleet operators [3][4]

Core Viewpoint - Workhorse Group Inc. is set to discuss its financial results for Q4 and the full year of 2024 on March 31, 2025, highlighting its focus on zero-emission commercial vehicles [1][3]. Group 1: Financial Results and Conference Call - The conference call will take place on March 31, 2025, at 10:00 a.m. Eastern time [1][2]. - Financial results will be released in a press release prior to the call [1]. - A telephonic replay of the conference call will be available after 1:00 p.m. Eastern time on the same day through April 7, 2025 [3]. Group 2: Company Overview - Workhorse Group Inc. is focused on pioneering the transition to zero-emission commercial vehicles [3]. - The company designs and builds its vehicles in the United States at the Workhorse Ranch in Union City, Indiana [3]. - Workhorse's vehicles are tailored for last-mile delivery, medium-duty operations, and a variety of specialized applications [3].

Core Viewpoint - Workhorse Group Inc. announced a 1-for-12.5 reverse stock split to increase its common stock price and regain compliance with Nasdaq's minimum bid price requirement [1][2]. Group 1: Reverse Stock Split Details - The reverse stock split will combine every 12.5 shares of common stock into one share, effective March 17, 2025 [3]. - The reverse stock split will not change stockholders' percentage ownership interests, except for minor adjustments due to fractional shares, which will be rounded up to the nearest whole share [3][4]. - Empire Stock Transfer Inc. will act as the exchange agent and will provide stockholders with a transaction statement reflecting their new share count post-split [4]. Group 2: Compliance and Market Impact - The reverse stock split aims to help Workhorse meet Nasdaq's requirement of a closing bid price of at least $1.00 per share for ten consecutive trading days by March 31, 2025 [2]. - There is no guarantee that the reverse stock split will achieve the desired effect of increasing the stock price to comply with Nasdaq's listing requirements [2]. Group 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 [5].

Core Insights - Workhorse Group Inc. has secured a contract with the California Department of General Services (DGS) to supply electric commercial trucks, specifically the W4 CC and W56 models, to state agencies, facilitating compliance with Advanced Clean Fleet regulations [2][4] - The transition to battery-electric medium-duty trucks is aimed at reducing emissions in California, particularly in the San Joaquin Valley, which suffers from poor air quality [1][5] - The W4 CC and W56 models are designed for versatility and reliability, with the W56 offering a payload capacity of 10,000 pounds and a battery capacity of 210 kWh, making them suitable for various commercial applications [3][6] Company Overview - Workhorse Group Inc. is focused on pioneering the transition to zero-emission commercial vehicles, with its manufacturing based in the United States [9][10] - The company aims to support California's sustainability goals by providing reliable, zero-emission vehicles that meet operational needs [6] Industry Context - The California Air Resources Board (CARB) has withdrawn its request for a federal waiver regarding the Advanced Clean Fleets regulation, but state and local agencies are still required to transition to zero-emission vehicles [4] - The DGS contract simplifies the procurement process for state agencies, allowing them to acquire electric trucks more efficiently [2][4]