Workhorse(WKHS) - 2024 Q4 - Annual Results

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]