Workhorse(US:WKHS)2025-11-10 22:27Financial Performance - Workhorse reported net sales of $2.4 million for Q3 2025, a decrease of $0.1 million compared to $2.5 million in Q3 2024, primarily due to lower truck sales[8]. - Net sales for the three months ended September 30, 2025, were $2.38 million, a decrease of 5% compared to $2.51 million for the same period in 2024[33]. - The net loss for the three months ended September 30, 2025, was $7.83 million, significantly improved from a net loss of $25.14 million in the same period in 2024[33]. - Gross loss for the nine months ended September 30, 2025, was $19.61 million, compared to a gross loss of $16.70 million for the same period in 2024, indicating a 17.3% increase in losses[33]. Expenses - Cost of sales increased to $10.1 million in Q3 2025 from $6.6 million in Q3 2024, driven by a $3.3 million increase in inventory excess and obsolescence reserve[9]. - Operating expenses decreased by $1.2 million year-over-year, totaling $7.8 million in Q3 2025, with a year-to-date reduction of $17.5 million compared to 2024[5]. - Research and development expenses fell to $1.1 million in Q3 2025 from $2.3 million in Q3 2024, reflecting a decrease in employee compensation and prototype part expenses[11]. - Selling, general and administrative expenses increased slightly to $7.8 million in Q3 2025, primarily due to a rise in consulting and legal expenses related to the merger[10]. - Operating expenses for the three months ended September 30, 2025, were $8.85 million, down from $10.04 million in the same period in 2024, reflecting an 11.8% decrease[33]. Assets and Cash Position - As of September 30, 2025, Workhorse had $12.7 million in cash and cash equivalents, $25.5 million in restricted cash, and net inventory of $30.0 million[16]. - Cash and cash equivalents increased to $12.73 million as of September 30, 2025, compared to $4.12 million as of December 31, 2024, marking a 208.5% increase[30]. - As of September 30, 2025, total assets increased to $116.74 million from $93.84 million as of December 31, 2024, representing a 24.4% growth[30]. Liabilities and Deficit - Total current liabilities rose to $60.43 million as of September 30, 2025, up from $45.24 million as of December 31, 2024, representing a 33.6% increase[30]. - The company’s accumulated deficit increased to $896.61 million as of September 30, 2025, from $853.36 million as of December 31, 2024[30]. Other Significant Events - Workhorse completed the sale of 15 trucks during the quarter and has over 42 vehicles operating in customer fleets, achieving 97% uptime in last-mile operations[6]. - The proposed merger with Motiv Electric Trucks is expected to close in Q4 2025, providing Workhorse with up to $20 million in debt financing at closing[7][17]. - The company recognized a gain on the sale of assets of $13.8 million related to the sale-leaseback of its Union City facility in Q3 2025[15]. - The company reported a gain on the sale of assets amounting to $13.81 million for the three months ended September 30, 2025[33]. Interest and Shares - Interest expense decreased significantly to $0.2 million in Q3 2025 from $3.0 million in Q3 2024, attributed to lower financing fees recognized in the prior year[12]. - The weighted average shares used in computing net loss per share increased to 15,537,878 for the three months ended September 30, 2025, compared to 1,323,168 for the same period in 2024[33].