Financial Data and Key Metrics Changes - In Q2 2025, Workhorse shipped 32 trucks, a significant increase from 1 truck in Q2 2024, reflecting a year-over-year increase of 31 trucks [10] - Sales net of returns and allowances for Q2 2025 were $5.7 million, up from $800,000 in the same period last year, marking an increase of $4.8 million [11] - Operating expenses decreased by $7 million year-over-year while achieving record vehicle shipments [9] - The net loss for the six months ended June 30, 2025, improved from $55.5 million in 2024 to $35.4 million in 2025 [17] Business Line Data and Key Metrics Changes - The W56 Step Van line secured 36 purchase orders and received overwhelmingly positive customer feedback, indicating strong demand [7] - Research and development expenses decreased to $1.2 million in Q2 2025 from $2 million in Q2 2024, primarily due to lower headcount and reduced prototype expenses [13] Market Data and Key Metrics Changes - The company noted that there are currently over 60 W56 vehicles operating in customer and partner fleets across diverse routes, validating the vehicle's performance in real-world conditions [7] - The transaction with Motive is expected to enhance the combined company's market position in the medium-duty electric vehicle sector, targeting a market valued at $23 billion [35] Company Strategy and Development Direction - The merger with Motive aims to create a broader commercial truck product portfolio and strengthen financial positions, allowing Workhorse shareholders to benefit from the combined entity's growth potential [22] - The company plans to expand its product portfolio and ensure reliable fleet operations while finalizing plans for the W56 140kW production launch in 2026 [41] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that external factors, such as changing government regulations, have delayed fleet customer adoption rates, impacting revenue growth [21] - The combined company is expected to be better positioned to raise additional capital post-merger, enhancing its ability to pursue growth initiatives [29] Other Important Information - Workhorse completed a $20 million sale leaseback for its manufacturing facility and secured a $5 million convertible note financing to bolster liquidity [24] - The transaction is expected to close in 2025, subject to shareholder approval and customary closing conditions [26] Q&A Session Summary Question: Can you discuss the relationship with Hudson County Motors and the New Jersey ZIP? - The relationship with Hudson County Motors is strong, and there are ongoing voucher programs that could extend to new locations, enhancing growth opportunities [46] Question: How will the combined company access government programs for growth? - The combined entity is expected to have a stronger balance sheet, which will facilitate access to government programs and enhance growth potential [52] Question: What are the terms of the sale and leaseback agreement? - Detailed terms of the sale leaseback and convertible note can be found in the SEC filings [76] Question: Will a reverse stock split be necessary for NASDAQ listing? - A reverse stock split may be required to meet NASDAQ's minimum price thresholds due to the change in control [78] Question: What is the expected valuation of the combined entity? - The combined entity is valued at $105 million, based on contributions from both companies and the sale leaseback transaction [80] Question: How will the product portfolios be integrated? - The integration will focus on developing a full range of Class four to six trucks, leveraging the strengths of both companies [83]

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]