Workhorse(US:WKHS)2025-05-15 13:00Financial 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]