Workhorse(US:WKHS)2025-08-19 15:00Financial 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]