Workhorse Group Inc. Q1 FY2025 earnings call

• Focused on designing and building dependable electric trucks, with customer demand in the commercial EV market shifting. - Booked purchase orders for 27 W56 step vans with delivery in 60-120 days, including an order from Gateway Fleets. - Delivered FedEx's 2024 order of W56 step vans, with more expected deployments. - Expanding adoption of W4 CC electric work trucks, including a municipality purchase. - Reduced operating expenses by $9.3 million year-over-year. - Completed a reverse stock split to regain NASDAQ compliance. - W56 step van had 96% uptime in real-world conditions, completed a 2,400-mile cross-country trip showing reliability.

In Q1 2025, sales net of returns and allowances were $600,000 compared to $1.3 million in Q1 2024. Cost of sales was $5.2 million, a decrease of $2.3 million year-over-year. SG&A expense was $6.8 million, a decrease of $7.3 million. R&D expenses were $1.5 million, a decrease of $2 million. Interest expense net was $5.3 million, up from $1.3 million. As of March 31, 2025, cash and cash equivalents were $2.6 million, restricted cash was $27.9 million, accounts receivable were $27,000, other receivables were $100,000, inventory net of reserves was $41.3 million, and accounts payable were $11.1 million.

• No specific annual revenue guidance provided. - Shipped 18 trucks in Q2 so far and aim to ship more trucks in Q2 than in all of last year. - Seeing an increase in sales momentum.

• Market challenges outside of control, including fleet adoption delays, shifting government incentives and mandates, and gas and charging infrastructure issues. - Dilution to shareholders from ongoing funding efforts with ATW.