Thu, May 15, 12:31 PM (60 days ago)
**Workhorse Group Inc. (WKHS) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $640,922 (down from $1,339,295 in Q1 2024). - **Gross Loss:** $4,523,841 (improved from $6,103,483 in Q1 2024). - **Operating Expenses:** $8,312,930 (down from $17,623,189 in Q1 2024). - **Net Loss:** $20,644,134 (improved from $29,155,787 in Q1 2024). - **Cash Flow:** $8,153,590 used in operating activities (improved from $17,963,578 in Q1 2024). **Profit Margins:** - **Gross Margin:** Negative, indicating higher costs than revenue. - **Operating Margin:** Negative, reflecting high operating expenses. **Cash Flow:** - **Operating Cash Flow:** Negative $8,153,590 (improved from negative $17,963,578 in Q1 2024). - **Investing Cash Flow:** Negative $17,866 (improved from negative $3,025,775 in Q1 2024). - **Financing Cash Flow:** Positive $34,117,856 (improved from negative $8,128,132 in Q1 2024). **Earnings Changes:** - **Net Loss per Share:** $4.68 (improved from $24.09 in Q1 2024). **Quarterly Performance Discussion:** - **Revenue Decline:** Due to lower truck sales and the Aero divestiture. - **Cost Reduction:** Significant decrease in operating expenses, including SG&A and R&D. - **Cash Flow Improvement:** Better management of working capital and cost-saving measures. **Trends and Uncertainties:** - **Market Demand:** Slower-than-anticipated electric truck adoption and lack of government subsidies. - **Supply Chain:** Volatile commodity prices and potential tariff impacts. - **Geopolitical Risks:** New Presidential Administration and global conflicts affecting operations. **Future Operations Impact:** - **Liquidity Concerns:** Substantial doubt exists regarding the ability to continue as a going concern. - **Financing:** Reliance on convertible notes and warrants, with restrictions on additional financing. - **Cost-Saving Measures:** Continued focus on reducing expenses and limiting capital expenditures. **Going Concern:** - **Management's Plan:** Focus on increasing sales, reducing expenses, and securing additional financing. - **Uncertainties:** Potential need to adjust operations or seek bankruptcy protection if additional financing is not secured. **Summary:** Workhorse Group Inc. faced significant financial challenges in Q1 2025, with a notable decline in revenue and continued net losses. However, the company showed improvement in cash flow management and cost reduction. The future outlook remains uncertain, with substantial doubt regarding the ability to continue as a going concern, highlighting the need for successful execution of management's liquidity improvement plan.