Mon, Aug 19, 8:59 PM (148 days ago)
For the quarter ending June 30, 2024, Workhorse Group reported a significant decline in revenue, totaling $842,440, compared to $3,966,463 for the same period in 2023. This drop was accompanied by a gross loss of $6.5 million, exacerbated by increased costs related to inventory reserves. Operating expenses decreased to $14.1 million, down from $19.1 million, reflecting cost-cutting measures including a workforce reduction and deferred executive compensation. The net loss for the quarter was $26.3 million, compared to $23 million in the prior year. Cash flow from operations was negative at $30.1 million, with total cash and cash equivalents dropping to $5.3 million. Workhorse's liquidity is under strain, raising substantial doubt about its ability to continue as a going concern. The company is pursuing additional financing through a securities purchase agreement, which includes senior secured convertible notes. However, market conditions and share price volatility pose risks to accessing this capital. Additionally, ongoing supply chain issues and inflationary pressures could further impact operational costs and financial stability.