CINCINNATI, Aug. 9, 2017 /PRNewswire/ -- Workhorse Group
Inc. (NASDAQ: WKHS) ("Workhorse" or the "Company"), an American
technology company focused on providing sustainable and
cost-effective electric mobility solutions to the transportation
sector, today announced its financial results for the second
quarter of 2017.
QUARTERLY SUMMARY and HIGHLIGHTS
- Initiated manufacturing and delivery of 200+ ($10M order) delivery vans for UPS, Alpha Baking,
FedEx and Brinks
- Delivered 42 E-GEN vehicles, 6 in Q2 and 36 to-date in Q3
- Announced strategic partnership for sales and service with
Ryder System, Inc.
- Testing underway on the first Workhorse hydrogen fuel cell
(Plug Power) prototype delivery truck for FedEx Express
- Backlog of 170 Workhorse electric delivery vans
- Q1/2017 vs. Q2/2017 revenue was down $965K
- For the six months ended June 30,
2017 vs. the same period in 2016, revenue was up
$578K
- Unveiled W-15 concept pickup truck on May 2, 2017 and increased LOI's to more than
5,000
- Unveiled SureFly concept multicopter at Paris Air Show on
June 19, 2017 and initiated
$1,000 deposit pre-order program
Workhorse CEO Steve Burns
commented, "We achieved several important milestones this quarter,
setting the stage for our planned transition to commercial scale
operations. We have continued to focus on delivery of customer
orders, improving our supply chain and increasing manufacturing
output. The Ryder relationship expands our sales and service
capability to fleets of any size, so that we can now offer the
E-100 and E-GEN to any fleet operator in North America. In addition, we have received
tremendous customer interest in our W-15 pickup truck and SureFly
multicopter."
Gross margin was negative $0.7
million for the quarter. Operating expenses for the quarter
were $8.5 million, due to increases
in research and development, sales and G&A expenses compared to
previous quarters.
Cash used from operation year to date was $19.7 million used for working capital, including
inventory purchases for our current backlog and R&D expenses
primarily related to the development of the mail delivery vehicle
and the W-15 pickup truck. On the financing activities, of
the $24.6 million raised, the Company
received $20.5 million from the stock
public offering.
About Workhorse Group
Workhorse is a technology company focused on providing electric
mobility solutions to the commercial transportation sector. As an
American original equipment manufacturer, we design and build high
performance battery-electric vehicles including trucks and
aircraft. We also develop cloud-based, real-time telematics
performance monitoring systems that are fully integrated with our
vehicles and enable fleet operators to optimize energy and route
efficiency. All Workhorse vehicles are designed to make the
movement of people and goods more efficient and less harmful to the
environment. For additional information visit
www.workhorse.com.
Forward Looking Statements
This press release includes forward-looking statements.
These statements are made under the "safe harbor" provisions of the
U.S. Private Securities Litigation Reform Act of 1995. These
statements may be identified by words such as "believes,"
"expects," "anticipates," "estimates," "projects," "intends,"
"should," "seeks," "future," "continue," or the negative of such
terms, or other comparable terminology. Forward-looking statements
are statements that are not historical facts. Such
forward-looking statements are subject to risks and uncertainties,
which could cause actual results to differ materially from the
forward-looking statements contained herein. Factors that
could cause actual results to differ materially include, but are
not limited to: our limited operations and need to expand in the
near future to fulfill product orders; risks associated with
obtaining orders and executing upon such orders; the ability to
protect our intellectual property; the potential lack of market
acceptance of our products; potential competition; our inability to
retain key members of our management team; our inability to raise
additional capital to fund our operations and business plan; our
inability to maintain our listing of our securities on the Nasdaq
Capital Market; our ability to continue as a going concern; our
liquidity and other risks and uncertainties and other factors
discussed from time to time in our filings with the Securities and
Exchange Commission ("SEC"), including our annual report on Form
10-K filed with the SEC. Workhorse expressly disclaims any
obligation to publicly update any forward-looking statements
contained herein, whether as a result of new information, future
events or otherwise, except as required by law.
Workhorse Group,
Inc.
|
Consolidated Balance
Sheets
|
June 30, 2017 and
December 31, 2016
|
|
|
|
|
June 30,
2017
|
December 31,
2016
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
Cash and cash
equivalents
|
$
5,420,876
|
$
469,570
|
Accounts
receivable
|
270,000
|
628,700
|
Lease receivable
current
|
69,423
|
98,400
|
Inventory
|
9,466,288
|
2,464,835
|
Prepaid expenses
and deposits
|
767,065
|
255,163
|
|
15,993,652
|
3,916,668
|
|
|
|
Property, plant and
equipment, net
|
5,804,179
|
6,002,631
|
Lease receivable
long-term
|
224,488
|
320,494
|
|
|
|
|
$
22,022,319
|
$
10,239,793
|
|
|
|
Liabilities and
Stockholders' Equity (Deficit)
|
|
|
|
|
|
Current
liabilities:
|
|
|
Accounts
payable
|
$
7,532,644
|
$
3,923,758
|
Accounts
payable, related parties
|
77,937
|
101,339
|
Shareholder
advances
|
1,004,201
|
229,772
|
Current portion
of long-term debt
|
30,493
|
79,521
|
|
8,645,275
|
4,334,390
|
|
|
|
Long-term
debt
|
2,075,415
|
2,088,429
|
|
|
|
Stockholders' equity
(deficit):
|
|
|
Series A
preferred stock, par value of $.001 per share 75,000,000
shares
|
|
authorized, 0 shares issued and outstanding at June 30,
2016
|
|
|
and
December 31, 2015
|
-
|
-
|
Common stock,
par value of $.001 per share 50,000,000 shares
authorized,
|
|
36,410,270 shares issued and outstanding at June 30, 2017
and
|
|
|
27,578,864 shares issued and outstanding at December 31,
2016
|
36,410
|
27,579
|
Additional
paid-in capital
|
91,458,738
|
66,862,608
|
Accumulated
deficit
|
(80,193,519)
|
(63,073,213)
|
|
11,301,629
|
3,816,974
|
|
|
|
|
$
22,022,319
|
$
10,239,793
|
|
|
|
See accompanying
notes to financial statements.
|
Workhorse Group,
Inc.
|
Consolidated
Statements of Operations
|
For the Three and Six
Months Ended June 30, 2017 and 2016
|
(Unaudited)
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
Six Months Ended June
30,
|
|
2017
|
2016
|
2017
|
2016
|
|
|
|
|
|
Sales
|
$
270,000
|
$
1,234,600
|
$
2,048,037
|
$
1,470,600
|
|
|
|
|
|
Cost of
Sales
|
995,925
|
2,294,675
|
5,308,013
|
2,759,052
|
Gross loss
|
(725,925)
|
(1,060,075)
|
(3,259,976)
|
(1,288,452)
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
Selling, general and
administrative
|
2,640,590
|
1,616,390
|
4,748,172
|
2,787,382
|
Research and
development
|
5,811,333
|
258,798
|
9,054,655
|
3,199,738
|
Total operating
expenses
|
8,451,923
|
1,875,188
|
13,802,827
|
5,987,120
|
|
|
|
|
|
Interest expense,
net
|
21,852
|
567
|
57,503
|
40,270
|
|
|
|
|
|
Net
loss
|
$
(9,199,700)
|
$
(2,935,830)
|
$
(17,120,306)
|
$
(7,315,842)
|
|
|
|
|
|
Basic and diluted
loss per share
|
$
(0.26)
|
$
(0.14)
|
$
(0.49)
|
$
(0.35)
|
|
|
|
|
|
Weighted average
number of common
|
|
|
|
|
shares
outstanding
|
35,273,462
|
20,665,480
|
35,273,462
|
20,665,480
|
Workhorse Group,
Inc.
|
Consolidated
Statements of Cash Flows
|
For the Three Months
Ended March 31, 2017 and 2016
|
(Unaudited)
|
|
|
|
|
|
|
2017
|
2016
|
|
|
|
Cash flows from
operating activities:
|
|
|
Net loss
|
$(17,120,306)
|
$
(7,315,842)
|
Adjustments to
reconcile net loss from operations
|
|
|
to cash used by
operations:
|
|
|
Depreciation
|
269,028
|
190,026
|
Stock based
compensation
|
654,525
|
341,210
|
Write down of
inventory
|
-
|
78,917
|
Effects of changes in
operating assets and liabilities:
|
-
|
-
|
Accounts
receivable
|
358,700
|
(476,100)
|
Inventory
|
(7,001,453)
|
(1,863,213)
|
Prepaid expenses and
deposits
|
(511,902)
|
179,303
|
Accounts
payable
|
3,612,211
|
(3,343)
|
Accounts payable,
related parties
|
-
|
(375,587)
|
|
|
|
Net cash used by
operations
|
(19,739,197)
|
(9,244,629)
|
|
|
|
Cash flows from
investing activities:
|
|
|
Capital
expenditures
|
(70,576)
|
(90,665)
|
Proceeds on
sale of assets
|
124,983
|
|
|
|
|
Net cash provided by (used in) investing activities
|
54,407
|
(90,665)
|
|
|
|
Cash flows from
financing activities:
|
|
|
Payments on
long-term debt
|
(62,042)
|
-
|
Conversion of
note payable
|
-
|
(2,722,500)
|
Shareholder
advances, net of repayments
|
1,004,201
|
1,811,296
|
Issuance of
common and preferred stock
|
23,060,074
|
-
|
Exercise of
warrants and options
|
633,863
|
6,231,497
|
|
|
|
Net cash provided by
financing activities
|
24,636,096
|
5,320,293
|
|
|
|
Change in cash and
cash equivalents
|
4,951,306
|
(4,015,001)
|
|
|
|
Cash at the beginning
of the period
|
469,570
|
7,677,163
|
Cash at the end of
the period
|
5,420,876
|
3,662,162
|
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SOURCE Workhorse Group Inc.