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Workhorse Group Inc. (WKHS-0.93%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing sales of $2,509,717, a decrease from $3,028,545 in the same quarter the previous year. The decrease is attributed to the non-recurrence of a sales allowance reversal related to W4 CC vehicle sales recognized in the prior period.
Cost of sales for the quarter was $6,642,549, resulting in a gross loss of $4,132,832. This is consistent with the previous year's cost of sales of $6,557,358.
Selling, general, and administrative expenses decreased to $7,722,014 from $11,756,291, primarily due to a decrease in employee compensation and related expenses.
Research and development expenses were $2,313,423, down from $5,771,588 in the previous year, driven by lower employee compensation and consulting expenses.
Net loss for the quarter was $25,135,559, compared to $30,645,712 in the previous year. Interest expense increased due to financing fees related to funds received.
Cash used in operating activities was $40,115,793, a decrease from $95,546,635 in the previous year, attributed to reduced inventory spending and cost-saving measures.
Workhorse had cash and cash equivalents of $3,244,806 as of September 30, 2024, compared to $25,845,915 at the end of 2023. The company acknowledges its dependence on additional financing to meet future obligations.
The filing also details various financial agreements, including a 2024 Securities Purchase Agreement for senior secured convertible notes and warrants.
Workhorse is currently out of compliance with Nasdaq's minimum bid price requirement, with a compliance period to regain compliance by March 31, 2025.
The company continues to focus on increasing sales of its trucks and services, reducing expenses, and raising capital through various strategic initiatives.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Workhorse Group Inc. quarterly 10-Q report dated November 19, 2024. To report an error, please email earnings@qz.com.