Summary by Moomoo AI
Workhorse Group reported Q3 2024 revenue of $2.5M, down from $3.0M in Q3 2023, while net loss widened to $25.1M from $30.6M year-over-year. The decline in revenue was primarily due to slower-than-anticipated electric truck adoption rates and lack of government subsidies. Gross loss increased to $4.1M from $3.5M in the prior year period.The company implemented significant cost-reduction measures, including a 20% workforce reduction, employee furloughs, and the divestiture of its Aero business, which is expected to generate monthly savings of $0.4M. Operating expenses decreased to $10.0M from $17.5M year-over-year, driven by lower employee compensation and consulting expenses.As of September 30, 2024, Workhorse had $3.2M in cash and cash equivalents, with working capital of $7.9M. The company secured additional financing through a $139M convertible notes agreement, though management noted substantial doubt about its ability to continue as a going concern without successful execution of its strategic plans to improve liquidity and working capital requirements.
