Business
Workhorse Group Reports Fourth Quarter and Full Year 2019 Results
CINCINNATI, March 10, 2020 /PRNewswire/ -- Workhorse Group Inc. (NASDAQ: WKHS) ("Workhorse" or "the Company"), an American technology company focused on
About this update from Workhorse Group, Inc.
[{"type":"text","content":"CINCINNATI, March 10, 2020 /PRNewswire/ -- Workhorse Group Inc. (NASDAQ: WKHS) (\"Workhorse\" or \"the Company\"), an American technology company focused on providing sustainable and cost-effective electric vehicles to the last mile delivery sector, today reported financial results for the fourth quarter and full year ended December 31, 2019.\n\n \n \n \n \n \n \n\n \nRelease Updates and Highlights\nSold non-core assets and intellectual property allowing full strategic focus on last mile C-Series delivery vehicles and patented HorseFly drone truck mounted technology. Started production and are obtaining certifications to allow for delivery of vehicles to customers in April. Established a production and delivery target of 300-400 vehicles in 2020. Recorded non-cash license income of $12.2 million associated with the Lordstown Motors Corporation (LMC) investment.Management Commentary\"In the fourth quarter we were able to complete transactions that allowed us to narrow our focus on our unique business of providing an all-electric, customer-focused design C-Series delivery vehicles and patented vehicle-mounted drones that can meet the needs of an $18 billion market where 300,000 trucks are replaced annually,\" said Workhorse CEO Duane Hughes.\n\"We also made meaningful progress in our transition from a development-stage company to a production-focused enterprise. We have now begun production and have obtained the needed certifications that will allow us to deliver a limited number of vehicles to our customers starting in April. While our intent had been to deliver initial vehicles in the first quarter of 2020, we were impeded by material supply disruptions related to the global outbreak of the novel coronavirus. Despite these near-term headwinds, we are setting a 2020 production target of 300-400 vehicles and are looking forward to delivering our state-of-the-art truck to our customers.\" \nFourth Quarter 2019 and Recent Operational Highlights\nDecember 2019: Completed an Asset Purchase Agreement with aerospace and defense company Moog for the sale of the Company's SureFlyTM electric helicopter for a cash purchase price of $4 million as well as formed a joint venture (JV) involving the Company's HorseFlyTM last-mile drone delivery system. December 2019: Closed a $41 million financing from an institutional lender, the proceeds of wh...