Workhorse (NASDAQ:WKHS) shares are declining in after-hours trading following the release of the company’s delayed Q2 results, which raised concerns about its ability to continue as a going concern.
According to a filing with the U.S. Securities and Exchange Commission, Workhorse stated, “As a result of our recurring losses from operations, accumulated deficit, projected capital needs, and delays in bringing our vehicles to market and lower than expected market demand, substantial doubt exists regarding our ability to continue as a going concern within one year after the issuance date of the accompanying Condensed Consolidated Financial Statements.”
Last week, Workhorse (WKHS) postponed the release of Q2 results without providing a reason, causing shares to drop significantly as investors anticipated negative news from the commercial EV manufacturer.
In Q2, Workhorse (WKHS) reported a loss of $26.3M, or $(1.40) per share compared to $(2.40) per share in the same quarter last year, with a 78% decrease in revenue to $842,440. The number of outstanding shares in the most recent quarter doubled to 18.9K following a reverse stock split in June.
Cash and cash equivalents on the balance sheet decreased to $5.3M from $62.4M at the end of June 2023.
Furthermore, Workhorse’s attempts to raise cash through the sale leaseback of its Union City, Indiana manufacturing facility were unsuccessful. The company terminated the transaction with William Repny LLC and is currently in negotiations with other potential buyers at a significantly lower price. Workhorse will need to find another tenant to make the sale feasible, as the facility is only partially utilized by the company.
Workhorse (WKHS) will hold its earnings call on Tuesday at 11am ET.
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