- Ultra violet light Preliminary patent on uvc in cargo area and driver area in order to kill bacteria cut down many of the dangers of Cervezza and other diseases.
- Will use LordsTown Motors to produce faster
- UPS is testing the drone
- They Are manufacturing
- The Patent Pending Winch System For the Drone from 20 Feet or more
- Patented Software, accepting packages, denying packages, exact placement requested.
- Reduce delivery cost up to 80%
- USPS will update
should workhorse be lucky enough to win some of the contract if not the whole thing – meet any capacity level – we will look at the capitol it would take to automate systems and we would look at other areas where we could do sub building and sub contracting. Lordstown is a great example of that, where we could take a large portion of that facility. And possibly do it for a lower cost than what we could do it for.
Clearly we have been evaluating that and that is part of our long term strategy. Shares components from other suppliers.
The 6 protypes we delivered to the USPS ALL had hub motors!!
Hub Motor technology from LORDSTOWN Endurance!
Partnership with Duke is above and beyond infrastructure – they can oporate within our channel partner world and side by side with our channel partner
We can’t talk to other things right now as they aren’t publically available
Workhorse Group forms alliance with Duke Energy to support faster adoption and scaling of fleet electrification
Workhorse Group Inc. and Duke Energy entered into an alliance to offer fleet electrification (eFleet) solutions to existing and future Workhorse customers, including the development of the EV infrastructure requirements for its current and future blue chip customers including both commercial and government fleets.
Potential offerings include single-point management and financing of all the Behind the Meter (BTM) infrastructure necessary to support depot-wide electrification, vehicle financing/battery management programs, solar and energy storage and other distributed energy resources.
Workhorse believes these eFleet solutions will help reduce the overall costs of fleet electrification and accelerate the adoption of electric vehicles into commercial and government fleets. By creating this alliance, Workhorse and Duke Energy will work to reduce the risk and complexity of placing significant orders for Workhorse vehicles and the scaling up of related EV infrastructure.
“In the first half of this year we accomplished a series of major operational and EV industry milestones, culminating in the first official deliveries of our C-Series trucks to Ryder just a few weeks ago,” said Workhorse CEO Duane Hughes. “Additionally, after acquiring the requisite various state and federal approvals in recent months, we are now the only medium duty BEV OEM permitted and able to sell and deliver our vehicles in all 50 states, which should allow us to further distance ourselves as the first movers in the last-mile EV space. Widening our sales funnel through tax incentives, government programs and strategic partnerships, all of which we now have, will allow us greater opportunities to build on our growing backlog. We are now focusing on maximizing our efficiency and output as we look to ramp production throughout the remainder of this year to meet our ambitious delivery campaign goals.”
Second Quarter and Recent Operational Highlights
- August 2020: Workhorse strategic partner Lordstown Motors Corp. (“LMC”) entered into a business combination agreement with DiamondPeak Holdings Corp., a special purpose acquisition company, that will result in LMC becoming a publicly listed company on the NASDAQ under the ticker symbol “RIDE.”
- July 2020: Obtained HVIP Eligibility from CARB, qualifying certain Workhorse C-Series models for monetary vouchers of up to $50,000 per vehicle.
- July 2020: Received initial purchase order for 20 C-1000 trucks from eTrucks LLC, a Cincinnati-based, newly-launched truck buyer, reseller and financier.
- July 2020: Closed a $70 million financing through a Senior Secured Convertible Note with a single institutional investor.
- July 2020: Delivered two C-1000 electric step vans for initial use through Ryder System, Inc.’s ChoiceLease and SelectCare product lines, as well as for short-term rentals on COOP by Ryder® program, a peer-to-peer truck sharing platform.
- July 2020: Awarded Executive Order: A-445-0003 from CARB for the C-Series trucks, designating the C-Series vehicles as zero-emission in the state of California and permitting vehicle sales to all 50 states. Combined with its passing of Federal Motor Vehicle Safety Standards (FMVSS) tests for the C-650 and C-1000 all-electric delivery vans in June, Workhorse is the only American all-electric OEM designing and manufacturing last mile delivery vehicles to successfully complete this level of testing with both entities.
- June 2020: Added to the broad-market Russell 3000® Index at the conclusion of Russell’s annual reconstitution.
- May 2020: Joined the Small UAV Coalition as an associate member alongside leading consumer and technology companies such as Amazon Air, Wing, Intel, PrecisionHawk, and Verizon to advocate for U.S. leadership in the research, development, production, and application of unmanned aerial systems (UAS).
Second Quarter 2020 Financial Results
Sales for the second quarter of 2020 were recorded at $92,000 compared to $5,500 in the second quarter of 2019.
Cost of goods sold increased to $1.5 million from $930,000 in the second quarter of 2019. The increase was primarily driven by increases in labor and materials relating to costs for the C-Series production.
Selling, general and administrative expenses increased to $3.9 million from $2.0 million in the same period last year. The increase was due primarily to increases in consulting expenses, higher employee related costs and incentive stock expenses.
Research and development expenses increased to $1.6 million from $1.2 million in the second quarter of 2019. The increase was mostly due to increases engineering, staffing and consulting expenses was related to the design of the C-Series.
Interest expense, net increased to $124.3 million compared to an interest expense, net of $15.9 million in the same period last year.
“It should be noted that this significant increase of $108.4 million in interest expense was almost exclusively due to the change in fair value of our convertible note and the mark-to-market adjustment for some non-dilutive warrants issued to a lender,” said Workhorse CFO Steve Schrader. “Both of these GAAP adjustments are non-cash and primarily dependent on the underlying stock components of financial instruments. These large adjustments were the result of a stock price of $17.39 on June 30th compared to $1.81 on March 31st. Due primarily to these non-cash adjustments, our net loss was $131.3 million compared to a net loss of $20.1 million in the second quarter of 2019. A better indication of operating performance would be loss from operations which was $7.0 million this quarter compared to $4.1 million in the second quarter of 2019.”
Currently, as a result of the Company’s $70 million financing and the exercising of previous issued stock warrants and options, the Company has approximately $105 million of cash availability.