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Workhorse (NASDAQ:WKHS) shares are limping into Tuesday’s midday after the company’s Q4 results underscored the financial challenges the company faces as it attempts to implement its strategic commercial vehicle product offerings.
“We are in the process of negotiating with financing sources for a transaction that would make liquidity available both in the short-term and over time. As part of our cost-saving actions, we have made the decision to transition the Aero business to a less capital-intensive Drones-as-a-Service model…and reducing headcount significantly across the rest of the organization,” CEO Rick Dauch said.
In addition to a 20% reduction in the company’s headcount, each executive officer agreed to defer payment of 20% of their cash compensation for at least the next three months. Workhorse (WKHS) has also declined to issue 2024 guidance as it attempts to strengthen its financial position and increase production.
For Q4, the company, which designs and manufactures zero-emission commercial vehicles, reported a loss of $0.19 per share, narrowing from a loss of $0.24 per share in the same quarter last year, on a 29% increase in sales to $4.4M. This compares to the Street’s consensus for a loss of $0.09 per share on $2.84M in revenue.
At the end of the year, the company had $25.8M in cash and cash equivalents and a restricted cash balance of $10M.
Workhorse (WKHS) shares are down 10% Tuesday and have lost 12% in value year-to-date.