Workhorse stock hits 52-week low at $0.46 amid steep decline

Workhorse Group Inc. (NASDAQ:WKHS), a company specializing in electric transportation and utility vehicles, has seen its stock price plummet to a 52-week low of $0.46, marking a 93% decline from its 52-week high of $7.12. With a market capitalization now at just $19 million, InvestingPro analysis indicates the company is currently trading below its Fair Value. This significant drop reflects a challenging year for the company, with the stock experiencing a precipitous 1-year decline of -91.84%. Investors have been wary as Workhorse faced operational headwinds, including a concerning cash burn rate and weak gross profit margins of -333%. The current price level represents a critical juncture for the company as it navigates through a competitive and rapidly evolving electric vehicle landscape. InvestingPro subscribers have access to 20 additional key insights and a comprehensive Pro Research Report that provides deep-dive analysis of WKHS’s financial health and future prospects.

In other recent news, Workhorse Group Inc. has secured significant financing through a series of agreements. The company announced a $35 million financing deal involving a senior secured convertible note and a warrant to purchase common stock, which is part of a larger financing strategy that could total up to $139 million. Additionally, Workhorse has issued $3.5 million in convertible notes, further strengthening its capital structure. These financial maneuvers are aimed at bolstering the company’s operations and strategic initiatives.

In a notable corporate development, Workhorse has appointed Berkowitz Pollack Brant Advisors + CPAs, LLP as its new independent auditor for the fiscal year 2024. This appointment follows the decision of their previous auditor, Grant Thornton LLP, not to stand for reappointment, citing concerns about Workhorse’s ability to continue as a going concern. Despite this, Grant Thornton reported no disagreements with Workhorse on accounting principles or practices.

Workhorse is also evaluating its financial reserves, particularly concerning its W4 CC trucks, which may result in an additional reserve of up to $1.8 million for the year ended December 31, 2024. Investors should be aware that the issuance of convertible notes could lead to dilution of existing shares, although measures are in place to cap beneficial ownership. These recent developments reflect Workhorse’s ongoing efforts to manage its financial position and navigate the competitive electric vehicle market.

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