CINCINNATI, Aug. 15, 2016 (GLOBE NEWSWIRE) -- Workhorse Group Inc. (NASDAQ:WKHS), a last-mile delivery technology company that is an original equipment manufacturer of medium-duty, battery-electric trucks and fully integrated unmanned aerial delivery drones, today announced its financial results for the second quarter of 2016.

The second quarter marked the start of commercial manufacturing for Workhorse, as it registered $1.2 million in quarterly sales from the delivery of battery-electric Workhorse vehicles. The vehicles delivered were a combination of both the range-extended Workhorse E-GEN and the Workhorse E-100 all-electric platforms.

Steve Burns, Chief Executive Officer, commented, “We started the delivery of our battery-electric medium-duty trucks to our customers. We intend to continue to ramp up production and execute delivery of customer orders. We have also received great feedback and accolades for our product’s efficiency and user experience.”

Gross margin for the quarter was negative $1 million. As manufacturing volume increases, Workhorse expects to benefit from volume pricing from suppliers. The company intends to reduce costs and achieve manufacturing efficiencies through advanced engineering. Research and Development costs for the quarter were $1.4 million lower than last year due to a shift in the available resources toward manufacturing activities.

Cash used from operations year to date was $9.6 million, which was predominantly due to the ramp up of production. On financing activities, Workhorse became debt-free as it successfully paid off their Navistar loan ($2.7M), and received funds from the exercising of current investor warrants ($8.4M). In order to appropriately finance the company’s expected increase in production, the company is evaluating its financing opportunities which may include equity and/or debt capital raises.

Investor Conference Call

The investor conference call to discuss the second quarter 2016 update will be at 5:00 PM ET today, Monday, August 15, 2016.

Shareholders and other interested parties may participate in the upcoming investor conference call by dialing 877-407-8289 and asking to be connected to the Workhorse Conference Call a few minutes before 5:00 PM ET today, August 15, 2016. International participants may participate in the upcoming investor conference call by dialing 201-689-8341 and asking to be connected to the Workhorse Conference Call a few minutes before 5:00 PM ET today, August 15, 2016. The call will also be broadcast live on the Internet at:

A replay of the conference call will be available approximately two hours after the completion of the call through August 22. To access the replay, please dial: 1-877-660-6853; international participants should dial: 1-201-612-7415.

Forward Looking Statements

This press release includes forward-looking statements.  These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as "believes," "expects," "anticipates," "estimates," "projects," "intends," "should," "seeks," "future," "continue," or the negative of such terms, or other comparable terminology. Forward-looking statements are statements that are not historical facts.  Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from the forward-looking statements contained herein.  Factors that could cause actual results to differ materially include, but are not limited to: our limited operations and need to expand in the near future to fulfill product orders; risks associated with obtaining orders and executing upon such orders; the ability to protect our intellectual property; the potential lack of market acceptance of our products; potential competition; our inability to retain key members of our management team; our inability to raise additional capital to fund our operations and business plan; our inability to maintain our listing of our securities on the Nasdaq Capital Market; our ability to continue as a going concern; our liquidity and other risks and uncertainties and other factors discussed from time to time in our filings with the Securities and Exchange Commission ("SEC"), including our annual report on Form 10-K filed with the SEC.  Workhorse expressly disclaims any obligation to publicly update any forward-looking statements contained herein, whether as a result of new information, future events or otherwise, except as required by law.

About Workhorse Group

Workhorse Group Inc. is a U.S.-based original equipment manufacturer of medium-duty, EPA-approved battery-electric delivery vehicles and fully integrated truck-launched, FAA compliant unmanned aerial systems (UAS) delivery drones. The company is also a developer of a cloud-based, real-time telematics performance monitoring system that provides fleet operators ultimate energy and route efficiency. For additional information visit

Workhorse Group Inc.
Consolidated Statement of Operations
For the Three and Six Months Ended June 30, 2016 and 2015
 Three Months Ended
June 30,
Six Months Ended
June 30,
  2016  2015  2016  2015 
Sales$1,234,600 $ 67,980 $1,470,600 $ 67,980 
Cost of Sales 2,294,675    -    2,759,052    - 
Gross profit (loss) (1,060,075)   67,980    (1,288,452)    67,980 
Operating Expenses    
Selling, general and administrative 1,616,390    968,811  2,787,382  2,037,058 
Research and development   258,798    872,234  3,199,738  1,719,368 
Total operating expenses 1,875,188  1,841,045  5,987,120  3,756,426 
Interest expense, net   567    108,227    40,270    252,205 
  Net loss$(2,935,830)$(1,881,292)$(7,315,842)$(3,940,651)
Basic and diluted loss per share$  (0.14)$  (0.12)$  (0.35)$  (0.25)
Weighted average number of common shares outstanding    
   20,665,480   15,817,267   20,665,480    15,817,267 

Workhorse Group Inc.
Consolidated Balance Sheets
June 30, 2016 & December, 31 2015
 June 30, 2016
December 31,
Current assets:  
  Cash and cash equivalents$ 3,662,162 $ 7,677,163 
  Accounts receivable   476,100    - 
  Inventory   1,863,213    78,917 
  Prepaid expenses and deposits   698,349    3,149,289 
    6,699,824    10,905,369 
Property, plant and equipment, net   3,636,998    3,736,359 
 $10,336,822 $ 14,641,728 
Liabilities and Stockholders' Equity (Deficit)  
Current liabilities:  
  Accounts payable$1,490,865 $  1,606,695 
  Accounts payable, related parties   23,955     399,542 
  Notes payable   -    13,534,426 
  Shareholder advances   1,922,996     111,700 
  Current portion of long-term debt   50,000     2,772,500 
    3,487,816     18,424,863 
Stockholders' equity (deficit):  
  Additional paid-in capital   51,555,885    33,557,615 
  Stock based compensation   6,102,071    6,158,390 
  Accumulated deficit (50,833,187)   (43,517,345)
    6,849,006      (3,783,135)
 $10,336,822   $  14,641,728 

Workhorse Group Inc.
Consolidated Statements of Cash Flows
For the Six Months Ended June 30, 2016 and 2015
 Six Months Ended June 30,
  2016  2015 
Cash flows from operating activities:  
Net loss during the development stage$(7,315,842)$ (3,940,651)
Adjustments to reconcile net loss from operations to cash used by operations:  
  Depreciation   190,026    187,802 
  Stock based compensation   341,210    165,922 
  Interest expense on convertible debentures   -    23,777 
  Rent and legal, consulting & investment services   -    168,873 
Interest expense paid in kind   -    247,500 
Write down of inventory   78,917    120,167 
  Effects of changes in operating assets and liabilities:  
  Accounts receivable   (476,100)   - 
  Inventory reserve  (1,863,213)   - 
  Prepaid expenses and deposits   179,303    (34,848)
  Accounts payable   (3,343)   214,105 
  Accounts payable, related parties   (375,587)   26,195 
  Net cash used by operations   (9,244,629)   (2,821,158)
Cash flows from investing activities:  
  Capital expenditures   (90,665)   (35,530)
  Net cash provided (used) by investing activities   (90,665)   (35,530)
Cash flows from financing activities:  
  Proceeds from notes payable   -    460,000 
  Payments on long-term debt   (2,722,500)   (4,170)
  Conversion of note payable   -    392,000 
  Shareholder advances, net of repayments   1,811,296    700,500 
  Issuance of common and preferred stock   -     1,027,031 
  Exercise of warrants   6,231,497    - 
  Net cash provided by financing activities   5,320,293    2,575,361 
Change in cash and cash equivalents  (4,015,001)   (281,327)
Cash at the beginning of the period   7,677,163    442,257 
Cash at the end of the period   3,662,162    160,931 
Daniel Zito
Executive Vice President
Workhorse Group Inc. 513-300-5910

Laura Radocaj
Dian Griesel Int'l.