Workhorse stock discussion7/30/2023 What are Workhorse's plans? The company is guiding for revenue in 2023 to come in between $75 million and $125 million on the back of a ramp of its commercial EVs and drones. Whilst bulls could highlight the potential end of current risk-off market sentiment as a possible catalyst for Workhorse's commons, any large upward moves would likely immediately come with a dilution. A move that is rendered a Sisyphean undertaking with its stock priced so low. Workhorse faces having to 2x its shares outstanding over the next three years to meet its cash demands. Hence, the current cash position looks precarious when an expected capital expenditure of $15 million to $25 million is aggregated with this figure. The company will likely realize cash burn from operations of at least $75 million through 2023. The existential factor facing Workhorse is the forecasted gap between near-term cash demands against its current liquidity position. What's jarring is that Workhorse is still broadly pre-revenue with negative gross profits, around a gross loss of $17.8 million during the fourth quarter, and is realizing elevated cash burn from operations. The company still has an at-the-market facility in place and leant on it during its fourth quarter with its shares outstanding reaching 162.95 million shares, up sequentially from 160.2 million shares in the third quarter. The company's average diluted shares outstanding are up by around 284% over the last five years, an increase of roughly 57% per year. Data by YChartsĬritically, Workhorse now faces the option of dilution or dilution. The 70% decline in the commons over the last year could be extended as the company faces a liquidity gap that will be hard to plug against a stock price that has now fallen below Nasdaq's minimum listing requirement. That the company now faces a cash runway of just under one year following a 50.7% decline in its cash and equivalents to $99.3 million as of the end of its fiscal 2022 fourth quarter largely reflects not just operational missteps but a stock market that has become the antithesis to companies like Workhorse. The stock has dropped 43.Workhorse ( NASDAQ: WKHS) was not meant to be facing a liquidity crunch in 2023. The company had $79.1 million in cash and cash equivalents as of March 31. “We expect to ramp up production and delivery throughout the rest of the year, which will generate significant revenue growth in 2023,” Chief Financial Officer Bob Ginnan said. The company affirmed its 2023 revenue guidance range of $75 million to $125 million. Cost of sales increased 36% to $5.3 million, while research and development expenses grew 80% to $7.2 million. Sales jumped to $1.69 million from $14,299, due to sales volume of the W4 CC cab chassis, but was below the FactSet consensus of $9.9 million. The number of shares outstanding used in calculating per-share results increased 10% to 167.14 million. The net loss was $25.0 million, or 15 cents a share, after a loss of $22.1 million, or 15 cents a share, in the year-ago period. Sank 5.2% toward a 4-year low in morning trading Monday, after the electric vehicle maker reported a narrower-than-expected loss but revenue that fell short of forecasts, while affirming the full-year outlook.
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