Workhorse Group Inc (WKHS)

[busterator]

Management is very concerned about share price. The problem is that the company is constantly on the edge of running out of cash. Even the big influx of funds from the raise + overallotment isn't enough to take them past early Q4 if they expect to have any working capital for UPS NGens and the W-15 test vehicles. Even then the co. will be a gnat's posterior away from potential insolvency proceesdings by angry suppliers who were owed over $5M at the end of June, most of which was very delinquent.

Also don't forget that they must get the SureFly sold for at least $20M by the end of January. If that doesn't happen Arosa can hold them to the default terms of the Loan. Since the aircraft has flown less than an hour as of July, has no engine (see interviews with pilot John Graber), and is still not allowed/able to fly at any meaningful altitude (over 5 feet), WKHS must spend a great deal of engineering to make the vehicle marketable in a very short time.

Remember they cannot take any loans. All of their property is secured by the Loan from Arosa. And, by the terms of their agreement with underwriter NSC, they are still about 2 months away from being able to do an "at the market" raise. Of course everything is negotiable, but since NCS bought the overallotment at $1.07 I'm almost certin they would exact a penalty.

Workhorse is in very dire straits.