Workhorse Group Inc. (NASDAQ:WKHS) sagged in Thursday trading after surging 214.5% on Wednesday.
The Cincinnati-based firm released financial figures this week, which revealed that sales for the first quarter of 2019 were recorded at $364,000, down from $560,000 in the first quarter of 2018. The decrease in sales was primarily due to a decrease in volume of trucks delivered.
Selling, general and administrative expenses decreased 12% to $2.1 million from $2.4 million in the same period last year. The decrease in selling, general and administrative expenses was primarily due to decreased spending in areas such as marketing as well as decreases in other employee-related expenses.
Total operating expenses decreased 27% to $3.5 million from $4.7 million in the same period last year. The decrease in total operating expenses was due to the lower SG&A and R&D spend previously mentioned.
Net loss was $6.3 million, compared with a net loss of $6.4 million in the first quarter of 2018. The improvement in net loss was due primarily to the significant reduction in operating expenses previously mentioned.
As of March 30, 2019, the company had cash, cash equivalents and short-term investments of $2.8 million compared to $1.5 million as of December 31, 2018.
Thursday brought word that GM was in talks about a plant deal for EV truck production. The company says the move has the potential to bring significant production and electric vehicle assembly jobs to the plant.
Under the terms of the proposed deal, Workhorse would hold a minority interest in the new entity, which will be led by Workhorse founder Steve Burns.
Shares sank 43 cents, or 16.2%, to $2.22
