$Workhorse(WKHS)$Anyone attended the earnings call earlier?

From the statement they put out: “Cost of goods sold increased to $6.2 million from $1.7 million in the same period last year. The increase in cost of goods sold was primarily related to an increase in the volume of trucks shipped as well as an increase in employee costs.

Selling, general and administrative (“SG&A”) expenses increased to $6.9 million from $5.6 million in the same period last year. The increase in SG&A expenses was primarily attributable to an increase in employee and consulting costs.”

I went to compare the COGS and SG&A for last quarter to this year as they only compared Q120 to Q121

COGS for last quarter was 6.99M for net sales of approx. 652k. This time net sales dropped to 521k but COGS is still a hefty 6.2M. This increase in cost per dollar of sales was attributable for an increase in employee costs apparently.

As for the SG&A expenses this time it has ballooned to 6.9M, last quarter it was 4.69M. Again it was explained that this was due to increase in “employee and consulting costs”.

I was hoping the management can come up with more detailed explanations for ballooning costs and expenses. Sadly I did not get this from their call. I get that this is a growing company and that for automotive industries we don’t really see qoq but I think this just shows they are going to be burning through a lot of cash before they can start showing some profits. More share weakness to be expected in the near term? Should we continue holding or is it better to allocate elsewhere till the EV industry stabilises?

Let me know your thoughts!