"In the first half of this year we accomplished a series of major operational and EV industry milestones, culminating in the first official deliveries of our C-Series trucks to Ryder (R) - Get Ryder System, Inc. Report just a few weeks ago," Workhorse Chief Executive Duane Hughes said in a statement.
The company reported revenue of $92,000, short of analyst estimates of $270,000. The net loss was $131.3 million, reflecting $124.3 million of interest expense.
The increase in interest expense from $15.9 million a year earlier reflected a change in the fair value of a convertible note and the mark-to-market adjustment for some non-dilutive warrants issued to a lender, Chief Financial Officer Steve Schrader said.
The company received an initial purchase order for 20 C-1000 trucks from eTrucks in July and also delivered two C-1000 electric step vans to Ryder System.
The Cincinnati company also affirmed its production and delivery target of between 300 and 400 vehicles in 2020.
"Widening our sales funnel through tax incentives, government programs and strategic partnerships, all of which we now have, will allow us greater opportunities to build on our growing backlog," Hughes said.
Two weeks ago, Workhorse's stock price spiked after it secured $70 million of financing from HT Investments MA.
The note Workhorse issued to HT Investments will rank on an equal footing with Workhorse's senior secured convertible note issued in December 2019 and senior to all other debt, the company said.
The note is convertible into common stock at $19 a share. That's 131% of the closing price of Workhorse's common shares on June 29.
The note matures on July 1, 2023, and contains a 4.5% annualized coupon to be paid quarterly in cash or stock beginning Oct. 1.
"With this note in place, we have much greater financial flexibility to support our current and future production needs," Hughes said at the time.