Greetings and welcome to the Workhorse Group Q1 2025 Earnings Conference Call and Webcast. At this time, all participants are in a listen-only mode. [Operator Instructions] A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to Stan March. Please go ahead, Stan.

Thank you very much, Kevin. Good morning. We'd like to welcome all of you to Workhorse's Q1 2025 results call. Before we begin, I'd like to note that we posted our results for the first quarter, which ended March 31st, 2025, via press release this morning, and you can find the press release and an accompanying investor presentation that will form the basis of today's call in the Investor Relations section of our website. We'll be tracking along with the presentation during the call. Joining me on today's call are Rick Dauch, our CEO; and Bob Ginnan, our CFO. For today's agenda, please turn to Slide 3. Following my opening comments, I'll hand the call over to Rick, who'll give an update on our strategic and operational priorities and deliverables during Q1. Bob will then walk us through our financial results before discussing our continued actions to preserve cash and extend our financial runway. Then Rick will wrap it up before we open the call to questions. Turning to Slide 4, you can find our disclaimer. Some of the comments that will be made on this call today are forward-looking and are subject to certain provisions and are also subject to risks and uncertainties. You can find the full disclaimer in our periodic SEC filings as well as today's release. With that behind us, I'd like to now turn the call over to Rick Dauch. Rick?

Thanks, Stan. Good morning, everybody. As we wrap up the first quarter of 2025, customer demand in the commercial EV market continues to shift. But our direction here at Workhorse has never been more focused to design and build dependable, capable electric trucks, prove they perform in the field and win business by earning our customers' confidence and their purchase orders. As some competitors are finding out that doesn't happen through PowerPoint decks or prototype factories. It takes real hardcore execution to include rigorous design, engineering and testing, strong partnerships with proven commercial vehicle industry suppliers, upfitters, dealers and service partners. And it takes a dedicated talented workforce that shows up and gets the job done every day. This quarter we continue to execute on our strategy of focusing on our people, our products, our processes and our partners. Midway through the second quarter, interest in our vehicles is accelerating and momentum is building where it counts through vehicle orders, real world fleet customer deployments and steady progress along our product technology roadmap. Most importantly, the W56 is earning a strong reputation among early adopters as the best commercial EV step van on the market. Those aren't our words, it's direct feedback from several customers who are operating Workhorse trucks in the field as we speak. While others are still testing products are talking about building future factories, we're delivering zero tailpipe emission trucks that are on the road and on the job. Fleets are putting our vehicles to work on last mile delivery routes where performance matters. They're cutting operating costs, meeting range requirements and earning the trust of the drivers and fleet managers who rely on our trucks every day. That's how we will win additional business and that's how we'll continue to grow with results not rhetoric.…

Thanks, Rick. Let's turn to Slide 9 to cover the first quarter results. As a reminder, our financial statements have been adjusted for the March 2025 1-to-12.5 reverse stock split. Sales, net of returns and allowances for the first quarter of 2025 were $600,000 compared to $1.3 million in the first quarter of last year. The $700,000 decrease in sales was primarily due to the Aero divestiture and decreased W4 CC and W56 truck sales. Cost of sales for the first quarter of 2025 was $5.2 million a decrease of $2.3 million compared to $7.4 million in the prior year. The cost of sales decrease was primarily driven by lower sales volume, which were partially offset by lower inventory reserves of $500,000 and lower direct and indirect labor costs of $1.6 million primarily due to lower headcount as a result of employee furloughs during the period. Selling, general and administrative expense in the first quarter of 2025were $6.8 million a decrease of $7.3 million compared to $14.1 million in the prior year. The decrease in SG&A expense was primarily driven by a $4.4 million decrease in employee compensation and related expenses, primarily due to lower headcount, a decrease of $1 million in consulting expenses, a decrease in legal and professional expenses of $700,000, a decrease of $500,000 in marketing expense, a decrease in IT related expenses of $500,000 and lower corporate insurance of $500,000. These were all partially offset by increases in rent and depreciation and amortization expenses. Research and development expenses during the first quarter of 2025 were $1.5 million, a decrease of $2 million compared to $3.5 million in the prior year. The decrease in R&D expenses were primarily driven by $1.3 million decrease in employee compensation related expenses due to lower headcount and a $400,000 decrease in…

Thanks, Bob. As we look ahead, our focus remains on disciplined execution and real world impact. In the near-term, that means building and shipping key customer orders, continuing to earn fleet through trust through demos and securing the next round of purchase orders, including FedEx's 2025 PO number two. We're also supporting our dealer network as they drive adoptions across both private and government channels, while strategically showing up at trade shows that align with our mission. Operation, we're ramping production in step with demand, finalizing testing of our 140 kilowatt W56 variant and assessing new North American battery suppliers to further strengthen our supply chain. At the same time, we're maintaining a lean operating environment, converting inventory to revenue and pursuing additional funding to position Workhorse for long-term growth. In short, we're staying focused, moving with intention and scaling smart, turning proven products and customer traction into lasting momentum in the commercial EV market. Thank you for your support and your patience. And Kevin I'll turn it back over to you for questions. Thank you.

Certainly. We'll now be conducting a question-and-answer session. [Operator Instructions] We've reached the end of our question-and-answer session. I'd like to turn the floor back over for any further or closing comments.

No further comments. We appreciate your support. We appreciate your patience. And we're going to put our nose to the grindstone and keep trying to build and sell trucks. Thanks and have a great day. Bye.

Thank you. That does conclude today's teleconference and webcast. You may disconnect your lines at this time and have a wonderful day. We thank you for your participation today. End of Q&A: