Workhorse issues $3.5M convertible note at 9%; expects $1.5-1.8M impairment on W4 CC prepaids

Workhorse Group Inc.

Issued $3.5M senior secured note (12.5% OID) to institutional investor; proceeds ~$3.06M before fees, due in 1 year.
Note carries 9% cash/kind interest (18% default); convertible at lower of $0.4996 or 87.5% of 10-day VWAP (floor $0.1190).
Investor waived warrants for this tranche; $5.8M remaining waiver capacity; ATM program for up to $5M common shares permitted.
Expects to record $1.5-1.8M reserve on W4 CC prepaid purchases as of Dec 31, 2024, due to likely impairment.
Total outstanding Notes: $5.65M after this $3.5M issuance; no shares yet issued under warrants.

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