secwatch.observer — SEC 8-K summary
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Issuer:     Workhorse Group Inc. (WKHS)
CIK:        0001425287
Form:       8-K
Filed at:   2025-01-27T23:59:59+00:00
Accession:  0001213900-25-006717
Event type: debt
Sentiment:  negative
Materiality: 0.75
Item codes: 1.01, 2.03, 8.01, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

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

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/1425287/000121390025006717/0001213900-25-006717-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/1425287/000121390025006717/ea022877001-8k_workhorse.htm
  HTML page:      https://secwatch.observer/filing/0001213900-25-006717

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