Workhorse (WKHS) 10-Q 9 Aug 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2019	Jul. 31, 2019
Document and Entity Information [Abstract]
Entity Registrant Name	Workhorse Group Inc.
Entity Central Index Key	0001425287
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Period End Date	Jun. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Entity Common Stock, Shares Outstanding		66,186,447
Entity File Number	000-53704
Entity Interactive Data Current	Yes
Entity Incorporation State Country Code	NV

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 23,519,496	$ 1,512,750
Lease receivable	42,244	48,271
Inventory	2,197,683	2,533,616
Prepaid expenses and deposits	1,720,319	2,274,595
Current assets, Total	27,479,742	6,369,232
Noncurrent assets:
Property, plant and equipment, net of accumulated depreciation of $2,601,263 and $2,407,477 at June 30, 2019 and December 31, 2018	8,009,037	5,237,451
Lease receivable	179,982	198,090
Assets, Total	35,668,761	11,804,773
Current liabilities:
Accounts payable	2,010,334	4,340,463
Accrued liabilities	4,047,550	3,946,386
Warranty liability	6,573,560	7,058,769
Warrant liability	33,529,599	1,822,819
Customer deposits	359,000	406,000
Duke financing obligation	1,340,700	1,340,700
Revolving loan	5,854,140
Total current liabilities	53,714,883	18,915,137
Long-term debt	8,572,182	8,312,079
Mandatory redeemable series B preferred stock	18,409,510
Commitments and Contingencies
Stockholders' equity (deficit):
Series A preferred stock, par value of $.001 per share 75,000,000 shares authorized, 0 shares issued and outstanding at June 30, 2019 and December 31, 2018
Common stock, par value of $.001 per share 250,000,000 shares authorized, 66,081,812 shares issued and outstanding at June 30, 2019 and 58,270,934 shares issued and outstanding at December 31, 2018	66,082	58,271
Additional paid-in capital	139,670,292	126,076,782
Accumulated deficit	(184,764,188)	(141,557,496)
Stockholders' equity (deficit), Total	(45,027,814)	(15,422,443)
Liabilities and Stockholders' Equity (Deficit), Total	$ 35,668,761	$ 11,804,773

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 0	$ 0
Series A preferred stock, par value	$ 0.001	$ 0.001
Series A preferred stock, shares authorized	75,000,000	75,000,000
Series A preferred stock, shares issued	0	0
Series A preferred stock, shares outstanding	0	0
Property, plant and equipment, net of accumulated depreciation	$ 2,601,263	$ 2,407,477
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	250,000,000	250,000,000
Common stock, shares issued	66,081,812	58,270,934
Common stock, shares outstanding	66,081,812	58,270,934

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Income Statement [Abstract]
Net sales	$ 5,508	$ 170,684	$ 369,690	$ 730,913
Cost of sales	930,164	1,655,905	2,327,770	3,370,275
Gross loss	(924,656)	(1,485,221)	(1,958,080)	(2,639,362)
Operating expenses
Selling, general and administrative	1,996,054	3,003,202	4,086,944	5,403,349
Research and development	1,216,727	1,894,712	2,579,002	4,232,343
Total operating expenses	3,212,781	4,897,914	6,665,946	9,635,692
Interest expense, net	32,718,876	526,162	34,496,459	1,052,049
Net loss	(36,856,313)	(6,909,297)	(43,120,485)	(13,327,103)
Deemed dividends	86,207	765,179	86,207	765,179
Net loss attributable to common stockholders	$ (36,942,520)	$ (7,674,476)	$ (43,206,692)	$ (14,092,282)
Net loss attributable to common stockholders per share - basic and diluted	$ (0.61)	$ (0.18)	$ (0.71)	$ (0.33)
Weighted average number of common shares outstanding	60,530,168	42,406,471	60,530,168	42,406,471

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders Equity (Deficit) (Unaudited) - USD ($)	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Series A Preferred Stock	Total
Balance at Dec. 31, 2017	$ 41,529	$ 107,760,036	$ (104,290,001)		$ 3,511,564
Balance, Shares at Dec. 31, 2017	41,529,181
Issuance of common stock	$ 1,460	4,019,881			4,021,341
Issuance of common stock, shares	3,429,395
Stock options and warrants exercised	$ 45	90,021			90,066
Stock options and warrants exercised, shares	44,643
Warrant exchange	$ 1,969	(1,969)
Deemed dividend, Sept 17 warrants		765,179	(765,179)
Share based compensation		548,263			548,263
Net loss			(13,327,103)		(13,327,103)
Balance at Jun. 30, 2018	$ 45,003	113,181,411	(118,382,283)		(5,155,869)
Balance, Shares at Jun. 30, 2018	45,003,219
Balance at Mar. 31, 2018	$ 41,966	109,106,507	(110,707,807)		(1,559,334)
Balance, Shares at Mar. 31, 2018	41,966,550
Issuance of common stock	$ 1,065	2,832,861			2,833,926
Issuance of common stock, shares	3,034,169
Stock options and warrants exercised	$ 3	2,748			2,751
Stock options and warrants exercised, shares	2,500
Warrant exchange	$ 1,969	(1,969)
Deemed dividend, Sept 17 warrants		765,179	(765,179)
Share based compensation		476,085			476,085
Net loss			(6,909,297)		(6,909,297)
Balance at Jun. 30, 2018	$ 45,003	113,181,411	(118,382,283)		(5,155,869)
Balance, Shares at Jun. 30, 2018	45,003,219
Balance at Dec. 31, 2018	$ 58,271	126,076,782	(141,557,496)		(15,422,443)
Balance, Shares at Dec. 31, 2018	58,270,934
Issuance of common stock	$ 7,184	5,921,051			5,928,235
Issuance of common stock, shares	7,183,488
Stock options and warrants exercised	$ 511	(511)
Stock options and warrants exercised, shares	510,894
Deemed dividend, Sept 17 warrants	$ 116	86,091	(86,207)
Deemed dividend, Sept 17 warrants, shares	116,496
Share based compensation		876,918			876,918
Value of warrants issued with preferred stock		6,709,961			6,709,961
Net loss			(43,120,485)		(43,120,485)
Balance at Jun. 30, 2019	$ 66,082	139,670,292	(184,764,188)		(45,027,814)
Balance, Shares at Jun. 30, 2019	66,081,812
Balance at Mar. 31, 2019	$ 61,497	129,764,361	(147,821,668)		(17,995,810)
Balance, Shares at Mar. 31, 2019	61,496,990
Issuance of common stock	$ 3,958	2,924,542			2,928,500
Issuance of common stock, shares	3,957,432
Stock options and warrants exercised	$ 511	(511)
Stock options and warrants exercised, shares	510,894
Deemed dividend, Sept 17 warrants	$ 116	86,091	(86,207)
Deemed dividend, Sept 17 warrants, shares	116,496
Share based compensation		185,848			185,848
Value of warrants issued with preferred stock		6,709,961			6,709,961
Net loss			(36,856,313)		(36,856,313)
Balance at Jun. 30, 2019	$ 66,082	$ 139,670,292	$ (184,764,188)		$ (45,027,814)
Balance, Shares at Jun. 30, 2019	66,081,812

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash flows from operating activities:
Net loss	$ (43,120,485)	$ (13,327,103)
Adjustments to reconcile net loss to cash used by operations:
Depreciation	193,786	152,525
Amortization of Marathon loan issuance costs	260,103
Amortization of discount on Series B preferred stock	119,471
Amortized discount and debt issuance costs on Senior Secured Notes		987,500
Stock-based compensation	876,918	548,263
Inventory obsolescence reserve	22,221
Change in fair value of warrants	31,706,780
Effects of changes in operating assets and liabilities:
Accounts receivable and lease receivable	24,135	842,798
Inventory	313,712	(342,727)
Prepaid expenses and deposits	554,276	765,043
Accounts payable and accrued liabilities	(2,228,965)	1,980,433
Warranty	(485,209)
Notes payable, related parties		550,000
Customer deposits	(47,000)	265,595
Net cash used by operating activities	(11,810,257)	(7,577,673)
Cash flows from investing activities:
Capital expenditures	(2,965,372)
Net cash used by investing activities	(2,965,372)
Cash flows from financing activities:
Payments on long-term debt		(16,770)
Proceeds from revolving loans	5,854,140
Proceeds from issuance of series B preferred stock	25,000,000
Issuance of common stock	5,928,235	4,021,341
Exercise of warrants and options		90,066
Net cash provided by financing activities	36,782,375	4,094,637
Change in cash and cash equivalents	22,006,746	(3,483,036)
Cash and cash equivalents, beginning of the period	1,512,750	4,069,477
Cash and cash equivalents, end of the period	$ 23,519,496	$ 586,441

Summary of Significant Accounti

Summary of Significant Accounting Principles	6 Months Ended
	Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES	1. SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES The following accounting principles and practices are set forth to facilitate the understanding of data presented in the condensed consolidated financial statements: Nature of operations and principles of consolidation Workhorse Group Inc. (“Workhorse”, the “Company”, “we”, “us” or “our”) is a technology company focused on providing sustainable and cost-effective solutions to the commercial transportation sector. As an American manufacturer, we design and build high performance battery-electric vehicles and aircraft that make movement of people and goods more efficient and less harmful to the environment. As part of our solution, we also develop cloud-based, real-time telematics performance monitoring systems that enable fleet operators to optimize energy and route efficiency. Although we operate as a single unit through our subsidiaries, we approach our development through two divisions, Automotive and Aviation. We are currently focused on our core competency of bringing the N-GEN electric cargo van to market and fulfilling our existing backlog of orders. We are also exploring other opportunities in monetizing our intellectual property which could include a sale, license or other arrangement of assets that are outside of our core focus. The Company’s wholly owned subsidiaries include Workhorse Technologies Inc., Workhorse Motor Works Inc., Workhorse Properties Inc. and Surefly, Inc On May 3, 2019, the Company filed an amendment to its Articles of Incorporation to increase its authorized shares of common stock from 100,000,000 to 250,000,000. Basis of presentation The financial statements have been prepared on a going concern basis, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. However, the Company has limited revenues and a history of negative working capital and stockholders’ deficits. Our existing capital resources are expected to be sufficient to fund our operations through the end of 2019. Unless and until we are able to generate a sufficient amount of revenue, reduce our costs and/or enter a strategic relationship, we expect to finance future cash needs through public and/or private offerings of equity securities and /or debt financings. If we are not able to obtain additional financing and/or substantially increase revenue from sales, we will be unable to continue as a going concern. These conditions raise substantial doubt about the ability of the Company to continue as a going concern. In view of these matters, continuation as a going concern is dependent upon the continued operations of the Company, which, in turn, is dependent upon the Company’s ability to meet its financial requirements, raise additional capital, meet its future bank covenant requirements, and successfully carry out its future operations. The financial statements do not include any adjustments to the amount and classification of assets and liabilities that may be necessary, should the Company not continue as a going concern. The Company has continued to raise capital. Management believes the proceeds from these offerings, future offerings, and the Company’s anticipated revenue, provides an opportunity to continue as a going concern. If additional funding is required, the Company plans to obtain working capital from either debt or equity financing from the sale of common stock, preferred stock, and/or convertible debentures. Obtaining such working capital is not assured. The Company is currently in a production ramp up mode and placing greater emphasis on manufacturing capability. The Marathon Credit Facility includes financial covenants that require our compliance beginning in the fourth quarter of 2019. We expect to be able to satisfy the covenant requirements either through results of operations or the available Equity Cure in the Credit Agreement. In the opinion of Management, the Unaudited Condensed Consolidated Financial Statements include all adjustments that are necessary for the fair presentation of Workhorse’s financial conditions, results of operations and cash flows for the interim periods presented. Such adjustments are of a normal, recurring nature. Intercompany balances and transactions are eliminated in consolidation. The results of operations and cash flows for the interim periods presented may not necessarily be indicative of full-year results. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto of Workhorse contained in its Annual Report on Form 10-K The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates. Certain reclassifications were made to the prior year financial statements to conform to the current year presentation. These reclassifications had no effect on previously reported results of operation or stockholders’ equity (deficit).

Inventory

Inventory	6 Months Ended
	Jun. 30, 2019
Inventory Disclosure [Abstract]
INVENTORY	2. INVENTORY As of June 30, 2019, and December 31, 2018, our inventory consisted of the following: 2019 2018 Raw materials $ 4,285,830 $ 4,319,637 Work in process 422,176 702,079 Finished goods - - 4,708,006 5,021,716 Less: Inventory reserve 2,510,323 2,488,100 $ 2,197,683 $ 2,533,616

Revenue

Revenue	6 Months Ended
	Jun. 30, 2019
Revenue Recognition and Deferred Revenue [Abstract]
REVENUE	3. REVENUE Revenue Recognition Net sales include products and shipping and handling charges, net of estimates for customer allowances. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring products. All revenue is recognized when we satisfy our performance obligations under the contract. We recognize revenue by transferring the promised products to the customer, with the majority of revenue recognized at the point in time the customer obtains control of the products. We recognize revenue for shipping and handling charges at the time the products are delivered to or picked up by the customer. The majority of our contracts have a single performance obligation and are short term in nature. Accounts Receivable Credit is extended based upon an evaluation of the customer's financial condition. Accounts receivable are stated at their estimated net realizable value. The allowance for doubtful accounts is based on an analysis of customer accounts and our historical experience with accounts receivable write-offs. The Company has elected the following practical expedient allowed under ASU 2014-09. Performance obligations are satisfied within one year from a given reporting date, consequently we omit disclosure of the transaction price apportioned to remaining performance obligations on open orders Disaggregation of Revenue Our revenues related to the following types of business were as follows for the periods ended June 30: Three Months Ended Six Months Ended 2019 2018 2019 2018 Automotive $ - $ 118,398 $ 240,000 $ 523,252 Aviation - - - - Other 5,508 52,286 129,690 207,661 Total revenues $ 5,508 $ 170,684 $ 369,690 $ 730,913

Long-Term Debt

Long-Term Debt	6 Months Ended
	Jun. 30, 2019
Debt Disclosure [Abstract]
LONG-TERM DEBT	4. LONG-TERM DEBT Long-term debt consists of the following: June 30, December 31, Marathon Tranche One Loan, due December 31, 2021, interest only quarterly payments, variable interest rate of 10.25% as of June 30, 2019 $ 10,000,000 $ 10,000,000 Marathon Tranche Two Loan, due December 31, 2021, interest only quarterly payments, variable interest rate of 10.25% as of June 30, 2019 5,854,140 - Marathon Credit Agreement unamortized discount and issuance costs (1,427,818 ) (1,687,921 ) Net Marathon Credit Agreement 14,426,322 8,312,079 Less current portion 5,854,140 - Long-term debt $ 8,572,182 $ 8,312,079 On December 31, 2018, the Company entered into a Credit Agreement (the "Credit Agreement"), with Marathon Asset Management, LP, on behalf of certain entities it manages, as lenders (collectively, the "Lenders"). The Credit Agreement provided the Company with a $10 million tranche of term loans (the "Tranche One Loan") which may not be re-borrowed following repayment and (ii) a $25 million tranche of revolving loans which may be re-borrowed following repayment (the "Tranche Two Loans" together with the Tranche One Loan, the "Loans"). The Trance Two Loan has been classified as current debt, because the agreement includes a lock box and cash sweep feature, which requires current presentation of the debt. Second Amendment to Credit Agreement On April 1, 2019, the Company entered into the Second Amendment to the Credit Agreement (the "Marathon Second Amendment") with the Lenders. The Marathon Second Amendment delayed the application of certain financial covenants including: (i) the minimum liquidity, providing that at least $4 million must be maintained at all times on or after April 30, 2019 rather than beginning on March 31, 2019; (ii) the maximum total leverage ratio (ratio of total debt borrowed by the Company and its subsidiaries to EBITDA), providing that the maximum total leverage ratio shall not exceed 4.50:1.00 on the last day of the quarter ending December 31, 2019, rather than beginning with the quarter ending September 30, 2019, which total leverage ratio is adjusted for subsequent quarters as set forth in the Credit Agreement; and (iii) the maximum debt service coverage ratio (ratio of EBITDA (for the four consecutive fiscal quarters most recently ended, subject to certain adjustments set forth in the Credit Agreement) to interest expense and payments for operating leases), providing that the maximum debt service coverage ratio shall not exceed 1.25:1.00 on the last day of the quarter ending December 31, 2019, rather than beginning with the quarter ending September 30, 2019, which debt service coverage ratio is adjusted for subsequent quarters as set forth in the Credit Agreement. Third Amendment to Credit Agreement On April 30, 2019, the Company entered into the Third Amendment to Credit Agreement (the "Marathon Third Amendment"). The Marathon Third Amendment amended the minimum liquidity covenant, providing that at least $4 million must be maintained at all times at or after May 31, 2019 rather than at all times on or after April 30, 2019. Unless the Company fails to maintain minimum liquidity as of the last day of any calendar month, the Company may cure a failure to maintain minimum liquidity by increasing liquidity to $4.0 million within five business days of the occurrence. Purchase Warrants In conjunction with entering into the Credit Agreement, the Company issued each Lender a Common Stock Purchase Warrant to purchase, in the aggregate, 8,053,390 shares of common stock at an exercise price of $1.25 per share exercisable in cash only for a period of three years and then for cash or cashless thereafter (collectively, the "Initial Warrants"). Until the later of the repayment of all obligations owed to the Lenders or two years from the closing date, the Company will be required to issue additional Common Stock Purchase Warrants (the "Additional Warrants") to the Lenders equal to 10%, in the aggregate, of any additional equity issuances, subject to certain exceptions, on substantially the same terms and conditions of the Initial Warrants, except that (i) the applicable expiration date thereof shall be five years from the issuance date of the applicable warrant, (ii) the initial exercise price shall be a price equal to the price per share of common stock used in the relevant issuance multiplied by 110%, and (iii) the holder shall be entitled to exercise the warrant on a cashless exercise at any time the warrant is exercisable. On April 16, 2019, the Company entered into an Amendment No. 1 to Common Stock Purchase Warrants with Marathon Asset Management LP, on behalf of certain entities it manages, as warrant holders (collectively, the "Holders") (collectively, the "Marathon Warrant Amendment"), amending certain terms of the existing warrants issued by the Company in favor of each Holder. Pursuant to the Marathon Warrant Amendment, unless the Company has obtained the approval of its shareholders the number of shares to be issued under warrants held by the Holders shall not exceed 19.99% of the issued and outstanding common stock of the Company as of December 31, 2018. The Marathon Warrant Amendment also provide that the failure to obtain shareholder approval of an increase in the number of authorized shares of common stock of the Company, sufficient to enable the Company to issue common stock upon exercise of the warrants held by each Holder, will constitute an event of default under the existing Credit Agreement. The warrants are required to be marked to market at each balance sheet date with a corresponding charge to interest expense. As of June 30, 2019 and December 31, 2018, the warrant liability was $33,529,599 and $1,822,819, respectively.

Duke Financing Obligation

Duke Financing Obligation	6 Months Ended
	Jun. 30, 2019
Duke Financing Obligation [Abstract]
DUKE FINANCING OBLIGATION	5. DUKE FINANCING OBLIGATION On November 28, 2018, the Company entered into a Sales Agreement with Duke Energy One, Inc (“Duke”) pursuant to which the Company sold Duke 615,000 battery cells (the “615,000 Cells”) in consideration of $1,340,700. The Company will continue to use the cells in the near term for the delivery of trucks to UPS and DHL. Until October 15, 2019, the Company has the right and option to require Duke to sell the 615,000 Cells back to the Company and Duke has the right and option to require the Company to purchase the 615,000 Cells at price equal to the price the 615,000 Cells were sold. On November 28, 2018, in consideration for consenting to the Company selling the 615,000 Cells to Duke, which served as collateral for Arosa for their Loan Agreement, the Company entered into a Limited Consent, Waiver and Release pursuant to which the Company issued Arosa 2,000,000 shares of common stock and restruck the exercise price of warrants previously issued to $1.25 per share. The Duke transactions was accounted for as a financing obligation and as such, the Company has recorded a $1,340,700 liability related to the transaction.

Mandatory Redeemable Series B P

Mandatory Redeemable Series B Preferred Stock	6 Months Ended
	Jun. 30, 2019
Series B Preferred Stock [Abstract]
MANDATORY REDEEMABLE SERIES B PREFERRED STOCK	6. MANDATORY REDEMABLE SERIES B PREFERRED STOCK Commencing May 31, 2019 through June 5, 2019 ("Closing Date"), the Company entered into Subscription Agreements with institutional investors pursuant to which the investors purchased 1,250,000 units consisting of one share of Series B Preferred Stock (the "Preferred Stock"), with a stated value of $20.00 per share (the "Stated Value") and a common stock purchase warrant to purchase 7.41 shares of the common stock (the "Warrants") for an aggregate of purchase price of $25.0 million. The Preferred Stock ranks senior to the Company's common stock with respect to dividend rights and rights upon liquidation, winding-up or dissolution. The Preferred Stock is entitled to annual dividends at a rate equal to 8.0% per annum on the Stated Value of the Preferred Stock. Accrued dividends will be payable quarterly in shares of common stock of the Company based on a fixed share price of $1.62. The Warrants have an exercise price of $1.62 per share, which was in excess of the closing price of $1.60 on May 30, 2019, and are immediately exercisable and will expire seven years from the date of issuance. The Preferred Stock is not convertible and does not hold voting rights. On the fourth anniversary of the Closing Date, the Company is required to redeem all the outstanding shares of the Preferred Stock at the Stated Value, plus accrued and unpaid dividends. At any time prior to such date, the Company subject to the repayment and retirement of the Credit Agreement, may redeem any outstanding shares of Preferred Stock at the Stated Value, plus accrued and unpaid dividends ("Optional Redemption"). Notwithstanding the foregoing, the Company may elect an Optional Redemption prior to the fourth anniversary of the Closing Date so long as it obtains from the lenders to the Credit Agreement their prior written consent to such Optional Redemption. The aggregate number of shares of common stock issued in payment of dividends on the Preferred Stock when added to the number of shares of common stock issued upon exercise of any warrants shall not exceed 19.9% of either (a) the total number of shares of common stock outstanding on the date hereof or (b) the total voting power of the Company's securities outstanding on the date hereof that are entitled to vote on a matter being voted on by holders of the common stock, unless and until the Company obtains stockholder approval permitting such issuances. As the Preferred Stock is mandatorily redeemable, it is presented as a liability on the condensed consolidated balance sheet. All dividends payable on the Preferred Stock are classified as interest expense. The Preferred Stock and Warrants have been determined to be freestanding financial instruments and have been accounted for separately. The Warrants are considered equity instruments and are not required to be recorded as a liability and marked-to-market at each reporting period. On the date of issuance, the value of the Warrants was determined to be $6.7 million, which was determined using the Black-Scholes valuation model. The fair value of the warrants was recorded as an increase to Additional Paid-In Capital and a discount of the Preferred Stock. The discount will be amortized to interest expense through May 2023.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2019
Share-based Payment Arrangement [Abstract]
STOCK-BASED COMPENSATION	7. STOCK-BASED COMPENSATION Options to directors, officers, consultants and employees The Company maintains, as adopted by the board of directors, the 2019 Stock Incentive Plan as well as previous years plans (the “Plans”) providing for the issuance of equity based awards to employees, officers, directors or consultants of the Company. Non-qualified stock options granted under the plans may only be granted with an exercise price equal to the fair market value of the Company’s common stock on the date of grant. Awards under the plans may be either vested or unvested options. In addition to the Plans, the Company has granted, on various dates, stock options to directors, officers, consultants and employees to purchase common stock of the Company. The terms, exercise prices and vesting of these awards vary. The following table summarizes option activity for directors, officers, consultants and employees: Outstanding Stock Options Options Available for Grant Number of Options Outstanding Weighted Weighted Weighted Balance, December 31, 2017 4,145,774 3,851,371 $ 3.11 $ 1.84 43 Granted (340,000 ) 340,000 1.18 0.54 56 Exercised - (52,500 ) 1.24 0.68 - Forfeited - - - - - Expired - (271,250 ) 3.22 1.58 - Balance, December 31, 2018 3,805,774 3,867,621 4.05 $ 1.84 64 Additional Shares Authorized under 2019 Plan 8,000,000 - Granted (2,400,000 ) 2,400,000 0.96 0.53 81 Exercised - (498,552 ) 0.13 1.92 Forfeited 1,375,069 (1,375,069 ) 4.75 1.95 27 Expired - - Balance, June 30, 2019 10,780,843 4,394,000 $ 2.60 $ 1.32 94

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2019
Income Tax Disclosure [Abstract]
INCOME TAXES	8. INCOME TAXES As the Company has not generated taxable income since inception, the cumulative deferred tax assets remain fully reserved, and no provision or liability for federal or state income taxes has been included in the financial statements.

Earnings Per Share

Earnings Per Share	6 Months Ended
	Jun. 30, 2019
Earnings Per Share [Abstract]
EARNINGS PER SHARE	9. EARNINGS PER SHARE Basic loss per share is computed by dividing net loss available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. For all periods presented, due to the Company’s net losses, all of the Company’s common stock equivalents were excluded from the calculation of diluted loss per share because they were anti-dilutive.

Recent Accounting Developments

Recent Accounting Developments	6 Months Ended
	Jun. 30, 2019
Accounting Changes and Error Corrections [Abstract]
RECENT ACCOUNTING DEVELOPMENTS	10. RECENT ACCOUNTING DEVELOPMENTS Accounting Guidance Adopted in 2019 In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires a lessee to recognize in the statement of financial position a liability to make lease payments (“the lease liability”) and a right-of-use asset representing its right to use the underlying asset for the lease term, initially measured at the present value of the lease payments. A lessee shall classify a lease as a finance lease or an operating lease. Amortization of the right-of-use asset shall be on a straight-line basis, unless another basis is more representative of the pattern in which the lessee expects to consume the right-of-use asset’s future economic benefits. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. If a lessee makes this election, it should recognize lease expense for such leases generally on a straight-line basis over the lease term. The amendments in this update were applied using the current period adjustment method, as defined, and were effective on January 1, 2019. The adoption of this standard did not have a material impact on the condensed consolidated financial statements.

Share Holders Equity (Deficit)

Share Holders Equity (Deficit)	6 Months Ended
	Jun. 30, 2019
Equity [Abstract]
SHARE HOLDERS EQUITY (DEFICIT)	11. SHARE HOLDERS EQUITY (DEFICIT) Stock Offerings On June 4, 2018, the Company and holders of all outstanding Warrants to Purchase Common Stock of the Company issued on September 18, 2017 (collectively, the "Warrants") entered into separate, privately-negotiated exchange agreements (the "Exchange Agreements"), pursuant to which the Company issued an aggregate of 1,968,736 shares of the Company's common stock in exchange for the Warrants. In addition, the "Down Round" feature of the Warrants was triggered in the second quarter of 2018, causing the strike price to decrease from $3.80 per share to $2.62 per share. As a result, the Company recorded a deemed dividend of $765,179 which represents the fair value transferred to the Warrant holders from the Down Round being triggered. The deemed dividend was recorded as a reduction of Retained Earnings and increase in Additional Paid-in-Capital and reduced net income available to common shareholders by the same amount. Commencing February 11, 2019, the Company entered into and closed Subscription Agreements with accredited investors (the "February 2019 Accredited Investors") for the purchase of 1,613,683 shares of the Company's common stock for a purchase price of $1,465,056. If, prior to the six month anniversary, the Company issues shares of its common stock for a purchase price per share less than the purchase price paid by the February 2019 Accredited Investors (a "Down Round"), the Company will issue additional shares of common stock (for no additional consideration) such that the effective purchase price per share is equal to the purchase price per share paid in the Down Round. The Down Round provisions were triggered by the May 1, 2019 sale of common stock and an additional 116,496 shares of common stock were issued to the February 2019 Accredited Investors. The issuance of the additional shares is accounted for as a $86,207 deemed dividend. Benjamin Samuels and Gerald Budde, directors of the Company, acquired 841,928 and 26,310 shares of common stock, respectively, as part of this offering at a per share purchase was $0.9501, which was above the closing price the date prior to close. They did not receive the Down Round protection. On May 1, 2019, the Company closed under a registered public offering the sale of 3,957,432 shares of Common Stock for a purchase price of $0.74 per share. The net proceeds to the Company were approximately $2.9 million, after deducting estimated expenses payable by the Company. The Company expects to use the net proceeds from this offering for working capital, general corporate purposes and repayment of debt and other obligations. Warrants In connection with the issuance of debt and preferred stock, the Company has issued warrants to purchase share of Common Stock. The following table summarizes warrant activity for the period: Number of Warrants Weighted Average Exercise Price per Warrant Weighted Average Remaining Exercise Term in Months Balance, December 31, 2018 17,818,844 $ 1.84 52 Granted, Series B Preferred Stock 9,262,500 1.62 48 Granted, Marathon debt 1,840,275 1.40 60 Exercised - Balance, June 30, 2019 28,921,619 $ 2.58 69

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2019
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	12. SUBSEQUENT EVENTS The Company evaluates events and transactions occurring subsequent to the date of the condensed consolidated financial statements for matters requiring recognition or disclosure in the condensed consolidated financial statements. The accompanying condensed consolidated financial statements consider events through the date on which the condensed consolidated financial statements were available to be issued.

Summary of Significant Accoun_2

Summary of Significant Accounting Principles (Policies)	6 Months Ended
	Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of operations and principles of consolidation	Nature of operations and principles of consolidation Workhorse Group Inc. (“Workhorse”, the “Company”, “we”, “us” or “our”) is a technology company focused on providing sustainable and cost-effective solutions to the commercial transportation sector. As an American manufacturer, we design and build high performance battery-electric vehicles and aircraft that make movement of people and goods more efficient and less harmful to the environment. As part of our solution, we also develop cloud-based, real-time telematics performance monitoring systems that enable fleet operators to optimize energy and route efficiency. Although we operate as a single unit through our subsidiaries, we approach our development through two divisions, Automotive and Aviation. We are currently focused on our core competency of bringing the N-GEN electric cargo van to market and fulfilling our existing backlog of orders. We are also exploring other opportunities in monetizing our intellectual property which could include a sale, license or other arrangement of assets that are outside of our core focus. The Company’s wholly owned subsidiaries include Workhorse Technologies Inc., Workhorse Motor Works Inc., Workhorse Properties Inc. and Surefly, Inc On May 3, 2019, the Company filed an amendment to its Articles of Incorporation to increase its authorized shares of common stock from 100,000,000 to 250,000,000.
Basis of presentation	Basis of presentation The financial statements have been prepared on a going concern basis, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. However, the Company has limited revenues and a history of negative working capital and stockholders’ deficits. Our existing capital resources are expected to be sufficient to fund our operations through the end of 2019. Unless and until we are able to generate a sufficient amount of revenue, reduce our costs and/or enter a strategic relationship, we expect to finance future cash needs through public and/or private offerings of equity securities and /or debt financings. If we are not able to obtain additional financing and/or substantially increase revenue from sales, we will be unable to continue as a going concern. These conditions raise substantial doubt about the ability of the Company to continue as a going concern. In view of these matters, continuation as a going concern is dependent upon the continued operations of the Company, which, in turn, is dependent upon the Company’s ability to meet its financial requirements, raise additional capital, meet its future bank covenant requirements, and successfully carry out its future operations. The financial statements do not include any adjustments to the amount and classification of assets and liabilities that may be necessary, should the Company not continue as a going concern. The Company has continued to raise capital. Management believes the proceeds from these offerings, future offerings, and the Company’s anticipated revenue, provides an opportunity to continue as a going concern. If additional funding is required, the Company plans to obtain working capital from either debt or equity financing from the sale of common stock, preferred stock, and/or convertible debentures. Obtaining such working capital is not assured. The Company is currently in a production ramp up mode and placing greater emphasis on manufacturing capability. The Marathon Credit Facility includes financial covenants that require our compliance beginning in the fourth quarter of 2019. We expect to be able to satisfy the covenant requirements either through results of operations or the available Equity Cure in the Credit Agreement. In the opinion of Management, the Unaudited Condensed Consolidated Financial Statements include all adjustments that are necessary for the fair presentation of Workhorse’s financial conditions, results of operations and cash flows for the interim periods presented. Such adjustments are of a normal, recurring nature. Intercompany balances and transactions are eliminated in consolidation. The results of operations and cash flows for the interim periods presented may not necessarily be indicative of full-year results. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto of Workhorse contained in its Annual Report on Form 10-K The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates. Certain reclassifications were made to the prior year financial statements to conform to the current year presentation. These reclassifications had no effect on previously reported results of operation or stockholders’ equity (deficit).

Inventory (Tables)

Inventory (Tables)	6 Months Ended
	Jun. 30, 2019
Inventory Disclosure [Abstract]
Schedule of inventory	2019 2018 Raw materials $ 4,285,830 $ 4,319,637 Work in process 422,176 702,079 Finished goods - - 4,708,006 5,021,716 Less: Inventory reserve 2,510,323 2,488,100 $ 2,197,683 $ 2,533,616

Revenue (Tables)

Revenue (Tables)	6 Months Ended
	Jun. 30, 2019
Revenue Recognition and Deferred Revenue [Abstract]
Schedule of disaggregation of revenue	Three Months Ended Six Months Ended 2019 2018 2019 2018 Automotive $ - $ 118,398 $ 240,000 $ 523,252 Aviation - - - - Other 5,508 52,286 129,690 207,661 Total revenues $ 5,508 $ 170,684 $ 369,690 $ 730,913

Long-Term Debt (Tables)

Long-Term Debt (Tables)	6 Months Ended
	Jun. 30, 2019
Debt Disclosure [Abstract]
Schedule of long-term debt	June 30, December 31, Marathon Tranche One Loan, due December 31, 2021, interest only quarterly payments, variable interest rate of 10.25% as of June 30, 2019 $ 10,000,000 $ 10,000,000 Marathon Tranche Two Loan, due December 31, 2021, interest only quarterly payments, variable interest rate of 10.25% as of June 30, 2019 5,854,140 - Marathon Credit Agreement unamortized discount and issuance costs (1,427,818 ) (1,687,921 ) Net Marathon Credit Agreement 14,426,322 8,312,079 Less current portion 5,854,140 - Long-term debt $ 8,572,182 $ 8,312,079

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2019
Share-based Payment Arrangement [Abstract]
Schedule of option activity	Outstanding Stock Options Options Available for Grant Number of Options Outstanding Weighted Weighted Weighted Balance, December 31, 2017 4,145,774 3,851,371 $ 3.11 $ 1.84 43 Granted (340,000 ) 340,000 1.18 0.54 56 Exercised - (52,500 ) 1.24 0.68 - Forfeited - - - - - Expired - (271,250 ) 3.22 1.58 - Balance, December 31, 2018 3,805,774 3,867,621 4.05 $ 1.84 64 Additional Shares Authorized under 2019 Plan 8,000,000 - Granted (2,400,000 ) 2,400,000 0.96 0.53 81 Exercised - (498,552 ) 0.13 1.92 Forfeited 1,375,069 (1,375,069 ) 4.75 1.95 27 Expired - - Balance, June 30, 2019 10,780,843 4,394,000 $ 2.60 $ 1.32 94

Share Holders Equity (Deficit)

Share Holders Equity (Deficit) (Tables)	6 Months Ended
	Jun. 30, 2019
Equity [Abstract]
Schedule of warrant activity	Number of Warrants Weighted Average Exercise Price per Warrant Weighted Average Remaining Exercise Term in Months Balance, December 31, 2018 17,818,844 $ 1.84 52 Granted, Series B Preferred Stock 9,262,500 1.62 48 Granted, Marathon debt 1,840,275 1.40 60 Exercised - Balance, June 30, 2019 28,921,619 $ 2.58 69

Summary of Significant Accoun_3

Summary of Significant Accounting Principles (Details) - shares	Jun. 30, 2019	May 03, 2019	Dec. 31, 2018
Number of authorized shares of common stock	250,000,000		250,000,000
Minimum [Member]
Number of authorized shares of common stock		100,000,000
Maximum [Member]
Number of authorized shares of common stock		250,000,000

Inventory (Details)

Inventory (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Components of inventories
Raw materials	$ 4,285,830	$ 4,319,637
Work in process	422,176	702,079
Finished goods
Inventory Gross	4,708,006	5,021,716
Less: Inventory reserve	2,510,323	2,488,100
Inventory, Total	$ 2,197,683	$ 2,533,616

Revenue (Details)

Revenue (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Total revenues	$ 5,508	$ 170,684	$ 369,690	$ 730,913
Automotive [Member]
Total revenues		118,398	240,000	523,252
Aviation [Member]
Total revenues
Other [Member]
Total revenues	$ 5,508	$ 52,286	$ 129,690	$ 207,661

Long-Term Debt (Details)

Long-Term Debt (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Less current portion	$ 5,854,140
Long-term debt	8,572,182	8,312,079
Marathon Tranche Loan [Member]
Debt Instrument [Line Items]
Marathon Tranche One Loan, due December 31, 2021, interest only quarterly payments, variable interest rate of 10.25% as of June 30, 2019	10,000,000	10,000,000
Marathon Tranche Two Loan, due December 31, 2021, interest only quarterly payments, variable interest rate of 10.25% as of June 30, 2019	5,854,140
Marathon Credit Agreement unamortized discount and issuance costs	(1,427,818)	(1,687,921)
Net Marathon Credit Agreement	$ 14,426,322	$ 8,312,079

Long-Term Debt (Details Textual

Long-Term Debt (Details Textual) - USD ($)	1 Months Ended		6 Months Ended		12 Months Ended
	Apr. 30, 2019	Apr. 02, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Debt Instrument [Line Items]
Amortization expense			$ 260,103
Warrant liability			33,529,599		$ 1,822,819
Value of warrants			$ 31,706,780
Class of Warrant Holder Percentage					19.99%
Credit Agreement [Member]
Debt Instrument [Line Items]
Warrants to purchase of common stock shares			8,053,390
Warrants exercise price			$ 1.25
Warrants to purchase common stock, description			The Company will be required to issue additional Common Stock Purchase Warrants (the "Additional Warrants") to the Lenders equal to 10%, in the aggregate, of any additional equity issuances, subject to certain exceptions, on substantially the same terms and conditions of the Initial Warrants, except that (i) the applicable expiration date thereof shall be five years from the issuance date of the applicable warrant, (ii) the initial exercise price shall be a price equal to the price per share of common stock used in the relevant issuance multiplied by 110%, and (iii) the holder shall be entitled to exercise the warrant on a cashless exercise at any time the warrant is exercisable.
Credit agreement, description		(i) the minimum liquidity, providing that at least $4 million must be maintained at all times on or after April 30, 2019 rather than beginning on March 31, 2019; (ii) the maximum total leverage ratio (ratio of total debt borrowed by the Company and its subsidiaries to EBITDA), providing that the maximum total leverage ratio shall not exceed 4.50:1.00 on the last day of the quarter ending December 31, 2019, rather than beginning with the quarter ending September 30, 2019, which total leverage ratio is adjusted for subsequent quarters as set forth in the Credit Agreement; and (iii) the maximum debt service coverage ratio (ratio of EBITDA (for the four consecutive fiscal quarters most recently ended, subject to certain adjustments set forth in the Credit Agreement) to interest expense and payments for operating leases), providing that the maximum debt service coverage ratio shall not exceed 1.25:1.00 on the last day of the quarter ending December 31, 2019, rather than beginning with the quarter ending September 30, 2019, which debt service coverage ratio is adjusted for subsequent quarters as set forth in the Credit Agreement.			The Company entered into a Credit Agreement (the “Credit Agreement”), with Marathon Asset Management, LP, on behalf of certain entities it manages, as lenders (collectively, the “Lenders”). The Credit Agreement provided the Company with a $10 million tranche of term loans (the “Tranche One Loan”) which may not be re-borrowed following repayment and (ii) a $25 million tranche of revolving loans which may be re-borrowed following repayment (the “Tranche Two Loans” together with the Tranche One Loan, the “Loans”).
Amendment to credit agreement, description	The Company entered into the Third Amendment to Credit Agreement (the "Marathon Third Amendment"). The Marathon Third Amendment amended the minimum liquidity covenant, providing that at least $4 million must be maintained at all times at or after May 31, 2019 rather than at all times on or after April 30, 2019. Unless the Company fails to maintain minimum liquidity as of the last day of any calendar month, the Company may cure a failure to maintain minimum liquidity by increasing liquidity to $4.0 million within five business days of the occurrence.

Duke Financing Obligation (Deta

Duke Financing Obligation (Details)	11 Months Ended
	Nov. 28, 2018USD ($)$ / sharesshares
Sales Agreement [Member]
Duke Financing Obligation (Textual)
Sales of battery cells units	$ 615,000
Sales consideration	$ 1,340,700
Sales description	Until October 15, 2019, the Company has the right and option to require Duke to sell the 615,000 Cells back to the Company and Duke has the right and option to require the Company to purchase the 615,000 Cells at price equal to the price the 615,000 Cells were sold.
Arosa [Member]
Duke Financing Obligation (Textual)
Stock warrants exercised | shares	2,000,000
Exercise price | $ / shares	$ 1.25
Duke financing obligation	$ 1,340,700

Mandatory Redeemable Series B_2

Mandatory Redeemable Series B Preferred Stock (Details) - USD ($)	6 Months Ended
	Jun. 30, 2019	Jun. 05, 2019
Dividends description	The Preferred Stock is entitled to annual dividends at a rate equal to 8.0% per annum on the Stated Value of the Preferred Stock. Accrued dividends will be payable quarterly in shares of common stock of the Company based on a fixed share price of $1.62. The Warrants have an exercise price of $1.62 per share, which was in excess of the closing price of $1.60 on May 30, 2019, and are immediately exercisable and will expire seven years from the date of issuance.
Stock issued exercise of warrants percentage	19.90%
Value of warrants issued with preferred stock	$ 6,700,000
Mandatory Redeemable Series B Preferred Stock [Member]
Investors purchased		1,250,000
Preferred Stock stated value		$ 20
Warrant to purchase per share		$ 7.41
Total proceeds received on the preferred stock		$ 25,000,000

Stock Based Compensation (Detai

Stock Based Compensation (Details) - Stock Options [Member] - Directors, officers, consultants and employees [Member] - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Options Available for Grant
Options Available for Grant, Outstanding, Beginning Balance	3,805,774	4,145,774
Options Available for Grant, Additional Shares Authorized under 2019 Plan	8,000,000
Options Available for Grant, Granted	(2,400,000)	(340,000)
Options Available for Grant, Exercised
Options Available for Grant, Forfeited	1,375,069
Options Available for Grant, Expired
Options Available for Grant, Outstanding, Ending Balance	10,780,843	3,805,774
Number of Options
Number of Options Outstanding, Beginning Balance	3,867,621	3,851,371
Number of Options Outstanding, Granted	2,400,000	340,000
Number of Options Outstanding, Exercised	(498,552)	(52,500)
Number of Options Outstanding, Forfeited	(1,375,069)
Number of Options Outstanding, Expired		(271,250)
Number of Options Outstanding, Ending Balance	4,394,000	3,867,621
Weighted Average Exercise Price per Option
Weighted Average Exercise Price per Option, Outstanding, Beginning Balance	$ 4.05	$ 3.11
Weighted Average Exercise Price per Option, Granted	0.96	1.18
Weighted Average Exercise Price per Option, Exercised	0.13	1.24
Weighted Average Exercise Price per Option, Forfeited	4.75
Weighted Average Exercise Price per Option, Expired		3.22
Weighted Average Exercise Price per Option, Outstanding, Ending Balance	2.60	4.05
Weighted Average Grant Date Fair Value per Option
Weighted Average Grant Date Fair Value per Option, Outstanding, Beginning Balance	1.84	1.84
Weighted Average Grant Date Fair Value per Option, Granted	0.53	0.54
Weighted Average Grant Date Fair Value per Option, Exercised	1.92	0.68
Weighted Average Grant Date Fair Value per Option, Forfeited	1.95
Weighted Average Grant Date Fair Value per Option, Expired		1.58
Weighted Average Grant Date Fair Value per Option, Outstanding, Ending Balance	$ 1.32	$ 1.84
Weighted Average Remaining Exercise Term in Months
Weighted Average Remaining Exercise Term in Months, Outstanding, Beginning Balance	64 months	43 months
Weighted Average Remaining Exercise Term in Months, Granted	81 months	56 months
Weighted Average Remaining Exercise Term in Months, Forfeited	27 months
Weighted Average Remaining Exercise Term in Months, Outstanding, Ending Balance	94 months	64 months

Share Holders Equity (Deficit_2

Share Holders Equity (Deficit) (Details) - Warrants [Member]	6 Months Ended
	Jun. 30, 2019$ / sharesshares
Number of Warrants, Beginning Balance	17,818,844
Number of Warrants, Granted, Series B Preferred Stock	9,262,500
Number of Warrants, Granted, Marathon debt	1,840,275
Number of Warrants, Exercised
Number of Warrants, Ending Balance	28,921,619
Weighted Average Exercise Price per Warrant, Beginning Balance | $ / shares	$ 1.84
Weighted Average Exercise Price per Warrant, Granted, Series B Preferred Stock | $ / shares	1.62
Weighted Average Exercise Price per Warrant, Granted, Marathon debt | $ / shares	1.40
Weighted Average Exercise Price per Warrant, Ending Balance | $ / shares	$ 2.58
Weighted Average Remaining Exercise Term in Months, Beginning Balance	52 months
Weighted Average Remaining Exercise Term in Months, Granted, Series B Preferred Stock	48 months
Weighted Average Remaining Exercise Term in Months, Granted, Marathon debt	60 months
Weighted Average Remaining Exercise Term in Months, Ending Balance	69 months

Share Holders Equity (Deficit_3

Share Holders Equity (Deficit) (Details Textual) - USD ($)	May 01, 2019	Feb. 11, 2019	Jun. 04, 2018	Jun. 30, 2019	Jun. 30, 2018
Share Holders Equity (Deficit) (Textual)
Deemed dividend			$ 765,179
Aggregate shares common stock			1,968,736
Subscription Agreements [Member]
Share Holders Equity (Deficit) (Textual)
Shares of common stock public offering	3,957,432
Public offering price per share	$ 0.74
Purchase of additional common stock, shares	116,496
Common stock purchase price		$ 1,465,056
Common stock purchase price, Shares		1,613,683
Net of proceeds from issuance of initial public offering	$ 2,900,000
Underwriting commitments, description				The Company, acquired 841,928 and 26,310 shares of common stock, respectively, as part of this offering at a per share purchase was $0.9501, which was above the closing price the date prior to close. They did not receive the Down Round protection.
Deemed dividend	$ 86,207
Minimum [Member]
Share Holders Equity (Deficit) (Textual)
Strike price of warrants					$ 2.62
Maximum [Member]
Share Holders Equity (Deficit) (Textual)
Strike price of warrants					$ 3.80