Workhorse (WKHS) 10-Q 8 Nov 22 2022 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Sep. 30, 2022	Oct. 31, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
Document Transition Report	false
Entity File Number	001-37673
Entity Registrant Name	WORKHORSE GROUP INC.
Entity Incorporation, State or Country Code	NV
Entity Tax Identification Number	26-1394771
Entity Address, Address Line One	3600 Park 42 Drive
Entity Address, Address Line Two	Suite 160E
Entity Address, City or Town	Sharonville
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	45241
City Area Code	888
Local Phone Number	646-5205
Title of 12(b) Security	Common Stock, $0.001 par value per share
Trading Symbol	WKHS
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		164,101,244
Entity Central Index Key	0001425287
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 120,117,862	$ 201,647,394
Accounts receivable, less allowance for credit losses of zero as of September 30, 2022 and December 31, 2021	1,548,196	149,776
Other receivable	15,000,000	0
Inventory, net	11,567,607	10,067,367
Prepaid expenses and other current assets	14,946,935	4,357,829
Total current assets	163,180,600	216,222,366
Property, plant and equipment, net	17,047,641	7,897,807
Investment in Tropos	10,000,000	0
Lease right-of-use assets	11,476,927	1,538,852
Other assets	176,310	2,479,865
Total Assets	201,881,478	228,138,890
Current liabilities:
Accounts payable	7,728,111	7,849,607
Accrued and other current liabilities	44,825,969	14,752,827
Accrued commissions	3,375,000	0
Warranty liability	3,339,484	4,583,916
Current portion of lease liabilities	1,105,016	363,714
Total current liabilities	60,373,580	27,550,064
Deferred revenue, long-term	1,505,000	0
Lease liabilities, long-term	8,736,715	1,191,053
Convertible notes, at fair value	0	24,705,000
Total Liabilities	70,615,295	53,446,117
Commitments and contingencies
Stockholders’ Equity:
Series A preferred stock, par value $0.001 per share, 75,000,000 shares authorized, zero shares issued and outstanding as of September 30, 2022 and December 31, 2021	0	0
Common stock, par value $0.001 per share, 250,000,000 shares authorized, 160,448,077 shares issued and outstanding as of September 30, 2022 and 151,915,455 shares issued and outstanding as of December 31, 2021	160,448	151,916
Additional paid-in capital	720,100,887	686,318,201
Accumulated deficit	(588,995,152)	(510,374,844)
Accumulated other comprehensive loss	0	(1,402,500)
Total stockholders’ equity	131,266,183	174,692,773
Total Liabilities and Stockholders’ Equity	$ 201,881,478	$ 228,138,890

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 0	$ 0
Preferred stock, par value (in usd per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	75,000,000	75,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in usd per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	250,000,000	250,000,000
Common stock, shares issued (in shares)	160,448,077	151,915,455
Common stock, shares outstanding (in shares)	160,448,077	151,915,455

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Statement [Abstract]
Sales, net of returns and allowances	$ 1,548,798	$ (576,602)	$ 1,575,652	$ 1,147,334
Cost of sales	9,515,547	11,549,187	16,459,102	32,570,616
Gross loss	(7,966,749)	(12,125,789)	(14,883,450)	(31,423,282)
Operating expenses
Selling, general and administrative	34,753,017	10,579,586	59,693,419	24,470,953
Research and development	6,126,951	2,801,394	15,165,946	8,788,969
Total operating expenses	40,879,968	13,380,980	74,859,365	33,259,922
Loss from operations	(48,846,717)	(25,506,769)	(89,742,815)	(64,683,204)
Interest income (expense), net	27,716	18,599,130	(2,290,993)	23,040,886
Other income (loss)	13,413,500	(77,127,266)	13,413,500	(225,432,884)
Loss before benefit for income taxes	(35,405,501)	(84,034,905)	(78,620,308)	(267,075,202)
Benefit for income taxes	0	2,919,491	0	21,833,930
Net loss	$ (35,405,501)	$ (81,115,414)	$ (78,620,308)	$ (245,241,272)
Net loss per share of common stock
Basic (in usd per share)	$ (0.22)	$ (0.66)	$ (0.50)	$ (1.99)
Diluted (in usd per share)	$ (0.22)	$ (0.63)	$ (0.50)	$ (1.90)
Weighted average shares used in computing net loss per share of common stock
Basic (in shares)	160,213,944	123,584,023	157,117,380	123,186,350
Diluted (in shares)	160,213,944	129,251,351	157,117,380	128,853,678

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Loss - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Statement of Comprehensive Income [Abstract]
Net loss	$ (35,405,501)	$ (81,115,414)	$ (78,620,308)	$ (245,241,272)
Other comprehensive loss:
Change in fair value of convertible notes attributable to credit spread	0	0	0	(10,200,000)
Comprehensive loss	$ (35,405,501)	$ (81,115,414)	$ (78,620,308)	$ (255,441,272)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders’ Equity - USD ($)		Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Loss
Common stock, beginning balance (in shares) at Dec. 31, 2020			121,922,532
Beginning balance at Dec. 31, 2020		$ 395,204,334	$ 121,923	$ 504,112,442	$ (109,030,031)	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock options and warrants exercised, and vesting of restricted shares (in shares)	[1]		1,700,343
Stock options and warrants exercised, and vesting of restricted shares	[1]	(2,083,046)	$ 1,700	(2,084,746)
Stock-based compensation		3,253,546		3,253,546
Net loss		(245,241,272)			(245,241,272)
Other comprehensive loss		(10,200,000)				(10,200,000)
Common stock, ending balance (in shares) at Sep. 30, 2021			123,622,875
Ending balance at Sep. 30, 2021		140,933,562	$ 123,623	505,281,242	(354,271,303)	(10,200,000)
Common stock, beginning balance (in shares) at Jun. 30, 2021			123,414,045
Beginning balance at Jun. 30, 2021		222,841,401	$ 123,414	506,073,876	(273,155,889)	(10,200,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock options and warrants exercised, and vesting of restricted shares (in shares)	[1]		208,830
Stock options and warrants exercised, and vesting of restricted shares	[1]	(2,013,630)	$ 209	(2,013,839)
Stock-based compensation		1,221,205		1,221,205
Net loss		(81,115,414)			(81,115,414)
Other comprehensive loss		0				0
Common stock, ending balance (in shares) at Sep. 30, 2021			123,622,875
Ending balance at Sep. 30, 2021		$ 140,933,562	$ 123,623	505,281,242	(354,271,303)	(10,200,000)
Common stock, beginning balance (in shares) at Dec. 31, 2021		151,915,455	151,915,455
Beginning balance at Dec. 31, 2021		$ 174,692,773	$ 151,916	686,318,201	(510,374,844)	(1,402,500)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued in exchange of convertible notes (in shares)			7,833,666
Common stock issued in exchange of convertible notes		25,381,078	$ 7,834	25,373,244
Common stock issued through At-The-Market offering (in shares)			98,986
Common stock issued through At-The-Market offering		248,695	$ 99	248,596
Stock options and warrants exercised, and vesting of restricted shares (in shares)	[2]		599,970
Stock options and warrants exercised, and vesting of restricted shares	[2]	(466,532)	$ 599	(467,131)
Stock-based compensation		8,627,977		8,627,977
Net loss		(78,620,308)			(78,620,308)
Other comprehensive loss		$ 1,402,500				1,402,500
Common stock, ending balance (in shares) at Sep. 30, 2022		160,448,077	160,448,077
Ending balance at Sep. 30, 2022		$ 131,266,183	$ 160,448	720,100,887	(588,995,152)	0
Common stock, beginning balance (in shares) at Jun. 30, 2022			160,058,512
Beginning balance at Jun. 30, 2022		163,828,453	$ 160,059	717,258,045	(553,589,651)	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock options and warrants exercised, and vesting of restricted shares (in shares)	[2]		389,565
Stock options and warrants exercised, and vesting of restricted shares	[2]	(142,044)	$ 389	(142,433)
Stock-based compensation		2,985,275		2,985,275
Net loss		$ (35,405,501)			(35,405,501)
Common stock, ending balance (in shares) at Sep. 30, 2022		160,448,077	160,448,077
Ending balance at Sep. 30, 2022		$ 131,266,183	$ 160,448	$ 720,100,887	$ (588,995,152)	$ 0
[1]Net of tax payments related to shares withheld for option exercises and vested stock.[2]Net of tax payments related to shares withheld for option exercises and vested stock.

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($)	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Cash flows from operating activities:
Net loss	$ (78,620,308)	$ (245,241,272)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	1,378,365	1,342,348
Change in fair value and loss on exchange of convertible notes	1,769,857	(27,600,000)
Change in fair value of Investment in LMC	0	225,429,997
Stock-based compensation	8,627,977	3,253,546
Change in inventory and prepaid purchases reserve	5,196,774	(10,919,259)
Forgiveness of PPP Term Note	0	(1,411,000)
Deferred taxes	0	(21,833,930)
Non-cash lease expense	855,119	0
Other non-cash items	175,750	0
Effects of changes in operating assets and liabilities:
Accounts receivable	(16,398,420)	1,035,715
Inventory	(6,969,095)	(35,118,442)
Prepaid expenses and other current assets	(10,317,025)	(2,220,967)
Other assets	(84,401)	0
Accounts payable, accrued liabilities and other	29,650,491	3,743,729
Warranty liability	(1,244,432)	(508,002)
Net cash used in operating activities	(65,979,348)	(110,047,537)
Cash flows from investing activities:
Capital expenditures	(9,708,699)	(3,803,807)
Investment in Tropos	(5,000,000)	0
Net cash used in investing activities	(14,708,699)	(3,803,807)
Cash flows from financing activities:
Proceeds from sale of Investment in LMC	0	105,789,310
Commissions and fees on sale of Investment in LMC	0	(662,563)
Proceeds from issuance of common stock	248,695	0
Payments on finance lease	(623,648)	0
Exercise of warrants and options and restricted share award activity	(466,532)	(2,083,046)
Net cash provided by (used in) financing activities	(841,485)	103,043,701
Change in cash and cash equivalents	(81,529,532)	(10,807,643)
Cash, cash equivalents and restricted cash, beginning of the period	201,647,394	241,229,067
Cash and cash equivalents, end of the period	120,117,862	230,421,424
Supplemental disclosure of non-cash activities
Investment in Tropos in exchange for non-cash deferred revenue	5,000,000	0
Leased assets obtained in exchange for finance lease liabilities	6,022,694	0
Leased assets obtained in exchange for operating lease liabilities	$ 5,024,284	$ 0

Summary of Business and Signifi

Summary of Business and Significant Accounting Principles	9 Months Ended
	Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Summary of Business and Significant Accounting Principles	SUMMARY OF BUSINESS AND SIGNIFICANT ACCOUNTING PRINCIPLES Overview We are an American technology company with a vision to pioneer the transition to zero-emission commercial vehicles. Our primary focus is to provide sustainable and cost-effective solutions to the commercial transportation sector. We design and manufacture all-electric delivery trucks and drone systems, including the technology that optimizes the way these vehicles operate. We are focused on our core competency of bringing our electric delivery vehicle platforms to market. Principles of Consolidation The accompanying condensed consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) and reflect our accounts and operations and those of our wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated upon consolidation. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, costs and expenses and related disclosures in the accompanying notes. In the opinion of our management, the Unaudited Condensed Consolidated Financial Statements include all adjustments that are necessary for the fair presentation of Workhorse’s financial condition, results of operations and cash flows for the interim periods presented. Such adjustments are of a normal, recurring nature. The results of operations and cash flows for the interim periods presented may not necessarily be indicative of full-year results. Reference should be made to the financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2021.

Inventory, Net

Inventory, Net	9 Months Ended
	Sep. 30, 2022
Inventory Disclosure [Abstract]
Inventory, Net	INVENTORY, NET Inventory, net consisted of the following: September 30, 2022 December 31, 2021 Raw materials $ 33,514,473 $ 66,238,615 Work in process 25,129,247 20,826,644 Finished goods 100,631 — 58,744,351 87,065,259 Less: inventory reserves (47,176,744) (76,997,892) Inventory, net $ 11,567,607 $ 10,067,367 We reserve inventory for any excess or obsolete inventories or when we believe the net realizable value of inventories is less than the carrying value. As of September 30, 2022 and December 31, 2021, the Company recorded inventory reserves of $47.2 million and $77.0 million, respectively. The $29.8 million decrease in inventory reserves as compared to December 31, 2021 is primarily driven by the Company’s efforts to dispose of inventory that is not expected to be used in future production. During 2021, the Company significantly increased its inventory reserves due to its decision to produce the C1000 vehicle platform at low-volume and transition to a new all-electric delivery truck platform in the future. This decision was based on results of extensive testing performed on the C1000 vehicles in early 2022.

Contract Manufacturing Services

Contract Manufacturing Services and Investment in Tropos	9 Months Ended
	Sep. 30, 2022
Related Party Transactions [Abstract]
Contract Manufacturing Services and Investment in Tropos	CONTRACT MANUFACTURING SERVICES AND INVESTMENT IN TROPOS The Company has a minority ownership in Tropos Technologies, Inc. (“Tropos”) with a value of $10.0 million as of September 30, 2022. The investment was obtained pursuant to the transaction with Tropos as described below. On August 8, 2022, the Company entered into a three-year Assembly Services Agreement (the “Assembly Agreement”) with Tropos. Under the Assembly Agreement, the Company will provide services required to assemble a minimum annual quantity of 2,000 vehicles in 2023, 2,000 vehicles in 2024, and 250 vehicles in 2025 for a total of 4,250 vehicles during the term of the agreement at our Union City, Indiana manufacturing facility. In exchange for the assembly services, the Company will receive a service fee from Tropos. On August 23, 2022, the Company entered into a Preferred Stock Purchase Agreement (the “Stock Purchase Agreement”) with Tropos. Under the Stock Purchase Agreement, the Company received 605,811 shares of Series B Preferred Stock in Tropos with an option to purchase an additional 424,068 shares of Series B Preferred Stock for an exercise price of $16.51 per share in exchange for a cash payment of $5.0 million, and a $5.0 million contribution of non-cash consideration representing a deposit from Tropos for future assembly services. See Note 5, Revenue , of the Condensed Consolidated Financial Statements for treatment of the $5.0 million of non-cash consideration received as of September 30, 2022.

Contract Manufacturing Servic_2

Contract Manufacturing Services and Investment in Tropos	9 Months Ended
	Sep. 30, 2022
Related Party Transactions [Abstract]
Contract Manufacturing Services and Investment in Tropos	CONTRACT MANUFACTURING SERVICES AND INVESTMENT IN TROPOS The Company has a minority ownership in Tropos Technologies, Inc. (“Tropos”) with a value of $10.0 million as of September 30, 2022. The investment was obtained pursuant to the transaction with Tropos as described below. On August 8, 2022, the Company entered into a three-year Assembly Services Agreement (the “Assembly Agreement”) with Tropos. Under the Assembly Agreement, the Company will provide services required to assemble a minimum annual quantity of 2,000 vehicles in 2023, 2,000 vehicles in 2024, and 250 vehicles in 2025 for a total of 4,250 vehicles during the term of the agreement at our Union City, Indiana manufacturing facility. In exchange for the assembly services, the Company will receive a service fee from Tropos. On August 23, 2022, the Company entered into a Preferred Stock Purchase Agreement (the “Stock Purchase Agreement”) with Tropos. Under the Stock Purchase Agreement, the Company received 605,811 shares of Series B Preferred Stock in Tropos with an option to purchase an additional 424,068 shares of Series B Preferred Stock for an exercise price of $16.51 per share in exchange for a cash payment of $5.0 million, and a $5.0 million contribution of non-cash consideration representing a deposit from Tropos for future assembly services. See Note 5, Revenue , of the Condensed Consolidated Financial Statements for treatment of the $5.0 million of non-cash consideration received as of September 30, 2022.

Contract Manufacturing Servic_3

Contract Manufacturing Services and Investment in Tropos	9 Months Ended
	Sep. 30, 2022
Related Party Transactions [Abstract]
Contract Manufacturing Services and Investment in Tropos	CONTRACT MANUFACTURING SERVICES AND INVESTMENT IN TROPOS The Company has a minority ownership in Tropos Technologies, Inc. (“Tropos”) with a value of $10.0 million as of September 30, 2022. The investment was obtained pursuant to the transaction with Tropos as described below. On August 8, 2022, the Company entered into a three-year Assembly Services Agreement (the “Assembly Agreement”) with Tropos. Under the Assembly Agreement, the Company will provide services required to assemble a minimum annual quantity of 2,000 vehicles in 2023, 2,000 vehicles in 2024, and 250 vehicles in 2025 for a total of 4,250 vehicles during the term of the agreement at our Union City, Indiana manufacturing facility. In exchange for the assembly services, the Company will receive a service fee from Tropos. On August 23, 2022, the Company entered into a Preferred Stock Purchase Agreement (the “Stock Purchase Agreement”) with Tropos. Under the Stock Purchase Agreement, the Company received 605,811 shares of Series B Preferred Stock in Tropos with an option to purchase an additional 424,068 shares of Series B Preferred Stock for an exercise price of $16.51 per share in exchange for a cash payment of $5.0 million, and a $5.0 million contribution of non-cash consideration representing a deposit from Tropos for future assembly services. See Note 5, Revenue , of the Condensed Consolidated Financial Statements for treatment of the $5.0 million of non-cash consideration received as of September 30, 2022.

Prepaid Expenses and Other Curr

Prepaid Expenses and Other Current Assets	9 Months Ended
	Sep. 30, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid Expenses and Other Current Assets	PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consisted of the following: September 30, 2022 December 31, 2021 Prepaid purchases (1) $ 35,150,883 $ 24,101,695 Less: prepaid purchases reserve (2) (22,020,805) (23,912,025) Prepaid purchases, net 13,130,078 189,670 Prepaid insurance 1,203,158 2,205,608 Right of return asset — 1,620,000 Other 613,699 342,551 Prepaid expenses and other current assets $ 14,946,935 $ 4,357,829 (1) The Company’s prepaid purchases consists primarily of deposits made to our suppliers for non-recurring engineering costs, capital expenditures, and production parts. The increase in prepaid purchases as compared to December 31, 2021 is primarily due to deposits on supplier orders related to the Company’s W4CC and W750 vehicle platform.

Revenue

Revenue	9 Months Ended
	Sep. 30, 2022
Revenue from Contract with Customer [Abstract]
Revenue	REVENUE Revenue Recognition The following table provides a summary of sales activity for the periods indicated: Three Months Ended September 30, Nine Months Ended 2022 2021 2022 2021 Sales, net of returns and allowances $ 1,336,695 $ (605,000) $ 1,336,792 $ 1,032,400 Other sales 212,103 28,398 238,860 114,934 Total sales, net of returns and allowances $ 1,548,798 $ (576,602) $ 1,575,652 $ 1,147,334 Revenue is recognized when obligations under the terms of a contract with our customer are satisfied. Generally, this occurs when we transfer control of our vehicles, parts, or accessories, or provide services. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. For the majority of sales, this occurs when products are shipped from our manufacturing facility. At the time of revenue recognition, we reduce the transaction price and record a sales return and allowance reserve against revenue for estimated variable considerations related to future product returns. Such estimates are based on an analysis of known pending returns and historical experience. We adjust our estimate of revenue at the earlier of when the value of consideration we expect to receive changes or when the consideration becomes fixed. Sales and other taxes we collect concurrent with revenue-producing activities are excluded from revenue. The expected costs associated with our base warranties and field service actions are recognized as expense when the products are sold. We do not have any material significant payment terms as payment is received at or shortly after the point of sale. We have elected to recognize the cost for freight and shipping when control over vehicles, parts, or accessories has transferred to the customer as an expense in Cost of Sales. Deferred revenue is related to any non-refundable amounts that are collected from customers related to our unsatisfied assembly services. Deferred revenue is recognized as revenue as the performance obligation is satisfied. Deferred revenue is equivalent to the total service fee allocated to the assembly service performance obligations that are unsatisfied as of the balance sheet date. Deferred revenue was $4.9 million and zero as of September 30, 2022 and 2021, respectively. Of the total deferred revenue for assembly services, we expect to recognize $3.4 million of revenue in the next 12 months. Accounts Receivable Accounts receivable primarily include amounts related to sales of our products and services rendered. We provide an allowance against accounts receivable for the amount we expect to be uncollectible. We write-off accounts receivable against the allowance when they are deemed uncollectible.

Debt

Debt	9 Months Ended
	Sep. 30, 2022
Debt Disclosure [Abstract]
Debt	DEBT 4.0% Senior Secured Convertible Notes Due 2024 (“2024 Notes”) The fair value of the 2024 Notes as of September 30, 2022 and December 31, 2021 was zero and $24.7 million, respectively. The contractual principal balance of the 2024 Notes as of September 30, 2022 and December 31, 2021 was zero and $27.5 million, respectively. In April 2022, the Company exchanged the remaining $27.5 million in aggregate principal of the 2024 Notes for approximately 7.8 million shares of the Company’s common stock. The number of shares issued was calculated by dividing $29.4 million, which represented 107% of the principal amount of the notes, plus $0.3 million of interest accrued on the notes, by the average of the daily volume weighted average price for the 10 days immediately preceding April 21, 2022. The Company recognized a loss of $1.8 million in the first quarter of 2022, which included a $0.4 million adjustment to the fair value of the convertible notes to the value of the shares issued under the exchange and a $1.4 million adjustment related to the realization of the amount previously recognized in Accumulated Other Comprehensive Loss. The total loss was recorded in Interest Expense for the nine months ended September 30, 2022. Subsequent to the exchange, the Company has no convertible notes outstanding and the indenture and related security agreement under which the 2024 Notes were issued have been terminated. Interest on the 2024 Notes was payable quarterly beginning January 15, 2021 at a rate of 4.0% per annum. The following table summarizes contractual interest expense related to the 2024 Notes for the period indicated: Three Months Ended September 30, Nine Months Ended 2022 2021 2022 2021 Contractual interest expense $ — $ 2,000,000 $ 332,707 $ 5,977,777 See Note 14, Fair Value Measurements , for additional information regarding the fair value measurement of the 2024 Notes. PPP Term Note On April 14, 2020, the Company entered into a Paycheck Protection Program Term Note (“PPP Term Note”) under the Paycheck Protection Program of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). The Company received total proceeds of approximately $1.4 million. In accordance with the requirements of the CARES Act, the Company used the proceeds primarily for payroll costs. Interest accrued on the PPP Term Note at the rate of 1.0% per annum. The Company elected to account for the PPP Term Note as debt and accrued interest over the term of the note. On January 15, 2021, the outstanding principal and interest accrued on the PPP Term Note were fully forgiven. The Company recognized approximately $1.4 million in gain on the forgiveness of the PPP Term Note, which was recorded in Interest Income for the nine months ended September 30, 2021.

Accrued and Other Current Liabi

Accrued and Other Current Liabilities	9 Months Ended
	Sep. 30, 2022
Payables and Accruals [Abstract]
Accrued and Other Current Liabilities	ACCRUED AND OTHER CURRENT LIABILITIES Accrued and other current liabilities consisted of the following: September 30, 2022 December 31, 2021 Accrued commissions $ 750,000 $ 4,000,000 Compensation and related costs 4,367,022 4,030,085 Accrued interest — 232,222 Legal reserve (Note 15) 35,000,000 — Sales returns and allowances — 2,410,000 Other 4,708,947 4,080,520 Total accrued and other current liabilities $ 44,825,969 $ 14,752,827 Warranties We generally offer warranty coverage for our products. We accrue warranty related costs under standard warranty terms and for certain claims outside the contractual obligation period that we choose to pay as accommodations to our customers. Provisions for estimated assurance warranties are recorded at the time of sale and are periodically adjusted to reflect actual experience. The amount of warranty liability accrued reflects management’s best estimate of the expected future cost of honoring Company obligations under its warranty plans. Historically, the cost of fulfilling the Company’s warranty obligations has principally involved replacement parts, towing and transportation costs, labor and travel for any field retrofit campaigns. The Company’s estimates are based on historical experience, the extent of pre-production testing, the number of units involved, and the extent of features/components included in product models. The Company reviews actual warranty claims experience to determine if there are systemic defects that would require a field campaign. Although we believe the estimates and judgments discussed herein are reasonable, actual results could differ and we may be exposed to increases or decreases in our warranty accrual that could be material. Warranty liability activity consisted of the following for the periods indicated: Three Months Ended September 30, Nine Months Ended 2022 2021 2022 2021 Warranty liability, beginning of period $ 3,322,212 $ 4,866,213 $ 4,583,916 $ 5,400,000 Warranty costs incurred (387,584) (379,215) (1,086,542) (1,113,002) Provision for warranty 404,856 405,000 (157,890) 605,000 Warranty liability, end of period $ 3,339,484 $ 4,891,998 $ 3,339,484 $ 4,891,998

Leases

Leases	9 Months Ended
	Sep. 30, 2022
Leases [Abstract]
Leases	LEASES We have entered into various operating and finance lease agreements for offices, manufacturing and warehouse facilities. We determine if an arrangement is a lease, or contains a lease provision, at inception and record the leases in our financial statements upon lease commencement, which is the date when the underlying asset is made available for our use by the lessor. Our leases may include options to extend the lease term for up to 5 years. Some of our leases also include options to terminate the lease prior to the end of the agreed upon lease term. For purposes of calculating lease liabilities, lease terms include options to extend or terminate the lease when it is reasonably certain we will exercise such options. During the second quarter of 2022, we entered into a lease agreement for additional office and warehouse space. We obtained a Letter of Credit (“LOC”) in the amount of $0.5 million to secure the lease, which bears interest at 5.0% per annum. Under the terms of the agreement, the landlord may use the whole or any part of the LOC for the payment of any amount as to which we are in default or to compensate the landlord for certain specified losses or damage. Lease expense for operating leases is recognized on a straight-line basis over the lease term as either cost of sales or operating expenses depending on the nature of the leased asset. Three Months Ended September 30, Nine Months Ended 2022 2021 2022 2021 Short-term lease expense $ 179,704 $ 190,178 $ 603,712 $ 539,961 Operating lease expense 521,566 — 1,284,533 — Total lease expense $ 701,270 $ 190,178 $ 1,888,245 $ 539,961 Lease right-of-use assets consisted of the following: September 30, 2022 December 31, 2021 Operating leases $ 5,604,800 $ 1,538,852 Finance leases 5,872,127 — Total lease right-of-use assets $ 11,476,927 $ 1,538,852 Lease liabilities consisted of the following: September 30, 2022 December 31, 2021 Operating leases $ 6,539,980 $ 1,554,767 Finance leases 3,301,751 — Total lease liabilities 9,841,731 1,554,767 Less: current portion (1,105,016) (363,714) Long-term portion $ 8,736,715 $ 1,191,053
Lessee	LEASES We have entered into various operating and finance lease agreements for offices, manufacturing and warehouse facilities. We determine if an arrangement is a lease, or contains a lease provision, at inception and record the leases in our financial statements upon lease commencement, which is the date when the underlying asset is made available for our use by the lessor. Our leases may include options to extend the lease term for up to 5 years. Some of our leases also include options to terminate the lease prior to the end of the agreed upon lease term. For purposes of calculating lease liabilities, lease terms include options to extend or terminate the lease when it is reasonably certain we will exercise such options. During the second quarter of 2022, we entered into a lease agreement for additional office and warehouse space. We obtained a Letter of Credit (“LOC”) in the amount of $0.5 million to secure the lease, which bears interest at 5.0% per annum. Under the terms of the agreement, the landlord may use the whole or any part of the LOC for the payment of any amount as to which we are in default or to compensate the landlord for certain specified losses or damage. Lease expense for operating leases is recognized on a straight-line basis over the lease term as either cost of sales or operating expenses depending on the nature of the leased asset. Three Months Ended September 30, Nine Months Ended 2022 2021 2022 2021 Short-term lease expense $ 179,704 $ 190,178 $ 603,712 $ 539,961 Operating lease expense 521,566 — 1,284,533 — Total lease expense $ 701,270 $ 190,178 $ 1,888,245 $ 539,961 Lease right-of-use assets consisted of the following: September 30, 2022 December 31, 2021 Operating leases $ 5,604,800 $ 1,538,852 Finance leases 5,872,127 — Total lease right-of-use assets $ 11,476,927 $ 1,538,852 Lease liabilities consisted of the following: September 30, 2022 December 31, 2021 Operating leases $ 6,539,980 $ 1,554,767 Finance leases 3,301,751 — Total lease liabilities 9,841,731 1,554,767 Less: current portion (1,105,016) (363,714) Long-term portion $ 8,736,715 $ 1,191,053

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	STOCK-BASED COMPENSATION The Company maintains, as approved by the board of directors, the 2017 Incentive Stock Plan and the 2019 Incentive Stock Plan (the “Plans”) providing for the issuance of stock-based awards to employees, officers, directors or consultants of the Company. Non-qualified stock options may only be granted with an exercise price equal to the market value of the Company’s common stock on the grant date. Awards under the Plan may be either vested or unvested options, or unvested restricted stock. The Plans have authorized 13.0 million shares for issuance of stock-based awards. As of September 30, 2022 there were approximately 2.0 million shares available for issuance of future stock awards under the Plans. Stock-based compensation expense The following table summarizes stock-based compensation expense for the periods indicated: Three Months Ended September 30, Nine Months Ended 2022 2021 2022 2021 Stock options $ 245,867 $ 181,558 $ 732,830 $ 273,180 Restricted stock awards 2,047,989 1,039,647 5,954,098 2,980,366 Performance-based restricted stock awards 691,419 — 1,941,049 — Total stock-based compensation expense $ 2,985,275 $ 1,221,205 $ 8,627,977 $ 3,253,546 Stock options A summary of stock option activity for the nine months ended September 30, 2022 is as follows: Number of Options Weighted Weighted Balance, December 31, 2021 495,836 $ 6.80 6.5 Exercised (69,710) 1.48 Forfeited (2,500) 22.30 Balance, September 30, 2022 423,626 $ 7.63 6.7 Number of options exercisable at September 30, 2022 218,006 $ 5.48 4.6 As of September 30, 2022, unrecognized compensation expense was $1.9 million for unvested options which is expected to be recognized over the next 1.9 years. Restricted stock awards A summary of restricted stock award activity for the nine months ended September 30, 2022 is as follows: Number of Unvested Shares Weighted Average Grant Date Fair Value per Share Balance, December 31, 2021 1,617,192 $ 9.33 Granted 2,838,164 3.10 Vested (709,607) 6.71 Forfeited (149,833) 6.27 Balance, September 30, 2022 3,595,916 $ 5.06 As of September 30, 2022, unrecognized compensation expense was $15.3 million for unvested restricted stock awards which is expected to be recognized over the next 2.2 years. Performance share units ( “ PSUs ” ) On February 23, 2022, the Company issued 0.9 million PSUs to certain executives. The vesting of the PSUs is conditioned upon achievement of certain performance objectives over a performance period ending December 31, 2024 as defined in each award agreement. Fifty percent of the PSUs vest based upon the Company’s total shareholder return as compared to a group of peer companies (“TSR PSUs”), and fifty percent of the PSUs vest based upon the Company’s performance on certain measures including a cumulative adjusted EBITDA target (“EBITDA PSUs”). Depending on the actual achievement on the performance objectives, the grantee may earn between 0% and 200% of the target PSUs. A summary of the activity for PSU awards with total shareholder return performance objectives for the nine months ended September 30, 2022 is as follows: Number of Unvested Shares Weighted Average Grant Date Fair Value per Share Balance, December 31, 2021 306,197 $ 11.79 Granted 454,832 11.79 Forfeited (22,278) 11.79 Balance, September 30, 2022 738,751 $ 11.79 The grant date fair value of $11.79 per TSR PSU was estimated using a Monte-Carlo simulation model using a volatility assumption of 117% and risk-free interest rate of 0.69%. As of September 30, 2022, unrecognized compensation expense was $6.6 million for unvested TSR PSUs, which is expected to be recognized over the next 2.3 years. A summary of the PSU awards with cumulative adjusted EBITDA targets for the nine months ended September 30, 2022 is as follows: Number of Unvested Shares Balance, December 31, 2021 — Granted 454,822 Forfeited (22,276) Balance, September 30, 2022 432,546

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Income Taxes	INCOME TAXESAs of September 30, 2022 and December 31, 2021, the Company's deferred tax liability was zero. Cumulative deferred tax assets are fully reserved as there is not sufficient evidence to conclude it is more likely than not the deferred tax assets are realizable. No current liability for federal or state income taxes has been included in these Condensed Consolidated Financial Statements due to the loss for the periods.

Earnings (Loss) Per Share

Earnings (Loss) Per Share	9 Months Ended
	Sep. 30, 2022
Earnings Per Share [Abstract]
Earnings (Loss) Per Share	EARNINGS (LOSS) PER SHARE Basic loss per share of common stock is calculated by dividing net loss by the weighted-average shares outstanding for the period. Potentially dilutive shares, which are based on the weighted-average shares of common stock underlying outstanding stock-based awards and warrants using the treasury stock method, and convertible notes using the if-converted method, are included when calculating the diluted net loss per share of common stock when their effect is dilutive. The following table presents the potentially dilutive shares that were excluded from the computation of diluted net loss per share of common stock, because their effect was anti-dilutive: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Stock-based awards and warrants 3,364,289 3,987,285 10,129,870 3,987,285 Convertible notes (1) — — 7,833,666 — (1) Represents shares issued in exchange of convertible notes in April 2022. See Note 6, Debt , for additional information regarding shares issued subsequent to the date of the Condensed Consolidated Financial Statements.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	9 Months Ended
	Sep. 30, 2022
Accounting Changes and Error Corrections [Abstract]
Recent Accounting Pronouncements	RECENT ACCOUNTING PRONOUNCEMENTS Accounting Standards Recently Adopted In August 2020, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity . The ASU simplifies the accounting for certain convertible instruments, amends the guidance on derivative scope exceptions for contracts in an entity’s own equity and requires the use of the if-converted method for calculating diluted earnings per share. The ASU removes separation models for convertible debt with a cash conversion feature. Such convertible instruments will be accounted for as a single liability measured at amortized cost. The Company adopted the ASU as of January 1, 2022. The adoption of this guidance did not have a material impact on the Company's financial condition and results of operations.

Other Transactions

Other Transactions	9 Months Ended
	Sep. 30, 2022
Business Combination and Asset Acquisition [Abstract]
Other Transactions	OTHER TRANSACTIONS On October 31, 2019, the Company and ST Engineering Hackney, Inc. (“Hackney”) entered into an Asset Purchase Agreement to purchase certain assets and assume certain liabilities of Hackney. Upon execution of the agreement, the Company deposited approximately 2.3 million shares of its common stock into an escrow account that were to be released to Hackney if certain conditions were met. The Company believes that such conditions were not met and does not expect to make further payments to Hackney in connection with the Asset Purchase Agreement. Further, the Company expects the shares of its common stock to be released from escrow in 2022.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2022
Fair Value Disclosures [Abstract]
Fair Value Measurements	FAIR VALUE MEASUREMENTS Accounting guidance on fair value measurements for certain financial assets and liabilities requires that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories: Level 1 — Quoted market prices in active markets for identical assets or liabilities. Level 2 — Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3 — Unobservable inputs reflecting the reporting entity’s own assumptions or external inputs from inactive markets. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level of input that is significant to the fair value measurement. Assets and liabilities measured at fair value and fair value measurement level were as follows: September 30, 2022 December 31, 2021 Fair Value Level 1 Level 2 Level 3 Fair Value Level 1 Level 2 Level 3 Liabilities Convertible notes $ — $ — $ — $ — $ 24,705,000 $ — $ — $ 24,705,000 Total liabilities at fair value $ — $ — $ — $ — $ 24,705,000 $ — $ — $ 24,705,000 Convertible Notes The Company's convertible notes were measured at fair value using Level 3 inputs upon issuance and at each reporting date. Considerable judgment was required in interpreting market data to develop the estimates of fair value. Accordingly, the Company’s estimates are not necessarily indicative of the amounts that the Company, or holders of the instruments, could have realized in a current market exchange. Significant assumptions used in the fair value model included estimates of the redemption dates, credit spreads and the market price and volatility of the Company’s common stock. The use of different assumptions and/or estimation methodologies could have had a material effect on the estimated fair values. The Company recognized changes in fair value of the convertible notes related to changes in credit spread, if any, in Other Comprehensive Loss and the remaining changes in fair value in Interest Expense (Income).

Commitment and Contingencies

Commitment and Contingencies	9 Months Ended
	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	COMMITMENTS AND CONTINGENCIES General Matters The Company is party to various negotiations and legal proceedings arising in the normal course of business. The Company provides reserves for these matters when a loss is probable and reasonably estimable. The Company does not disclose a range of potential loss because the likelihood of such a loss is remote. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Company’s financial position, results of operations, cash flows or liquidity. Federal Motor Vehicle Safety Standards (“FMVSS”) Certification and Other Regulatory Matters On September 22, 2021, we announced the Company decided to suspend deliveries of C-1000 vehicles and recall the vehicles we had already delivered to customers. The Company determined additional testing and modifications to existing vehicles are required to bring the C-1000 vehicles into full compliance with FMVSS. The Company further announced that it filed a report with the National Highway Traffic Safety Administration (“NHTSA”) regarding the need for additional testing and vehicle modifications to bring our C-1000 vehicles into full compliance with FMVSS. We indicated our previous statements related to the C-1000’s compliance with NHTSA standards cannot be relied upon and so notified the Securities and Exchange Commission. We also disclosed we identified a number of enhancements to our production process and the design of the C-1000 vehicles to address customer feedback, primarily related to payload capacity. The certification testing was completed in February 2022. Upon completion of this review, the C-1000 platform was determined to be eligible for certification and reintroduction as a limited production vehicle with constrained cargo capacity. In 2022, Workhorse decided to repurchase all of the C-1000 vehicles involved in the recall announced in September 2021 instead of repairing them and so notified NHTSA. Because the Company repurchased all of the C-1000 vehicles involved in the recall, it has no further obligations under the recall. Due to the uncertainties and many variables involved in NHTSA matters, we cannot estimate the ultimate resolution of this matter and whether it will have a material adverse effect on the Company's financial position, results of operations, cash flows or liquidity. We cooperated with NHTSA with respect to the now-completed recall announced in September 2021. However, we cannot assure that NHTSA or other government authorities will not attempt to impose potentially significant fines and penalties in response to the recall. On October 19 and November 1, 2021, the Company received letters from the SEC requesting that it voluntarily provide information relating to (a) the events and trading in its securities leading up to the announcement of the award of a contract by the U.S. Postal Service (the “USPS”) for the manufacture of a postal service vehicle fleet and (b) recognition of revenue, if any, related to purchases of vehicles by certain of the Company’s customers. On November 5, 2021, the Department of Justice (“DOJ”) orally informed the Company that it had a related open investigation covering the Company. The Company has not received any subpoena or other request for documents or other information from the DOJ with respect to this investigation. On May 9, 2022, the Company received a letter from the SEC requesting that it voluntarily provide information relating to certain customer sales and customer complaints. The Company is cooperating with the SEC and DOJ investigations. At this time, the Company cannot predict the ultimate scope, duration, or outcome of these matters. During the second quarter of 2021, the Company became aware of a regulatory compliance issue related to our E-Series vehicles that will require retrofitting of such vehicles. Management continues to work on remediation of this issue and does not expect it to have a material impact on the Company’s financial condition and operations. Due to the uncertainties and many variables involved in regulatory matters, we cannot estimate the ultimate resolution of this issue and actual results may differ from our expectations. Legal Proceedings Securities Litigation The Company, Duane Hughes, Steve Schrader, Robert Willison and Gregory Ackerson are defendants in a putative class action (the “Securities Class Action”) brought in the Central District of California (Case No.2:21-cv-02072) on behalf of purchasers of the Company’s securities from March 10, 2020 through May 10, 2021. The amended complaint in this action, filed by lead plaintiff, Timothy M. Weis, on July 16, 2021, alleges the defendants violated the federal securities laws by intentionally or recklessly making material misrepresentations and/or omissions regarding the Company’s participation in the bidding process to manufacture the new fleet of USPS next generation delivery vehicles, the prospect of the USPS awarding the contract to Workhorse given alleged deficiencies in Workhorse’s proposal, the Company’s manufacturing abilities generally and the Company’s nonbinding “backlog” in its vehicles. Lead plaintiff seeks certification of a class and monetary damages in an indeterminate amount. The Court denied the Company’s motion to dismiss in substantial part, and the Securities Class Action is currently scheduled to begin trial on March 19, 2024. On October 24, 2022, the Company entered into a binding term sheet to resolve this litigation as well as the related Shareholders Derivative Litigation described below. Under the terms of the settlement of the class action and in resolution of all claims, Workhorse will pay $15 million in cash, which will be funded fully by proceeds of available insurance, and $20 million payable in shares of Workhorse stock. The settlement will be subject to final documentation, public notice and approval by the Court, and there can be no assurance that the settlement will be approved on those terms or at all. The Company recorded a $15 million insurance receivable in Other receivable and a $35 million legal reserve in Accrued liabilities and other in the Condensed Consolidated Balance Sheet at September 30, 2022. The Company also recognized a $20 million expense which was recognized in Selling, general and administrative of the Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2022. Shareholder Derivative Litigation A total of eight substantively similar derivative actions were originally filed for breach of fiduciary duty and unjust enrichment against Duane Hughes, Steve Schrader, Stephen Fleming, Robert Willison, Anthony Furey, Gregory Ackerson, H. Benjamin Samuels, Raymond J. Chess, Harry DeMott, Gerald B. Budde, Pamela S. Mader, Michael L. Clark and Jacqueline A. Dedo in state court in Nevada, state court in Ohio, and federal courts in Nevada, Ohio and California (collectively, the "Shareholder Derivative Litigation"). In these actions, the plaintiffs allege the defendants breached their fiduciary duties by allowing or causing the Company to violate the federal securities laws as alleged in the Securities Class Action discussed above and by selling Company stock and receiving other compensation while allegedly in possession of material non-public information about the prospect of the USPS awarding the contract to an electric vehicle manufacturer given electrifying the USPS’s entire fleet allegedly have been impractical and expensive. The plaintiffs seek damages and disgorgement in an indeterminate amount. The three derivative cases filed in the Central District of California were consolidated into a single action on June 21, 2021 (under Case No. 2:21-cv-04202). On April 18, 2022, the plaintiffs filed their consolidated amended complaint in the consolidated action. On June 2, 2022, the defendants filed motions to dismiss, which the Company joined in with respect to the arguments related to the plaintiffs’ lack of standing, as well as a motion to stay the case pending resolution of the Securities Class Action. On October 3, 2022, the Court granted the Defendants’ motion to stay the action pending resolution of the Securities Class Action. On October 2, 2022, the Court granted the Defendants' motion to stay the action pending resolution of the Securities Class Action. A fourth case, originally filed in the Southern District of Ohio, was transferred to the Central District of California on November 5, 2021 (under Case No. 2:21-cv-08734) and assigned to the same judge who presides over the Securities Class Action and the consolidated Central District of California derivative action. Plaintiffs filed their first amended complaint on May 2, 2022. On July 22, 2022, the Court granted the Defendants’ motion to stay the action pending resolution of the Securities Class Action. Two further actions, both filed in the Eight Judicial District Court of the State of Nevada in and for Clark County, were consolidated on January 7, 2022 (under Case No. A-21-833050-B). On January 24, 2022, the plaintiffs in the consolidated action in Nevada state court filed their consolidated amended complaint, which was also revised to include the additional allegations made in the Amended Complaint in the Securities Class Action discussed above. On March 22, 2022, the defendants and the Company filed a motion to stay the Nevada state court consolidated action, and the defendants filed motions to dismiss the consolidated action, which the Company joined in with respect to the arguments related to the plaintiffs’ lack of standing. Plaintiffs’ oppositions to these motions were filed on June 3, 2022. Defendants’ replies were filed on July 15, 2022. On August 4, 2022, the court denied the defendants' motion to dismiss the consolidated action, but granted the defendants' motion to stay the action pending resolution of the Securities Class Action. The seventh shareholder derivative action was filed on June 22, 2022 in the United States District Court for the District of Nevada under Case No. 2:22-cv-00980. On October 17, 2022, the Court granted the parties’ stipulation to stay the case pending resolution of the Securities Class Action. The eighth shareholder derivative action was filed on August 19, 2022 in the Common Pleas Court of Hamilton County, Ohio under Case No. A 2203019. By stipulation of the parties, the deadline for defendants and nominal defendant to respond to the complaint has been extended to November 16, 2022. As discussed more fully above, on October 24, 2022, the Company and the individual defendants entered into a binding term sheet to resolve the shareholder derivative actions pending in the Central District of California, the United States District Court for the District of Nevada and State District Court of Nevada as well as the related Securities Class Action. The settlement will be subject to final documentation, public notice and court approval by the State District Court of Nevada, and there can be no assurance that the settlement will be approved on those terms or at all. The parties have agreed to promptly request that the courts in such actions stay all proceedings and/or enter an order enjoining all other stockholders of the Company from commencing, instituting, or prosecuting any similar claims. Although these actions purport to seek recovery on behalf of the Company, the Company will incur certain expenses due to indemnification and advancement obligations with respect to the defendants. The Company understands that defendants believe these actions are without merit and intends to support them as they pursue all legal avenues to defend themselves fully. Products Liability Litigation On September 20, 2022, Reinier Angulo filed a Complaint in the United States District Court for the Southern District of Florida (Civil Action No. 1:22-cv-22489-CMA) against the Company in connection with injuries suffered while operating a W-62 truck on February 5, 2020, claiming strict liability, negligence, and negligent failure to warn. The Company does not believe it manufactured the W-62 that is the subject to the Complaint. On October 27, 2022, the Company timely filed a motion to dismiss for lack of personal jurisdiction, advising the court and the Plaintiff that the Company had insufficient contacts with the state of Florida to justify the exercise of jurisdiction in Florida and was not the manufacturer of the subject W-62 truck. On October 31, the Court denied the Company’s motion to dismiss, without prejudice, and granted the Plaintiff leave to file an amended complaint. The Plaintiff filed an amended complaint on November 1, 2022, and the Company’s response is due on November 15, 2022.

Summary of Business and Signi_2

Summary of Business and Significant Accounting Principles (Policies)	9 Months Ended
	Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Overview	Overview We are an American technology company with a vision to pioneer the transition to zero-emission commercial vehicles. Our primary focus is to provide sustainable and cost-effective solutions to the commercial transportation sector. We design and manufacture all-electric delivery trucks and drone systems, including the technology that optimizes the way these vehicles operate. We are focused on our core competency of bringing our electric delivery vehicle platforms to market.
Principles of Consolidation	Principles of Consolidation The accompanying condensed consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) and reflect our accounts and operations and those of our wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated upon consolidation.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, costs and expenses and related disclosures in the accompanying notes. In the opinion of our management, the Unaudited Condensed Consolidated Financial Statements include all adjustments that are necessary for the fair presentation of Workhorse’s financial condition, results of operations and cash flows for the interim periods presented. Such adjustments are of a normal, recurring nature. The results of operations and cash flows for the interim periods presented may not necessarily be indicative of full-year results. Reference should be made to the financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2021.
Revenue Recognition	Revenue is recognized when obligations under the terms of a contract with our customer are satisfied. Generally, this occurs when we transfer control of our vehicles, parts, or accessories, or provide services. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. For the majority of sales, this occurs when products are shipped from our manufacturing facility. At the time of revenue recognition, we reduce the transaction price and record a sales return and allowance reserve against revenue for estimated variable considerations related to future product returns. Such estimates are based on an analysis of known pending returns and historical experience. We adjust our estimate of revenue at the earlier of when the value of consideration we expect to receive changes or when the consideration becomes fixed. Sales and other taxes we collect concurrent with revenue-producing activities are excluded from revenue. The expected costs associated with our base warranties and field service actions are recognized as expense when the products are sold. We do not have any material significant payment terms as payment is received at or shortly after the point of sale. We have elected to recognize the cost for freight and shipping when control over vehicles, parts, or accessories has transferred to the customer as an expense in Cost of Sales. Deferred revenue is related to any non-refundable amounts that are collected from customers related to our unsatisfied assembly services. Deferred revenue is recognized as revenue as the performance obligation is satisfied. Deferred revenue is equivalent to the total service fee allocated to the assembly service performance obligations that are unsatisfied as of the balance sheet date. Deferred revenue was $4.9 million and zero as of September 30, 2022 and 2021, respectively.
Accounts Receivable	Accounts Receivable Accounts receivable primarily include amounts related to sales of our products and services rendered. We provide an allowance against accounts receivable for the amount we expect to be uncollectible. We write-off accounts receivable against the allowance when they are deemed uncollectible.
Accounting Standards Recently Adopted	Accounting Standards Recently Adopted In August 2020, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity . The ASU simplifies the accounting for certain convertible instruments, amends the guidance on derivative scope exceptions for contracts in an entity’s own equity and requires the use of the if-converted method for calculating diluted earnings per share. The ASU removes separation models for convertible debt with a cash conversion feature. Such convertible instruments will be accounted for as a single liability measured at amortized cost. The Company adopted the ASU as of January 1, 2022. The adoption of this guidance did not have a material impact on the Company's financial condition and results of operations.

Inventory, Net (Tables)

Inventory, Net (Tables)	9 Months Ended
	Sep. 30, 2022
Inventory Disclosure [Abstract]
Schedule of Inventory	Inventory, net consisted of the following: September 30, 2022 December 31, 2021 Raw materials $ 33,514,473 $ 66,238,615 Work in process 25,129,247 20,826,644 Finished goods 100,631 — 58,744,351 87,065,259 Less: inventory reserves (47,176,744) (76,997,892) Inventory, net $ 11,567,607 $ 10,067,367

Prepaid Expenses and Other Cu_2

Prepaid Expenses and Other Current Assets (Tables)	9 Months Ended
	Sep. 30, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule of Prepaid and Other Current Assets	Prepaid expenses and other current assets consisted of the following: September 30, 2022 December 31, 2021 Prepaid purchases (1) $ 35,150,883 $ 24,101,695 Less: prepaid purchases reserve (2) (22,020,805) (23,912,025) Prepaid purchases, net 13,130,078 189,670 Prepaid insurance 1,203,158 2,205,608 Right of return asset — 1,620,000 Other 613,699 342,551 Prepaid expenses and other current assets $ 14,946,935 $ 4,357,829 (1) The Company’s prepaid purchases consists primarily of deposits made to our suppliers for non-recurring engineering costs, capital expenditures, and production parts. The increase in prepaid purchases as compared to December 31, 2021 is primarily due to deposits on supplier orders related to the Company’s W4CC and W750 vehicle platform.

Revenue (Tables)

Revenue (Tables)	9 Months Ended
	Sep. 30, 2022
Revenue from Contract with Customer [Abstract]
Schedule of Sales Activity	The following table provides a summary of sales activity for the periods indicated: Three Months Ended September 30, Nine Months Ended 2022 2021 2022 2021 Sales, net of returns and allowances $ 1,336,695 $ (605,000) $ 1,336,792 $ 1,032,400 Other sales 212,103 28,398 238,860 114,934 Total sales, net of returns and allowances $ 1,548,798 $ (576,602) $ 1,575,652 $ 1,147,334

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 30, 2022
Debt Disclosure [Abstract]
Schedule of Contractual Interest Expense	The following table summarizes contractual interest expense related to the 2024 Notes for the period indicated: Three Months Ended September 30, Nine Months Ended 2022 2021 2022 2021 Contractual interest expense $ — $ 2,000,000 $ 332,707 $ 5,977,777

Accrued and Other Current Lia_2

Accrued and Other Current Liabilities (Tables)	9 Months Ended
	Sep. 30, 2022
Payables and Accruals [Abstract]
Schedule of Accrued Liabilities	Accrued and other current liabilities consisted of the following: September 30, 2022 December 31, 2021 Accrued commissions $ 750,000 $ 4,000,000 Compensation and related costs 4,367,022 4,030,085 Accrued interest — 232,222 Legal reserve (Note 15) 35,000,000 — Sales returns and allowances — 2,410,000 Other 4,708,947 4,080,520 Total accrued and other current liabilities $ 44,825,969 $ 14,752,827
Schedule of Product Warranty Liability	Warranty liability activity consisted of the following for the periods indicated: Three Months Ended September 30, Nine Months Ended 2022 2021 2022 2021 Warranty liability, beginning of period $ 3,322,212 $ 4,866,213 $ 4,583,916 $ 5,400,000 Warranty costs incurred (387,584) (379,215) (1,086,542) (1,113,002) Provision for warranty 404,856 405,000 (157,890) 605,000 Warranty liability, end of period $ 3,339,484 $ 4,891,998 $ 3,339,484 $ 4,891,998

Leases (Table)

Leases (Table)	9 Months Ended
	Sep. 30, 2022
Leases [Abstract]
Schedule of Lease, Cost	Lease expense for operating leases is recognized on a straight-line basis over the lease term as either cost of sales or operating expenses depending on the nature of the leased asset. Three Months Ended September 30, Nine Months Ended 2022 2021 2022 2021 Short-term lease expense $ 179,704 $ 190,178 $ 603,712 $ 539,961 Operating lease expense 521,566 — 1,284,533 — Total lease expense $ 701,270 $ 190,178 $ 1,888,245 $ 539,961 Lease right-of-use assets consisted of the following: September 30, 2022 December 31, 2021 Operating leases $ 5,604,800 $ 1,538,852 Finance leases 5,872,127 — Total lease right-of-use assets $ 11,476,927 $ 1,538,852
Schedule of Lease Liabilities	Lease liabilities consisted of the following: September 30, 2022 December 31, 2021 Operating leases $ 6,539,980 $ 1,554,767 Finance leases 3,301,751 — Total lease liabilities 9,841,731 1,554,767 Less: current portion (1,105,016) (363,714) Long-term portion $ 8,736,715 $ 1,191,053

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]
Schedule of Stock Based Compensation Activity	The following table summarizes stock-based compensation expense for the periods indicated: Three Months Ended September 30, Nine Months Ended 2022 2021 2022 2021 Stock options $ 245,867 $ 181,558 $ 732,830 $ 273,180 Restricted stock awards 2,047,989 1,039,647 5,954,098 2,980,366 Performance-based restricted stock awards 691,419 — 1,941,049 — Total stock-based compensation expense $ 2,985,275 $ 1,221,205 $ 8,627,977 $ 3,253,546
Schedule of Stock Option Activity	A summary of stock option activity for the nine months ended September 30, 2022 is as follows: Number of Options Weighted Weighted Balance, December 31, 2021 495,836 $ 6.80 6.5 Exercised (69,710) 1.48 Forfeited (2,500) 22.30 Balance, September 30, 2022 423,626 $ 7.63 6.7 Number of options exercisable at September 30, 2022 218,006 $ 5.48 4.6
Schedule of Restricted Stock Activity	A summary of restricted stock award activity for the nine months ended September 30, 2022 is as follows: Number of Unvested Shares Weighted Average Grant Date Fair Value per Share Balance, December 31, 2021 1,617,192 $ 9.33 Granted 2,838,164 3.10 Vested (709,607) 6.71 Forfeited (149,833) 6.27 Balance, September 30, 2022 3,595,916 $ 5.06
Schedule of Nonvested Performance-Based Units Activity	A summary of the activity for PSU awards with total shareholder return performance objectives for the nine months ended September 30, 2022 is as follows: Number of Unvested Shares Weighted Average Grant Date Fair Value per Share Balance, December 31, 2021 306,197 $ 11.79 Granted 454,832 11.79 Forfeited (22,278) 11.79 Balance, September 30, 2022 738,751 $ 11.79 A summary of the PSU awards with cumulative adjusted EBITDA targets for the nine months ended September 30, 2022 is as follows: Number of Unvested Shares Balance, December 31, 2021 — Granted 454,822 Forfeited (22,276) Balance, September 30, 2022 432,546

Earnings (Loss) Per Share (Tabl

Earnings (Loss) Per Share (Tables)	9 Months Ended
	Sep. 30, 2022
Earnings Per Share [Abstract]
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	The following table presents the potentially dilutive shares that were excluded from the computation of diluted net loss per share of common stock, because their effect was anti-dilutive: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Stock-based awards and warrants 3,364,289 3,987,285 10,129,870 3,987,285 Convertible notes (1) — — 7,833,666 — (1) Represents shares issued in exchange of convertible notes in April 2022. See Note 6, Debt , for additional information regarding shares issued subsequent to the date of the Condensed Consolidated Financial Statements.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2022
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	A financial asset or liability’s classification within the hierarchy is determined based on the lowest level of input that is significant to the fair value measurement. Assets and liabilities measured at fair value and fair value measurement level were as follows: September 30, 2022 December 31, 2021 Fair Value Level 1 Level 2 Level 3 Fair Value Level 1 Level 2 Level 3 Liabilities Convertible notes $ — $ — $ — $ — $ 24,705,000 $ — $ — $ 24,705,000 Total liabilities at fair value $ — $ — $ — $ — $ 24,705,000 $ — $ — $ 24,705,000

Inventory, Net - Schedule of In

Inventory, Net - Schedule of Inventory (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Raw materials	$ 33,514,473	$ 66,238,615
Work in process	25,129,247	20,826,644
Finished goods	100,631	0
Gross inventory	58,744,351	87,065,259
Less: inventory reserves	(47,176,744)	(76,997,892)
Inventory, net	$ 11,567,607	$ 10,067,367

Inventory, Net - Additional Inf

Inventory, Net - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Inventory [Line Items]
Inventory valuation reserve	$ 47,176,744		$ 47,176,744		$ 76,997,892
Inventory valuation reserve period decrease			29,800,000
Other income (loss)	13,413,500	$ (77,127,266)	$ 13,413,500	$ (225,432,884)
C100 Vehicle Platform
Inventory [Line Items]
Other income (loss)	13,400,000
Affiliated Entity | Former Executive/VP | C100 Vehicle Platform | Commission
Inventory [Line Items]
Expense from transaction with related party	$ 500,000

Contract Manufacturing Servic_4

Contract Manufacturing Services and Investment in Tropos (Details) $ / shares in Units, $ in Millions			12 Months Ended			36 Months Ended
	Aug. 23, 2022 USD ($) $ / shares shares	Aug. 08, 2022	Dec. 31, 2025 vehicle	Dec. 31, 2024 vehicle	Dec. 31, 2023 vehicle	Dec. 31, 2025 vehicle	Sep. 30, 2022 USD ($)
Tropos Trechnologies, Inc.
Short-Term Debt [Line Items]
Minority ownership							$ 10
Affiliated Entity
Short-Term Debt [Line Items]
Agreement term		3 years
Affiliated Entity | Forecast
Short-Term Debt [Line Items]
Agreement term, minimum quantity | vehicle			250	2,000	2,000	4,250
Tropos Trechnologies, Inc. | Affiliated Entity | Deposit For Future Services
Short-Term Debt [Line Items]
Amount of transaction	$ 5
Series B Preferred Stock | Tropos Trechnologies, Inc. | Affiliated Entity
Short-Term Debt [Line Items]
Shares repurchased during period (in shares) | shares	605,811
Option to repurchase shares (in shares) | shares	424,068
Option to repurchase additional exercise price (In dollars per share) | $ / shares	$ 16.51
Payment to acquire preferred stock	$ 5

Contract Manufacturing Servic_5

Contract Manufacturing Services and Investment in Tropos (Details) $ in Millions			12 Months Ended			36 Months Ended
	Aug. 23, 2022 USD ($) shares	Aug. 08, 2022	Dec. 31, 2025 vehicle	Dec. 31, 2024 vehicle	Dec. 31, 2023 vehicle	Dec. 31, 2025 vehicle	Sep. 30, 2022 USD ($)
Tropos Trechnologies, Inc.
Short-Term Debt [Line Items]
Minority ownership							$ 10
Affiliated Entity
Short-Term Debt [Line Items]
Agreement term		3 years
Affiliated Entity | Forecast
Short-Term Debt [Line Items]
Agreement term, minimum quantity | vehicle			250	2,000	2,000	4,250
Tropos Trechnologies, Inc. | Affiliated Entity | Deposit For Future Services
Short-Term Debt [Line Items]
Amount of transaction	$ 5
Series B Preferred Stock | Tropos Trechnologies, Inc. | Affiliated Entity
Short-Term Debt [Line Items]
Shares repurchased during period (in shares) | shares	605,811
Option to repurchase shares (in shares) | shares	424,068
Payment to acquire preferred stock	$ 5

Contract Manufacturing Servic_6

Contract Manufacturing Services and Investment in Tropos (Details) $ in Millions			12 Months Ended			36 Months Ended
	Aug. 23, 2022 USD ($) shares	Aug. 08, 2022	Dec. 31, 2025 vehicle	Dec. 31, 2024 vehicle	Dec. 31, 2023 vehicle	Dec. 31, 2025 vehicle	Sep. 30, 2022 USD ($)
Tropos Trechnologies, Inc.
Short-Term Debt [Line Items]
Minority ownership							$ 10
Affiliated Entity
Short-Term Debt [Line Items]
Agreement term		3 years
Affiliated Entity | Forecast
Short-Term Debt [Line Items]
Agreement term, minimum quantity | vehicle			250	2,000	2,000	4,250
Tropos Trechnologies, Inc. | Affiliated Entity | Deposit For Future Services
Short-Term Debt [Line Items]
Amount of transaction	$ 5
Series B Preferred Stock | Tropos Trechnologies, Inc. | Affiliated Entity
Short-Term Debt [Line Items]
Shares repurchased during period (in shares) | shares	605,811
Option to repurchase shares (in shares) | shares	424,068
Payment to acquire preferred stock	$ 5

Prepaid Expenses and Other Cu_3

Prepaid Expenses and Other Current Assets (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid purchases	$ 35,150,883	$ 24,101,695
Less: prepaid purchases reserve	(22,020,805)	(23,912,025)
Prepaid purchases, net	13,130,078	189,670
Prepaid insurance	1,203,158	2,205,608
Right of return asset	0	1,620,000
Other	613,699	342,551
Prepaid expenses and other current assets	$ 14,946,935	$ 4,357,829

Revenue - Schedule of Sales Act

Revenue - Schedule of Sales Activity (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Disaggregation of Revenue [Line Items]
Total sales, net of returns and allowances	$ 1,548,798	$ (576,602)	$ 1,575,652	$ 1,147,334
Sales, net of returns and allowances
Disaggregation of Revenue [Line Items]
Total sales, net of returns and allowances	1,336,695	(605,000)	1,336,792	1,032,400
Other sales
Disaggregation of Revenue [Line Items]
Total sales, net of returns and allowances	$ 212,103	$ 28,398	$ 238,860	$ 114,934

Revenue - Additional Informatio

Revenue - Additional Information (Details) - USD ($) $ in Millions	Sep. 30, 2022	Sep. 30, 2021
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred revenue	$ 4.9	$ 0
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	$ 3.4
Revenue, remaining performance obligation, expected timing of satisfaction, period	12 months

Debt - Narrative (Details)

Debt - Narrative (Details) - USD ($) shares in Millions			3 Months Ended			9 Months Ended
	Apr. 21, 2022	Apr. 14, 2020	Sep. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Debt Instrument [Line Items]
Convertible notes, at fair value			$ 0			$ 0		$ 24,705,000
Accrued interest			0			0		232,222
Change in fair value and loss on exchange of convertible notes						(1,769,857)	$ 27,600,000
Convertible notes
Debt Instrument [Line Items]
Convertible notes, at fair value			$ 0			$ 0		24,700,000
Senior Secured Convertible Notes Due 2024 | Convertible notes
Debt Instrument [Line Items]
Interest rate			4%			4%
Face amount			$ 0			$ 0		$ 27,500,000
Conversion of convertible note, amount	$ 27,500,000
Shares issued upon conversion (in shares)	7.8
Long-term debt, gross	$ 29,400,000
Redemption price, percentage	107%
Accrued interest	$ 300,000
Change in fair value and loss on exchange of convertible notes				$ (1,800,000)
Adjustment to the fair value				400,000
Interest expense			$ 0		$ 2,000,000	$ 332,707	5,977,777
Senior Secured Convertible Notes Due 2024 | Convertible notes | Reclassification out of Accumulated Other Comprehensive Income
Debt Instrument [Line Items]
Interest expense				$ 1,400,000
Paycheck Protection Program Term Note
Debt Instrument [Line Items]
CARES Act, proceeds from loans payable		$ 1,400,000					$ 1,400,000
CARES Act, interest rate		1%

Debt (Details)

Debt (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Senior Secured Convertible Notes Due 2024 | Convertible notes
Debt Instrument [Line Items]
Contractual interest expense	$ 0	$ 2,000,000	$ 332,707	$ 5,977,777

Accrued and Other Current Lia_3

Accrued and Other Current Liabilities - Accrued And Other Current Liabilities (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Payables and Accruals [Abstract]
Accrued commissions	$ 750,000	$ 4,000,000
Compensation and related costs	4,367,022	4,030,085
Accrued interest	0	232,222
Legal reserve	35,000,000	0
Sales returns and allowances	0	2,410,000
Other	4,708,947	4,080,520
Total accrued and other current liabilities	$ 44,825,969	$ 14,752,827

Accrued and Other Current Lia_4

Accrued and Other Current Liabilities - Accrued Warranty Activity (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Movement in Extended Product Warranty Accrual [Roll Forward]
Warranty liability, beginning of period	$ 3,322,212	$ 4,866,213	$ 4,583,916	$ 5,400,000
Warranty costs incurred	(387,584)	(379,215)	(1,086,542)	(1,113,002)
Provision for warranty	404,856	405,000	(157,890)	605,000
Warranty liability, end of period	$ 3,339,484	$ 4,891,998	$ 3,339,484	$ 4,891,998

Leases - Narrative (Details)

Leases - Narrative (Details)	Sep. 30, 2022 USD ($)
Lessee, Lease, Description [Line Items]
Lessee, operating lease, renewal term	5 years
Letter of Credit | Line of Credit
Lessee, Lease, Description [Line Items]
Letter of credit	$ 500,000
Interest rate	5%

Leases - Lease Expense For Oper

Leases - Lease Expense For Operating Leases (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Leases [Abstract]
Short-term lease expense	$ 179,704	$ 190,178	$ 603,712	$ 539,961
Operating lease expense	521,566	0	1,284,533	0
Total lease expense	$ 701,270	$ 190,178	$ 1,888,245	$ 539,961

Leases - Right of Use Assets -

Leases - Right of Use Assets - (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Leases [Abstract]
Operating leases	$ 5,604,800	$ 1,538,852
Finance leases	5,872,127	0
Lease right-of-use assets	$ 11,476,927	$ 1,538,852

Leases - Lease Liabilities - (D

Leases - Lease Liabilities - (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Leases [Abstract]
Operating leases	$ 6,539,980	$ 1,554,767
Finance leases	3,301,751	0
Total lease liabilities	9,841,731	1,554,767
Less: current portion	(1,105,016)	(363,714)
Long-term portion	$ 8,736,715	$ 1,191,053

Stock Based Compensation - Addi

Stock Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions		9 Months Ended
	Feb. 23, 2022	Sep. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized (in shares)		13,000,000
Shares available for grant (in shares)		2,000,000
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense, options		$ 1.9
Unrecognized compensation expense, recognition period		1 year 10 months 24 days
Restricted stock awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense, recognition period		2 years 2 months 12 days
Unrecognized compensation expense		$ 15.3
Grants in period (in shares)		2,838,164
Granted (in usd per share)		$ 3.10
Performance-based restricted stock awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense, recognition period		2 years 3 months 18 days
Unrecognized compensation expense		$ 6.6
Grants in period (in shares)	900,000	454,832
Vesting percent	50%
Granted (in usd per share)	$ 11.79	$ 11.79
Volatility assumption	117%
Share-based compensation risk free interest rate	0.69%
Performance-based restricted stock awards | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of awards ultimately vest	0%
Performance-based restricted stock awards | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of awards ultimately vest	200%

Stock Based Compensation - Shar

Stock Based Compensation - Share Based Compensation Expense (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 2,985,275	$ 1,221,205	$ 8,627,977	$ 3,253,546
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	245,867	181,558	732,830	273,180
Restricted stock awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	2,047,989	1,039,647	5,954,098	2,980,366
Performance-based restricted stock awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 691,419	$ 0	$ 1,941,049	$ 0

Stock Based Compensation - Stoc

Stock Based Compensation - Stock Option Activity (Details) - $ / shares	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Number of Options
Beginning balance (in shares)	495,836
Exercised (in shares)	(69,710)
Forfeited (in shares)	(2,500)
Ending balance (in shares)	423,626	495,836
Number of options exercisable (in shares)	218,006
Weighted Average Exercise Price per Option
Beginning balance (in usd per share)	$ 6.80
Exercised (in usd per share)	1.48
Forfeited (in usd per share)	22.30
Ending balance (in usd per share)	7.63	$ 6.80
Weighted Average Exercise Price per Option (in usd per share)	$ 5.48
Weighted Average Remaining Contractual Life (Years)
Weighted Average Remaining Contractual Life (Years)	6 years 8 months 12 days	6 years 6 months
Options exercisable, Weighted Average Remaining Contractual life (Years)	4 years 7 months 6 days

Stock Based Compensation - Rest

Stock Based Compensation - Restricted Stock (Details) - Restricted stock awards	9 Months Ended
	Sep. 30, 2022 $ / shares shares
Number of Unvested Shares
Beginning balance (in shares) | shares	1,617,192
Granted (in shares) | shares	2,838,164
Vested (in shares) | shares	(709,607)
Forfeited (in shares) | shares	(149,833)
Ending balance (in shares) | shares	3,595,916
Weighted Average Grant Date Fair Value per Share
Beginning balance (in usd per share) | $ / shares	$ 9.33
Granted (in usd per share) | $ / shares	3.10
Vested (in usd per share) | $ / shares	6.71
Forfeited (in usd per share) | $ / shares	6.27
Ending balance (in usd per share) | $ / shares	$ 5.06

Stock Based Compensation - Perf

Stock Based Compensation - Performance Shares, Outstanding Activity (Details) - Performance-based restricted stock awards - $ / shares		9 Months Ended
	Feb. 23, 2022	Sep. 30, 2022
Number of Unvested Shares
Beginning balance (in shares)		306,197
Grants in period (in shares)	900,000	454,832
Forfeited (in shares)		(22,278)
Ending balance (in shares)		738,751
Weighted Average Grant Date Fair Value per Share
Beginning balance (in usd per share)		$ 11.79
Granted (in usd per share)	$ 11.79	11.79
Forfeited (in usd per share)		11.79
Ending balance (in usd per share)		$ 11.79

Stock Based Compensation - EBIT

Stock Based Compensation - EBITDA PSUs (Details) - EBITDA target performance share units (EBITDA PSUs)	9 Months Ended
	Sep. 30, 2022 shares
Number of Unvested Shares
Beginning balance (in shares)	0
Granted (in shares)	454,822
Forfeited (in shares)	(22,276)
Ending balance (in shares)	432,546

Income Taxes (Details)

Income Taxes (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Deferred tax liability	$ 0	$ 0

Earnings (Loss) Per Share - Com

Earnings (Loss) Per Share - Computation of Diluted Net Loss Per Share of Common Stock, Because Their Effect was Anti-Dilutive- (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Stock-based awards and warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive options and warrants excluded from diluted average shares outstanding (in shares)	3,364,289	3,987,285	10,129,870	3,987,285
Convertible notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive options and warrants excluded from diluted average shares outstanding (in shares)	0	0	7,833,666	0

Other Transactions (Details)

Other Transactions (Details) shares in Millions	Oct. 31, 2019 shares
ST Engineering Hackney, Inc.
Other Transactions [Line Items]
Asset acquisition, equity interest issued or issuable (in shares)	2.3

Fair Value Measurements - Asset

Fair Value Measurements - Assets and Liabilities Measured at Fair Value (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Liabilities
Convertible notes	$ 0	$ 24,705,000
Fair Value
Liabilities
Convertible notes	0	24,705,000
Total liabilities at fair value	0	24,705,000
Fair Value | Level 1
Liabilities
Convertible notes	0	0
Total liabilities at fair value	0	0
Fair Value | Level 2
Liabilities
Convertible notes	0	0
Total liabilities at fair value	0	0
Fair Value | Level 3
Liabilities
Convertible notes	0	24,705,000
Total liabilities at fair value	$ 0	$ 24,705,000

Commitment and Contingencies (D

Commitment and Contingencies (Details) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2022	Dec. 31, 2021
Loss Contingencies [Line Items]
Legal reserve	$ 35,000,000	$ 35,000,000	$ 0
Case No.2:21-cv-02072 | Pending Litigation | Violation Of Federal Securities Laws
Loss Contingencies [Line Items]
Settlement paid in cash		15,000,000
Settlement paid in stock		20,000,000
Insurance receivable	15,000,000	15,000,000
Legal reserve	35,000,000	35,000,000
Litigation settlement, expense	$ 20,000,000	$ 20,000,000