Does WKHS have the financial resources to perform a contract of this size??? Seems to me they may need to partner with a larger company or obtain an external means of financing (private equity placement or debt issuance).
Although a bit dated, I haven't heard who the USPS chose. Should have been announced in July per this article:
The Postal Service returns to the idea of all-electric delivery trucks.
Recently, the USPS released a list of pre-qualified companies, from which vehicles will be evaluated for delivery duties ahead of a contract being issues to supply an estimated 180,000 vehicles to the USPS.
One of them – Workhorse Group (formerly AMP Holding, that a few years ago was trying to introduce electric cars and SUV conversions on the market) intends not only to offer Workhorse electric truck, but also to implement it with the “Horsefly” drone developed in partnership with the University of Cincinnati.
Duane Hughes, director of sales at Workhorse Group, Inc. said:
“We feel very confident that our integrated drone technology on top of our electric truck is the best solution for the Postal Service as well as give them the lowest total cost of ownership for their truck needs and their future drone needs.”
In theory it could be good solution because an EV + drone could save on two of most expensive parts of delivery. The first is fuel and the second employee work hours. But will the advantages be strong enough?
“The mail carrier gets to a neighborhood to begin delivering mail or other packages. Meanwhile, the drone delivers a package either on its own or controlled by a pilot remotely to another address a mile or two away, saving the mail carrier time and allowing them to reach more addresses.
Cutting down on the time it takes the Postal Service to complete a route and delivering more packages during that time could save the Postal Service a lot of time and money, according to Hughes. The fifth generation of the Horsefly drone – its most current incarnation – weighs about 15 pounds and can carry a 10-pound package in extendable cages that lock together during flight.
The drone can fly up to 50 miles per hour, but will spend most of its time flying at about 35 miles per hour, according to Hughes.
The drone also comes with automatic stabilizers to make flight easier, and can automatically dock on top of the truck. It then charges itself using the electricity in the electric truck. Because it is attached to the truck and driven into the neighborhood, it removes the issue of a drone flying 30 or 40 miles to deliver a package from a warehouse, according to Hughes.”
USPS needs to buy up to 180,000 vehicles, and would like to purchase them for $25,000 to $35,000 per vehicle (total some $4.5 billion), but trucks must last at least 20 years. Lower maintenance costs and better fuel economy are very important to the delivery service.
In May, the agency plans on issuing a request for proposals and then it will award selected companies a contract to test a prototype. The first plug-in truck will enter service in 2018 at the earliest.
“The agency plans on picking the suppliers for the prototype in July, 2015 and will then test the prototypes through September, 2016. The final supplier will be selected in January, 2017, according to the Postal Service. The Postal Service would start receiving and using the vehicles one year later.”
An 8K (SEC) filing was done on August 11. Yahoo won't let me post the link, but go to the OTCM website, get a quote for WKHS, then check the filings and disclosures section.
Yeah, it was exciting to watch the sudden move, but it did back off at the end of the day. I have a number of 'penny stock" investments, WKHS being one of them. It's always hard to tell whether something is for real or just being pumped by some manipulating stock newsletter. One thing I like about WKHS is that they are not a PR machine, spewing useless information and stirring up false promises and hopes. The FAA application was for real and may be approved. Seems to be that their core business should be generating revenue in the upcoming reporting quarter. The thing I would be wary of is if people on this message board start hyping this as the next Tesla (of the truck market).
NEW YORK, Aug. 5, 2015
NEW YORK, Aug. 5, 2015 /PRNewswire/ --
Second Quarter 2015 Highlights:
◾Unaudited second quarter 2015 GAAP diluted EPS of $0.20 and adjusted diluted EPS of $0.42
◾Revenues grew 21% to $12.4 million from the prior year quarter
◾Operating profit margin of 35%
◾Announces a 40% increase in the quarterly dividend to $0.14 per share
◾Continued growth in OTCQX Best Market from U.S. Companies and Community Banks
◾New standards implemented to establish OTCQB as "America's Venture Market"
◾17 graduates to a national securities exchange
Certainly management needs to address the blood bath during the upcoming conference call. Look for indications of a dividend cut and/or discussion on how they plan to survive in a sub $50 per barrel environment. BTW, we are getting crushed more than the price of oil due to the weakness in the Canadian dollar.
I just bought recently at $16 and am second guessing myself. I do believe there is "hidden value", but they will have to put up some good numbers to start a catalyst. Owned a Regional Bank (MCHB) a few years ago which traded less than 5 shares a day, if at all. Got impatient...mistake. Glad you are keeping this board alive. Good luck and let's share thoughts once in awhile. PS Do you have any apprehensions about OTCM not being registered with the SEC as a reporting company (i.e. their "alternative reporting")?
Consider this: As of March 31, 2015, the Company had a working capital deficit in the amount of $7,017 compared to a deficit of $5,917 at December 31, 2014. The increase in the working capital deficit is primarily driven the increase in short term financing.
Questions to be answered: Do we have net tangible assets of $4 million (no), do we have a $50 million market cap. (no), do we have net income of $750K (no).
I own this stock and am just trying to be pragmatic about it. Seems to me we can stay afloat with issuing new shares or taking on debt (convertible to equity). We will continue to remain on the OTCM for the foreseeable future (IMHO).
When I post, I like to try to be factual, rather than editorial.
Here are the requirements: NASDAQ SmallCap Market Listing Requirements Small capitalization companies can be listed on the NASDAQ SmallCap Market if they have: (1) net tangible assets of $4 million, or (2) $50 million market capitalization, or (3) net income in the latest fiscal year or two of the past three fiscal years of $750,000. In addition, these companies must have a public float of $1 million, a market value of the public float of $5 million, a minimum of 300 shareholders, and at least three market makers. Also, these companies must have an operating history of at least one year or $50 million market capitalization. The initial minimum bid price is $4.00 and the same ongoing minimum bid price and peer review requirements as are set forth above apply. Source: NASDAQ -
Let's let all of the brain power on this MB figure out if AMBS qualifies.
Well, we got rid of the "D" (back to AMBS), but the uplisting was merely a shuffle from OTC Pink to OTCQB. NASDAQ listing is questionable. I do like the fact that the uplist within the OTCM exchange will now give us Real-Time Level 2 quotes (bid/ask and size).