we amended our cash flow credit agreement to increase its capacity and borrow an additional $10 million to fund our operations. As of the filing of our 10Q, we had $1.7 million available to borrow under our current credit agreements. We are not providing specific financial guidance at this time, but with that said, we expect deliveries to increase meaningfully in the second half of 2026 as we ramp production at Union City. That ramp supports our previously announced orders of 100 vehicles, each from Purolator and Gateway, as well as purchase orders from other customers. We continue to work to convert our pipeline of orders and revenue in the second half of 2026. With that, let me turn it back to Scott for closing remarks. Thanks, Jody.

In summary, Workhorse has made tremendous strides in our plan to establish the leading position in the medium-duty commercial trucking segment. Our integration efforts are succeeding in reducing costs and optimizing the company for growth. Our engineering and design teams are finding ways to reduce costs today while unlocking future growth through low-cost and more flexible platforms that can also expand our addressable target market in the commercial truck segment. We're developing an exciting new line of business in the mobile data center category where we can leverage current capabilities and assets to offer a compelling value proposition to a high-growth market. And we've strengthened the executive team, set clear goals, and structured the overall organization to deliver our promises to customers and, most importantly, to our shareholders. I'm looking forward to a strong finish to 2026 and an even stronger 2027. We appreciate your continued support, and we look forward to updating you on our progress in the months ahead.

Operator, you may now open the lines for questions. Thank you.

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One moment, please, while we poll for questions. Our first question is from Ben Summers with BTIG.

Please proceed with your question.

Hey, good afternoon, guys, and thank you for taking my questions, and welcome to the team, Jody. So first I wanted to ask on the pivot to the AI data centers, And if you could just talk a little bit more about the steps you need to get to commercialization by 2027 and just, you know, any preliminary feedback you guys have kind of had since the announcement, you know, a little while ago.

Hey, Ben, nice to hear from you. It's Scott, and I'll ask Jody to tap in here. I think the key steps right now are, you know, what I would call a phase zero, developing the platform itself and finishing the initial design. What we're targeting, Ben, is something that's, I wouldn't say it's universal, but something that will fit a number of different applications. We have some initial thinking on that. We're outpolling the market right now. So finishing that and then getting into prototyping and being prepared for manufacturing, those steps, you know, probably take in the next 10 to 12 months for us to finish. so those are all internal based on market feedback we've had so far we're also developing an expanded list of supply chain partners who are going to be suppliers to that business as well that's well underway now there's some hiring although a lot of crossover right now as we noted in the comments earlier the most of the hiring will come as we really dive into specific customer applications that we build. What we're trying to do is build a, much like our chassis, think of it as sort of a modular containerized system that can be compatible with different applications. I'd say the other most important part is developing these key, you know, sort of front-end partnerships. We use the term tier one supplier to these key partners. They're the folks that will be, you know, globally around the world looking for applications, customers, and specific needs that our combined offering will come together. We'll supply the containerized system. They'll put all the compute software, any of the communications systems that are associated with those in any of the in-country or in-region areas that are outside jurisdictions we typically deal with. That will all be our partners. So those conversations are well underway. frankly that was a big part of our due diligence on whether to even enter this market this wasn't a market we entered lightly by any means it's one we did a lot of research in we talked about a 40 plus billion dollar market out in a few years and and we really did quite a bit of research and digging into where we think we could really apply applications to to do that so those are sort of the initial things, developing that platform that's modular, much like our chassis, and developing these initial partnership relationships that are going to be market development partners for us. And we're well on our way on both of those fronts now. I don't know, Jody, if you want to add to that.

Yeah, the only thing I'd add to that is really our factory footprint and really leveraging the factory in Union City. You know, we have a lot of the talent in-house already that we can utilize. And so, you know, I feel like that, you know, our capabilities internally are really well suited to be able to capture early adoption and development over the next year, year and a half.

Super helpful. And for my follow up, you know, just want to ask a bit more on the supplier discussions that you guys spoke about and, you know, potentially, you know, reducing costs. You know, how much of this is under your guys control versus how much of it is just market driven and just you know relying on cost components just coming down just curious how much you know control you guys have over reducing you know the cost of goods sold here you're specifically saying referring to the bomb cost on the vehicle exactly yep yeah uh good question and so yeah we have a a cost down strategy and not it's not just working with the current suppliers.

It's really, you know, rethinking how we think about the overall bomb cost. And so with that strategy, we are looking at, you know, new potential suppliers as well that really can help drive our costs down from where we are today and really drive a positive gross margin. So we're working with those partners and we're looking for new partners. And, you know, we really think that this is a 12 to 18 month timeframe for us. And so that way we We can, you know, have our pathway to free cash flow positive and really drive, you know, financial discipline within our within our within our within the company.

Yeah, the thing I would add then, Scott, I think in addition to Jody's comments, definitely looking at new suppliers in addition to current suppliers and also looking at some of the, you know, the most high value components that we've used historically. Things like batteries, e-axles, and braking systems, steering systems, all those really high-value components. Can we co-develop together with some of our really key suppliers? This supply chain is really global now. Frankly, a lot of the best suppliers are coming from outside the U.S., even Canada, Europe, obviously China is a part of that now. So we're really scouring globally and expanding the reach of what our supply chain experts are looking for. And we're talking directly to some of those highest value suppliers, you know, what's in their product pipeline that we need to incorporate. And it's one of the benefits of that modular chassis approach we talked about. We want to be able to swap in new components as they come along from our suppliers. So we're working with them directly to understand what's their three or four year roadmap, too. and how do we build that into our engineering structure as we expand. So when we say, you know, our BOM cost down program, that's a multi-year ongoing effort. We will never finish that, Ben. So that's really how we're thinking about it. And it's exciting to see what's happening, particularly as passenger cars expand globally. the commercialization of larger components for commercial trucks have also started to catch up now to some of those technologies, things like 800-volt systems that historically were more 400-volt systems that everyone seems to be converting to. So it's following their sort of technology advancement curve and incorporating that into our designs as they incorporate, too.

Super helpful. Thank you guys for taking my questions.

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