The agreement follows a series of similar transactions that Workhorse Group has engaged in since March 15, 2024, which cumulatively have raised substantial capital through both convertible notes and warrants. To date, the company has issued notes totaling over $38 million and warrants to purchase millions of shares of common stock. This latest financial maneuver is part of Workhorse Group's ongoing strategy to strengthen its balance sheet and fund its operations. The company has also disclosed that it is currently evaluating the need for an additional reserve against its prepaid purchases asset, particularly those related to its W4 CC trucks. With a concerning current ratio of 1.16 and an Altman Z-Score indicating financial distress, InvestingPro data reveals the company's overall financial health score is rated as WEAK.