Workhorse Group Inc.

For a detailed discussion of risk factors affecting us, see “Part I – Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025. There have been no material changes in the current period regarding our risk factors, other than as noted below.

Risks Related to our Business and Operations

Our expansion into the mobile AI data center market may not be successful and could adversely affect our business, financial condition, and results of operations.

In July 2026, we announced our intention to develop a containerized mobile AI data center product line. While we believe this initiative leverages certain of our existing engineering, manufacturing, and supply chain capabilities, it represents an expansion into a new market with different competitive dynamics, customer requirements, technologies, and operational risks than our historical business.

Our success will depend on our ability to design, manufacture, market, and support these products, establish customer demand, secure reliable sources of critical components, raise capital, and effectively compete against established participants in the data center infrastructure market. We may also be required to make significant investments in engineering, manufacturing, inventory, personnel, software, and other resources before realizing meaningful revenue, if any.

In addition, the mobile AI data center market is rapidly evolving and subject to changing technologies, customer preferences, regulatory requirements, and competitive pressures. If market adoption develops more slowly than anticipated, if customer demand does not materialize, if we encounter delays in product development or commercialization, or if we are unable to successfully execute our business strategy, our investments may not generate the expected returns.

Our expansion into this market may also divert management's attention and financial resources from our existing business, increase operational complexity, and expose us to risks that we have not previously encountered. If we are unsuccessful in developing or commercializing our mobile AI data center products, or if the costs associated with this initiative exceed our expectations, our business, financial condition, operating results, and cash flows could be materially and adversely affected.