Workhorse Group Changes Auditor Amidst Unremediated Material Weaknesses and Going Concern Warning
WKHS is trading near its 52-week low of $4.77 (4.8% above the low) on light trading volume (0.3× avg).
Summary
Workhorse Group Inc. changed its auditor to Carr, Riggs & Ingram, L.L.C. following a merger, but disclosed that its previous auditor had raised substantial doubt about the company's ability to continue as a going concern and that material weaknesses in internal controls remain unremediated.
Key Events · Corporate Governance and Compliance · WKHS
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Auditor Change Announced
Workhorse Group Inc. dismissed Berkowitz Pollack Brant Advisors + CPAs, LLP (BPB) and appointed Carr, Riggs & Ingram, L.L.C. (CRI) as its new independent registered public accounting firm, effective immediately. This transition occurred after a merger and CRI's acquisition of BPB's capital markets practice.
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Going Concern Warning from Previous Auditor
BPB's audit report for the fiscal year ended December 31, 2024, included an explanatory paragraph highlighting substantial doubt about Workhorse Group Inc.'s ability to continue as a going concern.
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Unremediated Material Weaknesses in Internal Controls
The company disclosed that material weaknesses in its internal control over financial reporting, related to valuation deliverables and timely financial reporting, remain unremediated. These issues were previously reported in Q1 and Q3 2024.
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Post-Merger Financial Reporting Context
The auditor change and disclosures follow the completion of a merger with Motiv Power Systems, Inc. on December 15, 2025, which was treated as a reverse acquisition for accounting purposes.
Analysis · WKHS · Manufacturing
Workhorse Group Inc. has appointed Carr, Riggs & Ingram, L.L.C. (CRI) as its new independent registered public accounting firm, replacing Berkowitz Pollack Brant Advisors + CPAs, LLP (BPB). This change follows a merger with Motiv Power Systems, Inc. and the acquisition of BPB's capital markets practice by CRI. Critically, the previous auditor's report for fiscal year 2024 included an explanatory paragraph indicating substantial doubt about the company's ability to continue as a going concern. Furthermore, the company disclosed unremediated material weaknesses in its internal control over financial reporting, specifically related to the review of third-party valuation deliverables and the timely issuance of quarterly reports due to accounting personnel turnover. These persistent issues, especially for a micro-cap company trading near its 52-week low, signal significant financial and operational challenges that could impact investor confidence and future financing efforts.
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At the time of this filing, WKHS was trading at $5.00 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $10.8M. The 52-week trading range was $4.77 to $109.50. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.