![]() ![]() The balance will be sold following completion of updates, final inspection and establishment of service arrangements to meet customer specifications. Of the remaining units, the company intends to use approximately 15 for sales, demo drives, marketing and service training purposes prior to sale, Lordstown Motors said. Through January 3, 2023, Lordstown Motors had produced 31 vehicles for sale, of which six have been delivered to customers. However, Lordstown Motors said in January that it projects a “slow rate” of production for the Endurance, which would accelerate as the company resolves supply chain constraints. Then, the company projected it would manufacture a first batch of 500 units beginning in the latter half of 2022 and into the first half of 2023. Production of the EV pickup started in late September 2022, and the company started commercial deliveries Nov. Last year, Lordstown Motors sold its plant to Foxconn for $230 million and entered into a contract manufacturing agreement that allows Foxconn to build the Endurance. However, its founder and CEO, Burns, resigned in June 2021 after an internal inquiry found that executives had publicly exaggerated preorders for the Endurance. Lordstown Motors announced in 2019 that it would build a new EV pickup, the Endurance, at the former General Motors assembly plant in Lordstown. Workhorse added in its filing that it “cannot currently predict to what extent, if at all, LMC will sell any such vehicles, whether LMC will pay the applicable royalties on any such vehicles it does sell, or whether the amount of any such royalties will be material.” “LMC has not informed the company that it has sold any vehicles since the date of the agreement.” “Notwithstanding LMC’s termination of the agreement, the royalties would still be due and payable if LMC sells vehicles,” the Workhorse filing said. Workhorse said in its filing that it believes the company would still be entitled to royalties after the agreement is terminated. The license agreement also calls for Workhorse to receive a 1% royalty payment on gross sales of Lordstown Motors’ first 200,000 pickup trucks. Workhorse sold its entire stake in Lordstown Motors during the third quarter of 2001, recording a loss of $76.5 million, according to earlier regulatory filings. ![]() ![]() In exchange, Workhorse received a 10% equity stake in Lordstown Motors and an up-front royalty payment equal to 1% of the EV startup’s aggregate debt and equity commitments. The IP license agreement covered technology related to Workhorse’s own EV pickup platform and other intellectual assets. Under the agreement, Lordstown Motors received the right to use Workhorse’s licensed intellectual property toward the development of “certain electric pickup trucks,” the filing says. Workhorse manufactures electric-powered delivery vans and was founded by Stephen Burns, who left the company in 2019 to start Lordstown Motors. ![]()
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