Worksport Forms Strategic Partnership with Patriot Automotive Technologies to Accelerate Nationwide Expansion and Drive Millions in Annual Recurring RevenuePatriot's 200+ U.S. Dealer Network Expected to Sell Worksport-Made Products, Marking a Major Growth Milestone.April 29, 2025 8:31 AM EDT | Source: Worksport Ltd.West Seneca, New York--(Newsfile Corp. - April 29, 2025) - Worksport Ltd. (NASDAQ: WKSP) ("Worksport" or the "Company"), a U.S. based manufacturer and innovator of hybrid and clean ...

Steven Rossi Thank you for joining Worksport's Fiscal Year 2024 and Q4 2024 Earnings Call. I'm Steven Rossi, Chief Executive Officer of Worksport. With me is our Chief Financial Officer, Mike Johnston. Today, we will review our 2024 performance, discuss key operational milestones and share an updated outlook for 2025. Fiscal year 2024 was a transformative year for Worksport. We achieved significant revenue growth, expanded our product lineup and strengthened our financial foundation. We will be reviewing th ...

Financial Performance - For fiscal year 2024, the company reported net sales of $8,480,000, a 455% increase from $1,530,000 in 2023, driven by increased sales to private label partners and a surge in online consumer sales [6][11][12] - The fourth quarter of 2024 saw net sales of approximately $2,930,000, a nearly 250% year-over-year growth from $839,000 in Q4 2023, exceeding the full year revenue guidance [8][11] - Gross profit for the full year reached approximately $910,000, reflecting a gross margin of about 11%, with December 2024 gross margin exceeding 20% [13][9] - The operating loss for fiscal year 2024 was $16,160,000, compared to $14,930,000 in 2023, but the loss per share improved from $8.44 in 2023 to $5.84 in 2024, a 31% improvement [14][13] Business Lines and Market Performance - The company effectively bolstered its direct-to-consumer presence, with online sales accounting for 58% of total revenue in 2024, up from just 7% in 2023 [6][36] - The strategic shift towards higher margin Worksport branded products contributed to gross margin improvements, with a focus on phasing out lower margin offerings [7][9] - The company expanded its sales to U.S. Federal government agencies, marking its entry into the government sector, which is expected to grow in 2025 [21][20] Strategic Direction and Industry Competition - The company plans to launch new products, including the AL4 premium tunnel cover and the HD3 heavy-duty cover, targeting both consumer and commercial markets [25][26] - The company is also focusing on clean energy solutions, with the Solus solar tunnel cover and the Core mobile power system expected to launch in mid-2025 [28][29] - The company aims to strengthen its market position by expanding its sales and distribution networks, with a 30% increase in its dealer network in early 2025 [36][38] Management Commentary on Future Outlook - Management expressed optimism for 2025, forecasting revenues between $20,000,000 and $34,500,000, with expectations of significant revenue expansion driven by new product introductions [39][40] - The company anticipates gross margins to reach 25% to 30% by late 2025, supported by a shift towards higher margin products and economies of scale [41][42] - The overarching financial objective for 2025 is to achieve cash flow positivity by late 2025 or early 2026, with a focus on maintaining sufficient cash reserves [43][44] Other Important Information - The company completed a warrant inducement transaction in March 2025, resulting in net proceeds of $6,300,000, which bolstered its working capital to $7,300,000 [16] - The company enacted a one-for-ten reverse stock split in March 2025 to maintain compliance with NASDAQ listing requirements [19] - The patent portfolio expanded by 25% year-over-year, with over 170 approved, registered, and pending patents and trademarks [34] Q&A Session Summary Question: Can you provide an overview of online sales and future expectations? - Management aims for a 50/50 split between sales through its online platform and dealer networks, focusing on driving traffic to its website and offering exclusive products [54][55] Question: What is the expected revenue range for 2025? - The low end of the forecast is based on tunnel covers alone, while the upper end includes contributions from the Solus and Core products, with no expected revenues from tariff fees [78][82] Question: How will the company balance profitability and reinvestment? - The company plans to improve margins through engineering and operational efficiencies rather than reducing product quality, while also managing operating expenses carefully [69][70] Question: What is the current manufacturing capacity and future CapEx needs? - The company has two production lines capable of producing 100 covers per shift, with no immediate need for significant CapEx investments due to improved efficiencies [70][72]

Company Outlines Strong Momentum in Margins, Revenue, and Business Growth Entering 2025 West Seneca, New York, March 27, 2025 (GLOBE NEWSWIRE) -- Worksport Ltd. (NASDAQ: WKSP) (“Worksport” or the “Company”), a U.S.-based manufacturer and innovator of hybrid and clean energy solutions for the light truck, overlanding, and global consumer goods sectors, today announced financial results and significant operational achievements for fiscal year 2024. Marking a transformational year with record revenue growth, e ...

Intellectual Property and Technology - Worksport Ltd. has a growing intellectual property portfolio, including patents for solar integrated tonneau covers and hydrogen-based green energy systems[22]. - The company has a patent portfolio that includes 11 issued utility patents in the U.S. and 37 pending utility patent applications worldwide as of December 31, 2024[61]. - The company has 18 utility patents, 23 design registrations, and 79 pending patent applications worldwide as of December 31, 2024, but faces challenges in protecting its intellectual property[113]. - The company’s intellectual property rights may not adequately protect against competitors developing similar technologies[126]. - The company may face claims challenging the ownership of its patents, which could result in costly litigation and loss of intellectual property rights[123]. Financial Performance and Capital Raising - The company raised approximately $6.73 million from the exercise of existing warrants at an exercise price of $5.198 per share, with potential gross proceeds of $9.3 million from new warrants[24]. - The company increased its at-the-market offering program by an additional $4.134 million[25]. - A private offering resulted in the sale of 95,000 shares at $4.00 per share, along with warrants for 190,000 shares[27]. - The company received net proceeds of approximately $2.59 million from a registered direct offering of 237,224 shares at $7.40 each[33]. - The company has incurred a net loss of $16,163,789 for the year ended December 31, 2024, with an accumulated deficit of $64,476,966[94]. - For the twelve months ended December 31, 2024 and 2023, the company incurred operating losses of $16,163,789 and $14,928,958, respectively, with an accumulated deficit of $64,476,966 as of December 31, 2024[99]. - Cash and cash equivalents increased by $1,517,321 or 45%, from $3,365,778 at December 31, 2023 to $4,883,099 at December 31, 2024[219]. - Net cash used by operating activities decreased from $11,930,580 in 2023 to $10,138,798 in 2024[220]. Sales and Market Growth - For the year ended December 31, 2024, net sales were $8,484,379, a 455% increase compared to $1,529,632 for the year ended December 31, 2023[201]. - Net sales in the U.S. for 2024 were $8,397,570, up 451% from $1,522,821 in 2023[201]. - Net sales in Canada increased by 891%, reaching $67,519 in 2024 compared to $6,811 in 2023[201]. - The increase in net sales was attributed to higher sales of tonneau covers to private label partners, dealers, distributors, and end users via the online marketplace[202]. - Net sales from online retailers increased from $104,352 in 2023 to $4,930,822 in 2024, a growth of 4,625%[203]. - Distributor sales surged 6,120% from $6,811 in 2023 to $423,627 in 2024[203]. - Private label sales accounted for 37% of net sales, totaling $3,129,930 in 2024[203]. Production and Manufacturing - On November 22, 2024, the company announced a significant expansion in production capacity to meet increasing demand for the SOLIS Solar Tonneau Cover and AL4 Premium Tonneau Cover[40]. - The company has expanded its manufacturing capabilities in North America, utilizing a 152,847 square foot facility in West Seneca, New York, to enhance quality control and production efficiency[57]. - The company is strategically beginning domestic manufacturing operations in Western New York to mitigate risks associated with climate change and supply chain issues[186]. - The company is closely monitoring international shipping costs and is transitioning towards domestic manufacturing to offset higher costs[192]. Research and Development - The company is committed to ongoing research and development, focusing on innovative tonneau cover designs and portable energy storage solutions[80]. - Research and development expenses rose by $620,622, from $1,669,318 in 2023 to $2,289,940 in 2024[211]. - The company is actively researching ways to lower environmental impacts associated with battery recycling and precious metal demand[187]. Strategic Partnerships and Collaborations - A strategic partnership with KULR Technology Group was announced to advance battery technology and domestic manufacturing[38]. - The company has formed strategic partnerships, including a collaboration with Infineon Technologies AG to use GaN power semiconductors in its portable power stations[40]. Operational Risks and Challenges - The company relies on two suppliers for the production of its soft tonneau covers, which may hinder its ability to grow if there are delays or losses of these suppliers[110]. - The company has limited experience in domestic manufacturing, which could lead to higher production costs and compliance challenges[129]. - The company sources soft tonneau covers and some raw materials from China, making it vulnerable to changes in U.S. trade regulations and tariffs[136]. - The company may not be able to accurately estimate the demand for its tonneau covers, leading to inefficiencies in production and hindering profit generation[108]. - Continued uncertain economic conditions, including inflation and the risk of a global recession, could impair the company's ability to forecast and harm its business[103]. - The company anticipates that high interest rates may affect its ability to finance additional machinery and equipment purchases, impacting its operational capacity[102]. Cybersecurity and Insurance - The company has cybersecurity insurance coverage of $1,000,000 per annual policy period to mitigate risks associated with potential cyberattacks[107]. - The company acknowledges the increasing importance of cybersecurity and recognizes potential vulnerabilities due to the absence of a formalized cybersecurity framework[161]. - The company is evaluating its cybersecurity needs and intends to invest more resources into improving its cybersecurity posture[162]. Market Trends and Projections - The U.S. pickup truck market is projected to grow at a compound annual growth rate (CAGR) of 4.6% from 2023 to 2028, with approximately 61 million pickup trucks in operation as of Q3 2024[65]. - The tonneau cover market in the U.S. is estimated to be $2.56 billion in 2024, with an expected CAGR of 7.1% from 2025 to 2030[67]. - The electric pickup truck market in North America is anticipated to grow at a CAGR of 31.15% from 2024 to 2029, despite challenges related to charging infrastructure[66]. - The global Portable Power Station Market is expected to grow at a CAGR of 5.39% from 2024 to 2032[71]. Company Strategy and Future Outlook - The company aims to maximize market share by focusing on competitive pricing and exploring integration opportunities[69]. - The company is expanding its distribution network through wholesalers, private labels, and online retail channels, with plans for increased distribution in 2025[72]. - The company is focusing on establishing new business-to-consumer and business-to-business channels while enhancing customer support to improve satisfaction and product turnover[202]. - The company plans to lower customer acquisition costs throughout 2025 and is assembling a strong sales team to present products to various dealers, wholesalers, and retailers[202]. - The company may pursue acquisitions and strategic alliances to expand its product offerings and geographic presence, but integration risks exist[130].

Core Viewpoint - Worksport Ltd. is set to release its financial results for Q4 and the full year of 2024 on March 27, 2025, before market open, indicating a focus on transparency and investor engagement [1]. Financial Performance and Outlook - The management will provide insights into the company's recent financial performance and outlook for 2025 during a live webcast, emphasizing that the current market valuation may not reflect the company's underlying strengths [2][3]. - The company aims to achieve cash-flow positivity and significant growth in the upcoming year [2]. Company Overview and Product Development - Worksport designs, develops, and manufactures a variety of products including tonneau covers, solar integrations, portable power systems, and clean heating & cooling solutions, with a partnership with Hyundai for the SOLIS Solar cover [3]. - The hard-folding cover produced by Worksport is compatible with all major truck models and is gaining traction in the electric vehicle sector, aligning with the growing consumer shift towards clean energy solutions [3]. Investor Engagement - Investors, analysts, and media are encouraged to register for the live webcast scheduled for March 27, 2025, at 8:30 AM ET, which will include a management discussion and Q&A session [5].

West Seneca, New York, March 18, 2025 (GLOBE NEWSWIRE) -- Worksport Ltd. (NASDAQ: WKSP) (“Worksport” or the “Company”), a U.S. based manufacturer and innovator of hybrid and clean energy solutions for the light truck, overlanding, and global consumer goods sectors, today shares proactive business commentary and outlines key catalyst events projected for 2025. Corporate Valuation and Growth Outlook Stock Valuation: Worksport Ltd. holds more than 170 registered and pending patents and trademarks, maintains $6 ...

Core Viewpoint - Worksport Ltd. is implementing a 1-for-10 reverse stock split to increase its share price and comply with Nasdaq's minimum bid price requirement of $1.00, while maintaining its growth trajectory and preparing for the launch of new clean-energy products [2][3]. Group 1: Reverse Stock Split Details - The reverse stock split will take effect on March 18, 2025, converting every ten shares into one share, reducing the total outstanding shares from approximately 47,944,518 to about 4,794,452 [3]. - The reverse stock split was approved by the Board of Directors on February 25, 2025, and will not require shareholder approval as it does not increase the number of authorized shares [2][3]. Group 2: Company Growth and Product Launch - The CEO, Steven Rossi, expressed confidence in the company's steady growth and aims for cash flow positivity in 2025, alongside the upcoming launch of flagship products, COR and SOLIS [2]. - Worksport is focused on clean energy solutions and has partnerships, including one with Hyundai for the SOLIS Solar cover, indicating a strategic direction towards sustainable products [4]. Group 3: Company Overview - Worksport Ltd. designs and manufactures a variety of products, including tonneau covers and portable power systems, and is capitalizing on the shift towards clean energy integrations [4]. - The company is gaining traction with newer truck makers, including those in the electric vehicle sector, showcasing its adaptability to market trends [4].

Worksport Highlights Strong Reception Of Terravis Energy’s AetherLux Product Reveal, And Shares Additional Testing Data West Seneca, New York, March 06, 2025 (GLOBE NEWSWIRE) -- Worksport Ltd. (NASDAQ: WKSP) (“Worksport”), a U.S. based manufacturer and innovator of hybrid and clean energy solutions for the light truck, overlanding, and global consumer goods sectors, is pleased to provide an update on its subsidiary, Terravis Energy, Inc. (“TVE” or the “Company”). TVE proudly announces a strong positive rece ...

Core Insights - Worksport Ltd. has expanded its dealer network by 30% in the first two months of 2025 and has launched its AL4 Premium Tonneau Cover for direct purchase online [1][2][4] - The company has increased sales from $1.5 million in 2023 to a run rate of approximately $1 million per month in 2024, with expectations that the AL4 cover will be its best-selling product in 2025 [3][5] Sales and Product Launch - The AL4 Tonneau Cover features premium materials and design for enhanced durability and user-friendliness, with five models expected to be available by the end of February 2025 [2][4] - The company plans to introduce new models to the AL4 lineup every month, enhancing its direct-to-consumer sales strategy [2][5] Future Growth and Innovations - Worksport aims to leverage the success of the AL4 cover to support future product launches, including the SOLIS solar tonneau cover and the COR portable nano-grid system, which are planned for later in the year [4][5] - The expansion of the dealer network and the introduction of the AL4 cover are seen as critical steps in bolstering the company's revenue growth and shareholder value [5]