Core Insights - Worksport Ltd. has launched its next-generation Nano-Grid power system, combining the COR™ portable battery and SOLIS™ Truck-Mounted Folding Solar Array, marking a significant commercial milestone for the company [1][2][10] Product Launch and Market Potential - The launch represents years of investment in engineering and market preparation, with projected revenues of $2-3 million for the initial 2025 launch and potential for 8-figure growth in 2026 [2] - The Nano-Grid system allows over 60 million US pickup trucks to generate, store, and utilize power, making it the first commercially available system of its kind [3] Product Specifications - The COR™ Portable Battery System offers high-capacity modular energy storage ranging from 1 kWh to 6 kWh, designed for rugged use and fast charging [6] - Each COR Battery provides approximately 1 kWh of usable energy, with the COR HUB delivering 1,800 W continuous AC output and up to 2,000 W boost [7] Commercial Strategy - To validate the supply chain and seed launch demand, Worksport placed an opening purchase order exceeding $1 million for 900 COR units and 600 additional batteries with a Tier 1 global battery manufacturer [9] - The SOLIS will launch with over 10 models initially, framing this as a foundational step toward scaling production and revenue [9] Customer Demand and Future Outlook - The CEO emphasized the demand for a clean, quiet alternative to gas generators, positioning the SOLIS and COR as a portable nano-grid solution that can scale with user needs [10]

Core Insights - Worksport (WKSP) has launched its new HD3 heavy-duty tonneau cover, which is now available through its expanding business-to-business dealer network [1] - Production of the HD3 commenced in mid-October, following a prior announcement regarding the start of manufacturing [1] - The HD3 is priced with a minimum advertised price starting at $869 and is the latest addition to Worksport's U.S.-manufactured hard-cover lineup [1] Product Features - The HD3 is designed for longevity, protection, and long-term durability, incorporating upgraded materials and reinforced perimeter seals [1] - It features strengthened panel construction and enhanced heavy-duty latching systems, making it suitable for commercial and high-use customers [1] - The design builds on the established AL3 architecture while providing a more rugged, professional-grade solution [1]

Core Insights - Worksport Ltd. has launched its new HD3 heavy-duty tonneau cover, which is now available through its expanding B2B dealer network, with production having started in mid-October [1][2][3] - The HD3 cover is priced starting at $869 and is designed for durability and protection, targeting commercial and high-use customers [2][4] - The company plans to focus on dealer sales for the HD3, while also preparing for direct-to-consumer sales in December [3][4] - Worksport's clean-tech products, COR and SOLIS, will open for initial orders on November 28, representing a new revenue stream for the company [5][6] - The company emphasizes that the HD3, SOLIS, and COR products are the result of years of engineering investment and are expected to drive revenue growth and market presence [7][8] Product Details - The HD3 tonneau cover features upgraded materials, reinforced seals, and heavy-duty latching systems, enhancing its ruggedness compared to previous models [2][4] - SOLIS is a solar-integrated truck bed system designed for renewable power applications, while COR is a modular energy storage system for various utility needs [7][8] Strategic Focus - The introduction of the HD3 is seen as a strategic move to enhance Worksport's product offerings in both B2B and B2C channels, aiming for unit sales growth and channel diversification [4][6] - The company is committed to advancing its manufacturing capabilities and expanding its product portfolio in clean energy and automotive accessories [8]

Financial Data and Key Metrics Changes - Net sales for Q3 2025 reached $5 million, representing a 61% year-over-year growth and a 22% sequential growth from Q2 2025's $4.1 million [5] - Gross margin expanded to 31.3% in Q3 2025, up from 7.9% in Q3 2024 and 26.4% in Q2 2025, indicating improved operational efficiencies and product mix [5][8] - The net loss for Q3 2025 was $4.9 million, reflecting ongoing investments in product offerings and manufacturing scaling [5][6] - Cash position at the end of Q3 2025 was $3.8 million, with an additional $3.3 million available on the line of credit, and total indebtedness reduced to $2.9 million from $5.3 million at year-end 2024 [6][12] Business Line Data and Key Metrics Changes - The U.S.-made tonneau cover production led to Q3 net sales of $5 million, up from $3.1 million a year ago, with year-to-date sales at $11.4 million, more than double the $5.6 million for the same period in 2024 [7][8] - The AL4 hardcover contributed significantly to growth, supported by expanded relationships with national distributors and retail chains [8] - Operating expenses in Q3 totaled $6.4 million, up from $4.2 million in Q3 2024, primarily due to growth investments and marketing costs [9] Market Data and Key Metrics Changes - The tonneau cover market remains healthy, valued at over $3 billion, with a shift towards smaller trucks and higher profit applications benefiting the company [32][33] - The company anticipates strong growth in 2026, capitalizing on market conditions and its domestic manufacturing advantage [33] Company Strategy and Development Direction - The company aims to build a high-margin, scalable platform in truck accessories and clean tech-enabled power solutions, with a focus on transitioning from investment mode to long-term profitability by 2026 [5][6][29] - Upcoming product launches, including the HD3 tonneau cover and the Solis and Core systems, are expected to drive revenue growth and enhance margins [13][20] - The company is strategically positioned to leverage its existing distribution channels for new product lines while maintaining a focus on operational efficiency and cost discipline [17][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand for the Solis and Core products, indicating potential for significant market traction despite challenges in marketing new products [37][39] - The company is focused on achieving operational cash flow positivity by Q1 2026, supported by stable gross margins and increased sales [27][28] - Management acknowledged risks related to ongoing net losses, reliance on external capital, and tariff volatility, but remains confident in managing these challenges [24][25] Other Important Information - The company completed a Regulation A offering in October 2025, contributing to its financing activities [11] - The Solis and Core products are set for initial orders starting November 28, 2025, with expected delivery in late December or early January 2026 [20][46] Q&A Session Summary Question: Can you talk about the tonneau market for tonneau covers in general in the United States? - The company is seeing healthy market conditions with a shift towards smaller trucks, which allows for agile production adjustments [32][33] Question: Can you leverage your existing distribution for Solis and Core? - The company plans to start with direct-to-consumer sales for Solis and Core to gather feedback before expanding distribution [34] Question: What is the visibility on demand for Solis and Core? - Demand for Solis is expected to exceed initial expectations, while the Core has a broader market appeal, potentially leading to significant growth [37][39] Question: What is driving the improvement in margins? - The majority of margin improvements are attributed to overhead absorption and operational efficiencies rather than cost-cutting measures [41][42] Question: When can customers expect to receive the Solis and Core products? - The Solis will have a lead time of about two weeks, while the Core is expected to ship in late December [45][46] Question: Are there plans for international market expansion? - The company is focusing on Latin America first, with future plans for the EU and Middle East markets for the Core products [47][48]

Financial Data and Key Metrics Changes - Net sales for Q3 2025 reached $5 million, representing a 61% year-over-year growth and a 22% sequential growth from Q2 2025's $4.1 million [5][7] - Gross margin expanded to 31.3% in Q3 2025, up from 7.9% in Q3 2024 and 26.4% in Q2 2025, indicating improved operational efficiencies and product mix [5][8] - The net loss for the quarter was $4.9 million, reflecting ongoing investments in product offerings and manufacturing scaling [5][6] - Cash position at the end of the quarter was $3.8 million, with an additional $3.3 million available on the line of credit, and total indebtedness reduced to $2.9 million from $5.3 million at year-end 2024 [6][11] Business Line Data and Key Metrics Changes - The U.S.-made tonneau cover production led to significant growth, with Q3 net sales reaching $5 million, up from $3.1 million a year ago [7][8] - The AL4 hardcover contributed to strong sales growth, supported by expanded relationships with national distributors and retail chains [8][9] - Year-to-date sales reached $11.4 million, more than double the $5.6 million for the same period in 2024 [7] Market Data and Key Metrics Changes - The tonneau cover market remains healthy, valued at over $3 billion, with a shift towards smaller trucks and higher profit applications benefiting the company [32][33] - The company anticipates a strong growth trajectory in 2026, capitalizing on market conditions and demand shifts [33] Company Strategy and Development Direction - The company aims to build a high-margin, scalable platform in truck accessories and clean tech-enabled power solutions, with a focus on operational cash flow positivity and profitability by 2026 [5][12] - Upcoming product launches, including the HD3 tonneau cover and the Solis and Core systems, are expected to drive revenue growth and enhance margins [13][20] - The company is transitioning R&D focus from foundational build to commercial optimization, aiming to enhance margins and efficiencies post-launch [22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand for the Solis and Core products, indicating potential for significant market traction [37][39] - The company is confident in its ability to manage tariff-related cost pressures while advancing towards cash flow positivity and maintaining profitability targets for 2026 [25][27] - The operational model prioritizes maintaining gross margins above 35% and improving working capital turns [24][28] Other Important Information - The company completed a Regulation A offering in October 2025, contributing to financing activities [10][11] - The Solis and Core products are set for initial orders starting November 28, 2025, with expected delivery in late December or early January 2026 [20][46] Q&A Session Summary Question: Can you talk about the tonneau market for tonneau covers in general in the United States? - The market remains healthy, with a shift towards smaller trucks and higher profit applications, indicating a strong outlook for 2026 [32][33] Question: Can you leverage your existing distribution for Solis and Core? - The company plans to start online direct-to-consumer sales for initial feedback, with significant interest from dealers [34] Question: What is the visibility on demand for Solis and Core? - Demand for Solis is expected to exceed initial expectations, while the Core has a broader market appeal [37][39] Question: What is driving the improvement in margins? - The majority of margin improvement is attributed to overhead absorption and operational efficiencies, with significant reductions in man-hours per unit produced [41][42] Question: When can customers expect to receive the Solis and Core products? - The Solis is expected to have a lead time of one to two weeks, while the Core is anticipated to ship in late December [45][46] Question: Are there plans for international market expansion? - The company is focusing on Latin America first, with future plans for the European Union and Middle East markets [47] Question: When do you expect the heat pump to go into production? - Production intent for the Aetherlux heat pump is underway, with timelines dependent on certification and tooling [49][50]

Financial Data and Key Metrics Changes - Net sales for Q3 2025 reached $5 million, representing a 61% year-over-year growth and a 22% sequential growth from Q2 2025's $4.1 million [5] - Gross margin expanded to 31.3% in Q3 2025, up from 7.9% in Q3 2024 and 26.4% in Q2 2025, indicating improved operational efficiencies and product mix [5][8] - The net loss for the quarter was $4.9 million, reflecting ongoing investments in product offerings and manufacturing scaling [5] - Cash position at the end of the quarter was $3.8 million, with total working capital of $6.3 million and total indebtedness reduced to $2.9 million from $5.3 million at year-end 2024 [6][12] Business Line Data and Key Metrics Changes - The U.S.-made tonneau cover production led to significant growth, with Q3 net sales reaching $5 million, up from $3.1 million a year ago [6] - The AL4 hardcover contributed to strong growth, supported by expanded relationships with national distributors and retail chains [7] - Year-to-date sales reached $11.4 million, more than double the $5.6 million for the same period in 2024 [6] Market Data and Key Metrics Changes - The tonneau cover market remains healthy, with a shift towards smaller trucks and higher profit applications, maintaining a market size of over $3 billion [34][35] - The company is strategically positioned to leverage its domestic manufacturing advantage amidst tariff challenges, which serve as a competitive tailwind [17] Company Strategy and Development Direction - The company aims to build a high-margin, scalable platform in truck accessories and clean tech-enabled power solutions, with a focus on transitioning from investment mode to long-term profitability by 2026 [5][30] - Upcoming product launches, including the HD3 tonneau cover and the Solis and Core systems, are expected to drive revenue growth and enhance margins [19][20] - The company plans to optimize R&D efforts in 2026, focusing on commercial optimization and enhancing product margins [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand for the Solis and Core products, anticipating significant market interest and potential for growth [42][45] - The company expects to achieve operational cash flow positivity in Q1 2026, driven by stable gross margins and increased sales [27] - Management acknowledged risks related to ongoing net losses and reliance on external capital but emphasized a clear path towards profitability [24][25] Other Important Information - The company completed a Regulation A offering in October 2025, contributing to its financing activities [10] - The Solis and Core products are set for initial orders starting November 28, 2025, with expected delivery in late December or early January 2026 [20][53] Q&A Session Summary Question: Can you talk about the tonneau market for tonneau covers in general in the United States? - The market remains healthy with a shift towards smaller trucks, and the company is taking market share while maintaining a market size of over $3 billion [34][35] Question: Can you leverage your existing distribution for Solis and Core? - The company plans to start with direct-to-consumer sales for feedback, with significant interest from dealers following a recent trade show [36] Question: What is the visibility on demand for Solis and Core? - Demand for Solis is expected to exceed initial expectations, while the Core has a broader market potential [42][45] Question: What is driving the improvement in margins? - The majority of margin improvement is attributed to overhead absorption and operational efficiencies, with significant reductions in man-hours per unit produced [46] Question: Are margins capped at around 35%? - There is potential for margins to exceed 35% as brand recognition increases and operational efficiencies improve [48] Question: When can customers expect to receive the Solis and Core products? - The Solis is expected to have a lead time of one to two weeks, while the Core is anticipated to ship in late December [52][53] Question: Are there plans for international market expansion? - The company is focusing on Latin America first, with future plans for the European Union and Middle East markets [55] Question: When do you expect the heat pump to go into production? - Production timelines are being established, with a focus on rapid development and certification processes [57][58]

Financial Performance - For the three months ended September 30, 2025, net sales increased by 61% to $5.0 million compared to $3.1 million in the same period in 2024[99]. - Net sales for the nine months ended September 30, 2025, were $11,358,835, a 104% increase compared to $5,556,535 for the same period in 2024[127]. - Net loss for the nine months ended September 30, 2025, was $13,123,627, an 11% increase from a net loss of $11,862,973 for the same period in 2024[135]. Cost and Expenses - Cost of sales increased by 67%, from $4,975,277 for the nine months ended September 30, 2024, to $8,311,718 for the same period in 2025, with a decrease in cost of sales as a percentage of sales from 90% to 73%[131]. - Operating expenses rose by $3,693,990, from $12,036,688 in 2024 to $15,730,678 in 2025, driven by increased sales and marketing expenses[133]. - Research and development expenses decreased by $836,382, from $1,811,911 in 2024 to $975,529 in 2025, due to the release of the AL4 product line[133]. - Sales and marketing expenses increased by $3,330,492, from $1,206,807 in 2024 to $4,537,299 in 2025, primarily for marketing campaigns supporting investor relations and the AL4 product line[133]. Cash Flow and Financial Position - As of September 30, 2025, the company had cash and cash equivalents of $3,761,690, down from $4,883,099 as of December 31, 2024[136]. - Cash decreased from $4,883,099 at December 31, 2024, to $3,761,690 at September 30, 2025, a decrease of $1,121,409 or 23% due to debt repayments[142]. - Net cash used in operating activities for the nine months ended September 30, 2025, was $11,190,182, compared to $7,959,212 in 2024, driven by the shift to hard tonneau cover production[143]. - Net cash used in investing activities for the nine months ended September 30, 2025, was $1,067,257, primarily for a deposit on new manufacturing equipment[147]. - Net cash provided by financing activities for the nine months ended September 30, 2025, was $11,136,030, an increase from $6,951,879 in 2024, mainly from net proceeds from offerings[148]. - The company has raised net proceeds of $13,358,414 from public and private offerings during the nine months ended September 30, 2025[138]. - The company has an accumulated deficit of $77,617,726 as of September 30, 2025, compared to $64,476,966 as of December 31, 2024[136]. Production and Operations - The company expanded its distribution network to six national distributors, including two new partnerships in the last quarter[99]. - The U.S. production facilities achieved the highest monthly production volume in the company's history[99]. - The company doubled its R&D footprint with a new lease for a larger facility in Ozark, Missouri, to support upcoming product lines[119]. - Worksport announced a 42% increase in national dealer partnerships over the preceding quarter[119]. - The transition to domestic manufacturing is expected to offset higher international shipping costs and improve supply chain resilience[109]. Market and Environmental Considerations - The Worksport SOLIS and COR products are positioned to capitalize on the rising popularity of electric vehicles, targeting consumers interested in clean energy solutions[98]. - The company is actively researching ways to mitigate the environmental impacts of battery recycling and precious metal demand[104]. - The company is closely monitoring the regulatory environment for electric vehicles, which may impact future sales and operations[100]. Balance Sheet Items - Accounts receivable increased by $472,485 at September 30, 2025, attributed to the development of the business-to-business sales channel[144]. - Inventory increased by $1,645,437 at September 30, 2025, as a result of the maturation of the production process[144]. - Prepaid expenses and deposits increased by $865,634 at September 30, 2025, primarily for future strategic marketing and raw materials deposits[145]. - Accounts payable and accrued liabilities increased by $1,477,537 at September 30, 2025, due to an increase in raw materials order volume[146]. Other Financial Information - The company reported net other expenses of $440,066 for the nine months ended September 30, 2025, compared to $407,543 for the same period in 2024[134]. - The company did not have any material off-balance sheet arrangements that could materially affect its financial condition[149]. - As a "smaller reporting company," the company is not required to provide certain market risk disclosures[150].

Core Insights - Worksport Ltd. anticipates significant revenue growth in 2026, driven by projected sales of $27 million to $35 million from tonneau covers, alongside contributions from new product launches like the SOLIS solar-integrated tonneau cover and COR battery system [1][6]. Financial Performance - For Q3 2025, Worksport reported net sales of $5.0 million, marking a 61% increase year-over-year and a 22% increase sequentially, with a gross margin of 31.3% [1][6]. - Year-to-date (YTD) sales reached $11.4 million, more than double the sales from the same period last year, with a gross margin improvement from 7.9% in Q3 2024 to 31.3% in Q3 2025 [6][10]. Operational Efficiency - The company has achieved a gross margin increase of over 2300 basis points in nine months, with operating leverage becoming apparent as revenue grew nearly 60% year-over-year while core expenses increased only about 20% [2][6]. - Management aims for a gross margin of approximately 35% or higher by the end of 2025, supported by operational efficiencies and a higher-value product mix [6][10]. Product Launches and Market Expansion - The HD3 Heavy-Duty Tonneau is in production, with initial B2B sales expected in November 2025, expanding Worksport's offerings into the commercial and fleet markets [7]. - Orders for the SOLIS and COR products will open on November 28, 2025, with significant near-term revenue opportunities projected from these launches [7][10]. Future Outlook - The company projects a base case of $27 million to $35 million in U.S. tonneau sales for 2026, with additional revenue expected from the SOLIS and COR products, indicating a clear path to profitability [6][10]. - Worksport's balance sheet has strengthened, with total debt reduced and revolving capacity preserved for operational flexibility [6][10].

Core Insights - Worksport Ltd. is set to launch its SOLIS truck-mounted folding solar array on November 28, 2025, aimed at enhancing clean energy solutions for various applications [2][4][9] - The SOLIS system can generate up to 490 watts of solar power, transforming truck beds into mobile clean energy power plants [3][5] - The SOLIS product line will cater to a range of popular truck models, with initial pricing starting at $1,999 [6][9] Product Overview - SOLIS integrates high-efficiency solar panels to charge portable energy systems, specifically designed to work with the Worksport COR portable power system [3][6] - The SOLIS system, when paired with the COR, can provide 2000W of AC power, suitable for various tools and appliances [6] - The initial production run will include several hundred units across multiple truck bed configurations, targeting light-duty and mid-size segments [4][5] Market Potential - The SOLIS and COR combination is expected to open multiple growth avenues for Worksport, including camping, commercial fleets, and emergency power applications [8] - The company aims to establish a high-margin, recurring revenue model around solar-integrated truck accessories and portable power systems [8] - Worksport is actively exploring partnerships with OEMs, particularly in the electric vehicle sector, to enhance its market reach [11]

Core Insights - Worksport Ltd. is set to report its Q3 2025 financial results on November 13, 2025, with a focus on recent progress and future outlook [1][2] - The company is at an inflection point, aiming for cash flow positivity and profitability in the upcoming quarters, supported by increasing margins and record revenues [2] Financial Performance - The earnings call will provide insights into Worksport's recent financial performance and outlook for 2026 [2] - Management is excited to discuss the progress made in Q3 and the launch of two flagship clean energy products later this month [2] Product and Market Focus - Worksport designs and manufactures a variety of products, including tonneau covers, solar integrations, and portable power systems, with a partnership with Hyundai for the SOLIS Solar cover [4] - The company is capitalizing on the shift towards clean energy, focusing on proprietary solar solutions and mobile energy storage systems [4]