Core Insights - Worksport Ltd. has achieved ISO 9001:2015 certification for its U.S. production facility, enhancing its manufacturing credentials and opening new opportunities with major auto OEMs and distributors [1][2][5] Strategic Impact & Path Forward - The certification is viewed as a catalyst for Worksport's expansion in both domestic and international supply chains, allowing the company to pursue collaborations with top-tier OEMs and national retailers [2][7] - The company aims to explore OEM integrations for its tonneau covers and solar-enabled SOLIS system, positioning itself for growth within the multi-billion-dollar global auto manufacturing ecosystem [3][4] Innovation Pipeline - Worksport's innovative products, including the SOLIS Solar Tonneau Cover and the COR Portable Energy System, are expected to begin shipping later this year, with anticipated high-margin revenue growth and expanded market reach beyond traditional automotive accessories [4][6] Certification Details - The ISO certification was issued by Bureau Veritas Certification Holding SAS – UK Branch, following a rigorous audit, and is valid from April 2025 to April 2028, contingent upon continued compliance [5] Market Opportunities - The certification is expected to unlock supply opportunities with major automotive brands such as Toyota, GM, Ford, and Honda, while strengthening Worksport's reputation for premium, American-made products [7]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 reached $2,240,000, a 337% increase compared to $512,000 in Q1 2024, although slightly lower than Q4 2024 due to seasonal trends [6][8][11] - Gross profit rose to $396,000, achieving a gross margin of nearly 18%, up from 7% in the same quarter last year and 11% from Q4 2024 [8][9] - Operating loss for Q1 was approximately $4,460,000, compared to $3,710,000 in the prior year period, reflecting costs associated with scaling operations and strategic investments [11][12] - Cash and cash equivalents stood at $5,080,000, slightly up from $4,880,000 at the end of 2024, with working capital improving to $7,940,000 [12][13] Business Line Data and Key Metrics Changes - The AL4 product line was launched in late Q1 2025, contributing significantly to revenue growth and improving gross margins [6][17] - The company is targeting to produce over 200 units per day by the end of Q3 2025, which could represent upwards of $45,000,000 in annual top-line revenues [18] - The reseller network grew to 151 active dealers, a 64% increase from 92 at the end of 2024, with business-to-business sales growing nearly 70% from February [19][20] Market Data and Key Metrics Changes - The company anticipates significant growth in the B2B market, with over 17,000 addressable dealers nationwide [20] - The upcoming product launches, including the HD3 hard folding tunnel cover and the Solis solar integrated tunnel cover, are expected to drive additional revenue growth [21][23] Company Strategy and Development Direction - The company is focusing on scaling sales of current products, launching new products, and maintaining operational excellence to improve margins [39] - Worksport plans to shift towards higher-margin branded products and phase out lower-margin private label offerings [35][36] - The company is committed to manufacturing in the USA to mitigate tariff risks and support local jobs [30][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving substantial year-over-year growth by the end of 2025, despite a net loss in Q1 [6][11] - The company is targeting operational cash flow breakeven in Q4 2025 or early Q1 2026, with expectations for continued margin improvement [12][35] - Management remains optimistic about revenue growth driven by the core tonneau cover business and new product introductions [32][34] Other Important Information - The company holds a robust patent portfolio of over 70 approved, registered, and pending patents and trademarks [28] - Worksport's subsidiary, TerraVise Energy, has developed a groundbreaking heat pump technology that is generating substantial global interest [26][27] Q&A Session Summary Question: Have you made sales of the AL4 product this quarter? - Yes, the AL4 is selling very well, and the company is running low on stock [44][45] Question: What are the raw materials that are within the inventory budget? - The inventory primarily consists of domestically sourced aluminum products, with about 60-70% of the bill of materials being aluminum [46][47] Question: What do you have in place currently for distribution with Core and Solis? - Initially, the distribution will focus on direct consumer sales to gauge feedback before expanding to the existing dealer network [51][53] Question: Are the new products being launched expected to have higher gross margins? - Yes, the new products will benefit from both economies of scale and higher pricing strategies, contributing to margin improvements [54][56] Question: Can you clarify on the guidance for 2025? - The guidance for 2025 remains at $20 to $25 million, excluding projections for Solis and Core sales, which will be updated as geopolitical conditions stabilize [61][64]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 reached $2,240,000, a 337% increase compared to $512,000 in Q1 2024, although slightly lower than Q4 2024 due to seasonal trends [6][8] - Gross profit rose to $396,000, achieving a gross margin of nearly 18%, up from 7% in the same quarter last year and 11% from Q4 2024 [8][9] - Operating loss for Q1 was approximately $4,460,000, compared to $3,710,000 in the prior year period, reflecting costs associated with scaling operations and strategic investments [11][12] - Cash and cash equivalents stood at $5,080,000, slightly up from $4,880,000 at the end of 2024, with working capital improving to $7,940,000 [12][13] Business Line Data and Key Metrics Changes - The AL4 product line was launched in late Q1 2025, contributing significantly to revenue growth and improving gross margins [6][16] - The company is targeting to produce over 200 units per day by the end of Q3 2025, which could represent upwards of $45,000,000 in annual top-line revenues [18] - The reseller network grew to 151 active dealers, a 64% increase from 92 at the end of the previous year, with business-to-business sales growing nearly 70% from February [19][20] Market Data and Key Metrics Changes - The company anticipates significant growth in the B2B market, with over 17,000 addressable dealers nationwide [20] - The upcoming product launches, including the HD3 hard folding tunnel cover and the Solis solar integrated tunnel cover, are expected to drive additional revenue growth [21][23] Company Strategy and Development Direction - The strategic focus for 2025 includes scaling sales of current products, launching new product lines, and maintaining operational excellence [38] - The company aims to achieve cash flow breakeven by Q4 2025 or early Q1 2026, with a target gross margin of 25% to 30% later this year [11][34] - Worksport plans to phase out lower-margin private label offerings to improve overall gross margins [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving substantial year-over-year growth by the end of 2025, despite the net loss reported [6][11] - The company remains optimistic about revenue growth driven by the core tonneau cover business and new product introductions, targeting full-year revenues in the range of $20 to $25 million [31][32] - Management highlighted the importance of maintaining sufficient cash reserves and access to capital to fund growth initiatives while pursuing profitability [35][36] Other Important Information - The company has developed a robust patent portfolio of over 70 approved, registered, and pending patents and trademarks [27] - Worksport's subsidiary, TerraVise Energy, has developed a groundbreaking cold climate heat pump system, which is generating substantial global interest [25][26] Q&A Session Summary Question: Have you made sales of the AL4 product this quarter? - Yes, the AL4 is selling very well, and the company is running low on stock [42][43] Question: What are the raw materials that are within the inventory budget? - The majority of the inventory comprises aluminum products, with about 60-70% of the bill of materials consisting of domestically sourced aluminum [44][45] Question: What do you have in place currently for distribution with Core and Solis? - Initially, the distribution will focus on direct consumer sales to gauge feedback before expanding to the existing dealer network [49][50] Question: Are the new products being launched expected to have higher gross margins? - Yes, the new products will benefit from both economies of scale and higher gross margins due to their premium positioning [52][53] Question: Can you clarify on the guidance for 2025? - The guidance for 2025 is focused on traditional tonneau covers, with Solis and Core sales not included in the current projections [59][60]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For Quarterly Period Ended: March 31, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File No. 001-40681 Worksport Ltd. (Exact Name of Small Business Issuer as specified in its charter) | Nevada | 35-2696895 | | --- | --- | | (State or other jurisdiction of | (I.R.S. Employer | | incorp ...

Core Insights - Worksport Ltd. has reported a significant increase in revenue and is targeting cash flow positive operations by year-end 2025 [1][3][6] Financial Performance - For Q1 2025, Worksport reported net sales of $2.24 million, a 337% increase from $512,000 in Q1 2024 [6] - Gross margin improved to approximately 18%, up from 7% in Q1 2024 and 11% in Q4 2024, with a target of 25-30% gross margins by year-end 2025 [6][9] - The company recorded a net loss of $4.46 million for Q1 2025, compared to a net loss of $3.71 million in Q1 2024 [9] Revenue Guidance - Worksport is projecting full-year revenue guidance of $20 million to $25 million for 2025, indicating a 2.5x to 3x increase over 2024 results [3][6] - The company anticipates strong sequential growth in Q2 2025, driven by the launch of its high-margin AL4 cover [6] Working Capital and Assets - As of the end of Q1 2025, Worksport reported a working capital balance of $7.94 million, with $5.1 million in cash availability [6][8] - Total assets increased to $26.66 million as of March 31, 2025, compared to $25.74 million at the end of 2024 [8] Future Outlook - The company aims to achieve cash flow breakeven by year-end 2025, supported by a stronger margin profile and operational leverage [6] - Preliminary outlook for 2026 includes sustained double-digit revenue growth and first full-year profitability, driven by expanded product availability and market share [6]

Core Viewpoint - Worksport Ltd. is set to release its financial results for Q1 fiscal year 2025 on May 15, 2025, after market closes, indicating a focus on transparency and investor engagement [1] Financial Performance and Outlook - The company will provide insights into its recent financial performance and outlook for 2025 during a live webcast, emphasizing that its current market valuation may not reflect its underlying strengths [2] - Management is focused on achieving cash-flow positivity and driving significant growth in the coming year [2] Strategic Initiatives and Product Development - Participants in the webcast will gain insights into Worksport's strategic initiatives, product development roadmap, and overall financial trajectory [3] - 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] Market Position and Consumer Trends - The company aims to capitalize on the growing consumer shift towards clean energy integrations with proprietary solar solutions and mobile energy storage systems [4] - Worksport's hard-folding cover is compatible with all major truck models and is gaining traction with newer truck makers, including those in the electric vehicle sector [4]

Core Viewpoint - Worksport Ltd. is participating in the D. Boral Capital Inaugural Global Conference on May 14, 2025, in New York City, which is expected to attract investors and feature keynote speaker Kevin O'Leary [1][2]. Company Overview - Worksport Ltd. (NASDAQ: WKSP) designs, develops, manufactures, and owns intellectual property for various products, including tonneau covers, solar integrations, portable power systems, and clean heating & cooling solutions [3]. - The company has a partnership with Hyundai for the SOLIS Solar cover and offers a hard-folding cover compatible with all major truck models, gaining traction in the electric vehicle sector [3]. - Worksport aims to leverage the growing consumer shift towards clean energy with its proprietary solar solutions, mobile energy storage systems, and Cold-Climate Heat Pump technology [3]. D. Boral Capital Overview - D. Boral Capital LLC is an investment bank based in New York, providing advisory and financing solutions to middle market and emerging growth companies [4]. - The firm has a strong track record, having aggregated over $25 billion in capital across approximately 350 transactions [5].

Core Viewpoint - Worksport Ltd. has formed a strategic partnership with Patriot Automotive Technologies to enhance its business-to-business (B2B) distribution network, aiming for significant growth in annual recurring revenue through the sale of its tonneau covers across Patriot's extensive dealer network of over 200 locations in the U.S. [1][2][11] Strategic Partnership Highlights - The partnership will enable Patriot to distribute Worksport's innovative tonneau covers, including the popular AL4 premium cover, marking a significant step in Worksport's B2B growth strategy [2][11] - This collaboration is projected to evolve into a multi-million dollar annually recurring revenue source within 2025, providing Worksport with stable cash flows and enhancing Patriot's portfolio of aftermarket products [11] Continued Growth and Future Partnerships - The partnership with Patriot Automotive Technologies is part of Worksport's strategy to aggressively grow its U.S.-based distribution channels, reinforcing its position as a premier supplier of U.S.-made automotive accessories [6][11] - Worksport is actively seeking additional strategic partnerships and distribution channels to leverage its commitment to quality and innovation [6] Looking Ahead - Worksport anticipates providing updates on further partnerships and key business developments, including the launch of its clean-tech products, such as the SOLIS Solar Tonneau Cover and the COR Portable Energy System [8]

Core Insights - Worksport Ltd. has reported significant growth in its dealer network and B2B sales, indicating strong market adoption of its U.S.-made AL4 tonneau cover [2][4][7] - The company emphasizes the advantages of manufacturing in the U.S., including mitigating tariff risks and supporting American jobs, which resonates well with dealers [7][8] Dealer Network and Sales Growth - The dealer network has expanded by 64%, increasing from 92 dealers at the end of 2024 to 151 active dealers [7] - March 2025 B2B sales grew nearly 70% compared to February, highlighting robust demand for the AL4 cover [7] - Worksport added 35 new dealer accounts in March, following 24 additions in January and February, showcasing a strong growth trajectory [7] Strategic Initiatives - The company plans to further expand its dealer network by partnering with distributors and purchasing groups that prioritize American-made quality [5] - Worksport aims to launch new products, including the SOLIS solar-integrated tonneau cover and COR modular portable energy system, to capture additional revenue streams in sustainable power solutions [12] - Management is focused on achieving cash-flow positivity through B2B growth, direct-to-consumer sales, and disciplined cost control [12]

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 ...