Financial Performance - Revenue reached $4.10 million in Q2 2025, a 113% year-over-year increase from $1.92 million in Q2 2024 [11] - Sequential QoQ revenue growth was 83% from Q1 2025 [1] - Gross profit was $1.08 million, resulting in a gross margin of 26.4%, up from 15.4% in Q2 last year [16] - Operating loss improved to $(3.62) million, compared to $(4.26) million in Q1 [20] - Operating cash usage improved to $(3.10) million in Q2 from $(3.84) million in Q1, a 19% reduction [23] Operational Highlights - Long-term debt declined to $2.09 million [34] - Inventory remained stable at $5.88 million [25, 28] - The company is targeting 200 units/day production by late Q3, compared to approximately 50 units/day at the start of 2025 [46] Growth Initiatives - The company estimates its B2B network can support over $21.5 million in annual repeatable revenue [41] - Over 50% of total unit volumes in Q2 came from direct online sales [42] - The company expects to increase to $40M ARR by year end [12] Future Outlook - The company reaffirms its full-year 2025 revenue target of $20 million+ [70] - The company believes AetherLux could have a meaningful impact on the company's 2026 balance sheet, supported by its position in the $123B global market [62]

Core Viewpoint - Worksport Ltd. reaffirms its revenue target of at least $20 million for 2025 and highlights a clear path towards achieving operational cash flow positivity in the near term [1][6]. Financial Performance - In Q2 2025, Worksport achieved record net sales of $4.10 million, representing a 114% increase year-over-year and an 83% increase sequentially [2]. - Gross margin improved by 8.7 percentage points to 26.4%, leading to a 173% increase in gross profit to $1.08 million [2]. - Operating loss decreased by 15% quarter-over-quarter to $(3.62) million, while net loss narrowed by approximately 16% to $(3.73) million [2][6]. - Operating cash use improved by 19% to $(3.10) million, with total liquidity at approximately $6.1 million [2][6]. Sales and Dealer Network - The company set three consecutive monthly sales records in Q2, with April at $1.22 million, May at $1.28 million, and June at $1.60 million, leading to an annualized run rate of $19.2 million [3]. - Year-to-date, Worksport has added over 450 new dealer accounts, with a network capable of generating approximately $21.5 million in annual repeatable revenue [3]. Operational Highlights - Q3 2025 output is expected to be significantly stronger than Q2, with July output averaging 115-130 units per day and targeting ~200 units per day by late Q3 [8]. - The innovation pipeline includes the upcoming launches of HD3, SOLIS, and COR products, with SOLIS and COR expected to contribute to revenue in 2026 [8][9]. Management Commentary - CEO Steven Rossi emphasized that the company is executing towards operational cash-flow positivity and preparing for product launches, believing that the tonneau business alone can lead to profitability in 2026 [5]. - CFO Michael Johnston highlighted strong sequential leverage, with expectations for gross margin to approach 30% by year-end and targeting operating cash-flow breakeven by late Q4 2025 or early Q1 2026 [6]. Capital and Liquidity - The company expects to close its current Regulation A offering by the end of August 2025, which, if fully subscribed at $10 million, would provide funding through 2025 and into 2026 [13]. - Outstanding warrants may provide growth capital in 2026, with the company aiming to limit notable equity dilution while pursuing disciplined growth [13].

Financial Performance - For the three months ended June 30, 2025, net sales were $4,104,958, representing a year-over-year increase of approximately 114% compared to $1,921,539 in the same period of 2024[109] - Net sales for the six months ended June 30, 2025, were $6,344,963, a 161% increase from $2,434,176 in the same period of 2024[119] - Net sales generated in the U.S. for the three months ended June 30, 2025, were $4,070,406, an increase of 113% from $1,910,838 in the same period of 2024[109] Expenses and Losses - Cost of sales increased by approximately 132%, from $2,100,091 for the six months ended June 30, 2024, to $4,866,630 for the six months ended June 30, 2025[123] - Operating expenses rose by $1,467,970, from $7,884,299 in 2024 to $9,352,269 in 2025, primarily due to increased general and administrative expenses and sales and marketing expenses[125] - Net loss for the six months ended June 30, 2025, was $8,194,948, compared to a net loss of $7,728,056 for the same period in 2024, representing a 6.0% increase[128] - Research and development expenses decreased by $741,031, from $1,415,465 in 2024 to $674,434 in 2025, due to reduced development efforts for the AL3 and AL4 product lines[125] Cash and Working Capital - The company had $1,393,140 in cash and cash equivalents as of June 30, 2025, down from $4,883,099 at December 31, 2024, a decrease of 72%[135] - The company had working capital of $4,758,042 as of June 30, 2025, down from $7,304,110 as of December 31, 2024[129] - Net cash used in operating activities for the six months ended June 30, 2025 was $6,935,033, an increase from $6,421,292 in 2024, primarily due to the shift to production and distribution of hard tonneau covers[136] Inventory and Receivables - Accounts receivable increased by $253,372 at June 30, 2025, compared to an increase of $160,264 in the prior period, driven by the development of the Distributor and Jobber customer network[136] - Inventory increased by $691,459 at June 30, 2025, contrasting with a decrease of $2,755,252 at June 30, 2024, due to the maturation of the production process[137] - Prepaid expenses and deposits increased by $470,641 at June 30, 2025, compared to a decrease of $1,345,434 in the prior period, influenced by timing of deposits from B2C customers[137] Financing and Capital Raising - The company completed the initial closing of its Regulation A offering, raising gross proceeds of $160,339 from the issuance of 49,335 units[111] - The company generated gross proceeds of approximately $6,731,400 from the exercise of existing warrants and the sale of inducement warrants during the six months ended June 30, 2025[132] - The company expects to generate gross proceeds of $10,000,000 from its Regulation A offering, with potential additional proceeds of $13,950,000 from warrants if fully converted[134] - Net cash provided by financing activities for the six months ended June 30, 2025 was $4,027,871, down from $6,817,390 in the prior period[140] Strategic Initiatives - The successful launch of the AL4 product line and enhanced branding efforts contributed to higher direct-to-consumer sales, driving increased net sales[110] - The company announced a strategic partnership with Patriot Automotive Technologies to expand its network to over 200 dealer locations nationwide[111] - The addition of a second national automotive distributor expanded the partnered dealer network to over 550 locations across the U.S., representing a nearly six-fold increase since the beginning of 2025[111] - The company confirmed a Fall 2025 commercial launch for its modular nano-grid system, known as SOLIS & COR, following successful engineering milestones[111] Other Financial Information - The company reported net other expenses of $321,012 for the six months ended June 30, 2025, compared to $177,842 for the same period in 2024, attributed to increased interest expense[127] - There were no material off-balance sheet arrangements that are likely to have a significant future effect on the company's financial condition[141] - As a smaller reporting company, the company is not required to provide certain market risk disclosures[142]

Core Viewpoint - Worksport Ltd. has achieved a record production milestone, producing 2,499 tonneau covers in four weeks, which is more than double the output from March 2025, indicating strong growth and operational efficiency [1][2][3] Production and Operational Efficiency - The production increase of over 100% from March 2025 to July 2025 reflects significant operational scaling, with a 50% production increase reported in May and over 100% improvement in gross margins over the past five months [2][4] - The July output was achieved without a proportional increase in headcount, showcasing the operational efficiency of the ISO 9001:2015-certified facility [2] Demand and Market Reception - Demand for Worksport's products continues to outpace supply, particularly for the Made in USA AL4 premium tonneau cover, which has received exceptional market reception [3][4] Financial Outlook - The company is on track to surpass $20 million in revenue for the year and aims to achieve cash flow positivity in the near term [4][7] - Initial revenue projections from the upcoming clean-tech product launches, SOLIS and COR, are estimated at $2-3 million, with expectations of 8-figure contributions in 2026 and beyond [5] Product Launches and Market Expansion - Worksport plans to launch its first clean-tech product vertical later this year, targeting a combined $13 billion market in clean energy and portable power [4][5] - A top 15 U.S. construction company is currently piloting the SOLIS and COR units for integration into their national fleet, indicating strong interest from large enterprises [5]

Core Insights - Worksport Ltd. has achieved its strongest production performance to date, producing 2,499 tonneau covers in a four-week period, which is more than double the 1,234 units produced in March 2025, indicating over 100% sequential growth [1][2] - The company has reported a 50% production increase in May and over 100% improvement in gross margins over the past five months, showcasing significant operational efficiency without a proportional increase in headcount [2][3] - The demand for Worksport's flagship product, the Made in USA AL4 premium tonneau cover, continues to outpace supply, driving this growth [3][4] Financial Outlook - The CEO of Worksport anticipates the company will surpass $20 million in revenue this year and achieve cash flow positivity in the near term [4] - The company is set to launch its first clean-tech product vertical, including the SOLIS solar-integrated tonneau cover and the COR portable power system, targeting a combined market of $13 billion in clean energy and portable power [4][5] - Initial shipments of SOLIS and COR are expected in Fall 2025, with projected revenue of $2-3 million from the launch and significant contributions anticipated in 2026 and beyond [5] Future Developments - Worksport is focused on achieving cash flow positivity followed by profitability in the upcoming quarters, with increasing margins and record revenues [6] - A top 15 U.S. construction company is currently piloting the SOLIS and COR units for integration into their national fleet, indicating strong market interest [5][8] - The company has an active partnership with Hyundai for the SOLIS solar cover, further expanding its market reach [8]

Core Points - Worksport Ltd. will report its Q2 2025 earnings on August 13, 2025, before the market opens, with CEO Steven Rossi leading the call [1][3] - The company aims to achieve positive cash flow and profitability in the upcoming quarters, highlighting record revenues and increasing margins [2][3] - Worksport is experiencing significant growth in its tonneau cover business and is preparing for a major launch in its clean-tech division [3] Company Overview - Worksport Ltd. designs, develops, and manufactures various products, including tonneau covers, solar integrations, and portable power systems, with a focus on clean energy solutions [4] - The company has a partnership with Hyundai for the SOLIS Solar cover and its hard-folding cover is compatible with all major truck models, gaining traction in the electric vehicle sector [4] - Worksport is positioned to capitalize on the growing consumer shift towards clean energy integrations through its proprietary solar solutions and mobile energy storage systems [4]

Core Insights - Worksport Ltd. has entered a brand partnership with actor and NASCAR driver Frankie Muniz, who is competing in the 2025 NASCAR Craftsman Truck Series [1][5] - Muniz praised Worksport for its innovative energy solutions, particularly highlighting the upcoming solar-powered truck bed cover and portable energy system [2][3] Company Overview - Worksport is a U.S.-based manufacturer focused on hybrid and clean energy solutions for light trucks and consumer goods [1] - The company is preparing for mass production of its SOLIS solar tonneau cover and COR portable battery system, expected to launch in Fall 2025 [5] Financial Performance - Worksport reported an 83% revenue increase in Q2 2025 compared to Q1 2025 [6] Product Innovations - The company's solar-powered truck bed covers and energy products are designed to provide reliable power for outdoor enthusiasts and motorsport applications [3][4] - Worksport's products are manufactured in the U.S. and aim to enhance mobile energy accessibility and off-grid independence [4] Strategic Partnerships - Worksport has an active partnership with Hyundai for the SOLIS solar cover, indicating a focus on collaboration within the automotive sector [6]

Core Insights - Worksport Ltd. has reported a significant increase in revenue and gross margins in Q2 2025, indicating a successful turnaround strategy and positioning for sustainable profitability [1][2][3] Financial Performance - The company achieved unaudited revenue of $4.1 million in Q2 2025, an 83% increase from Q1 2025 revenue of $2.24 million [2] - Gross margins improved by 47%, rising from 17.7% in Q1 to 26.0% in Q2, with expectations to exceed 30% by year-end [3] Strategic Developments - The management's strategic pivot towards a strong Made in America brand has been validated by the recent financial results, moving away from lower-margin private label production [2] - The upcoming launch of the SOLIS Solar Tonneau Cover and COR Portable Energy System is anticipated to unlock additional revenue streams, targeting high-margin markets [5][6] Product Innovations - The SOLIS cover has successfully produced over 500W of solar power, while the COR system has demonstrated Level 1 EV charging capabilities, including compatibility with Tesla vehicles [6] - Both products are currently in beta testing and are scheduled for commercial launch in late 2025 [5] Future Outlook - The company is on track to achieve $20 million in full-year revenue, with a clear path to cash flow positivity [7] - A full Q2 2025 financial report and earnings call are scheduled for mid-August, which will provide further insights into the company's performance and future strategies [7]

Core Insights - Worksport Ltd. has achieved a 50% increase in monthly production volume since March 2025 and over 100% improvement in gross margins over the past five months, driven by increasing demand [1][4] - The company set a new monthly production record in May 2025, producing more units than in the entire third quarter of 2024, indicating significant operational efficiency [2] - Worksport's distribution network has expanded nearly six-fold, from 94 dealers in Q4 2024 to over 550, with many small orders evolving into full partnerships [3] Production and Efficiency - The company is evaluating an expanded production schedule due to accelerating demand and orders consistently outpacing supply [3] - The operational efficiency is further supported by a $2.8 million job creation grant awarded in 2024 [3] - Gross margin has increased from 11% in Q4 2024 to over 23% in May 2025, with projections to exceed 30% by year-end [4] Financial Performance - Worksport's revenues were $1.5 million in 2023 and $8.5 million in 2024, with expectations to surpass $20 million in 2025 [5] - The company aims to grow its tonneau cover business to over $100 million annually in the short term, with potential for its upcoming products to exceed that [5] Product Development and Market Strategy - The company is preparing to launch the SOLIS solar-integrated tonneau cover and COR portable nano-grid power system in Fall 2025, targeting a combined $13 billion market [7] - A top 15 U.S. construction company has selected the SOLIS & COR for a paid pilot project, indicating strong market interest [8] Supply Chain and Manufacturing - Worksport's products are predominantly made in America, reducing the impact of tariffs and aligning with domestic manufacturing efforts [6] - The company emphasizes its commitment to supporting brick-and-mortar resellers while maintaining modest margins on dealer sales [4]

Core Insights - Worksport Ltd. has initiated a commercial-use pilot project with a leading U.S. construction firm that operates a fleet of over 1,000 trucks, focusing on the evaluation of Worksport's SOLIS solar tonneau cover and COR portable energy system [1][4] - The collaboration is expected to provide valuable insights into the performance and reliability of Worksport's clean-tech solutions in real-world construction environments, potentially leading to broader adoption across large commercial fleets [4][7] Company Overview - Worksport Ltd. specializes in hybrid and clean energy solutions for light trucks and consumer goods, with a focus on solar integrations and portable power systems [6] - The company has an active partnership with Hyundai for the SOLIS Solar cover and is gaining traction with newer truck makers, including those in the electric vehicle sector [6] Strategic Outlook - The pilot project serves as a structured roadmap for large-scale fleet adoption and provides a real-world use case for Worksport's products, which may lead to future commercial opportunities [4][5] - The construction firm involved has a strong track record with institutional and government clients, including the U.S. Army Corps of Engineers and the Department of Homeland Security, which could enhance Worksport's exposure to additional clients [4] Pilot Project Details - The initial phase of the pilot involves the construction firm receiving two sets of the SOLIS and COR systems to validate their performance and practical benefits [7] - Worksport anticipates a strategic feedback loop with the customer's innovation department to gather performance data and potentially create marketing content [7]