Core Insights - Worksport Ltd. achieved record revenue of $1.28 million in May 2025, marking the second consecutive month of record-breaking sales, with gross margins improving by 25% from Q1 2025 levels [1][2][7] - The company anticipates continued growth momentum, projecting approximately $20 million in revenue by year-end 2025, significantly higher than the $8.5 million in 2024 [4][5] Revenue and Profitability - Worksport's revenues for April and May 2025 have already surpassed total revenue for Q1 2025, indicating strong sales momentum [2] - The company reported revenue of $1.5 million in 2023 and $8.5 million in 2024, with a target of reaching around $20 million by the end of 2025, aiming for cash flow positivity and sustained profitability [4] Gross Margin and Operational Efficiency - Gross margins improved to approximately 23% in May 2025, driven by a focus on higher-value branded products and operational efficiencies, with expectations to reach 30% by year-end [7] - The manufacturing facility in New York utilizes over 90% domestic content, contributing to the improved gross margins [7] Distribution Network and Growth Outlook - Worksport's dealer network expanded from 94 in Q4 2024 to over 550, including two major national distributors added in spring 2025, which is expected to enhance sales further [7] - The company anticipates June 2025 to be another strong month as new distributors ramp up orders [3][7] Product Launch and Market Potential - The upcoming launch of the SOLIS solar tonneau cover and COR portable nano-grid power system in fall 2025 is expected to tap into multi-billion-dollar clean energy and portable power markets [5] - Management believes these high-margin, IP-protected products will drive significant growth in the coming years [5]

Core Insights - Worksport Ltd. has expanded its dealer network to over 550 locations in the U.S., marking a nearly 6x increase since the beginning of 2025 [2][3] - The company anticipates significant growth in recurring revenue, projecting it to exceed $21.5 million annually at full activation of its dealer channels [4][5] - Management has reaffirmed full-year 2025 revenue guidance of $20-$25 million, representing a 2.5-3x increase year-over-year [6] Dealer Network Expansion - The addition of a second national automotive distributor has contributed to the rapid expansion of Worksport's dealer network [2][3] - The recent agreement adds approximately 250 dealer accounts, following a previous partnership that brought over 200 dealers [3] - As of now, Worksport actively sells to 187 of its 550 dealer partners, with new accounts joining weekly [4] Revenue Projections - The company estimates that its dealer channels can support over $21.5 million in annual repeatable revenue, driven by B2B traction and demand for its products [5] - The revenue potential reflects current scale and is expected to grow as dealer onboarding continues [5] - The anticipated revenue growth is supported by strong dealer adoption and increasing gross margins across all sales channels [6] Product Launch and Market Positioning - Worksport is preparing for the Fall 2025 commercial launch of its SOLIS solar-integrated tonneau cover and COR portable energy storage system, which are expected to unlock new revenue streams [9] - The company is focused on capturing greater market share and enhancing operational efficiencies, aiming for sustainable profitability and positive cash flow in fiscal 2025 and beyond [10] - Worksport's strategic focus on supporting U.S. retailers with American-made products is validated by the growing demand for high-quality truck accessories [7]

Core Insights - Worksport Ltd. is set to launch its modular nano-grid system, SOLIS & COR, in Fall 2025, following successful engineering milestones and validation benchmarks [2][6] - The company anticipates generating $2-3 million in new revenue from these products in 2025, with expectations for rapid scaling and long-term growth in the mobile power and clean energy markets [8][9] Product Overview - The SOLIS solar tonneau cover and COR portable power system are designed to empower over 60 million pickup trucks in the U.S. to generate and store power [3][6] - The total addressable market (TAM) for these products is projected to triple from $4 billion to over $13 billion [3] Market Positioning - The portable energy market is expected to grow at a CAGR of 24.2%, indicating strong demand for Worksport's offerings [6] - SOLIS is positioned as a first-of-its-kind solar solution in the U.S. truck accessories sector, while COR aims to compete with leading portable power industry players [9] Manufacturing and Readiness - Manufacturing of the SOLIS system is underway at Worksport's ISO-certified facility, with production planning for COR also in progress [10] - Both systems have passed internal and third-party tests, with certifications expected within two months [6][10] Strategic Vision - The launch of SOLIS and COR is viewed as a strategic platform for multi-channel expansion, addressing real-world challenges and designed for mass-market scalability [12] - The company aims to leverage its proprietary technology and U.S.-based operations to enhance competitiveness in the market [9][12]

Core Insights - Worksport Ltd. has achieved record-high sales of approximately $1.22 million in April 2025, with the AL4 tonneau cover contributing about 40% of total sales shortly after its launch [1][3] - The rollout of the AL4 product line is progressing well, with 80% of the planned models already launched, and the company expects continued growth in sales [2][4] - The AL4's rapid market acceptance indicates strong demand for American-made premium tonneau covers, which is enhancing the company's revenue base [3][5] Sales Performance - April 2025 sales reached approximately $1.22 million, with the AL4 tonneau cover accounting for around 40% of total sales [1] - The company anticipates that Q2 revenue will significantly exceed Q1 results, driven by the AL4's ramp-up and expanding dealer relationships [4] Product Development - As of the end of April 2025, 20 out of 25 planned AL4 models have been successfully rolled out, with only five remaining [2] - The company is preparing to introduce new clean-tech innovations, including the SOLIS solar-integrated tonneau cover and the COR portable power system, later in 2025 [4] Market Positioning - The AL4's success is attributed to its durability, user-centric features, and competitive pricing, manufactured with over 90% domestic content [3] - Worksport's combination of a strong tonneau cover business and an emerging clean-tech product pipeline positions the company for substantial growth and enhanced shareholder value [5]

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]