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].

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 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]