Company Outlines Strong Momentum in Margins, Revenue, and Business Growth Entering 2025<\/p>\n
West Seneca, New York–(Newsfile Corp. – March 27, 2025) – Worksport Ltd. (NASDAQ: WKSP) (“Worksport” or the “Company”), a U.S.-based manufacturer and innovator of hybrid and clean energy solutions for the light truck, overlanding, and global consumer goods sectors, today announced financial results and significant operational achievements for fiscal year 2024. Marking a transformational year with record revenue growth, expanded product lines, and provided an optimistic outlook for fiscal year 2025.<\/p>\n
Highlights from Fiscal Year 2024:<\/p>\n
Record-Breaking Revenue Growth: Worksport reported net sales of $8.48 million, a remarkable increase of 455% from $1.53 million in 2023, driven by robust direct-to-consumer online sales, expanding business-to-business deals, and successful U.S. manufacturing ramp-up.Margin Expansion and Profitability Path: Strategic shifts toward higher-margin, Worksport-branded products significantly enhanced profitability metrics, particularly evident in the end of Q4 2024 with gross margins rising nearly 3x that of Q3. Worksport expects fiscal 2025 gross margins to align more closely with those achieved in December 2024, supporting a continued growth trajectory.Quarterly Milestone: Q4 2024 net sales were $2.93 million, an approximately 250% year-over-year increase from $839,000 in Q4 2023. The strong holiday season demand across e-commerce and distribution networks pushed results above the Company’s previous FY 2024 revenue guidance of $6-$8 million.<\/p>\n
Financial Position Strengthened:<\/p>\n
Year-end cash and equivalents increased to $4.88 million, with an additional $6.7 million raised through a warrant inducement transaction in March 2025.Inventory strategically increased to $5.19 million to meet anticipated 2025 demand, while strengthen resiliency against macroeconomic supply chain uncertainties. Working capital improved to $7.3 million, offering greater flexibility for growth.<\/p>\n
Steven Rossi, Founder & CEO of Worksport, stated: “Our 2024 results show a remarkable transformation. We expanded U.S. manufacturing, accelerated top-line growth, and repositioned our product lineup for higher margins. As we enter 2025, we have multiple catalysts-from advanced tonneau covers like the AL4 and HD3 to our highly anticipated SOLIS and COR energy solutions. Our focus is to scale production efficiently, drive robust revenue expansion, and chart a clear path to profitability for the benefit of our shareholders.”<\/p>\n
2025 Outlook & Guidance<\/p>\n
Projected Revenue: Worksport expects FY 2025 net sales in the range of $20 million to $34.5 million, driven by growing demand for its premium hard-folding covers, the upcoming SOLIS solar-integrated tonneau, and COR mobile battery system. Margin Expansion: With production scaling, a shift away from lower-margin private-label lines, and the launch of higher-value products, the Company anticipates gross margins reaching 25%-30% by late 2025. Path to Profitability: Management is focused on operational efficiency and cost discipline to target breakeven and potential cash-flow positivity by year-end 2025, contingent on achieving the upper range of its revenue and margin targets.<\/p>\n
Additional Highlights Include:<\/p>\n
B2C Sales Growth: Online sales skyrocketed from $21,599 in Q3 2023 to $1.59 million in Q3 2024, now making up 51% of total revenue.Government Sales Traction: Worksport initiated sales to a U.S. government agency, positioning itself for future business development.New Product Launches: The highly anticipated AL4 tonneau cover is set to debut in Q4 this year and is expected to become a revenue-driving force in 2025, while the SOLIS and COR products are in Alpha testing, with a full market launch slated for Q2\/Q3 next year.<\/p>\n
Worksport FY & Q4 Conference Call<\/p>\n
For detailed insights on the quarter, and management commentary, please attend our scheduled conference call. It will occur at 8:am ET on Thursday March 27, 2025. You may attend with this link: [Worksport FY & Q4 2024 Conference Call]<\/a><\/p>\n Investors are highly encouraged to review the prepared remarks and conference call deck will be available at Worksport’s Investor Relations website<\/a>.<\/p>\n Worksport Full-Year 2024 Report: Balance Sheet & Income Statement<\/p>\n Below is a summary excerpt from the Financial Statements section of ‘Worksport 10-K 2024’<\/a> covering the fiscal year ended December 31, 2024. Investors are encouraged to review the complete 10-K filing and the accompanying Prepared Remarks, both linked above, for full context and analysis.<\/p>\n Worksport Ltd. \n2024 Current assets<\/p>\n Cash and cash equivalents\u00a0$4,883,099 463,122 165,865 3,631,492 1,497,249 9,123,506 90,731 14,483,436 917,354 1,338,889 Current liabilities<\/p>\n Accounts payable\u00a0$1,526,630 190,896 85,010 2,192 5,300,000 328,229 7,166,612 608,761 – 7,775,373<\/p>\n Shareholders’ equity<\/p>\n Series A & B Preferred Stock, $0.001 par value, 10,010 shares authorized, 100 Series A and 0 Series B issued and outstanding, respectively (Note 7) – 2,032 64,685,693 1,814,152 18,178,543 The accompanying notes form an integral part of these condensed consolidated financial statements. Please click here<\/a> to download the full 10-K.<\/p>\n Worksport Ltd. \n2024 Net sales\u00a0$8,484,379 1,289,118 240,514<\/p>\n Operating expenses<\/p>\n Research and development 1,669,318 7,974,362 1,483,054 3,853,134 14,977,175 Other income (expense)<\/p>\n Interest expense 239,353 184,564 Net loss Loss per share (basic and diluted)\u00a0$(5.84)$(8.44)Weighted average number of shares (basic and diluted) 1,768,991<\/p>\n The accompanying notes form an integral part of these condensed consolidated financial statements. Please click here<\/a> to download the full 10-K.<\/p>\n The link below will take you to the Worksport Investor Relations Website. You may download the accompanying earnings call prepared remark and deck there, investors are highly encouraged to review this material:<\/p>\n FY & Q4 2024- Earnings Call Prepared Remarks – Download Here<\/a><\/p>\n Stay Connected<\/p>\n Investor Newsletter: Investors and customers are invited to follow Worksport’s progress as it builds on this momentum and strives to redefine industry standards with each new corporate development. Link to Newsletter<\/a>Contact Information<\/p>\n Investor Relations, Worksport Ltd. T: 1 (888) 554-8789 -128 W: investors.worksport.com<\/a> E: investors@worksport.com<\/a> W: worksport.com<\/a><\/p>\n About Worksport<\/p>\n Worksport Ltd. (NASDAQ: WKSP), through its subsidiaries, designs, develops, manufactures, and owns the intellectual property on a variety of tonneau covers, solar integrations, portable power systems, and clean heating & cooling solutions. Worksport has an active partnership with Hyundai for the SOLIS Solar cover. Additionally, Worksport’s hard-folding cover, designed and manufactured in-house, is compatible with all major truck models and is gaining traction with newer truck makers including the electric vehicle (EV) sector. Worksport seeks to capitalize on the growing shift of consumer mindsets towards clean energy integrations with its proprietary solar solutions, mobile energy storage systems (ESS), and Cold-Climate Heat Pump (CCHP) technology. Terravis Energy’s website is terravisenergy.com<\/a>.<\/p>\n Investors and others should note that the Company announces material financial information to our investors using our investor relations website, press releases, Securities and Exchange Commission (“SEC”) filings, and public conference calls and webcasts. The Company also uses social media to announce Company news and other information. The Company encourages investors, the media, and others to review the information the Company publishes on social media.<\/p>\n The Company does not selectively disclose material non-public information on social media. If there is any significant financial information, the Company will release it broadly to the public through a press release or SEC filing prior to publishing it on social media.<\/p>\n Forward-Looking Statements<\/p>\n The information contained herein may contain “forward\u2010looking statements.” Forward\u2010looking statements reflect the current view about future events. When used in this press release, the words “anticipate,” “believe,” “estimate,” “expect,” “future,” “intend,” “plan,” “project,” “should,” or the negative of these terms and similar expressions, as they relate to us or our management, identify forward\u2010looking statements. These statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (i) supply chain delays; (ii) acceptance of our products by consumers; (iii) delays in or nonacceptance by third parties to sell our products; and (iv) competition from other producers of similar products. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s filings with the SEC, including, without limitation, our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC’s web site at www.sec.gov<\/a>. As a result of these matters, changes in facts, assumptions not being realized or other circumstances, the Company’s actual results may differ materially from the expected results discussed in the forward-looking statements contained in this press release. The forward-looking statements made in this press release are made only as of the date of this press release, and the Company undertakes no obligation to update them to reflect subsequent events or circumstances.<\/p>\n Featured Article<\/p>\n","protected":false},"excerpt":{"rendered":" Company Outlines Strong Momentum in Margins, Revenue, and Business Growth Entering 2025 West Seneca, New York–(Newsfile Corp. – March 27, 2025) – Worksport Ltd. (NASDAQ: WKSP) (“Worksport” or the “Company”), a U.S.-based manufacturer and innovator of hybrid and clean energy solutions for the light truck, overlanding, and global consumer goods sectors, today announced financial results …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[130],"tags":[26415],"class_list":["post-33952","post","type-post","status-publish","format-standard","","category-international","tag-worksport"],"yoast_head":"\n
\nConsolidated Balance Sheets
\nDecember 31, 2024 and 2023<\/p>\n
\n2023
\nASSETS<\/p>\n
\n$3,365,778
\nAccounts receivable, net
\n42,589<\/p>\n
\nOther receivable
\n169,728<\/p>\n
\nInventories, net (Note 3)
\n5,190,054<\/p>\n
\nPrepaid expenses and deposits (Note 6)
\n192,192<\/p>\n
\nTotal Current assets
\n10,477,662<\/p>\n
\nInvestment (Note 11)
\n66,308<\/p>\n
\nProperty and equipment, net (Note 4)
\n13,644,226<\/p>\n
\nOperating lease right-of-use assets (Note 12)
\n595,415<\/p>\n
\nIntangible assets, net (Note 5)
\n953,049<\/p>\n
\nTotal assets\u00a0$25,736,660
\n$25,953,916
\nLIABILITIES AND SHAREHOLDERS’ EQUITY<\/p>\n
\n$1,260,285
\nAccrued liabilities and other
\n800,283<\/p>\n
\nAccrued compensation
\n377,112<\/p>\n
\nRelated party loan
\n–<\/p>\n
\nLong-term debt, current portion (Note 13)
\n222,992<\/p>\n
\nLease liability, current portion (Note 12)
\n246,535<\/p>\n
\nTotal current liabilities
\n3,173,552<\/p>\n
\nLease liability, excluding current portion (Note 12)
\n368,472<\/p>\n
\nLong-term debt, excluding current portion (Note 13)
\n4,781,005<\/p>\n
\nTotal liabilities
\n8,323,029<\/p>\n
\n–<\/p>\n
\nCommon stock, $0.001 par value, 29,900,000 shares authorized, 4,016,205 and 2,032,050 shares issued and outstanding, respectively (Note 7)
\n4,016<\/p>\n
\nAdditional paid-in capital
\n79,781,674<\/p>\n
\nShare subscriptions receivable
\n(1,577)
\n(1,577)Share subscriptions payable
\n2,115,064<\/p>\n
\nAccumulated deficit
\n(64,476,966)
\n(48,313,177)Cumulative translation adjustment
\n(8,580)
\n(8,580)Total shareholders’ equity
\n17,413,631<\/p>\n
\nTotal liabilities and shareholders’ equity\u00a0$25,736,660
\n$25,953,916<\/p>\n
\nConsolidated Statements of Operations and Comprehensive Loss
\nDecember 31, 2024 and 2023<\/p>\n
\n2023<\/p>\n
\n$1,529,632
\nCost of sales
\n7,578,729<\/p>\n
\nGross profit
\n905,650<\/p>\n
\n2,289,940<\/p>\n
\nGeneral and administrative
\n8,678,994<\/p>\n
\nSales and marketing
\n2,386,504<\/p>\n
\nProfessional fees
\n3,030,931<\/p>\n
\nGain on foreign exchange
\n(14,885)
\n(2,693)Total operating expenses
\n16,371,484<\/p>\n
\nLoss from operations
\n(15,465,834)
\n(14,736,661)<\/p>\n
\n(726,095)
\n(616,214)Interest income
\n37,492<\/p>\n
\nRental income (Note 17)
\n76,413<\/p>\n
\nOther
\n(85,765)
\n–
\nTotal other income (expense)
\n(697,955)
\n(192,297)<\/p>\n
\n(16,163,789)
\n(14,928,958)<\/p>\n
\n2,768,732<\/p>\n