WKSP Worksport Ltd

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): November 14, 2024

 

WORKSPORT LTD.
(Exact name of registrant as specified in its charter)

 

Nevada		001-40681		35-2696895
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

 

2500 N America Dr

West Seneca, New York 14224
(Address of principal executive offices) (ZIP Code)

 

(888) 554-8789

Registrant’s telephone number, including area code

 

Not Applicable
(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class		Trading Symbols		Name of each exchange on which registered
Common		WKSP		The Nasdaq Stock Market LLC

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b -2 of this chapter).

 

Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

Item 7.01 Regulation FD Disclosure.

 

On November 13 2024, Worksport Ltd. (the “Company”) issued a press release: “Worksport ($WKSP) Reports Significant 581% YoY Revenue Growth in Q3 2024, Eyes Record 2025”. A copy of the press release is attached hereto as Exhibit 99.1.

 

The information under Item 7.01 of this Current Report on Form 8-K and the exhibit attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, or incorporated by reference into any of the Company’s filings under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in any such filing.

 

Item 9.01 Financial Statements and Exhibits.

 

(d) Exhibits.

 

Exhibit No.		Description
99.1		Press Release dated November 13, 2024, “Worksport ($WKSP) Reports Significant 581% YoY Revenue Growth in Q3 2024, Eyes Record 2025”
104		Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

	WORKSPORT LTD.
Date: November 14, 2024	By:	/s/ Steven Rossi
	Name:	Steven Rossi
	Title:	Chief Executive Officer (Principal Executive Officer)

 

 

 

Exhibit 99.1

 

Worksport ($WKSP) Reports Significant 581% YoY Revenue Growth in Q3 2024, Eyes Record 2025

 

Company Announces Consecutive Surge in Quarterly Revenues; Provides Positive Outlook for Fiscal Year 2025; Ongoing Expansion and New Product Lines Fuel Momentum

 

West Seneca, New York, November 13, 2024 — 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 its Q3 2024 financial results. Worksport shares another consecutive quarter of revenue growth and positive outlook for financial year-end 2025.

 

Q3 revenue surged to $3.12 million—a 581% year-over-year increase compared to $458,433 in Q3 2023. This rapid growth reflects continued scaling of both B2B and B2C channels and the growing demand for Worksport’s innovative products. Following a 275% revenue increase from Q1 to Q2 2024, Q3 revenue grew another 63% from Q2 2024, underscoring the strength of the Company’s strategic investments and the success of its recent sales initiatives. Worksport believes it will exceed previous financial guidance of $6-8M by year-end 2024, and below issues guidance for year-end 2025.

 

Steven Rossi, Worksport’s Founder & CEO, stated:

 

“Our Q3 results are just the beginning. With our robust product pipeline and aggressive market penetration strategies, we are on a trajectory for sustained growth. Our goal is to become cash flow positive in 2025, with a keen focus on EPS and EBITA. We are targeting revenue growth to $25-$34.5 million in 2025. We are excited about the significant impact our products, including the AL4 tonneau cover, SOLIS solar cover, and COR portable energy system, are expected to have as we enter next year.”

 

Upcoming Products & Strategic Path to Profitability:

 

Worksport continues to expand its production capacity and expects to meet its next production target of making over 200 tonneau covers per day within 2025. This increase in capacity should enable the Company to meet growing demand while notably increasing margins, driven by new high-demand, high-margin product lines. In Q3, the Company maintained an inventory balance of $6.1 million, strategically positioned to support sustained revenue growth without the need for major capital investments. The Company believes it can increase its ability to produce beyond 200 covers without significant time or capital investment.

 

Additional Highlights Include:

 

●

B2C Sales Growth: Online sales increased 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 potential future business development.

 

●

New Product Launches: The highly anticipated AL4 tonneau cover is set to debut in Q4 this year and is expected to contribute significantly to revenue growth in 2025, while the SOLIS and COR products are in Alpha testing, with a full market launch slated for Q2/Q3 next year.

 

Strategic Market Position and Forward Guidance

 

Worksport expects to exceed its previously issued revenue guidance of $6-8 million by year-end 2024.

 

Worksport’s growth is underpinned by its diversified portfolio, intellectual property, team experience, and its newly launched online presence. With the pickup truck market continuing to lead vehicle sales and Worksport’s first-to-market solar-integrated tonneau cover SOLIS on the horizon, the Company believes it is well-positioned to capture market share in both the automotive accessory and clean energy sectors. Complemented by the COR portable energy system, Worksport’s growth potential continues to become strong in 2025 and beyond.

 

For 2025, Worksport projects its existing product lines to generate $20 million in revenue, with new product launches, including its AL4 cover and COR and SOLIS systems, contributing up to an additional $18.5 million. Depending on timing and circumstances, these projections lead to a robust revenue outlook ranging from $25 million to $34.5 million in 2025, a pivotal year anticipated to drive Worksport towards cash flow positivity.

 

Worksport Q3 Earnings Call

 

For detailed insights on the quarter, and management commentary, please attend the Q3 2024 Earnings Call. It will occur at 4:30pm ET on Wednesday November 13, 2024. You may attend with this link: [Worksport Q3 2024 Earnings Call]

 

The prepared remarks will also be available at Worksport’s Investor Relations website.

 

Investor Inquiries May Be Directed To:

 

Investor Relations, Worksport Ltd.

T: 1 (888) 554-8789 x128

W1: https://investor.worksport.com

W2: www.worksport.com

E: investors@worksport.com

 

 

Worksport Quarter 3, 2024 Report, Item 1. Financial Statements

 

The Company has included the Financial Statements section below from the ‘Full Worksport Q3 2024’ For Quarterly Period Ended: September 30, 2024. Investors are encouraged to read the full 10-Q along with the Prepared Remarks, both linked above.

 

Item 1. Financial Statements

 

Worksport Ltd.

Condensed Consolidated Balance Sheets

 

		September 30, 2024				December 31, 2023
		(Unaudited)
Assets
Current Assets
Cash and cash equivalents		$	1,857,685			$	3,365,778
Accounts receivable, net			466,442				463,122
Other receivable			153,967				165,865
Inventory (note 4)			6,138,060				3,631,492
Related party loan (note 8)			14,303				-
Prepaid expenses and deposits (note 5)			256,600				1,497,249
Total Current Assets			8,887,057				9,123,506
Investments (note 10)			90,731				90,731
Property and Equipment, net (note 6)			13,966,210				14,483,436
Right-Of-Use Asset, net (note 11)			658,152				917,354
Intangible Assets, net			1,337,008				1,338,889
Total Assets		$	24,939,158			$	25,953,916
Liabilities and Shareholders’ Equity
Current Liabilities
Accounts payable and accrued liabilities		$	2,456,000			$	1,451,181
Payroll taxes payable			111,591				85,010
Related party loan (note 8)			-				2,192
Current portion – Long term debt (note 12)			190,000				5,300,000
Current lease liability (note 11)			248,540				328,229
Total Current Liabilities			3,006,131				7,166,612
Long Term – Lease Liability (note 11)			433,214				608,761
Long Term Debt (note 12)			5,136,738				-
Total Liabilities			8,576,083				7,775,373
Shareholders’ Equity
Series A & B Preferred Stock, $0.0001 par value, 100,100 shares authorized, 100 Series A and 0 Series B issued and outstanding, respectively (note 7)			-				-
Common stock, $0.0001 par value, 299,000,000 shares authorized, 30,920,397 and 17,436,805 shares issued and outstanding, respectively (note 7)			3,092				2,032
Additional paid-in capital			72,512,085				64,685,693
Share subscriptions receivable			(1,577	)			(1,577	)
Share subscriptions payable			4,034,205				1,814,152
Accumulated deficit			(60,176,150	)			(48,313,177	)
Cumulative translation adjustment			(8,580	)			(8,580	)
Total Shareholders’ Equity			16,363,075				18,178,543
Total Liabilities and Shareholders’ Equity		$	24,939,158			$	25,953,916

 

The accompanying notes form an integral part of these condensed consolidated financial statements. Please click here to download the full 10-Q.

 

 

Worksport Ltd.

Condensed Consolidated Statements of Operations and Comprehensive Loss

For the Three and Nine Months Ended September 30, 2024 and 2023

(Unaudited)

 

		Three Months ended September 30,								Nine Months ended September 30,
		2024				2023				2024				2023
Net Sales		$	3,122,359			$	458,483			$	5,556,535			$	690,259
Cost of Goods Sold			2,875,186				368,796				4,975,277				541,841
Gross Profit			247,173				89,687				581,258				148,418
Operating Expenses
General and administrative			2,875,255				3,091,488				8,495,959				6,965,901
Sales and marketing			661,238				380,847				1,206,807				1,473,910
Professional fees			621,728				539,126				2,332,069				2,899,190
(Gain) loss on foreign exchange			(5,832	)			(2,265	)			1,853				(2,407	)
Total operating expenses			4,152,389				4,009,196				12,036,688				11,336,594
Loss from operations			(3,905,216	)			(3,919,509	)			(11,455,430	)			(11,188,176	)
Other Income (Expense)
Interest expense			(229,701	)			(113,838	)			(487,463	)			(466,830	)
Interest income			-				38,992				3,054				237,598
Rental income (note 17)			-				45,057				76,866				139,892
Gain on settlement of debt			-				-				-				7,493
Total other income (expense)			(229,701	)			(29,789	)			(407,543	)			(81,847	)
Net Loss		$	(4,134,917	)		$	(3,949,298	)		$	(11,862,973	)		$	(11,270,023	)
Loss per Share (basic and diluted)		$	(0.14	)		$	(0.23	)		$	(0.47	)		$	(0.65	)
Weighted Average Number of Shares (basic and diluted)			29,432,794				17,429,685				25,540,754				17,252,521

 

The accompanying notes form an integral part of these condensed consolidated financial statements. Please click here to download the full 10-Q.

 

 

The link below will take you to the Worksport Investor Relations Website. You may download the full 10-Q and accompanying earnings call remarks there: Q3 2024 10 Q & Earnings Call Prepared Remarks - Download Here

 

Key 2024 Press-Releases:

 

	●	October 29: 200% Growth in B2B Sales; Pre-Order Campaign Initiated For AL4
	●	October 17: Nasdaq Grants Extension To Regain Compliance
	●	October 17: $2MM+ Projected Savings From New Strategic Initiative
	●	October 3: Commencing U.S Government Sales
	●	September 30: Update On ISO Certification
	●	September 19: Alpha Launch of SOLIS & COR
	●	September 11: Worksport COR as an EV Range Extender for Tesla Model 3
	●	August 14: Record High Revenues; 275% Q2 Growth
	●	August 1: Impressive SOLIS Solar Cover Test Results
	●	May 8: Worksport Awarded $2.8MM Grant

 

Read all Worksport press releases: [Link to All Press Releases].

 

Stay Connected

 

●

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

 

●

Contact Information

 

Investor Relations, Worksport Ltd. T: 1 (888) 554-8789 -128 W: investors.worksport.com E: investors@worksport.com W: worksport.com

 

 

About Worksport

 

Worksport Ltd. (Nasdaq: WKSP), through its subsidiaries, designs, develops, manufactures, and owns the intellectual property on a variety of tonneau covers, solar integrations, and NP (Non-Parasitic), hydrogen-based true green energy solutions for the sustainable, clean energy, and automotive industries. 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 RAM, Chevrolet, and GMC models from General Motors, as well as Ford, Jeep, Nissan, and Toyota pickup trucks. 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 NP (Non-Parasitic), Hydrogen-based technology. Terravis Energy’s website is terravisenergy.com. For more information, please visit investors.worksport.com.

 

Connect with Worksport

 

Please follow the Company’s social media accounts on X (previously Twitter), Facebook, LinkedIn, YouTube, and Instagram (collectively, the “Accounts”), the links of which are links to external third party websites, as well as sign up for the Company’s newsletters at investors.worksport.com. The Company does not endorse, ensure the accuracy of, or accept any responsibility for any content on these third-party websites other than content published by the Company.

 

Product social media	Investor social media
Instagram	X (formerly Twitter)
Facebook	LinkedIn
YouTube	Link to Newsletter

 

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.

 

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.

 

For additional information, please contact:

 

Investor Relations, Worksport Ltd. T: 1 (888) 554-8789 -128 W: investors.worksport.com W: www.worksport.com E: investors@worksport.com

 

Forward-Looking Statements

 

The information contained herein may contain “forward-looking statements.” Forward-looking 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-looking 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. 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.

 

 

v3.24.3

Cover	Nov. 14, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Nov. 14, 2024
Entity File Number	001-40681
Entity Registrant Name	WORKSPORT LTD.
Entity Central Index Key	0001096275
Entity Tax Identification Number	35-2696895
Entity Incorporation, State or Country Code	NV
Entity Address, Address Line One	2500 N America Dr
Entity Address, City or Town	West Seneca
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	14224
City Area Code	(888)
Local Phone Number	554-8789
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common
Trading Symbol	WKSP
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false

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