Company: WKSP
Filing Date: 2025-03-28
Form Type: S-1
Source: 0001641172-25-001309
Chunk: 20

Company: Worksport Ltd
Filing Date: 2025-03-28
Form: S-1
Chunk 20
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As of July 3, 2024, Worksport soft tonneau covers
are manufactured in a facility located in Meizhou, China as well as a newly established facility in Foshan, China. The Foshan facility,
established in 2023, has doubled our soft cover production capacity. Both factories manufacture soft covers according to Worksport’s
specifications, schematics and blueprints. The newer facility in Foshan, China, once fully established, will have an output capacity two
times greater than that of the manufacturing facility in Meizhou, China and currently produces soft tonneau covers for a Worksport private
label customer, with the intention to produce Worksport-branded soft tonneau covers in the future. We believe we will be able to scale
production at this newer facility without sacrificing quality or craftsmanship.

We have purchased many production tools including
injection molds, die cast molds, extrusion dies, and stamping dies – many of which are residing among foreign suppliers who are
currently utilizing said tooling to produce needed components for manufacturing or assembly within the USA. We continue to diversify our
supplier base to reduce reliance on any single foreign partner and mitigate geopolitical risks.

In August of 2023, we began early production of our
first hard folding tonneau cover, the Worksport AL3 Pro. We have continued to develop, improve and evolve our production methods and standards.
As of March 2024, we have begun consistent production of the AL3 Pro cover with high repeatability and stable production quality. The
AL3 Pro tonneau cover model is in active production for most major makes and models of light trucks in North America. The U.S. Facility
will be the house of future Worksport Covers expected to come out later this year.

In May of 2022, we purchased a 152,847 square foot
production facility for domestic production, storage, and distribution, located in West Seneca, New York. We have commenced consistent
production of our AL3 and AL4 models at this site, with tooling improvements underway to scale production capacity and maintain quality.
We have received, installed, and tested all manufacturing equipment as well as trained all personnel necessary for phase one production.
Management believes that having manufacturing capability in North America will increase quality control and production efficiency, as
well as lower landed costs and geopolitical risks.

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Our manufacturing engineering team is continuing to
develop rigs and fixtures to increase the efficiency of our manufacturing process in