Company: WKSP
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000850
Chunk: 89

Company: Worksport Ltd
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 89
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au Covers

Our
hard line of tonneau covers includes tri- and quad-fold, aluminum covers. Our entire line of hard folding tonneau covers is manufactured
in the U.S. and include our Quick Latch technology to allow single-sided operation. Our hard covers’ panels are made with
ultra-thick, formed aluminum that provides superior dent resistance compared to those of other hard covers, and we protect those panels
with a proprietary ceramic paint technology that’s scratch- and dent-resistant. Designed to auto index (center) in the truck bed
and be only 7.5mm above the truck bed, the cover provides a low profile, sleek look and yet is easy to install.

Our
hard tonneau cover line includes:

    ●
    Developed

    ○
    The
    Worksport AL3 – top-mounted hard tri-fold;

    ●
    In
    Development

    ○
    The
    Worksport HD3 – top-mounted hard tri-fold with additional latch and upgraded materials;

    ○
    The
    Worksport AL4 – top-mounted hard fold with full truck bed access.

We
began to produce our AL3 hard tonneau cover in August of 2023. We successfully launched the product and quickly began to ramp up production
to meet demand.  We have continuously made enhancements to our assembly line and machining configurations/investments
to maximize production efficiency and lower costs of manufacturing each unit; we are currently capable of producing 90+units within a single 8-hour
shift.

Our
AL3, HD3, and AL4 hard tonneau covers will be available across both business-to-consumer and business-to-business sales channels. However,
HD3 will be unique in that it will be exclusively priced for business-to-business customers, meaning its pricing in business-to-consumer
sales channels will not be discounted in a way that undermines our business customers’ ability to effectively market and sell HD3s
that they purchase from us. The HD3 builds on our AL3 design but uses enhanced materials and includes an extra latch to enhance robustness
and user experience.

7

Soft
Tonneau Covers

Our
soft tonneau cover offering consists of vinyl wrapped tri- and quad-fold tonneau covers manufactured overseas in Meizhou, China and Foshan,
China. These soft covers include our patented Quick Latch system, which allows the operator to open the cover by simply pulling a release
cable – enabling single-sided operation. Each