Company: WKSP
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000850
Chunk: 133

Company: Worksport Ltd
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 133
---
 our existing human
capital and machinery resources from design engineering and testing functions toward production. This shift is intended to support ongoing
production increases and drive long-term efficiencies in our cost structure.

We
provide our distributors and online retailers an “all-in” wholesale price. This includes any import duty charges, taxes,
and shipping charges. Discounts are applied if the distributor or retailer chooses to use their own shipping process. Certain exceptions
apply on rare occasions where product is shipped outside the contiguous U.S. or from the U.S. to Canada. Volume discounts are offered
to certain high-volume customers, and we also offer a “dock price” or “pickup program” in which clients are able
to pick up inventory directly from our stocking warehouse.

37

Operating
Expenses

Operating
expenses increased for the year ended December 31, 2024 by $1,394,309, from $14,977,175 for the fiscal year ended December 31, 2023 to
$16,371,484 for the fiscal year ended December 31, 2024, due to the following factors.

    ●
    Research
    and development expense increased by $620,622 from $1,669,318 in 2023 to $2,289,940 in 2024. The increase  relates to development
    initiatives for hard tonneau covers (HD3, AL4), soft tonneau covers (SCX) and energy products. 

    ●
    General
    and administrative expense increased by $704,632 from $7,974,362 in 2023 to $8,678,994 in 2024. The
    increase was related to increased employment of production personnel including engineers,
    machine operators, and assembly people, and increases in wages and salaries as we seek to expand our operations and further develop
    our products.

    ●
    Sales
    and marketing expenses increased by $903,450, from $1,483,054 for 2023 to $2,386,504 for 2024. The increase in sales and marketing
    is primarily attributable to the Company’s marking campaigns to create brand and product awareness.

    ●
    Professional
    fees, which include accounting, legal, and consulting fees, decreased by $822,203 from $3,853,134 in 2023 to $3,030,931 in 2024.
    The decrease in professional fees was due to  insourcing certain business processes and fewer share