Company: WKSP
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022113
Chunk: 42

Company: Worksport Ltd
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 42
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 Pro heat pump with high-performance Zerofrost technology – a product
    of its subsidiary, Terravis Energy - had received the attention of multi-billion dollar corporations and U.S. government entities,
    with site visits and due diligence underway.

    ●
    On
    July 16, 2025, Worksport announced it doubled its R&D footprint by beginning a new lease at a larger R&D facility in Ozark,
    Missouri for the development of upcoming product lines.

    ●
    On
    August 5, 2025, Worksport announced its strongest 4-week production run since beginning domestic production.

    ●
    On
    August 7, 2025, Worksport announced that it had doubled its Bitcoin holdings and invested in additional manufacturing machinery
    to double its production output.

    ●
    On
    September 30, 2025, Worksport announced a 42% increase in national dealer partnerships over the preceding quarter. 

CRITICAL
ACCOUNTING POLICIES

The SEC defines critical accounting policies as those
that are, in management’s view, most important to the portrayal of our financial condition and results of operations and those that
require significant judgments and estimates. The accounting principles we utilized in preparing our unaudited condensed consolidated financial
statements conform in all material respects to Generally Accepted Accounting Principles in the U.S., or U.S. GAAP.

On
a regular basis, we evaluate the critical accounting policies used to prepare our consolidated financial statements, including revenue
recognition, inventory valuation, reviews for impairment of long-lived assets, and income taxes.

RECENT
ACCOUNTING PRONOUNCEMENTS

See
Note 1, Description of Business and Significant Accounting Policies included in Item 1, Financial Statements of this report for further
information regarding Financial Accounting Standards Board issued Accounting Standards Updates.

CONSOLIDATED
RESULTS OF OPERATIONS

Three
Months Ended September 30, 2025 compared to the Three Months Ended September 30, 2024

Net
Sales

For
the three months ended September 30, 2025, net sales were $5,013,872, as compared to $3,122,359 for the three months ended September
30, 2024. Year-over-year net sales increased by 61%. For the three months ended September 30, 2025, net sales generated in the U.S.
was $4,985,887, as compared to $3,093,608 for the same period