Company: WKSP
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022113
Chunk: 92

Company: Worksport Ltd
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 92
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to increased insurance and facility support costs to sustain production efforts, alongside an increase in e-Commerce fees due to increased
sales volume.

    ●
    Sales
    and marketing expense increased by $1,700,957, from $661,238 in 2024 to $2,362,195 in 2025. The increase in sales and marketing was
    primarily attributable to marketing campaigns to support investor relations initiatives and drive traffic and engagement to our online
    marketplace for direct-to-consumer sales, including awareness campaigns for the newly released AL4 product line.

    ●
    Professional
    fees expense, which includes accounting, legal, and consulting fees, increased by $126,928 from $621,728 in 2024 to $748,656 in
    2025. The increase in professional fees was primarily driven by stock awards granted to external consultants to support strategic
    objectives.

Other
Income and Expenses

We
reported net other expenses for the three months ended September 30, 2025 of $135,908, compared to $229,701 for three months ended September
30, 2024. The decrease in net other expenses was attributed to a reduction in interest expense as a result of reduced reliance on our
line of credit.

26

Net
Loss

Net
loss for the three months ended September 30, 2025 was $4,928,679, compared to a net loss of $4,134,917 for the three months ended
September 30, 2024 – an increase of 19%. The increase in the net loss can be attributed to higher marketing expenses to
support investor relationship initiatives and campaigns to expand sales volumes, including the development of future campaigns for
which we expect to show return on investment via increased net sales in future periods.

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

Net
Sales

For
the nine months ended September 30, 2025, net sales were $11,358,835, as compared to $5,556,535 for the nine months ended September 30,
2024. Year-over-year net sales increased by 104%. For the nine months ended September 30, 2025, net sales generated in U.S. was $11,284,538,
as compared to $5,475,975 for the same period in 2024, an increase of 106%. For the nine months