Company: WKSP
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022113
Chunk: 32

Company: Worksport Ltd
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 32
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 19

17.
Segment Reporting

The
Company manages its business on a product basis and operates in the following two reporting segments for financial reporting purposes:
(1) Hard Tonneau Covers and (2) Soft Tonneau Covers. The accounting policies of both reporting segments are the same as those described
in Note 1, Description of Business and Summary of Significant Accounting Policies.

The
Company’s chief operating decision maker (“CODM”) is the Chief Executive Officer, who regularly reviews financial information
presented on a consolidated basis for purposes of allocating resources and evaluating financial performance of the Company’s reporting
segments. The CODM primarily focuses on net income to evaluate its reporting segments. The CODM also uses net income for evaluating pricing
strategy and to assess the performance for determining the compensation of certain employees. Significant segment expenses reviewed,
which represent the differences between segment revenue and segment net loss, consist of the following:

Schedule
of Revenue and Segment Net Loss

    Hard Tonneau Covers  
    Soft Tonneau Covers  
    Corporate / Other / Eliminations  
    Consolidated  
    Hard Tonneau Covers  
    Soft Tonneau Covers  
    Corporate / Other / Eliminations  
    Consolidated 

     For the three months ended September 30, 2025  
     For the three months ended September 30, 2024 

    Hard Tonneau Covers  
    Soft Tonneau Covers  
    Corporate / Other / Eliminations  
    Consolidated  
    Hard Tonneau Covers  
    Soft Tonneau Covers  
    Corporate / Other / Eliminations  
    Consolidated 
  
    Net sales 
    $4,881,982  
    $131,890  
    $-  
    $5,013,872  
    $1,716,686  
    $1,405,673  
    $-  
    $3,122,359 
  
    Less: Cost of sales 
     (3,341,071 
)
 
     (104,017) 
     -  
     (3,445,088) 
     (1,661,270) 
     (1,211,933) 
     (1,983) 
     (2,875,186)
  
    Selling, general and administrative 
     (2,561,515) 
     (