Company: WKSP
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022113
Chunk: 105

Company: Worksport Ltd
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 2
Chunk 105
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ited
condensed consolidated financial statements and accompanying notes included in Part I, Item 1 of this Form 10-Q.

OVERVIEW

Worksport
Ltd., through its subsidiaries, designs, develops, manufactures, and owns the intellectual property on a variety of tonneau covers, solar
integrations, portable power systems, and clean heating & cooling solutions. Additionally, Worksport’s hard-folding cover,
designed and manufactured in the U.S., is compatible with all major truck models and is gaining traction with newer truck makers
including the EV sector. Worksport seeks to capitalize on the growing shift of consumer mindsets towards clean energy integrations and
power grid independence with its proprietary solar solutions, mobile energy storage systems (ESS), and Cold-Climate Heat Pump (CCHP)
technology.

Key Performance Outcomes

The following highlights a summary of our achievements during the period:

●Sales
                                            growth: We recognized the highest net sales in our Company’s history. For the three
                                            months ended September 30, 2025, net sales increased by 61% to $5.0 million when compared
                                            with $3.1 million during the same period in 2024. For the nine months ended September 30,
                                            2025, net sales increased by 104% to $11.4 million when compared with $5.6 million during
                                            the same period in 2024.

●Margin
                                            expansion: We continued our focus to increase efficiency in our production process. For the
                                            three months ended September 30, 2025, gross margin expanded to 31.3%, an increase from 7.9%
                                            during the same period in 2024. For the nine months ended September 30, 2025, gross margin
                                            expanded to 26.8%, an increase from 10.5% during the same period in 2024.

●Distribution
                                            growth: We expanded our distribution network and now partner with six (6) national distributors,
                                            including two (2) new relationships during the three months ended September 30, 2025.

●Production
                                            milestones: Our U.S. production facilities achieved its highest monthly production volume
                                            in our Company’s history.
 ●Research milestones: Our Terravis Energy subsidiary continues its prototype
development efforts, including facility setup.

Rising
Popularity of Electric Vehicles

Electric
Vehicles (EVs) have been increasing in consumer interest, whether that interest takes the form of vehicle