Company: WKSP
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010837
Chunk: 89

Company: Worksport Ltd
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 2
Chunk 89
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●On
                                            March 18, 2025, Worksport effectuated a 1-for-10 reverse stock split of its common stock.
                                            The Company’s common stock continues to trade on the Nasdaq under the Company’s
                                            existing trading symbol, “WKSP”, and a new CUSIP number, 98139Q308, was assigned
                                            as a result of the reverse stock split.

●Through
                                            March 31, 2025, the Company has sold and issued 22,725 shares of common stock in consideration
                                            for net proceeds of $185,874 under the ATM Agreement.

CRITICAL
ACCOUNTING POLICIES

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 (“ASU”).

CONSOLIDATED
RESULTS OF OPERATIONS

Three
Months Ended March 31, 2025 compared to the Three Months Ended March 31, 2024

Net
sales

For
the three months ended March 31, 2025, net sales were $2,240,005, as compared to $512,637 for the three months ended March 31, 2024.
Year-over-year net sales increased by approximately 337%. For the three months ended March 31, 2025, net sales generated in U.S. was
$2,227,549, as compared to $474,654 for the same period in 2024, an increase of 369%. For the three months ended March 31, 2025,
revenue generated in Canada was $12,456, compared to $20,007 for the same period in 2024, a decrease of 38%.

19

Net
sales increased during the three months ended March 31, 2025 compared to the same period the prior year due to further branding and marketing
efforts resulting in higher direct to consumer sales as well as implementation of our distributor, wholesaler, and jobber sales strategy
leading to increases in our business to business sales channels.

We
distribute our hard tonneau covers and soft tonneau covers in the U.S. and Canada through an expanding