Company: WKSP
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022113
Chunk: 45

Company: Worksport Ltd
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 45
---
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 ended September 30, 2025, revenue generated
in other countries was $74,297, compared to $80,560 for the same period in 2024, a decrease of 8%.

Net
sales increased during the nine months ended September 30, 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. Also driving greater net sales was the
release of the flagship AL4 product line.

We
distribute our hard tonneau covers and soft tonneau covers in the U.S. and Canada through an expanding network of wholesalers, private
labels, distributors, and other online retailers, including eBay, Amazon, and our own e-Commerce platform hosted on Shopify.
Distribution via each aforementioned channel is expected to increase during 2026. We have pursued and will continue to pursue relationships
with Original