Company: WKSP
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023334
Chunk: 79

Company: Worksport Ltd
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 8
Chunk 79
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iffs

Worksport’s
hard tonneau covers—led by the AL3 and AL4 models—are manufactured in the U.S. using predominantly American aluminum, providing
strong resilience against tariffs. Soft covers, currently sourced from China, account for a minor portion of revenue, with domestic sourcing
options actively under review. The upcoming SOLIS solar cover will be built in the U.S., with solar panels expected to be sourced from
India, a country maintaining relatively stable trade relations with the U.S. For the COR portable power system, Worksport is working
with its international battery supplier and U.S.-based partners to mitigate tariff exposure and evaluate onshore manufacturing opportunities. We continue to monitor international trade developments
closely, including potential changes in tariff rates and the possibility of new exemptions or other regulatory actions, to analyze impacts
to our operations. The extent and duration of tariffs remain uncertain and will depend on a variety of factors outside of our control.
We remain committed to optimizing our operations, including managing our supply chain to minimize the impact of tariffs on our results
of operations.

24

Business
Developments

The
following highlights recent material developments in our business in the three months ended June 30, 2025:

    ●
    On April 29, 2025, the Company announced a strategic partnership with Patriot
Automotive Technologies to accelerate nationwide expansion through Patriot’s network of over 200 dealer locations.

    ●
    On May 28, 2025, the Company announced that it secured ISO 9001 Certification
at its U.S. Factory, expected to pave new inroads towards substantial new OEM and global supply chain opportunities. This certification
cycle officially commenced in April 2025 and remains valid through April 2028, contingent upon continued compliance.

    ●
    On June 2, 2025 the Company announced that 80% of the AL4 product line—20
out of 25 planned models—had been successfully rolled out to market.

    ●
    On June 5, 2025, the Company confirmed a Fall 2025 commercial launch for
its much-anticipated modular nano-grid system, known as SOLIS & COR. This announcement follows the successful completion of key engineering
milestones and validation benchmarks across both systems.

    ●
    On June 10, 2025, the Company announced the addition of a second national
automotive distributor, expanding the Company’s partnered dealer network to over 550 locations across the United States—representing