Company: WKSP
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023334
Chunk: 83

Company: Worksport Ltd
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 8
Chunk 83
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 for three months ended June 30, 2024.
The increase in net other expenses was attributed to a reduction in
rental income as a result of the completion of the term of our sublease agreement.

26

Net
Loss

Net
loss for the three months ended June 30, 2025 was $3,734,484, compared to a net loss of $4,013,399 for the three months ended June
30, 2024 – a decrease of 6.9%. The decrease in the net loss can be attributed to higher net sales and gross profit and certain
reduced operating expenses.

Six
Months Ended June 30, 2025 compared to the Six Months Ended June 30, 2024

Net
sales

For
the six months ended June 30, 2025, net sales were $6,344,963, as compared to $2,434,176 for the six months ended June 30, 2024.
Year-over-year net sales increased by approximately 161%. For the six months ended June 30, 2025, net sales generated in U.S. was
$6,297,955, as compared to $2,385,492 for the same period in 2024, an increase of 164%. For the six months ended June 30, 2025,
revenue generated in Canada was $47,008, compared to $48,684 for the same period in 2024, a decrease of 3%.

Net
sales increased during the six months ended June 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, Walmart, and our own e-Commerce platform hosted on Shopify.
Distribution via each aforementioned channel is expected to increase during 2025. We have pursued and will continue to pursue relationships
with Original Equipment Manufacturers with the intention of distributing through them as well.

We currently work closely with a large Canadian and four large U.S. distributors
as well as online