Company: WKSP
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022113
Chunk: 44

Company: Worksport Ltd
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 44
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 of sales on a per-unit basis.

We
provide our distributors and online retailers an “all-in” wholesale price. This includes any import duty charges, taxes,
and shipping charges. Discounts are applied if the distributor or retailer chooses to use their own shipping process. Certain exceptions
apply on rare occasions where product is shipped outside the contiguous U.S. or from the U.S. to Canada. Volume discounts
are offered to certain high-volume customers, and we also offer a “dock price” or “pickup program” whereby clients
are able to pick up product directly from our stocking warehouse.

Operating
Expenses

Operating
expenses increased for the three months ended September 30, 2025 by $2,209,166, from $4,152,389 for the three months ended September
30, 2024 to $6,361,555, mainly due to the following factors:

    ●
    Research
    and development expense decreased by $95,351, from $396,446 in 2024 to $301,095 in 2025. The decrease was related to developmental
    progress of our AL3 product line and release of our AL4 product line, both of which required less development efforts as resources
    were shifted to normal-course production.

    ●
    General
and administrative expense increased by $471,291, from $2,478,809 in 2024 to $2,950,100 in 2025. The increase was primarily attributable
to increased insurance and facility support costs to sustain production efforts, alongside an increase in e-Commerce fees due to increased
sales volume.

    ●
    Sales
    and marketing expense increased by $1,700,957, from $661,238 in 2024 to $2,362,195 in 2025. The increase in sales and marketing was
    primarily attributable to marketing campaigns to support investor relations initiatives and drive traffic and engagement to our online
    marketplace for direct-to-consumer sales, including awareness campaigns for the newly released AL4 product line.

    ●
    Professional
    fees expense, which includes accounting, legal, and consulting fees, increased by $126,928 from $621,728 in 2024 to $748,656 in
    2025. The increase in professional fees was primarily driven by stock awards granted to external consultants to support strategic
    objectives.

Other
Income and Expenses

We
reported net other expenses for the three months ended September 30,