Company: WKSP
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000850
Chunk: 93

Company: Worksport Ltd
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 93
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 estimated exceptional efficiency is reflected in its Coefficient of Performance of 3.0-3.5 at -57°F and a Heating
Seasonal Performance Factor rating between 11.0 and 12.5, making it a leader in extreme climate heating solutions. Unlike fossil-fuel-based
heating systems, which generate heat by burning fuel, AetherLux’s technology extracts and amplifies ambient thermal energy, making
it significantly more efficient and environmentally friendly. With up to 61.4% cost savings on heating bills and a reduction of 11-12
metric tons of CO₂ emissions per household annually, this innovation directly supports the transition to sustainable, high-performance
heating for the coldest regions on Earth.

Manufacturing

In
2022, we purchased a 152,847 square foot production facility for domestic production, storage, and distribution, located in West Seneca,
New York. Management believes that having manufacturing capability in North America increases quality control and production efficiency,
as well as lowers landed costs and geopolitical risks. At this time, we are consistently manufacturing two product lines – the
AL3 and AL4 – in this facility as well as fulfilling orders from this facility. We are currently using a fraction of the facility’s
available space for manufacturing, and we are investing in additional personnel and assembly lines in line with forecasted demand for
our domestically manufactured goods. At the same time, our manufacturing engineering team continuously develops rigs and fixtures to
increase the efficiency of our manufacturing process in order to scale manufacturing lines rather than investing in additional lines
and personnel when possible, and we will continue to allocate resources towards improving manufacturing efficiency and product quality
on an on-going basis.

We
have purchased many production tools including injection molds, die cast molds, extrusion dies, and stamping dies – many of which
are residing among foreign suppliers who are currently utilizing said tooling to produce needed components for manufacturing or assembly
within the U.S.. We are concurrently diversifying this list of raw material suppliers who can use our production tools to continue producing
our tonneau cover components in order to lower the risk that trade with any particular or preferred raw material supplier become more
expensive or difficult . During 2024, we onboarded several additional long-term suppliers for long lead-time components, began sourcing
more materials domestically to mitigate costs and supply chain risks, lowered lead times for critical components by approximately two
weeks, and successfully reduced costs in targeted raw material categories.

As
of December 31,