Company: WKSP
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000850
Chunk: 319

Company: Worksport Ltd
Filing Date: 2025-03-27
Form: 10-K
Item: Item 7
Chunk 319
---
 the U.S. was $8,397,570,
compared to $1,522,821 for the same period in 2023, an increase of 451%. For the year ended December 31, 2024, net sales generated in
Canada was $67,519, compared to $6,811 for the same period in 2023, an increase of 891%. For the year ended December 31, 2024, net sales generated outside the U.S. and Canada was $19,290.

Net
sales increased the year ended December 31, 2024 compared to the same period the prior year due to increased sales of tonneau covers
to a private label partner, various dealers and distributors, and end users via the Company’s online marketplace. The Company continues
to focus on establishing new and strengthening existing business-to-consumer and business-to-business channels while also strengthening
customer support to increase customer satisfaction and enable high product turnover. Worksport has successfully bolstered its business-to-consumer
sales channels in 2024, and it is now focusing on increasing cost efficiencies in these sales channels as well as establishing new business-to-business
sales channels. For business-to-consumer channels, we are focused on lowering our customer acquisition cost throughout 2025. For business-to-business
channels, we have assembled a strong team of both internal and external sales representatives, and we are actively presenting our product
offerings to various dealers, wholesalers, and retailers across the U.S. and Canada. We intend to continue gradually increasing output
capacity through refined production processes and increased personnel.

36

Net
sales from online retailers of our products increased from $104,352 in 2023 to $4,930,822 in 2024, an increase of 4,625%. Online retailers
accounted for 58% of total net sales for the year ended December 31, 2024 compared to 7% for the year ended December 31, 2023. Distributor
sales increased 6,120% for the year ended December 31, 2024 compared with the year ended December 31, 2023 with net sales of $423,627
and $6,811, respectively. Private label sales accounted for 37% or $3,129,930 of net sales for the year ended December 31, 2024. We expect
to continue to grow our fields of business as we develop unique products with enhanced utility to offer to other