# EDGAR Filing Document

**Accession Number:** 0001096275
**File Stem:** 0001641172-25-023335
**Filing Date:** 2025-8
**Character Count:** 20297
**Document Hash:** 7da9249aabebd3370aecf6ddf5bb4d79
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001641172-25-023335.hdr.sgml**: 20250813

**ACCESSION NUMBER**: 0001641172-25-023335

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 13

**CONFORMED PERIOD OF REPORT**: 20250813

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250813

**DATE AS OF CHANGE**: 20250813

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Worksport Ltd
- **CENTRAL INDEX KEY:** 0001096275
- **STANDARD INDUSTRIAL CLASSIFICATION:** MOTOR VEHICLE PARTS & ACCESSORIES [3714]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 650782227
- **STATE OF INCORPORATION:** NV
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-40681
- **FILM NUMBER:** 251209051

**BUSINESS ADDRESS:**
- **STREET 1:** 2500 N AMERICA DR.
- **CITY:** WEST SENECA
- **STATE:** NY
- **ZIP:** 14224
- **BUSINESS PHONE:** 1-888-554-8789

**MAIL ADDRESS:**
- **STREET 1:** 2500 N AMERICA DR.
- **CITY:** WEST SENECA
- **STATE:** NY
- **ZIP:** 14224

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Worksport, Ltd
- **DATE OF NAME CHANGE:** 20200702

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Franchise Holdings International, Inc.
- **DATE OF NAME CHANGE:** 20090512

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** TMANGLOBAL COM INC
- **DATE OF NAME CHANGE:** 19991005

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

Date of Report (Date of earliest event reported): **<u>August 13, 2025</u>**

**<u>WORKSPORT LTD.</u>**

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **<u>Nevada</u>** | **<u>001-40681</u>** | **<u>35-2696895</u>** |
| (State or other jurisdiction<br> of incorporation) | (Commission<br> File Number) | (IRS Employer<br> Identification No.) |

---

**2500 N America Dr**

**<u>West Seneca</u>** **<u>, New York</u><u>14224</u>** (Address of principal executive offices) (ZIP Code)

**<u>(888) 554-8789</u>**

Registrant's telephone number, including area code

**<u>Not Applicable</u>** (Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbols** | **Name of each exchange on which registered** |
| Common | WKSP | The Nasdaq Stock Market LLC |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b -2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

**Item 7.01 Regulation FD Disclosure.**

On August 13, 2025, Worksport Ltd. (the "Company") issued a press release: "**Worksport Posts Q2 2025 Results: Gross Profit Increases 173%, Revenue Jumps 83%, Margin Expands 870 bps, Operating Loss Improves 15% [QoQ]".** A copy of the press release is attached hereto as Exhibit 99.1.

The information under Item 7.01 of this Current Report on Form 8-K and the exhibit attached hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, or incorporated by reference into any of the Company's filings under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in any such filing.

**Item 9.01 Financial Statements and Exhibits.**

(d) *<u>Exhibits</u>*.

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 99.1 | [Press Release dated August 13, 2025, "**Worksport Posts Q2 2025 Results: Gross Profit Increases 173%, Revenue Jumps 83%, Margin Expands 870 bps, Operating Loss Improves 15% \[QoQ\].**"](ex99-1.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |

---

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **WORKSPORT LTD.** | **WORKSPORT LTD.** |
| Date: August 13, 2025 | By: | */s/ Steven Rossi* |
|  | Name: | Steven Rossi |
|  | Title: | Chief Executive Officer<br> (Principal Executive Officer) |

---

## Exhibit 99.1

**Exhibit 99.1**

**Worksport Posts Q2 2025 Results: Gross Profit Increases 173%, Revenue Jumps 83%, Margin Expands 870 bps, Operating Loss Improves 15% [QoQ].**

Company Reaffirms ≥$20 Million 2025 Revenue Target and Highlights Clear Path to Near-Term Operational Cash Flow Positivity**<br>** 

<br> West Seneca, New York, August 13, 2025 — Worksport Ltd. **(NASDAQ: WKSP)** ("Worksport" or the "Company"), a U.S. based manufacturer and innovator of hybrid and clean energy solutions for the light truck, overlanding, and global consumer goods sectors, today announced record financial and operational results for the **quarter ended June 30, 2025 ("Q2 2025")** and reaffirmed full-year 2025 revenue guidance of at least $20 million.

**Q2 2025 Highlights**<br>

Worksport delivered its highest quarterly revenue in Company history, with **net sales of $4.10 million**, up **114% year-over-year** and **83% sequentially**. Gross margin expanded 8.7 percentage points from Q1 to 26.4%, driving a **173% increase in gross profit** to **$1.08 million**. Operating loss improved 15% QoQ to $(3.62) million, while **net loss narrowed** ~16% to $(3.73) million. Operating cash use improved 19% to $(3.10) million, and total **liquidity stood at ~$6.1 million**. Inventory remained stable at **$5.88 million**, with ~90% in raw materials to support production ramp-up.

The Company achieved **three consecutive monthly sales records** in Q2 — April **$1.22M**, May **$1.28M**, and June **$1.60M** — equating to a **$19.2M annualized run rate** (*non-GAAP*). Year-to-date, Worksport has added **450+ new dealer accounts**, with its network at full activation capable of generating **~$21.5M** in annual repeatable revenue (excluding B2C and new dealer accounts).

**Additional Operational Highlights:**

● **Production:** Q3 2025 output is expected to be notably stronger than Q2. July output averaged **115-130 units/day**, peaking at **160 units/day** and by late Q3 targeting **200 units/day**.

● **Innovation Pipeline:** HD3 heavy-duty tonneau cover on track for **Q3 launch**; SOLIS (solar tonneau) and COR (portable power) on track for **Q4 launch**; AetherLux cold-climate heat pump advancing to **commercial testing**.

● **Tariff Management:** Estimated **5-10%** inflationary cost impact offset by operational efficiencies; the Company is evaluating additional strategies to further mitigate effects across upcoming clean-tech products.

**Management Commentary**

**Steven Rossi, Founder & CEO of Worksport,** said:

"Q2 shows our model working at scale - **demand is outpacing supply**, margins are expanding, and our U.S. facility continues to ramp efficiently. With three straight monthly sales records and gross margin now at 26.4%, we're executing toward operational cash-flow positivity while preparing to launch HD3, SOLIS, and COR. We believe our American-made tonneau business alone can carry Worksport to **profitability in 2026**, with clean-tech adding meaningful upside."

**Michael Johnston, CFO,** added:

"We delivered strong sequential leverage, including gross profit up 173% with operating loss improved 15%, and we tightened operating cash use by 19%. Liquidity remains stable with approximately $6.1 million available, and our inventory profile supports growth without significant near-term working capital. We reaffirm our target of at least $20 million in revenue this year and expect gross margin to approach 30% by year-end, with operating cash-flow breakeven targeted for late Q4 2025 or early Q1 2026."

**Outlook & Guidance<br>** 

<br> ● **2025 Revenue:** Reaffirmed at **≥$20 million**.

● **Margins:** Expect continued expansion toward **30%+ gross margin by year-end**.

● **Cash Flow:** Targeting **operating cash-flow breakeven** by **Q4 2025 / Q1 2026**.

● **2026 Profitability Drivers:** Initial **$2-3M** revenue expected from first batches of  **<u>COR & SOLIS</u>** ; <u>AetherLux</u> expected to contribute meaningfully in 2026.

**Capital & Liquidity:**

● **Reg A Offering:** Company **expects to close** the current  **<u>Regulation A</u>** <u>offering</u> **by end of August 2025**; if fully subscribed (**$10M**), management believes Worksport is **fully funded through 2025 and into 2026**.

● **Warrants:** Outstanding warrants (**$4.50-$6.70** exercise ranges) may provide 2026 growth capital. While currently not in the money, the Company believes current share price is undervalued and may be better reflected as the year goes on. Per the current business plan, Worksport intends to **limit notable equity dilution** while pursuing disciplined growth.

**Worksport Q2 2025 Conference Call**

For detailed insights on the quarter, and management commentary, please attend our scheduled conference call. It will occur at **1PM ET on Wednesday August 13, 2025.** You may attend with this registration link**: <u>[Conference Call Registration]</u>**

Accompanying prepared remarks and deck will be available at 1pm ET: <u>[here]</u>

**Worksport Q2 2025 Report: Balance Sheet & Income Statement**

Below is a summary excerpt from the Financial Statements section of **<u>Worksport 10-Q [June 30, 2025]</u>** covering the quarter ending June 30, 2025. Investors are encouraged to review the complete 10-Q filing and the accompanying prepared remarks, both linked above, for full context and analysis.

**Worksport Ltd.** 

**Condensed Consolidated Balance Sheets**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **June 30, 2025<br> (Unaudited)** | **December 31, <br> 2024** |
| **ASSETS** |  |  |
| **Current assets** |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $1393140 | $4883099 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net | 295961 | 42589 |
| &nbsp;&nbsp;&nbsp;Other receivable | 228086 | 169728 |
| &nbsp;&nbsp;&nbsp;Inventory (Note 3) | 5881513 | 5190054 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and deposits (Note 6) | 692292 | 192192 |
| **Total current assets** | 8490992 | 10477662 |
| **Investments (Note 11)** | 122681 | 66308 |
| **Property and equipment, net (Note 4)** | 13218121 | 13644226 |
| **Operating lease right-of-use assets (Note 12)** | 731633 | 595415 |
| **Intangible assets, net (Note 5)** | 1016710 | 953049 |
| &nbsp;&nbsp;&nbsp;**Total assets** | $23580137 | $25736660 |
| **LIABILITIES AND SHAREHOLDERS' EQUITY** |  |  |
| **Current liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $1973131 | $1526630 |
| &nbsp;&nbsp;&nbsp;Accrued liabilities and other | 682781 | 800283 |
| &nbsp;&nbsp;&nbsp;Accrued compensation | 517475 | 377112 |
| &nbsp;&nbsp;&nbsp;Long-term debt, current portion (Note 13) | 235865 | 222992 |
| &nbsp;&nbsp;&nbsp;Lease liability, current portion (Note 12) | 323698 | 246535 |
| &nbsp;&nbsp;&nbsp;**Total current liabilities** | 3732950 | 3173552 |
| **Lease liability, excluding current portion (Note 12)** | 437266 | 368472 |
| **Long-term debt, excluding current portion (Note 13)** | 2093363 | 4781005 |
| **Total liabilities** | 6263579 | 8323029 |
| **Shareholders' Equity** |  |  |
| Series A, B & C Preferred stock, $0.001 par value, 10,000,000 shares authorized, 100 Series A, 0 Series B, and 49,335 Series C issued and outstanding, respectively (Note 7) | 49 |  |
| Common stock, $0.001 par value, 45,000,000 shares authorized, 5,519,130 and 4,016,205 shares issued and outstanding, respectively (Note 7) | 5518 | 4016 |
| Additional paid-in capital | 87970432 | 79781674 |
| Share subscriptions receivable | (1577) | (1577) |
| Share subscriptions payable | 2022630 | 2115064 |
| Accumulated deficit | (72671914) | (64476966) |
| Cumulative translation adjustment | (8580) | (8580) |
| **Total shareholders' equity** | 17316558 | 17413631 |
| **Total liabilities and shareholders' equity** | $23580137 | $25736660 |

---

The accompanying notes form an integral part of these condensed consolidated financial statements. Please click <u>here</u> to download the full 10-Q.

**Worksport Ltd.** 

**Condensed Consolidated Statements of Operations and Comprehensive Loss**

**For the Three and Six Months Ended June 30, 2025 and 2024**

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months ended June 30,** | **Three Months ended June 30,** | **Six Months ended June 30,** | **Six Months ended June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| **Net sales** | $4104958 | $1921539 | $6344963 | $2434176 |
| &nbsp;&nbsp;&nbsp;**Cost of sales** | 3022846 | 1624910 | 4866630 | 2100091 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Gross profit** | 1082112 | 296629 | 1478333 | 334085 |
| **Operating Expenses** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Research and development | 304833 | 1045864 | 674434 | 1415465 |
| &nbsp;&nbsp;&nbsp;General and administrative | 2454055 | 1900522 | 5442835 | 4205239 |
| &nbsp;&nbsp;&nbsp;Sales and marketing | 1305355 | 478792 | 2175104 | 545569 |
| &nbsp;&nbsp;&nbsp;Professional fees | 637493 | 766563 | 1063534 | 1710341 |
| &nbsp;&nbsp;&nbsp;(Gain) loss on foreign exchange | (1993) | 15636 | (3638) | 7685 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total operating expenses** | 4699743 | 4207377 | 9352269 | 7884299 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Loss from operations** | (3617631) | (3910748) | (7873936) | (7550214) |
| **Other income (expense)** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense | (128156) | (134164) | (323594) | (257762) |
| &nbsp;&nbsp;&nbsp;Interest income | 11303 |  | 19437 | 3054 |
| &nbsp;&nbsp;&nbsp;Rental income |  | 31513 |  | 76866 |
| &nbsp;&nbsp;&nbsp;Other | - | - | (16855) | - |
| &nbsp;&nbsp;&nbsp;**Total other income (expense)** | (116853) | (102651) | (321012) | (177842) |
| **Net loss** | $(3734484) | $(4013399) | $(8194948) | $(7728056) |
| Loss per share (basic and diluted) | $(0.71) | $(1.55) | $(1.71) | $(3.28) |
| Weighted average number of shares (basic and diluted) | 5285705 | 2595863 | 4778426 | 2357335 |

---

The accompanying notes form an integral part of these condensed consolidated financial statements. Please click <u>here</u> to download the full 10-Q.

**For further information:**

Investor Relations, Worksport Ltd. T: 1 (888) 554-8789 -128

W: <u>investors.worksport.com</u> W: <u>www.worksport.com</u> E: <u>investors@worksport.com</u>

**Join:** <u>Worksport's Newsletter</u>

**About Worksport**

Worksport Ltd. (Nasdaq: WKSP), through its subsidiaries, designs, develops, manufactures, and owns the intellectual property on a variety of tonneau covers, solar integrations, portable power systems, and clean heating & cooling solutions. Worksport has an active partnership with Hyundai for the SOLIS Solar cover. Additionally, Worksport's hard-folding cover, designed and manufactured in-house, is compatible with all major truck models and is gaining traction with newer truck makers including the electric vehicle (EV) sector. Worksport seeks to capitalize on the growing shift of consumer mindsets towards clean energy integrations with its proprietary solar solutions, mobile energy storage systems (ESS), and Cold-Climate Heat Pump (CCHP) technology. Terravis Energy's website is <u>terravisenergy.com</u>.

**Connect with Worksport**

Please follow the Company's social media accounts on <u>X (previously Twitter), Facebook, LinkedIn, YouTube</u>, and <u>Instagram</u> (collectively, the "Accounts"), the links of which are links to external third-party websites, as well as sign up for the Company's newsletters at <u>investors.worksport.com</u>.

**Social Media Disclaimer**

The Company does not endorse, ensure the accuracy of, or accept any responsibility for any content on these third-party websites other than content published by the Company. Investors and others should note that the Company announces material financial information to our investors using our investor relations website, press releases, Securities and Exchange Commission (SEC") filings, and public conference calls and webcasts. The Company also uses social media to announce Company news and other information. The Company encourages investors, the media, and others to review the information the Company publishes on social media. The Company does not selectively disclose material non-public information on social media. If there is any significant financial information, the Company will release it broadly to the public through a press release or SEC filing prior to publishing it on social media.

**Forward-Looking Statements**

The information contained herein may contain "forward-looking statements." Forward-looking statements reflect the current view about future events. When used in this press release, the words "anticipate," "believe," "estimate," "scheduled," "expect," "future," "intend," "plan," "project," "envisioned," "should," or the negative of these terms and similar expressions, as they relate to us or our management, identify forward-looking statements. These statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial situation may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (i) supply chain delays; (ii) acceptance of our products by consumers; (iii) delays in or nonacceptance by third parties to sell our products; and (iv) competition from other producers of similar products. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the SEC, including, without limitation, our latest Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC's web site at <u>www.sec.gov</u>. As a result of these matters, changes in facts, assumptions not being realized or other circumstances, the Company's actual results may differ materially from the expected results discussed in the forward-looking statements contained in this press release. The forward-looking statements made in this press release are made only as of the date of this press release, and the Company undertakes no obligation to update them to reflect subsequent events or circumstances.