UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM
CURRENT REPORT
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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 2.02 Results of Operations and Financial Condition.
On May 16, 2024, Worksport Ltd. ("the Company") issued a press release regarding its operational performance and financial status for the quarter ending March 31, 2024. The press release also contains highlights significant achievements and developments within the Company during the first quarter. The Company also announced in the press release that intends disclose forward-looking financial guidance on May 23, 2024.
The information set forth under this Item 2.02, including Exhibit 99.1, is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section. The information set forth under this Item 2.02, including Exhibit 99.1, shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended (the "Securities Act"), or the Exchange Act, unless it is specifically incorporated by reference therein.
Item 7.01 Regulation FD Disclosure.
On May 16, 2024, the Company issued the press release described in Item 2.02 of this Form 8-K. A copy of the Press Release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information set forth under this Item 7.01, including Exhibit 99.1, is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section. The information set forth under this Item 7.01, including Exhibit 99.1, shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act, or the Exchange Act, unless it is specifically incorporated by reference therein.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| Exhibit No. | Description of Exhibit | |
| 99.1 | Press Release, dated May 16, 2024 | |
| 99.2 | Worksport Ltd. Form 10-Q for the Period Ended March 31, 2024 | |
| 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. | ||
| Date: May 16, 2024 | By: | /s/ Steven Rossi |
| Name: | Steven Rossi | |
| Title: | Chief Executive Officer (Principal Executive Officer) |
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Worksport Reports 1,506% Surge in Q1 Revenue, Announces Forward Guidance
West Seneca, New York, May 16, 2024 - Worksport Ltd. (NASDAQ: WKSP), a key US-based manufacturer and innovator of hybrid and clean energy solutions for the light truck, overlanding, and global consumer goods sectors, today reported the financial results for the first quarter of its fiscal year (Q1 FY 2024) ended March 31, 2024.
Worksport reports a 1,506% revenue increase in Q1 2024 vs. Q1 2023, while cutting 4.8% in operational expenses over the same periods. Gross margins were largely based on private label sales and are expected to improve considerably in future quarters.
Worksport will provide forward-looking guidance on May 23, 2024. Worksport's sales in April 2024 have shown positive results, underscoring the Company's accelerating growth trajectory. Management is eager to share their revenue outlook through year-end 2024, which they believe will be a considerable jump from CY 2023.
Recently signaling Worksport's stock as undervalued, the Company expects robust growth and development as its US production continues to ramp up rapidly and as the launch of its highly anticipated clean energy solutions approach quickly. The Company is expanding and working on many grants, including a $2.8MM grant from the State of New York announced last week. Worksport is preparing itself to actively tap into the multi-billion-dollar clean-energy and automotive accessory markets.
Key Highlights for Q1 2024:
Explosive Growth:
Worksport Ltd. reported a staggering 1,506% increase in North American sales for Q1 2024 from Q1 2023, with revenues soaring from $31,925 in Q1 2023 to $512,637 in Q1 2024. US revenue alone experienced a remarkable 1,766% increase in Q1 2024 compared to Q1 2023.
Worksport CEO, Steven Rossi said, "We are proud to see such encouraging early growth and demand from our efforts. In under three years while facing a difficult landscape of COVID lockdowns, hyper-inflation, and supply-chain disruptions, we have launched our new factory, developed groundbreaking products, and have set the foundation for rapid growth. This early success is only with our inaugural product and is a tremendous signal of the potential size of our business to come. We've formed an amazing team with an innovative line of products to build a very healthy business in the years ahead. Next week we will give forward-looking guidance. 2024 is Worksport's year."
Matured Supply Chain:
In Q1 2024, Worksport has strategically invested $2.9MM in producing and acquiring inventory pertaining specifically to higher margin products; Holding $6.5MM in inventory, Worksport anticipates swift inventory turnover. This investment is expected to let the Company promptly capitalize on growing demand.
B2B Expansion:
In Q1 2024, Worksport focused on ramping up production and enhancing its product line. Full-scale US production began in January 2024, and significant progress has been made since then. Worksport is preparing to sell its products through leading distributors across the United States, setting up an extensive system during Q1. These efforts are expected to drive substantial growth in the second half of 2024.
B2C Sales Campaign:
With a fully integrated production process, Worksport officially launched its e-commerce sales at the tail-end of Q1, on March 18, 2024. The B2C campaign is expected to ramp up quickly, contributing significantly to future growth. The Company will provide an update on e-commerce sales projections on May 23, 2024.
Clean Energy Product Pipeline:
With upcoming launches for our first-to-market SOLIS Solar Tonneau Cover and highly anticipated COR Modular Portable Energy System, Worksport is positioning itself at the forefront of eco-friendly automotive accessories. The Company is also aligning with global shifts towards sustainable energy solutions and continues progress on its extreme-climate heat pump. Each new product represents a multi-billion-dollar market for Worksport.
North American Expansion:
To increase its presence in the US and Canada, Worksport has engaged in several strategic collaborations with several leading distributors and mass merchandisers, including an agreement with Dix Performance North to expand its distribution network across Canada. This aligns with the Company's goals to enhance product accessibility and visibility. The Company will continue efforts on this front.
Key Press-Releases released in 2024:
Read all press releases: Link to press releases
Worksport will provide forward-looking guidance for year-end on May 23, 2024, through a press release before market opens. The Company anticipates a landmark year ahead.
Subscribe To Our Investor Newsletter: Link to Newsletter
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, and NP (Non-Parasitic), Hydrogen-based true green energy solutions for the sustainable, clean energy, and automotive industries. 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 RAM, Chevrolet, and GMC models from General Motors, as well as Ford, Jeep, Nissan, and Toyota pickup trucks. 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 NP (Non-Parasitic), Hydrogen-based technology. Terravis Energy's website is terravisenergy.com. For more information, please visit investors.worksport.com.
Connect with Worksport
Please follow the Company's social media accounts on X (previously Twitter), Facebook,
LinkedIn, YouTube, and Instagram (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 investors.worksport.com. 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.
| Product social media | Investor social media |
| X (previously Twitter) | |
| Facebook YouTube |
LinkedIn Link to Newsletter |
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.
For additional information, please contact:
For additional information, please contact:
Steven Obadiah, Investor Relations, Worksport Ltd. T: 1 (888) 554-8789 -128 W: investors.worksport.comW: www.worksport.com E: investors@worksport.com
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," "expect," "future," "intend," "plan," "project," "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 condition 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 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 www.sec.gov. 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.