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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): May 15, 2025
WORKSPORT LTD.
(Exact name of registrant as specified in its charter)
| Nevada | 001-40681 | 35-2696895 | ||
|
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
2500 N America Dr
West Seneca, New York 14224
(Address of principal executive offices) (ZIP Code)
(888) 554-8789
Registrant’s telephone number, including area code
Not Applicable
(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 May 15, 2025, Worksport Ltd. (the “Company”) issued a press release: “Worksport Ltd. Reports First Quarter 2025 Results, Gross Margins Improve 157% Year-Over-Year”. 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) Exhibits.
| Exhibit No. | Description | |
| 99.1 | ||
| 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 15, 2025 | By: | /s/ Steven Rossi |
| Name: | Steven Rossi | |
| Title: | Chief Executive Officer (Principal Executive Officer) |
|
Exhibit 99.1
Worksport Ltd. Reports Q1 2025 Results: 337% Revenue Growth and 157% Margin Expansion Year-over-Year
Company Forecasts Detailed Revenue Guidance with Cash Flow Positive Objectives
West Seneca, New York, May 15, 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 its financial results for the fiscal quarter ending March 31, 2025. Building off positive traction in gross margins and a notable growth forecast for year-end 2025 revenues, the Company is targeting cash flow positive operations towards year-end.
Highlights from the Company’s Q1 2025 Performance:
| ● | Revenue Growth: Worksport reported net sales of $2.24 million in Q1 2025, representing a 337% increase from $512,000 in Q1 2024. The Company noted that Q1 typically reflects seasonally lower demand, and that its high-margin AL4 cover was released in late Q1 2025. The Al4 it is expected to drive stronger growth in Q2 2025 and beyond. |
| ● | Margin Expansion and Profitability Path: Gross margin for the quarter was approximately 18% - up from 7% in Q1 2024 and 11% in Q4 2024. The Company expects continued margin expansion in upcoming quarters. |
| ● | Working Capital: At the end of Q1 2025, Worksport reported a healthy working capital balance of $7.94MM, of which $5.1MM was cash availability. |
2025 Outlook & Path Forward
Worksport remains highly optimistic about its trajectory in 2025, with full-year revenue guidance of $20 million to $25 million, reflecting a projected 2.5x to 3x increase over 2024 results.
| ● | Core Business Expansion: Growth will be led by the Company’s tonneau cover segment, particularly the AL4, which began shipping in late Q1 2025. The Company further anticipates strong sequential growth in Q2 2025, followed by a more pronounced ramp-up in Q3 2025 and Q4 2025 this year. |
| ● | Margin Improvement: Q1 2025 gross margins improved to about 18%, up from 7% in the prior-year period. The Company is targeting 25-30% gross margins by year-end 2025. |
| ● | COR & SOLIS Contribution: The Company is targeting $2-3 million in revenue this year from its upcoming green energy product lines. While current forecasts are based on available supply chain visibility, the Company remains optimistic that geopolitical and sourcing clarity may allow it to raise this guidance later in the year. |
| ● | Cash Flow & Profitability: Achieving the upper end of this revenue range is expected to bring the Company to cash flow breakeven by year-end, supported by a stronger margin profile and operational leverage. |
| ● | 2026 Preliminary Outlook: While formal 2026 guidance will be shared in future quarters, internal models target sustained double-digit revenue growth and first full-year profitability. Key drivers include expanded COR & SOLIS availability, new product introductions, and increasing U.S. market share in tonneau covers. |
Worksport Q1 Conference Call
For detailed insights on the quarter, and management commentary, please attend the scheduled conference call. It will occur at 4:30 P.M. E.T. on Thursday May 15, 2025. You may attend with this link: [Worksport Q1 2025 Conference Call]
Investors are highly encouraged to review the prepared remarks and conference call deck will be available at Worksport’s Investor Relations website.
Worksport Quarter 1 2025 Report: Balance Sheet & Income Statement
Below is a summary excerpt from the Financial Statements section of ‘Worksport 10-Q, May 15 2025’ covering the fiscal quarter ending March 31, 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)
| March 31, 2025 | December 31, 2024 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 5,080,372 | $ | 4,883,099 | ||||
| Accounts receivable, net | 67,951 | 42,589 | ||||||
| Other receivable | 196,743 | 169,728 | ||||||
| Inventory (Note 3) | 5,725,592 | 5,190,054 | ||||||
| Prepaid expenses and deposits (Note 6) | 384,263 | 192,192 | ||||||
| Total current assets | 11,454,921 | 10,477,662 | ||||||
| Investments (Note 11) | 66,308 | 66,308 | ||||||
| Property and equipment, net (Note 4) | 13,497,178 | 13,644,226 | ||||||
| Operating lease right-of-use assets (Note 12) | 531,122 | 595,415 | ||||||
| Intangible assets, net (Note 5) | 1,113,473 | 953,049 | ||||||
| Total assets | $ | 26,663,002 | $ | 25,736,660 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 1,763,556 | $ | 1,526,630 | ||||
| Accrued liabilities and other | 852,103 | 800,283 | ||||||
| Accrued compensation | 431,479 | 377,112 | ||||||
| Long-term debt, current portion (Note 13) | 227,056 | 222,992 | ||||||
| Lease liability, current portion (Note 12) | 244,477 | 246,535 | ||||||
| Total current liabilities | 3,518,671 | 3,173,552 | ||||||
| Lease liability, excluding current portion (Note 12) | 310,337 | 368,472 | ||||||
| Long-term debt, excluding current portion (Note 13) | 2,708,497 | 4,781,005 | ||||||
| Total liabilities | 6,537,505 | 8,323,029 | ||||||
| Shareholders’ Equity | ||||||||
| Series A & B Preferred Stock, $0.001 par value, 10,010 shares authorized, 100 Series A and 0 Series B issued and outstanding, respectively (Note 7) | - | - | ||||||
| Common stock, $0.001 par value, 29,900,000 shares authorized, 4,795,521 and 4,016,205 shares issued and outstanding, respectively (Note 7) | 4,795 | 4,016 | ||||||
| Additional paid-in capital | 84,126,734 | 79,781,674 | ||||||
| Share subscriptions receivable | (1,577 | ) | (1,577 | ) | ||||
| Share subscriptions payable | 4,941,555 | 2,115,064 | ||||||
| Accumulated deficit | (68,937,430 | ) | (64,476,966 | ) | ||||
| Cumulative translation adjustment | (8,580 | ) | (8,580 | ) | ||||
| Total shareholders’ equity | 20,125,497 | 17,413,631 | ||||||
| Total liabilities and shareholders’ equity | $ | 26,663,002 | $ | 25,736,660 | ||||
The accompanying notes form an integral part of these condensed consolidated financial statements. Please click here to download the full 10-Q.
Worksport Ltd.
Condensed Consolidated Statements of Operations and Comprehensive Loss
For the Three Months Ended March 31, 2025 and 2024
(Unaudited)
| Three Months ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| Net sales | $ | 2,240,005 | $ | 512,637 | ||||
| Cost of sales | 1,843,784 | 475,181 | ||||||
| Gross profit | 396,221 | 37,456 | ||||||
| Operating expenses | ||||||||
| Research and development | 369,601 | 381,000 | ||||||
| General and administrative | 2,988,781 | 2,293,318 | ||||||
| Sales and marketing | 869,749 | 66,777 | ||||||
| Professional fees | 426,041 | 943,778 | ||||||
| Gain on foreign exchange | (1,645 | ) | (7,951 | ) | ||||
| Total operating expenses | 4,652,527 | 3,676,922 | ||||||
| Loss from operations | (4,256,306 | ) | (3,639,466 | ) | ||||
| Other income (expense) | ||||||||
| Interest expense | (195,438 | ) | (123,598 | ) | ||||
| Interest income | 8,134 | 3,054 | ||||||
| Rental income | - | 45,353 | ||||||
| Other | (16,854 | ) | - | |||||
| Total other income (expense) | (204,158 | ) | (75,191 | ) | ||||
| Net loss | $ | (4,460,464 | ) | $ | (3,714,657 | ) | ||
| Loss per share (basic and diluted) | $ | (1.05 | ) | $ | (1.75 | ) | ||
| Weighted average number of shares (basic and diluted) | 4,262,474 | 2,118,807 | ||||||
The accompanying notes form an integral part of these condensed consolidated financial statements. Please click here to download the full 10-Q.
The link below will take you to the Worksport Investor Relations Website. You may download the accompanying earnings call prepared remark and deck there, investors are highly encouraged to review this material:
| ● | Q1 2025- Earnings Call Prepared Remarks - Download Here |
For further information:
Investor Relations, Worksport Ltd. T: 1 (888) 554-8789 -128
W: investors.worksport.com W: www.worksport.com E: investors@worksport.com
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 terravisenergy.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.
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 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.