Worksport Ltd. (Nasdaq: WKSP; WKSPW) (“Worksport” or the
“Company”) is pleased to report its financial results for the third
quarter of its fiscal year (Q3 FY2023) ended September 30, 2023.
Key Q3 highlights include:
Significant Revenue Growth
For Q3 2023, Worksport Ltd. reported a
remarkable year-over-year total North American sales increase of
approximately 2399%, with revenues rising from $18,350 in Q3 FY2022
to $458,483 in Q3 FY2023. When accounting for just U.S. revenue,
there was an impressive increase of 3359%, from $13,134 in Q3
FY2022 to $454,258 in Q3 FY2023.
“The Q3 revenue growth reflects Worksport’s
growing production, and the start of large sales orders being
fulfilled,” said Worksport CEO Steven Rossi. “It demonstrates
Worksport’s expanding market presence and effective sales
strategies that are based on market demand for innovative products
for the global light truck market.”
Expansion in Product
Offerings
“The Company's commitment to execution,
innovation and expanding its product portfolio is expected to be
the beginning of much bigger orders to come,” Rossi said. “The
launch of the SC4 PRO, a new product line in June 2023, and
identifying a top-tier solar panel provider for the SOLIS Solar
Tonneau Cover in September 2023, underscore the success of that
commitment. Worksport has identified and penetrated new
business-to-consumer and business-to-business sales channels.”
Significant Purchase Orders
Following the Company’s initiating manufacturing
at its 222,000 sq. ft. West Seneca, N.Y. manufacturing facility, in
July 2023, Worksport received $720,000 in purchase orders for its
soft-folding tonneau covers and a staggering $1,600,000 order for
its advanced hard-folding tonneau covers, reflecting a glimpse at
the strong market demand for its innovative products, made from
domestic and imported components. The orders come from both from a
national U.S. customer and reseller of automotive
aftermarket accessories.
Strategic Partnerships and
Agreements
In another strong revenue-generating
development, during Q3 FY2023, the Company signed a long-term
supply agreement that starts with a projected annual $16,000,000 in
sales for its cutting-edge and advanced hard-folding and
soft-folding truck bed covers with just one of its major U.S.-based
aftermarket customers, further highlighting the potential of its
new and existing products.
“What is remarkable about this $16 million
estimate is that it does not include expectations of year-over-year
growth in sales,” Rossi said. “It is based on the customer’s
forecast on an annualized basis and going forward could possibly
exceed that estimate by a significant margin.”
Increased Manufacturing and R&D
Capabilities
The establishment of a state-of-the-art R&D
facility in Springfield, Missouri, and the completion of a custom
manufacturing line highlight Worksport's dedication to quality and
innovation during Q3 FY 2023.
“The strategic Springfield location in the U.S.
heartland is known for its vibrant truck-loving culture,
positioning the Company at the center of its target demographic,”
Rossi said. “It will be staffed initially by
seasoned Worksport engineers separate from the mainstream
factory, embodying a depth of knowledge and proficiency that would
be difficult to duplicate elsewhere.”
At the same time, during the quarter, the
Company’s state-of-the-art manufacturing facility in Western New
York roared to life, with the first custom manufacturing line
becoming operational and four more planned for the near future.
“The beginning of American production was a transformative event in
the life of the company,” Rossi said. “With each successive line,
the Company is poised to increase its capacity, reinforcing its
market position, reputation for quality, and readiness to meet
escalating demand.”
Made in the USA
Certification
The official qualification for the esteemed
“Made in the USA” (using domestic and foreign components)
designation for its line of hard tonneau covers in July 2023
showcases the company's commitment to domestic manufacturing
excellence. The designation ensures the Company’s products are
crafted and assembled in the United States, utilizing both
domestic and imported components. According to survey research,
consumers prefer this designation, driven by the belief that
products having U.S. origin and assembly are of superior
quality.
Financing and Capital Position
Successful capital raising activities, including
the sale of common stock and warrants, some subsequent to the end
of Q3 FY2023, have positioned the company to fund its strategic
initiatives.
“The third quarter has demonstrated the
Company’s capabilities in action. Worksport continues to deliver on
its promises, and is functioning as a complete organization, with
impressive firm product orders, manufacturing in operation,
progress in SOLIS and COR reaching an Alpha launch and financing in
place,” said Rossi. “We believe this quarter’s impressive revenue
increases are expected to be part of an upward trend as we ramp up
production and fulfill product orders. Imagine a hockey stick:
that’s how we anticipate our growth curve to look. We are more
committed than ever in providing unyielding value and growth to our
investors.”
As always, Worksport will continue to
update investors and shareholders on our progress with all products
as soon as information is available. For further information,
please visit Worksport’s official website for investors
at investors.worksport.com.
For additional information, please
contact:
Steven ObadiahInvestor RelationsWorksport Ltd.T:
1 (888) 554-8789E: investors@worksport.comW:
investors.worksport.comW: www.worksport.com
About Worksport
Worksport Ltd. (Nasdaq: WKSP; WKSPW),
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 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.
Worksport strives to provide frequent
updates of its operations to its community of investors, clients,
and customers to maintain the highest level of visibility.
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,” or the negative of these terms and
similar expressions, as they relate to us or our management,
identify forward looking statements. Forward-looking 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: a
delay in the production of the T3 tonneau cover, supply chain
delays, acceptance of our T3 tonneau cover and other products by
consumers, delays in or nonacceptance by third parties to sell our
products, 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 Securities and Exchange
Commission (SEC), including our Annual Report on Form 10-K and our
subsequent 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. The Company encourages you to
consider all of these risks, uncertainties and other factors
carefully in evaluating the forward-looking statements contained in
this press release. 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.
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