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2024-12-06
0001096275
Worksport Ltd.
0001096275
2024-12-06
2024-12-06
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):
December 6, 2024
WORKSPORT LTD.
(Exact name of registrant as specified in its charter)
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Nevada
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001-40681
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35-2696895
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| (State or other jurisdiction |
(Commission |
(IRS Employer |
| of incorporation) |
File Number) |
Identification No.) |
2500 N America Dr
West Seneca, New York, United States
14224
(Address of principal executive offices) (ZIP Code)
Registrant’s telephone number, including area code: (888) 554-8789
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:
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Trading Symbols |
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Name of each exchange on which registered |
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Common
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WKSP
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The Nasdaq Stock Market LLC
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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 7.01 Regulation FD Disclosure.
On December 6, 2024, Worksport Ltd. (the "Company") issued a press release: "Worksport ($WKSP) Sees 51% B2C and 60% B2B Sales Growth in November, Boosting Margins, and Accelerating Brand Expansion". A copy of the press release is attached hereto as Exhibit 99.1.
The information under Item 7.01 of this Current Report on Form 8-K and the exhibit attached hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, or incorporated by reference into any of the Company's filings under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in any such filing.
Item 9.0 Financial Statements and Exhibits.
(d) Exhibits.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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WORKSPORT LTD. |
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| Date: December 6, 2024 |
By: |
/s/ Steven Rossi |
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Name: |
Steven Rossi |
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Title: |
Chief Executive Officer
(Principal Executive Officer) |
Worksport ($WKSP) Sees 51% B2C and 60% B2B Sales Growth in November, Boosting Margins, and Accelerating Brand Expansion
Year-End Momentum and 3 Upcoming Products Position Worksport for a Strong 2025
West Seneca, New York, December 6, 2024 - 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, is pleased to announce continued significant sales growth in its business-to-consumer (B2C) and business-to-business (B2B) segments for October and November 2024. The Company also saw improved gross margins, a key objective in its strategic shift of selling exclusively the higher margin Worksport branded products, discontinuing all current lower margin private label programs.
Steven Rossi, Chief Executive Officer of Worksport, stated, "During this holiday period, demand surged to over three times the all-time daily sales record we set in Q3. This remarkable growth has exceeded our expectations and sets an encouraging pace for achieving even higher future sales targets."
Sales Growth Highlights
• B2C Sales Momentum:
o October 2024: B2C sales grew 16% compared to September.
o November 2024: B2C sales rose an impressive 51% from September, reflecting growing consumer adoption of Worksport's high-quality, American-made products. Earlier this month (https://www.globenewswire.com/news-release/2024/11/22/2985952/0/en/Worksport-Increases-Production-Capacity-to-Meet-Growing-Sales-Demand.html), Worksport announced an ambitious target to grow its average monthly B2C sales in Q3 by 100% to $1M per month. In very short time, Worksport has nearly achieved this objective.
• B2B (Non-Private Label) Surge:
o October 2024: Non-private label B2B sales increased 38% compared to September.
o November 2024: Non-private label B2B sales saw a 60% jump from September, demonstrating strong demand from dealers and distributors for Worksport-branded tonneau covers.
The upcoming launch (https://www.globenewswire.com/news-release/2024/10/29/2970733/0/en/Worksport-Ltd-Sees-Over-200-Growth-in-B2B-Sales-Initiates-Pre-Order-Campaign-for-New-AL4-Tonneau-Cover.html) of the premium AL4 product, anticipated to surpass the demand for the AL3, positions Worksport for substantial growth. Leveraging the sustained momentum of its tonneau cover sales, Worksport is also preparing for the full market launch of its groundbreaking clean-tech power generation system (https://www.globenewswire.com/news-release/2024/09/19/2948941/0/en/Worksport-Initiates-Alpha-Launch-of-Solis-Solar-Array-and-COR-Mobile-Battery-Power-Generator.html), SOLIS and COR, in 2025. These innovative products are expected to solidify Worksport's position as a leader in the clean energy and automotive accessory markets.
Strategic Pivot to Enhance Margins and Brand Recognition
In line with its long-term growth strategy, Worksport has strategically discontinued its private label sales, focusing only on Worksport branded B2C and B2B channels to capture higher margins and strengthen brand identity. This shift is already yielding results, with November 2024 gross margins improving notably compared to Q3 2024 levels. The strategic reduction of revenue from the lower margin private label sales has already been vastly replaced by strong growth in Worksport's higher margin branded sales. Growth in the B2C and B2B segments are projected to be the driving force behind Worksport's 2025 path to cash flow positivity.
Rossi added, "We're betting on ourselves and our amazing brand, products, and state of the art U.S factory. By strategically reducing private label production, we are creating a stronger foundation for Worksport's brand while driving profitability. The improvements in gross margins are just the beginning. We are positioning ourselves for sustained growth across both B2C and B2B markets for the foreseeable future. There is healthy demand for what we're making; the best of our products is yet to come with Solis, COR, and AL4."
Outlook: Sustained Growth and Momentum
Worksport anticipates continued improvements in gross margin as the Company's branded products gain further traction in the market and further economies of scale are met in the factory. The surge in branded sales during October and November 2024 reflects the success of Worksport's aggressive sales initiatives and its commitment to delivering innovative, high-quality products to customers and business partners.
The Company remains confident in its ability to expand market share and enhance shareholder value as it executes its strategic vision.
Key 2024 Press-Releases
- December 5: Worksport Adopts Changes in Corporate Treasury (https://www.newsfilecorp.com/release/232573/Worksport-WKSP-To-Adopt-Cryptocurrency-Bitcoin-and-XRP-for-Corporate-Treasury)
- November 22: Worksport Announces 30% Increase in Production Capacity (https://www.globenewswire.com/news-release/2024/11/22/2985952/0/en/Worksport-Increases-Production-Capacity-to-Meet-Growing-Sales-Demand.html)
- November 21: CEO Insider Purchase; Worksport Investigates Short Selling (https://www.newsfilecorp.com/release/230775)
- October 29: 200% Growth in B2B Sales; Pre-Order Campaign Initiated For AL4 (https://www.globenewswire.com/news-release/2024/10/29/2970733/0/en/Worksport-Ltd-Sees-Over-200-Growth-in-B2B-Sales-Initiates-Pre-Order-Campaign-for-New-AL4-Tonneau-Cover.html)
- October 17: Nasdaq Grants Extension To Regain Compliance (https://www.globenewswire.com/news-release/2024/10/17/2965235/0/en/Worksport-Ltd-Granted-Nasdaq-Extension-to-Regain-Compliance-with-1-Minimum-Bid-Price.htm)
- October 17: $2MM+ Projected Savings From New Strategic Initiative (https://investors.worksport.com/worksport-announces-accelerated-path-to-profitability-with-2m-in-projected-savings-strengthens-financial-stability-ahead-of-upcoming-product-launches/)
- September 30: Update On ISO Certification (https://www.globenewswire.com/news-release/2024/09/30/2955171/0/en/Worksport-Provides-Progress-Update-on-ISO-9000-Certification.html)
- September 19: Alpha Launch of SOLIS & COR (https://www.globenewswire.com/news-release/2024/09/19/2948941/0/en/Worksport-Initiates-Alpha-Launch-of-Solis-Solar-Array-and-COR-Mobile-Battery-Power-Generator.html)
- September 11: Worksport COR as an EV Range Extender for Tesla Model 3 (https://www.newsfilecorp.com/release/222838/Worksport-Announces-Successful-Level-1-Tesla-Charging-with-COR-Battery-Generator)
- August 14: Record High Revenues; 275% Q2 Growth (https://investors.worksport.com/worksport-wksp-announces-record-high-revenues-275-q2-growth/)
- May 8: Worksport Awarded $2.8MM Grant (https://investors.worksport.com/worksport-announces-2-8-million-grant-from-new-york-state-plans-significant-growth-innovation/)
Read all Worksport press releases: [Link to All Press Releases] (https://www.nasdaq.com/market-activity/stocks/wksp/press-releases?page=1&rows_per_page=25).
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 all major truck models and is gaining traction with newer truck makers including the 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 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.
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Product social media
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Investor social media
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Instagram
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X (formerly Twitter)
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Facebook
YouTube
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LinkedIn
Link to Newsletter
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Investors and others should note that the Company announces material financial information to our investors using our investor relations website, press releases, 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:
Investor Relations, Worksport Ltd. T: 1 (888) 554-8789 -128 W: investors.worksport.com W: 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,", "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 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.
Worksport acknowledges the inherent risks of investing in cryptocurrency, including market volatility and regulatory uncertainties, and is committed to managing these risks through oversight and diversification strategies. The decision to pursue this investment has been reviewed and approved by the Board of Directors of Worksport and complies with the Company's corporate governance policies.
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