Worksport Ltd. (Nasdaq:WKSP) (“Worksport” or the “Company”) is
pleased to report revenue (unaudited) for the fourth quarter of its
fiscal year (Q4 FY2023) ended December 31, 2023 has increased by
2,050% YOY, as well as other key highlights:
Significant revenue increase
Worksport revenues in Q4 2023 increased a
remarkable 2,050% year-over-year to US$839,690 from US$39,063 for
the same Q4 period in 2022. This followed another momentum-related
YOY increase when revenue in Q3 FY2023 increased approximately
2,400%, with revenues rising to US$458,483 when compared
with US$18,350 in Q3 FY2022. As a reflection of Worksport’s
on-going production ramp-up and projected sales, the Company
enjoyed an 83% quarter-to-quarter increase in North American
revenues to US$839,716 in Q3 2023, compared with US$458,483 in Q3
2023.
“Management anticipates revenues continuing to
multiply into 2024 and beyond,” said Worksport CEO Steven Rossi.
“These revenues reflect the continuing strong ramp up of our
production lines as we add more and more manufacturing
capacity.”
Also reflecting the Company’s momentum, for the
2023 fiscal year, revenues advanced 1,213% to US$1,529,975 from
US$116,502 for FY 2022.
“Fiscal year 2024 is expected to be the year
we’ve been planning for and anticipating for some time,” Rossi
said. “Everyone at the Company is experiencing the palpable
excitement of large orders for our ‘Made in the USA’, using
domestic and foreign components, designation for the Company’s line
of innovative hard tonneau covers, which showcases the Company's
commitment to domestic manufacturing excellence.”
“Going against the grain and conventional wisdom
by building a product in the U.S. that we anticipate will set a new
standard for affordable and innovative light truck bed covers is a
remarkable feat,” added Rossi. “It will take advantage of
forthcoming progress in automation, and we believe it’s the first
sustainable tonneau cover that uses very little harsh,
non-recyclable materials and is over 90% recyclable, unlike
competing products that end up in landfill. We are very proud of
this achievement, another part of our drive toward sustainability
in all product lines.”
Summary
-
2,050% YOY FY Q4 revenue advance, follows 2,400% rise in YOY Q3
revenue
-
83% increase from Q3 2023 to Q4 2023 revenue demonstrates current
sales momentum
-
Large outgoing orders and ongoing sales for light truck covers
-
Second production line planned to create Made In USA products at
West Seneca, N.Y. manufacturing facility
These large revenue increases were due to
initial outgoing orders for the Company’s FC3 tri-fold aluminum
light truck covers and on-going SC3 soft cover sales resulting from
a long-term supply agreement.
During Q4 2023, the Company completed and
launched a second production line in its state-of-the art 220,00
sq. ft. state-of the art manufacturing facility in West Seneca,
N.Y. “The Company believes the second production line is a
significant advance in sustainable automotive innovation, marking a
pivotal moment in the Company's expansion strategy,” Rossi
said.
COR Battery System Moves Closer to Alpha
Release
During Q4 2023, the Company proudly announced
that the advanced COR battery system will be designed, developed,
and assembled in within North America combining domestic and
international components. “By assembling the COR system in North
America, Worksport has demonstrated its skill in handling the
demands of such advanced circuitry, and we are very proud of that
achievement.”
Subsequent to the fourth quarter’s end,
Worksport announced a strategic partnership with NeuronicWorks
Inc., a Toronto-based high-tech custom electronic product
development and manufacturing company, to manufacture and assemble
the Alpha Release of the COR battery system. The two
companies will collaborate in implementing a rigorous testing and
quality control process to ensure the highest quality standards for
this eagerly anticipated product, the companion to the SOLIS solar
light truck tonneau cover.
“We have been experiencing consistent interest
for the COR battery system and the SOLIS solar cover,” Rossi said.
“We are moving closer and closer to an Alpha release of the COR
battery system, where the product will be placed in real-world
scenarios, generating invaluable feedback, serving as a cornerstone
for additional improvement. This process will bring the Company
closer to its ultimate goal — the incredibly exciting official mass
market release of the COR system and the SOLIS solar cover. When
that does occur, it will truly be a great period, supporting
Worksport’s future and demonstrating on how firmly we deliver on
our promises to investors, shareholders, and employees.”
Further Advances in Terravis
Subsidiary’s Zero-Emission Heat Pump Development
During Q4 2023, Worksport’s subsidiary Terravis
Energy experienced a breakthrough in early test results for a
working prototype of its Cold Climate, Air Source Residential Heat
Pump (CCHP), which produced heating in temperatures in extreme cold
as low as -35ºC (-31º F), surpassing current leading Heat Pump
systems by as much as 40%. These early test results, obtained in
the Company’s Toronto R&D facility’s cutting-edge ‘Arctic
Chamber,’ surpassed management’s expectations, prompting Terravis
to move to the commercial design stage for this product, after
further rigorous testing. The Terravis Heat Pump is anticipated to
redefine the boundaries of heating technology without the use of
supplemental heating coils, a notable achievement in modern
engineering,
“What a remarkable year and an incredible fourth
quarter,” Rossi said. “With an 83% increase quarter-to-quarter
North American revenues and a remarkable year-over-year Q4 revenue
increase of 2,050%, Worksport is on the march, roaring to life,
firing on all cylinders, with execution, innovation, and product
portfolio expansions in the business-to-business and
business-to-consumer sales channels. We again cite the example of a
hockey stick, when anticipating how our growth curve will look. Our
commitment to providing uncompromising value and growth to our
investors has never been stronger. We wish to thank our many
employees, partners and shareholders who have contributed to this
successful result.”
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.
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 currently maintains 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 by Stellantis, General Motors brands GMC and
Chevrolet, Ford, Jeep by Stellantis, 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.
Worksport strives to provide frequent updates of
its operations to its community of investors, clients, and
customers to maintain the highest level of visibility.
LinkedInFacebookX (previously Twitter)InstagramYouTube
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 the Accounts to announce
Company news and other information. The information shared on the
Accounts could be deemed to be material information. As a result,
the Company encourages investors, the media, and others to review
the information the Company publishes on the Accounts.
In order to comply with Regulation FD, the
Company does not selectively disclose material non-public
information on any Account. If there is any significant financial
information, it is the policy of the Company to release it broadly
to the public through a press release or SEC filing prior to
publishing it on one of the Accounts.
For additional information, please contact:
Steven Obadiah, Investor Relations, Worksport Ltd.
T: 1 (888) 554 8789 E:
investors@worksport.com W: www.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. As Worksport
continues to innovate and expand the product line, it's important
to clarify the compatibility of Worksport's hard-folding cover.
This advanced accessory is designed to fit a variety of popular
truck models, including RAM by Stellantis, GMC and Chevrolet from
General Motors, Ford, as well as Jeep by Stellantis, Nissan, and
Toyota pickup trucks. While we are proud of the broad compatibility
of our product, we would like to emphasize that this does not imply
exclusive partnerships with RAM by Stellantis, GMC, Chevrolet from
General Motors, Ford, Jeep by Stellantis, Nissan, and/ or Toyota.
Our commitment remains to provide high-quality, versatile truck
accessories that meet the needs of a diverse range of customers and
their vehicles. This statement looks forward to the possibilities
that lie ahead while recognizing the current scope of our product's
reach and compatibility. This statement applies to RAM by
Stellantis, GMC and Chevrolet from General Motors, Ford, as well as
Jeep by Stellantis, Nissan, and Toyota, and to any other model for
which we have not officially announced a partnership. Terravis
Energy, a fully-owned subsidiary of Worksport LTD, may reference
companies such as Tesla as examples for market development, given
Tesla's development of a heat pump. However, this does not imply
that Terravis Energy has established a partnership with Tesla.
Similar references to companies like Tesla in examples or
explanations are purely informational and are used solely for the
purpose of illustrating market trends or technological
developments. 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: (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.
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