Worksport Announces Accelerated Path to Profitability with $2M+ in Projected Savings, Strengthens Financial Stability Ahead Of Upcoming Product Launches
Company Expects Improved Margins and Cash Preservation; Upcoming Launches Includes High-Demand AL4 Cover and Innovative Clean-Tech Solutions
West Seneca, New York, October 17, 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 today announced the implementation of strategic cost-saving measures designed to enhance operational efficiency and drive long-term growth. The Company forecasts these actions will result in $1.5 million in expense savings in 2025, along with an additional $0.5 to $1 million in cash savings, without negatively impacting revenues.
Key Highlights:
- Strategic Cost Savings:
- Initiatives begin immediately and target a reduction of recurring expenses. These initiatives are expected to improve margins and enhance cash preservation.
- Growth Focus:
- The Company aims for significant revenue growth in 2025, targeting cash flow positivity by expanding its tonneau cover business line and launching clean tech products. The newly enacted cost saving initiatives are expected to expedite the Company’s progression to this goal.
- Product Launches on Schedule: No material delays are expected for three new products, including the highly anticipated AL4 Premium Tonneau Cover, the
- COR Portable Energy System, and the SOLIS Solar Cover
- .
- Upcoming Catalysts: Immediate benefits are expected in Q4 2024, with further positive financial impact anticipated in Q1 2025.
CEO Commentary:
“We are taking proactive steps to optimize our operations and position Worksport for sustainable growth,” said Steven Rossi, CEO of Worksport. “These strategic measures are expected to improve our margins and strengthen our financial position without compromising our commitment to innovation and product excellence. We remain focused on executing our growth strategy and delivering value to our shareholders.”
Growth Initiatives and Revenue Targets
Worksport is aggressively pursuing growth in its tonneau cover business line, projecting:
- Cash Flow Positivity in 2025: Capitalizing on high-demand products and expanding market share.
- Significant Revenue Growth: Targeting a multiple increase over year-end 2024 revenues.
Product Launches and Upcoming Catalysts
- AL4 Premium Tonneau Cover:
- Expected Release:Late Q4 2024.
- Features:Innovative four-fold design offering enhanced functionality and margins.
- Market Potential:Four-fold covers are seen as the most in-demand models in the market, and this cover is expected to propel Worksport toward nine-figure revenue in the short to midterm.
- Worksport
- COR Portable Energy System, and 3. SOLIS Solar Cover:
- Current Phase:Recently entered alpha release.
- Next Steps:Ongoing real-world testing, design optimization, and media engagement leading to a pre-order campaign and larger beta release.
- Manufacturing Partnerships:The Company is proud to announce it is in advanced discussions with a globally recognized manufacturer to produce these units.
Continued Commitment to Innovation
Worksport remains highly engaged in research and development, with a focus on:
- Terravis Energy’s Extreme Climate Heat Pump: The Company is looking forward to sharing exciting advancements of this subsidiary soon.
- Ongoing R&D Efforts: The Company recently provided an update on
- 19 new models
- it has added to its product catalogue in just the last 6 months, and it looks forward to sharing additional updates as they occur.
CEO Steven Rossi added:
“Our upcoming product launches represent significant milestones for Worksport. We are confident that the AL4 Premium Tonneau Cover and our clean energy solutions like the COR Portable Energy System and SOLIS Solar Cover will drive substantial growth. These innovations reflect our dedication to meeting market demands and exceeding customer expectations.”
About Worksport Ltd.
Worksport Ltd. (NASDAQ: WKSP), through its subsidiaries, designs, develops, manufactures, and owns the intellectual property on a variety of tonneau covers, solar integrations, portable energy storage systems, and heat-pump technology. The Company is committed to transforming the pickup truck industry through innovative technologies that enhance functionality and sustainability. For more information, please visit www.worksport.com | investors.worksport.com | https://terravisenergy.com
Key 2024 Press-Releases:
- October 7: October Strategic Update
- October 3: Commencing U.S Government Sales
- September 30: Update On ISO Certification
- September 19: Alpha Launch of SOLIS & COR
- September 12: Record High August Sales
- September 11: Worksport COR as an EV Range Extender for Tesla Model 3
- August 14: Record High Revenues; 275% Q2 Growth
- August 1: Impressive SOLIS Solar Cover Test Results
- May 8: Worksport Awarded $2.8MM Grant
- April 25: Worksport Signals Undervalued Status, Eyes Major 2024 Growth
