- Revenue growth reflects Worksport’s growing production, and large sales orders to be fulfilled
- Company reports strong product backlog and pent-up demand for SOLIS solar light truck cover and COR battery system, advancing towards launch
- Inventory built up due to investments in raw materials for production
- Made in America production starts with imported and domestic materials
- Expansion in product offerings, significant purchase orders, strategic partnerships
West Seneca, New York, Nov. 15, 2023 — 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.”