Worksport ($WKSP) Publishes Investor Q&A Responses, Strengthening Engagement
Insightful Answers to Investor Questions from Our Earnings Call and Q&A Portal
West Seneca, New York, Aug. 22, 2024 (GLOBE NEWSWIRE) -- 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 committed to fostering transparency and engagement with its investor community. Today, the Company is pleased to share answers to key investor questions submitted through its recently launched Investor Q&A Portal and during its Q2 earnings call. This initiative further strengthens Worksport's open communication efforts as the Company continues its growth trajectory.
Worksport’s Q2 Earnings Call occurred at 4:30 PM ET on Tuesday, August 13, 2024, where the Company reported record-high revenues. You can review the recorded webinar [here], along with the prepared remarks and presentation deck [here]. The Q2 2024 financial results can be accessed through the Worksport Q2 2024 10-Q filing [here]. These resources provide an in-depth look into Worksport’s financial performance and key updates shared during the earnings call.
Answers To Investor Questions: The Company addresses key investor questions, categorized into three segments: A) Company & Financial Questions, B) Worksport Automotive Accessories Questions, and C) Worksport Clean-Tech Questions.
A) Company & Financial Questions:
1. Question: What is Worksport’s near term accomplishments, and what is the release date of the COR System?
Answer: Worksport achieved record Q2 2024 revenues, reflecting a 274% growth from Q1 2024. Production of the patented SOLIS and patent-pending COR Alpha units is underway, with a release expected in September. Early market indicators suggest a strong reception for the hard tonneau covers produced at our new facility in Western New York, where the AL3 model is gaining rapid traction. The Worksport brand continues to experience steady growth, with future SOLIS and AL4 covers also set to be assembled at this facility. For more information, please refer to our latest press releases: [Link to All Press Releases].
2. Question: What are Worksport’s end of the year goals?
Answer: Worksport is focused on finishing the year strong by leveraging early market penetration. We will continue the AL3 rollout with a target of exceeding $1 million in Monthly Recurring Revenue from this product line by year-end. The premium AL4 line is scheduled for release in Q4. Additionally, we are working towards achieving ISO certification at the Worksport US factory.
Looking ahead to 2024, we anticipate successful Alpha launches for the COR and SOLIS lines, positioning us for a significant sales ramp-up in 2025. In that year, Worksport will prioritize achieving cash flow positivity, completing the full rollout of the COR and SOLIS products, and scaling operations to meet growing demand.
3. Question: When do you plan on showing profit per share?
Answer: Worksport invested heavily in infrastructure and product development initiatives to build a strong foundation for sustained operational growth. Worksport now has the infrastructure in place, along with innovative product lines, to move towards operational cash flow positivity. Worksport is well positioned to use its equipment, facilities and inventory investments to meet current and anticipated sales growth for the remainder of 2024. No significant equipment investment is expected within the next 12 months. As revenues accelerate, we expect the net loss from operations to decrease, with a clear vision to move to positive operational cash flow within 2025.
4. Question: Can you give any detail on status of Hyundai partnership and how it is progressing, and whether there are any discussions progressing with other OEMs to make a SOLIS cover for their truck?
Answer: We are committed to pursuing OEM relationships with EV truck manufacturers in the mid-to-long term, and our relationship with Hyundai remains active. From a macro perspective, pickup trucks continue to be the top-selling US vehicles on the road. While the EV pickup truck market has experienced delays and waning sales interest, we believe that with improved infrastructure and technology, EV adoption will extend to pickups as well. Worksport’s SOLIS solar cover is designed for use with both current ICE vehicles and current/future Electric Vehicles, allowing us to navigate without adverse effects by these market shifts.
5. Question: Is the Company contemplating a reverse stock split?
Answer: As per Nasdaq Listing Rule 5810(c)(3)(A), the Company has until October 16, 2024, to regain compliance. Should additional time be required, Worksport may qualify for an extension for another 180 days, reaffirming our commitment to fulfill all necessary requirements with Nasdaq and maintain our listing. We remain focused on our growth trajectory and confidently believe in the positive impact of our upcoming product launches and revenue milestones.
During this time, Worksport’s stock will continue to be listed and traded on the Nasdaq Capital Market. We are optimistic about the future of Worksport, and at this time, we do not have any plans to consolidate.
6. Question: What are future financial requirements doing to entail, & how soon will the company need to raise additional capital?
Answer: Worksport’s revenues are increasing, allowing the Company to fund a larger portion of its operations and growth through those revenues, although a net loss remains. Management is continuously evaluating opportunities and investments that align with the long-term interests of the Company. The goal is to achieve operational cash flow positivity by 2025 while supporting rapid expansion.
7. Question: May you provide detailed reasons as to why Management believes the stock to be undervalued?
Answer: Worksport management believes that the true value of Worksport has not been reflected in its stock price and believes that value continues to grow every day. The Company states the following points to consider:
Worksport ($WKSP) Market Cap as of close on August 21st, 2024, was $19.67MM. The Company’s book value was: $19.15MM [Assets – Liabilities] as of June 30, 2024. Meanwhile, the Company’s revenues continue to rapidly accelerate, margins are showing great signs of improvement, and net loss is expected to decrease. As revenues accelerate, we expect the net loss from operations to decrease, with a clear vision to move to positive operational cash flow within 2025.
Worksport’s Revenue Trend:
- Q1 2023: $31,925 → Q2 2023: $199,851 →
- Q1 2024: $512,637 → Q2 2024: $1,921,539 →
Worksport’s Forward Guidance:
At our current Q2 revenue pace, Worksport is on track to meet or exceed our previously issued 2024 revenue guidance of $6-8 million. Notably, this projection is based solely on AL3 and Soft Cover products and does not include potential revenues from the AL4, SOLIS, and COR lines. We believe that tonneau cover segment alone will generate $15-20 million in revenue for FY 2025.
We are thrilled to launch the Alpha release of our COR and SOLIS lines this September, marking the foundation of our future growth into a mid-to-large market Company. Stay tuned for an initial sales outlook of for the COR and SOLIS during our Q3 2024 earnings call.
B) Worksport Automotive Accessories Questions:
8. Question: Are there any plans to expand tonneau cover lineups to cover older models of pickups?
Answer: Worksport does have plans to expand its product lineup to cover older pickup models in the future. Currently, the Company's focus is on high-demand, popular models from manufacturers such as Ford, RAM and GM, specifically the 5.5-foot and 6.5-foot bed configurations. These models are prioritized as they represent the bulk of market demand.
While we recognize of the market for older or niche models, such as the 1988-1998 GM pickups, the current demand is comparatively lower. Therefore, the strategy is to first expand the product line outward, with continued development of the AL3, AL4, and SOLIS lines for popular models. Following this, Worksport plans to extend its range to include older and classic vehicle models, potentially including iconic trucks like the 1949 Chevy.
Thanks to the Company’s advanced robotic manufacturing capabilities, producing these covers is feasible, but it will take time. Although the expansion to older models is in the long-term strategy, it is not the immediate focus at this time.
9. Question: You have indicated previously that you would be unveiling both an additional hard cover before the EOY 2024. Is this still on track?
Answer: Yes, the highly anticipated Worksport AL4 cover is scheduled for release in Q4. This premium, durable hard cover is designed with four panels, allowing it to fully fold up against the cab, providing complete access to the truck bed.
10. Question: Could you please talk about the ISO certification process?
Answer: Worksport is actively pursuing ISO certification, which is targeted for completion this year. Significant milestones have already been achieved, with further updates planned to be announced to the market at a later date.
ISO certification requires comprehensive internal organization before applying, followed by a rigorous evaluation process. Should the initial application not meet the required standards, improvements will be made to achieve compliance. Worksport remains confident in securing ISO certification this year, which would mark a major milestone for the Company’s manufacturing operations. Progress is being made daily toward this goal.
C) Worksport Clean-Tech Questions:
11. Question: How durable will the Worksport SOLIS Solar Cover be?
Answer: The SOLIS tonneau cover shares the same durable framework as our AL3 model, using thick aluminum panels and extrusions. Its integrated solar panels have undergone rigorous testing—hammered, stepped on, and folded—while retaining a high level of efficiency.
Designed to withstand harsh conditions, such as golf ball-sized hail and inclement weather, the SOLIS cover is built for durability. It can handle metal toolboxes and equipment reasonably without affecting performance. Key enhancements include hard mechanical hinges, a dent- and scratch-resistant PV panel, and covered wiring for added protection.
12. Question: Will the Company share a spec-sheet on the SOLIS & COR?
Answer: Yes, a detailed spec sheet will be released. Worksport has already shared some initial test results. You can view the SOLIS initial test results [here] and the COR test results [here].
13. Question: How widespread based on cost and a tightening economy is adoption of the COR & SOLIS expected to be?
Answer: The SOLIS Solar Cover will be competitively priced alongside other premium folding covers in the market, but will stand out as the only product featuring integrated solar panels.
While consumer outreach has not yet begun, there has already been significant media and industry interest in the SOLIS Solar Cover. With approximately 21,000 tonneau covers sold annually, we are confident that being the first-to-market with a folding solar tonneau cover will attract considerable attention from pickup truck owners. Furthermore, the emerging market for mobile battery-powered generators is growing rapidly, with low penetration, offering additional opportunities for our system of products.
Worksport is well-positioned to capitalize on this demand, with a pre-order campaign set to ramp up in Q3 and Q4 this year. We anticipate strong interest, particularly as we aim to fulfill pre-orders within weeks of purchase, bringing us closer to a full-scale product launch. Additionally, our existing customer base has expressed significant demand for the SOLIS cover, further validating its market potential.
14. Question: The heat pump still remains a mystery with respect to capitalization and market launch. The last update you provided indicating supply chains were being formed. Do you have a release date for this product?
Answer: Terravis Energy, Inc., a subsidiary of Worksport, will be providing updates on the heat pump later this year. Worksport is encouraged by the strong early test results demonstrated by this Terravis product and looks forward to sharing further developments.
15. Question: When will the WKSP COR be compatible with the 220 Volt market outside USA?
Answer: At launch, the Worksport COR system will be produced to meet North American specifications. The Company has already received international interest for both the COR and SOLIS products and plans to expand into global markets with international models in the future.
Stay Tuned for More Updates
Investors and tech enthusiasts can look forward to more updates in the coming weeks as Worksport continues to ramp up and three new products are scheduled to be released.
Investor Inquiries May Be Directed To:
Investor Relations, Worksport Ltd.
T: 1 (888) 554-8789 x128
W1: https://invest.worksport.com/home
W2: www.worksport.com
E: investors@worksport.com
Key 2024 Press-Releases:
- August 20th: Worksport ($WKSP) Begins COR Alpha Production
- August 14th: Worksport Announces Record High Revenues; 275% Q2 Growth
- August 1: Worksport Announces Impressive SOLIS Solar Cover Test Results
- June 20: Worksport Announces Record Breaking May Sales
- May 16: Worksport Reports 1,506% Q1 Revenue Surge
- May 8: Worksport Awarded $2.8MM Grant
- April 25: Worksport Signals Undervalued Status, Eyes Major 2024 Growth
- March 6: Worksport to Launch Innovative SOLIS & COR Products This Summer
Read all Worksport press releases: [Link to All Press Releases].
Stay Connected
- Investor Newsletter: Investors and customers are invited to follow Worksport’s progress as it builds on this momentum and strives to redefine industry standards with each new corporate development. Link to Newsletter
- Contact Information
Investor Relations, Worksport Ltd. T: 1 (888) 554-8789 -128 W: investors.worksport.com E: investors@worksport.com W: 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 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 RAM, Chevrolet, and GMC models from General Motors, as well as Ford, Jeep, 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.
| Product social media | Investor social media |
| X (formerly Twitter) | |
| Facebook YouTube | LinkedIn Link to Newsletter |
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 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,” “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.
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