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Worksport Ltd. (WKSP) has submitted its Form 10-K filing for the fiscal year ended December 31, 2024.
The filing reports net sales of $8,484,379 for the year, a 455% increase from $1,529,632 in 2023. This growth is attributed to increased sales of tonneau covers through various distribution channels, including private labels, dealers, distributors, and direct-to-consumer online sales.
Cost of sales for the year was $7,578,729, representing 89% of net sales, compared to 84% in the previous year. This increase is due to strategic discounting and overhead allocation associated with inventory produced during periods of limited production volume.
Operating expenses increased to $16,371,484 from $14,977,175 in the previous year. The increase was driven by higher research and development costs, general and administrative expenses, and sales and marketing expenses.
The company reported a net loss of $16,163,789 for the year, compared to a net loss of $14,928,958 in 2023. The accumulated deficit as of December 31, 2024, was $64,476,966.
Worksport's cash and cash equivalents increased to $4,883,099 as of December 31, 2024, from $3,365,778 at the end of the previous year. The company also reported a working capital of $7,304,110.
During the year, Worksport raised significant funds through various offerings, including a $6 million revolving credit facility and a $1,487,200 term promissory note.
The company continues to focus on expanding its product offerings, including the development of energy-based products such as the SOLIS tonneau cover and the COR energy storage system.
Worksport's management acknowledges the existence of material weaknesses in its internal control over financial reporting and is in the process of implementing measures to remediate these issues.
The filing also details the company's efforts to enhance its cybersecurity posture and manage risks associated with its business operations.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Worksport Ltd. annual 10-K report dated March 27, 2025. To report an error, please email earnings@qz.com.