Worksport Ltd.

What they do

Through subsidiaries in Nevada, Ontario, Colorado and New York, Worksport develops automotive accessories, consumer electronics, and residential and commercial HVAC products. Its main commercial line is tonneau covers for light trucks, manufactured at its West Seneca, New York facility. It is also developing the Solis solar tonneau cover, the Cor portable power station, and Terravis Energy's Aetherlux heat pump.

Revenue drivers

• Tonneau covers and automotive accessories — The principal revenue source, generated from light-truck tonneau cover sales that drove reported revenue from $1.5M in 2023 to $16.1M in 2025.
• Solar tonneau cover (Solis) — A forthcoming solar-integrated cover described as not yet launched; the 10-K lists it as a future commercialization priority rather than current revenue.
• Portable power (Cor) and hydrogen systems — Early-stage IP-protected products including a mobile battery generator and NP hydrogen-based green energy systems; no revenue contribution is disclosed in the excerpts.
• Terravis Energy heat pumps (Aetherlux) — Residential and commercial heat pump development through the Terravis Energy subsidiary, presented as a future market opportunity with no reported revenue to date.

Recent performance

Second-quarter 2026 net sales were $5.2 million, up from $3.3 million in the March 2026 quarter. A July 22, 2026 earnings release reported preliminary monthly net sales rising from about $1.43 million in April to $2.08 million in June, a 46% increase. Preliminary monthly gross profit rose from about $310,000 to $720,000 over the same period, a 132% increase, with the company citing a gross margin run rate above 35% versus 26% in Q1 2026. Full-year 2025 revenue was $16.1 million, and the 10-K disclosed a 2025 net loss of approximately $19.4 million with an accumulated deficit of about $83.9 million. Cash and equivalents stood at $1.2 million at June 30, 2026, down from $5.9 million at December 31, 2025.

Strategy

Management is focused on scaling the automotive tonneau cover business and improving gross margin, which it says has moved from 26% in Q1 2026 to a run rate above 35%. The company is funding operations through equity and warrant financings, including a $10.0 million Regulation A offering of Series C Preferred and warrants completed between June and October 2025, a $6.7 million warrant inducement in February 2025, and a $6.4 million warrant inducement in December 2025. It expanded its at-the-market program in November 2025 to permit sale of up to $4.0 million of common stock. Development spending continues on Solis, Cor, and the Terravis Aetherlux heat pump. Management states its aim is to convert the growing gross-profit base into operational cash-flow positivity and then profitability.

Risks

• Going concern doubt — The auditor's report includes an explanatory paragraph expressing substantial doubt about the company's ability to continue as a going concern.
• No history of profitability — The 10-K states the company has a history of operating losses, has never generated a profit, and has relied primarily on equity and debt financings.
• Cash burn and liquidity — Operating cash flow was negative $17.3 million in 2025 and cash fell to $1.2 million at June 30, 2026, requiring continued external financing.
• Nasdaq listing compliance — An 8-K filed August 14, 2026 reported a delisting notice or listing-rule failure, and the company previously effected a 1-for-10 reverse split in March 2025 to regain minimum bid price compliance.

Outlook

Management says the preliminary April-to-June 2026 trend of gross profit growing faster than revenue should steer the company toward operational cash-flow positivity and then profitability in the near term, and expects to maintain or increase its gross margin run rate above 35%. The company intends to keep scaling the automotive portfolio while advancing its broader product and commercialization strategy. These statements are management's expectations; the earnings release notes the monthly figures are preliminary, unaudited, unreviewed by the auditor, and subject to adjustment.