Worksport Reports 2020 Full Year Financial Results and Provides Business Update

Rhea-AI Summary

Worksport Ltd (OTC: WKSP) announced its financial results for the year ending December 31, 2020, reporting total revenues of $346,144, a significant decline from $1,926,405 in 2019. The net loss increased to $1,187,620, compared to a loss of $359,034 the previous year. Despite these challenges, the company ended the year with $1.1 million in cash and no long-term debt. Worksport launched the TerraVis™ product line and secured a Tier-One OEM supply agreement with Hercules Electric Mobility, reflecting its potential in the emerging EV market.

Positive

• Secured a Tier-One OEM supply agreement with Hercules Electric Mobility for the Alpha Electric Pickup, with over $27 million in reservations.
• Raised over $4 million from an oversubscribed Reg-A offering, allowing for enhanced manufacturing and marketing efforts.

Negative

• Total revenues declined significantly from $1.9 million in 2019 to $346,144 in 2020.
• Increased net loss from $359,034 in 2019 to $1,187,620 in 2020.

• Ended 2020 with $1.1 Million in Cash and Cash Equivalents
• Introduced Upcoming TerraVis^™ Product Line
• Announced Tier-One OEM Supply Agreement with Major EV Manufacturer

TORONTO, April 14, 2021 (GLOBE NEWSWIRE) -- Worksport Ltd (OTC: WKSP) (or the “Company”) a developer and manufacturer of high quality, modular, and attractively priced tonneau covers and solar-powered systems for light-duty trucks, today reported financial results for the fourth quarter and full year ended December 31, 2020.

Steven Rossi, Chief Executive Officer of Worksport said, “Worksport today is a significantly stronger and more diversified company than it was a year ago. Like most companies, the Covid-19 pandemic significantly impacted operations but our capital structure, which includes no long-term debt, allowed us to use that time to lay the groundwork for what we believe will be significant revenue growth in the future. We now have a full line of innovative tonneau covers that have been meticulously scrutinized as we retooled for greater manufacturing capacity in preparation for the 2021 production year. Most importantly, in late August, we introduced TerraVis™, revolutionary development in the emerging EV market that we believe is a transformative step in our evolution, and to that end we announced an agreement with Hercules Electric Mobility Inc. to become a Tier-One OEM supplier for their highly anticipated Alpha Electric Pickup, with over US $27 million in early customer reservations. Finally, and as a testament to the enthusiasm investors have for Worksport, late in 2020 we initiated a Reg-A offering which by December 31, 2020 had raised more than $1 million, and by the time we closed the offering in February 2021, had raised more than $4 million. This capital will allow us to invest in manufacturing capabilities, building inventory, and boosting our marketing and branding efforts. With an anticipated surge in consumer spending many say will follow the end of the pandemic, and the emerging market for electric vehicles and accessories, Worksport is well-positioned to benefit from these developing trends.”

Subsequent Events

• In February 2021, Worksport closed its oversubscribed Reg-A offering, raising more than $4 million
• To date, Worksport received an additional $2.9 million from the exercise of warrants associated with its Reg-A offering
• Worksport raised $3 million from non-brokered Private Placement

Full Year 2020 Financial Results

For the year ended December 31, 2020, total revenues were $346,144, compared to $1,926,405 for the year ended December 31, 2019.

Net loss for the year ended December 31, 2020 was $1,187,620 compared to a net loss of $359,034 for the prior year period.

Total cost of sales for the year ended December 31, 2020 decreased by 82% from $1,687,857 to $298,996 for the prior year period.

General and administrative expenses were $201,929 in 2020 compared to $238,841 for the prior year period.

To stay up-to-date on all the latest Worksport news… investors, supporters, and shareholders are encouraged to follow the company’s social media accounts on Twitter, Facebook, LinkedIn, and Instagram, as well as sign up for the company’s newsletters at www.worksport.com and www.goterravis.com.

About Worksport Ltd.

Worksport Ltd. (currently OTCQB: WKSP) develops and manufactures high quality, modular, and attractively priced tonneau covers and solar-powered systems for light-duty trucks such as the Sierra, Silverado, Canyon, RAM, Ford F-Series, et al. and consumer-oriented adventures & purposes, where portable energy is a necessity. Available soon to pre-order, the modular, redefining Worksport TerraVis^™ tonneau cover system is being mindfully designed for the jobsite contractor and off-road, light-duty trucker, for work and play, to sustainably supply extra energy for those additional miles. Expected to launch by end of year 2021, its allied TerraVis COR^™ mobile energy storage system (ESS), will be another redefining product targeted for vacationers, second-home owners, and campers. Plans are also being constructed to expand with grid micro-charging stations to provide convenience and efficiency in recharging to smaller form-factor EVs. For more information, please visit www.worksport.com and www.goterravis.com.

Connect with Worksport:

LinkedIn

Facebook

Twitter

Instagram

For further information please contact:
Mr. Steven Rossi
CEO & Director
Worksport, Ltd
T: 1-888-554-8789
E: srossi@worksport.com

Forward-Looking Statements

This document may contain forward-looking statements, relating to Worksport, Ltd. operations or to the environment in which it operates, which are based on Company estimates, forecasts, and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict, and/or are beyond Worksport, Ltd.’s control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. Consequently, readers should not place any undue reliance on such forward-looking statements. Worksport, Ltd. disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. No Stock Exchange or Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

FAQ

What were Worksport's financial results for 2020?

Worksport reported total revenues of $346,144 in 2020, down from $1,926,405 in 2019.

How much cash did Worksport have at the end of 2020?

Worksport ended 2020 with $1.1 million in cash and cash equivalents.

What is the significance of the TerraVis product line for WKSP?

The TerraVis product line represents Worksport's entry into the electric vehicle market, aiming to cater to new consumer needs.

What agreements has Worksport secured in 2021?

In 2021, Worksport announced a Tier-One OEM supply agreement with Hercules Electric Mobility for their Alpha Electric Pickup.

What impact did the COVID-19 pandemic have on Worksport's operations?

The COVID-19 pandemic significantly impacted Worksport's operations, but the company utilized this time to strengthen its capital structure.