Worksport Reports 2021 Third Quarter Financial Results and Provides Business Update

Rhea-AI Summary

Worksport Ltd. (Nasdaq: WKSP) reported third-quarter financial results for the period ending September 30, 2021. The company achieved a record cash position of approximately $29.0 million and secured a new manufacturing facility to enhance onshore production. Despite total revenues declining to $93,408 from $116,491 year-over-year, year-to-date revenues rose to $287,297. The net loss increased to $2.04 million due to higher sales and marketing costs. Worksport is optimistic about its new Terravis Energy subsidiary and the launch of its innovative solar tonneau covers, aiming to capitalize on green energy trends.

Positive

• Achieved record cash position of approximately $29.0 million.
• Secured a 55,000 square foot manufacturing facility in Canada.
• Launched the Global Pre-Order Portal for the Terravis System.
• Year-to-date revenue increased from $223,620 to $287,297.

Negative

• Total revenues decreased from $116,491 to $93,408 year-over-year.
• Net loss increased from $370,613 to $2.04 million.

Mississauga, Nov. 15, 2021 (GLOBE NEWSWIRE) -- Worksport Ltd (Nasdaq-CM: WKSP) (the “Company”) reported financial results for the 2021 third quarter period ended September 30, 2021. Investors are encouraged to read the Company’s quarterly report on Form 10-Q filed with the Securities and Exchange Commission (the “SEC”), which can also be found at www.worksport.com.

Third Quarter Highlights:

• Ended the third quarter with approximately $29.0 million in cash and cash equivalents, it’s largest cash position ever.
• Secured a 55,000 square foot manufacturing facility essential for the Company’s plans to bring its manufacturing operations back from overseas.
• Began developing Terravis Energy, Inc., its wholly owned subsidiary that will lead the Company’s alternative energy operations.
• Appointed Bill Caragol and Ambassador Ned L. Siegel as independent directors who have immediately become invaluable additions to the Company.
• Appointed Michael Timmons and Sengkee Ahn to the Company’s advisory board.
• Launched the Company’s Global Pre-Order Portal, which the Company’s believes will play an important role in generating further sales, sidelined by the global supply challenges.

Worksport has secured and moved into a new manufacturing facility in Canada. The Company has added to its Board two extremely experienced, independent directors. Additionally, the Company has expanded its Advisory Board with experts from both financial and automotive industries. Following the strides made in green energy storage with the development of the Company’s Terravis COR energy storage system, Worksport launched its wholly owned subsidiary, Terravis Energy Inc. – establishing a new home for in-development, revolutionary technologies like NPEV, a hydrogen-based EV charging solution.

Steven Rossi, Chief Executive Officer of Worksport said, “Worksport continues to build what we believe will become an industry staple brand, where our technologies and efficiencies will create unique solutions to the challenges of energy storage and transportation. In August, we completed a public offering and listed our shares on Nasdaq. We will continue to forge new paths in the pursuit of our vision of providing innovative products within the tonneau cover market and beyond.”

Worksport has officially started taking pre-orders for its much-anticipated Terravis System, a one of a kind solar tonneau cover and mobile energy storage system. Consumers can pre-order the entire system or the Terravis COR – a highly advanced energy storage system that functions as a stand-alone product of the Terravis System. Both the Terravis COR and the Terravis SOLIS, which specifically refers to the solar tonneau cover, are in pre-production and approaching final stages of their certification processes. As the two enter final stages of pre-production, Worksport is well-positioned to begin delivering on pre-orders and orders as soon as Q2 2022. The complete Terravis System creates a mobile power generation and storage system that produces 100% green energy to be used as backup power where there otherwise is not any, whether recreationally, professionally, or for emergencies.

Worksport has also started the development of its eCommerce site, which is expected to launch January 2022. Worksport believes that by taking control of its sales channels, the Company can achieve new heights in revenue generation and product availability. With this facilitation of D2C sales, Worksport has stockpiled inventory throughout 2021 to ease its transition to an entity having multiple, diversified revenue channels.

“It was expected that 2021 would be a building year for us with our capital raise. We have been very careful not to deploy funds for unwise investments, and we are on track and excited to utilize that capital to develop better tonneau covers and produce new lines of products such as the Terravis System. Coming out of the pandemic, companies have struggled with supply chain issues, and Worksport was not immune to these difficulties. We have taken that challenge and turned it to opportunity with the start of onshore production though the build-out of our state-of-the-art, automated manufacturing facility. Our facility in Mississauga, Ontario – what we believe is an achievement in itself – is a first of its kind in our market, and it will be used to develop products that will take us further, and for longer. We continue to believe that investments such as those in onshore manufacturing will lead us to increased revenue in 2022,” said Steven Rossi.

2021 Third Quarter Financial Results

For the three-month period ended September 30, 2021, total revenues were $93,408, compared to $116,491 for the three-month period ended September 30, 2020. Year-to-date, total revenues were $287,297 compared to $223,620 for the same period, 2020.

Total cost of sales for the 2021 third quarter decreased by 13% from $94,134 in the prior period to $81,810.

Net loss for the 2021 third quarter was $2.04 million compared to a net loss of $370,613 in the prior year period. The increased net loss was primarily due to increases in sales and marketing as well as professional fees associated with expanding the Company’s business operations.

General and administrative expenses were $517,735 in the third quarter compared to $50,836 for the prior year period. The increase in G&A was largely due to increased R&D and salaries as the Company seeks to expand its operations.

Please see our entire 10-Q report for the nine months ended September 30, 2021 filed with the Securities and Exchange Commission.

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. (Nasdaq: WKSP), through its subsidiaries, designs, develops, manufactures, and owns the IP on a variety of tonneau covers, solar integrations, and NP (Non-Parasitic), Hydrogen-based true green energy solutions for the renewable, clean energy, and automotive industries. Worksport Ltd. 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. For more information, please visit www.worksport.com, www.investworksport.com and www.goterravis.com.

Connect with Worksport: 

Please 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 or www.investworksport.com. Worksport Ltd. strives to provide frequent updates of its operations to its community of investors, clients, and customers to maintain the highest level of visibility.

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For additional information, please contact:
Steven Obadiah
Business Development Manager
Worksport Ltd.
T: 1-(888) 506-2013
E: investors@worksport.com
W: www.investworksport.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," or the negative of these terms and similar expressions, as they relate to us or our management, identify forward‐looking statements. Such statements include, but are not limited to, statements contained in this press release relating to the view of management of the Company concerning its business strategy, an up listing to a national exchange, future operating results and liquidity and capital resources outlook. Forward‐looking statements are based on the Company's current expectations and assumptions regarding its business, 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. The Company's actual results may differ materially from those contemplated by the forward‐looking statements. They are neither statements of historical fact nor guarantees of assurance of future performance. We caution you therefore against relying on any of these forward‐looking statements. Factors or events that could cause the Company's actual results to differ may emerge from time to time, and it is not possible for the Company to predict all of them. The Company cannot guarantee future results, levels of activity, performance, or achievements. Except as required by applicable law, including the securities laws of the United States, the Company does not intend to update any of the forward‐looking statements to conform these statements to actual results. No Stock Exchange or Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

FAQ

What were the financial results of Worksport (WKSP) for Q3 2021?

Worksport reported total revenues of $93,408 for Q3 2021, down from $116,491 in Q3 2020.

What is the reason for the increase in net loss for Worksport (WKSP) in Q3 2021?

The net loss increased to $2.04 million primarily due to higher sales and marketing expenses.

What new initiatives did Worksport (WKSP) announce in Q3 2021?

Worksport announced the launch of its Global Pre-Order Portal for the Terravis System and the establishment of Terravis Energy, Inc.

How much cash did Worksport (WKSP) report at the end of Q3 2021?

The company reported a record cash position of approximately $29.0 million at the end of Q3 2021.

What are the main products Worksport (WKSP) is focusing on?

Worksport is focusing on its solar tonneau cover and the Terravis energy storage system.