Worksport (WKSP) investor relations material

Recent business developments and performance

• Achieved a preliminary 35% gross margin in May 2026, up from 11% in December 2024, reflecting improved manufacturing efficiency and pricing discipline despite inflationary pressures.

• Revenue run rate increased to $35–36 million, with current run-rate at $21M+, supported by new distributor partnerships and a growing B2B channel, targeting $25 million B2B run rate by June 2027.

• NEXUS tonneau cover launched, outpacing previous products and driving distributor growth, with Meyer Distributing and Tri-State as key partners.

• SOLIS and COR products launched, with SOLIS showing strong organic sales and COR marketing focus set for the second half of the year.

• Terravis Energy's AetherLux ZeroFrost platform received a U.S. patent, with certification work ongoing and significant long-term market potential.

Financial strategy and capital management

• Management, including the CEO, has taken equity in lieu of cash compensation, aligning interests with shareholders and demonstrating confidence in long-term value.

• Completed two direct investments, including one at a premium to market price; additional financing interest up to $10 million, with a focus on minimizing dilution and tying capital to operational returns.

• Goal to achieve operational cash flow positivity within 12 months, targeting $9 million quarterly revenue at 35% gross margin, with ongoing efforts to lower this threshold through efficiency gains.

• Company remains in compliance with Nasdaq minimum bid price requirements, with shares closing above $1 on June 24 and rising 75% in five trading days.

Commercial and product strategy

• Focus on expanding both B2B and B2C channels, leveraging distributor relationships for broader reach and higher-margin direct sales for customer engagement.

• NEXUS positioned as a next-generation product with unique features, expected to drive significant revenue growth and distributor interest.

• SOLIS and COR products extend the business into mobile power and energy storage, with certification and marketing efforts ramping up in the second half of the year.

• OEM partnerships are being pursued following ISO certification, with a strategic approach to mitigate warranty and operational risks.

• Broader product platform spans truck accessories, solar integrations, portable energy systems, and clean heating/cooling solutions.