Worksport (WKSP) investor relations material

Executive summary

• Record Q3 net sales reached $7.23M, up 44.2% YoY and 38.2% QoQ; the second consecutive quarterly sales record.

• Operating cash use fell to ~$0.4M from $3.4M in Q2, aided by inventory conversion and working-capital timing; management cautioned this was not a quarterly run rate.

• Priorities remain higher volume, stronger margins, spending and working-capital discipline, and sustained positive operating cash flow, with no new calendar target.

• Cash was $2.53M at quarter-end; management cited substantial doubt about continuing as a going concern.

Financial highlights

• Q3 gross profit was $2.19M versus $1.57M a year ago; operating loss was $3.43M versus $4.79M, and net loss was $3.60M versus $4.93M.

• Q3 loss per share was $0.26 versus $0.75 a year ago; improvement partly reflected a higher weighted-average share count.

• 9M net sales rose 38.8% to $15.77M; net loss was $13.39M versus $13.12M, and operating loss was $12.99M versus $12.68M.

• Operating expenses were $5.6M, 77% of sales versus 127% a year ago; sales and marketing was $1.8M versus $2.4M.

Outlook and guidance

• Sustained operating cash-flow breakeven is the first financial priority; progress depends on revenue, margins, recurring cash needs, and working-capital discipline.

• AetherLux certification is targeted for Q4 2026, first production before year-end, and initial U.S. pilot installations in Q1 2027, subject to certification, testing, and readiness.

• Production is moving toward just-in-time planning; existing capacity is expected to support higher sales and gross profit without spending rising at the same pace.

• Higher production volumes and manufacturing efficiencies are expected to improve overhead absorption; less discounting may be needed as customer engagement builds.