Worksport Ltd. reported significant financial developments in its Q3 2024 10-Q filing, showcasing a remarkable increase in net sales and ongoing operational challenges. For the three months ended September 30, 2024, the company achieved net sales of $3,122,359, a substantial increase of approximately 581% compared to $458,483 in Q3 2023. This growth was driven by higher sales of tonneau covers to private label partners, dealers, distributors, and online marketplaces. The first nine months of 2024 also reflected a strong performance, with net sales reaching $5,556,535, up 705% from $690,259 in the same period of 2023.

Despite the surge in sales, Worksport continued to face operational losses. The gross profit for Q3 2024 was $247,173, compared to $89,687 in Q3 2023, while the gross profit for the first nine months of 2024 was $581,258, up from $148,418 in the prior year. However, total operating expenses increased to $4,152,389 in Q3 2024 from $4,009,196 in Q3 2023, leading to a loss from operations of $(3,905,216) for Q3 2024, slightly improved from $(3,919,509) in Q3 2023. The net loss for Q3 2024 was $(4,134,917), compared to $(3,949,298) in the same quarter of 2023.

The company’s accumulated deficit rose to $(60,176,150) as of September 30, 2024, from $(48,313,177) at the end of 2023. Total current assets decreased to $8,887,057 from $9,123,506, while total assets also fell to $24,939,158 from $25,953,916. However, current liabilities significantly decreased to $3,006,131 from $7,166,612, resulting in an increase in working capital to $5,880,926 from $1,956,894.

Strategically, Worksport has been active in financing and operational adjustments. The company raised $3,746,435 from warrant exercises and $3,195,201 from common share issuances in the first nine months of 2024. Additionally, it entered into a $6 million Revolving Financing and Assignment Agreement, drawing down approximately $5.06 million for refinancing and operational needs. The company also announced a strategic cost-saving initiative aimed at reducing annual expenses by $1.5 million without impacting revenues.

Worksport's inventory increased to $6,138,060 as of September 30, 2024, from $3,631,492 at the end of 2023, reflecting increased purchasing to meet rising demand. The company continues to focus on expanding its product lines and enhancing its market presence, particularly in the electric vehicle sector, as it prepares for the launch of new products and partnerships.