Thu, May 16, 11:37 AM (268 days ago)
For the quarter ended March 31, 2024, Worksport Ltd. reported significant financial metrics and operational developments. The company experienced a substantial increase in revenue, reaching $512,637 compared to $31,925 in the same quarter of 2023, driven primarily by increased sales of soft tonneau covers to a private label partner. Despite this, the company reported a net loss of $3,714,657, up from $3,523,270 in the prior year, largely due to increased operating expenses. Key financial highlights include: - Gross profit of $37,456, up from $12,168 in Q1 2023. - Operating expenses rose to $3,676,922 from $3,542,116, with notable increases in general and administrative costs. - Cash and cash equivalents increased to $3,536,980 from $3,365,778 at the end of 2023, supported by equity financing activities raising approximately $3.2 million. - The company closed a registered direct offering, netting $2,629,083, and issued warrants exercisable for common stock. Worksport also reported a working capital of $2,901,401 and an accumulated deficit of $52,027,834. The company continues to face challenges related to operational costs and is focused on ramping up manufacturing and increasing sales volumes to mitigate these effects. Future liquidity is expected to rely on additional capital raising efforts.