Worksport doubles revenue to $16M but losses widen; heavy equity dilution funds operations

Filed March 26, 2026 · Period ending December 31, 2025 · Compared to 10-K Mar 27, 2025 · ~2 min read

Key Changes

• high

  Revenue nearly doubled to $16.1M (up 90%) with gross margin improving from 11% to 28%, but net loss widened to $19.4M as sales/marketing spend tripled to $6.9M. Company raised $21.8M through warrant inducements, Reg-A preferred offering, and ATM sales, diluting shares outstanding 144% to 9.8M.

  MD&A: Financial Results verify on EDGAR →
• high

  Auditor expressed substantial doubt about ability to continue as going concern; accumulated deficit grew to $83.9M. Material weakness in internal controls persists for second year, though misstatements reduced from 'several' to one. Remediation timeline pushed from Q2 2025 to 'later in 2026.'

  Risk Factors & Controls verify on EDGAR →
• high

  Company now relies on single China supplier (down from two) for all soft covers; new COR energy system will initially be manufactured in China despite tariff exposure. Inventory surged 84% to $9.5M as domestic hard-cover production scaled.

  Risk Factors & Notes verify on EDGAR →