Worksport (WKSP) 13 Nov 242024 Q3 Earnings call transcript

Good afternoon, everyone. Am I coming through loud and clear? Anyone in the chat can say that you're hearing me loud and clear. Perfect.

Okay. Good afternoon, everyone. Welcome to Worksport's Quarter 3 2024 Earnings Call. Founder by of our the joined and Rossi, today here CFO, Steven and Worksport, CEO I'm I'm Michael Johnston. thank brick. to growing like everyone us. Worksport joining We'd is brick by for a we And pleased this as and result, today, a investments strong other strategic achievements. to that quarter things, we're among operational revenue have share growth experienced

Our financial to a into our release brand, signal markets. scale and new trajectory expand growth and promising operational new metrics continue as products we

ending results sorry, Eastern of We XXXX. in September download downloaded will period the and the www.investor.worksport.com/earnings-call. today XX, p.m. the financial investor.com today's results X:XX for from prepared for remarks be at Again, and presentation issued were end investor.worksport.com/earnings-call. provided our the chat. At These quarterly will reviewing deck available -- call, be the at link can be

this the During outlook financial statements, we year forward-looking XXXX. full make call, regarding including our statements will fourth and quarter for

financial market statements details to initiatives only today's our in to SEC, on forward-looking other as macroeconomic expected expectations or any will risks any a uncertainties, made -- trends, assumes and rely the predictions are regarding statements which our and may and beliefs, statements we product reports of the impacts contributed many trajectory. not difficult and expectations in results forward-looking in made to our differ to they in The of are we that strong the go-to-market annual business are based of relate on should SEC and risks obligation let's discuss predict materially. with on in our these that call Because you to Form our date. on which this subject statements our future, events other financial factors do aspirations to only current circumstances and Worksport's the strategy statements. These and initiatives. These overview such opportunities, including are XX-Q that XX-K quarterly filings. And statements Actual year-to-date discuss affect subject inherent details Worksport control. and achievements change begin. We'll growth forward-looking performance in our with position, report Therefore, webinar. Form benefit assumptions. could and filings from and which foundational results, business that no are in of are forward-looking outside that, of have milestones earnings Our our are the and on environment make significant today's XXXX, highlighting forward-looking growth with may of update we begin and initiatives,

Following positioned that, revenues Then metrics, macroeconomic revenues and business-to-business our surge growth. our into the delve segments, in to performance uniquely market how current sustained present share focusing and robust QX highlights highlights, our the Worksport's key to map of we're profitability, our we'll showcasing road on we'll expansion. We'll strengths our emphasizing opportunities. emerging strategic insights increased environment, detailed financial long-term on capitalize business-to-consumer and driving on

facility a tested speak foot we year, ALX today Tesla technological expansion. strongly growth of state-of-the-art Stock groundbreaking be launches and for growth, upcoming year. Three QX. we're in upcoming underscoring to our September as what Exchange, state moment production $X.X our system to groundwork our sales insights achievement ago, proudly standards. of only in where of energy towards where establish government, early-stage This only future cover, Western notable America sustainable in significant to will successfully In grant on are marked including for in I following surpassed XXXX a entry journey reported the hard achievements. our significant manufacturing energy a into in innovation on quarter-over-quarter today, and in an to to growth initial into release from industry our by Next, XXX,XXX short New XXXX, R&D Energy products, set but enabled facility and Worksport revenue launched we'll with New began here future. and from redefine also the in million York, preview share exciting conclude exclusive and foundation we tonneau [Technical COR our ambitious innovations square proud portable made our positions we projections a we we XXXX, witness of growth started the of years product solid was January ago fiscal has our us uplisting ramp-up vision strategic XXX% confidence an for U.S. increase believe the have for This York. In awarded future we and June XX May, potential unlocking for Worksport. in QX, market. In our Difficulty] commenced our progress alpha growth a a Model a our pivotal X SOLIS signaling not QX COR this folding new charge embarked we months revenue the visions discuss that QX We'll the Nasdaq

aimed to initiated $X million as we strategic for impact at up enhancing profitability. IP portfolio We designed cost to protect expected carefully our savings that, innovations has and growth. revenue expand revenue our to to hand discussion and the future XXX the is or not its a QX gear Mike. to portfolio. With Globally, XXXX operational continues He growth. program, also IP which Furthermore, pending It's over in commentary Worksport results. trademarks approximately registered and I'm provide secure on financial our pleased efficiency global will patents our

everyone. Steven, hello, you, and Thank

rapid upon $XXX,XXX. building XXXX, the revenue momentum a and year-over-year increased tremendous increase approximately segments. milestones line in QX further to customer from This from of start is upward QX and top from outlook us. QX for exciting some QX underscored in notable strong $X.X not initiatives QX. Worksport of expansion began with driven opportunities our signals position, profitability. Worksport's XX% up. This XXXX's of revenue million, The revenue BXC push strategic reinforces reports consistent the XXXX our by and effectiveness our Worksport's market highlights growth sales as of continued growth the across but is promising new well products scaling as a market achieved XXXX XXX% our towards growth ahead growth XXXX XXX% innovative also production by trajectory sales increase Let's BXB when only of QX robust

the quarter. in a to did train margin temporary strategic So slowdown lead QX's Worksport optimize $XXX,XXX. early get aspect enacted QX production. in and production profit, We allowed workers to This which and QX, to sales gross for of and ahead plant this erosion seen strategic

positions significantly margins margins expected a our have BXB potential to of label be outlook through product and a we are label margins shift we business. of This shareholder XX% with is enhanced production ago, and the lower-margin product scale. underscores we XX%. The growth short strategic full-scale volume impact in margins this focus. high-margin, and gross favorably increased BXC of project our began to now lines, economies a margins -- only driving production, we gross expect to stronger and product margins improvement significant profitability expected to segments to recover. year. value up white scale strong time BXB the we in to in and anticipate to label introduction months targeting notably reach our private Worksport's revenues for XX XX% white mitigate our of product However, increase sales further early began near rising With we the next us BXC and our term. Considering segment founding and appreciate Ultimately, perfecting by and to high-demand beginning upcoming systems commitment market

Given the late product the of our a a projected remains financials. no QX. ensuring white ALX balance This allocated inventory enables strong position innovative production to robust our of without approximately is positive on especially later ALX unfinished QX goods. to interruption. channels, of with with us million, the have the $X.X details to ability presentation. Worksport's our in label and The we're about seamlessly rising consistent online XXXX inventory anticipated meet in We'll launch strategically set share and measurable demand impact debut supply concerns, healthy excited chain more with and finished to our continue levels cover customer tonneau between XXXX on uptake sales robust

facilities flow inventory and Worksport channels of operational sales our cash positioned that the ordering and meet QX based equipment current an demand which the Worksport. of increased projected to XXXX. strategy QX more growth and This levels enable further investments now production is experiencing efficiently. We transition demand market leverage positive for us to forecasts, and into sales current to to existing demand exceeding anticipated optimize Our are us to is fully remainder XXXX believe on allows dynamic meet will well

allowing term, near drive Importantly, equipment on no in assets capitalize the investments our profitability. and expected are to significant us

Investor Rossi back with and of Relations our on Now vision Steve profitability. to note a

you, Mike. Thank

million towards from our next a and will We're demanded Our forward late ALX I'm thrilled insights growth. sustained of ALX we share year Director drive flow year of Worksport revenues. significantly next the the $X multiples is strong figures. target of and $X in year our is hard XXXX launch the cash QX, excited to type $X revenues million all to expect highly continue drive bolster our in And achieve become Several went million tonneau poised to path be demand, realize progress. We fueling upcoming with seller projected most to the strategies a cover of profitability growth. we higher ending to market anticipated and anticipated. With Sales beyond to positivity year, the as month. dream week. of stated, and on our are in to to and that market the believe sales our our significant cover XXXX catalysts the margins leading The last

ramp expect taking late QX begun have QX and early preorders XXXX. in and up in sales We

on the growth coming in and can us growth profitability industry. Worksport's years, firmly the By strategy. expand solid is strengthening our within and focused unwavering our as presence advancement trajectory are our in capitalizing our growing SOLIS believe to energy our upcoming energy its of and forefront for to Additionally, to industry. state-of-the-art cover accept to portable innovative XXXX play growth Worksport release role the is preparing pivotal and position us bed COR our Furthermore, product is in products, the high-efficiency heat excited of is pump subsidiary, remain profitability. subject focus and market Energy, positions market markets, and on energy truck our Terravis foundation these over accelerating our that on at clean preorders achieving line. This solutions continued to the in a revolution place our solar conditions to we we which execution These automotive set is position we our within accessory catalysts, signature contribute accelerating beta for the trajectory initial beyond. of announce the our system

to a Our current optimized target covers are level tonneau the is upcoming on we If production we capacity achieve flow. track and production assets improvements per are cash within day, over produce anticipate attained, in sufficient this margins quarters. reach XXX to positive to

COR clean our our innovative a we Energy's These heat to Worksport the sales forecast each anticipate we to the We the as segments, achieve prepared multibillion-dollar of XXX potential capacity the grid presence. the at profitability of high-efficiency energy have covers to SOLIS end Worksport of to introduction a that plan have increased necessary system and to we'll this and and the expand exceed market Notably, relatively proactively and the presentation will us presence product this continue growing market products investors upcoming power time expand as update provide production in contribute to portable day grows. low. would positions investment quarter. Furthermore, to including subsequent projected demand market. be pump Terravis subsidiary, continue beyond additional our new a

us and improve to product Worksport's shareholders. needs. up profitability sales Additionally, production and the significant every macro to believe meet new and growth, we for our create by with to of a By continue cater anticipated covers value drive customer we diverse on Mike new quarter, lines, continuing broader revenue enabling scale expand commentary Back variant can to environment. we will to build tonneau adding models market including and SKUs COR,

a Steven. From you, pickup be to trucks U.S. vehicles on Thank the the macro perspective, continue road. top-selling

navigate sales SOLIS as to the use ICE cover pickup interest, While of waning vehicles adverse EV market delays will market well. Worksport's these both shifts. EVs, for EV without that adoption aligning we and with improved extend truck and to infrastructure has believe is solar effects future pickups experiencing and designed current technology, of us experienced

this tariffs to observed strategic leverage potential for batteries we've U.S. change Additionally, China, the ourselves positioning particularly from government's push by XXXX. We're on a increased as advantage. on imports

using batteries COR next-generation explore technology to U.S. and started have We production.

in on rapidly For near partnered to provide has update the look energy COR, COR system future. its and the first development for experienced generation the further the production portable with an partner partner an of market growing company with The manufacturing is expected. the

Chinese earlier, a annual perceived battery U.S. both to rate new we are elections. confident to of $X aim capture more of due strong market growth any in existing sales market competitors inferior a disruptions not anticipate XXX%. recent mentioned achieving As system our with and that products at an over portable than to market price, share. We portion attractive or and a with trajectory. do the offering remain billion our We recent offer solar share despite cover their first projected we risks Being growth year-over-year believing in

on value and segments. shareholders. insights our to Our executing to focus with stays firmly BXB delivering strategy and business Steve our BXC Back on our

BXB BXC be share our latest branded sales will you company. Worksport's future We're Mike. to the TV commercial. [Presentation] you, and excited the with Thank of

those YouTube take can on a listening Anybody look videos at our channels.

we signifies This Worksport's has of substantial in indicated, business-to-consumer lineup our offer we're business-to-business accounting initiating a drive needs, growth now quarter product reach dramatic over in the or XXXX. customer the shareholder with operations. Since $X.XX significant aligns online sales earlier to market sales month to and expansion we brand million business-to-consumer impact surge increase our project with XXXX, Currently, in SKUs revenue just products year. This XXXX. to and shift value. a QX online compared of This XXX expected further X March trajectory of our to awareness strategy meet sales reach end segment and experienced products more per in to jumping XX% the QX. broaden to in X% of enhancing positively with $XX,XXX diverse QX our As our $X X in growth total XXXX up from supporting is for an expansion before alone aiming in prior million for and exponential sales,

and of early developing America sales to between sales cleverly recent Worksport his signifies in -- of government federal next this government entities. The and XXX% gap In Worksport's network early support. level for entity, that's named innovations and our North to in to the America, Worksport by with on notable enhance growth underscores by fabric the one white Following plan dealer our each potential Made that products. our to dealer direct-to-consumer come account growth label sales of dealer will We shown supports business-to-business local economies. dealer a supporting XX,XXX of sales segment click-and-mortar, Siegel, targeted small ingenuity gaps We with dealers directors. secure on branded be to vast expansion. We well. Worksport's the Worksport our Ned that that months, more year. believe has Ambassador, has spearheaded of involvement network between bridge online new ability owner-operated prominent a aim which approach will past With are Worksport essential local the shopping retired, strategic bridging growth signs X More as of over across achieved sales over dealers U.S.

active white will and business-to-business half also label Additionally, and released in within we Worksport to of near product. Furthermore, recently believe ALX our driver and year, SOLIS revenue announced in key new several this only business-to-business not U.S.-based are be segment expected lines This We distributors significant in ever further have the the place be it's -- a anticipated COR underscores a to Rico, BXB Worksport Worksport's demonstrating to into have to our tonneau effective in in highly an a confidence territories for market are expansion international XXXX. product Puerto are cover demand will healthy be that next in and recently top-tier first for this increase but first margins innovative sales. The network in to term. reoccurring discussions order from strong customer discussions marking customers ALX, the projected ALX announced cover. solutions. and and preorder preorder national its

investors quick about Here recap our products. is new for a

highly our wide opportunity the SOLIS across to SOLIS the represents cover. designed to first-to-market cover anticipated a folding Solar Worksport for SOLIS markets. Worksport enter Starting range rapidly expanding truck of offer tonneau solar cover The unique a with base, patented customer first-to-market tech integrated The is applications. utility diverse clean

is to Next, Worksport's The portable the and modular X,XXX of a energy paired it allowing fully COR energy of SOLIS with modular, extra can batteries. store system. hours When up creates for nano-grid. cover, the addition system COR mobile watt

battery power globally feature beyond believe COR far COR mid-September. penetrate market billion alpha markets The SOLIS While to feature never-ending COR of is expected the pickup Worksport's $X.X at rapidly, swap this energy segment. the a truck it's is system of portable capability. We was enable the growing will and the valued release just hot that to unique and initiated

at market exciting. The traditional hard currently the units to Worksport's become in are beta tremendously crown ALX We poised XXXX, tonneau conditions preparing jewel are is in testing for release and work business. real these cover of

actively month, we the within alpha costs cover SOLIS to the to We COR premium to innovative products. our and believe enhancements With market. position expand compatibility. and to by the initiated launch release the and the the feedback $XXX has its on believe cover strategic are our superior be XXXX, product this industry. Worksport edge strengthen gathering the truck design competitive projected to support features, the our to and up expanding ALX will we refine growth consumer its implemented of in SOLIS reduce real-world mid-September bed Last of verge thrilled in

We're broaden Energy of to our has And subsidiary, Additionally, and SOLIS in are the a developing X the been for we appeal with XXXX. Worksport's to operational to product thrilled we're new of QX they last and made -- budget fascinating have diverse some controlled through of product specifications anticipated is light some COR across on develop effort QX new that grants Terravis launch demographics. system today. the customer announce developments we scenes. despite variants that shed excited alternative commercial the developing behind years, to

known order. In significant has a stations strengthen manufacturer. additional breakthrough results it promising that order make as technology planned development Aetherlux by to accomplishment further. advancement filings heat property sales line sector. the for leading globally. To a has First, efficient in in the potential its in position been line heat continues portfolio market been preparing as marks infrastructure that filed global EV significant global further steady believe assets our charging to The initial commercial billion-plus trademark with parking pump product will global achieved milestone press XX substantial the intellectual to is believe enhance $XXX scheduled competitive securing Aetherlux from edge, the disruptive a expand Upcoming a This release sales is QX, rapidly. have we product Aetherlux. the impact business heat lot Terravis patent coming a weeks, line. Terravis pump and force highly pump With achieved our Terravis' to in EV launch growth. product experiencing its and market We this has as

about companies our hosted We from meet R&D the Terravis team lab around to at have this representatives with already world product. the

weeks. more the detailed this excited are coming to share information We in about

end million We thrilled year on XXXX. previously the that by to exceed million guidance to we issued of of the track $X revenue are to announce are $X our

million will For its $XX in revenues. XXXX, represent current Worksport line alone the year-end product believes that

anticipate between launch project XXXX, into Taking lines. the With revenues we late million million from of XXXX. in circumstances we stream product varying those million line be and product $XX.X $XX additional account, to of to up XXXX an in overall additional successful revenue an $XX.X and

XXXX per a become goal We in XXXX with sustained cash earnings to on project Our positive share keen EBITDA. and growth into beyond. and flow focus is

update thank for As on much always, for and forecasted products current Worksport investors will so product continue launches. With your that, guidance to attendance. upcoming you

ahead. for very are We excited year the

for platforms. investors.worksport.com media at already, e-mails social done sign haven't on so you all please our up and us follow If

welcome the Our to is answers handle attending the floor Thank and by on, TikTok, questions now from and general opening from @Worksport analysts investors. media is live so questions followed platforms. Worksport Instagram the call, Ltd major you. on those we and all

On access for your have and answer. Zoom webpage, question an you

please there. With have Tate have like your questions do that, the submit open your you any Sullivan, to hand to questions, questions. you I floor If analyst up. see we'd

from with in And products incremental projects then up ALX? projects million $XX to are to what most current 'XX, the of terms starting going with likely please? -- the $XX.X revenue products million million, mix for that and variables rather, XXXX of revenue additional in $XX is the some of than Or new the guidance more

of We $XX and do a because door a time It's develop Tate. our ALX, that to processes the the portion million ability at The that ALX much But get them to new be is the as a smaller expand will revenues likely for feel our will a us. the take ALX revenue it and year good year. foundational -- expand question, the our product perfect forecast. production our new and a will think ALX will next it we larger next product capabilities, will product out driver be certain point, become

sales as larger considerably or However, indicated, of in subsequent periods. portion I significantly

the BXC you achieve your -- that please? gross that that margin absorb then showing at a growth in margin profit operating facility? pricing? manufacturing [Technical level you How the margin the as presentation you on And the up meaningful have profit current Difficulty] on XX%. slide Is growth, at gross do in Is to

of scale. economies the through It's

those cost or or in pay as we no major aim or operational now significant most or this revenues. expenditures, those, a fully right So presentation increases of indicated to expenditures increase call, factory this all achieve of in the -- of overhead capable we we with

we inventory to without that achieve dollars the targets management another millions all factory additional the have the resources, of and infrastructure, those already team place spending means human what therefore, or of So equipment. are is or needing in

say faster. I continuing efficient to engine a metaphorically is of a So be it's first through when car perfect then our essentially product starts. make and typically least it that and scale the perfect able of to economies the process

through with those expenditures able profitability economies be And So naturally efficiency. the economies. increase major just gaining we're and we'll we of efficiencies scale, and targets expect of no that revenue the because that to achieve

And revenue. of over. Online sales before last one XX% I greater turn than

in own the detail across Amazon, portals Or spread different and there you your Is that's I Q, site most the that successful think you? others? you're evenly the is all using. one it for

almost Worksport's Well, presently. answer so driving misunderstood. question on it's focused exclusively let sales this me properly, not

direct-to-consumer are using For sales, Those inferior just if say, platforms also of over like don't worksport.com. and sales been typically platforms XX% on would really littered space imported I those majority, popular. share the eBay not, albeit catalog We're to avoid want very trying we to Amazon, with products have or with. that products

we Amazon, So or imply start value and trying and on can When we spirit that put we into America driven. with to really that consumers refrigerators can that put love -- there covers. there's the we we bring products feel share the craftsmanship to where the point of our out sales the website and tonneau and make product, our the court drive in be and could Made we that imported care brands real that be space

that or care. So no craftsmanship particular that means there's

fabric of direct-to-consumer been we the a say of with want has big is which to will I -- work dealers. I that as driver Lastly, we indicated, sales American business, local although really beta recently,

continue our build to will dealer We market.

and sales dealers members and our driving support will as of We team treat economy dealers. to that by support we American continue will to those dealers us the those

feel get pickup a in the us that buy really and a cover those be going that very we future. trucks is service. And want local is that can circular for economy strong tonneau So to

considerable taken we're dealer and to we'll off. businesses, our behind interest dealers. that of So small direct-to-consumer will proof-of-concept now been stand American to level and But our our support continue the going support have growing We're them. support XX,XXX we're going and sales are on there product, finding to it's which

Turning Poe AGP now. the from floor C.K. to Fratt

all, previous Well, was go Okay. to XXXX? your million to Great. of the first forecast guidance guidance $X your Can 'XX for you million. just for or $X back

for the said that. revenue going You you're beat What 'XX? is to guidance new in

call Good to answer or Fran do is you might should on Paul. my ] answer? able that But better I answer He question, behalf. want well. -- to to as I believe on you Fran, [ want do take the be

exact Sure. to Thanks, coming and data yet as models investors updated with but range providing anticipate out But beat forward a comfortable Steve. a of lines, data new end expanding not number there to not new We're in and in call. significant. the We the product to new upper tell we're QX do the do anticipate -- channels. $X million numbers beat, look to be the coming we still

much nothing So higher million. than $X

So maybe for target million as million a as to far $X $X 'XX?

course. Perhaps -- potential for higher, of

context you're But if that I don't you focus. to then in bigger know sort -- to a what's -- especially you But understand is to that Yes. going rough guidance? Can just new 'XX? I if to it you're why BXB BXB the going talk to XX% guess talked mix you're XX% BXC about of just I you're you and going focus how beat that's it, like and likely a and not dealer and going Steve, of mix change for out put upper in 'XX? change -- just that be BXB? potentially ALX will BXC you know, talked for versus on to how the end components, networks revenue. Can different about you of more range. ALX the a then and and and your about to highlight guidance you SOLIS COR getting maybe for putting 'XX out 'XX, then Is

it's I fair think least to that XX%. say right now it's at

but on it. and bet phase to label on out softly listening, is the product that to was private what somebody for with in those said private what are our Worksport sales. beginning And brand on we call, said earnings label starting clear sales So lot be a we're else's anyone to is we're

XX% on sales. right our brand online is And product with is other -- XX% it. logo worksport.com So lot now some else's sales, of a sales somebody then the Worksport other of

a policy, Worksport. as doing of phasing we're to implied equity business. build we critical value no our Worksport. we're going want is is We longer we're be, future So to on out of We betting to the what that type for brand be brand and -- going believe

So logo. every business-to-business proudly the least the what XX% at very product label happen the private we at I business so Worksport think door business will that brandishes Worksport least the that goes is will out XX% for branded swap

However, because that business. support of XX% small businesses, American could we want be to our

there's appetite that at our However, have just we don't business-to-business, of looking start XX% for. I the or being a once think business concentration XX% that we risk

So as keeping goes brandishes the key year. possible door goal that close next and sure as proudly our is our that it out target logo Worksport is for product to our XX-XX every making

that able And the erosion do Great. That's margin about ranges you'll or your then be then third BXB private margin, shifting where you talked your When product. branded Clearly, helpful. at for also think to to ranges generate for over BXC to you will hit label, margins margin and look about? talking the then if you the that kick you're in quarter. in

be to maybe of could in give that -- you idea margins the like, what quarter too. fourth context helpful an look If would us look

mass integration improvements at make to looking things, we're of the way The looking manufacturing. moving at we target, manufacture in continuing automation,

parts So to very a cost using situational bond example, automation were and historically, adhesive saver. certain a saver and that's adhesives to our system covers changed clever together. We've to automation time a we it give lists, recently of use

it, to was it build and learn inefficient However, we it, perfect with. begin to had which

that we so upgrades, new do line, we involved. I of were to types before we'll significant focusing with gain probably retest continue to -- continue these next until I these hopefully at product they will we're these just take trend upwards types would on and be heck the launch building pain improvements that the XX%. of But longer-term in we'll where short-term of don't margins improvement expect of will would XX%, that we see things, As QX after the which year. QX out

now and making process more continue be invest longer room" freeze the continue out station. Everything product. to replacing then it cover no glue-less it station is improving all X but X quarters maybe line, minutes sub-X between us So artificial of sub-X tonneau of would think intelligence on be XX%, a QX where I ultimate that beyond goal to and is, processes. to is efficient. QX that it, XX% and That and to robotics that start again, will And "elbow for in QX will a the out and a analogy are XX%, getting And it evolutionary next more and removing upwards we getting taking with will glue minutes per to lights of XX%, minutes margins. be -- I QX could is frozen. gross and changes. Therefore, and we And station, of going just the be work that's on line to believe the it the glue next back We're improving year through no off beyond perfecting our year. where

next production quantify the XXX fairly alluded to as Can invest to money spend Okay. of Steven. covers you'd equipment. that production? if And then per amount low you CapEx or beyond over on that just presentation, get that in a might you you That's day, could then you look -- quarters. expand little have in helpful, of it's to have And to put couple you capacity of to just capital the

Sure.

it factory we least So we tooled or factory, when anticipating tooled at expansion. built the our

of capital of well. some foundational place, in the out we a years that initial expenditure the already really space infrastructures infrastructure, So as in infrastructure paid lot were that we spending, a where is early power, lot

So requires be X X-man the is additional operation could not we've -- if advance therefore, requires be already spent and could robotically or equipment lights out. expansion. The of in processed, automated,

resource. the $X million little be that equipment and than So ballpark $X.X expenditure more interest. no represents modest which equipment million, vendor requires And human subject no financing to would at be it would to

means to the So what would to up experiencing is pay cost we months, example, systems for without XX any capital. for of that have also

planning to the really and and using money, any So while pay foresight by of for significant team. be us profits while could installed without would then a even to the equipment our necessarily very itself expenses equipment use having management layout almost and our the it use clever amount own that win-win we absorbed of in a we've a and vendor-financed in already the

question audience. products? both. Thank you discount ]. Will A in questions El some investors we Steve, the Will get on from the company a from ever have [ investors

a X maintain product, to for a then It's to people and always have us incentives. for level sell dollars to for We example, dealer unfair dealer have to for direct sell less.

America So ALX, right made to product fair to that maintain our now the is is best the already $X,XXX. competing product -- closest market, our in integrity example, it's the in for say

a it's discounted already a discount. So already product. It's

price interested or us, Don't -- call call, we individuals our with them chat in hat anyone service text our what our but brick-and-mortars of and we a that brick-and-mortar, to don't it's We we -- purchasing our all for Michigan equitable minimum us, or to sure dealers advertised can some a it's encourage it our us. Oh, we'll that owe us. and or manufacturer don't incentive, encourage and work product, online we when -- to to example, in sorry, them only pricing dealers us, the the fair in we referring e-mail make happy, good best customer rapidly. growing and support a already sort is our states to that's a speak maintain abilities. those or T-shirt over have However, to of I X-XXX-XXX-XXXX, whether that feel our say is price make

better may price to can. dealers we be able a than Our offer

be those local We able option. a also refer that's an may investors So to dealer. to

a to in of perks. investor, better free XYZ, installation state for in an dealer if even may can example, we offer refer is them be these them So price maybe and to great the types who of able a

I agree. Steve. R. is from you. to Thank coverage analyst of Thank you, more plan institutional There's [ and -- company? another your comments have Carey question We'll the ]. What again. and ownership

to tends ownership Institutional cap-driven. be market

market revenue these on a Xx, conditions types typically X market to a cap. We -- multiple things, more feel $XXX valuation plus target Worksport. to is and a my with jump where depending institutions that X-figure we market for So could million higher as at start of in where all of is companies caps, become innovations and

and think holding that's Worksport it. more start And will so when I buying institutions

a his to based days. Analyst going covered trust great every relationships mean, us. analysts, partner today, are and those Although of in on we we XX more we some feather us with Poe, since -- research has And from cap. coverage, -- has that our a continue earn I since been that's build up, want to us point and numbers hold who's institutions at great Tate uplisting coverage on our almost be always his transparency. the other to division. hope call the

company So all become tide think execute, we'll analysts. I further as sail by great be covered think high ships. a And to and I that we'll great we continue

Steve. $X $X a share ]. It to question reverse that doing be going per close per Lawrence will share minimum split? to be Worksport feel appear times A Do without satisfy B. Thanks, -- through from guys price behind reach. the Nasdaq is that it to to the appears price [ you like that is minimum appears within tough the go you

exchange, Capital love which think Markets I a that Nasdaq look, is having from So we OTC. graduated the smaller

no I consolidating well. we stock the OTC a as say What is intentions called However, has reverse market split. come as a long or of have otherwise we a feel can our that way

have obviously cure for deficiencies, amount able a looking which do those to us look, starting are to to be to we're a considerable things able to We of time better that. be lot

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Steve. Thanks,

D. question [ regarding from question wordy. The the Terry bit improve ] and another margins a plan how to have we them. is We

answer foregoings the margins project we and So rather out, on to read and the to the margin profit to how plan of improve it we is the see profit erosion. increase than due how margins

needed you and that production Steve, think come day. And from that factory. is ramping benefit There from slides, and is XXX XXX a to the to the believe that ]. positive. as exceeding be will about and XXX, to a QX production accelerating will believe we covers that on margin will also me G. production capacity available Worksport a we to since is scale QX sales question just along, one day, So And start to around quickly. We Can be We mentioned scale Perhaps marketing quite to marketing Michael other television? erosion furthermore up overhead. functional cash in us eating as in low possible the commercial going QX flow efforts? more fully [ most had we and XXX, we the the it further with commercial speak and QX of as new of covers see comes be that last

Yes. Sure.

calendar. -- think my open I -- up let me are we So

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marketing that is our First to stage people product. want

Second brand the awareness, stage company which brand drives which more to drives corporate is to equity, just side. value and

they closing do for e-mail investors like we'd investors@worksport.com questions, that, If give call. Steve, Thank you to I'll question-and-answer end us the it remarks. you, further a to at Steve. any back With pass period. us can have or

We're listening. our We ends year off. a those $X in from million a working real business. a rear We're to went month. million building Closing simple are $X remarks to all

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Thank everyone. you That Have a is the of this great day, much. call. very end

everyone. you, Thank