Worksport, Ltd.

Good afternoon, everyone, and thank you for joining WorkSport's fiscal year 2025 and Q4 2025 earnings call. I'm Stephen Rossi, Chief Executive Officer of WorkSport. With me is our Chief Financial Officer, Michael Johnson. We will be reviewing the financial results for the quarterly period ending December 31st, 2025 and our full fiscal 2025. These results file today at 4.01 p.m. or thereabouts in our form 10-K and can be downloaded from the link provided in the chat. On today's call, alongside our financial performance, we'll review our operating execution across the flagship hard tunnel cover offerings, progress on the commercial launch of our SOLUS and core offerings, our capital position, the key strategic priorities we're focused on as we move into 2026. Before we begin, I wanted to frame this call the right way. 2025 was a year of real top-line growth and significant margin improvement. Full-year net sales nearly doubled to $16.1 million, and gross margins improved 2,800 basis points from 11% in 2024. Both are significant milestones as we achieve, and we achieve through a combination of expanding our product offerings and increasing our presence in both direct-to-consumer and business-to-business sales channels. Our fiscal 2025 strategies to expand our presence in multiple sales channels, introduce new products, and increase our market capture result in a net operating loss and increased use of our cash otherwise generated from our growing operations. Our use of cash to support operations did not grow at the same rate as our net sales. To address our need for both operating and investing activities during fiscal 2025, we supplemented our cash flows with external capital. This strategy complements our intentions to capture more meaningful market share from our very large competitors. That is the right context for evaluating our results. That stated, we still have work ahead of us. We're evolving with additional product offerings and recent learned experience of navigating entry and growth in different sales channels. We have all the pieces in place to make the years ahead transformative with a keen focus on lean operations and generating positive operating cash flows. Our time and investments through the end of fiscal 25 have set the right foundation for fiscal 26 and beyond. We successfully transformed the product capitalization to market delivery. We increased our brand and sales channel distribution presence both with direct-to-consumer and business-to-business customers. Most importantly, the lessons we learned along the way now create a clear pathway forward. Our recent remarks will follow a slide presentation. After our prepared remarks, we'll open the line for questions. At the end of today's call, our prepared remarks and presentation deck will be available for download, as always, at www.info.

So with that, let's begin.

Safe Harvard Statements. During this call, we will make forward-looking statements, including statements regarding our financial outlook for the full year 2026, our expectations regarding the financial and business trends, impact from the macroeconomic environments, our market positions, opportunities, go-to-market initiatives, growth strategies, and business aspirations, our product initiatives, and the expected benefit of such initiatives. These statements are only predictions that are based on current beliefs, expectations, and assumptions. Because forward-looking statements relate to the future, They are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict, and many of which are outside of our control. Actual results or events may differ materially. Therefore, you should not rely on any of these forward-looking statements. These forward-looking statements are subject to risks and other factors that could affect our performance and financial results, which we discuss in details in our filings with the SEC, including our annual report on Form 10-K and quarterly reports on Form 10-Q and other SEC filings. The forward-looking statements made in the earnings call are made only as of today's date. Worksport assumes no obligation to... ...across multiple product lines. We will then address our risk profile, liquidity position, and capital strategy to provide clear context on our financial profile. From there, we will walk through a detailed financial review, including full year and sequential performance, margin expansion, net sales quality, and operating leverage. We will then cover our operational execution, including manufacturing scale-up, distribution expansion, and key product milestones across our tonneau cover product offerings. Next, we will review the commercial launch and positioning of Solus and Core, followed by progress at our subsidiary, TerraVis Energy, and its Atherlux platform. We will also address supply chain dynamics, tariff impacts, and our intellectual property strategy. Finally, we will conclude with our fiscal 2026 financials, including key milestones, our path to cash flow positivity, and the strategic priorities driving the next phase of growth. Let me start with four key takeaways. First, fiscal 2025 was a year of strong net sales expansion. Net sales increased 89.8% year-over-year to $16.1 million. Following fiscal 2024 net sales of $8.5 million, the scale-up of our business over the last two years is clear. Last year's jump from $8 million to $16 million demonstrates a clear demand for our product offerings. Recent and forthcoming product launches provide fresh offerings to market participants. We're still growing and expanding our brand presence in the markets across multiple sales channels. Second, our gross margin profile improved materially. First-year gross margins moved to 20%. moved to 28% in fiscal 25 from 11% in fiscal 2024. On a derived basis, fourth quarter 2025 gross margin was about 30%, compared with roughly 11% in the fourth quarter of the year before 2024. Our margin expansion consistently grew as we enhanced our market presence in 2025. Third, we turned several long-running development programs into commercial activity. Our HD3 cover transition into production began contributing to net sales in the late fourth quarter of 2025. Our Solus and Core product offerings launched commercially in December of 2025. These are important developments, but investors should also understand that these launches came late in the year and do not significantly contribute to our fiscal 2025 financial results. Further, these efforts impacted our needs for operating cash flow without complementary liquidity conversion. We expect liquidity conversions from these efforts to otherwise enhance our financial production in 2026. Fourth, WorkSport has evolved from an emerging brand into a recognized player. In the $4 billion tunnel cover market, our product offering differentiation and focus on quality have allowed us to increase our market presence in the last two fiscal years. Our dealer network alone expanded six-fold in fiscal 2025, now encompassing over 550 locations across the United States and Canada. But with over 17,000 dealers nationwide, we've only just begun. We're targeting aggressive expansion in fiscal 2026. More on that later. Our brand identity matured Our brand maturity is supported by our ISO 9001 certification, which we received in April 2025. This certification is not just a badge, it's the prerequisite for Tier 1 OEM relationships, and we are actively pursuing those. As we enter fiscal 2026, Worksport stands as the only company currently offering a fully integrated solar and energy storage ecosystem for the light-duty truck market. I will now address our risk profile directly. Our fiscal 2025 Form 10 includes an explanatory paragraph allowing management's assessment of the company's ability to continue as a going concern. This is a standard reporting requirement given our history of operating loss and as a growth stage entity. Importantly, our growth has been outpacing our cost structure, reflecting improving operation operating leverage as we scale. With the foundational investments of 2025 now largely in place, our focus in 2026 shifts towards disciplined execution, monetization, and efficient capital deployment. Despite continued increases to one of our key raw components, aluminum, our margins continue to expand and we expect our operating cash burn to normalize as production overhead is further absorbed by growing sales volumes in fiscal 2026. We are targeting and managing initial signals of operating cash flow positivity in 2026. More on that later. We remain transparent regarding our use of the at the market offering program otherwise known as an atm in 2025 we raised approximately 0.5 million dollars half a million dollars in net proceeds via the atm in november 2025 we amended our agreement to permit sales of up to an additional four million dollars to ensure tactical flexibility we recognize the impact of dilution on our shareholders we all feel the same our strategy is used is to use the atm only as a secondary tool We evaluate and select the capital tools that are most advantageous to operating while being mindful of our shareholder responsibilities. We have historically prioritized the use of certain capital events such as the high impact warrant inducement completed in December of 2025, which brought in $6.4 million at a fixed price. Every dollar of capital raised in fiscal 2025 has been tied directly to current and future operational return on investments, specifically doubling our overall production capacity and strategically controlled R&D investments. With that, I'll hand it over to Mike.