WKSP - Earnings call transcript Q2 2024

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Steven Rossi

Good afternoon, everyone. Welcome to Worksports first ever live earnings call as a NASDAQ-listed Corporation. I'm Steven Rossi, the Founder and CEO of Works port, and I'm joined today by our CFO, Michael Johnston. We'd like to thank everyone for joining us today as well as all of our special guests listening in today, those working within the capital markets and various research analysts.

On today's call, we have exciting updates and commentary to complement our Q2 earnings reported. at posted just was X:XX p.m. That XX, August just about ago. minutes XX today,

available XXXX. issued prepared will will I the quarterly provided today's for XX, we reviewing said of period the end in and results reviewing June invest.worksport.com. We presentation for be -- deck link results above, be and be download downloaded today, X:XX will at p.m. at the remarks can financial be ending the our These as At were from call, the chat.

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

statements product obligation are financial Our results, expectations webinar. these XX-K report benefit of and initiatives. and and opportunities, actual micro market forward-looking Worksport our the These regarding the such position other differ predictions our detail expectations report, only discuss in our included -- beliefs, could statements we we filings on any no on annual and results Form and financial performance These go-to-market based subject initiatives, impacts may in and that materially. initiatives from environment, statements that current strategy are our make trends quarterly in expected and macroeconomic forward-looking assumes today's growth are Form business aspirations the our which to SEC affect to update and risks with statements XX-Q. factors forward-looking may business

on most then, diligently X foundation years Worksport. what thrilled And into future. to allow we Today, continue company our the strong recent uplisted us propel share that, with routes. These with begin. will laying NASDAQ. routes we've are Worksport to let's for a since developments. is the we're been And ago, to

begun of online we proudly XXXX, state-of-the-art has In folding ALX company the in our $XX month campaigns in company's by hard January has are sales direct-to-consumer announce manufactured Today, May marketing we production XXXX, launched to targeting tonneau factory our reported the cover XXXX, excited our history. yet. X early-stage quarter ramp-up, America. of million sales As quarter its And sales. been past best best this the March that

made has business segment. beginning. American this we expanding and is within pending sales To early aggressively secure is and $X.X traction patents targeting. and billion positioned market, substantial a global registered IP rapidly a leading is bed and cover these truck Our we're the on within innovations are been and trademarks has we've business to eager continue tonneau which Worksport protect portfolio The remarkable, just approximately This our scale. future our XXX growth, its received

market. X,XXX the We unique pickup to watt of enable to power designed wide market units and work and launch. range each system to energy COR tonneau can will The Worksport rapidly key XXXX. tech -- prepare swap alpha extra intends for sorry, modular, as allowing store SOLIS The diverse The Worksport's SOLIS COR the a fully rapidly, with releasing influencers we for hours batteries of clean producing nano with cover first-to-market that Worksport of SOLIS and a when is share represents Worksport portable a of currently release with in to grid. battery of available base, are capability. mid-September solar patented for we customers. COR expanding valued customers billion in enter COR be of the covers hot astonishing these markets the segment. test for believe modular new far growing never-ending portable half globally beyond addition over creates feature the X power truck this truck energy at cover customer second SOLIS the a an market tonneau anticipated opportunity COR just system of products $X.X highly full energy applications. penetrate unique our will Worksport's offer green at features the the on of paired and Starting select hard system utility XXX solar the and with across

in We are all-new F-XXX address launching will higher conduct and in launch within truck year. stakeholders. early folding this on that QX is will cover anticipated as growing be product -- news this to new this hard also of key product to quarter. planning to in information unique larger installed market a Also, a a More we system exhibiting and segment Ford higher the The expected demand. available as much roadshow model tonneau market be QX with pickup outlets an will this later

about excited share X more very in the details we'll and later next the are We months, presentation.

hand our now, I'll to Mike it to results. QX For over discuss

Michael Johnston

Thanks, Steve, and hello, everyone.

milestones start some Let's QX. with exciting in achieved

marketing experienced recent increase from space is Notably, growth with million sales QX sales directly So efforts Buffalo excellent QX factory XXXX. new revenue revenue related to million Worksport achieved net year-end and fiscal XXXX, The Worksport's traction the continue. the its entire QX in in expanding of significant rapid quickly dealers. to expects from sales e-commerce successful remarkable a surpassed channels of with The of XXXX. up XXX% $X.X for $X.XX in and growth sales for company's and its company has

a of of number in per monthly of and premium million ongoing of to the ramp-up $X sorry, the achieve on the line of or to company introduction with the The continue recurring XXXX By will product in the month. -- XXXX. grow approximately believes revenue QX, ALX QX end ALX line track Worksport was this ALX

and improvements that to QX for QX year-to-date efficient historical better We're has less with in year XXXX. expected notes Coming margins say efficiency this expect latter the was production in XXXX future they to and the baseline half to of compared This margins. reflected in the is part to plant. early of profit relation been product XXXX. excited production XXX% baseline enhance low, efficiency of be in by here XXXX, have still improved that are than the margins XX.X%, while Gross

In and of efforts second year. fiscal These addition half the through substantial notable clearly savings rise product more improvement, launch lines. company XXXX year the cost from anticipates reflected the of the to ongoing improvements the into be and in in upcoming this calling expected a achieved will margins premium

line the foundation Worksport the sustained margin initiatives consumers. and heavily flow product for positivity. cover the Worksport in and more premium in product move well towards meet The equipment in cash notes the has equipment, XX now innovative and to positioned upcoming No cover the Worksport of percentage operational forward growth. operational inventory infrastructure value. invested tonneau place move remainder company months. dollar use become ALX XXXX. investment anticipated and its be growth that expected the next among both Worksport popular for is infrastructure significant a strong to to for to to is within ALX higher current price expected build also sales investments development product an forecast tonneau the and facilities is

loss revenues clear to As operations cash the net move XXXX. the decrease expect towards we vision to from accelerate, the operational flow positive within

in beginning $X.XX of invested total $X.XX million balance inventory, million. the the company bringing the strategically of the Since year,

this monthly recurring inventory. turnover revenue, we we accelerated continue our anticipate to As to expand an

XXXX. further company With plans make the the COR the SOLIS upcoming in ALX launch of and investments, products, particularly inventory fourth to SOLIS, COR and quarter in

command SOLIS and markets. to clean new become modularity achieve for selected. customers COR products. and tech opportunity on $X,XXX COR a special also growth expected accelerate batteries, system of price to Worksport financial note segment market the hour The on a the products upcoming into of $XXX. watt to each, X,XXX market unit price and repeat higher-priced expected impact Worksport's end, opportunities and to presents and customer that between are the $X,XXX This a notes revenue Worksport's presents of To are $XXX successfully additional depending expand between buyers, significant which package

update occur in outlook alpha the read on moment infographic QX Worksport sales With COR September, give and your on We'll an screen. the to call. to the a launch XXXX the will SOLIS during earnings for everyone provide expected

the turn to highlights. And I'm for going and to Steve performance it business back operational

Steven Rossi

Excellent. Thanks.

question I on covering Go a before research Tate Sullivan, actually have continue Tate. we ahead, -- from have Worksport. We analyst

Tate Sullivan

to. are New capability Happy to you if versus are countries? what But save you to your you what other currently in want manufacturing manufacturing can from it York, you importing end cover

Steven Rossi

yes. Sure,

the produce with from lower covers states. line to of tonneau the expand soil approximately can meaning building per we set America, of residents North from which is components to XX is America the almost sourced cover X,XXX the So footprint ALX by up paint in expansion tonneau day manufacturing the majority North within The without the and additional XX%. produced

from our remain So America. are being The factory a gold folding China. imported in tonneau in imported that may of by -- so that presently are products covers overseas standard our soft it's from contract definition

most at that let However, better or produce which America equipment necessary most within least to tonneau XXXX. we folding me necessary do soft all finalize North explore have covers to -- within say, or intend at we facility,

on. Okay. I'll carry

marked This strong of growing a in and presence. the in months, our in efforts future laying with scale of port for establishing production beginning growth on has initiatives. bottom January, quarter Most name the our been amassed March After Works inventory economies brand started numerous aggressively through In scale. groundwork improvement technical marketing and revenues X the of line initiated milestones, dynamic process and highly market was continual achievements significant last XXXX. our we keen its the of by all, in focus

e-commerce continues Our to strategy grow.

revenue We QX sales and have distributor expected for which to is initiated fuel dealer outreach growth and onwards.

is over The solar a on business. and cases soon on charge X,XXX COR's The watts of redeemable grant test honored their the in various to of capable was power the hour employee in provide Western COR growth grant with just conditions. cover, by power SOLIS projected few. maximum an New campsite COR few activities. recreational results XXX The watts joint lots could alpha with up our a actively With the for Worksport York This test announced XXXX. is watt electronic release recognized of microwave excellent be use in tonneau of May, over system million become fully name a lifetime. result charge for will approximately and devices hours York note endless. provide good it of state update fridge, has its to tools a output, is enough New generating cover The based our power to office valued governor's ahead starting at site of SOLIS In a run X,XXX can our to taken personal and weather a system supporting expected just job in Recently, are various power September. and the or $X.X we operation we'll of allowing

to COR the shape are be SOLIS future will The of and that products Worksport. anticipated transformative

of base and use COR pickup users, existing expanding We starting -- in cases, our SOLIS various with market the truck will targeted initially advantage to eventually competitive compelling been globally. America have North diverse but and them to their markets and system

lab customers, new testing is our as excited Tech opening are of it nanogrid Given at Ltd. SOLIS COR is about -- opportunity the division. right the COR of Worksport out on our to of launch. why announce a markets possibility Worksport XXX% which tremendous Worksport excited global, future. success the Clean developing to and transferable bet, this engineers slide -- act figures in off business battery I growing our truck very existing coming this and vision the COR, for system opening market endless of the space. AA become have a target to of the with note year is and solution companies begun We markets China couldn't portable for our we're to plethora the more a The of X batteries and Worksport's of unique per our be

this With to X its begin Worksport in conceptually divisions. now business will mind, referring operations in

and Automotive; Tech. Worksport's First, Clean second, Worksport

is business to midterm X-figure in term expected a rather. -- cover short Worksport to short propel middle the into market tonneau Our to company mid-

and middle XXXX, stock Altogether, While this of that we're beyond was that opportunity the market. of we the is the believe press in achievable. upper on In positivity up that quarter's guidance, the we flow seeing result, beginning reaffirm a Worksport's the issued that to remarks terms setting a clean revenue undervalued. tech to division release on ahead. our us a stretched April believe Confident this upcoming plus aspirations that our shared statement. is Today, revenue XX-figure quarter we opens just company climb update given growth the prosperous path cash of

presence Worksport ALX expanding continue ramp will States to and United up sales, across its Canada. the

we're annually, covers domestic surface. X the size scratching With over the sold market million only of just tonneau

excellent in business-to-business ALX short as QX by features key customers. reception The to needed. our shares awaited, received allowing have the -- with so far eagerly cover forthcoming Our in company covers ALX ALX ALX anticipated strategically production the particularly highly the is optimize the

our launched expanding This live supporting our of and a resellers foundation for our have we which quarter, online dedicated sales a network fond initiated program, dealers brand we're dealer strong website established to and which presence of. for both and very a

federal market pursuing Additionally, within sector. began potential and recognizing the actively significant this fleets, state we

while Worksport business future SOLIS investors. customers Importantly, new The system. SOLIS offering filed we're allows month, earlier the to raise all recently COR the prices, capital COR potential targeting or Worksport if and Worksport government utilized. building of above XA this crucial at successful daily presence and are customers. be brand market market will filing and launch for This a

especially Reg of given offering, which success this oversubscribed within We the A opportunity, are was excited X last very our about month.

products revenue intended A products. chance vast opportunity potential proceeds a company, investors significant these the market release funding provide in opportunity a market is SOLIS and with offering for the With primarily COR the direct of with the a and to to representing ROI participate Reg

enable will us investors base. new our and expand offering this attract shareholder retail Additionally, to

for continues the of an in New they products company strengthening for Western ISO draw opportunity to factory. achieving and and growth and its SOLIS play a goal grow certification as this represents segment a York is exciting committed accessories certification pursuing COR shareholders keep progress, active near-term our the near and be ISO increase and we in significant filing company to OEM future with informed Worksport of we'll potentially And launch relationships. market and the to automotive in our our the Furthermore, business investors. existing is business part As crucial future will role near, the to the anticipate of upside the our and the

long relationships Hyundai to We with and term, are relationship committed pursuing to truck our in manufacturers with EV active. OEM the mid- remains

can could potentially estimate cost electric extender portable SOLIS customers. more We delivering per to a savings trucks. be enough for day, range power provide utilized cover EV the as The pickup or for X miles that

are slowing on pickup estimate production, to this we More slide. uptake. on EV While down truck OEMs next the

combustion The has pickup the technology, allowing We by interest. as EVs, macro market trucks a Worksport's tonneau waning continue future adoption to vehicles pickup the in pickup well. delays EV use solar U.S. truck and EV and of and navigate From the trucks extend be cover infrastructure to shifts. U.S. us U.S. on for the SOLIS will effects without designed vehicle market engine -- both current to top-selling perspective, on experienced roads. adverse that improved sales with and internal these believe

company already change technology provide near batteries on will its in UPS push partner and the We've and leverage imports government's observed The production advantage. China, XXXX, next-generation ourselves begun developing positioning the COR we're update production. by for future. using we SOLIS tariffs particularly chance increased to this this the Additionally, U.S.-based on in for batteries a from COR strategic as an

growing development expected. portable market is further energy rapidly The with

share in achieving $X As perceived growth market at cover despite competitors, aim from of the we our a mentioned to U.S. we and to capture sales rate of their earlier, an inferior Chinese both offer share. are annual offering portion over with and belief market. over a XXX%, products market product market first stronger attractive new existing price, solar with Being the that year-over-year a billion

the or the track issued million At $X previously are end million guidance. to by year guidance QX revenue $X on XXXX. revenue of gross our current the rates, to meet future exceed Regarding we of

revenues account and aware SOLIS potential for be ALX, from please does not COR. this Importantly, guidance

launch and products tonneau year alone ALX segments. revenues on million it's its to conservative highly Worksport of product million and is So cover soft based those solely this XXXX. year within the next cover our represent in $XX will and business $XX for that believes

of to the company. company market of our initiate middle conceptual push for to September. -- market the middle and excited become foundation this a release a is the division large SOLIS business are We alpha The COR future

tuned Worksport call. on guidance QX clean tech, look earnings the future our inside XXXX journey in sales For stay for

Steven Rossi

floor opening is answers. Worksport questions and now the for

either We analysts a that press call from address those live release we have a will time. welcome list general or listeners. and attending of later the previously the during investors a We now questions at submitted questions via call, by followed this from

Unknown Attendee

you the for Thank call, Steven.

Now [indiscernible], directing CK to AGP. from analyst an

Unknown Analyst

wasn't much did the about you your in as expected, Yes. quarter? sounded XX% like you quarter? you How efficiency production range. Steven, second high just but cost the into production that efficiency can yet talk margins and as the It

Steven Rossi

continual it's improvement. So

may So a Mike numbers we answer be mean, side. don't on -- able to I

speaking X only therefore, at a having new The it's product that's to launched beginning a a the months of product most, However, continual child old speaking. relative efficiencies X and to at because need to improvement. year this it figuratively products

The was good first our of is nowhere product as iteration today. it near ALX as

So to consistently. product had rehandle we've

made was we've a something there -- then that we've needed product it's So improvement. realized and that

to we and and components improvement washes, tooling reopen our more and product make and had customers which and car make So more to resistant rain improve an want. weather that on users durable, more to product manufacturable,

be line product but production the to sense our multiple of be. that of price, products adding make so our but is having I much efficiency our of I is cost numerous can dollars a fraction the divulge a what -- fraction costs. their difficult. to can there's it have times a to is only touch of So retail

to So potentially higher very margins. we climb goes. anticipate even than time healthy as that XX% into margin continue to

but together data. with something we a be you not something to dollars, in answer Imperial wanted like more may that sure quarter, the quite put I'm able If have Mike

Michael Johnston

fixed just pool hand, have data point. smaller overhead but don't in a number divided across of being manufacturing this almost of I that's units at the a essentially, Yes, there's

amount. So the as cost we increase isn't by to going increase efficiency, same of the pool same

So over be would more costs units, which each profit you would of spread out gross the to expect unit. those increase

Steven Rossi

We XX in to XXX facility. is somewhere have X producing covers day. our pole capable production Each line of of lines the neighborhood per at

that could in now we starting. peak about up, our production a just So we're right with of fraction be output, X/X we're we ramp not much as additional cost, which of

Unknown Analyst

guidance June you target sort X%. for you over million Yes, I something market what $XX million plus is to question Great. to business ramping at $XX to million at tech and $X beyond for of target doesn't long-winded that look a or as way is your $XX the the was correctly, that if guess potential answered million, XX% if that it When as seem sort of the saying, think XXXX? you at do $XX covered to minus revenue just in of far business, could we it's cover range, million -- production, -- there XXXX, for incorporate the business look probably margins up on I'm looking much the clean

Steven Rossi

on It's products. import All is because a that new haven't that literal can know I sold. product say it's we difficult based say estimations to we it's

So products.

on Chinese clean for the is business. So Chinese-owned tech, the a COR competitor that operated

U.S. for phrase, home better a So billion of in sales year. the they $X advantage, were we economy about in have, last lack tariff

of is just market XX, the market the so that to just within one speak. know our I competitors, a So with XX-figure

add up COR be to ahead producing X%, we month to XX%. take point -- of cautious take to as hope don't sell that that we far units market we we price $X,XXX because a about our depending. the to between per than complex longer see obviously we So could take we only at such times. share, we ourselves that want we where things take get can somewhere of get always stride $X,XXX of with to would just retail But We so at very, can X% we hope estimate we delays There's very number begins X,XXX want could items. to

month, month $XX We of cover. $X folding million or ALX, tonneau can million which million just $X.X to is roughly plus per conservative so that forecast modest about estimation. million get to is that a basic a we our $XX the more very feel from So hard

can multiples we ALX, that. sell believe of

we wouldn't heavily twice style. leaning that So the is it And the think think that a demand be we of towards that product sales.

$X.X million year, don't we would all million guidance releasing But be probably we'd up a crazy. which month, again, $X to adding we'd figuratively So $X think month. next numbers of Worksport sell those you just and sell once sounds million start

difficult estimations we very very make to So be to for reach. see far it's bullish. remain remain able We optimistic, don't very it's just but that to too us

Unknown Attendee

next purchase it more Tim at for your can Street. question first COR direct from both on is Clear analyst a elaborate His our a subscription energy Moore, question storage, offering as is Steven, you portable service? or

Steven Rossi

Yes. question. Good

unit why internal we of means a. to one the so our individuals appeal So that of subscriptions $X,XXX, A afford affordable mass to people That's be a monthly and feel and $X,XXX conscious is with at popular. Netflix company And budget that able are But monthly will lower that monthly a case fees. things dining is are a can what it's to the class. these unit. lot on is afford basis. here a

we consumers. and low So as first cost the are to a like options, purchase a unit with cash those firm to COR that the launch financing intend

next then device future, which subscription pay where Tesla us the club as COR And device within will a -- the would fee bill and failure COR know similar have monthly a the the to many to is service, afford. XXXX, a in pay break more within Bluetooth next what a for bill, fee the can the pay say, the app we're would collection. most you unlock However, will let's year, you or upfront or deposit hoping or or offer a $XXX, we $XXX

as So lose valuable we assets. well that don't security there's

disaster refurbished contemplating efforts. units likely be rental stored collected high are in also contemplating also or used at of We disaster or units natural secondhand for or high services, we're and could to and relief least areas

service. marked for some or agencies have amount So government they available or a god-forbid units deployment disaster, on a rent we would of need natural pay if as to an there's earthquake

option, So our few we still very but upfront, go-to-market options have which a a different is first which is market. large

a be you third the a monthly be short and which services would term. et upfront with will cetera. smaller deposit subscription, then on cetera, products, discounts for rental perks Second gives like And benefits et

Unknown Attendee

on can Thank was, the feature COR give how spot system quiet color is you you, Steve. works? and His how next question hot module

Steven Rossi

All EcoFlow. the test units that right no miles ours our to somehow Anchor have products. come X, been now, units those can't but Jack, China imported X in They have have in These tested. We some from X. in maybe fans, fans, superior the performed results, tell coming from unit you

much of a in our concern, a fans, As result climates. X which performs is more it performs climates, unit hotter colder addressable having and also it in better

So of well thermal explosion, the and a states battery of as -- units the off Arizona which desert risk heat will or where simply in We Northern runaway places. and cold problem for our die other may as of also It is unit mountains various technology. or will shut have big work and survive.

However, fans to be keep blaring with X cold, it could noisy. it

We a noise because unit, formally, which you'd break. the noise measurement decibel still haven't than a would would make speak had be be no more and -- to whisper, be make but frankly it more able would would it yet competitors' than but no understand

Unknown Attendee

be online it before available regarding question, last Steve, will the is a weeks Christmas retail per few purchase again? COR And for the

Steven Rossi

then hundred batteries, have music batteries, devices, those swap, change a at the delicate dollars Also while or them swap, hope a which unit the a very that say, means version get version. blood version going or to an Base power machine in-built you will us. for fill Pro hot to respirator a the uninterrupted version playing we Yes, that let's least, we're and talk hot have base transfusion think market big before to orders beach will going has supply. have absolutely, Christmas to targeting we're presales few offer under Christmas medical tree just At to pro modular party, the a about more for and is sales. as like a launch hard you

which that will will a for So that's a us. proversion available, option be popular product be very probably

Unknown Attendee

still Tate, have you, live call? see Do further have you up. any Thank And questions hand I you Steve. on your the

Tate Sullivan

seems It right for to a they selling immediately to shift good can you you talk channels, sales for And covers? a covers like you your in conversion quarter. the no cash Is in cycle batch distributors tonneau and or Yes. the about sales then multiple pay have channel please? it

Steven Rossi

we're running which Direct-to-consumer, all aim in we're not multiply left between each U.S. them. single the in $XX,XXX is XX,XXX each literally anywhere sales, obviously, just -- engaging And daily, which to sales, have alone, dealers the front. Tate there's dealer $XX,XXX up dealer to paid then I and calling a we're behind. of one them, one Like team sales we mean of one we

prefer covered the and have you is proposition base. -- is that only we do. finance stipulation We are We network. our banks support But don't offer those So wonderful. dealer so value all sales, COD dealer sales, great. The strong which we is dealer

need are and just to a prepay. or you we'll XX. a charge sales coming sale. us are you card give we'll and them that on going net board X XX, or X So credit or if to X ship Distributor be And

for solutions those as well AR relatively we low financing are are in cost there financing However, need. that should

So we're enviable paid majority our sales covered, in are of but the terms.

Tate Sullivan

assembly as last York? separate get will And those SOLIS getting is be assembled me Or after COR Seneca, elsewhere? New the components -- and for in in for products the lines the you then

Steven Rossi

for the options. within assembly COR many not factory U.S.A. where the XX% in or sure be hesitant. either maybe launches, will actually or Buffalo a launch from in at to down share that too have through for domestic were devices Not The the to assemblers as may may route that peripheral road. the as assemblers to connect are of the here We lifting, have initial services or even that's patented we we're our engineer address to that be demand SOLIS later I of to beta Asia abroad, subsequent our assembly production of wire think assembled sure sorry, say -- are whatnot and able will hand skilled we're China heavy about and some then SOLIS final at -- Toronto's the but speak here in facility of wiring assembly not and the need and -- assembly COR we're the parts are look The station lines electrical yet. of delicate today. delicate, sales If we and engineers, management we system. strong not future

the its ramp in line down within hand-built separate line line have it to we're up, right own SOLIS. to the for So then off facility own goes now. its normal it on as branches Once Seneca, West the and then volumes going

Unknown Attendee

question you Kamran talk as that as about Zed. the potential Could Tiandi with and well it? on a happen? When the please certification Steve, deal will from revenue ISO

Steven Rossi

either improve your it's for it, have ISO actually some it's had will to Yes, today earlier you later, on that then no, it's or for the to to subsequent. We lots get is if have and no and there. or earmarked the then questions. this point of that -- a internally announce yes you it market apply for business organize and not -- at milestones ISO today, keep year. just some but on -- We

as we to us a which will this for a milestone ISO So be hope be factory. year.

day, So update every can it. I the only that is towards say working we're

active in with Hyundai very, the team very relationship. our Seneca at do an a have facility is in skilled We experts that them West these We field. often. are speak

on to Detroit California. Our corporate U.S. -- and now product directly. it's ownership R&D offices that, and truck. Past to their in Korea from their And in leadership EV working they're it went went

truck aware for of aware EV the that we're that anyone ahead is or have time its They don't So an product is of of yet. yet Hyundai.

a slow them market electric we it's that any but our you releasing of continue X a could their use vehicle could relationship, of and But typically X on with think after work and to So OEM schedule years hit very takes to cover. work vehicle Hyundai an conceptualized. an that's truck active OEMs it's to

Michael Johnston

market In share Steve. revenues at what from case, Ehab working if full annual your full What you, your today capacity. A Thank question production be capacity? would at would this Z. you're

full you're the Let's question, which answer your first be what working today annual capacity? your revenues is if production at would

we're estimated I about we days, a $XXX, which million year, ALX, at day. about XXX which the tonneau cover per sell of assume market, of can full $XXX covers revenue handle production equates sits about X% to billion. is it's say, X,XXX that production $X.X one. and producing which for If

produced, So SOLIS of some point that's ALX. like that what's offerings figure on and could items, whether the if more revenue sales depending it's premium fluctuate lower

kind that's ballpark a on ALXs. based So of figure

Unknown Attendee

cover Thank any cover older to lineups models John Are to from A you, tonneau pickups? question Mike. there S. of expand plans

Steven Rossi

and them. a is So love. bronze fan which I a mean, the my huge XX still as market high, demand or quite is there to I'm I X, are gold. models, trucks silver of older foot more talk we still are XX bed. GM personally I not favorite be But for then obscure pickup brown long big although silver, truck. Dodge metals Gold long the Actually, X.X would ,X.X-foot X in or X.X GM, bed more

is on we developing the out makes if and our So sense. down product that line answer plan

X the them. yes, then Chevy generations the starting get and into ALX, models like and the reaching vehicles popular XX gold, we of within vehicles for SOLIS So could with more pickup deeper out classic truck, to down maybe as and even example, vehicles means AL in do

robotics. all machinery is Our

So hard. time. just need it's it's we It's not --

but is now. answer the right So yes, not

Unknown Attendee

to a and revenue Steve, it willing when a B. that on will is fixed to lastly management from cost publicly what even. will break question Randolph variable cost needed based number say structure, Is happen? happen

Steven Rossi

moving $XX million million as difficult figure. between cash profitability. to a That's earmarked a positive $XX flow revenues somewhere question. We've very It's

as As continued sales you we profitable. production, more efficiencies and operational improvement ramp become because -- so you up reach sliding though, in scale, you a it's

So real then the opposed million million number because becomes $XX as $XX continued improvements. of to

start still So a it's lean positivity. facilities foot But figure plus operation to U.S. very a question a would -- around target. for of $XX I and we're there. it's to very but it, anticipate R&D we think, million, the moving very is operation, cash difficult $XX EBITDA an looked we're I put factory we we million, However, the a still answer range know exact But question million, of square million And difficult moves, is lot then anticipate but X.XX the a year, it's We've Canada, figure, somewhere within, flow in lean. making although size earnings very $XX where our basically big in at simply X answer. answer. next a it's money,

Unknown Attendee

you, Is demonstrated same Steve. on you the as Thank LX, SOLIS the live the week? which durability last of the the call cover

Steven Rossi

Yes.

just tonneau most have their have aluminum same thick stepped been have same as solar and been extrusions. of It's panels hammered and of panels, folded been framework maintain efficiency. aluminum still durable the on, cover, themselves same So

the meant it and course. efficiency. shouldn't toolboxes of reduce not hatcheted weather inclement product to is then top size it should operational coverage on be difficult resting and general, the situations -- hail could be in So tools contractors metal withstand of its [indiscernible] But

Unknown Attendee

WKSBW from expiring? question A your When Shantakumar warrant M. are

Steven Rossi

while. something good Yes, about for been that's talked question. a Obviously,

work the in S-X, up on warrants. made brokerage us. and We the S-X have see understand they warrants picked brokerages and to warrants, that in S-X X, expiration, the an would The with were X expired. XXXX warrant XXXX, Worksport that know, gone. various read in where anyone the believe, we but from date, mistakes WKSPW So there expired they expiration easily our a -- which They W warrants don't I X-year registered nothing expired. can filed were to August Worksport the when incorrect then they're expire do tradable always they were years.

X was they that were making. So years the in --

any case XXXX. since was from error Qs of issues the our So by since there -- disclosure in in company. no It's means, been all

Unknown Attendee

you, Thank Steve.

not, to we're if set IRA would Bob there are to if new I'd from way. sector market plans know benefits? product IRA enter any question from to that to a love expert T. a bring to in the And Another in benefit result

Steven Rossi

benefits there the compiled carbon energy. to that the So credits, and corporate of speaking, there's available tracking then our are energy deployment COR the

what going in charge we're use MPPT and our of energy, credit controller, carbon So through energy of our consumption then collection only energy track someone not is getting for qualifies also using that clean our our but clean all to solar customers. be or to able

to over and And qualify road ourselves to X-kilowatt to with on energy as our able track expands the be for also credits from and SOLIS XXX use, X,XXX XXX,XXX us So for hours then used qualifies when those carbon from fleet anyone buys credits. that of we'll their home.

home So obviously, plug wall. the used be COR is within the meant as from away a to

know, customers exactly. -- So Fran, sure get you I'm may not

batteries to $XXX like buy opposed think or unit, of $XXX one. purchase as that's when COR on credit it's our they X I a

a meaningful that's credit. So very

tech So place. we deeper, as that to support. clean have I in more do There dig think programs we'll available are our find products. And probably we supports

Unknown Attendee

from There Eric W. is question a

work portable COR to I there As says, the the complete to worth be investment towards will for other on estimated hooked as the and SOLIS saw tools Will leaning base enough COR customer mind run circular table are their battery? like items for appliances such and is an big the may that the heavy be, power think he my it. blue-collar a I have to time see compressors, put question be we'll workers, up able saws, for long

Steven Rossi

Yes. Sure.

wall than the as we any outlet. COR or power much is So as more say,

-- older XX-amp in then connected produces wall So X,XXX peak the watts our or or smaller, X,XXX less probably circuit nominal outlet powers homes, and X,XXX that's product to a watts. average watts

plug So powered wall into a could by you anything would be our COR.

home most be conditioning military, first is air be plates even smaller be run, hot can going things, table campsite So conditioning that site, for air units, responders, but job to room saws, run. would except

our these amount long plug a normal how power. things will run wall, would wall socket would that that COR. by powered will will anything on depend plug you you into into of All a be of the

a a ideas have some fridge weekend. that for we So could be run

They difficult all to you and run is they time. data refrigerators, know, cold minute as XX don't of shut run off. for it a the every because keep Our then

So would but it an couple for or a steady, -- for ran one. only run if efficient about a new it's a fridge hours it weekend, power of if

a will an answer it for COR, the how long if have buy into for run will So you plug we long, want you us. and wall power plug could anything question idea batteries you is more into could to a a from time, of to but what the

Unknown Attendee

Thank you Steve.

soon the price will need from is listing company question and company requirements split minimum contemplating regarding John at additional capital company's all. a Another stock the raise the the reverse modification minimum S. bid How to

Steven Rossi

we'd at use typically, noninstitutional retail shareholders, offering, we raise retail to institutions capital Good questions. that utilize, but have above have or capital, Raising we market for it's a participate. may a that may offering XA means or at-the-market although which

the ability best know product. and So during And long-term company capitalization that of raise those company it's of a market in as well last of offering, very the that shareholder its terms capital. that the type retail-facing A as if when appreciation Reg performed to the its is

Reg was it So very companies, a typically, do especially for as ones exciting ours. good And as well experience. very As are that

that a all So of ships, to shareholders I including sales is the going Worksport. Reg be high think A tide

capital we if markets and need also revenues lines of revolvers, and for have that in an the to we it raise A. we use will good the increase, markets. very cooperate, And loans We So have we a so as raise or don't bank like credit But enviable to markets, capital position markets, from debt there's Reg we could don't position access when a the could or use position capital? to enviable financing, need strength. traditional then

So other so make fund is, to the answer -- need lot. to in capital? to have to many options available do continue that it are we operations friendly to our and growth are going takes course, much to options cohort that more raise we to struggled raise us have we're Of and money going a have have to more ramp and we're issuers but up money, other than to grow,

all right have I failed. that think of shell now there's number NASDAQ a companies record

compared very well in So to our think doing most. XXXX, we're cohort I

of -- second the that? of second what terms In part was the question [indiscernible],

Unknown Attendee

listing a anticipate contemplating Does stock the company minimum the regarding requirements? reverse

Steven Rossi

dollar. And So minimum XXX fall XXX after extension. below then you from list another is when days XXX-day days, requirement you get a

the when that. but So for be consolidate. still are this dramatically to these undervalued finally that that We without it's that within think on, we maintain cure that which a we're things market about than to We catches year. should think having year going up all sooner a later. will with

very the for but in to happens have what obviously, consolidate. So future future, bullish we'll think no we Worksport, plans on we'll of consolidation, we're don't that need see we but the and

Unknown Attendee

the do the dividends dividends future EP. of you Worksport, Speaking next regarding question COR XXXX? of Will from is before

Steven Rossi

If year, we do dividends could we will. next

say that is I for commitment. mean a we rinse our A set issuers do. the requirement, I'm not repeat. lot and by And entity it's now money. a it's on is an definition is will meet service figuratively. what basic don't basic that business I But of -- product So goal or speaking exchanges

scale revenues. to are going We up

We for cash are flow positivity. heading

for heading We as as And we far earnings, earnings. for are then a result grow as that. can

types upper As middle as instruments in we revenues, much these obviously, so very for opportunity and eyeballing viable beyond shareholder market earlier, of events we're are such said us. all of rewards,

Unknown Attendee

a of be you release the will the share a highlights earnings you much call tomorrow evening. so Thank as press Steve. and All available like month. questions that, and great we'd wish giving the be quarter a on as we well slide our been for call morning. this everyone we remarks press prepared release will the you, website, joining, from evening. this and deck have have will this via With for later remained end Thank this call, to unanswered, The answered

Steven Rossi

everyone. you, Thank

Worksport (WKSP) 13 Aug 242024 Q2 Earnings call transcript