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# Overview & Investment Thesis:
Worksport primarily manufactures, markets, and sells tonneau covers for pickup trucks. This is an all-American manufacturing company based out of Buffalo, with 95%+ of their raw materials sourced domestically. The total addressable market in the U.S. for tonneau covers is estimated to reach $5 Billion by 2027.*Source: Artizon Advisory & Intelligence; June 2022*
Worksport's consistent revenue growth will continue into 2026 & beyond. In a Press Release from the Company on 08/05/2025, management stated that they expect to hit profitability in mid-2026 -- this should mitigate dilution in the future. Revenue growth will be fostered by continued capture of market share in the tonneau cover business, and entry into new clean-energy markets (Solis + COR). Increasing margins, continued revenue growth, and entry into clean-energy markets can result in a valuation multiple expansion to 3.3x revenue. 
# Business Overview: Tonneaus, Solis + COR, Aetherlux
# Tonneau Covers:
Below is a snapshot of Worksport's top-line revenue:
[](https://preview.redd.it/worksport-unappreciated-all-amurican-growth-story-v0-lix1qhf596uf1.png?width=818&format=png&auto=webp&s=2de844e28aa549a3c72d8d5af5bafe9b7251b9af)
* 2022: $116,000
* 2023: $1,529,632
* 2024: $8,484,379
* 2025 FY Guidance: $20,000,000+
While still a blip on the radar in terms of market penetration, indications exist that Worksport is progressing to capture a meaningful piece of the tonneau cover market.
On September 23rd 2025, Worksport issued a press release stating the following:
"The Company is excited to report that Q3 2025 is pacing to be another record quarter, with gross margins exceeding 30% and expected to climb further as production scales." 
Based on this statement, Q3 2025 will represent a second consecutive record quarter for the Company. Of note, margins are exceeding 30% in back-to-back quarters. So, what is driving all of this growth?
Worksport's growth in the tonneau cover market can likely be attributed to 3 key components:
1. Product-market fit with their recently launched AL4 cover
2. A sudden, and massive expansion of their distribution network
3. Excellent execution on eCommerce strategy
Worksport announced that their first AL4 truck cover was shipped on February 4th, 2025. In June of 2025, the Company announced that the AL4 represented 40% of revenue. I believe this number to be closer to 60% at the time of this writing. The basis for this assertion is the increase in margin across product-mix. Management originally had not projected to achieve 30%+ margins until Q4, but they accomplished 30%+ margins as early as the first month of Q3. 
The AL4 is a higher priced item than any other SKU (and higher margin). Even in the wake of inflationary pressure on domestically sourced raw materials, Worksport was able to maintain pricing power with the AL4. This speaks to the power of the brand, and the quality + product market fit of the AL4. 
On June 10th, 2025, Worksport announced that its dealer network expanded from 94 dealership in 2024, to over 550 at the time of the press release. This represents over 500% growth in their distribution channel over the first 6 months of 2025. The Company also noted that they are projecting $21.5MM in repeatable B2B revenue just from their dealership network. On top of their dealer distribution channel, Worksport has built an impressive channel of their own on the eCommerce side of things -- currently doing $1MM / month through their corporate website. 
The Company is committed to selling through its website, and its products cannot be found on Amazon. I tend to prefer this strategy as it preserves margins and forces Worksport to figure out logistics at scale. 
So how big can the tonneau business get for Worksport? I think that depends on what direction the Company chooses to take. I believe within their current manufacturing model, Worksport can reasonably take down a $60 - $70 Million piece of the tonneau cover market by 2027 - 2028.
With eCommerce at a steady and growing $1MM / month run-rate, and the 550+ current dealers putting in a floor of $21.5MM (as indicated in a recent press release from Worksport), we get roughly $36.5MM for the tonneau business. The main avenue for growth I foresee is in the dealer network. While 550 seems like a big number, it is only a fraction of the 17,000 dealers that Worksport has in its database. Worksport has captured less than 5% of the dealer market. 
The velocity of growth from 94 dealers to 550 dealers in just 6 months is potent. Given this momentum, I believe it is reasonable to project that Worksport doubles it's footprint in the dealer distribution channel over the next 1 - 2 years. This is how I arrive at $60MM - $70MM via dealership + eCommerce. 
In order to meaningfully eclipse this $60MM - $70MM number, I do not believe that dealership distribution + eCommerce will get them there. Worksport will need an OEM deal to eclipse $100MM. While I don't believe an OEM deal is likely in the near-term, the only thing stopping Worksport from getting one is likely an additional investment in capacity and manpower. It is unlikely that Worksport grew their dealership footprint at this explosive pace without a healthy amount of inbound interest. I imagine there is inbound OEM interest that the Company is triaging to a later date if / when they increase capacity to take on such a client. 
# Solis - Management Has Boldly Changed Their Tone:
Worksport first began discussing plans around the release of its Solis tonneau cover in September of 2021 -- a tonneau cover outfitted with solar panels. 
Management is now communicating to the market that this product is finally ready to launch in Q4 of 2025... and this time I believe them. 
The main reason I am putting more credibility into managements guidance and claims compared to years past is because of the **noticeable change in tone**.
Mangement's tone regarding tonneau business -- up until late in 2024, it was not customery for Worksport to routinely pre-report revenue and margin figures. It seems that management is so eager to share the results from their core business that they simply do not want to wait for the market to be notified at the time of the Q or K being filed. 
Management's tone regarding the launch of Solis + Cor, the Company is no longer simply guiding towards a launch date. They are actually projecting revenue for these new products with a high degree of specificity. This is another significant change in Management's tone as it relates to the timing of these products coming to market. 
A quote from Worksport's press release issued on September 23rd, 2025:
>
Worksport released a press released on 06/25/2026 stating that they already have a signficant partnership with a leading U.S. construction group to pilot the Solis + Cor product.
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
# COR:
Worksport Solis + Cor (Worksport Website)
Solis is the solar-panel outfitted tonneau cover that will be sold to consumers for their trucks. The COR is the battery pack that will be used to store the energy that the Solis harvests.
While exact specifications and price points have not yet been released by the Company on either the Solis or the COR, the combination of the two products intuitively creates a first-mover advantage in the space for this type of product offering. 
According to Worksport, the COR represents over $8 Billion in TAM globally. It's important to note that while the COR is being marketed alongside the Solis, it can be marketed and sold completely independently of the Solis (or any truck-related business for that matter). 
While I don't necessarily anticipate Worksport to deliver a product that captures a huge chunk of business from the main competitors in mobile / portable clean energy (Jackery, Goal Zero, Tesla Powerpacks), I do believe they are primed to carve out a niche of buyers who own pickup trucks. 
It cannot be understated how significant Worksport's $1MM eCommerce business is to their story. It's one thing to be able to manufacture a great product that consumers want, it's quite another to be able to win in the cut-throat landscape of digital marketing. 
In my opinion, Worksport is being deliberately vauge in communicating that their Solis + Cor business will be "8-figrues+" in 2026. They are unsure of whether 2026 will solely be a direct-to-consumer via eCommerce story, or if their existing distributors will come along for the ride (this imputes a huge range). Solis + Cor is a brand new product, Worksport cannot reasonably expect to immediately access mass distribution channels in a new category that is dominated by incumbunets. 
However, the analysis of the potential for Cor becomes much more interesting when you factor in the potential for their existing dealership distribution channel buying into the Solis + Cor story. After all, Solis is a pick-up truck product... and Cor is designed to integrate with Solis. If the dealerships show enthusiasm around Solis + Cor, the odds of Solis + Cor hitting the upper-end of 8-figure+ revenue in 2026 becomes more likely. I am unsure of how to handicap this as Worksport has not spoken in depth about their sales, marketing, and distribution strategy for Solis + Cor. It is certainly something investors ought pay attention to. 
# Aetherlux: A Multi-Billion Dollar Opportunity
Aetherlux is a heat pump technology that has been developed by Worksports wholly-owned subsidiary, Terravis. The claims the Company has made about Aetherlux have yet to be validated by an accredited third-party testing agency. The technology though, **if validated, is massively disruptive.** 
Worksport has spoken about this Aetherlux asset, and they believe that the market is not adequately valuing the prospects of it. I agree. About a month ago, the company stated:
"Worksport subsidiary Terravis Energy continues to make significant strides in advancing its AetherLux ZeroFrost Heat Pump program. The product continues to see expanding market opportunities:
* Ongoing discussions are underway with multi-billion-dollar corporations and government officials.
* Third-party validation programs are being initiated to further prove the heat pump system’s general performance superiority, along with performance in extreme climates.
* The roadmap includes finalizing a manufacturing partner, pursuing certifications, and advancing to launch, anticipated in mid-2026."
Most recently, in a Press Release Worksport put out on October 6th, 2025 -- the company stated that **Worksport has partnered with the Department of Energy** via the NREL Technical Assistance Program (NTAP).
I encourage interested readers to do their own research on this asset and come to their own conclusions about it. If the Aetherlux technology is proven to do what Worksport claims it can do, the upside is so large that it would simply be hyperbolic to speculate what the valuation of this (currently tiny) company could be worth.
The market seems to have discounted this opportunity to $0.00 at the moment, which I cover in the Valuation portion of this research report. I believe Aetherlux is not adequately valued into this company simply because Worksport has only recently announced a pathway towards third-party validation through a legitamate agency -- the Department of Energy -- the story is not well-known, and large funds typically do not pay attention to companies as small as Worksport.
# Financial Outlook:
Worksport has around $2 Million of long term debt that is in good standing, and less than $250K worth of current debt. 
Management has indicated that the Reg A will be closing soon, so it is safe to assume that they will have taken in $10 Million by the time it is ultimately closed. 
The Company burns roughly $3 Million per quarter. Because the Reg A has been going on for about 4 months now, figure that the Company has improved their cash position by around $6 Million. I project this provides runway for the company out to at least March of 2026. 
The Reg A warrants are priced at $4.50 per share. If the Company delivers on their promise to launch Solis + Cor, and produce $2MM - $3MM in revenue for year-ending 2025, I beleive it is likely that the stock will be re-rated and at least some of these warrants will be exercised. The launch of Solis + Cor has been anticipated by market participants for about 4 years now. Delivering on not only the launch but immediate and meaningful revenue could be a transformational event for the stock. 
Management has guided towards corporate profitability in 2026 based on the tonneau business alone (assuming $0 in contribution from Solis + Cor, or Aetherlux). With all of the above considered, I think dilution risks are highly mitigated going forward. 
I do believe there will be dilution in the future, but it will be a different kind of dilution. It will not be the micro-cap type of "survival dilution" that is so often the case for nascent businesses. Worksport, for the first time in the history of the Company, will be in the driver seat with regards to financing options. As the Company approaches break-even and beyond, sustainable forms of non-dilutive debt should become available. If the Company does decide to dilute in the future, management will likely only do so if they believe the cost of equity is less than the cost of debt. Given that the Company is trading close to Book Value and growing at an incredible clip (and assuming the Company moves along in-line with guidance), the stock will need to be meaningfully re-rated before the Company can prudently justify a dilutive capital injection. 
# Share Structure:
* Current Shares outstanding: 6.64 Million
* Shares Issued Upon Closing of fully subscribed Reg A: 3.07 Million
* Warrants from fully subscribed Reg A: 3.01 Million
* Outstanding warrants from prior transactions: \~ 2 Million 
Fully Diluted Shares Outstanding: \~ 14.75 MillionProceeds Assuming Fully Subscribed Reg A + Reg A Warrants Exercised: $23.85 Million
# Valuation (Without Considering Aetherlux):
Auto-parts companies typically trade between 0.5x and 1.5x revenue. **Clean-energy firms fetch higher multiples**, with median EV/Revenue valuations around 5.7x as of Q4 2024 (source: Finerva). 
For valuation purposes, I applied a blended multiple of 3.3x revenue for the bull case, recognizing this is not necessarily a hard-target but a reasonable metric. Using 15 million fully-diluted shares outstanding as the starting point, my scenario analysis come to the following: 
|Year|Bear - .8x Multiple|Base - 2x Multiple|Bull - 3.3x Multiple|
|:-|:-|:-|:-|
||
|2026|$22M → $1.17 /share|$50M → $6.67 / share|$70M → $15.40 / share|
|2027|$25M → $1.33 /share|$72M → $9.60 / share|$120M → $26.40 / share|
|2028|$30M → $1.60 /share|$100M → $13.33 / share|$180M → $39.60 / share|
**Factoring Artherlux into the equation, I am currently adding $5.00 to each of the bear and base case valuations**, and for the bull case... again, I do not want this post to be flagged for hyperbole so I will keep this to myself.
# Key Risks / Disclaimer to Valuation Analysis:
The valuation scenarios listed above are highly dependent on several factors.
Worksport operates in a consumer-cyclical business. If consumers broadly become weaker (as can happen in an inflationary environment) demand may suffer. 
Execution risk is likely the biggest factor. Scaling from a $12 Million business to a $50 Million - $100 Million business presents a number of challenges. Scaling logistics to a national level, increasing personnel, sourcing raw materials, negotiationg distributor relationships, and quality control just to name a few. I am impressed that management has been able to get this business into 30%+ gross margin territory while sclaing from $1MM, to $12MM, to the current $20MM+ run rate. This is a testament to their commitment to not only scaling, but scaling efficiently. 
Management has a history of ambitious projections, delays, and frequent dilution to fund operations. I am reading between the lines given the change of tone from management, and I am betting that the reputation of this Company will continue to improve over time. 
# Further Disclaimer:
**I am massively long WKSP.**
# Conclusion
Worksport is a high-risk / high-reward investment. For the upside cases to be realized, management will need to execute on multiple fronts (COR/SOLIS launches, scaling logistics, continued dealer/ecommerce growth).
In my view, the risk/reward is compelling for investors who accept these uncertainties. If management continues to deliver on their promises in 2026 and beyond as they have in 2025, I believe the bullish scenario becomes more heavily weighted probabilistically. For lack of a better expression, the proof is in the pudding. 
As a final note, I would like to reiterate that these valuation scenarios have discounted Aetherlux to $0.00. Given the demand that Worksport claims to have received on this front, Aetherlux valued at $0.00 can be viewed as overly conservative. An entire article should be dedicated to explore the possibilities of Aetherlux, an article I would be happy to write if the Reddit community asks for it. 
**I have not received compensation for producing this due diligence.**

# Overview & Investment Thesis:
Worksport primarily manufactures, markets, and sells tonneau covers for pickup trucks. This is an all-American manufacturing company based out of Buffalo, with 95%+ of their raw materials sourced domestically. The total addressable market in the U.S. for tonneau covers is estimated to reach $5 Billion by 2027.*Source: Artizon Advisory & Intelligence; June 2022*
Worksport's consistent revenue growth will continue into 2026 & beyond. In a Press Release from the Company on 08/05/2025, management stated that they expect to hit profitability in mid-2026 -- this should mitigate dilution in the future. Revenue growth will be fostered by continued capture of market share in the tonneau cover business, and entry into new clean-energy markets (Solis + COR). Increasing margins, continued revenue growth, and entry into clean-energy markets can result in a valuation multiple expansion to 3.3x revenue. 
# Business Overview: Tonneaus, Solis + COR, Aetherlux
# Tonneau Covers:
Below is a snapshot of Worksport's top-line revenue:
[](https://preview.redd.it/worksport-unappreciated-all-amurican-growth-story-v0-lix1qhf596uf1.png?width=818&format=png&auto=webp&s=2de844e28aa549a3c72d8d5af5bafe9b7251b9af)
* 2022: $116,000
* 2023: $1,529,632
* 2024: $8,484,379
* 2025 FY Guidance: $20,000,000+
While still a blip on the radar in terms of market penetration, indications exist that Worksport is progressing to capture a meaningful piece of the tonneau cover market.
On September 23rd 2025, Worksport issued a press release stating the following:
"The Company is excited to report that Q3 2025 is pacing to be another record quarter, with gross margins exceeding 30% and expected to climb further as production scales." 
Based on this statement, Q3 2025 will represent a second consecutive record quarter for the Company. Of note, margins are exceeding 30% in back-to-back quarters. So, what is driving all of this growth?
Worksport's growth in the tonneau cover market can likely be attributed to 3 key components:
1. Product-market fit with their recently launched AL4 cover
2. A sudden, and massive expansion of their distribution network
3. Excellent execution on eCommerce strategy
Worksport announced that their first AL4 truck cover was shipped on February 4th, 2025. In June of 2025, the Company announced that the AL4 represented 40% of revenue. I believe this number to be closer to 60% at the time of this writing. The basis for this assertion is the increase in margin across product-mix. Management originally had not projected to achieve 30%+ margins until Q4, but they accomplished 30%+ margins as early as the first month of Q3. 
The AL4 is a higher priced item than any other SKU (and higher margin). Even in the wake of inflationary pressure on domestically sourced raw materials, Worksport was able to maintain pricing power with the AL4. This speaks to the power of the brand, and the quality + product market fit of the AL4. 
On June 10th, 2025, Worksport announced that its dealer network expanded from 94 dealership in 2024, to over 550 at the time of the press release. This represents over 500% growth in their distribution channel over the first 6 months of 2025. The Company also noted that they are projecting $21.5MM in repeatable B2B revenue just from their dealership network. On top of their dealer distribution channel, Worksport has built an impressive channel of their own on the eCommerce side of things -- currently doing $1MM / month through their corporate website. 
The Company is committed to selling through its website, and its products cannot be found on Amazon. I tend to prefer this strategy as it preserves margins and forces Worksport to figure out logistics at scale. 
So how big can the tonneau business get for Worksport? I think that depends on what direction the Company chooses to take. I believe within their current manufacturing model, Worksport can reasonably take down a $60 - $70 Million piece of the tonneau cover market by 2027 - 2028.
With eCommerce at a steady and growing $1MM / month run-rate, and the 550+ current dealers putting in a floor of $21.5MM (as indicated in a recent press release from Worksport), we get roughly $36.5MM for the tonneau business. The main avenue for growth I foresee is in the dealer network. While 550 seems like a big number, it is only a fraction of the 17,000 dealers that Worksport has in its database. Worksport has captured less than 5% of the dealer market. 
The velocity of growth from 94 dealers to 550 dealers in just 6 months is potent. Given this momentum, I believe it is reasonable to project that Worksport doubles it's footprint in the dealer distribution channel over the next 1 - 2 years. This is how I arrive at $60MM - $70MM via dealership + eCommerce. 
In order to meaningfully eclipse this $60MM - $70MM number, I do not believe that dealership distribution + eCommerce will get them there. Worksport will need an OEM deal to eclipse $100MM. While I don't believe an OEM deal is likely in the near-term, the only thing stopping Worksport from getting one is likely an additional investment in capacity and manpower. It is unlikely that Worksport grew their dealership footprint at this explosive pace without a healthy amount of inbound interest. I imagine there is inbound OEM interest that the Company is triaging to a later date if / when they increase capacity to take on such a client. 
# Solis - Management Has Boldly Changed Their Tone:
Worksport first began discussing plans around the release of its Solis tonneau cover in September of 2021 -- a tonneau cover outfitted with solar panels. 
Management is now communicating to the market that this product is finally ready to launch in Q4 of 2025... and this time I believe them. 
The main reason I am putting more credibility into managements guidance and claims compared to years past is because of the **noticeable change in tone**.
Mangement's tone regarding tonneau business -- up until late in 2024, it was not customery for Worksport to routinely pre-report revenue and margin figures. It seems that management is so eager to share the results from their core business that they simply do not want to wait for the market to be notified at the time of the Q or K being filed. 
Management's tone regarding the launch of Solis + Cor, the Company is no longer simply guiding towards a launch date. They are actually projecting revenue for these new products with a high degree of specificity. This is another significant change in Management's tone as it relates to the timing of these products coming to market. 
A quote from Worksport's press release issued on September 23rd, 2025:
>
Worksport released a press released on 06/25/2026 stating that they already have a signficant partnership with a leading U.S. construction group to pilot the Solis + Cor product.
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
# COR:
Worksport Solis + Cor (Worksport Website)
Solis is the solar-panel outfitted tonneau cover that will be sold to consumers for their trucks. The COR is the battery pack that will be used to store the energy that the Solis harvests.
While exact specifications and price points have not yet been released by the Company on either the Solis or the COR, the combination of the two products intuitively creates a first-mover advantage in the space for this type of product offering. 
According to Worksport, the COR represents over $8 Billion in TAM globally. It's important to note that while the COR is being marketed alongside the Solis, it can be marketed and sold completely independently of the Solis (or any truck-related business for that matter). 
While I don't necessarily anticipate Worksport to deliver a product that captures a huge chunk of business from the main competitors in mobile / portable clean energy (Jackery, Goal Zero, Tesla Powerpacks), I do believe they are primed to carve out a niche of buyers who own pickup trucks. 
It cannot be understated how significant Worksport's $1MM eCommerce business is to their story. It's one thing to be able to manufacture a great product that consumers want, it's quite another to be able to win in the cut-throat landscape of digital marketing. 
In my opinion, Worksport is being deliberately vauge in communicating that their Solis + Cor business will be "8-figrues+" in 2026. They are unsure of whether 2026 will solely be a direct-to-consumer via eCommerce story, or if their existing distributors will come along for the ride (this imputes a huge range). Solis + Cor is a brand new product, Worksport cannot reasonably expect to immediately access mass distribution channels in a new category that is dominated by incumbunets. 
However, the analysis of the potential for Cor becomes much more interesting when you factor in the potential for their existing dealership distribution channel buying into the Solis + Cor story. After all, Solis is a pick-up truck product... and Cor is designed to integrate with Solis. If the dealerships show enthusiasm around Solis + Cor, the odds of Solis + Cor hitting the upper-end of 8-figure+ revenue in 2026 becomes more likely. I am unsure of how to handicap this as Worksport has not spoken in depth about their sales, marketing, and distribution strategy for Solis + Cor. It is certainly something investors ought pay attention to. 
# Aetherlux: A Multi-Billion Dollar Opportunity
Aetherlux is a heat pump technology that has been developed by Worksports wholly-owned subsidiary, Terravis. The claims the Company has made about Aetherlux have yet to be validated by an accredited third-party testing agency. The technology though, **if validated, is massively disruptive.** 
Worksport has spoken about this Aetherlux asset, and they believe that the market is not adequately valuing the prospects of it. I agree. About a month ago, the company stated:
"Worksport subsidiary Terravis Energy continues to make significant strides in advancing its AetherLux ZeroFrost Heat Pump program. The product continues to see expanding market opportunities:
* Ongoing discussions are underway with multi-billion-dollar corporations and government officials.
* Third-party validation programs are being initiated to further prove the heat pump system’s general performance superiority, along with performance in extreme climates.
* The roadmap includes finalizing a manufacturing partner, pursuing certifications, and advancing to launch, anticipated in mid-2026."
Most recently, in a Press Release Worksport put out on October 6th, 2025 -- the company stated that **Worksport has partnered with the Department of Energy** via the NREL Technical Assistance Program (NTAP).
I encourage interested readers to do their own research on this asset and come to their own conclusions about it. If the Aetherlux technology is proven to do what Worksport claims it can do, the upside is so large that it would simply be hyperbolic to speculate what the valuation of this (currently tiny) company could be worth.
The market seems to have discounted this opportunity to $0.00 at the moment, which I cover in the Valuation portion of this research report. I believe Aetherlux is not adequately valued into this company simply because Worksport has only recently announced a pathway towards third-party validation through a legitamate agency -- the Department of Energy -- the story is not well-known, and large funds typically do not pay attention to companies as small as Worksport.
# Financial Outlook:
Worksport has around $2 Million of long term debt that is in good standing, and less than $250K worth of current debt. 
Management has indicated that the Reg A will be closing soon, so it is safe to assume that they will have taken in $10 Million by the time it is ultimately closed. 
The Company burns roughly $3 Million per quarter. Because the Reg A has been going on for about 4 months now, figure that the Company has improved their cash position by around $6 Million. I project this provides runway for the company out to at least March of 2026. 
The Reg A warrants are priced at $4.50 per share. If the Company delivers on their promise to launch Solis + Cor, and produce $2MM - $3MM in revenue for year-ending 2025, I beleive it is likely that the stock will be re-rated and at least some of these warrants will be exercised. The launch of Solis + Cor has been anticipated by market participants for about 4 years now. Delivering on not only the launch but immediate and meaningful revenue could be a transformational event for the stock. 
Management has guided towards corporate profitability in 2026 based on the tonneau business alone (assuming $0 in contribution from Solis + Cor, or Aetherlux). With all of the above considered, I think dilution risks are highly mitigated going forward. 
I do believe there will be dilution in the future, but it will be a different kind of dilution. It will not be the micro-cap type of "survival dilution" that is so often the case for nascent businesses. Worksport, for the first time in the history of the Company, will be in the driver seat with regards to financing options. As the Company approaches break-even and beyond, sustainable forms of non-dilutive debt should become available. If the Company does decide to dilute in the future, management will likely only do so if they believe the cost of equity is less than the cost of debt. Given that the Company is trading close to Book Value and growing at an incredible clip (and assuming the Company moves along in-line with guidance), the stock will need to be meaningfully re-rated before the Company can prudently justify a dilutive capital injection. 
# Share Structure:
* Current Shares outstanding: 6.64 Million
* Shares Issued Upon Closing of fully subscribed Reg A: 3.07 Million
* Warrants from fully subscribed Reg A: 3.01 Million
* Outstanding warrants from prior transactions: \~ 2 Million 
Fully Diluted Shares Outstanding: \~ 14.75 MillionProceeds Assuming Fully Subscribed Reg A + Reg A Warrants Exercised: $23.85 Million
# Valuation (Without Considering Aetherlux):
Auto-parts companies typically trade between 0.5x and 1.5x revenue. **Clean-energy firms fetch higher multiples**, with median EV/Revenue valuations around 5.7x as of Q4 2024 (source: Finerva). 
For valuation purposes, I applied a blended multiple of 3.3x revenue for the bull case, recognizing this is not necessarily a hard-target but a reasonable metric. Using 15 million fully-diluted shares outstanding as the starting point, my scenario analysis come to the following: 
|Year|Bear - .8x Multiple|Base - 2x Multiple|Bull - 3.3x Multiple|
|:-|:-|:-|:-|
||
|2026|$22M → $1.17 /share|$50M → $6.67 / share|$70M → $15.40 / share|
|2027|$25M → $1.33 /share|$72M → $9.60 / share|$120M → $26.40 / share|
|2028|$30M → $1.60 /share|$100M → $13.33 / share|$180M → $39.60 / share|
**Factoring Artherlux into the equation, I am currently adding $5.00 to each of the bear and base case valuations**, and for the bull case... again, I do not want this post to be flagged for hyperbole so I will keep this to myself.
# Key Risks / Disclaimer to Valuation Analysis:
The valuation scenarios listed above are highly dependent on several factors.
Worksport operates in a consumer-cyclical business. If consumers broadly become weaker (as can happen in an inflationary environment) demand may suffer. 
Execution risk is likely the biggest factor. Scaling from a $12 Million business to a $50 Million - $100 Million business presents a number of challenges. Scaling logistics to a national level, increasing personnel, sourcing raw materials, negotiationg distributor relationships, and quality control just to name a few. I am impressed that management has been able to get this business into 30%+ gross margin territory while sclaing from $1MM, to $12MM, to the current $20MM+ run rate. This is a testament to their commitment to not only scaling, but scaling efficiently. 
Management has a history of ambitious projections, delays, and frequent dilution to fund operations. I am reading between the lines given the change of tone from management, and I am betting that the reputation of this Company will continue to improve over time. 
# Further Disclaimer:
**I am massively long WKSP.**
# Conclusion
Worksport is a high-risk / high-reward investment. For the upside cases to be realized, management will need to execute on multiple fronts (COR/SOLIS launches, scaling logistics, continued dealer/ecommerce growth).
In my view, the risk/reward is compelling for investors who accept these uncertainties. If management continues to deliver on their promises in 2026 and beyond as they have in 2025, I believe the bullish scenario becomes more heavily weighted probabilistically. For lack of a better expression, the proof is in the pudding. 
As a final note, I would like to reiterate that these valuation scenarios have discounted Aetherlux to $0.00. Given the demand that Worksport claims to have received on this front, Aetherlux valued at $0.00 can be viewed as overly conservative. An entire article should be dedicated to explore the possibilities of Aetherlux, an article I would be happy to write if the Reddit community asks for it. 
**I have not received compensation for producing this due diligence.**