Worksport Ltd Segments Disclosure
16. Segment Reporting
The Company manages its business on a product basis and operates in the following two reporting segments for financial reporting purposes: (1) Hard Tonneau Covers and (2) Soft Tonneau Covers. The accounting policies of both reporting segments are the same as those described in Note 1, Description of Business and Summary of Significant Accounting Policies.
The Company’s chief operating decision maker (“CODM”) is the Chief Executive Officer, who regularly reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance of the Company’s reporting segments. The CODM primarily focuses on net income to evaluate its reporting segments. The CODM also uses net income for evaluating pricing strategy and to assess performance for determining the compensation of certain employees. Significant segment expenses reviewed, which represent the differences between segment revenue and segment net loss, consist of the following:
| For the year ended December 31, 2025 | For the year ended December 31, 2024 | |||||||||||||||||||||||||||||||
| Hard Tonneau Covers | Soft Tonneau Covers | Corporate / Eliminations | Consolidated | Hard Tonneau Covers | Soft Tonneau Covers | Corporate / Eliminations | Consolidated | |||||||||||||||||||||||||
| Net sales | $ | 15,647,276 | $ | 454,462 | $ | $ | 16,101,738 | $ | 5,171,201 | $ | 3,313,178 | $ | $ | 8,484,379 | ||||||||||||||||||
| Less: | ||||||||||||||||||||||||||||||||
| Cost of sales | (11,272,138 | ) | (350,466 | ) | (4,227 | ) | (11,626,831 | ) | (4,663,491 | ) | (2,915,238 | ) | (7,578,729 | ) | ||||||||||||||||||
| Selling, general and administrative | (10,140,759 | ) | (175,048 | ) | (11,138,218 | ) | (21,454,025 | ) | (5,918,555 | ) | (4,762,105 | ) | (3,937,539 | ) | (14,618,199 | ) | ||||||||||||||||
| Depreciation and amortization | (1,676,800 | ) | (37,451 | ) | (120,057 | ) | (1,834,308 | ) | (1,206,499 | ) | (440,916 | ) | (105,870 | ) | (1,753,285 | ) | ||||||||||||||||
| Net loss from operations | (7,442,421 | ) | (108,503 | ) | (11,262,502 | ) | (18,813,426 | ) | (6,617,344 | ) | (4,805,081 | ) | (4,043,409 | ) | (15,465,834 | ) | ||||||||||||||||
The following table presents the Company’s net sales disaggregated by geographic area:
| 2025 | 2024 | |||||||||||||||||||||||
| Hard Tonneau Covers | Soft Tonneau Covers | Consolidated | Hard Tonneau Covers | Soft Tonneau Covers | Consolidated | |||||||||||||||||||
| United States | $ | 15,558,123 | $ | 451,960 | $ | 16,010,083 | $ | 5,111,377 | $ | 3,286,193 | $ | 8,397,570 | ||||||||||||
| Other | 89,153 | 2,502 | 91,655 | 59,824 | 26,985 | 86,809 | ||||||||||||||||||
| Total | 15,647,276 | 454,462 | 16,101,738 | 5,171,201 | 3,313,178 | 8,484,379 | ||||||||||||||||||
No asset information has been provided for the reported segments as the CODM does not regularly review asset information by reportable segment. As of December 31, 2025 and 2024, assets held in the U.S. accounted for 93% and 88% of total assets, respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 26, 2026 | Showing above |
| 2024 | Mar 27, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.