WKSP

Worksport is a sub-$12M micro-cap whose own auditor flags substantial doubt about its ability to continue as a going concern. The top line is genuinely accelerating — FY2025 revenue of $16.1M (+89.8% YoY) with gross profit up 394% and gross margin rebuilt to 27.8% — and the MD&A credibly attributes the margin gain to higher volumes and overhead absorption offsetting China tariffs. That is the one bright spot, and it is real. But it sits on top of a $19.4M net loss, a -116.8% operating margin, and -$17.3M of operating cash flow against just $5.95M of cash plus ~$3.4M of revolver availability. That is well under a year of runway before more capital is required.

The capital will come from shareholders' pockets. Shares outstanding rose 147.8% in a single year and the accumulated deficit is now -$83.9M against $22.9M of equity — meaning the company has destroyed nearly four times its current book value over its life and is still accelerating the burn. The risk factors state plainly that additional equity or equity-linked financing 'would dilute existing stockholders' and that financing 'may not be available when needed or on terms acceptable to us.' At a $0.94 share price and 11.9M shares, any raise sized to a $17M annual burn is enormously dilutive relative to the current float.