Operating cash use about 5% of net sales, down from 66% in Q2 and 249% in Q1; B2B and distribution reached 50% of September net sales Ninth consecutive month of net sales growth; September sets Company record at $2.68 million WEST SENECA, NY / ACCESS Newswire / November 3, 2026 / Worksport Ltd. (NASDAQ:WKSP) ("Worksport" or the "Company"), a U.S .-based innovator and manufacturer of hybrid and clean energy solutions primarily for the light truck, overlanding, and global consumer goods markets, today announced preliminary third-quarter 2026 results. Net cash used in operating activities was approximately $0.37 million , an improvement of ~$3.1 million or 89% compared to ~$3.4 million in the second quarter, and down from ~$8.2 million in the first quarter, as the Company converted approximately $2.5 million of inventory into sales and cash . Preliminary Third-Quarter 2026 Highlights Operating cash use at a single-digit percentage of net sales: approximately 5% in the third quarter, down from 66% in the second quarter and 249% in the first quarter Record net sales of approximately $7.2 million , up 44% year-over-year and 38% from the second quarter Nine Consecutive Months of Growth: September net sales reached a Company-record $2.68 million , supported by sustained gross margins above 30% and an expanding contribution from B2B sales. Management highlights that while the sales-mix now has more B2B sales, gross margin has remained stable, reflecting improved business health. From Investment to Conversion Worksport built inventory during the first half of 2026 to support its product launches and distribution expansion. In the third quarter, the Company began converting that inventory into sales and cash, reducing inventory to approximately $9.6 million at September 30 from $12.1 million at June 30 , as production is transitioning toward a just-in-time model. Growth Led by Distribution B2B and distribution sales reached 50% of September net sales , up from 25% in December 2025 , as distribution partners added Worksport products. SOLIS , while not yet a significant contributor to net sales, has now more than quadrupledits sales from the second quarte r. Third-quarter sales orders of approximately $7.87 million exceeded invoiced sales, leaving an estimated backlog of approximately $740,000 at September 30 , up from approximately $117,000 at June 30 . "Based on our current operating cash use, the resources available to us, including our credit facility, and the inventory we still must convert, we believe the business is in position to reach operating cash flow breakeven. Achieving that sustainably will let us build growth without significant dependence on equity financing. We still have work ahead of us, but the gap continues to narrow, and the pieces are in place. We described the first quarter as our investment and launch readiness quarter, and said the second half would be about conversion. The third quarter delivered on that," said Steven Rossi , Chief Executive Officer of Worksport . "We converted inventory into sales and cash, grew gross profit faster than recurring cash costs, and reduced the cash our operations use by more than 95% since the first quarter." Worksport expects to report full third-quarter 2026 results with its Quarterly Report on Form 10-Q, followed by its earnings call on November 10, 2026 , aftermarket. Sign-up for the call here: https://us06web.zoom.us/webinar/register/WN_GpWdIF_gQpW_7Lk1ATXZuQ Stay tuned for more information and join our mailing list to stay up to date with the latest: Join Worksport's Newsletter Contacts Investor Relations, Worksport Ltd. T: 1 (888) 554-8789-128 W: investors.worksport.com W: www.worksport.com E: investors@worksport.com Connect with Worksport Chief Executive Officer, Steven Rossi Steven Rossi LinkedIn About Worksport Worksport Ltd. (Nasdaq:WKSP), through its subsidiaries, designs, develops, manufactures, and owns the intellectual property on a variety of tonneau covers, solar integrations, portable power systems, and clean heating & cooling solutions. Worksport has an active partnership with Hyundai for the SOLIS Solar cover. Additionally, Worksport's hard-folding cover, designed and manufactured in-house, is compatible with all major truck models and is gaining traction with newer truck makers including the electric vehicle (EV) sector. Worksport seeks to capitalize on the growing shift of consumer mindsets towards clean energy integrations with its proprietary solar solutions, mobile energy storage systems (ESS), and Cold-Climate Heat Pump (CCHP) technology. Terravis Energy's website is terravisenergy.com . Connect with Worksport Please follow the Company's social media accounts on X (previously Twitter) , Facebook , LinkedIn , YouTube , and Instagram , the links of which are links to external third-party websites, as well as sign up for the Company's newsletters at investors.worksport.com . Social Media Disclaimer The Company does not endorse, ensure the