Worksport Ltd (WKSP)

[dozerman]

Sunday morning email from Mr Rossi
Mr Rossi
Thank you for your detailed and prompt response. So I did the math and came up with $2,250,000 for a %5 take on market, at a average of $150 per unit....I'm completely blown away since that is lowball. WorkSport..I like the name. Love watching can't wait for hammers to start falling.
Respectfully
Michael Smithson
Michael,

Good morning -

That's right. $2.3MM in additional revenues.

Now, by no means a figure to be excited about. Please don't get me wrong, I could easily outline figures that would impress much more. But what I was trying to do is outline that with little volumes and two products, increasing present revenues 400-600% is not difficult.

Now the math changes at 6%, 10%, 20%...etc. With more products as well as innovation to penetrate more of the 75% of Truck owners estimated to not have a cover. Scales of economy prevail in gross and net margins should increase as we grow. We run a very lean operation where our overhead will not increase "linear" with our revenues.

Your question was to figure out how we're going to get to $5MM. Hard work, but not hard to do (with funding). The task becomes more challenging to get us to $50MM, which is the real intention.

We expect to be sitting between $5-$12MM within a solid year of funding. Then, through innovations, new products, refinements, and potential synergistic acquisitions - work our way to the larger revenue targets.

Please don't forget, my meeting with a competing company this past week - this company is over $1.5BN in annual revenues. I thought they were 1.2-1.4BN but they corrected me. I was only off by $100MM (remember, my mistake was double our medium term revenue targets). Just to put things into focus.

Be well,

Steven Rossi
Truxmart