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Worksport released full year 2021 results which were generally in line with our expectations with some exceptions. 2021 revenue came in at $346,144 which was below our expectations. The 4th quarter produced exceptionally low revenues which were primarily distributor sales. The company was focused on marketing and product rollouts for 2022 during the 4th quarter.
Cash balances as of 12/31/2021 were $28.6 million due to successful capital raises during the year. Inventory levels increased substantially as expected to $501,772 in order to prepare for expected product rollouts and new marketing efforts in 2022. The company has no long-term debt and shareholders equity was $34.2 million at year end.
Subsequent to year-end 2021, the company made announcements regarding product rollouts and the potential purchase of a new manufacturing facility in New York. These press releases were covered in our note dated March 7, 2022.
Regarding 2021 results, CEO Steven Rossi stated, "We are in a position that we are comfortable with. We have a great cash position and are poised to have a very good year. During 2021 we focused our energy on building inventory knowing that making the transition from manufacturing in China to North America was going to cost us some production days. Overall, we are in good position to revamp our manufacturing and sales practices and made good strides in just that."
We believe the company's marketing efforts will pay off with increased revenues for the year and direct-to-consumer sales for Worksport products will commence in the 2nd quarter of 2022. These products include both traditional tonneau covers, solar panel tonneau covers and energy storage systems. The company also mentioned in the 10-K filing that ocean freight, trucking, and container handling costs increased substantially in 2021 and are expected to continue in 2022, particularly when considering the recent increase in gasoline prices.
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