In the first sentence, works is a present indicative (realis) form of the verb, and is used to make a direct assertion about the real world.
For example, many languages use indicative verb forms to ask questions (this is sometimes called interrogative mood) and in various other situations where the meaning is in fact of the irrealis type (as in the English "I hope it works", where the indicative works is used even though it refers to a desired rather than real state of affairs).
Distinctions between indicative and other moods such as the subjunctive were marked inflectionally to a greater extent in historical forms of the language than in Modern English.
Arabic and various other Semitic languages have two kinds of energetic moods, which express something which is strongly believed or which the speaker wishes to emphasize.
The declarative mood (abbreviated DECL) indicates that a statement is true, without any qualifications being made.