Company: WKSP
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023334
Chunk: 106

Company: Worksport Ltd
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 2
Chunk 106
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 our AL3 product line and release of our AL4 product
line, both of which required less development efforts as resources were shifted to normal-course production.

    ●
    General and administrative expense increased by $1,237,596, from $4,205,239
in 2024 to $5,442,835 in 2025. The increase was primarily attributable to an increase in e-commerce fees due to higher current period
sales volume and an increase in software subscriptions and depreciable equipment used to support administrative and production efforts.

    ●
    Sales
    and marketing expense increased by $1,629,535, from $545,569 in 2024 to $2,175,104 in 2025. The increase in sales and marketing was
    primarily attributable to marketing campaigns to drive traffic and engagement to our online marketplace for direct to consumer
    sales.

    ●
    Professional
    fees expense, which includes accounting, legal, and consulting fees, decreased from $1,710,341 in 2024 to $1,063,534 in 2025. The
    decrease in professional fees was primarily driven by reduced reliance on external consultants as the Company progressed from the
    planning and setup phase of its manufacturing operations to active production and scaling efforts, inclusive of marketing, as well
    as a reduction in non-cash expenditures relating to stock-based compensation for consultants.

27

Other
Income and Expenses

We
reported net other expenses for the six months ended June 30, 2025 of $321,012, compared to $177,842 for the six months ended June 30, 2024.
The increase in net other expenses was attributed to increased interest expense on our line of credit and a reduction in
rental income as a result of the completion of the term of our sublease agreement.

Net
Loss

Net
loss for the six months ended June 30, 2025 was $8,194,948, compared to a net loss of $7,728,056 for the six months ended June 30,
2024 – an increase of 6.0%. The increase in the net loss can be attributed to the increase in various operating expenses as we
focus on expanding our operations, manufacturing, and supply chain.

Liquidity
and Capital Resources

As
of June 30, 2025 and December 31, 2024, we had $1,393,140 and $4,883,099