Company: WKSP
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023334
Chunk: 41

Company: Worksport Ltd
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 41
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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, respectively in cash and cash equivalents. As of June 30, 2025, we
had $4,763,700 of remaining available capacity on our revolving line of credit compared with $811,400 of remaining available capacity as of
December 31, 2024. The decrease in cash and cash equivalents and increase in the remaining available capacity on
our revolving line of credit was primarily a result of the use of cash flows from operations to reduce our indebtedness. We have historically
generated only limited gross profit and have relied primarily upon capital generated from public and private offerings of our securities
to fund continuing operations. Since the Company’s acquisition of Worksport in