Company: WKSP
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000850
Chunk: 162

Company: Worksport Ltd
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 162
---
 -  
     (0.1)%
  
    Effective income tax rate 
     22.9% 
     22.3%
  
    Income tax benefit 
     (3,383,000) 
     (2,606,000)
  
    Estimated research and development credit 
     (90,000) 
     (90,000)
  
    Increase in valuation allowance 
     3,473,000  
     2,696,000 
  
    Provision for income taxes 
    $-  
    $- 

    55

Worksport
Ltd.

Notes
to the Consolidated Financial Statements

December
31, 2024 and 2023

8.
Income Taxes (continued)

b)
Deferred Income Tax Assets

The
tax effects of temporary differences that give rise to the deferred income tax assets at December 31, 2024 and 2023 are as follows:

Schedule of Deferred Income Tax Assets 

    2024  
    2023 
  
    Net operating loss carry forwards 
    $10,029,000  
    $6,931,000 
  
    Differences in bases of depreciation of
property and equipment 
     465,000  
     120,000 
  
    Lease liability 
     -  
     (3,000)
  
    Share based compensation 
     1,352,000  
     1,415,000 

    Research and development credit

    180,000

    90,000

    Deferred tax asset, gross 
     12,026,000  
     8,553,000 
  
    Deferred tax assets not recognized 
     (12,026,000)  
     (8,553,000)
  
    Net deferred tax asset 
    $-  
    $- 

Deferred
income taxes within each jurisdiction on the balance sheets at December 31, 2024 and 2023 are as follows:

 Schedule of Deferred Income Taxes
Within Each Jurisdiction

    2024

    2023

    United
    States
     
    $
    7,488,000

    $
    4,291,000

    Canada

    4,538,000

    4,262,000

    Deferred income taxes

    12,026,000

    8,553,000