Company: WKSP
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010837
Chunk: 12

Company: Worksport Ltd
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 12
---
 December 31, 2024 
  
    Building 
    $6,079,410  
    $6,079,410 
  
    Manufacturing equipment 
     6,043,398  
     5,830,999 
  
    Land 
     2,239,405  
     2,239,405 
  
    Leasehold improvements 
     867,756  
     862,504 
  
    Product molds 
     524,476  
     524,476 
  
    Warehouse equipment 
     512,700  
     512,700 
  
    Electrical equipment 
     185,261  
     185,261 
  
    Automobile 
     172,645  
     172,645 
  
    Furniture 
     154,065  
     154,065 
  
    Computers 
     98,594  
     114,786 
  
    Property and equipment, at cost 
     16,877,710  
     16,676,251 
  
    Less accumulated depreciation 
     (3,380,532) 
     (3,032,025)
  
    Property and equipment, net 
    $13,497,178  
    $13,644,226 

Depreciation expense for the three months ended March 31, 2025 and 2024
was $348,507 and $382,520, respectively.

    9

5.
Intangible Assets

Intangible
assets consist of costs incurred to establish the patent rights related to the quick latch and soft vinyl quad-fold tonneau cover technologies,
Worksport trademarks, licenses, and software costs. The Company’s utility patents and design registrations were issued between
2014 and 2025. The patents and software are amortized on a straight-line basis over their useful life. The Company’s trademark,
licenses, and other indefinite life intangible assets are reassessed every year for impairment. The Company determined that impairment
is not necessary for the prior year ended December 31, 2024 and for the three months ended March 31, 2025.

The
components of intangible assets are as follows:

Schedule of Components of Intangible Assets 

    March 31, 2025  
    December 31, 2024 
  
    Software 
    $1,150,000  
    $1,150,000 
  
    License