Company: WKSP
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000850
Chunk: 15

Company: Worksport Ltd
Filing Date: 2025-03-27
Form: 10-K
Item: Item 8
Chunk 15
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 enhanced disclosures about significant segment expenses. ASU 2023-07 is effective for our
annual periods beginning January 1, 2024, and for interim periods beginning January 1, 2025, with early adoption permitted. We adopted
this standard for the year ended December 31, 2024, and applied the amendments retrospectively to all prior periods presented. Refer
to Note 18, Segment Reporting. The adoption of this standard did not have a material effect on the financial statements and related disclosures.

Recent
accounting pronouncements not yet adopted

In
December 2023, the FASB issued ASU 2023-09 “Income Taxes (Topics 740): Improvements to Income Tax Disclosures”
to expand the disclosure requirements for income taxes, specifically related to the rate reconciliation and income taxes paid. ASU 2023-09
is effective for our annual periods beginning January 1, 2025, with early adoption permitted. The Company is currently evaluating the
potential effect that the updated standard will have on the financial statements and related disclosures.

In
November 2024, the FASB issued ASU 2024-03, “Income Statement – Reporting Comprehensive Income – Expense Disaggregation
Disclosures” to enhance disclosure of specified categories of expenses (purchases of inventory, employee compensation, depreciation
and amortization) included in certain expense captions presented on the face of the income statement. ASU 2024-03 is effective beginning
after December 15, 2026, and for interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted.
The Company is currently evaluating the potential effect that the updated standard will have on the financial statements and related
disclosures.

The
Company considers the applicability and impact of all ASUs. ASUs not listed were assessed and determined to be either not applicable
or had or are expected to have an immaterial impact on the financial statements and related disclosures.

    51

Worksport
Ltd.

Notes
to the Consolidated Financial Statements

December
31, 2024 and 2023

2.
Going Concern

As
of December 31, 2024, the Company had $4,883,099
in cash and cash equivalents. The Company also has availability on its revolving line of credit of $892,000. The Company has
generated only limited revenues and has relied primarily upon capital generated from public and private offerings of its securities.
Since