Company: WKSP
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010837
Chunk: 53

Company: Worksport Ltd
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 53
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 some of which is internally developed and considers risk premiums that a market participant would require.

The
Company’s financial instruments include cash and cash equivalents, accounts receivable, accounts payable, revolving line of credit,
and long-term debt. The fair values of cash and cash equivalents, accounts receivable and accounts payable approximate their carrying
value because of the short-term nature of these instruments. The Company’s revolving line of credit is based on a variable interest
rate and is reflected in the financial statements at carrying value which approximates fair value at March 31, 2025. The Company’s
long-term debt is based on a fixed interest rate, and its carrying amount approximates fair value at March 31, 2025. The fair value of
the revolving line of credit and long-term debt is classified as Level 2 within the fair value hierarchy and is estimated based on quoted
market prices.

    11

10.
Changes in Cash Flows from Operating Assets and Liabilities

The
changes to the Company’s operating assets and liabilities for the three months ended March 31, 2025 and 2024 are as follows:

 Schedule of Changes in Operating Assets and Liabilities

    2025  
    2024 
  
    Decrease (increase) in accounts receivable 
    $(25,362) 
    $306,778 
  
    Decrease (increase) in other receivable 
     (27,015) 
     10,538 
  
    Decrease (increase) in inventory 
     (583,116) 
     (2,908,354)
  
    Decrease (increase) in prepaid expenses and deposits 
     (192,071) 
     1,155,090 
  
    Increase (decrease) in accounts payable and accrued liabilities 
     390,691  
     729,303 
  
    Changes in operating assets
    and liabilities 
    $(436,873) 
    $(706,645)

11.
Investments

a)During
                                            the three months ended March 31, 2025, $66,308 ($90,000 CAD) of the Company’s
                                            Guaranteed Investment Certificate (“GIC”) matured and the Company received $2,499
                                            ($3,603.69 CAD) in interest income. During the same period, the Company reinvested the principal
                                            amount of $66,308 ($90,000 CAD) in a GIC. The