Company: WKSP
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010837
Chunk: 38

Company: Worksport Ltd
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 38
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 exercise inducement offer letter (the “Inducement Letter”)
with a certain holder (the “Holder”) of existing warrants to purchase shares of our common stock at an exercise price of
$5.198 per share, issued on May 29, 2024 (the “Existing Warrants”), pursuant to which the Holder agreed to exercise for
cash its Existing Warrants to purchase an aggregate of 1,295,000 shares of the Company’s common stock at $5.198 per share, in
consideration for the Company’s agreement to issue new warrants (the “Inducement Warrants”) having terms as
described below, to purchase up to 1,424,500 shares of the Company’s common stock (the “Inducement Warrant
Shares”). We received aggregate gross proceeds of approximately $6,731,400 from the exercise of the Existing Warrants by the
Holder and the sale of the Inducement Warrants, before deducting placement agent fees and other offering expenses payable by us. We
engaged Maxim Group LLC (“Maxim”) to act as our exclusive financial advisor in connection with the transactions
summarized above and will pay Maxim a cash fee from the gross proceeds received from the exercise of the Existing Warrants. Each
Inducement Warrant has an exercise price equal to $6.502 per share. The Inducement Warrants are exercisable at any time on or after
the date that is six (6) months from the issuance date and will have a term of exercise of five and one half (5½) years
following the date of issuance. The exercise price and number of shares of common stock issuable upon exercise is subject to
appropriate adjustment in the event of stock dividends, stock splits, subsequent rights offerings, pro rate distributions,
reorganizations, a Fundamental Transaction (as defined in the Inducement Warrants) or similar events affecting our common stock and
the exercise price.

ATM
Shares

Pursuant
to the At The Market Offering Agreement dated as of September 30, 2022 (“ATM Agreement”), with H.C. Wainwright & Co.,
LLC, as the sales agent, during the three month period ended March 31, 2025, we sold and issued a total of 22,725 shares of common stock
in consideration for net proceeds of $185,874 under the ATM Agreement.

21

Consolidated
Statement of Cash Flows

Cash increased from $