Company: WKSP
Filing Date: 2025-10-31
Form Type: DEF 14A
Source: 0001493152-25-020401
Chunk: 20

Company: Worksport Ltd
Filing Date: 2025-10-31
Form: DEF 14A
Chunk 20
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, 2023. The year-over-year sales increased by approximately 4,547%. Revenue increased for the year ended December     
 31, 2024, compared to the prior year due to our increased production and online marketing of domestic manufacturing of premium tonneau 
 covers.                                                                                                                                |

Disclosure of Relationship Between Performance Measures and Executive Compensation

The PEO’s salary between 2023 and 2024 decreased by 7.0%, which largely reflects the payout of accrued but unused vacation in 2023. During the same period, the stock price of the Company decreased 39.6%, and the Company stock was subject to high volatility, going from $14.9 at the start of the year to $9.0 by December 31, 2023.

The Company’s net sales increased 4,547% in Fiscal Year 2024 and increased 1,213% in Fiscal Year 2023. Compensation for our named executive officers decreased by 16.1% during the period of 2023 – 2024. The Company believes that the compensation paid to its PEO and NEOs in Fiscal Year 2023 and 2024 was below the current industry standard. The decrease in compensation for NEOs was primarily due to the internalizing of accounting processes and the lowered reliance on services from UHY Forbes Anderson.

<div align='center'>AUDIT COMMITTEE REPORT</div>

The following report of the Audit Committee is not “soliciting material,” is not deemed “filed” with the SEC and is not to be incorporated by reference into any other of the Company’s filings under the Securities Act or the Exchange Act, except to the extent we specifically incorporate this report by reference therein.

The Audit Committee is comprised of three non-management directors, each of whom is independent as that term is defined in the rules of Nasdaq and satisfies the audit committee independence standard under Rule 10A-3(b)(1) of the Exchange Act.

The Audit Committee operates under a written Audit Committee charter that was approved by the Audit Committee and the Board. The Audit Committee held three (3) meetings during 2025.

The Audit Committee has reviewed and discussed with the management of Lumsden & McCormick, LLP the independent registered public accounting firm for the Company, the audited financial statements of the Company for the year ended December 31, 2024. The Audit Committee has discussed with Lumsden & McCormick, LLP, the matters required to be discussed by Auditing Standard No. 130