Company: WKSP
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010837
Chunk: 59

Company: Worksport Ltd
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 59
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 fair value of the inducement warrants issued using
the Black Scholes model. The total incremental fair value of $4,996,000 is recorded as a non-cash deemed dividend. The proceeds of the
warrant inducement and issuance of 284,000 shares of common stock are recorded as capital in excess of par. The obligation to issue the
remaining 416,000 shares was originally recorded as a share subscription payable. During the twelve months ended December 31, 2024, the
Company issued 416,000 out of the 416,000 shares to be issued.   

During
the year ended December 31, 2023, the Company and a stock options holder agreed to cancel all 40,000 stock options in exchange for extending
the exercisable period of 30,000 warrants to December 31, 2024. Later in the year ended December 31, 2023, the expiration date for these
warrants was extended to December 31, 2026, and the stock option holder was issued an additional 40,000 restricted stock units.

During
the year ended December 31, 2022, the Company and a warrant holder reached an agreement to extend the exercisable period of 30,000 warrants,
convertible to 2 shares of common stock each, for an additional 12 months.

During
the year ended December 31, 2021, the Company issued 13,091 representative warrants to the Company’s underwriters. The representative
warrants were not exercisable until January 30, 2022. The representative warrants were exercisable for 13,091 shares of common stock
at $60.50 per share until August 3, 2024. As of December 31, 2022, the Company recognized a value of $273,993 for the representative
warrants to share issuance cost. During the year ended December 31, 2024, these representative warrants expired.

As
of March 31, 2025, the Company has the following warrants outstanding:

  Schedule of Warrants Exercise Price

    Exercise price  
    Number outstanding  
    Remaining Contractual Life (Years)  
    Expiry date
  
    $40.00  
     30,000  
     1.75  
    December 31, 2026
  
    $7.40  
     770,026  
     4.47