Company: WKSP
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010837
Chunk: 61

Company: Worksport Ltd
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 61
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 of share options expected to vest differs from previous estimates. Any cumulative
adjustment prior to vesting is recognized in the current period. No adjustment is made to any expense recognized in prior periods if
share options ultimately exercised are different than that estimated on vesting.

    14

Performance
Share Units

On
May 1, 2023, the Company and Steven Rossi reached an agreement to modify 160,000 restricted stock units and 40,000   performance
stock units (“PSUs”) issued on November 11, 2022, and December 29, 2021, respectively, and replace them with 200,000 stock
options, as described below.

On
November 11, 2022, 40,000
and 30,000
PSUs granted on December 29, 2021, as described
below, were modified to include new terms pertaining to the PSU vesting schedule. The
PSUs vest in 5% increments according to the modified schedule that correlates with the Company’s stock price. The first 5% of the
PSUs vest upon the Company’s stock price closing at $22.50, 50% will have vested at a closing price of $53.10, and 100% will have
vested at a closing price of $137.60 as measured
using the volume weighted average of the Company’s common stock for ten (10) consecutive trading days, with over $100,000
of trading volume on each of those days. The
fair value of the PSUs was estimated to be $1,254,460.
As of March 31, 2025, 7,500
PSUs of the remaining 30,000
PSUs had vested.

On
December 29, 2021, the Company granted 40,000 and 30,000 PSUs to the Company’s Chief Executive Officer and a director, respectively.
The PSUs were to vest in 5% increments according to a schedule that correlates with the Company’s stock price. The first 5% of
the PSUs was to have vested upon the Company’s stock price closing at $30.00, 50% was to have vested at a closing price of $165.00,
and 100% was to have vested at a closing price of $315.00. The fair value of the PSUs was estimated to be $1,344,570.

Stock
Options

The
Company uses