Company: WKSP
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000850
Chunk: 163

Company: Worksport Ltd
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 163
---

    Valuation
    allowance

    (12,026,000
    ) 

    (8,553,000
    )
  
    Net deferred tax asset
     
    $
    -

    $
    -

c)
Cumulative Net Operating Losses

The
Company has non-capital losses carried forward of approximately $43,999,000 available to reduce future years’ taxable income. These losses
will expire as follows:

Schedule of Cumulative Non-capital Losses 

    United
    States  
    Canada  
    Total 
  
    2034 
    $53,000  
    $183,000  
    $236,000 
  
    2035 
     161,000  
     368,000  
     529,000 
  
    2036 
     868,000  
     262,000  
     1,130,000 
  
    2037 
     1,472,000  
     59,000  
     1,531,000 
  
    2038 
     -  
     520,000  
     520,000 
  
    2039 
     -  
     193,000  
     193,000 
  
    2040 
     -  
     718,000  
     718,000 
  
    2041 
     -  
     2,854,000  
     2,854,000 
  
    2042 
     -  
     3,771,000  
     3,771,000 
  
    2043 
     -  
     2,686,000  
     2,686,000 
  
    2044 
     -  
     5,032,000  
     5,032,000 
  
    Non-capital losses carried forward Total 
    $2,554,000  
    $16,646,000  
    $19,200,000 
  
    Never expire 
    $24,199,000  
    $-  
    $24,199,000 

Effective for 2023, the Tax Cuts and Jobs Act (“TCJA” of 2017 requires taxpayers to capitalize and amortize research and development
costs pursuant to IRC Section 174.