Company: WKSP
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010837
Chunk: 76

Company: Worksport Ltd
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 76
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 securities offerings and cash exercises of outstanding
warrants. During the three months ended March 31, 2025, the Company received net proceeds of $6,570,415 from offerings. Management is focused
on transitioning towards gross profit as our principal source of liquidity by growing our existing product offerings and customer base
and realizing manufacturing efficiency improvements. We cannot give assurance that we can increase our cash balances or limit our cash
consumption and thus maintain sufficient cash balances for our planned operations or future business developments. Future business development
and demands may lead to cash utilization at levels greater than recently experienced. We may need to raise additional capital in the
future. However, we cannot ensure that we will be able to raise additional capital on acceptable terms, or at all. Subject to the foregoing,
we believe our current cash balances coupled with anticipated cash flow from operating activities will be sufficient to meet our working
capital requirements for at least one year from the date of issuance of the accompanying consolidated financial statements.

We
have raised significant funds during the three months ended March 31, 2025 per the following public and private offerings:

Warrant
Inducement

On
February 27, 2025, we entered into a common stock warrant 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.