Company: WKSP
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000850
Chunk: 228

Company: Worksport Ltd
Filing Date: 2025-03-27
Form: 10-K
Item: Item 4
Chunk 228
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expenses increased for the year ended December 31, 2024 by $1,394,309, from $14,977,175 for the fiscal year ended December 31, 2023 to
$16,371,484 for the fiscal year ended December 31, 2024, due to the following factors.

    ●
    Research
    and development expense increased by $620,622 from $1,669,318 in 2023 to $2,289,940 in 2024. The increase  relates to development
    initiatives for hard tonneau covers (HD3, AL4), soft tonneau covers (SCX) and energy products. 

    ●
    General
    and administrative expense increased by $704,632 from $7,974,362 in 2023 to $8,678,994 in 2024. The
    increase was related to increased employment of production personnel including engineers,
    machine operators, and assembly people, and increases in wages and salaries as we seek to expand our operations and further develop
    our products.

    ●
    Sales
    and marketing expenses increased by $903,450, from $1,483,054 for 2023 to $2,386,504 for 2024. The increase in sales and marketing
    is primarily attributable to the Company’s marking campaigns to create brand and product awareness.

    ●
    Professional
    fees, which include accounting, legal, and consulting fees, decreased by $822,203 from $3,853,134 in 2023 to $3,030,931 in 2024.
    The decrease in professional fees was due to  insourcing certain business processes and fewer share-based payments to third
    parties for services rendered.

\Other
Income and Expenses

We
reported net other expenses for the year ended December 31, 2024 of $697,955 compared to net other expenses of $192,297 the prior year.
The increase in other expenses can be attributed to decreased interest and rental income.

Liquidity
and Capital Resources

As
of December 31, 2024, we had $4,883,099 in cash and cash equivalents and $892,000 of remaining available capacity on our revolving line of credit. We have historically generated only limited gross profit and
have relied primarily upon capital generated from public and private offerings of our securities to fund continuing operations.
Since the Company’s acquisition of Worksport in 2014