Company: WKSP
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023334
Chunk: 87

Company: Worksport Ltd
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 8
Chunk 87
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 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.

28

We
have raised significant funds during the six months ended June 30, 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. Each Inducement Warrant has an exercise price equal to $6.502 per share.
The Inducement Warrants are exercisable at any time on or after the date that is six (6) months from the issuance date and will have
a term of exercise of five and one half (5½) years following the date of issuance. The exercise price and number of shares of
common stock issuable upon exercise is subject to appropriate adjustment in the event of stock dividends, stock splits, subsequent rights
offerings, pro rate distributions, reorganizations, a Fundamental Transaction (as defined in the Inducement Warrants) or