Company: WKSP
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000850
Chunk: 355

Company: Worksport Ltd
Filing Date: 2025-03-27
Form: 10-K
Item: Item 7
Chunk 355
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776,709)
  
    Increase (decrease)
    in accounts payable and accrued liabilities 
     1,167,834  
     (492,114)
  
    Changes
    in operating assets and liabilities 
    $1,298,027  
    $(3,852,297)

11.
Investment

During
the year ended December 31, 2024, $66,308 ($90,000 CAD) of the Company’s Guaranteed Investment Certificate (“GIC”)
matured and the Company received $3,054 ($4,129 CAD) in interest income. During the same period, the Company reinvested the principal
amount of $66,308 ($90,000 CAD) in a GIC. The GIC bears a variable interest rate and will mature on February 27, 2025. The anticipated
earned interest on the GIC at maturity is $3,123 ($4,275 CAD).

    58

Worksport
Ltd.

Notes
to the Consolidated Financial Statements

December
31, 2024 and 2023

12.
Leases

During
the year ended December 31, 2022, the Company signed a lease agreement for approximately 20,296 square feet to be used as its then primary,
now secondary corporate office and R&D facility pursuant to a five-year lease, dated June 1, 2022, for a variable rate averaging
$20,242 per month over the lifetime of the lease not inclusive of additional fees, which also vary and averaged $5,250 per month in 2024
not inclusive of taxes.

During
the year ended December 31, 2023, the Company signed a lease agreement for office space to be used as an R&D facility pursuant to
a one-year lease with an option to extend the lease for an additional year, dated June 1, 2023, for a monthly rent of $3,350. This lease
was renewed effective June 1, 2024 at a rate of $3,600 per month with a termination date of May 31, 2025.

The
Company has accounted for its leases upon adoption of ASC 842 whereby it recognizes a lease liability and a right-of-use asset at
the date of initial application beginning January 1, 2019. The lease liability is measured at the present value of the remaining
lease payments, discounted using the Company’s incremental estimated borrowing rate of 10%.
The