Company: WKSP
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023334
Chunk: 52

Company: Worksport Ltd
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 8
Chunk 52
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 net losses of $3,734,484 (2024 - $4,013,399). During the six months ended June 30, 2025, the Company had net losses of $8,194,948
(2024 - $7,728,056). As of June 30, 2025, the Company had working capital of $4,758,042 (December 31, 2024 – $7,304,110) and had an accumulated
deficit of $72,671,914 (December 31, 2024 - $64,476,966). The Company has not generated profit from operations since inception and to date has
relied on debt and equity financing for continued operations. The Company’s ability to continue as a going concern is dependent
upon the ability to generate cash flows from operations and obtain equity and/or debt financing. The Company intends to continue funding
operations through equity and debt financing arrangements, which may be insufficient to fund its capital expenditures, working capital
and other cash requirements in the long term. There can be no assurance that the steps management is taking will be successful.

The
Company has historically operated at a loss, although that may change as sales volumes increase and margins improve. As of June 30, 2025,
the Company had cash and cash equivalents of $1,393,140 (December 31, 2024 - $4,883,099). Despite the Company having completed its purchasing
of large manufacturing machinery for phase one output levels, operational costs are expected to remain elevated and, thus, further decrease
cash and cash equivalents. Concurrently, the Company intends to continue its ramp-up of manufacturing and increasing sales volumes in
2025, which should mitigate the effects of operational costs on cash and cash equivalents as it releases new product lines; this view
is supported by the fact that the manufacturing facility of the Company was completed for initial production output in 2023 and quickly
began improving output and sales during 2024 and into 2025.

The
Company has successfully raised cash, and it is positioned to do so again if deemed necessary or strategically advantageous. During the
year ended December 31, 2021, the Company, through its Reg-A public offering, private placement offering, underwritten public offering,
and exercises of warrants, raised an aggregate of approximately $32,500,000. On September 30, 2022, the Company filed a shelf registration
statement on Form S-