Company: WKSP
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023334
Chunk: 42

Company: Worksport Ltd
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 42
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2014, it has never generated a profit. During the
three and six months ended June 30, 2025, we had net losses of $3,734,484 and $8,194,948, respectively (three months ended June 30, 2024 - $4,013,399; six
months ended June 30, 2024 - $7,728,056). As of June 30, 2025, the Company had working capital of $4,758,042 (As of December 31, 2024 - $7,304,110)
and had an accumulated deficit of $72,671,914 (as of December 31, 2024 - $64,476,966).

In
their fiscal 2024 audit report, our independent auditors expressed that there is substantial doubt as to our ability to continue as a
going concern. Our ability to continue as a going concern is dependent upon our ability to generate cash flows from operations and obtain
equity and/or debt financing. We intend to continue funding operations through equity and debt financing arrangements, which may be insufficient
to fund our capital expenditures, working capital and other cash requirements in the long term. There can be no assurance that the steps
our management is taking will be successful.

To
date, our principal sources of liquidity consist of net proceeds from public and private securities offerings and cash exercises of outstanding
warrants. During the six months ended June 30, 2025, the Company received net proceeds of $6,384,840 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.

28

We
have raised significant funds during the six months ended June 30, 2025 per the following public and private offerings: