Company: WKSP
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022113
Chunk: 64

Company: Worksport Ltd
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 64
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2025  
    December 31, 2024 
  
    Consulting, services, and advertising 
    $693,788  
    $35,740 
  
    Insurance 
     147,673  
     65,938 
  
    Deposits 
     214,510  
     90,514 
  
    Prepaid
    expenses and deposits 
    $1,055,971  
    $192,192 

7.
Shareholders’ Equity (Deficit)

The Company is authorized to issue up to 55,000,000
shares of capital stock, par value $0.001 per share. Capital stock is divided into two classes designated as common stock and preferred
stock.

Common stock –
The Company is authorized to issue up to 45,000,000
shares of common stock.

Preferred stock – The Company is authorized
to issue up to 10,000,000 shares of preferred stock. The board of directors may authorize, without further shareholder action, the issuance
of preferred stock in one or more classes or series. Preferred stock ranks senior to common stock with respect to payment of dividends
and the distribution of assets on liquidation. Each class or series of preferred stock, when issued, must include its designation and
a description of certain rights, including voting privileges, dividend preferences, conversion features, restrictions and redemption rights.

-During
                                            2019, the Company created and issued 100 shares of its Series A preferred stock. Series A
                                            preferred shareholders vote together as a single class and are entitled to 51% of the voting
                                            rights on all matters regardless of the number of Series A preferred shares outstanding.
                                            Series A preferred stock does not have conversion rights,  is not entitled to receive dividends nor receive any liquidation
                                            preferences.

-During
                                            2020, the Company created the Series B preferred stock. Series B preferred shareholders have
                                            the right to vote for each share of common stock outstanding after the issuance date. Series
                                            B preferred stock does not have conversion rights, is not entitled to receive dividend preferences
                                            nor receive any liquidation preferences. As of September 30, 2025, the Company has not issued
                                            share of Series B preferred stock.

-During 2025, the
                                                                                                                                                Company created its Series C preferred stock for its Regulation A offering. Refer to Note 15, Warrants for a description of units
                                                                                                                                                available in the Regulation A offering.