Company: WKSP
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022113
Chunk: 24

Company: Worksport Ltd
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 24
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. For collateral,
    the lender holds a first position on the Company’s equipment, which is primarily manufacturing and warehousing equipment. Interest
    on the loan is based on the prime rate plus 700 basis points per annum. At September 30, 2025, the outstanding balance of this loan was $1,264,412
(net of issuance costs of $31,435).

The
Company is in compliance with all covenants.

14.
Loss per Share

For
the three and nine months ended September 30, 2025, loss per share is $0.75
and $2.44 (basic and diluted) compared to the three and nine months ended September 30, 2024, of $1.40
and $4.64
(basic and diluted) using the weighted average number of shares of 6,563,228
and 5,377,750
(basic and diluted) as of September 30, 2025 and 2,943,279
and 2,554,075
(basic and diluted) as of September 30, 2024, respectively.

    15

There
are 45,000,000 shares authorized with 7,589,036 and 3,092,040 shares issued and outstanding, at September 30, 2025 and 2024, respectively. The computation
of loss per share is based on the weighted average number of shares outstanding during the period in accordance with ASC Topic No. 260,
“Earnings Per Share.” Shares underlying the Company’s outstanding warrants and convertible promissory notes were excluded
due to the anti-dilutive effect they would have on the computation.

15.
Warrants 

On June 13, 2025, Worksport completed the initial closing of its Regulation A offering whereby up to 3,100,000 units
may be sold at an offering price of $3.25 per unit. Each unit consists of one share of 8% Series C Convertible Preferred Stock, par value
$0.001 per share (the “Series C Preferred Stock”) and one warrant for the right to purchase one (1) share of common stock,
$0.001 par value, with an exercise price of $4.50 per share. The qualified Regulation A offering is expected to generate gross proceeds of
$10,000,000. The proceeds from the Regulation A offering and issuance of units are recorded as additional paid-in capital. Through