Company: WKSP
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000850
Chunk: 174

Company: Worksport Ltd
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 174
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led, share-based payments are ultimately recognized as an expense in the statement of operations with a corresponding credit
to “Additional Paid in Capital.” If vesting periods or other non-market vesting conditions apply, the expense is allocated
over the vesting period, based on the best available estimate of the number of share options expected to vest. Estimates are subsequently
revised if there is any indication that the number of share options expected to vest differs from previous estimates. Any cumulative
adjustment prior to vesting is recognized in the current period. No adjustment is made to any expense recognized in prior periods if
share options ultimately exercised are different than that estimated on vesting.

Performance
Share Units

On
May 1, 2023, the Company and Steven Rossi reached an agreement to modify 160,000 restricted stock units and 40,000 performance stock
units (“PSUs”) issued on November 11, 2022, and December 29, 2021, respectively, and replace them with 200,000 stock options,
as described below.

On
November 11, 2022, 40,000 and 30,000 PSUs granted on December 29, 2021, as described below, were modified to include new terms pertaining
to the PSU vesting schedule. The PSUs vest in 5% increments according to the modified schedule that correlates with the Company’s
stock price. The first 5% of the PSUs vest upon the Company’s stock price closing at $22.50, 50% will have vested at a closing
price of $53.10, and 100% will have vested at a closing price of $137.60 as measured using the volume weighted average of the Company’s
common stock for ten (10) consecutive trading days, with over $100,000 of trading volume on each of those days. The fair value of the
PSUs was estimated to be $1,254,460. As of December 31, 2024, 7,500 PSUs of the remaining 30,000 PSUs had vested, and the Company recognized
$107,525 (2023 - $155,314) in consulting expenses.

On
December 29, 2021, the Company granted 40,000 and 30,000 PSUs to the Company’s Chief Executive Officer and a director, respectively.
The PSUs were to vest in 5% increments according to a schedule that correlates with the Company’s stock