Company: WKSP
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022113
Chunk: 68

Company: Worksport Ltd
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 68
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     1,477,537  
     1,031,400 
  
    Changes
    in operating assets and liabilities 
    $(1,545,993) 
    $(225,941)

11.
Investments

During
the nine months ended September 30, 2025, $66,308 of
the Company’s Guaranteed Investment Certificate (“GIC”) matured and the Company received $2,500 in
interest income. During the same period, the Company reinvested the principal amount of $66,308 in
a GIC. The GIC bears a variable interest rate and will mature on February 27, 2026. The anticipated earned interest on the GIC at
maturity is $2,500.
During the nine months ended September 30, 2025, the Company invested $56,373 in
a second Guaranteed Investment Certificate (“GIC”) bearing a variable interest rate and will mature on June 5, 2026. The
anticipated earned interest on the GIC at maturity is $1,270.

    13

12.
Leases

The
Company accounts for leases under Accounting Standards Codification (“ASC”) 842, Leases, whereby it recognizes a lease liability and a right-of-use asset. The
lease liability is measured at the present value of the remaining lease payments, discounted by the Company’s incremental
borrowing rate. The Company measured the right of use asset at an initial amount equal to the lease liability.

During
the year ended December 31, 2023, the Company signed a lease agreement for office space to be used as an R&D facility pursuant to
a one-year lease with an option to extend the lease for an additional year, dated June 1, 2023, for a monthly rent of $3,350. The lease
was renewed effective June 1, 2024 at a rate of $3,600 per month with a termination date of May 31, 2025. The lease was not renewed.
The Company’s incremental borrowing rate used to  initially measure the present value of the remaining lease payments
was 10%.

On
April 1, 2025, the Company signed a lease agreement for 12,500 square feet of office space to be used as a R&D facility pursuant
to a three-year lease with an option to extend the lease for an additional two years. The lease was effective on May 1, 2025 at a
rate