Company: WKSP
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022113
Chunk: 71

Company: Worksport Ltd
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 71
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 New York,
and inventory) other than the Company’s equipment. A non-usage fee of 0.25% is assessed quarterly and applied to the difference
between the quarter’s average daily outstanding loan balance and the total credit facility amount. As of September 30, 2025, the
Company had an available balance of $3,291,250 to borrow on the Revolving Credit Facility.

    b)
    On
    September 4, 2024, the Company, through its wholly owned subsidiary, Worksport USA Operations Corporation, entered into a $1,487,200
    credit and security agreement with an external lending entity with a maturity date of September 1, 2027, which is 36 months from
    initial funding. Upon transaction close, the Company received net proceeds of $1,412,750 (net of issuance costs of $43,735). The
    Company and its wholly owned subsidiary, Worksport New York Operations Corporation, serve as guarantors on the loan. 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