Company: WKSP
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000850
Chunk: 410

Company: Worksport Ltd
Filing Date: 2025-03-27
Form: 10-K
Item: Item 7A
Chunk 410
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 equity transactions included the following, among others:

    ●
    We
    evaluated the appropriateness and consistency of management’s methods used to develop its estimates.

    ●
    We
    gained an understanding of management’s process to record the equity transactions.

    ●
    We
    obtained management’s calculations and tested the clerical accuracy and inputs used.

    ●
    We
    agreed the basic terms to source agreements and considered key assumptions.

    ●
    We
    recalculated the recorded values and conversion amounts.

Going
Concern

Description
of the Matter

As
discussed in Note 2 to the consolidated financial statements, the Company has experienced recurring net losses that raise substantial
doubt about the Company’s ability to continue as a going concern. Upon analysis of the Company’s current financial situation
and projected outlooks, we believe there is substantial doubt about the Company’s ability to continue as a going concern.

How
We Addressed the Matter in Our Audit

Our
auditing procedures related to going concern included the following, among others:

    ●
    We
    obtained the Company’s evaluation of its ability to continue as a going concern and evaluated the Company’s plans to
    address these concerns.

    ●
    We
    analyzed the Company’s current state of operations.

    ●
    We
    evaluated the Company’s current and projected cash flow.

We
have served as the Company’s auditor since 2022.

/s/
Lumsden & McCormick, LLP

Buffalo,
New York

March
27, 2025

PCAOB
ID Number: 130

44

Worksport
Ltd.

Consolidated
Balance Sheets

December
31, 2024 and 2023

    2024  
    2023 
  
    ASSETS 

    Current assets 

    Cash and cash
    equivalents 
    $4,883,099  
    $3,365,778 
  
    Accounts receivable, net 
     42,589  
     463,122 
  
    Other receivable 
     169,728  
     165,865 
  
    Inventories, net (Note
    3) 
     5,190,054  
     3,631,492 
  
    Prepaid
    expenses and deposits (Note 6) 
     192,192  
     1,497,249 
  
    Total