Company: WKSP
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010837
Chunk: 93

Company: Worksport Ltd
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 2
Chunk 93
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 or future business developments. Future business development
and demands may lead to cash utilization at levels greater than recently experienced. We may need to raise additional capital in the
future. However, we cannot ensure that we will be able to raise additional capital on acceptable terms, or at all. Subject to the foregoing,
we believe our current cash balances coupled with anticipated cash flow from operating activities will be sufficient to meet our working
capital requirements for at least one year from the date of issuance of the accompanying consolidated financial statements.

We
have raised significant funds during the three months ended March 31, 2025 per the following public and private offerings:

Warrant
Inducement

On
February 27, 2025, we entered into a common stock warrant exercise inducement offer letter (the “Inducement Letter”)
with a certain holder (the “Holder”) of existing warrants to purchase shares of our common stock at an exercise price of
$5.198 per share, issued on May 29, 2024 (the “Existing Warrants”), pursuant to which the Holder agreed to exercise for
cash its Existing Warrants to purchase an aggregate of 1,295,000 shares of the Company’s common stock at $5.198 per share, in
consideration for the Company’s agreement to issue new warrants (the “Inducement Warrants”) having terms as
described below, to purchase up to 1,424,500 shares of the Company’s common stock (the “Inducement Warrant
Shares”). We received aggregate gross proceeds of approximately $6,731,400 from the exercise of the Existing Warrants by the
Holder and the sale of the Inducement Warrants, before deducting placement agent fees and other offering expenses payable by us. We
engaged Maxim Group LLC (“Maxim”) to act as our exclusive financial advisor in connection with the transactions
summarized above and will pay Maxim a cash fee from the gross proceeds received from the exercise of the Existing Warrants. Each
Inducement Warrant has an exercise price equal to $6.502 per share. The Inducement Warrants are exercisable at any time on or after
the date that is six (6) months from the issuance date and will have a term of exercise of five and one half (5½) years
following the date of issuance. The exercise price and number of shares of common stock issuable upon exercise is subject to
appropriate adjustment in the event of stock