Company: WKSP
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022113
Chunk: 72

Company: Worksport Ltd
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 72
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 in accordance with ASC Topic No. 260,
“Earnings Per Share.” Shares underlying the Company’s outstanding warrants and convertible promissory notes were excluded
due to the anti-dilutive effect they would have on the computation.

15.
Warrants 

On June 13, 2025, Worksport completed the initial closing of its Regulation A offering whereby up to 3,100,000 units
may be sold at an offering price of $3.25 per unit. Each unit consists of one share of 8% Series C Convertible Preferred Stock, par value
$0.001 per share (the “Series C Preferred Stock”) and one warrant for the right to purchase one (1) share of common stock,
$0.001 par value, with an exercise price of $4.50 per share. The qualified Regulation A offering is expected to generate gross proceeds of
$10,000,000. The proceeds from the Regulation A offering and issuance of units are recorded as additional paid-in capital. Through September
30, 2025, the Company issued 2,349,202 warrants to investors.

On
February 27, 2025, the Company entered into a warrant inducement agreement  with the holder of existing
warrants to purchase an aggregate 1,295,000 shares. Pursuant to the inducement, the exercising holder of the existing warrants received
1,425,000 inducement warrants and the Company received $6,731,000 from the exercise of the existing warrants. As a result of the inducement
and subsequent exercise, the Company determined the incremental fair value provided to the holder from the inducement warrants issued
using the Black Scholes model. The total incremental fair value of $7,602,000, is recorded as a non-cash deemed dividend. The proceeds
of the warrant inducement and issuance of 1,295,000 shares of common stock are recorded as additional paid-in capital.

During
the year ended December 31, 2024, in connection with the sale of 237,224 shares of common stock, the Company also sold 147,789 pre-funded
warrants and issued 770,026 warrants exercisable for a total of 770,026 shares of common stock for $0.001 and $7.40, respectively, per
share. The Company received net proceeds of $1,093,492 associated with the sale of the pre-funded warrants. The pre-funded warrants are