Company: WKSP
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010837
Chunk: 17

Company: Worksport Ltd
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 17
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 per month with a termination date of May 31, 2025.  

The
Company has accounted for its leases upon adoption of ASC 842 whereby it recognizes a lease liability and a right-of-use asset at the
date of initial application beginning January 1, 2019. The lease liability is measured at the present value of the remaining lease payments,
discounted using the Company’s incremental borrowing rate of 10%. The Company has measured the right-of-use asset at an initial
amount equal to the lease liability.

    12

The
Company’s right-of-use asset and lease liability as of March 31, 2025, and December 31, 2024, are as follows:

 Schedule Right-of-use Asset

    March 31, 2025  
    December 31, 2024 
  
    Right-of-use asset 
    $531,122  
    $595,415 
  
    Current lease liability 
    $244,477  
    $246,535 
  
    Long-term lease liability 
    $310,337  
    $368,472 

The
following is a summary of the Company’s total lease costs:

 Schedule
of Lease Cost

    March 31, 2025  
    March 31, 2024 
  
    Operating lease cost 
    $78,407  
    $133,796 

The
following is a summary of cash paid during the three months ended March 31, 2025 and 2024 for amounts included in the measurement of
lease liabilities:

 Schedule
of Measurement of Lease Liabilities

    March 31, 2025  
    March 31, 2024 
  
    Operating cashflow 
    $78,471  
    $135,784 

The
following are future minimum lease payments as of March 31, 2025:

 Schedule of Future Minimum Lease Payments

    2026 
    $286,627 
  
    2027 
     279,815 
  
    2028 
     46,975 
  
    Total future minimum lease payments 
     613,417 
  
    Less: amount representing interest 
     (58,603)
  
    Present value of future payments 
     554,814 
  
    Current portion 
     244,477 
  
    Long term portion 
    $310,337 

13.
Indebtedness

Long