Company: WKSP
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000850
Chunk: 351

Company: Worksport Ltd
Filing Date: 2025-03-27
Form: 10-K
Item: Item 7
Chunk 351
---
ulative Net Operating Losses

The
Company has non-capital losses carried forward of approximately $43,999,000 available to reduce future years’ taxable income. These losses
will expire as follows:

Schedule of Cumulative Non-capital Losses 

    United
    States  
    Canada  
    Total 
  
    2034 
    $53,000  
    $183,000  
    $236,000 
  
    2035 
     161,000  
     368,000  
     529,000 
  
    2036 
     868,000  
     262,000  
     1,130,000 
  
    2037 
     1,472,000  
     59,000  
     1,531,000 
  
    2038 
     -  
     520,000  
     520,000 
  
    2039 
     -  
     193,000  
     193,000 
  
    2040 
     -  
     718,000  
     718,000 
  
    2041 
     -  
     2,854,000  
     2,854,000 
  
    2042 
     -  
     3,771,000  
     3,771,000 
  
    2043 
     -  
     2,686,000  
     2,686,000 
  
    2044 
     -  
     5,032,000  
     5,032,000 
  
    Non-capital losses carried forward Total 
    $2,554,000  
    $16,646,000  
    $19,200,000 
  
    Never expire 
    $24,199,000  
    $-  
    $24,199,000 

Effective for 2023, the Tax Cuts and Jobs Act (“TCJA” of 2017 requires taxpayers to capitalize and amortize research and development
costs pursuant to IRC Section 174. Domestic expenses are amortized over a 5 year period and foreign over a 15 year period. As a result
of the TCJA, a deferred tax asset was established beginning in 2023 and is reflected in the table above.

Realization