Company: WKSP
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010837
Chunk: 78

Company: Worksport Ltd
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 78
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 31, 2024 due to timing of deposits from B2C customers prior to fulfillment of their orders
at the end of the accounting period.

Accounts payable and accrued liabilities increased at March 31, 2025 by
$390,691 compared to an increase of $729,303 at March 31, 2024.

Investing
Activities

Net
cash used in investing activities for the three months ended March 31, 2025 was $458,342 compared to $212,969 for the three months
ended March 31, 2024. The increase in investing activities was primarily attributable to our purchase of cryptocurrency and website
enhancements, both of which are classified as intangible assets. We also acquired additional tooling components for our COR production process.

22

Financing
Activities

Net cash provided by financing activities for the three months ended March
31, 2025 was $4,495,533 compared to net cash used in financing activities of $3,178,775 for the three months ended March 31, 2024.

Off-Balance
Sheet Arrangements

We
did not have any material off-balance sheet arrangements that have or are reasonably likely to have a material future effect on our financial
condition, results of operations or cash flows.

Item
3. Quantitative and Qualitative Disclosures about Market Risk

As
a “smaller reporting company,” as defined by Rule 12b-2 of the Exchange Act, we are not required to provide the information
in this Item.

Item
4. Controls and Procedures

Disclosure
Controls and Procedures

We
carried out an evaluation, under the supervision and with the participation of our management, including our principal executive officer
and principal financial officer, of the effectiveness of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e)
and 15d-15(e)) as of the end of the period covered by this Quarterly Report on Form 10-Q. Based upon that evaluation, our principal executive
officer and principal financial officer concluded that, as of the end of the quarter covered in this report, our disclosure controls
and procedures were not effective to ensure that information required to be disclosed in reports filed under the Securities Exchange
Act of 1934 is recorded, processed, summarized and reported within the required time and is accumulated and communicated to our management,
including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required
disclosure