Company: WKSP
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010837
Chunk: 56

Company: Worksport Ltd
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 56
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 the Company drew down approximately $5.06 million
                                            of the Revolving Credit Facility, net of $790,000 of interest reserve required to be withheld
                                            to ensure interest payments by the Company. The Company used $4.73 million of the drawn down
                                            amount to refinance the Company’s mortgage on the Company’s real property located
                                            at 2500 North America Dr. in West Seneca, New York, and additionally drew approximately $330,000
                                            to fund operations. At March 31, 2025, the outstanding balance of this loan was $1,570,197 (net
                                            of issuance costs of $165,217).

    For collateral, the lender holds a first position on the
    Company’s major asset classes (accounts receivable, the factory in New York, and inventory) other than the Company’s
    equipment. A non-usage fee of 0.25% is assessed quarterly and applied to the difference between the quarter’s average daily
    outstanding loan balance and the total credit facility amount. As of March 31, 2025, the Company had an available balance of $2,858,700
    to borrow on the Revolving Credit Facility.

    b)
    On
                                            September 4, 2024, the Company, through its wholly owned subsidiary, Worksport USA Operations
                                            Corporation, entered into a $1,487,200 credit and security agreement with an external lending
                                            entity with a maturity date of September 1, 2027, which is 36 months from initial funding.
                                            Upon transaction close, the Company received net proceeds of $1,412,750 (net of issuance
                                            costs of $43,735). The Company and its wholly owned subsidiary, Worksport New York Operations
                                            Corporation, serve as guarantors on the loan. For collateral, the lender holds a first position
                                            on the Company’s equipment, which is primarily manufacturing and warehousing equipment.

14.
Loss per Share

For
the three months ended March 31, 2025, loss per share is $1.05 (basic and diluted) compared to that of the three months ended March
31, 2024, of $1.75
(basic and diluted) using the weighted average number of shares of 4,262,474 (basic and diluted) and 2,118,807
(basic and diluted), respectively.

There
are 29,900,000 shares authorized