Company: WKSP
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010837
Chunk: 20

Company: Worksport Ltd
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 20
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 13

15.
Warrants

On
February 27, 2025, the Company entered into a warrant inducement agreement (the “Inducement”) 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
immediately exercisable until all of the pre-funded warrants are exercised. During the same period, 147,789 pre-funded warrants were
exercised for 147,789 shares of common stock for $150.

During
the year ended December 31, 2024, the Company closed a sale of 95,000 shares of common stock. In connection with the sale of common stock
the Company issued 190,000 warrants. The warrants have an exercise price of $4.00 and an expiration date of September 21, 2029.

During
the year ended December 31, 2024, 13,091 warrants issued on August 3, 2021, and 344,652 warrants issued on August 6, 2021, all of which
having an exercise price of $60.50, expired.

During
the year ended December 31, 2023, in connection with the sale of 192,500 shares of common stock the Company also sold 157,500