Company: WKSP
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000850
Chunk: 508

Company: Worksport Ltd
Filing Date: 2025-03-27
Form: 10-K
Item: Item 8
Chunk 508
---
 . The patents and software are amortized on a straight-line basis over their useful life. The Company’s trademark,
licenses, and other indefinite life intangible assets are reassessed every year for impairment. The Company determined that impairment
is not necessary for the current year ended December 31, 2024. The components of intangible assets as of December 31, 2024
and 2023 are as follows:

Schedule of Components of Intangible Assets

    2024  
    2023 
  
    Software 
    $1,150,000  
    $1,150,000 
  
    License 
     103,329  
     103,329 
  
    Patent 
     62,706  
     62,706 
  
    Trademark 
     5,150  
     5,150 
  
    Other 
     29,451  
     29,451 
  
    Intangible assets, gross carrying amount 
     1,350,636  
     1,350,636 
  
    Less accumulated amortization 
     (397,587) 
     (11,747)
  
    Intangible assets, net 
    $953,049  
    $1,338,889 

Amortization
expense for the years ended December 31, 2024 and 2023 was $385,840 and $2,450, respectively.

    53

Worksport
Ltd.

Notes
to the Consolidated Financial Statements

December
31, 2024 and 2023

5.
Intangible Assets (continued)

Estimated
amortization of the patent and software over the next five years and beyond December 31, 2024 is as follows:

Schedule
of Estimated
Amortization of Patent and Software

    2025 
    $385,842 
  
    2026 
    $385,842 
  
    2027 
    $2,508 
  
    2028 
    $2,508 
  
    2029 
    $2,508 
  
    Thereafter 
    $35,911 

6.
Prepaid Expenses and Deposits

As
of December 31, 2024 and 2023, prepaid expenses and deposits consists of the following:

Schedule of Prepaid Expenses and Deposits

    2024  
    2023 
  
    Consulting, services and advertising