Company: WKSP
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010837
Chunk: 37

Company: Worksport Ltd
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 37
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port in 2014, it has never
generated a profit. During the three months ended March 31, 2025, we had net losses of $4,460,464 (three months ended March 31, 2024
- $3,714,657). As of March 31, 2025, the Company had working capital of $7,936,250 (As of December 31, 2024 - $7,304,110) and had an
accumulated deficit of $68,937,430 (As of December 31, 2024 - $64,476,966).

In
their fiscal 2024 audit report, our independent auditors expressed that there is substantial doubt as to our ability to continue as
a going concern. Our ability to continue as a going concern is dependent upon our ability to generate cash flows from operations and
obtain equity and/or debt financing. We intend to continue funding operations through equity and debt financing arrangements, which
may be insufficient to fund our capital expenditures, working capital and other cash requirements in the long term. There can be no
assurance that the steps our management is taking will be successful.

To
date, our principal sources of liquidity consist of net proceeds from public and private securities offerings and cash exercises of outstanding
warrants. During the three months ended March 31, 2025, the Company received net proceeds of $6,570,415 from offerings. Management is focused
on transitioning towards gross profit as our principal source of liquidity by growing our existing product offerings and customer base
and realizing manufacturing efficiency improvements. We cannot give assurance that we can increase our cash balances or limit our cash
consumption and thus maintain sufficient cash balances for our planned operations or future business developments. Future business development
and demands may lead to cash utilization at levels greater than recently experienced. We may need to raise additional capital in the
future. However, we cannot ensure that we will be able to raise additional capital on acceptable terms, or at all. Subject to the foregoing,
we believe our current cash balances coupled with anticipated cash flow from operating activities will be sufficient to meet our working
capital requirements for at least one year from the date of issuance of the accompanying consolidated financial statements.

We
have raised significant funds during the three months ended March 31, 2025 per the following public and private offerings:

Warrant
Inducement

On
February 27, 2025, we entered into a common stock warrant