Company: WKSP
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000850
Chunk: 167

Company: Worksport Ltd
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 167
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 in inventories 
     (1,558,562) 
     (2,285,120)
  
    Decrease (increase) in prepaid expenses
    and deposits 
     1,305,057  
     (776,709)
  
    Increase (decrease)
    in accounts payable and accrued liabilities 
     1,167,834  
     (492,114)
  
    Changes
    in operating assets and liabilities 
    $1,298,027  
    $(3,852,297)

11.
Investment

During
the year ended December 31, 2024, $66,308 ($90,000 CAD) of the Company’s Guaranteed Investment Certificate (“GIC”)
matured and the Company received $3,054 ($4,129 CAD) in interest income. During the same period, the Company reinvested the principal
amount of $66,308 ($90,000 CAD) in a GIC. The GIC bears a variable interest rate and will mature on February 27, 2025. The anticipated
earned interest on the GIC at maturity is $3,123 ($4,275 CAD).

    58

Worksport
Ltd.

Notes
to the Consolidated Financial Statements

December
31, 2024 and 2023

12.
Leases

During
the year ended December 31, 2022, the Company signed a lease agreement for approximately 20,296 square feet to be used as its then primary,
now secondary corporate office and R&D facility pursuant to a five-year lease, dated June 1, 2022, for a variable rate averaging
$20,242 per month over the lifetime of the lease not inclusive of additional fees, which also vary and averaged $5,250 per month in 2024
not inclusive of taxes.

During
the year ended December 31, 2023, the Company signed a lease agreement for office space to be used as an R&D facility pursuant to
a one-year lease with an option to extend the lease for an additional year, dated June 1, 2023, for a monthly rent of $3,350. This lease
was renewed effective June 1, 2024 at a rate of $3,600 per month with a termination date of May 31, 2025.

The
Company has accounted for its leases upon adoption of ASC 842 whereby it recognizes a lease liability and a right