Company: WKSP
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010837
Chunk: 54

Company: Worksport Ltd
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 54
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 GIC bears a variable interest rate and will
                                            mature on February 27, 2026. The anticipated earned interest on the GIC at maturity is $2,499
                                            ($3,603.69 CAD). 

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 primary
corporate office and research and development (“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 average
$5,033  per month in 2025 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. The 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-of-use asset at the
date of initial application beginning January 1, 2019. The lease liability is measured at the present value of the remaining lease payments,
discounted using the Company’s incremental borrowing rate of 10%. The Company has measured the right-of-use asset at an initial
amount equal to the lease liability.

    12

The
Company’s right-of-use asset and lease liability as of March 31, 2025, and December 31, 2024, are as follows:

 Schedule Right-of-use Asset

    March 31, 2025  
    December 31, 2024 
  
    Right-of-use asset 
    $531,122  
    $595,415 
  
    Current lease liability 
    $244,477  
    $246,535 
  
    Long-term lease liability 
    $310,337  
    $368,472 

The
following is a summary of the Company’s total lease costs:

 Schedule
of Lease Cost

    March 31, 2025