Company: WKSP
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000850
Chunk: 258

Company: Worksport Ltd
Filing Date: 2025-03-27
Form: 10-K
Item: Item 4
Chunk 258
---
  
     529,000 
  
    2036 
     868,000  
     262,000  
     1,130,000 
  
    2037 
     1,472,000  
     59,000  
     1,531,000 
  
    2038 
     -  
     520,000  
     520,000 
  
    2039 
     -  
     193,000  
     193,000 
  
    2040 
     -  
     718,000  
     718,000 
  
    2041 
     -  
     2,854,000  
     2,854,000 
  
    2042 
     -  
     3,771,000  
     3,771,000 
  
    2043 
     -  
     2,686,000  
     2,686,000 
  
    2044 
     -  
     5,032,000  
     5,032,000 
  
    Non-capital losses carried forward Total 
    $2,554,000  
    $16,646,000  
    $19,200,000 
  
    Never expire 
    $24,199,000  
    $-  
    $24,199,000 

Effective for 2023, the Tax Cuts and Jobs Act (“TCJA” of 2017 requires taxpayers to capitalize and amortize research and development
costs pursuant to IRC Section 174. Domestic expenses are amortized over a 5 year period and foreign over a 15 year period. As a result
of the TCJA, a deferred tax asset was established beginning in 2023 and is reflected in the table above.

Realization of deferred tax assets is dependent, in part,
upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers
projected future taxable income, tax planning strategies and carryback opportunities in making its assessment of the recoverability of
tax assets. Net
operating loss carryforwards of approximately $43,399,000 may be offset against future taxable income. No tax benefit from these losses have
been reported in the December 31, 2024 consolidated financial statements since the potential tax benefit