Company: WKSP
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023334
Chunk: 80

Company: Worksport Ltd
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 8
Chunk 80
---
a nearly six fold increase since the beginning of 2025.

    ●
    On June 13, 2025, Worksport completed the initial closing of its Regulation
A offering of up to 3,100,000 units, each consisting of one share of the Company’s 8% Series C Convertible Preferred Stock, and
one warrant to purchase one share of the Company’s common stock. The Offering is being conducted pursuant to the Company’s
Offering Statement on Form 1-A, as amended, which was qualified by the U.S. Securities and Exchange Commission on May 27, 2025. In connection
with the initial closing, the Company issued an aggregate of 49,335 Units to investors that were placed by Digital Offering LLC, the Company’s
placement agent, for aggregate gross proceeds of $160,339. After deducting Placement Agent commissions and offering-related expenses
of $11,224, the Company received net proceeds of $149,115.

    ●
    Through June 30, 2025, the Company has sold and issued 22,725 shares of
common stock in consideration for net proceeds of $185,874 under the ATM Agreement.

CRITICAL
ACCOUNTING POLICIES

On
a regular basis, we evaluate the critical accounting policies used to prepare our consolidated financial statements, including revenue
recognition, inventory valuation, reviews for impairment of long-lived assets, and income taxes.

RECENT
ACCOUNTING PRONOUNCEMENTS

See
Note 1, Description of Business and Significant Accounting Policies included in Item 1, Financial Statements of this report for further
information regarding Financial Accounting Standards Board issued Accounting Standards Updates (“ASU”).

CONSOLIDATED
RESULTS OF OPERATIONS

Three
Months Ended June 30, 2025 compared to the Three Months Ended June 30, 2024

Net
sales

For
the three months ended June 30, 2025, net sales were $4,104,958, as compared to $1,921,539 for the three months ended June 30, 2024. Year-over-year
net sales increased by approximately 114%. For the three months ended June 30, 2025, net sales generated in U.S. was $4,070,406,
as compared to $1,910,838 for the same period in 2024, an increase of 113%. For the three months ended June 30, 2025, revenue generated
in Canada