Company: WKSP
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022113
Chunk: 69

Company: Worksport Ltd
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 69
---
 of $9,659 per month with a termination date of April 30, 2028. The Company’s incremental borrowing rate used to initially
measure the present value of the remaining lease payments was 15%. 

On
July 14, 2025, the Company signed a lease agreement for 1,992
square feet of office space to be used as an R&D facility for its Terravis Energy subsidiary pursuant to a two-year
lease effective July 18, 2025 for an average monthly rent of $3,154.
The Company’s incremental borrowing rate used to initially measure the present value of the remaining lease payments was 15%.

The
Company’s right-of-use asset and lease liability as of September 30, 2025, and December 31, 2024, are as follows:

Schedule Right-of-use Asset 

    September 30, 2025  
    December 31,
                                                                               2024 
  
    Right-of-use asset 
    $299,376  
    $595,415 
  
    Current lease liability 
    $110,202  
    $246,535 
  
    Long-term lease liability 
    $189,116  
    $368,472 

The
following is a summary of the Company’s total lease costs during the nine months ended September 30, 2025 and 2024:

Schedule
of Lease Cost 

    September 30, 2025  
    September 30, 2024 
  
    Operating lease cost 
    $230,471  
    $331,057 

The
following is a summary of cash paid during the nine months ended September 30, 2025 and 2024 for amounts included in the measurement
of lease liabilities:

Schedule
of Measurement of Lease Liabilities 

    September 30, 2025  
    September 30, 2024 
  
    Operating cashflow 
    $229,282  
    $328,113 

    14

The
following are future minimum annual lease payments as of September 30, 2025:

 Schedule
of Future Minimum Annual Lease Payments

    2025 
    $37,138 
  
    2026 
     144,452 
  
    2027 
     134,284 
  
    2028 
     39,784 
  
    Total future minimum lease payments 
     355,658 
  
    Less