Company: WKSP
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022113
Chunk: 58

Company: Worksport Ltd
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 58
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 Company had net losses of $4,928,679
(2024 - $4,134,917).
During the nine months ended September 30, 2025, the Company had net losses of $13,123,627
(2024 - $11,862,973). As
of September 30, 2025, the Company had working capital of $6,311,857
(December 31, 2024 – $7,304,110)
and had an accumulated deficit of $77,617,726
(December 31, 2024 - $64,476,966).
The Company has not generated profit from operations since inception and to date has relied on debt and equity financing for
continued operations. The Company’s ability to continue as a going concern is dependent upon the ability to generate cash
flows from operations and obtain equity and/or debt financing. The Company intends to continue funding operations through equity and
debt financing arrangements, which may be insufficient to fund its capital expenditures, working capital and other cash requirements
in the long term. There can be no assurance that the steps management is taking to make the Company profitable will be
successful.

The
Company has historically operated at a loss, although that may change as sales volumes increase and margins improve. As of September
30, 2025, the Company had cash and cash equivalents of $3,761,690
(December 31, 2024 - $4,883,099).
Despite the Company having completed its purchasing of large manufacturing machinery for phase one output levels, operational costs
are expected to remain elevated and, thus, further decrease cash and cash equivalents. Concurrently, the Company intends to continue
its ramp-up of manufacturing and increasing sales volumes in 2025 and 2026, which should mitigate the effects of operational costs
on cash and cash equivalents as it releases new product lines; this view is supported by the fact that the manufacturing facility of
the Company was completed for initial production output in 2023 and quickly began improving output and sales during 2024 and into
2025.

The
Company has successfully raised cash, and it is positioned to do so again if deemed necessary or strategically advantageous. During
the year ended December 31, 2021, the Company, through its Reg-A public offering, private placement offering, underwritten public
offering, and exercises of warrants, raised an aggregate of approximately $32,500,000.
On September 30,