Company: WKSP
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000850
Chunk: 155

Company: Worksport Ltd
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 155
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 historically operated at a loss, although that may change as sales volumes increase and margins improve. As of December 31,
2024, the Company had cash and cash equivalents of $4,883,099 (2023 - $3,365,778). 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, 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.

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, 2022, the Company filed a shelf registration
statement on Form S-3, which was declared effective by the SEC on October 13, 2022, allowing the Company to issue up to $30,000,000 of
common stock and prospectus supplement covering the offering, issuance and sale of up to $13,000,000 of common stock that may be issued
and sold under an At The Market Offering Agreement dated September 30, 2022  (“ATM Agreement”), with H.C. Wainwright
& Co., LLC, as the sales agent (“HCW”). Pursuant to the ATM Agreement, HCW is entitled to a commission equal to 3.0%
of the gross sales price of the shares of common stock sold. Through December 31, 2024, the Company has sold and issued 761,408 shares
of common stock in consideration for net proceeds of $6,247,097 under the ATM Agreement.

On
November 2, 2023, the Company consummated a registered direct offering pursuant to which the Company issued 192,500 shares of common
stock and 157,500 pre-funded warrants to an institutional investor for a total net proceeds of $4,261,542. Concurrently with the registered