Company: WKSP
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022113
Chunk: 66

Company: Worksport Ltd
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 66
---
202
Units, received proceeds of $6,469,202 (net of issuance costs of $665,905), and recognized share subscriptions receivable of $458,720 (net
of issuance costs of $41,130).

During the nine months ended September 30, 2025, certain Series C preferred
shareholders converted 1,977,418 shares into the Company’s common stock.

Refer
to Note 15, Warrants and Note 16, Equity Compensation for additional disclosures.

During
nine months ended September 30, 2024, the following transactions occurred:

During
the nine months ended September 30, 2024, the Company sold 504,921
shares of common stock for a total net proceeds of $566,118.
The sale of shares was in connection with the Shelf Registration Statement and the ATM Agreement dated as of September 30, 2022.

The
Company recognized consulting expense of $753,069 to share subscriptions payable from restricted shares and stock options to be issued.
As of September 30, 2024, the Company issued 333,841 restricted shares with a value of $382,700.

During
the nine months ended September 30, 2024, the Company closed a sale of 2,372,240
shares of common stock for net proceeds of $1,535,591.
In association with the sale of common stock, the Company issued 1,477,892
pre-funded warrants and 7,700,264
warrants totaling proceeds of $1,093,492.

During
the nine months ended September 30, 2024, the Company closed a sale of 950,000 shares of common stock for proceeds of $380,000. In connection
with the sale of common stock, the Company issued 1,900,000 warrants. Refer to Note 15. As of September 30, 2024, the shares have not
been issued.

    12

8.
Income Taxes

The
effective tax rate for the nine months ended September 30, 2025 and 2024 was 22.9% before 100% allowance adjustments on net deferred income
tax assets. The effective tax rate for the nine months ended September 30, 2025 and 2024 was higher than expected from applying the U.S.
federal statutory rate of 21% to loss before income taxes due to tax benefits on losses generated outside the U.S. with higher statutory
rates