Company: WKSP
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022113
Chunk: 119

Company: Worksport Ltd
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 2
Chunk 119
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927,922, including $458,720
of share subscriptions receivable. On October 1, 2025, the Company received the share subscriptions receivable of $458,720.
Subsequent to September 30, the Company completed eight additional tranches and received net proceeds of $2,164,492.

Consolidated
Statement of Cash Flows

Cash
decreased from $4,883,099 at December 31, 2024, to $3,761,690 at September 30, 2025 – a decrease of $1,121,409 or 23%.
The decrease was primarily due to repayments on debt obligations.

Operating
Activities

Net
cash used in operating activities for the nine months ended September 30, 2025 was $11,190,182, compared to $7,959,212 in 2024, primarily
driven by the shift to production and distribution of hard tonneau covers.

Accounts
receivable increased at September 30, 2025 by $472,485 and increased at September 30, 2024 by $3,320. The
increase in accounts receivable was due to further development of our business-to-business sales channel, specifically our
Distributor and Jobber customer network and relationships.

Inventory
increased at September 30, 2025 by $1,645,437, and increased at September 30, 2024 by $2,506,568, as a result of the maturation of the
production process and shift in 2024 to hard tonneau cover production.

Prepaid
expenses and deposits increased by $865,634 at September 30, 2025, and decreased by $1,240,649 at September 30, 2024, primarily
attributable to payments for future strategic marketing, including planned public relations campaigns, and deposits for raw
materials required to support planned production requirements. 

Accounts
payable and accrued liabilities increased at September 30, 2025 by $1,477,537 compared to an increase of $1,031,400 at September 30,
2024. The increase is primarily due to an increase in raw materials order volume.

29

Investing
Activities

Net
cash used in investing activities for the nine months ended September 30, 2025 was $1,067,257 compared to net cash used in investing
activities of $500,760 for the nine months ended September 30,