Company: WKSP
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000850
Chunk: 511

Company: Worksport Ltd
Filing Date: 2025-03-27
Form: 10-K
Item: Item 8
Chunk 511
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Stock have voting rights equal to 30 shares of common stock, per share of Preferred Stock. Series B Preferred Stock have voting rights
equal to 1,000 shares of common stock, per share of Preferred Stock.

8.
Income Taxes

a)
The income tax expense for the years ended December 31, 2024 and 2023 is reconciled per the schedule below:

 Schedule of Reconciliation of Income Tax

    2024  
    2023 
  
    Loss before income taxes 

    Domestic 
    $(10,319,000) 
    $(11,405,000)
  
    Foreign 
     (5,845,000) 
     (3,524,000)
  
    Total 
     (16,164,000) 
     (14,929,000)
  
    Federal statutory income tax rate  
     21.0% 
     21.0%
  
    State taxes, net of federal benefits 
     (0.7)% 
     (0.2)%
  
    Share based compensation 
     1.3% 
     0.9%
  
    Limitation on depreciation and amortization deduction 
     0.9% 
     0.4%
  
    Capitalized research and development expenditures 
     0.4% 
     0.4%
  
    Other 
     -  
     (0.1)%
  
    Effective income tax rate 
     22.9% 
     22.3%
  
    Income tax benefit 
     (3,383,000) 
     (2,606,000)
  
    Estimated research and development credit 
     (90,000) 
     (90,000)
  
    Increase in valuation allowance 
     3,473,000  
     2,696,000 
  
    Provision for income taxes 
    $-  
    $- 

    55

Worksport
Ltd.

Notes
to the Consolidated Financial Statements

December
31, 2024 and 2023

8.
Income Taxes (continued)

b)
Deferred Income Tax Assets

The
tax effects of temporary differences that give rise to the deferred income tax assets at December 31, 2024 and 2023 are as follows:

Schedule of Deferred Income Tax Assets 

    2024  
    2023 
  
    Net operating loss carry