Company: WKSP
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000850
Chunk: 3

Company: Worksport Ltd
Filing Date: 2025-03-27
Form: 10-K
Item: Item 8
Chunk 3
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    ●
    We
    obtained management’s calculations and tested the clerical accuracy and inputs used.

    ●
    We
    agreed the basic terms to source agreements and considered key assumptions.

    ●
    We
    recalculated the recorded values and conversion amounts.

Going
Concern

Description
of the Matter

As
discussed in Note 2 to the consolidated financial statements, the Company has experienced recurring net losses that raise substantial
doubt about the Company’s ability to continue as a going concern. Upon analysis of the Company’s current financial situation
and projected outlooks, we believe there is substantial doubt about the Company’s ability to continue as a going concern.

How
We Addressed the Matter in Our Audit

Our
auditing procedures related to going concern included the following, among others:

    ●
    We
    obtained the Company’s evaluation of its ability to continue as a going concern and evaluated the Company’s plans to
    address these concerns.

    ●
    We
    analyzed the Company’s current state of operations.

    ●
    We
    evaluated the Company’s current and projected cash flow.

We
have served as the Company’s auditor since 2022.

/s/
Lumsden & McCormick, LLP

Buffalo,
New York

March
27, 2025

PCAOB
ID Number: 130

44

Worksport
Ltd.

Consolidated
Balance Sheets

December
31, 2024 and 2023

    2024  
    2023 
  
    ASSETS 

    Current assets 

    Cash and cash
    equivalents 
    $4,883,099  
    $3,365,778 
  
    Accounts receivable, net 
     42,589  
     463,122 
  
    Other receivable 
     169,728  
     165,865 
  
    Inventories, net (Note
    3) 
     5,190,054  
     3,631,492 
  
    Prepaid
    expenses and deposits (Note 6) 
     192,192  
     1,497,249 
  
    Total
    Current assets 
     10,477,662  
     9,123,506 
  
    Investment (Note 11) 
     66,308  
     90,731 
  
    Property and equipment,
    net (