Company: WKSP
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022113
Chunk: 73

Company: Worksport Ltd
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 73
---

immediately exercisable until all of the pre-funded warrants are exercised. During the same period, 147,789 pre-funded warrants were
exercised for 147,789 shares of common stock for $150.

During
the year ended December 31, 2024, the Company closed a sale of 95,000 shares of common stock. In connection with the sale of common stock
the Company issued 190,000 warrants. The warrants have an exercise price of $4.00 and an expiration date of September 21, 2029.

During
the year ended December 31, 2024, 13,091 warrants issued on August 3, 2021, and 344,652 warrants issued on August 6, 2021, all of which
having an exercise price of $60.50, expired.

On
May 9, 2024, the Company entered into a warrant inducement agreement with the holder of existing warrants to purchase an aggregate 700,000
shares at a reduced exercise price of $5.198
in consideration for the Company to issue new warrants to purchase up to 1,295,000
additional shares of common stock with an exercise price of $5.198 – resulting in gross proceeds of approximately $3,638,000
received by the Company. As a result of the inducement and subsequent exercise, the Company determined the incremental fair value
provided to the holder from both the adjustment in exercise price of the existing warrants and the fair value of the inducement
warrants issued using the Black Scholes model. The total incremental fair value of $4,996,000
is recorded as a non-cash deemed dividend. The proceeds of the warrant inducement and issuance of 284,000
shares of common stock are recorded as capital in excess of par. The obligation to issue the remaining 416,000
shares was originally recorded as a share subscription payable. During the twelve months ended December 31, 2024, the Company issued 416,000
out of the 416,000
shares to be issued.

During
the year ended December 31, 2023, in connection with the sale of 192,500 shares of common stock the Company also sold 157,500 pre-funded
warrants and 700,000 warrants convertible for 857,500 shares of common stock with an exercise price of $0.001 and $13.40, respectively.
The Company