Company: WKSP
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022113
Chunk: 61

Company: Worksport Ltd
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 61
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On
June 13, 2025, Worksport completed the initial closing of its Regulation A offering whereby up to 3,100,000
Units may be sold at an offering price of $3.25
per unit. Each Unit consists of one share of 8%
Series C Convertible Preferred Stock, par value $0.001
per share (the “Series C Preferred Stock”) and one warrant for the right to purchase one (1) share of common stock,
$0.001
par value with an exercise price of $4.50
per share. The qualified Regulation A offering is expected to generate gross proceeds of $10,000,000.
Through September 30, 2025, the Company completed twenty-four tranches and 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).

To
date, the Company’s principal sources of liquidity consist of net proceeds from public and private securities offerings and cash
exercises of outstanding warrants. Management is focused on transitioning towards revenue as its principal source of liquidity by growing
existing product offerings as well as the Company’s customer base. The Company cannot give assurance that it can increase its cash
balances or limit its cash consumption and thus maintain sufficient cash balances for planned operations or future business developments.
Future business development and demands may lead to cash utilization at levels greater than recently experienced. The Company may need
to raise additional capital in the future. However, the Company cannot provide assurances it will be able to raise additional capital
on acceptable terms, or at all.

The
Company has evaluated whether there are conditions and events, considered in the aggregate, that raise substantial doubt about the
Company’s ability to continue as a going concern within one year after the date the financial statements are issued. Still,
certain factors indicate the existence of a material uncertainty that cast substantial doubt about the Company’s ability to
continue as a going concern. The accompanying unaudited condensed consolidated financial statements do not include any adjustments
that might result from the outcome of this uncertainty. These adjustments could be material.

3.
Inventory

As
of September 30, 2025 and December 31, 2024, inventory consists of the following:

Schedule of Inventory 

    September 30, 2025  
    December 31, 2024 
  
    Raw materials 
    $4,138,