Company: WKSP
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022113
Chunk: 17

Company: Worksport Ltd
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 17
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 action, the issuance
of preferred stock in one or more classes or series. Preferred stock ranks senior to common stock with respect to payment of dividends
and the distribution of assets on liquidation. Each class or series of preferred stock, when issued, must include its designation and
a description of certain rights, including voting privileges, dividend preferences, conversion features, restrictions and redemption rights.

-During
                                            2019, the Company created and issued 100 shares of its Series A preferred stock. Series A
                                            preferred shareholders vote together as a single class and are entitled to 51% of the voting
                                            rights on all matters regardless of the number of Series A preferred shares outstanding.
                                            Series A preferred stock does not have conversion rights,  is not entitled to receive dividends nor receive any liquidation
                                            preferences.

-During
                                            2020, the Company created the Series B preferred stock. Series B preferred shareholders have
                                            the right to vote for each share of common stock outstanding after the issuance date. Series
                                            B preferred stock does not have conversion rights, is not entitled to receive dividend preferences
                                            nor receive any liquidation preferences. As of September 30, 2025, the Company has not issued
                                            share of Series B preferred stock.

-During 2025, the
                                                                                                                                                Company created its Series C preferred stock for its Regulation A offering. Refer to Note 15, Warrants for a description of units
                                                                                                                                                available in the Regulation A offering. Series C preferred stock ranks senior to common stock and future classes or series of
                                                                                                                                                preferred stock as to dividend and liquidation rights. Series C preferred shareholders may convert holdings on a 1:1 basis to common
                                                                                                                                                stock at any time. Series C preferred shareholders are entitled to cumulative dividends at a rate of 8.00% of the $3.25 liquidation
                                                                                                                                                preference per share per year for a period of two (2) years from the date of issuance. As of September 30, 2025, the Company
                                                                                                                                                issued 2,349,202
                                                                                                                                                shares of Series C preferred stock and converted 1,977,418
                                                                                                                                                Series C preferred shares to common stock at the shareholder’s request. The Company recognized dividends payable to Series C
                                                                                                                                                preferred shareholders for the three months ended September 30, 2025 of $17,132.

During
the nine months ended September 30, 2025, the following transactions occurred:

During