Company: WKSP
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022113
Chunk: 63

Company: Worksport Ltd
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 63
---
 amortized on a straight-line basis over their useful life. The Company’s trademark,
licenses, and other indefinite life intangible assets are reassessed every year for impairment. The Company determined that impairment
is not necessary for the prior year ended December 31, 2024 and for the three and nine months ended September 30, 2025.

The
components of intangible assets are as follows:

Schedule of Components of Intangible Assets 

    September 30, 2025  
    December 31, 2024 
  
    Software 
    $1,150,000  
    $1,150,000 
  
    License 
     218,329  
     103,329 
  
    Patent 
     62,706  
     62,706 
  
    Trademark 
     5,150  
     5,150 
  
    Other 
     291,253  
     29,451 
  
    Intangible assets, gross carrying amount 
     1,727,438  
     1,350,636 
  
    Less: Accumulated amortization 
     (686,964) 
     (397,587)
  
    Intangible assets, net 
    $1,040,474  
    $953,049 

Amortization
expense for the three months ended September 30, 2025 and 2024 was $96,459 and $627, respectively. Amortization expense for the nine months
ended September 30, 2025 and 2024 was $289,377 and $1,879, respectively.

    11

Estimated
amortization of the patent and software over the next five calendar years and beyond September 30, 2025 is as follows:

 Schedule
of Estimated Amortization of the patent and Software

    2025 
    $97,000 
  
    2026 
    $386,000 
  
    2027 
    $3,000 
  
    2028 
    $3,000 
  
    2029 
    $2,000 
  
    Thereafter 
    $35,000 

6.
Prepaid Expenses and Deposits

As
of September 30, 2025 and December 31, 2024, prepaid expenses and deposits consist of the following:

Schedule of Prepaid Expenses and Deposits 

    September 30,