Company: WKSP
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022113
Chunk: 129

Company: Worksport Ltd
Filing Date: 2025-11-13
Form: 10-Q
Item: Part II, Item 1
Chunk 129
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From
time to time, we are involved in lawsuits, claims, investigations, and proceedings, including pending opposition proceedings involving
patents that arise in the ordinary course of business. We are not presently a party to any material pending or threatened legal proceedings,
nor do we have any knowledge of any such pending claims.

Item
1A. Risk Factors

In
addition to the other information set forth in this Quarterly Report, you should carefully consider the factors discussed in Part I,
“Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024, which could materially affect
our business, financial condition, liquidity, or future results. The risks described in our Annual Report on Form 10-K are not the only
risks facing our Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also
may materially adversely affect our business, financial condition, liquidity or future results.

Item
2. Unregistered Sales of Equity Securities and Use of Proceeds

(a)
Recent Sales of Unregistered Securities

    ●
    On
    June 13, 2025, Worksport completed the initial closing of its Regulation A offering of up to 3,100,000 units, each consisting of one
    share of the Company’s 8% Series C Convertible Preferred Stock, and one warrant to purchase one share of the Company’s
    common stock. The Offering is being conducted pursuant to the Company’s Offering Statement on Form 1-A, as amended, which was
    qualified by the U.S. Securities and Exchange Commission on May 27, 2025. Through September 30, 2025, the Company issued an
    aggregate of 2,349,202 Units to investors that were placed by Digital Offering LLC, the Company’s placement agent, for
    aggregate gross proceeds of $7,634,957, including share subscriptions receivable of $499,850. After deducting Placement Agent
    commissions and offering-related expenses (issuance costs) of $707,035, the Company received net proceeds of $6,927,922.  The
    issuance of the securities was made pursuant to the exemption from registration provided under Section 3(b)(2) of the Securities Act
    and Regulation A. Subsequent to September 30, 2025, the Company issued an aggregate of 725,386 Units to investors for aggregate
    gross proceeds