Company: WKSP
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023334
Chunk: 60

Company: Worksport Ltd
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 8
Chunk 60
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 interest rate, and its carrying amount approximates fair value at June 30, 2025. The fair value of
the revolving line of credit and long-term debt is classified as Level 2 within the fair value hierarchy and is estimated based on quoted
market prices.

10.
Changes in Cash Flows from Operating Assets and Liabilities

The
changes to the Company’s operating assets and liabilities for the six months ended June 30, 2025 and 2024 are as follows:

Schedule of Changes in Operating Assets and Liabilities 

    2025  
    2024 
  
    Decrease (increase) in accounts
    receivable 
    $(253,372) 
    $(160,264)
  
    Decrease (increase) in other receivable 
     (58,358) 
     25,002 
  
    Decrease (increase) in inventory 
     (691,459) 
     (2,755,252) 
  
    Decrease (increase) in prepaid expenses
    and deposits 
     (470,641) 
     1,345,434 
  
    Increase (decrease)
    in accounts payable and accrued liabilities 
     469,362  
     115,586 
  
    Changes
    in operating assets and liabilities 
    $(1,004,468) 
    $(1,429,494)

11.
Investments

During
the six months ended June 30, 2025, $66,308 ($90,000 CAD) of the Company’s Guaranteed Investment Certificate (“GIC”) matured
and the Company received $2,500 ($3,604 CAD) in interest income. During the same period, the Company reinvested the principal amount of $66,308
($90,000 CAD) in a GIC. The GIC bears a variable interest rate and will mature on February 27, 2026. The anticipated earned interest on the GIC at maturity is $2,500 ($3,604 CAD). During the six
months ended June 30, 2025 the Company invested $56,373 ($77,000 CAD) in a second Guaranteed Investment Certificate (“GIC”)
bearing a variable interest rate and will mature on June 5, 2026. The anticipated earned interest on the GIC
at maturity is $1,270 ($1,730 CAD).

13

12.
Leases

During
the year ended December