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

Company: Worksport Ltd
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 10
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 ASU 2024-03 is effective for annual
periods beginning after December 15, 2026, and for interim periods within fiscal years beginning after December 15, 2027, with early
adoption permitted. The Company is currently evaluating the potential effect that the updated standard will have on the financial statements
and related disclosures.

The
company considers the applicability and impact of all ASUs. ASUs not listed were assessed and determined to be either not applicable
or had or are expected to have an immaterial impact on the financial statements and related disclosures.

    8

2.
Going Concern

As
of September 30, 2025, the Company had $3,761,690
in cash and cash equivalents. The Company also has availability
on its revolving line of credit of $3,291,250.
The Company has generated only limited revenues and has relied primarily upon capital generated from public and private offerings of
its securities. Since the Company’s acquisition of Worksport in 2014, it has never generated a profit. As of September 30, 2025,
the Company had an accumulated deficit of $77,617,726.

The accompanying unaudited condensed
consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates
the realization of assets and the liquidation of liabilities in the normal course of business. During the three months ended
September 30, 2025, the Company had net losses of $4,928,679
(2024 - $4,134,917).
During the nine months ended September 30, 2025, the Company had net losses of $13,123,627
(2024 - $11,862,973). As
of September 30, 2025, the Company had working capital of $6,311,857
(December 31, 2024 – $7,304,110)
and had an accumulated deficit of $77,617,726
(December 31, 2024 - $64,476,966).
The Company has not generated profit from operations since inception and to date has relied on debt and equity financing for
continued operations. The Company’s ability to continue as a going concern is dependent upon the ability to generate cash
flows from operations and obtain equity and/or debt financing. The Company intends to continue funding operations through equity and
debt financing arrangements, which may be insufficient to fund its capital