Company: WKSP
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010837
Chunk: 11

Company: Worksport Ltd
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 11
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share. The remaining unexercised 539,442 warrants are included in share subscription payable. In return, the Company issued 1,424,500 new
2025 Inducement Warrants. Each Inducement Warrant has an exercise price of $6.502,
will become exercisable six months after issuance, and have a 5.5-year
life. Worksport raised approximately $6,731,000 in
gross proceeds before fees and expenses, with the funds earmarked for general corporate and working capital purposes.

To
date, the Company’s principal sources of liquidity consist of net proceeds from public and private securities offerings and cash
exercises of outstanding warrants. Management is focused on transitioning towards revenue as its principal source of liquidity by growing
existing product offerings as well as the Company’s customer base. The Company cannot give assurance that it can increase its cash
balances or limit its cash consumption and thus maintain sufficient cash balances for planned operations or future business developments.
Future business development and demands may lead to cash utilization at levels greater than recently experienced. The Company may need
to raise additional capital in the future. However, the Company cannot provide assurances it will be able to raise additional capital
on acceptable terms, or at all.

The
Company has evaluated whether there are conditions and events, considered in the aggregate, that raise substantial doubt about the Company’s
ability to continue as a going concern within one year after the date the financial statements are issued. Still, certain factors indicate
the existence of a material uncertainty that cast substantial doubt about the Company’s ability to continue as a going concern.
The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty. These adjustments
could be material.

3.
Inventories

Inventories,
net of reserves, consists of:

Schedule of Inventory

    March 31, 2025  
    December 31, 2024 
  
    Raw materials 
    $3,462,797  
    $3,373,704 
  
    Finished goods 
     1,627,295  
     1,343,006 
  
    Work in progress 
     635,500  
     473,344 
  
    Inventories, net 
    $5,725,592  
    $5,190,054 

4.
Property and Equipment

Property
and equipment consist of:

Schedule of Property and Equipment

    March 31, 2025