Company: WKSP
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010837
Chunk: 9

Company: Worksport Ltd
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 9
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ly, the Company intends to continue
its ramp-up of manufacturing and increasing sales volumes in 2025, which should mitigate the effects of operational costs on cash
and cash equivalents as it releases new product lines; this view is supported by the fact that the manufacturing facility of the
Company was completed for initial production output in 2023 and quickly began improving output and sales during 2024 and into 2025.

The
Company has successfully raised cash, and it is positioned to do so again if deemed necessary or strategically advantageous. During
the year ended December 31, 2021, the Company, through its Reg-A public offering, private placement offering, underwritten public
offering, and exercises of warrants, raised an aggregate of approximately $32,500,000.
On September 30, 2022, the Company filed a shelf registration statement on Form S-3, which was declared effective by the SEC on
October 13, 2022, allowing the Company to issue up to $30,000,000 of
common stock and prospectus supplement covering the offering, issuance and sale of up to $13,000,000 of
common stock that may be issued and sold under an At The Market Offering Agreement dated September 30, 2022 (“ATM
Agreement”), with H.C. Wainwright & Co., LLC, as the sales agent (“HCW”). Pursuant to the ATM Agreement, HCW
is entitled to a commission equal to 3.0%
of the gross sales price of the shares of common stock sold. Through March 31, 2025, the Company has sold and issued 784,133 shares
of common stock in consideration for net proceeds of $6,432,971
under the ATM Agreement.

On
November 2, 2023, the Company consummated a registered direct offering pursuant to which the Company issued 192,500
shares of common stock and 157,500
pre-funded warrants to an institutional investor for a total
net proceeds of $4,261,542.
Concurrently with the registered direct offering, the Company issued the same institutional investor 700,000 warrants in a private sale.
The warrants are exercisable for 700,000
shares of common stock for $13.40
per share six months after issuance and until five and a half
years5.5
from the issuance date, subject to beneficial ownership limitations
as described in the warrants. The Company registered the 700