Company: WKSP
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023334
Chunk: 89

Company: Worksport Ltd
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 8
Chunk 89
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 increased at June 30, 2025 by $691,459, and decreased at June
30, 2024 by $2,755,252, as a result of the maturation of the production process and shift in 2024 to hard tonneau cover production. Prepaid
expenses and deposits increased by $470,641 at June 30, 2025, and decreased by $1,345,434 at June 30, 2024 due to timing of deposits from
B2C customers prior to fulfillment of their orders at the end of the accounting period.

Accounts
payable and accrued liabilities increased at June 30, 2025 by $469,362 compared to an increase of $115,586 at June 30, 2024. The
increase is primarily due to an increase in accrued labor costs in 2025 compared with the prior period.

29

Investing
Activities

Net cash used in investing activities for the six months ended June 30,
2025 was $582,797 compared to $335,787 for the six months ended June 30, 2024. The increase in investing activities was primarily attributable
to our purchase of cryptocurrency and website enhancements, both of which are classified as intangible assets. We also acquired additional
tooling components for our COR production process.

Financing
Activities

Net cash provided by financing activities for the six months ended June
30, 2025 was $4,027,871 compared to net cash provided by financing activities of $6,817,390 for the six months ended June 30, 2024.

Off-Balance
Sheet Arrangements

We
did not have any material off-balance sheet arrangements that have or are reasonably likely to have a material future effect on our financial
condition, results of operations or cash flows.

Item
3. Quantitative and Qualitative Disclosures about Market Risk

As
a “smaller reporting company,” as defined by Rule 12b-2 of the Exchange Act, we are not required to provide the information
in this Item.

Item
4. Controls and Procedures

Disclosure
Controls and Procedures

We
carried out an evaluation, under the supervision and with the participation of our management, including our principal executive officer
and principal financial officer, of the effectiveness of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e)
and 15d-15(e)) as of the end of the period covered by this