Company: WKSP
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022113
Chunk: 70

Company: Worksport Ltd
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 70
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: amount representing interest 
     (56,340)
  
    Present value of future payments 
     299,318 
  
    Current portion 
     110,202 
  
    Long term portion 
    $189,116 

13.
Indebtedness

Long-term
debt consists of:

Schedule of Long Term Debt 

    September 30, 2025  
    December 31, 2024 
  
    Revolving Credit Facility (a) 
    $1,586,032  
    $3,808,025 
  
    Other (b) 
     1,295,847  
     1,456,485 
  
    Long-term debt 
     2,881,879  
     5,264,510 
  
    Less deferred debt issuance cost 
     (93,529) 
     (260,513)
  
    Less current installments 
     (1,774,307) 
     (222,992)
  
    Long-term debt 
    $1,014,043  
    $4,781,005 

    a)
    On
    July 19, 2024, the Company, as the guarantor, and Worksport New York Operations Corporation as well as Worksport USA Operations Corporation,
    entered into a $6,000,000 Revolving Financing and Assignment Agreement with an external lending entity with a maturity date of July
    18, 2026, or 24 months. Upon transaction close, the Company drew down approximately $5.06 million of the Revolving Credit Facility,
    net of $790,000 of interest reserve required to be withheld to ensure interest payments by the Company. The Company used $4.73 million
    of the drawn down amount to refinance the Company’s mortgage on the Company’s real property located at 2500 North America
    Dr. in West Seneca, New York, and additionally drew approximately $330,000 to fund operations. Interest on the outstanding Revolving
    Credit Facility is based on the greater of the prime rate or 6.0% plus an additional 300 basis points. At September 30, 2025, the
    outstanding balance of this loan was $1,523,937 (net of issuance costs of $62,095).

For
collateral, the lender holds a first position on the Company’s major asset classes (accounts receivable, the factory in