Company: WKSP
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022113
Chunk: 29

Company: Worksport Ltd
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 29
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 schedule that correlates with the Company’s
stock price. The first 5% of the PSUs vest upon the Company’s stock price closing at $22.50, 50% will have vested at a closing
price of $53.10, and 100% will have vested at a closing price of $137.60 as measured using the volume weighted average of the Company’s
common stock for ten (10) consecutive trading days, with over $100,000 of trading volume on each of those days. The fair value of the
PSUs was estimated to be $1,254,460. As of September 30, 2025, 7,500 PSUs of the remaining 30,000 PSUs had vested.

On
December 29, 2021, the Company granted 40,000 and 30,000 PSUs to the Company’s Chief Executive Officer and a director, respectively.
The PSUs were to vest in 5% increments according to a schedule that correlates with the Company’s stock price. The first 5% of
the PSUs was to have vested upon the Company’s stock price closing at $30.00, 50% was to have vested at a closing price of $165.00,
and 100% was to have vested at a closing price of $315.00. The fair value of the PSUs was estimated to be $1,344,570.

Stock
Options

The
Company uses the Black-Scholes option pricing model to determine fair value of stock options on the grant date.

During
the nine months ended September 30, 2025, the Company issued the following stock options to various directors:

  -
  10,000
stock options vesting ratably over two years, with an exercise price of $5.95
and an expiration date of March
7, 2035

  -
  14,000 stock options vesting ratably over two years, with an exercise price of $3.09 and an expiration date of April
4, 2035

  -
  30,000 stock options vesting ratably over two years, with an exercise price of $3.80 and an expiration date of July
12, 2035

  -
  50,000 stock options vesting pursuant to a performance milestone and an expiration date of July 12, 2035

During
the nine months ended September 30, 2025, the