Company: WKSP
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022113
Chunk: 48

Company: Worksport Ltd
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 48
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 sales in future periods.

Liquidity
and Capital Resources

As
of September 30, 2025 and December 31, 2024, we had $3,761,690 and $4,883,099, respectively in cash and cash equivalents. As of
September 30, 2025, we had $3,291,250 of remaining available capacity on our revolving line of credit compared with $811,400 of
remaining available capacity as of December 31, 2024. The decrease in cash and cash equivalents and increase in the remaining
available capacity on our revolving line of credit was primarily a result of the use of cash flows from operations to reduce our
indebtedness. We have historically generated only limited gross profit and have relied primarily upon capital generated from public
and private offerings of our securities to fund continuing operations. Since the Company’s acquisition of Worksport in 2014,
it has never generated a profit. During the three and nine months ended September 30, 2025, we had net losses of $4,928,679 and
$13,123,627, respectively (three months ended September 30, 2024 - $4,134,917; nine months ended September 30, 2024 - $11,862,973).
As of September 30, 2025, the Company had working capital of $6,311,857 (As of December 31, 2024 - $7,304,110) and had an
accumulated deficit of $77,617,726 (as of December 31, 2024 - $64,476,966).

In
their fiscal 2024 audit report, our independent auditors expressed that there is substantial doubt as to our ability to continue as a
going concern. Our ability to continue as a going concern is dependent upon our ability to generate cash flows from operations and obtain
equity and/or debt financing. We intend to continue funding operations through equity and debt financing arrangements, which may be insufficient
to fund our capital expenditures, working capital and other cash requirements in the long term. There can be no assurance that the steps
our management is taking will be successful.

To
date, our principal sources of liquidity consist of net proceeds from public and private securities offerings and cash exercises of
outstanding warrants. During the nine months ended September 30, 2025, the Company received net proceeds of $13,358,414 from
offerings.