Company: WKSP
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000850
Chunk: 154

Company: Worksport Ltd
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 154
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 of the income statement. ASU 2024-03 is effective beginning
after December 15, 2026, and for interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted.
The Company is currently evaluating the potential effect that the updated standard will have on the financial statements and related
disclosures.

The
Company considers the applicability and impact of all ASUs. ASUs not listed were assessed and determined to be either not applicable
or had or are expected to have an immaterial impact on the financial statements and related disclosures.

    51

Worksport
Ltd.

Notes
to the Consolidated Financial Statements

December
31, 2024 and 2023

2.
Going Concern

As
of December 31, 2024, the Company had $4,883,099
in cash and cash equivalents. The Company also has availability on its revolving line of credit of $892,000. The Company has
generated only limited revenues and has relied primarily upon capital generated from public and private offerings of its securities.
Since the Company’s acquisition of Worksport in  2014, it has never generated a profit. As of December 31, 2024,
the Company had an accumulated deficit of $64,476,966.

The
accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates
the realization of assets and the liquidation of liabilities in the normal course of business. During the year ended December 31, 2024,
the Company had net losses of $16,163,789 (2023 - $14,928,958). As of December 31, 2024, the Company had working capital of $7,304,110
(2023 – $1,956,894) and had an accumulated deficit of $64,476,966 (2023 - $48,313,177). The Company has not generated profit from
operations since inception and to date has relied on debt and equity financing for continued operations. The Company’s ability
to continue as a going concern is dependent upon the ability to generate cash flows from operations and obtain equity and/or debt financing.
The Company intends to continue funding operations through equity and debt financing arrangements, which may be insufficient to fund
its capital expenditures, working capital and other cash requirements in the long term. There can be no assurance that the steps management
is taking will be successful.

The
Company has