Company: WKSP
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000850
Chunk: 506

Company: Worksport Ltd
Filing Date: 2025-03-27
Form: 10-K
Item: Item 8
Chunk 506
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770,026 shares of common stock for $7.40 per share six
months after issuance until five and a half years from the issuance date, subject to beneficial ownership limitations as described in
the warrants. The Company registered the 770,026 shares of common stock underlying the warrants on a Form S-1 (333-278461) which was
declared effective by the SEC on April 8, 2024.

On
December 13, 2024, the Company filed a Prospectus Supplement to amend Amendment No. 1 to the prospectus supplement dated as of November
5, 2024, prospectus supplement dated as of October 13, 2022, and the prospectus dated as of October 13, 2022 to increase the maximum
amount of shares that we are eligible to sell pursuant to the Sales Agreement under General Instruction I.B.6. to $4,962,092 of shares
of our common stock not including whatever had been sold prior to this filing date.

To
date, the Company’s principal sources of liquidity consist of net proceeds from public and private securities offerings and cash
exercises of outstanding warrants. Management is focused on transitioning towards revenue as its principal source of liquidity by growing
existing product offerings as well as the Company’s customer base. The Company cannot give assurance that it can increase its cash
balances or limit its cash consumption and thus maintain sufficient cash balances for planned operations or future business developments.
Future business development and demands may lead to cash utilization at levels greater than recently experienced. The Company may need
to raise additional capital in the future. However, the Company cannot provide assurances it will be able to raise additional capital
on acceptable terms, or at all.

The
Company has evaluated whether there are conditions and events, considered in the aggregate, that raise substantial doubt about the Company’s
ability to continue as a going concern within one year after the date the financial statements are issued. Still, certain factors indicate
the existence of a material uncertainty that cast substantial doubt about the Company’s ability to continue as a going concern.
The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty. These adjustments
could be material.

    52

Worksport
Ltd.

Notes
to the Consolidated Financial Statements

December
31, 2024 and 2023

3.
Inventories

Inventory
consists of the following at December 31, 2024 and 2023:

Schedule of Inventory