Company: WKSP
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010837
Chunk: 18

Company: Worksport Ltd
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 18
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-term
debt consists of:

Schedule of Long Term Debt

    March 31, 2025  
    December 31, 2024 
  
    Revolving Credit Facility (a) 
    $1,735,414  
    $3,808,025 
  
    Other (b) 
     1,404,991  
     1,456,485 
  
    Long-term debt 
     3,140,405  
     5,264,510 
  
    Less deferred debt issuance cost 
     (204,851) 
     (260,513)
  
    Less current installments 
     (227,056) 
     (222,992)
  
    Long-term debt 
    $2,708,497  
    $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. At March 31, 2025, the outstanding balance of this loan was $1,570,197 (net
                                            of issuance costs of $165,217).

    For collateral, the lender holds a first position on the
    Company’s major asset classes (accounts receivable, the factory in New York, and inventory) other than the Company’s
    equipment. A non-usage fee of 0.25% is assessed quarterly and applied to the difference between the quarter’s average daily
    outstanding loan balance and the total credit facility amount. As of March 31, 2025, the Company had an available balance of $2,858,700
    to borrow on the Revolving Credit Facility.