Company: WKSP
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022113
Chunk: 20

Company: Worksport Ltd
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 20
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 of the short-term nature of these instruments. The Company’s revolving line of credit is based on a variable interest
rate and is reflected in the financial statements at carrying value which approximates fair value at September 30, 2025. The Company’s
long-term debt is based on a fixed interest rate, and its carrying amount approximates fair value at September 30, 2025. The fair value
of the revolving line of credit and long-term debt is classified as Level 2 within the fair value hierarchy and is estimated based on
quoted market prices.

10.
Changes in Cash Flows from Operating Assets and Liabilities

The
changes to the Company’s operating assets and liabilities for the nine months ended September 30, 2025 and 2024 are as follows:

Schedule of Changes in Operating Assets and Liabilities 

    2025  
    2024 
  
    Decrease (increase) in accounts receivable 
    $(472,485) 
    $(3,320)
  
    Decrease (increase) in other receivable 
     (39,974) 
     11,898 
  
    Decrease (increase) in inventory 
     (1,645,437) 
     (2,506,568)
  
    Decrease (increase) in prepaid expenses and deposits 
     (865,634) 
     1,240,649 
  
    Increase (decrease) in accounts payable and accrued liabilities 
     1,477,537  
     1,031,400 
  
    Changes
    in operating assets and liabilities 
    $(1,545,993) 
    $(225,941)

11.
Investments

During
the nine months ended September 30, 2025, $66,308 of
the Company’s Guaranteed Investment Certificate (“GIC”) matured and the Company received $2,500 in
interest income. During the same period, the Company reinvested the principal amount of $66,308 in
a GIC. The GIC bears a variable interest rate and will mature on February 27, 2026. The anticipated earned interest on the GIC at
maturity is $2,500.
During the nine months ended September 30, 2025, the Company invested $56,373 in
a second Guaranteed Investment Certificate (“GIC”) bearing a variable interest rate and will mature on June 5, 2026. The
anticipated earned