Company: WKSP
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022113
Chunk: 99

Company: Worksport Ltd
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 99
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 by $1,477,537 compared to an increase of $1,031,400 at September 30,
2024. The increase is primarily due to an increase in raw materials order volume.

29

Investing
Activities

Net
cash used in investing activities for the nine months ended September 30, 2025 was $1,067,257 compared to net cash used in investing
activities of $500,760 for the nine months ended September 30, 2024. The increase in investing activities was primarily attributable
to a deposit for a new piece of manufacturing equipment. The new manufacturing equipment will increase our production capacity and
support our sales forecast. We expect the production equipment to be delivered and installed in the first half of 2026. Terms
of the commitment include consideration of $3 million payable 10% upon order placement, 20% due at time of shipment, 60% upon
completion of installation, net 180 days, and 10% upon completion of installation, net 365 days. We also purchased cryptocurrency
and completed website enhancements, both of which are classified as intangible assets on the unaudited condensed consolidated
balance sheet.

Financing
Activities

Net
cash provided by financing activities for the nine months ended September 30, 2025 was $11,136,030 compared to net cash provided by
financing activities of $6,951,879 for the nine months ended September 30, 2024. The increase in financing activities was primarily attributable to net proceeds from offerings offset by net
payments on our line of credit.

Off-Balance
Sheet Arrangements

We
did not have any material off-balance sheet arrangements that have or are reasonably likely to have a material future effect on our financial
condition, results of operations or cash flows.

Item
3. Quantitative and Qualitative Disclosures about Market Risk

As
a “smaller reporting company,” as defined by Rule 12b-2 of the Exchange Act, we are not required to provide the information
in this Item.

Item
4. Controls and Procedures

Disclosure
Controls and Procedures

We
carried out an evaluation, under the supervision and with the participation of our management, including our principal executive officer
and principal financial officer, of the effectiveness of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e)
and 15d-15(e)) as of the end of the period covered by this Quarterly Report on Form