Company: WKSP
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022113
Chunk: 110

Company: Worksport Ltd
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 2
Chunk 110
---
 regulatory actions, to analyze impacts to our operations. The extent and duration of tariffs remain uncertain and
will depend on a variety of factors outside of our control. We remain committed to optimizing our operations, including managing our
supply chain to minimize the impact of tariffs on our results of operations.

24

Business
Developments

The
following highlights recent material developments in our business in the three months ended September 30, 2025:

    ●
    On
    July 16, 2025, Worksport announced that the AetherLux Pro heat pump with high-performance Zerofrost technology – a product
    of its subsidiary, Terravis Energy - had received the attention of multi-billion dollar corporations and U.S. government entities,
    with site visits and due diligence underway.

    ●
    On
    July 16, 2025, Worksport announced it doubled its R&D footprint by beginning a new lease at a larger R&D facility in Ozark,
    Missouri for the development of upcoming product lines.

    ●
    On
    August 5, 2025, Worksport announced its strongest 4-week production run since beginning domestic production.

    ●
    On
    August 7, 2025, Worksport announced that it had doubled its Bitcoin holdings and invested in additional manufacturing machinery
    to double its production output.

    ●
    On
    September 30, 2025, Worksport announced a 42% increase in national dealer partnerships over the preceding quarter. 

CRITICAL
ACCOUNTING POLICIES

The SEC defines critical accounting policies as those
that are, in management’s view, most important to the portrayal of our financial condition and results of operations and those that
require significant judgments and estimates. The accounting principles we utilized in preparing our unaudited condensed consolidated financial
statements conform in all material respects to Generally Accepted Accounting Principles in the U.S., or U.S. GAAP.

On
a regular basis, we evaluate the critical accounting policies used to prepare our consolidated financial statements, including revenue
recognition, inventory valuation, reviews for impairment of long-lived assets, and income taxes.

RECENT
ACCOUNTING PRONOUNCEMENTS

See
Note 1, Description of Business and Significant Accounting Policies included in Item 1, Financial Statements of this report for further
information regarding Financial Accounting Standards Board issued Accounting Standards Updates.

CONSOLIDATED
RESULTS OF OPERATIONS

Three
Months Ended September 30, 2025 compared to the Three Months