Company: WKSP
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010837
Chunk: 48

Company: Worksport Ltd
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 48
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 their warrants at a reduced exercise
price of $0.5198 per warrant. In turn for doing so, Worksport offered the shareholder new warrants to purchase up to 1,295,000 warrant
shares with an exercise price of $0.5198. The shares had a term of 5.5 years, with a 6-month required holding period.

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.

    8

On
February 27, 2025, Worksport entered into a warrant inducement agreement with a shareholder to exercise 755,558 of their 1,295,000 May
2024 Warrants at price of $5.198 per
share. The remaining unexercised 539,442 warrants are included in share subscription payable. In return, the Company issued 1,424,500 new
2025 Inducement Warrants. Each Inducement Warrant has an exercise price of $6.502,
will become exercisable six months after issuance, and have a 5.5-year
life. Worksport raised approximately $6,731,000 in
gross proceeds before fees and expenses, with the funds earmarked for general corporate and working capital purposes.

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