Company: WKSP
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000850
Chunk: 256

Company: Worksport Ltd
Filing Date: 2025-03-27
Form: 10-K
Item: Item 4
Chunk 256
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001. All shares were ranked equally with regards to the Company’s residual assets. During 2024 and 2023, the Company was
authorized to issue 10 shares of its Series A and 10,000 of its Series B Preferred Stock with a par value of $0.001. Series A Preferred
Stock have voting rights equal to 30 shares of common stock, per share of Preferred Stock. Series B Preferred Stock have voting rights
equal to 1,000 shares of common stock, per share of Preferred Stock.

8.
Income Taxes

a)
The income tax expense for the years ended December 31, 2024 and 2023 is reconciled per the schedule below:

 Schedule of Reconciliation of Income Tax

    2024  
    2023 
  
    Loss before income taxes 

    Domestic 
    $(10,319,000) 
    $(11,405,000)
  
    Foreign 
     (5,845,000) 
     (3,524,000)
  
    Total 
     (16,164,000) 
     (14,929,000)
  
    Federal statutory income tax rate  
     21.0% 
     21.0%
  
    State taxes, net of federal benefits 
     (0.7)% 
     (0.2)%
  
    Share based compensation 
     1.3% 
     0.9%
  
    Limitation on depreciation and amortization deduction 
     0.9% 
     0.4%
  
    Capitalized research and development expenditures 
     0.4% 
     0.4%
  
    Other 
     -  
     (0.1)%
  
    Effective income tax rate 
     22.9% 
     22.3%
  
    Income tax benefit 
     (3,383,000) 
     (2,606,000)
  
    Estimated research and development credit 
     (90,000) 
     (90,000)
  
    Increase in valuation allowance 
     3,473,000  
     2,696,000 
  
    Provision for income taxes 
    $-  
    $- 

    55

Worksport
Ltd.

Notes
to the Consolidated Financial Statements

December
31, 2024 and 2023

8.
Income Taxes (continued)