Company: WKSP
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000850
Chunk: 36

Company: Worksport Ltd
Filing Date: 2025-03-27
Form: 10-K
Item: Item 8
Chunk 36
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 2022, 40,000 and 30,000 PSUs granted on December 29, 2021, as described below, were modified to include new terms pertaining
to the PSU vesting schedule. The PSUs vest in 5% increments according to the modified schedule that correlates with the Company’s
stock price. The first 5% of the PSUs vest upon the Company’s stock price closing at $22.50, 50% will have vested at a closing
price of $53.10, and 100% will have vested at a closing price of $137.60 as measured using the volume weighted average of the Company’s
common stock for ten (10) consecutive trading days, with over $100,000 of trading volume on each of those days. The fair value of the
PSUs was estimated to be $1,254,460. As of December 31, 2024, 7,500 PSUs of the remaining 30,000 PSUs had vested, and the Company recognized
$107,525 (2023 - $155,314) in consulting expenses.

On
December 29, 2021, the Company granted 40,000 and 30,000 PSUs to the Company’s Chief Executive Officer and a director, respectively.
The PSUs were to vest in 5% increments according to a schedule that correlates with the Company’s stock price. The first 5% of
the PSUs was to have vested upon the Company’s stock price closing at $30.00, 50% was to have vested at a closing price of $165.00,
and 100% was to have vested at a closing price of $315.00. The fair value of the PSUs was estimated to be $1,344,570.

Stock
Options

The
Company uses the Black-Scholes option pricing model to determine fair value of stock options on the grant date.

On
July 23, 2024, the Company engaged in stock option repricing for certain employees, executive officers, and members of the board of directors
of the Company. 538,896 stock options’ exercise prices were repriced to $7.042, and all other criteria were unchanged. As a result
of the modification in exercise prices, the Company recognized additional expense of $93,140 on the date of modification.

During
the year ended December 31, 2024, the Company issued 84,860 stock options to