Company: WKSP
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022113
Chunk: 14

Company: Worksport Ltd
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 14
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 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 there are conditions and events, considered in the aggregate, that raise substantial doubt about the
Company’s ability to continue as a going concern within one year after the date the financial statements are issued. Still,
certain factors indicate the existence of a material uncertainty that cast substantial doubt about the Company’s ability to
continue as a going concern. The accompanying unaudited condensed consolidated financial statements do not include any adjustments
that might result from the outcome of this uncertainty. These adjustments could be material.

3.
Inventory

As
of September 30, 2025 and December 31, 2024, inventory consists of the following:

Schedule of Inventory 

    September 30, 2025  
    December 31, 2024 
  
    Raw materials 
    $4,138,808  
    $3,373,704 
  
    Finished goods 
     1,988,117  
     1,343,006 
  
    Work in progress 
     708,566  
     473,344 
  
    Inventories, net 
    $6,835,491  
    $5,190,054 

    10

4.
Property and Equipment

Property
and equipment consist of:

Schedule of Property and Equipment 

    September 30, 2025  
    December 31, 2024 
  
    Building 
    $6,079,410  
    $6,079,410 
  
    Manufacturing equipment 
     6,390,593  
     5,830,999 
  
    Land 
     2,239,405  
     2,239,405 
  
    Leasehold improvements 
     873,759  
     862,504 
  
    Product molds