Company: WKSP
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022113
Chunk: 98

Company: Worksport Ltd
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 98
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 purchase one (1) share of common stock, $0.001
par value with an exercise price of $4.50 per share. The qualified Regulation A offering is expected to generate gross proceeds of
$10,000,000, and the warrants have the potential to provide an additional $13,950,000 of additional proceeds if all are converted.
Through September 30, 2025, the Company completed twenty-four tranches and received net proceeds of $6,927,922, including $458,720
of share subscriptions receivable. On October 1, 2025, the Company received the share subscriptions receivable of $458,720.
Subsequent to September 30, the Company completed eight additional tranches and received net proceeds of $2,164,492.

Consolidated
Statement of Cash Flows

Cash
decreased from $4,883,099 at December 31, 2024, to $3,761,690 at September 30, 2025 – a decrease of $1,121,409 or 23%.
The decrease was primarily due to repayments on debt obligations.

Operating
Activities

Net
cash used in operating activities for the nine months ended September 30, 2025 was $11,190,182, compared to $7,959,212 in 2024, primarily
driven by the shift to production and distribution of hard tonneau covers.

Accounts
receivable increased at September 30, 2025 by $472,485 and increased at September 30, 2024 by $3,320. The
increase in accounts receivable was due to further development of our business-to-business sales channel, specifically our
Distributor and Jobber customer network and relationships.

Inventory
increased at September 30, 2025 by $1,645,437, and increased at September 30, 2024 by $2,506,568, as a result of the maturation of the
production process and shift in 2024 to hard tonneau cover production.

Prepaid
expenses and deposits increased by $865,634 at September 30, 2025, and decreased by $1,240,649 at September 30, 2024, primarily
attributable to payments for future strategic marketing, including planned public relations campaigns, and deposits for raw
materials required to support planned production requirements. 

Accounts
payable and accrued liabilities increased at September 30, 2025