Company: WKSP
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000850
Chunk: 417

Company: Worksport Ltd
Filing Date: 2025-03-27
Form: 10-K
Item: Item 7A
Chunk 417
---
 Net
    cash provided by financing activities 
     12,184,354  
     4,431,965 

    Change in cash 
     1,517,321  
     (11,254,979)
  
    Cash
    and cash equivalents - beginning of year 
     3,365,778  
     14,620,757 
  
    Cash
    and cash equivalents end of year 
    $4,883,099  
    $3,365,778 
  
    Supplemental disclosure
    of non-cash activities 

    Shares issued for purchase of intangible assets 
    $-  
    $72,466 
  
    Supplemental
    disclosure of cash flow information 

    Income tax paid 
    $-  
    $- 
  
    Interest paid 
    $669,000  
    $626,000 

See
accompanying Notes to Consolidated Financial Statements.

48

Worksport
Ltd.

Notes
to the Consolidated Financial Statements

December
31, 2024 and 2023

1.
Description of Business and Significant Accounting Policies

The
Company’s corporate history and business overview are described in detail in our most recent registration statement on Form S-1,
filed with the SEC on July 3, 2024, which is incorporated herein by reference. For a description of material developments the Company
has undertaken since that time, see   Corporate History of Part I Item 1, Business of this report.

Basis
of presentation – The accompanying financial statements have been prepared in accordance with U.S. generally accepted accounting
principles (“GAAP”) as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standards
Codification (“ASC”).

Consolidation
– The Company’s consolidated financial statements consolidate the accounts of the Company. All intercompany transactions,
balances and unrealized gains or losses from intercompany transactions have been eliminated upon consolidation.

Foreign
currency translation and presentation – The consolidated financial statements are presented in United States Dollars. The functional
currency of the Company and all its subsidiaries is the United States Dollar. Transactions denominated in foreign currencies are initially
recorded in the functional currency using exchange rates in effect at the dates of the transactions. Monetary assets and liabilities
denominated in foreign currencies are translated into the functional currency using exchange rates in effect at the dates of the transactions.
All exchange gains and losses are included in the statement of operations