Company: WKSP
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023334
Chunk: 122

Company: Worksport Ltd
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 4
Chunk 122
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 our internal control over financial reporting.

30

PART
II OTHER INFORMATION

Item
1. Legal Proceedings

From
time to time, we are involved in lawsuits, claims, investigations, and proceedings, including pending opposition proceedings involving
patents that arise in the ordinary course of business. We are not presently a party to any material pending or threatened legal proceedings,
nor do we have any knowledge of any such pending claims.

Item
1A. Risk Factors

In
addition to the other information set forth in this Quarterly Report, you should carefully consider the factors discussed in Part I,
“Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024, which could materially affect
our business, financial condition, liquidity, or future results. The risks described in our Annual Report on Form 10-K are not the only
risks facing our Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also
may materially adversely affect our business, financial condition, liquidity or future results.

Item
2. Unregistered Sales of Equity Securities and Use of Proceeds

(a)
Recent Sales of Unregistered Securities

    ●
    On June 13, 2025, Worksport completed the initial closing of its Regulation
A offering of up to 3,100,000 units, each consisting of one share of the Company’s 8% Series C Convertible Preferred Stock, and
one warrant to purchase one share of the Company’s common stock. The Offering is being conducted pursuant to the Company’s
Offering Statement on Form 1-A, as amended, which was qualified by the U.S. Securities and Exchange Commission on May 27, 2025. In connection
with the initial closing, the Company issued an aggregate of 49,335 Units to investors that were placed by Digital Offering LLC, the Company’s
placement agent, for aggregate gross proceeds of $160,338.75. After deducting Placement Agent commissions and offering-related expenses
of $11,223.71, the Company received net proceeds of $149,115.04. The issuance of the securities was made pursuant to the exemption from
registration provided under Section 3(b)(2) of the Securities Act and Regulation A.

(b)
Use of Proceeds

Not
applicable.

(c)
Purchases of Equity Securities by the Issuer and Affiliated Purchasers

None.

Item
3. Defaults Upon Senior