Company: WKSP
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010837
Chunk: 19

Company: Worksport Ltd
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 19
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    b)
    On
                                            September 4, 2024, the Company, through its wholly owned subsidiary, Worksport USA Operations
                                            Corporation, entered into a $1,487,200 credit and security agreement with an external lending
                                            entity with a maturity date of September 1, 2027, which is 36 months from initial funding.
                                            Upon transaction close, the Company received net proceeds of $1,412,750 (net of issuance
                                            costs of $43,735). The Company and its wholly owned subsidiary, Worksport New York Operations
                                            Corporation, serve as guarantors on the loan. For collateral, the lender holds a first position
                                            on the Company’s equipment, which is primarily manufacturing and warehousing equipment.

14.
Loss per Share

For
the three months ended March 31, 2025, loss per share is $1.05 (basic and diluted) compared to that of the three months ended March
31, 2024, of $1.75
(basic and diluted) using the weighted average number of shares of 4,262,474 (basic and diluted) and 2,118,807
(basic and diluted), respectively.

There
are 29,900,000 shares authorized with 4,795,521 and 2,410,020 shares issued and outstanding, at March 31, 2025 and 2024, respectively. The
computation of loss per share is based on the weighted average number of shares outstanding during the period in accordance with ASC
Topic No. 260, “Earnings Per Share.” Shares underlying the Company’s outstanding warrants and convertible promissory
notes were excluded due to the anti-dilutive effect they would have on the computation. As of March 31, 2025, the Company has 2,414,526
warrants convertible to 2,444,526 common shares, 115,713 restricted stock to be issued, and 201,824 stock options
exercisable for 201,824 common shares for a total underlying common shares of 2,762,063. As of March 31, 2024, the Company has
2,011,808 warrants convertible to 2,041,808 common shares, 35,702 restricted stock to be issued, and 513,266 stock options exercisable
for 513,266 common shares for a total underlying common shares of 2,590,775.