Company: WKSP
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023334
Chunk: 65

Company: Worksport Ltd
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 8
Chunk 65
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,295,000 shares of common stock are recorded as additional paid-in capital.

During
the year ended December 31, 2024, in connection with the sale of 237,224 shares of common stock, the Company also sold 147,789 pre-funded
warrants and issued 770,026 warrants exercisable for a total of 770,026 shares of common stock for $0.001 and $7.40, respectively, per
share. The Company received net proceeds of $1,093,492 associated with the sale of the pre-funded warrants. The pre-funded warrants are
immediately exercisable until all of the pre-funded warrants are exercised. During the same period, 147,789 pre-funded warrants were
exercised for 147,789 shares of common stock for $150.

During
the year ended December 31, 2024, the Company closed a sale of 95,000 shares of common stock. In connection with the sale of common stock
the Company issued 190,000 warrants. The warrants have an exercise price of $4.00 and an expiration date of September 21, 2029.

During
the year ended December 31, 2024, 13,091 warrants issued on August 3, 2021, and 344,652 warrants issued on August 6, 2021, all of which
having an exercise price of $60.50, expired.

On
May 9, 2024, the Company entered into a warrant inducement agreement (the “Inducement”) with the holder of existing warrants
to purchase an aggregate 700,000 shares at a reduced exercise price of $5.198 in consideration for the Company to issue new warrants
to purchase up to 1,295,000 additional shares of common stock – resulting in gross proceeds of approximately $3,638,000 received
by the Company. As a result of the Inducement and subsequent exercise, the Company determined the incremental fair value provided to
the holder from both the adjustment in exercise price of the existing warrants and the fair value of the inducement warrants issued using
the Black Scholes model. The total incremental fair value of $4,996,000 is recorded as a non-cash deemed dividend. The proceeds of the
warrant inducement and issuance of 284,000 shares of common stock are recorded as capital in excess of par. The obligation to issue the
remaining 416,000 shares