Company: WKSP
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010837
Chunk: 72

Company: Worksport Ltd
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 72
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 warrant inducement agreement (the “Inducement”)
                                            with the holder of existing warrants to purchase an aggregate 1,295,000 shares at a revised
                                            price of $5.20 in consideration for the Company to issue new warrants to purchase up to 1,424,500
                                            additional shares of common stock at an exercise price of $6.502 each – resulting in
                                            gross proceeds of approximately $6,734,000 received by the Company.

●On
                                            March 18, 2025, Worksport effectuated a 1-for-10 reverse stock split of its common stock.
                                            The Company’s common stock continues to trade on the Nasdaq under the Company’s
                                            existing trading symbol, “WKSP”, and a new CUSIP number, 98139Q308, was assigned
                                            as a result of the reverse stock split.

●Through
                                            March 31, 2025, the Company has sold and issued 22,725 shares of common stock in consideration
                                            for net proceeds of $185,874 under the ATM Agreement.

CRITICAL
ACCOUNTING POLICIES

On
a regular basis, we evaluate the critical accounting policies used to prepare our consolidated financial statements, including revenue
recognition, inventory valuation, reviews for impairment of long-lived assets, and income taxes.

RECENT
ACCOUNTING PRONOUNCEMENTS

See
Note 1, Description of Business and Significant Accounting Policies included in Item 1, Financial Statements of this report for further
information regarding Financial Accounting Standards Board issued Accounting Standards Updates (“ASU”).

CONSOLIDATED
RESULTS OF OPERATIONS

Three
Months Ended March 31, 2025 compared to the Three Months Ended March 31, 2024

Net
sales

For
the three months ended March 31, 2025, net sales were $2,240,005, as compared to $512,637 for the three months ended March 31, 2024.
Year-over-year net sales increased by approximately 337%. For the three months ended March 31, 2025, net sales generated in U.S. was
$2,227,549, as compared to $474,654 for the same period in 2024, an increase of 369%. For the three months ended March 31, 2025,
revenue generated in Canada was $12,456, compared to $20,007 for the same period in 2024, a decrease