Company: WKSP
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000850
Chunk: 161

Company: Worksport Ltd
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 161
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2023, the restricted shares have not been issued. During the same period, the Company issued 25,000 shares of common
stock for consulting services valued at $635,000.

During
the year ended December 31, 2023, the Company closed a sale of 192,500 shares of common stock for $2,579,500. The Company incurred share
issuance expense of $428,300. In association with the sale of common shares, the Company also issued 157,500 pre-funded warrants and
700,000 warrants.

For
the years ended December 31, 2024 and 2023, the Company was authorized to issue 29,900,000 shares of its common stock with a par value
of $0.001. All shares were ranked equally with regards to the Company’s residual assets. During 2024 and 2023, the Company was
authorized to issue 10 shares of its Series A and 10,000 of its Series B Preferred Stock with a par value of $0.001. Series A Preferred
Stock have voting rights equal to 30 shares of common stock, per share of Preferred Stock. Series B Preferred Stock have voting rights
equal to 1,000 shares of common stock, per share of Preferred Stock.

8.
Income Taxes

a)
The income tax expense for the years ended December 31, 2024 and 2023 is reconciled per the schedule below:

 Schedule of Reconciliation of Income Tax

    2024  
    2023 
  
    Loss before income taxes 

    Domestic 
    $(10,319,000) 
    $(11,405,000)
  
    Foreign 
     (5,845,000) 
     (3,524,000)
  
    Total 
     (16,164,000) 
     (14,929,000)
  
    Federal statutory income tax rate  
     21.0% 
     21.0%
  
    State taxes, net of federal benefits 
     (0.7)% 
     (0.2)%
  
    Share based compensation 
     1.3% 
     0.9%
  
    Limitation on depreciation and amortization deduction 
     0.9% 
     0.4%
  
    Capitalized research and development expenditures 
     0.4% 
     0.4%
  
    Other