Company: WKSP
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023334
Chunk: 12

Company: Worksport Ltd
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 12
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 524,476 
  
    Warehouse equipment 
     522,128  
     512,700 
  
    Electrical equipment 
     185,261  
     185,261 
  
    Automobile 
     242,642  
     172,645 
  
    Furniture 
     140,458  
     154,065 
  
    Computers 
     98,594  
     114,786 
  
    Property and equipment, at cost 
     16,946,096  
     16,676,251 
  
    Less: Accumulated depreciation 
     (3,727,975) 
     (3,032,025)
  
    Property and equipment,
    net 
    $13,218,121  
    $13,644,226 

Depreciation
expense for the three months ended June 30, 2025 and 2024 was $347,443
and $232,199,
respectively. Depreciation expense for the six months ended June 30, 2025 and 2024 was $695,950
and $614,719,
respectively.

5.
Intangible Assets

Intangible
assets consist of costs incurred to establish the patent rights related to the quick latch and soft vinyl quad-fold tonneau cover technologies,
Worksport trademarks, licenses, and software costs. The Company’s utility patents and design registrations were issued between
2014 and 2025. The patents and software are amortized on a straight-line basis over their useful life. The Company’s trademark,
licenses, and other indefinite life intangible assets are reassessed every year for impairment. The Company determined that impairment
is not necessary for the prior year ended December 31, 2024 and for the three and six months ended June 30, 2025.

The
components of intangible assets are as follows:

Schedule of Components of Intangible Assets 

    June
    30, 2025  
    December
    31, 2024 
  
    Software 
    $1,150,000 
    $1,150,000 
  
    License 
     218,329  
     103,329 
  
    Patent 
     62,706  
     62,706 
  
    Trademark 
     5,150  
     5,150 
  
    Other 
     171,030  
     29,