Company: WKSP
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023334
Chunk: 20

Company: Worksport Ltd
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 20
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30, 2025, loss per share is $0.71 and $1.71 (basic and diluted) compared to the three and six months
ended June 30, 2024, of $1.55 and $3.28 (basic and diluted) using the weighted average number of shares of 5,285,705 and 4,778,426 (basic and diluted)
as of June 30, 2025 and 2,595,863 and 2,357,335 (basic and diluted) as of June 30, 2024, respectively.

    15

There
are 45,000,000 shares authorized with 5,519,130 and 2,852,070 shares issued and outstanding, as at June 30, 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. 

15.
Warrants 

On
February 27, 2025, the Company entered into a warrant inducement agreement (the “Inducement”) with the holder of existing
warrants to purchase an aggregate 1,295,000 shares. Pursuant to the Inducement, the exercising holder of the existing warrants received
1,425,000 inducement warrants and the Company received $6,731,000 from the exercise of the existing warrants. As a result of the inducement
and subsequent exercise, the Company determined the incremental fair value provided to the holder from the inducement warrants issued
using the Black Scholes model. The total incremental fair value of $7,602,000, is recorded as a non-cash deemed dividend. The proceeds
of the warrant inducement and issuance of 1,295,000 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