Company: WKSP
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022113
Chunk: 49

Company: Worksport Ltd
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 49
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 Through November 13, 2025, the Company received additional net proceeds of $2,623,212 from offerings. Management is
focused on transitioning towards gross profit as our principal source of liquidity by growing our existing product offerings and
customer base and realizing manufacturing efficiency improvements. We cannot give assurance that we can increase our cash balances
or limit our cash consumption and thus maintain sufficient cash balances for our planned operations or future business developments.
Future business development and demands may lead to cash utilization at levels greater than recently experienced. We may need to
raise additional capital in the future. However, we cannot ensure that we will be able to raise additional capital on acceptable
terms, or at all. Subject to the foregoing, we believe our current cash balances coupled with anticipated cash flow from operating
activities will be sufficient to meet our working capital requirements for at least one year from the date of issuance of the
accompanying consolidated financial statements.

28

We
have raised significant funds during the nine months ended September 30, 2025 per the following public and private offerings:

Warrant
Inducement

On
February 27, 2025, we entered into a common stock warrant exercise inducement offer letter (the “Inducement Letter”) with
a certain holder (the “Holder”) of existing warrants to purchase shares of our common stock at an exercise price of $5.198
per share, issued on May 29, 2024 (the “Existing Warrants”), pursuant to which the Holder agreed to exercise for cash its
Existing Warrants to purchase an aggregate of 1,295,000 shares of the Company’s common stock at $5.198 per share, in consideration
for the Company’s agreement to issue new warrants (the “Inducement Warrants”) having terms as described below, to purchase
up to 1,424,500 shares of the Company’s common stock (the “Inducement Warrant Shares”). We received aggregate gross
proceeds of $6,731,410 from the exercise of the Existing Warrants by the Holder and the sale of the Inducement Warrants,
before deducting placement agent fees and other offering expenses of $346,570. We engaged Maxim Group LLC (“Maxim”) to
act as our exclusive financial advisor in connection with the transactions summarized above and will pay Maxim a cash fee from the gross
proceeds received from the exercise of the Existing Warrants. Each Inducement Warrant has an exercise price equal