Company: WKSP
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022113
Chunk: 65

Company: Worksport Ltd
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 65
---
 Series C preferred stock ranks senior to common stock and future classes or series of
                                                                                                                                                preferred stock as to dividend and liquidation rights. Series C preferred shareholders may convert holdings on a 1:1 basis to common
                                                                                                                                                stock at any time. Series C preferred shareholders are entitled to cumulative dividends at a rate of 8.00% of the $3.25 liquidation
                                                                                                                                                preference per share per year for a period of two (2) years from the date of issuance. As of September 30, 2025, the Company
                                                                                                                                                issued 2,349,202
                                                                                                                                                shares of Series C preferred stock and converted 1,977,418
                                                                                                                                                Series C preferred shares to common stock at the shareholder’s request. The Company recognized dividends payable to Series C
                                                                                                                                                preferred shareholders for the three months ended September 30, 2025 of $17,132.

During
the nine months ended September 30, 2025, the following transactions occurred:

During
the nine months ended September 30, 2025, the Company sold 110,619
shares of common stock for total net proceeds of $504,372.
The sale of shares was in connection with the Shelf Registration Statement and the ATM Agreement described in Note 2, Going Concern.

The
Company recognized consulting expense of $13,000
and marketing expense of $97,250 to share subscriptions payable from restricted shares and stock options to be issued. As of
September 30, 2025, the $110,250
of the restricted shares have not been issued. During the nine months ended September 30, 2025, the Company issued 94,670
restricted shares with a value of $465,100.

During
the nine months ended September 30, 2025, in connection with the inducement of 1,295,091 warrants at $5.198 per share, the Company also sold
1,424,500 warrants exercisable at $6.502 per share. The Company received proceeds of $6,731,410 before deducting placement agent fees of $346,570 and other
offering expenses payable by the Company upon the exercise of the May 2024 Existing Warrants.

During the nine months ended September 30, 2025,
in connection with the Regulation A offering of up to 3,100,000 Units at an offering price of $3.25 per Unit, the Company issued 2,349,