Company: WKSP
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022113
Chunk: 26

Company: Worksport Ltd
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 26
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000
shares at a reduced exercise price of $5.198
in consideration for the Company to issue new warrants to purchase up to 1,295,000
additional shares of common stock with an exercise price of $5.198 – resulting in gross proceeds of approximately $3,638,000
received by the Company. As a result of the inducement and subsequent exercise, the Company determined the incremental fair value
provided to the holder from both the adjustment in exercise price of the existing warrants and the fair value of the inducement
warrants issued using the Black Scholes model. The total incremental fair value of $4,996,000
is recorded as a non-cash deemed dividend. The proceeds of the warrant inducement and issuance of 284,000
shares of common stock are recorded as capital in excess of par. The obligation to issue the remaining 416,000
shares was originally recorded as a share subscription payable. During the twelve months ended December 31, 2024, the Company issued 416,000
out of the 416,000
shares to be issued.

During
the year ended December 31, 2023, in connection with the sale of 192,500 shares of common stock the Company also sold 157,500 pre-funded
warrants and 700,000 warrants convertible for 857,500 shares of common stock with an exercise price of $0.001 and $13.40, respectively.
The Company received net proceeds of $2,110,342 associated with the sale of the pre-funded warrants. During the same period, 88,700 pre-funded
warrants were exercised for 88,700 shares of common stock for $89. During the year ended December 31, 2024, the remaining 68,800 pre-funded
warrants were exercised for 68,800 shares of common stock for $69.

During
the year ended December 31, 2023, the Company and a stock options holder agreed to cancel all 40,000 stock options in exchange for extending
the exercisable period of 30,000 warrants to December 31, 2024. Later in the year ended December 31, 2023, the expiration date for these
warrants was extended to December 31, 2026, and the stock option holder was issued an additional 40,000 restricted stock units.

    16

During
the year ended December 31, 2022, the