Company: WKSP
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010837
Chunk: 57

Company: Worksport Ltd
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 57
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 with 4,795,521 and 2,410,020 shares issued and outstanding, at March 31, 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. As of March 31, 2025, the Company has 2,414,526
warrants convertible to 2,444,526 common shares, 115,713 restricted stock to be issued, and 201,824 stock options
exercisable for 201,824 common shares for a total underlying common shares of 2,762,063. As of March 31, 2024, the Company has
2,011,808 warrants convertible to 2,041,808 common shares, 35,702 restricted stock to be issued, and 513,266 stock options exercisable
for 513,266 common shares for a total underlying common shares of 2,590,775.

    13

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