Company: WKSP
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000850
Chunk: 517

Company: Worksport Ltd
Filing Date: 2025-03-27
Form: 10-K
Item: Item 8
Chunk 517
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5. The anticipated
earned interest on the GIC at maturity is $3,123 ($4,275 CAD).

    58

Worksport
Ltd.

Notes
to the Consolidated Financial Statements

December
31, 2024 and 2023

12.
Leases

During
the year ended December 31, 2022, the Company signed a lease agreement for approximately 20,296 square feet to be used as its then primary,
now secondary corporate office and R&D facility pursuant to a five-year lease, dated June 1, 2022, for a variable rate averaging
$20,242 per month over the lifetime of the lease not inclusive of additional fees, which also vary and averaged $5,250 per month in 2024
not inclusive of taxes.

During
the year ended December 31, 2023, the Company signed a lease agreement for office space to be used as an R&D facility pursuant to
a one-year lease with an option to extend the lease for an additional year, dated June 1, 2023, for a monthly rent of $3,350. This lease
was renewed effective June 1, 2024 at a rate of $3,600 per month with a termination date of May 31, 2025.

The
Company has accounted for its leases upon adoption of ASC 842 whereby it recognizes a lease liability and a right-of-use asset at
the date of initial application beginning January 1, 2019. The lease liability is measured at the present value of the remaining
lease payments, discounted using the Company’s incremental estimated borrowing rate of 10%.
The Company has measured the right-of-use asset at an amount equal to the lease liability.

The
Company’s right-of-use asset and lease liability as of December 31, 2024 and 2023 is as follows:

 Schedule Right-of-use Asset

    December
    31, 2024  
    December
    31, 2023 
  
    Right-of-use asset 
    $595,415  
    $917,354 
  
    Current lease liability 
    $246,535  
    $328,229 
  
    Long-term lease liability 
    $368,472  
    $608,761 

The
following is a summary of the Company’s total lease costs:

 Schedule
of Lease Cost

    December
    31, 2024  
    December