Company: WKSP
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010837
Chunk: 50

Company: Worksport Ltd
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 50
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178  
    $13,644,226 

Depreciation expense for the three months ended March 31, 2025 and 2024
was $348,507 and $382,520, respectively.

    9

5.
Intangible Assets

Intangible
assets consist of costs incurred to establish the patent rights related to the quick latch and soft vinyl quad-fold tonneau cover technologies,
Worksport trademarks, licenses, and software costs. The Company’s utility patents and design registrations were issued between
2014 and 2025. The patents and software are amortized on a straight-line basis over their useful life. The Company’s trademark,
licenses, and other indefinite life intangible assets are reassessed every year for impairment. The Company determined that impairment
is not necessary for the prior year ended December 31, 2024 and for the three months ended March 31, 2025.

The
components of intangible assets are as follows:

Schedule of Components of Intangible Assets 

    March 31, 2025  
    December 31, 2024 
  
    Software 
    $1,150,000  
    $1,150,000 
  
    License 
     218,329  
     103,329 
  
    Patent 
     62,706  
     62,706 
  
    Trademark 
     5,150  
     5,150 
  
    Other 
     171,334  
     29,451 
  
    Intangible assets, gross carrying amount 
     1,607,519  
     1,350,636 
  
    Less accumulated amortization 
     (494,046) 
     (397,587)
  
    Intangible assets, net 
    $1,113,473  
    $953,049 

Amortization
expense for the three months ended March 31, 2025 and 2024 was $96,459
and $627, respectively.

Estimated
amortization of the patent and software over the next five calendar years and beyond March 31, 2025 is as follows:

    2025 
    $289,383 
  
    2026 
    $385,842 
  
    2027 
    $2,508 
  
    2028 
    $2,508 
  
    2029 
    $2,508