Company: WKSP
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000850
Chunk: 440

Company: Worksport Ltd
Filing Date: 2025-03-27
Form: 10-K
Item: Item 7A
Chunk 440
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 expired.

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 at 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.

On
May 9, 2024, the Company entered into a warrant inducement agreement (the “Inducement”) with the holder of existing warrants
to purchase an aggregate 700,000 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    – 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, 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,