Company: WKSP
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000850
Chunk: 168

Company: Worksport Ltd
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 168
---
-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
    31, 2023 
  
    Operating
    lease cost 
    $409,464  
    $488,463 

The
following is a summary of cash paid in 2024 and 2023 for amounts included in the measurement of lease liabilities:

 Schedule
of Measurement of Lease Liabilities

    December
    31, 2024  
    December
    31, 2023 
  
    Operating
    cashflow 
    $412,933  
    $515,776 

Maturities
of lease liability are as follows:

Future
minimum lease payments as of December 31, 2024:

 Schedule of Future Minimum Lease Payments

    2025 
    $294,860 
  
    2026 
     279,883 
  
    2027 
     113,123 
  
    Total future minimum lease payments 
     687,866 
  
    Less: amount representing
    interest 
     (72,859)
  
    Present value of future payments 
     615,007 
  
    Current portion 
     246,535 
  
    Long term portion 
    $368,472 

    59

Worksport
Ltd.

Notes
to the Consolidated Financial Statements

December
31, 2024 and 2023

13.
Indebtedness

Long-term debt consists