Company: WKSP
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000850
Chunk: 169

Company: Worksport Ltd
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 169
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2024 to a new maturity date of August 10, 2024. The Company
    has since refinanced this loan.  

    b)
    On
                                            July 19, 2024, the Company, as the guarantor, and Worksport New York Operations Corporation
                                            as well as Worksport USA Operations Corporation, entered into a $6,000,000 Revolving Financing
                                            and Assignment Agreement with an external lending entity with a maturity date of July 18,
                                            2026, or 24 months. Upon transaction close, the Company drew down approximately $5.06 million
                                            of the Revolving Credit Facility, net of $790,000 of interest reserve required to be withheld
                                            to ensure interest payments by the Company. The Company used $4.73 million of the drawn down
                                            amount to refinance the Company’s mortgage on the Company’s real property located
                                            at 2500 North America Dr. in West Seneca, New York, and additionally drew approximately $330,000
                                            to fund operations. At December 31, 2024, the outstanding balance of this loan was $3,591,247
                                            (net of issuance costs of $216,778).
     
    For
    collateral, the lender holds a first position on the Company’s major asset classes (accounts receivable, the factory in New
    York, and inventory) other than the Company’s equipment. A non-usage fee of 0.25%
    is assessed quarterly and applied to the difference between the quarter’s average daily outstanding loan balance and the total
    credit facility amount. As of December 31, 2024, the Company had an available balance of $892,000 to borrow on the Revolving Credit Facility.

    c)
    On
September 4, 2024, the Company, through its wholly owned subsidiary, Worksport USA Operations Corporation, entered into a $1,487,200
credit and security agreement with an external
lending entity with a maturity date of September
1, 2027, which is 36
months from initial funding. Upon transaction
close, the Company received net proceeds of $1,412,750
(net of issuance costs of $43,735). The Company
and its wholly owned subsidiary, Worksport New York Operations Corporation, serve as guarantors on the loan.    For collateral,
the lender holds a first position on the Company’s equipment, which is primarily manufacturing and