Company: WKSP
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022113
Chunk: 116

Company: Worksport Ltd
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 2
Chunk 116
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Net
Loss

Net
loss for the nine months ended September 30, 2025 was $13,123,627, compared to a net loss of $11,862,973 for the nine months ended
September 30, 2024 – an increase of 11%. The increase in the net loss can be attributed to the increase in
various operating expenses as we focus on expanding our operations alongside higher marketing expenses to support both ongoing sales volumes and develop future campaigns for which we expect to show return
on investment via increased sales in future periods.

Liquidity
and Capital Resources

As
of September 30, 2025 and December 31, 2024, we had $3,761,690 and $4,883,099, respectively in cash and cash equivalents. As of
September 30, 2025, we had $3,291,250 of remaining available capacity on our revolving line of credit compared with $811,400 of
remaining available capacity as of December 31, 2024. The decrease in cash and cash equivalents and increase in the remaining
available capacity on our revolving line of credit was primarily a result of the use of cash flows from operations to reduce our
indebtedness. We have historically generated only limited gross profit and have relied primarily upon capital generated from public
and private offerings of our securities to fund continuing operations. Since the Company’s acquisition of Worksport in 2014,
it has never generated a profit. During the three and nine months ended September 30, 2025, we had net losses of $4,928,679 and
$13,123,627, respectively (three months ended September 30, 2024 - $4,134,917; nine months ended September 30, 2024 - $11,862,973).
As of September 30, 2025, the Company had working capital of $6,311,857 (As of December 31, 2024 - $7,304,110) and had an
accumulated deficit of $77,617,726 (as of December 31, 2024 - $64,476,966).

In
their fiscal 2024 audit report, our independent auditors expressed that there is substantial doubt as to our ability to continue as a
going concern. Our ability to continue as a going concern is dependent upon our ability to generate cash flows from operations and obtain
equity and/or debt financing