UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For Quarterly Period Ended: September 30, 2022

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File No. 001-40681

A close up of a logo

Description automatically generated

Worksport Ltd.

(Exact Name of Small Business Issuer as specified in its charter)

Nevada		35-2696895
(State or Other Jurisdiction of		(I.R.S. Employer
Incorporation or Organization)		Identification Number)

55 East Beaver Creek Rd #40

Richmond Hill, Ontario, Canada L4B 1E5

(Address of Principal Executive Offices, Including Zip Code)

Registrant’s Telephone Number, including area code: (888) 554-8789

With copies to:

Ross Carmel, Esq.

Philip Magri, Esq.

Carmel, Milazzo & Feil LLP

55 W 39th Street, 18th Floor

New York, NY 10018

Tel: 212-658-0458

Fax: 646-838-1314

Securities registered pursuant to Section 12(b) of the Act:

Title of each class:	Trading Symbol(s)	Name of each exchange on which registered:
Common Stock	WKSP	NASDAQ CAPITAL MARKET
Warrants	WKSPW	NASDAQ CAPITAL MARKET

Indicate by check mark whether the registrant (1) has filed all Reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter year that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes: ☒ No: ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or such shorter year that the registrant was required to submit and post such files. Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer,” and “small reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition year for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act): Yes ☐ No ☒

As of November 14, 2022, 17,190,016 shares of Common Stock were outstanding.

WORKSPORT LTD.

TABLE OF CONTENTS

	Page
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements.
Condensed Consolidated Balance Sheets as at September 30, 2022 (unaudited) and December 31, 2021	3
Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2022 and 2021 (Unaudited)	4
Condensed Consolidated Statements of Cash Flow for the nine months ended September 30, 2022 and 2021 (Unaudited)	7
Condensed Consolidated Statements of Shareholders’ Deficit for the three and nine months ended September 30, 2022 and 2021 (Unaudited)	5
Notes to the Condensed Consolidated Financial Statements (Unaudited)	8-19

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	20-24

Item 3. Quantitative and Qualitative Disclosures About Market Risk	24

Item 4. Controls and Procedures	24

PART II OTHER INFORMATION

Item 1. Legal Proceedings	24

Item 1A. Risk Factors	25

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	25

Item 3. Defaults Upon Senior Securities	25

Item 4. Mine Safety Disclosures	25

Item 5. Other Information	25

Item 6. Exhibits	26

SIGNATURES	27

Worksport Ltd.

Condensed Consolidated Balance Sheets

(Unaudited)


	September 30, 2022 (Unaudited)		December 31, 2021
Assets
Current Assets
Cash and cash equivalents	$	16,724,267	$	28,567,333
Restricted cash (note 14)		554,994		-
Accounts receivable net		63,074		62,684
Other receivable		278,872		184,721
Inventory (note 3)		1,286,786		501,772
Prepaid expenses and deposits (note 4)		3,188,335

SEC Form 10-Q filed by Worksport Ltd.