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, 2025

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

Commission File No. 001-40681

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 No.)

2500 N America Dr, West Seneca, NY		14224
(Address of principal executive offices)		(Zip Code)

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

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		The Nasdaq Stock Market LLC

Securities registered pursuant to Section 12(g) of the Act: None

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 past 12 months (or for such shorter period 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 every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit post such files). Yes ☒ No ☐

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth 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 period 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 13, 2025, the Registrant had 8,254,389 shares of common stock, par value $0.001 per share, issued and outstanding.

WORKSPORT LTD.

TABLE OF CONTENTS

	Page
PART I. FINANCIAL INFORMATION	3
Item 1. Financial Statements.	3
Condensed Consolidated Balance Sheets as at September 30, 2025 (Unaudited) and December 31, 2024	3
Condensed Consolidated Statements of Operations and Comprehensive Loss for the three and nine months ended September 30, 2025 and 2024 (Unaudited)	4
Condensed Consolidated Statements of Shareholders’ Equity for the three and nine months ended September 30, 2025 and 2024 (Unaudited)	5
Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2025 and 2024 (Unaudited)	7
Notes to the Condensed Consolidated Financial Statements (Unaudited)	8

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	22

Item 3. Quantitative and Qualitative Disclosures About Market Risk	30

Item 4. Controls and Procedures	30

PART II OTHER INFORMATION	31

Item 1. Legal Proceedings	31

Item 1A. Risk Factors	31

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	31

Item 3. Defaults Upon Senior Securities	31

Item 4. Mine Safety Disclosures	31

Item 5. Other Information	31

Item 6. Exhibits	32

SIGNATURES	33

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Worksport Ltd.

Condensed Consolidated Balance Sheets

	September 30, 2025			December 31, 2024
	(Unaudited)
ASSETS
Current assets
Cash and cash equivalents	$	3,761,690		$	4,883,099
Accounts receivable, net		515,074			42,589
Other receivable		209,702			169,728
Inventory (Note 3)		6,835,491			5,190,054
Prepaid expenses and deposits (Note 6)		1,055,971			192,192
Total current assets		12,377,928			10,477,662
Investments (Note 11)		122,681			66,308
Property and equipment, net (Note 4)		13,208,163			13,644,226
Operating lease right-of-use assets (Note 12)		299,376			595,415
Intangible assets, net (Note 5)		1,040,474			953,049
Total assets	$	27,048,622		$	25,736,660
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	2,814,718		$	1,526,630
Accrued liabilities and other		1,078,355			800,283
Accrued compensation		288,489			377,112
Long-term debt, current portion (Note 13)		1,774,307			222,992
Lease liability, current portion (Note 12)		110,202			246,535
Total current liabilities		6,066,071			3,173,552
Lease liability, excluding current portion (Note 12)		189,116			368,472
Long-term debt, excluding current portion (Note 13)		1,014,043			4,781,005
Total liabilities		7,269,230			8,323,029

Shareholders’ equity
Series A, B Preferred & Series C Convertible Preferred stock, $0.001 par value, 10,000,000 shares authorized, 100 Series A, 0 Series B, and 371,784 Series C issued and outstanding, respectively (Note 7)		372			-
Series A, B Preferred & Series C Convertible Preferred stock, $0.001 par value, 10,000,000 shares authorized, 100 Series A, 0 Series B, and 371,784 Series C issued and outstanding, respectively (Note 7)		372			-
Common stock, $0.001 par value, 45,000,000 shares authorized, 7,589,036 and 4,016,205 shares issued and outstanding, respectively (Note 7)		7,588			4,016
Additional paid-in capital		95,783,778			79,781,674
Share subscriptions receivable		(512,392	)		(1,577	)
Share subscriptions payable		2,126,352			2,115,064
Accumulated deficit		(77,617,726	)		(64,476,966	)
Cumulative translation adjustment		(8,580	)		(8,580	)
Total shareholders’ equity		19,779,392			17,413,631
Total liabilities and shareholders’ equity	$	27,048,622		$	25,736,660

See accompanying Notes to Condensed Consolidated Financial Statements which form an integral part of the Condensed Consolidated Financial Statements.

Worksport Ltd.

Condensed Consolidated Statements of Operations and Comprehensive Loss

For the Three and Nine Months Ended September 30, 2025 and 2024

(Unaudited)

	2025		2024			2025		2024
	Three Months ended September 30,					Nine Months ended September 30,
	2025		2024			2025		2024

Net sales	$	5,013,872	$	3,122,359		$	11,358,835	$	5,556,535
Cost of sales		3,445,088		2,875,186			8,311,718		4,975,277
Gross profit		1,568,784		247,173			3,047,117		581,258

Operating expenses
Research and development		301,095		396,446			975,529		1,811,911
General and administrative		2,950,100		2,478,809			8,409,789		6,684,048
Sales and marketing		2,362,195		661,238	<

SEC Form 10-Q filed by Worksport Ltd.