UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
For
Quarterly Period Ended:
For the transition period from __________ to __________
Commission
File No.
(Exact Name of Small Business Issuer as specified in its charter)
| (State or Other Jurisdiction of | (I.R.S. Employer | |
| Incorporation or Organization) | Identification Number) |
(Address of Principal Executive Offices, Including Zip Code)
Registrant’s
Telephone Number, including area code:
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 | ||
| None |
Securities registered pursuant to Section 12(g) of the Act: Common Stock, $0.0001 per share par value
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.
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.
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 | ☐ |
| ☒ | 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 ☐
As of August 16, 2021 shares of Common Stock outstanding.
WORKSPORT LTD.
TABLE OF CONTENTS
| 2 |
PART I – FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
Worksport Ltd.
Condensed Consolidated Balance Sheets
(Unaudited)
| June 30, 2021 | December 31, 2020 | |||||||
| Assets | ||||||||
| Current Assets | ||||||||
| Cash and cash equivalents | $ | $ | ||||||
| Accounts receivable net | ||||||||
| Other receivable | ||||||||
| Inventory (note 3) | ||||||||
| Prepaid inventory (note 3) | - | |||||||
| Prepaid expenses and deposits | ||||||||
| Related party receivable (note 7) | - | |||||||
| Total Current Assets | ||||||||
| Investment | ||||||||
| Property and Equipment, net | ||||||||
| Right-of-use asset, net (note 10) | ||||||||
| Intangible Assets, net | ||||||||
| Total Assets | $ | $ | ||||||
| Liabilities and Shareholders’ Deficit | ||||||||
| Current Liabilities | ||||||||
| Accounts payable and accrued liabilities | $ | $ | ||||||
| Payroll taxes payable | ||||||||
| Related party loan (note 7) | - | |||||||
| Promissory notes payable (note 4) | ||||||||
| Convertible promissory note, net (note 5) | - | |||||||
| Loan payable (note 11) | ||||||||
| Current lease liability (note 10) | ||||||||
| Total Current Liabilities | ||||||||
| Long Term – Lease Liability (note 10) | ||||||||
| Total Liabilities | ||||||||
| Shareholders’ Equity (Deficit) | ||||||||
| Series A & B Preferred Stock, $ par value, shares authorized, Series A and Series B issued and outstanding, respectively (note 6) | - | |||||||
| Common stock, $ par value, shares authorized, and shares issued and outstanding, respectively (note 6) | ||||||||
| Additional paid-in capital | ||||||||
| Share subscriptions receivable | ( | ) | ( | ) | ||||
| Share subscriptions payable | ||||||||
| Accumulated deficit | ( | ) | ( | ) | ||||
| Cumulative translation adjustment | ( | ) | ( | ) | ||||
| Total Shareholders’ Equity (Deficit) | ||||||||
| Total Liabilities and Shareholders’ Equity (Deficit) | $ | $ | ||||||
The accompanying notes form an integral part of these condensed consolidated financial statements.
| 3 |
Worksport Ltd.
Condensed Consolidated Statements of Operations
For the three and six months ended June 30, 2021 and 2020
(Unaudited)
| Three Months ended June 30 | Six Months ended June 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2021 | |||||||||||||
| Net Sales | $ | $ | $ | $ | ||||||||||||
| Cost of Goods Sold | ||||||||||||||||
| Gross Profit (Loss) | ( | ) | ||||||||||||||
| Operating Expenses | ||||||||||||||||
| General and administrative | ||||||||||||||||
| Sales and marketing | ||||||||||||||||
| Professional fees | ||||||||||||||||
| (Gain) loss on foreign exchange | ( | ) | ||||||||||||||
| Total operating expenses | ||||||||||||||||
| Loss from operations | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Other Income (Expense) | ||||||||||||||||
| Interest expense (note 5) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Gain (loss) on settlement of debt | - | - | ||||||||||||||
| Total other income (expense) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Net Loss | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
| Loss per Share (basic and diluted) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
| Weighted Average Number of Shares (basic and diluted) | ||||||||||||||||
The accompanying notes form an integral part of these condensed consolidated financial statements
| 4 |
Worksport Ltd.
Condensed Consolidated Statements of Cash Flows
For the six Months Ended June 30, 2021 and 2020
(Unaudited)
| 2021 | 2020 | |||||||
| Operating Activities | ||||||||
| Net Loss | $ | ( | ) | $ | ( | ) | ||
| Adjustments to reconcile net loss to net cash from operating activities: | ||||||||
| Shares and warrants issued for services | ||||||||
| Depreciation and amortization | ||||||||
| Interest on lease liability | ||||||||
| Accrued interest | - | |||||||
| Amortization of debt discount | - | |||||||
| Amortization on OID interest | ||||||||
| Gain on settlement of debt | ( | ) | - | |||||
| ( | ) | ( | ) | |||||
| Changes in operating assets and liabilities (note 8) | ( | ) | ( | ) | ||||
| Net cash used in operating activities | ( | ) | ( | ) | ||||
| Cash Flows from Investing Activities | ||||||||
| Repayment of lease liability | ( | ) | - | |||||
| Loan receivable | ( | ) | - | |||||
| Purchase of investment | - | ( | ) | |||||
| Purchase of intangible assets | ( | ) | - | |||||
| Purchase of property and equipment | ( | ) | - | |||||
| Net cash used in investing activities | ( | ) | ( | ) | ||||
| Financing Activities | ||||||||
| Proceeds from issuance of common shares, net of issuance cost | - | |||||||
| Proceeds from warrant exercise | - | |||||||
| Proceeds from loan payable | - | |||||||
| Repayment of loan payable | ( | ) | - | |||||
| Proceeds from promissory notes | - | |||||||
| Shareholder assumption of debt | ( | ) | ||||||
| Net cash provided by financing activities | ||||||||
| Change in cash | ||||||||
| Cash and cash equivalents - beginning of year | ||||||||
| Cash and cash equivalents end of year | $ | $ | ||||||
| Supplemental disclosure of cash flow information: | ||||||||
| Interest paid | $ | $ | ||||||
| Supplemental Disclosure of non-cash investing and financing Activities | ||||||||
| Purchase of software | $ | $ | ||||||
| Shares issued to service providers | $ | $ | ||||||
| Cashless warrant exercise | $ | $ | ||||||
| Shares issued for share subscriptions payable | $ | $ | ||||||
| Conversion of convertible promissory note to common stock | $ | $ | ||||||
| Convertible promissory note – equity discount | $ | $ | ||||||
| Convertible promissory note – original issue discount | $ | $ | ||||||
| Conversion of preferred stock to common stock | $ | $ | ||||||
| Reverse stock split | $ | $ | ||||||
The accompanying notes form an integral part of these condensed consolidated financial statements.
| 5 |
Worksport Ltd.
Condensed Consolidated Statements of Shareholders’ Deficit
For the Three Months Ended June 30, 2020 and 2021
(Unaudited)
Preferred Stock | Common Stock | Additional Paid-in |
Share Subscriptions | Share Subscription | Accumulated | Cumulative Translation | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Capital | Receivable | Payable | Deficit | Adjustment | (Deficit) | |||||||||||||||||||||||||||||||
| Balance at April 1, 2020 | - | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||||||||||||||||||||
| Issuance for prepaid services | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
| Issuance for prepaid services and subscriptions payable | - | - | - | ( | ) | - | - | - | ||||||||||||||||||||||||||||||||
| Issuance of Series A Preferred Stock | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
| Net loss | - | - | - | - | - | - | - | ( | ) | - | ( | |||||||||||||||||||||||||||||
| Balance at June 30, 2020 | $ | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||||||||||||||||||||
| Balance at April 1, 2021 | $ | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||||||||||||||||||||
| Conversion of preferred stock to common stock | ( | ) | ( | ) | ( | ) | - | - | - | - | - | |||||||||||||||||||||||||||||
| Consulting Service for share subscriptions | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||
| Issuance for services and subscriptions payable | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
| Share issuance cost | - | - | - | - | ( | ) | - | - | - | - | ( | ) | ||||||||||||||||||||||||||||
| Issuance of shares from private placement | - | - | - | ( | ) | - | - | |||||||||||||||||||||||||||||||||
| Warrant exercise (note 14) | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
| Loan repayment (note 11) | - | - | - | ( | ) | - | - | |||||||||||||||||||||||||||||||||
| Net loss | - | - | - | - | - | - | - | ( | ) | - | ( | ) | ||||||||||||||||||||||||||||
| Balance at June 30, 2021 | - | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||||||||||||||||||||
The accompanying notes form an integral part of these condensed consolidated financial statements
| 6 |
Worksport Ltd.
Condensed Consolidated Statements of Shareholders’ Deficit
For the Six Months Ended June 30, 2020 and 2021
(Unaudited)
Preferred Stock |
Common Stock |
Additional Paid-in |
Share Subscriptions |
Share Subscription |
Accumulated |
Cumulative Translation | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Capital | Receivable | Payable | Deficit | Adjustment | (Deficit) | |||||||||||||||||||||||||||||||
| Balance at January 1, 2020 | - | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||||||||||||||||||||
| Issuance for prepaid services | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
| Issuance for prepaid services and subscriptions payable | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
| Issuance of share subscriptions payable | - | - | - | ( | ) | - | - | - | ||||||||||||||||||||||||||||||||
| Warrants issuance in connection to convertible promissory note (note 5 and 10) | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||
| Share issuance in connection to convertible promissory note (note 5) | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
| Issuance for settlement of payables | - | - | - | ( | ) | - | - | - | ||||||||||||||||||||||||||||||||
| Issuance of Preferred Stock | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||
| Net loss | - | - | - | - | - | - | - | ( | ) | - | ( | ) | ||||||||||||||||||||||||||||
| Balance at June 30, 2020 | $ | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||||||||||||||||||||
| Balance at January 1, 2021 | $ | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||||||||||||||||||||
| Conversion of preferred stock to common stock | ( | ) | ( | ) | ( | ) | - | - | - | - | - | |||||||||||||||||||||||||||||
| Consulting Service for share subscriptions | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||
| Issuance for services and subscriptions payable | - | - | - | ( | ) | - | - | |||||||||||||||||||||||||||||||||
| Issuance of shares from Reg-A | - | - | - | ( | ) | - | - | |||||||||||||||||||||||||||||||||
| Share issuance cost | - | - | - | - | ( | ) | - | - | - | - | ( | ) | ||||||||||||||||||||||||||||
| Issuance of shares from private placement | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
| Warrants issuance for services | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||
| Conversion of convertible promissory note to shares (note 5) | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
| Cashless warrant exercise (note 14) | - | - | ( | ) | - | - | - | - | - | |||||||||||||||||||||||||||||||
| Warrant exercise (note 14) | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
| Loan repayment (note 11) | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
| Net loss | - | - | - | - | - | - | - | ( | ) | - | ( | ) | ||||||||||||||||||||||||||||
| Balance at June 30, 2021 | - | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | |||||||||||||||||||||||||||
The accompanying notes form an integral part of these condensed consolidated financial statements
| 7 |
Worksport Ltd.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
1. Basis of Presentation and Business Condition
a) Interim Financial Information
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) for interim financial information pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC). Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments and reclassifications considered necessary in order to make the financial statements not misleading and for a fair and comparable presentation have been included and are of a normal recurring nature. Operating results for the six-month period ended June 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 filed with the SEC on April 13, 2021.
On
May 21, 2021, the Board of Directors authorized the submission of a Certificate of Change/Amendment to the Nevada Secretary of State
in which the Company sought to affect a reverse split of its common stock at the rate of 1 for 20 for the purpose of increasing the per
share price for the Company’s stock in an effort to meet the minimum listing requirements of the NADAQ. The Certificate of Change
was submitted to the Nevada Secretary of State on May 21, 2021 and the FINRA corporate action was filed on August 3, 2021. FINRA declared
the
b) Functional and Reporting Currency
Effective
January 1, 2020, the Company changed the functional currency of its subsidiary to United States dollars given the increasing prevalence
of U.S. dollar-denominated activities of the subsidiary over time. The change in functional currency from Canadian dollars to United
States dollars is accounted for prospectively from January 1, 2020. The subsidiary’s balance sheet was converted from Canadian
dollars to United States dollars using the year ended December 31, 2019 United States dollar balance as the opening for January 1, 2020
in accordance to ASC 830. These condensed interim financial statements are presented in United States Dollars. The functional
and presentation currency of the Company and its subsidiary is the United States Dollar. As a result of the change in functional currency
the Company recognized a loss on foreign exchange of $
c) Use of Estimates
The preparation of condensed unaudited financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed interim financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.
d) Business condition
The Company has evaluated whether there are conditions and events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date the financial statements are issued.
As
of June 30, 2021, the Company had working capital of $
During
the six month ended June 30, 2021 the Company through its Reg-A public offering, private placement offering, and exercises of warrants
had raised in aggregate of approximately $
Based
on the Company’s future operating plans, existing cash of $
| 8 |
Worksport Ltd.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
2. Significant Accounting Policies
The accounting polices used in the preparation of these condensed consolidated interim financial statements are consistent with those of the Company’s audited financial statements for the year ended December 31, 2020 in addition to:
Property and Equipment – During the three month ended March 31, 2021 the Company purchased an automobile. As such the Company has updated its accounting policy of its capital assets. Capital assets are recorded at cost and are amortized using the straight-line method over the following estimated useful lives:
| ● | Automobile |
3. Inventory
| Inventory consists of the following at June 30, 2021 and December 31, 2020: | ||||||||
| 2021 | 2020 | |||||||
| Finished goods | $ | $ | ||||||
| Promotional items | ||||||||
| Raw materials | ||||||||
| Inventory | $ | $ | ||||||
| Prepaid inventory | $ | $ | ||||||
4. Promissory Notes
The following tables shows the balance of the notes payable as of June 30, 2021 and December 31, 2020:
| Balance as at December 31, 2019 | $ | |||
| Reclassification | ||||
| Balance as at December 31, 2020 | $ | |||
| Repayment | ( | ) | ||
| Balance as at June 30, 2021 | $ |
During
the year ended December 30, 2020, the Company reclassified $
During
the year ended December 30, 2020, the Company reclassified a debit balance of $
During
the year ended December 31, 2016, the Company issued a secured promissory note in the amount of $
During
the year ended December 31, 2016, the Company issued secured promissory notes in the amount of $
During
the years ended December 31, 2017, the Company issued secured promissory notes in the amount of $
| 9 |
Worksport Ltd.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
4. Promissory Notes (continue)
During
the years ended December 31, 2017, the Company issued secured promissory notes in the amount of $
The amounts repayable under promissory notes and secured promissory notes at June 30, 2021 and December 31, 2020:
| June 30, 2021 | December 31, 2020 | |||||||
| Balance owing | $ | $ | ||||||
| Less amounts due within one year | ( | ) | ( | ) | ||||
| Long-term portion | $ | $ | ||||||
5. Convertible Promissory Notes
On
February 25, 2020, the Company entered into an agreement with Leonite Capital LLC, a Delaware limited liability company (“Leonite”),
pursuant to which the Company issued to Leonite a secured convertible promissory note in the aggregate principal amount of $
The
note carries an original issue discount of $
The
Company amortized $
| 10 |
Worksport Ltd.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
6. Shareholders’ Equity (Deficit)
During
the six months ended June 30, 2021 the Company issued a total of ( pre-stock split) common shares relating
to the Reg-A public offering. Of the shares issued ( pre-stock split) common shares valued at $ were from share subscription
payable and ( pre-stock split) common shares were cancelled and refunded valued at $
During
the same period ( pre-stock split) Reg-A public offering warrants were exercised for (
pre-stock split) common shares. As of June 30, 2021 ( pre-stock split) common shares were issued valued at $
During
the six months ended June 30, 2021 the Company raised $
During
the six months ended June 30, 2021 the Company entered into consulting agreements with third party consultants for
During
the six months ended June 30, 2021 the Company issued ( pre-stock split) common shares valued at $
During
the six months ended June 30, 2021 the Company entered into a loan settlement agreement with a loan holder to issue (
pre-stock split) common shares at $ ($ pre-stock split) per share for all outstanding loan principal and interest valued
at $
During
the six months ended June 30, 2021 the Company entered into a promissory notes payable settlement agreement with a note holder to issue
36,048 (720,996 pre-stock split) common shares valued at $ ($ pre-stock split) per share for a total value of
$
During
the six months ended June 30, 2021 the Company entered into a settlement agreement with the convertible promissory note holder to settle
all outstanding principal and interest. The Company issued ( pre-stock split) common shares at $ ($ pre-stock
split) per share valued at $
During the six months ended June 30, 2021 the Company issued ( pre-stock split) common shares to Steve Rossi, the Company’s Chief Executive Officer and Director, in connection with his Employment Agreement in consideration for Mr. Rossi agreeing to amend the Series A Certificate of Designation to eliminate the Series A Preferred Stock conversion rights and returning 900 Series A Preferred Stock to the Company.
During
the six-months ended June 30, 2020 the Company issued ( pre-stock split) and ( pre-stock split) common
shares at $ ($ pre-stock split) and $ ($ pre-stock split) per share for $120,000 and $
During the six-months ended June 30, 2020 the Company entered into a share subscription agreement with a consultant of the Company for ( pre-stock split) common shares valued at $125,000 for prepaid consulting services. As of June 30, 2020 the Company issued ( pre-stock split) shares with a value of $. As of June 30, 2020 the Company has expensed $ from prepaid expenses.
During the six-months ended June 30, 2020 the Company issued a consultant ( pre-stock split) common shares of subscription payable with a value of $ relating to the anti-dilution feature triggered on March 5, 2019.
During the six-months ended June 30, 2020 the Company issued ( pre-stock split) common shares pursuant to a subscription payable with a value of $.
During the six-months ended June 30, 2020 the Company issued ( pre-stock split) shares in connection with the issuance of convertible promissory note (note 5) at $ ($ pre-stock split) per share.
During the six-months ended June 30, 2020 the Company entered into a settlement to fulfill a debt purchase agreement entered in 2017 for ( pre-stock split) shares valued at $. As of June 30, 2020 the Company has issued ( pre-stock split) shares.
| 11 |
Worksport Ltd.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
6. Shareholders’ Equity (Deficit) (continued)
During the six-months ended June 30, 2020, Steven Rossi (the Company’s CEO) was issued Series A Preferred Shares at $ per share equal to 299,000 common shares voting rights.
As
of June 30, 2021, the Company was authorized to issue shares of its common stock with a par value of $. All shares
were ranked equally with regards to the Company’s residual assets. During 2021, the Company was authorized to issue 100 shares
of its Series A and Series B Preferred Stock with a par value of $. Series A preferred Stock have voting rights equal to
0 shares of common stock, per share of preferred stock.
7. Related Party Transactions
During
the six months ended June 30, 2021, the Company recorded salaries expense of $
During
the six months ended June 30, 2021 the Company repaid $
During
the six months ended June 30, 2021 the Company paid a director of the Company $
During
the six months ended June 30, 2021, the Company paid $
8. Changes in Cash Flows from Operating Assets and Liabilities
The changes to the Company’s operating assets and liabilities for the six months ended June 30, 2021 and 2020 are as follows:
| 2021 | 2020 | |||||||
| Decrease (increase) in accounts receivable | $ | $ | ( | ) | ||||
| Decrease (increase) in other receivable | ||||||||
| Decrease (increase) in inventory and prepaid inventory | ( | ) | ||||||
| Decrease (increase) in prepaid expenses and deposits | ( | ) | ( | ) | ||||
| Increase (decrease) in lease liability | ( | ) | ||||||
| Increase (decrease) in payroll taxes payable | ( | ) | ||||||
| Increase (decrease) in accounts payable and accrued liabilities | ( | ) | ( | ) | ||||
| Changes in operating assets and liabilities | $ | ( | ) | $ | ( | ) | ||
9. Commitments and contingencies
During the six months ended June 30, 2021 the Company entered into an amended agreement to reserve an additional ( post split) common shares for consulting services. During the year ended December 31, 2020 the Company entered into an agreement with a third-party advisor to reserve for issuance ( post split) common shares for consulting services. As of June 30, 2021, ( pre-stock split) common shares were issued to the third party.
During the year ended December 31, 2020 the Company (defendant) is currently in an ongoing legal proceeding with a promissory notes payable holder (plaintiff). As June 30, 2021, the outcome of the legal proceeding is uncertain.
During
the year ended December 31, 2020, the Company reached a legal settlement with a supplier in which the Company is obligated to pay $
| 12 |
Worksport Ltd.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
10. Lease Liabilities
During
the six months ended June 30, 2021 the Company entered into a second lease agreement for warehouse space to commence on June 1, 2021
and end on
The
Company has accounted for its leases upon adoption of ASC 842 whereby it recognizes a lease liability and a right-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 borrowing rate of
The Company’s right-of-use asset for the six months ended June 30, 2021 as follows:
| 2021 | ||||
| Right-of-use asset | $ | |||
| Current lease liability | $ | |||
| Long-term lease liability | $ | |||
The components of lease expense are as follows:
June 30, 2021 | June 30, 2020 | |||||||
| Amortization of right-of-use | $ | $ | ||||||
| Interest on lease liability | $ | $ | ||||||
| Total lease cost | $ | $ | ||||||
Maturities of lease liability are as follows:
Future minimum lease payments as of June 30, 2021,
| 2021 (remainder of year) | ||||
| 2022 | ||||
| 2023 | ||||
| 2024 | ||||
| Total future minimum lease payments | ||||
| Less: amount representing interest | ( | ) | ||
| Present value of future payments | ||||
| Current portion | ||||
| Long term portion | $ |
11. Loan payable
During
the year ended December 31, 2020 the Company received loans of $, $ and $ from a unrelated third party with an interest
rate of per annum with a maturity date of December 31, July 22 and respectively. During the six months ended June
30, 2021 the Company agreed to repay the outstanding principal and interest through the issuance of ( pre-stock split)
common shares at $ ($ pre-stock split) per share. During the six month ended June 30, 2021, the Company accrued interest
expense of $
During
the year ended December 31, 2020
| 13 |
Worksport Ltd.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
12. Government Assistance
The
Government of Canada is currently providing funding through the Canada Emergency Wage Subsidy (“CEWS”) and Canada Emergency
Rent Subsidy (“CERS”) programs in order to provide financial relief to Canadian businesses affected by COVID-19. The CEWS
program provides a reimbursement of salaries for eligible employers based on a decrease in revenues. The CERS program provides a reimbursement
of rent expenses paid by eligible parties based on a decrease in revenues. During the three and six months ended June 30, 2021, the Company
recognized CEWS of $
For the three and six months ended June 30, 2021, loss per Share is $() and $() (basic and diluted), compared to the three and six months ended June 30, 2020, of $() and $() (basic and diluted). Using the weighted average number of shares of and (basic and diluted) for the three and six months ended June 30, 2021 and and (basic and diluted) for the three and six months ended June 30, 2020.
There
are shares authorized, and shares issued and outstanding, as at June 30, 2021 and 2020 respectively.
As of June 30, 2021, the Company has shares to be issued. The computation of loss per share is based on the weighted average
number of shares outstanding during the period in accordance with ASC Topic No. 260, “Earnings Per Share”. Shares underlying
the Company’s outstanding warrants and convertible promissory notes were excluded due to the anti-dilutive effect they would have
on the computation. As at June 30, 2021 the Company has warrants convertible to
14. Warrants
During
the six months ended June 30, 2021, a total of (
pre-stock split) warrants were exercised for
During
the six months ended June 30, 2021, the Company issued ( pre-stock split) and
During
the six months ended June 30, 2021 the Company and warrant holder reached an agreement to amend a previous warrant agreement. The Company
will issue an additional
As of June 30, 2021, the Company has the following warrants outstanding:
| Exercise price | Number outstanding | Remaining Contractual Life (Years) | Expiry date | |||||||||
| $ | ||||||||||||
| $ | ||||||||||||
| $ | ||||||||||||
| $ | ||||||||||||
| $ | ||||||||||||
| $ | ||||||||||||
| June 30, 2021 | December 31, 2020 | |||||||||||||||
| Number of warrants | Weighted average price | Number of warrants | Weighted average price | |||||||||||||
| Balance, beginning of year | $ | $ | ||||||||||||||
| Issuance | $ | $ | ||||||||||||||
| Exercise | ( | ) | $ | ( | ) | $ | ||||||||||
| Balance, end of period | $ | $ | ||||||||||||||
| 14 |
Worksport Ltd.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
15. COVID-19
The recent outbreak of the novel coronavirus, specifically identified as “COVID-19”, has resulted in governments worldwide enacting emergency measures to combat the spread of the virus. These measures, which include the implementation of travel bans, self-imposed quarantine periods and social distancing, have caused material disruption to businesses globally resulting in an economic slowdown. Global equity markets have experienced significant volatility and weakness. Governments and central banks have reacted with significant monetary and fiscal interventions designed to stabilize economic conditions. The duration and impact of the COVID-19 outbreak is unknown at this time, as is the efficacy of the government and central bank interventions.
Additionally, while the potential economic impact brought by, and the duration of the COVID-19 pandemic is difficult to assess or predict, the impact of the COVID-19 pandemic on the global financial markets may reduce our ability to access capital, which could negatively impact our short-term and long-term liquidity. The ultimate impact of the COVID-19 pandemic is highly uncertain and subject to change. We do not yet know the full extent of potential delays or impacts on our business, financing or mining production activities or the ore and mining industry or the global economy as a whole. However, these effects could have a material impact on our liquidity, capital resources, operations and business and those of the third parties on which we rely. The management and board of the Company is constantly monitoring this situation to minimize potential losses
16. Subsequent Events
The Company has evaluated subsequent events through August 16, 2021 which is the date the financial statements were available to be issued and the following events after year end occurred:
| ● | On
May 21, 2021, the Board of Directors authorized the submission of a Certificate of Change/Amendment to the Nevada Secretary
of State in which the Company sought to affect a | |
| ● | On
August 3, 2021 immediately following the share consolidation the anti-dilution feature dated January 1, 2021 came into effect. As
part of the anti-dilution feature the Company is obligated to issue an additional shares at $ per share for a total of
$ | |
| ● | Subsequent
to quarter ended June 30, 2021, | |
| ● |
On
August 6, 2021 the Company closed on a public offering whereby |
| 15 |
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
This section and other parts of this Quarterly Report on Form 10-Q (“Form 10-Q”) contain forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that involve risks and uncertainties. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. Forward-looking statements can also be identified by words such as “future,” “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “will,” “would,” “could,” “can,” “may,” and similar terms. Forward-looking statements are not guarantees of future performance and actual results may differ significantly from the results discussed in the forward-looking statements. All forward-looking statements in this Form 10-Q are made based on current expectations, forecasts, estimates and assumptions, and involve risks, uncertainties and other factors that could cause results or events to differ materially from those expressed in the forward-looking statements. In evaluating these statements, various factors, uncertainties, and risks should be specifically considered that could affect future results or operations. These factors, uncertainties and risks may cause actual results to differ materially from any forward-looking statement set forth in this Form 10-Q. These risks and uncertainties described and other information contained in the reports filed with or furnished to the SEC should be carefully considered before making any investment decision with respect to the Company’s securities. The Company assumes no obligation to revise or update any forward-looking statements for any reason, except as required by law.
Unless otherwise stated, all information presented herein is based on the Company’s fiscal calendar, and references to particular years, quarters, months or periods refer to the Company’s fiscal years ended in September and the associated quarters, months and periods of those fiscal years. Each of the terms the “Company” and “Worksport” as used herein refers collectively to Worksport Ltd.. and its wholly owned subsidiaries, unless otherwise stated.
The following discussion should be read in conjunction with the 2020 Form 10-K filed with the U.S. Securities and Exchange Commission (the “SEC”) and the condensed consolidated financial statements and accompanying notes included in Part I, Item 1 of this Form 10-Q.
COVID-19
The Company believes that the COVID- 19 pandemic has had certain impacts on its business, but management does not believe there has been a material long-term impact from the effects of the pandemic on the Company’s business and operations, results of operations, financial condition, cash flows, liquidity or capital and financial resources.
During the six months ended June 30, 2021, aspects of the Company’s business continued to be affected by the COVID-19 pandemic with respect to its manufacturing practices and sales. Combined with decreased consumer confidence, Management expects the Company to generate less revenues than in previous periods.
The full extent of the future impact of the COVID-19 pandemic on the Company’s operational and financial performance is currently uncertain and will depend on many factors outside the Company’s control, including, without limitation, the timing, extent, trajectory and duration of the pandemic; the availability, distribution and effectiveness of vaccines; the imposition of protective public safety measures; and the impact of the pandemic on the global economy and demand for consumer products.
RESULTS OF OPERATIONS
Three Months Ended June 30, 2021 compared to Three Months Ended June 30, 2020
Revenue
For the three months ended June 30, 2021, revenue generated from sales was $186,239, compared to $66,102 for the three months ended June 30, 2020. Total revenues increased by approximately 182% compared to the same period in the prior year.
Revenue increased for the three months ended June 30, 2021 compared to the same period the prior year due to [_______________].
For the three months ended June 30, 2021 total revenues generated in Canada increased by 7,906% from $546 in the prior period to $43,713. For the three months ended June 30, 2021, total revenue generated in the United States increased by 135% from $65,556 in the prior period to $153,775. The increase in revenue generated in Canada and United States can be attributed to the Company’s focus on enhancing its manufacturing and logistics supply chain for the introduction of new products into the market [IS THIS TRUE]
For the three months ended June 30, 2021, online revenues increased by 138% from $64,597 in the prior period to $153,810. Online revenue accounted for 78% of total revenue for the three months ended June 30, 2021 compared to 95.4% for the same period in 2020.
For the three months ended June 30, 2021, revenues based on distributors were $43,378 compared to $93 for the same period in 2020.
Worksport currently works with a total of nine dealers and distributors, however, given current market conditions Worksport plans to focus on online sales during 2021. Management believes that increasing sales through online retailers will continue to outpace the traditional distribution business model during 2021. Management further believes that online retailer’s customers tend to provide larger sales volumes, greater profit margins and greater protection against price erosion.
| 16 |
Cost of Sales
For the three months ended June 30, 2021 cost of sales increased by 133% from $58,883 in the prior period to $137,333. Cost of sales, as a percentage of sales, was approximately 74% for three months ended June 30, 2021 compare to 89% for the same period in 2020, respectively. The increase in cost of sales was primarily due to increased sales for the three months ended June 30, 2021 compare to the same prior period.
Shipping and freight costs accounted for 26% of total cost of sales during the three months ended June 30, 2021, compared to 28% for the same period in 2020. The decrease in the percentage of the cost of sales was due to [_____].
Gross Margin
Gross margin percentage for the three months ended June 30, 2021 was 26% compared to 11% for the same period in 2020. The increase in gross margin reflects the Company’s focus on enhancing its manufacturing and logistics supply chain in decreasing cost of sales.
Operating Expenses
Operating expenses increased for the three months ended June 30, 2021 by $710,966 from $140,496 in the prior periods to $851,462.
| ● | General and administrative expense increased by $259,198 from $12,824 in the prior period to $272,022. The increase related to research and development and salaries as the Company seeks to expand its operations and products. | |
| ● | The Company realized a loss on foreign exchange of $3,799 during the three months ended June 30, 2021, a increase of $3,517 compared to $282 during the prior period. The increase on loss on foreign exchange can be attributed to operating expenses denominated in the Canadian Dollar. | |
| ● | Professional fees which include accounting, legal and consulting fees, increased from $119,469 for the three months ended June 30, 2020 to $410,485 for the three months ended June 30, 2021. The increase was due to the employment of various third party consultants to help expand the Company’s business operations. |
Other Income and Expenses
Other income and expenses for the three months ended June 30, 2021 was $18,100 compared to $58,908 the prior period, a decrease of $40,808. The difference can be attributed to the Company’s increased interest expense [IS THIS TRUE?].
Net Loss
Net loss for the three months ended June 30, 2021 was $811,659 compared to $192,185 for the three months ended June 30, 2020, a change of $619,474 or 322%. The increase in the net loss can be attributed to the increase of various operating expenses as the Company focuses on expanding its operations, research and development and supply chain.
Six Months Ended June 30, 2021 compared to Six Months Ended June 30, 2020
Revenue
For the six months ended June 30, 2021, revenue generated from sales was $193,889, compared to $107,129 for the six months ended June 30, 2020. Total revenues increased by approximately 81% compared to the same period in the prior year.
Revenue increased for the six months ended June 30, 2021 compared to the same period the prior year due to [_______________].
For the six months ended June 30, 2021 total revenues generated in Canada increased by 265% from $11,815 in the prior periods to $43,078. For the six months ended June 30, 2021, total revenue generated in the United States increased by 69% from $95,314 in the prior period to $161,465. The increase in revenue generated in Canada and United States can be attributed to the Company’s focus on enhancing its manufacturing and logistics supply chain for the introduction of new products into the market.
For the six months ended June 30, 2021, online revenues increased by 93% from $83,654 in the prior period to $161,519. Online revenue accounted for 79% of total revenue for the six months ended June 30, 2021 compared to 83% for the same period in 2020.
For the six months ended June 30, 2021, revenues based on distributors were $[__] compared to $11,355 for the same period in 2020.
Worksport currently works with a total of nine dealers and distributors, however, given current market conditions Worksport plans to focus on online sales during 2021. Management believes that increasing sales through online retailers will continue to outpace the traditional distribution business model during 2021. Management further believes that online retailer’s customers tend to provide larger sales volumes, greater profit margins and greater protection against price erosion.
| 17 |
Cost of Sales
For the six months ended June 30, 2021 cost of sales increased by 130% from $85,894 in the prior periods to $197,554. Cost of sales, as a percentage of sales, was approximately 102% for six months ended June 30, 2021 compared to 80% for the same periods in 2020, respectively. The increase in cost of sales was primarily due to increased sales for the three and six months ended June 30, 2021 compare to the same prior period.
Shipping and freight costs accounted for 35% of total cost of sales during the six months ended June 30, 2021, compared to 23% for the same period in 2020. The increase in the percentage of the cost of sales was due to increased sales correlating in increased shipping expenses.
Gross Margin
Gross margin percentage for the six months ended June 30, 2021 was negative 2% compared to 20% for the same period in 2020. The decrease in gross margin reflects [_______] .
Operating Expenses
Operating expenses increased for the six months ended June 30, 2021 by $1,521,750 from $278,967 in the prior periods to $1,800,717.
| ● | General and administrative expense increased by $359,576 from $46,730 in the prior period to $406,306. The increase related to research and development and salaries as the Company seeks to expand its operations and products. | |
| ● | The Company realized a loss on foreign exchange of $9,005 during the six months ended June 30, 2021, a decrease of $16,449 compared to a gain of $7,444 during the prior period. The increase on loss on foreign exchange can be attributed to operating expenses denominated in the Canadian Dollar. | |
| ● | Professional fees which include accounting, legal and consulting fees, increased from $228,934 for the six months ended June 30, 2020 to $1,057,599 for the six months ended June 30, 2021. The increase was due to the employment of various third party consultants to help expand the Company’s business operations. |
Other Income and Expenses
Other income and expenses for the six months ended June 30, 2021 was $249,000 compared to $86,719 the prior period, an increase of $162,281. The difference can be attributed to the Company’s increased interest expense.
Net Loss
Net loss for the six months ended June 30, 2021 was $2,035,178 compared to $344,451 for the six months ended June 30, 2020, a change of $1,690,727 or 491%. The increase in the net loss can be attributed to the increase of various operating expenses as the Company focuses on expanding its operations, research and development and supply chain.
LIQUIDITY AND CAPITAL RESOURCES
As of June 30, 2021, the Company had $12,266,597 in cash and cash equivalents. The Company has generated only limited revenues and has relied primarily upon capital generated from public and private offerings of its securities.
Since the Company’s acquisition of Worksport in fiscal 2014, it has never generated a profit.
As of June 30, 2021 the Company had an accumulated deficit of $14,901,211.
Cash Flow Activities
Accounts receivable increased at June 30, 2020 by $35,406 and decreased at June 30, 2021 by $16,504. The decrease was due to the Company’s collection of receivables from customers. Other receivable decreased at June 30, 2021 and 2020 by $116,997 and $9,657 respectively, due to funds received from a sales tax refund and capital raised in the Reg-A offering.
Inventory decreased at June 30, 2020 by $60,136 and increased at June 30, 2021 by $212,344. Prepaid expenses increased by $220,841 at June 30, 2021 and increased at June 30, 2020 by $20,925, due to increased consulting and marketing expenditures during the quarter ended June 30, 2021.
Accounts payable and accrued liabilities decreased at June 30, 2021 and 2020 by $34,428 and $1,042 respectively.
Cash increased from $21,111 at June 30, 2020 to $12,266,597 at June 30, 2021, an increase of $12,245,486 or 58,005%. The increase in cash was primarily due to its warrants exercised, Reg A and private placement offerings which generated of approximately $12,300,000.
As of June 30, 2021, the Company had current assets of $13,120,449 and current liabilities of $1,684,764.
| 18 |
Operating Activities
Net cash used by operating activities for the six months ended June 30, 2021 was $995,925, compared to $229,553 in the prior period. The primary difference was due to the issuance of shares and warrants for services.
Investing Activities
Net cash used in investing activities for the six months ended June 30, 2021 was $321,575 compared to $8,764 in the prior period. The increase in investing activities was primarily due to the purchase of property and equipment of $257,305 and the advance of $5,507 of a short term receivable.
Financing Activities
Net cash provided by financing activities for the six months ended June 30, 2021was $12,476,286 compared to $247,435 in the prior period.
During the six months ended June 30, 2021 the Company received $12,689,106 of proceeds from Reg-A public offering, private placement offering and exercises of warrants incurring share issuance cost of $123,984. During the six months ended June 30, 2021 the Company made repayment of $62,905 of promissory notes and repayment of $25,931 of shareholder loans.
During 2021, the Company intends to introduce several new tonneau covers as well as the TerraVis system. The Company anticipates that the introduction of these new products will improve the Company’s financial position.
Based on the Company’s future operating plans, existing cash of $12,266,597; management believes that the Company has sufficient funds to meet its contractual obligations and working capital requirements for the next 12 months and the foreseeable future.
Off-Balance Sheet Arrangements
None.
Critical Accounting Policies
Our discussion and analysis of results of operations and financial condition are based upon our condensed consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these condensed consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. We evaluate our estimates on an ongoing basis, including those related to provisions for uncollectible accounts receivable, inventories, valuation of intangible assets and contingencies and litigation. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.
The accounting policies that we follow are set forth in Note 2 to our financial statements as included in the Form 10-K filed on April 13, 2021. These accounting policies conform to accounting principles generally accepted in the United States and have been consistently applied in the preparation of the financial statements.
Item 3. Quantitative and Qualitative Disclosures about Market Risk
Not Applicable.
Item 4. Controls and Procedures
Disclosure Controls and Procedures
We carried out an evaluation, under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, of the effectiveness of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)). Based upon that evaluation, our principal executive officer and principal financial officer concluded that, as of the end of the quarter covered in this report, our disclosure controls and procedures were not effective to ensure that information required to be disclosed in reports filed under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the required time years and is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.
Our management, including our principal executive officer and principal financial officer, does not expect that our disclosure controls and procedures or our internal controls will prevent all error or fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Due to the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected. To address the material weaknesses, we performed additional analysis and other post-closing procedures in an effort to ensure our consolidated financial statements included in this quarterly report have been prepared in accordance with generally accepted accounting principles. Accordingly, management believes that the financial statements included in this report fairly present in all material respects our financial condition, results of operations and cash flows for the periods presented.
Changes in Internal Control Over Financial Reporting
There were no changes in our internal control over financial reporting that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
| 19 |
PART II OTHER INFORMATION
Item 1. Legal Proceedings
None.
Item 1A. Risk Factors
Not Applicable.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
On January 1, 2021, the Company issued 12,500 (250,000 pre-stock split) shares of Common Stock and warrant to purchase 250,000 shares of Common Stock on or before January 1, 2026 at an exercise price of $2.00 per share to a third party for consulting services.
During the six months ended June 30, 2021 the Company issued 2,040,990 (40,819,800 pre-stock split) shares of common stock and warrants in a private offering for $4,081,980.
During the six months ended June 30, 2021 the Company is committed to issued 370,000 (7,400,000 pre-stock split) shares of common stock to third party consultants pursuant to consulting agreements valued at $1,588,000.
During the six months ended June 30, 2021 the Company issued 259,808 (5,196,154 pre-stock split) shares of common stock to third party consultants valued at $741,159.
During the six months ended June 30, 2021 the Company issued 150,000 (3,000,000 pre-stock split) shares of common stock to third party consultants valued at $390,000.
During the six months ended June 30, 2021 the Company issued 62,006 (1,240,111 pre-stock split) shares of common stock pursuant to a settlement agreement with a note holder valued at $111,610.
During the six months ended June 30, 2021 the Company issued 204,622 (4,092,431 pre-stock split) shares of common stock pursuant to a settlement agreement with a note holder valued at $368,320. During the same period the convertible promissory note holder exercised 39,512 (790,243 pre-stock split) warrants on a cashless basis for 39,512 (790,243 pre-stock split) shares common stock.
The shares and warrants listed herein were issued to the investors without registration under the Securities Act of 1933 based upon exemptions from registration provided under Section 4(2) of the Act and Regulation D promulgated thereunder. The issuances did not involve any public offering; no general solicitation or general advertising was used in connection with the offering.
Item 3. Defaults Upon Senior Securities
None.
Item 4. Mine Safety Disclosures
Not applicable.
Item 5. Other Information
Not Applicable.
| 20 |
Item 6. Exhibits
| EXHIBIT NO. | DESCRIPTION | |
| 31.1 | Section 302 Certification of Chief Executive Officer | |
| 31.2 | Section 302 Certification of Chief Financial Officer | |
| 32.1 | Section 906 Certifications of Chief Executive Officer and Chief Financial Officer | |
| 101.INS | XBRL Instance Document | |
| 101.SCH | XBRL Taxonomy Extension Schema Document | |
| 101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. | |
| 101.LAB | XBRL Taxonomy Extension Label Linkbase Document. | |
| 101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. | |
| 101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. |
| 21 |
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| WORKSPORT LTD. | ||
| Dated: August 16, 2021 | By: | /s/ Steven Rossi |
| Steven Rossi | ||
| Chief Executive Officer | ||
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| WORKSPORT LTD. | ||
| Dated: August 16, 2021 | By: | /s/ Michael Johnston |
| Michael Johnston | ||
| Chief Financial Officer and Accounting Officer |
| 22 |