Convertible Promissory Notes	6 Months Ended
Jun. 30, 2021
Debt Disclosure [Abstract]
Convertible Promissory Notes	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 $544,425 to be paid in tranches. As additional consideration for the purchase of the note, (I) the Company issued to Leonite 22,500 (450,000 pre-stock split) common shares, and (ii) the Company issued to Leonite a five-year warrant to purchase 45,000 (900,000 pre-stock split) common shares at an exercise price of $2.00 ($0.10 pre-stock split) per share (subject to adjustment), which may be exercised on a cashless basis. Refer to note 14 for warrant valuation. The note carries an original issue discount of $44,425 to cover Leonite’s legal fees, accounting fees, due diligence fees and/or other transactional costs incurred in connection with the purchase of the note. Therefore, the purchase price of the note was $500,000. On February 28, 2020, the Company recorded $198,715, $182,500 principal and $16,215 original issue discount. On September 1, 2020 the Company recorded an additional $310,322, $285,000 principal and $25,322 original issue discount. As of June 30, 2021, the Company has recorded $509,037, $467,500 principal and $41,537 original issue discount. Furthermore, the Company issued 22,500 (450,000 pre-stock split) shares of common stock valued at $123,390 and a debt-discount related to the warrants valued at $344,110. During the year ended December 31, 2020 Leonite converted $226,839 of convertible promissory note into 126,022 ( 2,520,434 pre-stock split) common shares at $1.80 ($0.09 pre-stock split) per share. The original value of the convertible note converted was $182,565 as a result the Company recognized a loss of $44,274 on settlement of debt. During the six months ended June 30, 2021 Leonite converted its remaining outstanding principal and interest into common share. Leonite received 204,622 (4,092,431 pre-stock split) common shares at $1.80 ($0.09 pre-stock split) per share valued at $368,319. The original value of the convertible note converted including interest was $325,667. As a result the Company recognized a loss of $42,651 on settlement of debt. In connection with the settlement the Company expensed the remaining $148,027 of the original debt discount to interest expense. As of June 30, 2021 the convertible promissory note has been repaid in full. The Company amortized $58,146 (2020 - $11,677) of financing costs related to the shares and warrants for the six months ended June 30, 2021. The remaining net balance of the note at June 30, 2021 is $0 (2020 - $12,715) comprised of principal of $0 (2020 - $183,538) and net of unamortized debt discount of $0 (2020 - $170,823). Worksport Ltd. Notes to the Condensed Consolidated Financial Statements (Unaudited)

Convertible Promissory Notes

6 Months Ended

Jun. 30, 2021

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 $544,425 to be paid in tranches. As additional consideration for the purchase of the note, (I) the Company issued to Leonite 22,500 (450,000 pre-stock split) common shares, and (ii) the Company issued to Leonite a five-year warrant to purchase 45,000 (900,000 pre-stock split) common shares at an exercise price of $2.00 ($0.10 pre-stock split) per share (subject to adjustment), which may be exercised on a cashless basis. Refer to note 14 for warrant valuation.

The note carries an original issue discount of $44,425 to cover Leonite’s legal fees, accounting fees, due diligence fees and/or other transactional costs incurred in connection with the purchase of the note. Therefore, the purchase price of the note was $500,000. On February 28, 2020, the Company recorded $198,715, $182,500 principal and $16,215 original issue discount. On September 1, 2020 the Company recorded an additional $310,322, $285,000 principal and $25,322 original issue discount. As of June 30, 2021, the Company has recorded $509,037, $467,500 principal and $41,537 original issue discount. Furthermore, the Company issued 22,500 (450,000 pre-stock split) shares of common stock valued at $123,390 and a debt-discount related to the warrants valued at $344,110. During the year ended December 31, 2020 Leonite converted $226,839 of convertible promissory note into 126,022 ( 2,520,434 pre-stock split) common shares at $1.80 ($0.09 pre-stock split) per share. The original value of the convertible note converted was $182,565 as a result the Company recognized a loss of $44,274 on settlement of debt. During the six months ended June 30, 2021 Leonite converted its remaining outstanding principal and interest into common share. Leonite received 204,622 (4,092,431 pre-stock split) common shares at $1.80 ($0.09 pre-stock split) per share valued at $368,319. The original value of the convertible note converted including interest was $325,667. As a result the Company recognized a loss of $42,651 on settlement of debt. In connection with the settlement the Company expensed the remaining $148,027 of the original debt discount to interest expense. As of June 30, 2021 the convertible promissory note has been repaid in full.

The Company amortized $58,146 (2020 - $11,677) of financing costs related to the shares and warrants for the six months ended June 30, 2021. The remaining net balance of the note at June 30, 2021 is $0 (2020 - $12,715) comprised of principal of $0 (2020 - $183,538) and net of unamortized debt discount of $0 (2020 - $170,823).

Worksport Ltd.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)