Promissory Notes

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Promissory Notes

8. Promissory Notes

The following tables shows the balance of the notes payable as of December 31, 2021 and 2020:

Balance as at December 31, 2019	$	267,881
Reclassification		99,177
Balance as at December 31, 2020	$	367,058
Repayment		(103,847	)
Balance as at December 31, 2021	$	263,211

During the year ended December 31, 2020, the Company reclassified $99,177 from accounts payable to promissory notes and from promissory notes to other receivable. The terms of the note is under negotiation and is currently due on demand.

During the year ended December 31, 2016, the Company issued a secured promissory note in the amount of $73,452 ($123,231 Canadian Dollars), respectively. During the year ended December 31, 2018, the Company issued two additions to the original unsecured promissory note of July 2016, totaling $22,639 ($30,884 Canadian dollars). The secured promissory note bears interest at a rate of 18% per annum. The payment terms of the original note including these additions are due “upon completion of going public on the Canadian Securities Exchange, with no change in interest rate. The secured promissory note is secured by all present and after-acquired property and assets of the Company. During the year ended December 31, 2019, the Company extended the maturity dates of the secured promissory notes to be due on April 1, 2021. As at December 31, 2021, principal balance owing was $96,091 ($123,231 Canadian Dollars) (2020 - $96,091 ($123,231 Canadian Dollars)). As of December 31, 2021, the accrued interest on this note payable was $66,380 ($86,284 Canadian Dollars) (2020 - 48,770 ($64,102 Canadian Dollars)) included in accounts payable and accrued liabilities. As of December 31, 2021, the Company and the secured promissory note holder are in dispute.

During the year ended December 31, 2016, the Company issued secured promissory notes in the amount of $79,000. The secured promissory notes bears interest at a rate of 18% per annum, payable monthly. The secured promissory notes are secured by all present and after-acquired property and assets of the Company. During the year ended December 31, 2019, the Company extended the maturity dates of all secured promissory notes to be due on April 1, 2021. As at December 31, 2021 principal balance owing was $79,000 (2020 - $79,000). As of December 31, 2021, the accrued interest on this note payable was $45,181 (2020 – $31,000) included in accounts payable and accrued liabilities. As of December 31, 2021, the Company and the secured promissory note holder are in dispute.

During the years ended December 31, 2017, the Company issued secured promissory notes in the amount of $53,848 ($67,700 Canadian Dollars). The secured promissory notes were due in October and November 2018 and bears interest at a rate of 12% per annum. The secured promissory notes are secured by Company inventory and personal assets held by the CEO. During the year ended December 31, 2019, the Company extended the maturity date of the secured promissory notes to November 3, 2020. During the year ended December 31, 2021, the Company and promissory note holders reached an agreement to repay $62,905 ($80,108 Canadian Dollars) in cash for outstanding principal of $53,848 and interest of $14,740. As a result of the Company recognized a gain on settlement of debt of $5,682. As of December 31, 2021 the secured promissory notes has been settled.

During the years ended December 31, 2017, the Company issued secured promissory notes in the amount of $60,000. The secured promissory notes are due in August and November 2018 and bear interest at a rate of 12% per annum. The secured promissory notes are secured by Company inventory and personal assets held by the CEO. During the year ended December 31, 2019 the Company extended the maturity dates of this secured promissory note to November 3, 2020. During the year ended December 31, 2019, the Company made a principal repayment of $10,000. During the year ended December 31, 2021 the Company and secured promissory note holder agreed to repay all outstanding principal and interest through the issuance of 36,048 post-stock split common shares valued at $0.09 per share. As at December 31, 2021, the Company had recorded principal and interest of $73,886 as a result of the share repayment the Company recognized a gain on settlement of $8,997. As of December 31, 2021 the secured promissory notes has been repaid in full.

The amounts repayable under promissory notes and secured promissory notes at December 31, 2021 and 2020 are as follows:

	2021			2020
Balance owing	$	263,211		$	367,058
Less amounts due within one year		(263,211	)		(367,058	)
Long-term portion	$	-		$	-

Worksport Ltd.

Notes to the Consolidated Financial Statements

December 31, 2021 and 2020