Warrants

12 Months Ended

Dec. 31, 2021

Warrants

Warrants

22. Warrants

During the year ended December 31, 2021, a total of 2,488,721 warrants were exercised for 2,287,511 common shares. 1,637,709 warrants were exercised at $4.00 per share, 317,000 warrants were exercised at $6.05 per share and 494,500 warrants were exercised on a cashless basis for 293,290 common shares. During the same period the 39,512 warrants were exercised on a cashless basis related to a convertible promissory note, please refer to note 9. As of December 31, 2021 2,287,511 common shares were issued from warrant exercises.

During the year ended December 31, 2021, the Company issued 1,502,409 and 2,040,990 warrants convertible to 1 and 2 common shares each exercisable for a period of 12 and 18 months respectively. The warrants were issued in connection with the Reg-A public offering and private placement offering respectively. The exercise price of the warrants is $4.00 per share. During the same period the Company issued 3,763,636 warrants convertible to 1 common share at an exercise price of $6.05 per share exercisable for a period of 36 months. 3,272,727 warrants were purchased through the underwritten public offering and 490,909 over-allotment warrants purchased by the underwriter. The warrants were issued in connection with the underwritten public offering.

During the year ended December 31, 2021 the Company and warrant holder reached an agreement to amend a previous warrant agreement. The Company will issue an additional 150,000 warrants for a total of 250,000 warrants valued at $37,000. The exercisable period of the warrants was also amended to a period of five years beginning on January 14, 2021. The warrants are convertible to 1 common share each exercisable at $2 per share.

During the year ended December 31, 2021 the Company issued 130,909 representative warrants to the Company’s underwriters. The representative warrants are not exercisable until January 30, 2022. The representative warrants are exercisable for 130,909 common shares at $6.05 per share until August 3, 2024. As of December 31, 2021 the Company has not valued the representative warrants.

During the year ended December 31, 2021 26,815 warrants expired

As of December 31, 2021, the Company has the following warrants outstanding:

Exercise price		Number outstanding		Remaining Contractual Life (Years)		Expiry date
$	4.00		202,701		0.07	February 24, 2022
$	4.00		1,690,990		0.75	October 1, 2022
$	6.05		3,446,636		2.60	August 6, 2024
$	2.00		5,488		3.16	February 25, 2025
$	2.40		62,500		3.22	March 20, 2025
$	40.00		250,000		4.04	January 14, 2026
			5,658,315		2.31

	December 31, 2021						December 31, 2020
	Number of warrants			Weighted average price			Number of warrants		Weighted average price
Balance, beginning of year		716,815		$	4.00			-	$	-
Issuance		7,457,036		$	4.30			716,815	$	4.00
Expired		(26,815	)	$	4.00			-	$	-
Exercise		(2,488,721	)	$	(4.00	)		-	$	-
Balance, end of period		5,658,315		$	4.30			716,815	$	4.00

Worksport Ltd.

Notes to the Consolidated Financial Statements

December 31, 2021 and 2020