Basis of Presentation and Business Condition	12 Months Ended
Dec. 31, 2021
Accounting Policies [Abstract]
Basis of Presentation and Business Condition	2. Basis of Presentation and Business Condition a) Statement of Compliance The Company’s financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) as issued by the Financial Accounting Standards Board (“FASB”). b) Basis of Measurement The Company’s financial statements have been prepared on the accrual basis. c) Consolidation The Company’s consolidated financial statements consolidate the accounts of the Company and its wholly owned subsidiaries. All intercompany transactions, balances and unrealized gains or losses from intercompany transactions have been eliminated upon consolidation. d) Functional and Presentation Currency These consolidated financial statements are presented in United States Dollars. The functional currency of the Company and its subsidiaries are United States Dollar. For purposes of preparing these consolidated financial statements, transactions denominated in Canadian Dollar were converted to United States Dollar at the spot rate. Transaction gains and losses resulting from fluctuations in currency exchange rates on transactions denominated in currencies other than the functional currency are recognized as incurred in the accompanying consolidated statement of operations and comprehensive loss. e) Use of Estimates The preparation of 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 financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. f) 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 December 31, 2021, the Company had working capital of $32,235,216 (2020 – working capital deficiency of $33,289) and an accumulated deficit of $20,849,805 (2020 - $12,866,033). As of December 31, 2021, the Company had cash and cash equivalents of $28,567,333 (2020 - $1,107,812). Based on its current operating plans, the Company believes it has sufficient level of funding for anticipated operations, capital expenditures and debt repayments for a period of at least 12 months from the issuance date of this Annual Report. During the year ended December 31, 2021 the Company through its Reg-A public offering, private placement offering, unwritten public offering and exercises of warrants had raised in aggregate of approximately $32,500,000. Based on the Company’s future operating plans, existing cash of $28,567,333, combined with possible warrants exercises of approximately $38,500,000; management believes the Company have sufficient funds to meet its contractual obligations and working capital requirements for the next 12 months and the foreseeable future. Worksport Ltd. Notes to the Consolidated Financial Statements December 31, 2021 and 2020 2. Basis of Presentation and Business Condition (continued) g) Reclassification Certain amounts in the prior period Consolidated Statements of Cash Flows for the year ended December 31, 2020 have been reclassified to conform with current period presentation. The Company reclassified $31,193 of changes from accounts payable and accrued liabilities under operating assets and liabilities to repayment of lease liability under financing activities. This reclassification resulted in a decrease in net cash used by operating activities from $726,304 to $695,112 and decrease in net cash provided by financing activities from $1,838,850 to $1,807,657. This reclassification did not have any effect on the reported results of operations.

Basis of Presentation and Business Condition

12 Months Ended

Dec. 31, 2021

Basis of Presentation and Business Condition

2. Basis of Presentation and Business Condition

a) Statement of Compliance

The Company’s financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) as issued by the Financial Accounting Standards Board (“FASB”).

b) Basis of Measurement

The Company’s financial statements have been prepared on the accrual basis.

c) Consolidation

The Company’s consolidated financial statements consolidate the accounts of the Company and its wholly owned subsidiaries. All intercompany transactions, balances and unrealized gains or losses from intercompany transactions have been eliminated upon consolidation.

d) Functional and Presentation Currency

These consolidated financial statements are presented in United States Dollars. The functional currency of the Company and its subsidiaries are United States Dollar. For purposes of preparing these consolidated financial statements, transactions denominated in Canadian Dollar were converted to United States Dollar at the spot rate. Transaction gains and losses resulting from fluctuations in currency exchange rates on transactions denominated in currencies other than the functional currency are recognized as incurred in the accompanying consolidated statement of operations and comprehensive loss.

e) Use of Estimates

The preparation of 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 financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.

f) 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 December 31, 2021, the Company had working capital of $32,235,216 (2020 – working capital deficiency of $33,289) and an accumulated deficit of $20,849,805 (2020 - $12,866,033). As of December 31, 2021, the Company had cash and cash equivalents of $28,567,333 (2020 - $1,107,812). Based on its current operating plans, the Company believes it has sufficient level of funding for anticipated operations, capital expenditures and debt repayments for a period of at least 12 months from the issuance date of this Annual Report.

During the year ended December 31, 2021 the Company through its Reg-A public offering, private placement offering, unwritten public offering and exercises of warrants had raised in aggregate of approximately $32,500,000.

Based on the Company’s future operating plans, existing cash of $28,567,333, combined with possible warrants exercises of approximately $38,500,000; management believes the Company have sufficient funds to meet its contractual obligations and working capital requirements for the next 12 months and the foreseeable future.

Worksport Ltd.

Notes to the Consolidated Financial Statements

December 31, 2021 and 2020

2. Basis of Presentation and Business Condition (continued)

g) Reclassification

Certain amounts in the prior period Consolidated Statements of Cash Flows for the year ended December 31, 2020 have been reclassified to conform with current period presentation. The Company reclassified $31,193 of changes from accounts payable and accrued liabilities under operating assets and liabilities to repayment of lease liability under financing activities. This reclassification resulted in a decrease in net cash used by operating activities from $726,304 to $695,112 and decrease in net cash provided by financing activities from $1,838,850 to $1,807,657. This reclassification did not have any effect on the reported results of operations.