Shareholders’ Equity (Deficit)

3 Months Ended

Mar. 31, 2022

Equity [Abstract]

Shareholders’ Equity (Deficit)

7. Shareholders’ Equity (Deficit)

During three months ended March 31, 2022, the following transactions occurred:

During the three months ended March 31, 2022 The Company issued 10,000 common shares to a consultant for services received valued at $86,000, $66,329 was issued from share subscriptions payable. During the same period the Company issued 40,000 common shares for consulting services valued at $86,400.

During the three months ended March 31, 2022 the Company recognized consulting expense of $1,482 to share subscriptions payable from restricted shares issued during the year ended December 31, 2021. As of March 31, 2022, the restricted shares have not been issued.

Refer to note 18 for additional shareholders’ equity (deficit).

During three months ended March 31, 2021, the following transactions occurred:

During the three months ended March 31, 2021, the Company issued a total of 1,502,410 (pre-stock split 30,048,199) common shares relating to the Reg-A public offering. Of the shares issued 15,500 (pre-stock split of 310,000) common shares valued at $31,200 were from share subscription payable and 750 (pre-stock split of 15,000) common shares were cancelled and refunded valued at $1,500. The Company raised $3,003,321 and incurred share issuance cost of $59,160.

During the same period 733,023 (pre-stock split 14,660,450) Reg-A public offering warrants were exercised for 733,023 (pre-stock split 14,660,450) common shares. As of March 31, 2021 729,990 (pre-stock split 14,559,800) common shares were issued valued at $2,919,975. Subsequent to March 31, 2021 the remaining 3,033 (pre-stock split 60,650) common shares valued at $12,130 were issued.

During the three month period ended March 31, 2021 the Company raised $3,081,981 through private placement offerings for 1,540,990 (pre-stock split 30,819,800) common shares and warrants. As of March 31, 2021, the Company issued 1,524,990 (pre-stock split 30,499,800) shares of common stock. As of March 31, 2021, the Company has 16,000 (pre-stock split 320,000) common shares of to be issued. Subsequent to the period ended the Company issued the remaining 16,000 (pre-stock split 320,000) common shares.

During the three months ended March 31, 2021 the Company entered into consulting agreements with third party consultants for 370,000 (pre-stock split 7,400,000) shares of common stock valued at $1,522,000 for prepaid consulting services. As of March 31, 2021 the Company recorded $111,222 in share subscriptions payable.

Worksport Ltd.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

7. Shareholders’ Equity (Deficit) (continued)

During the three months ended March 31, 2021 the Company issued 166,058 (pre-stock split 3,321,154) common shares valued at $269,911 for consulting services, $241,559 were issued from share subscriptions payable. During the same period the Company issued 150,000 (pre-stock split 3,000,000) common shares valued at $300,000 for consulting services.

During the three months ended March 31, 2021 the Company issued entered into a settlement agreement with a loan holder to issue 62,006 (pre-stock split 1,240,111) common shares for all outstanding loan principal and interest valued at $111,610. Refer to note 16. Subsequent to the three month ended March 31, 2021 the 62,006 (pre-stock split 1,240,111) common shares were issued.

During the three months ended March 31, 2021 the Company entered into a settlement agreement with the convertible promissory note holder to settle all outstanding principal and interest. The Company issued 206,621 (pre-stock split 4,092,431) common shares valued at $368,320. During the same period the convertible promissory note holder exercised 790,243 warrants on a cashless basis for 39,512 (pre-stock split) 790,243 common shares. Refer to note 8 and 19.

Refer to note 17 for additional shareholders’ equity (deficit) for consulting expense of $37,000 related to warrant issuance.

During the year ended December 31, 2021, the Company completed a share consolidation of the Company’s issued and outstanding common shares based on twenty (20) pre-consolidation shares to one (1) post-consolidation share. As a result of the share consolidation a anti-dilution clause was triggered resulting in the Company issuing 237,500 common shares valued at $86,688.

As of March 31, 2022, the Company was authorized to issue 299,000,000 shares of its common stock with a par value of $0.0001. All shares were ranked equally with regards to the Company’s residual assets. During 2022 and 2021, the Company was authorized to issue 100 shares of its Series A and 100,000 Series B Preferred Stock with a par value of $0.0001. Series A preferred Stock have voting rights equal to 0 shares of common stock, per share of preferred stock. Series B preferred Stock have voting rights equal to 10,000 shares of common stock, per share of preferred stock.