Warrants

12 Months Ended

Dec. 31, 2023

Schedule Of Warrants Activity

Warrants

18. Warrants

During the year ended December 31, 2023, in connection to the sale of 1,925,000 shares of common stock the Company also sold 1,575,000 pre-funded warrants and 7,000,000 warrants convertible for 8,575,000 shares of common stock at an exercise price of $0.0001 and $1.34, respectively. The Company received net proceeds of $2,110,342 associated with the sale of the pre-funded warrants. The pre-funded warrants are exercisable immediately with no expiration date. The warrants are exercisable six months after issuance and will expire five and a half years from the issuance date.

During the year ended December 31, 2023, 887,000 pre-funded warrants were exercised for 887,000 shares of common stock for $89.

During the year ended December 31, 2023, the Company and a stock options holder agreed to cancel all 400,000 stock options in exchange for extending the exercisable period of 300,000 warrants to December 31, 2024. Later in the year ended December 31, 2023, the expiration date for these warrants was extended to December 31, 2026, and the stock option holder was issued an additional 400,000 restricted stock units.

During the year ended December 31, 2022, an aggregate of 250,121 warrants were exercised primarily on a cashless basis for 73,321 common shares, and 1,599,179 Reg-A public offering and private placement warrants expired.

Worksport Ltd.

Notes to the Consolidated Financial Statements

December 31, 2023 and 2022

18. Warrants (continued)

During the year ended December 31, 2022, the Company and a warrant holder reached an agreement to extend the exercisable period of 300,000 warrants, convertible to 2 shares of common stock each, for an additional 12 months.

During the year ended December 31, 2021, the Company and warrant holder reached an agreement to amend a previous warrant agreement. The Company issued 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 share of common stock, each exercisable at $2 per share. During the year ended December 31, 2022, the warrants were exercised on a cashless basis for 73,321 shares of common stock.

During the year ended December 31, 2021, the Company issued 130,909 representative warrants to the Company’s underwriters. The representative warrants were not exercisable until January 30, 2022. The representative warrants are exercisable for 130,909 shares of common stock at $6.05 per share until August 3, 2024. As of December 31, 2022, the Company recognized a value of $273,993 for the representative warrants to share issuance cost.

As of December 31, 2023, the Company has the following warrants outstanding:

Exercise price		Number outstanding		Remaining Contractual Life (Years)		Expiry date
$	6.05		3,446,515		0.60	August 6, 2024
$	6.05		130,909		0.59	August 3, 2024
$	4.00		300,000		3.00	December 31, 2026
$	2.40		62,500		1.22	March 20, 2025
$	1.34		7,000,000		5.34	May 2, 2029
$	0.0001		688,000		N/A	Never – see note 22
			11,627,924		2.04

	December 31, 2023					December 31, 2022
	Number of warrants			Weighted average price		Number of warrants			Weighted average price
Balance, beginning of year		3,939,924		$	5.84		5,652,827		$	5.14
Issuance		8,575,000		$	1.09		130,909		$	6.05
Expired		-		$	-		(1,593,691	)	$	(4.00	)
Exercise		(887,000	)	$	0.0001		(250,121	)	$	(2.00	)
Balance, end of period		11,627,924		$	2.78		3,939,924		$	5.84