Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For Quarterly Period Ended: September 30, 2024

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File No. 001-40681

Worksport Ltd.

(Exact Name of Small Business Issuer as specified in its charter)

Nevada		35-2696895
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification No.)

2500 N America Dr, West Seneca, NY		14224
(Address of principal executive offices)		(Zip Code)

Registrant’s Telephone Number, including area code: (888) 554-8789

Securities registered pursuant to Section 12(b) of the Act:

Title of each class:		Trading Symbol(s)		Name of each exchange on which registered:
Common Stock		WKSP		The Nasdaq Stock Market LLC

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit post such files). Yes ☒ No ☐

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of November 13, 2024, the Registrant had 32,937,609 shares of common stock, par value $0.0001 per share, issued and outstanding.

WORKSPORT LTD.

TABLE OF CONTENTS

		Page
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements.
Condensed Consolidated Balance Sheets as at September 30, 2024 (Unaudited) and December 31, 2023		3
Condensed Consolidated Statements of Operations and Comprehensive Loss for the three and nine months ended September 30, 2024 and 2023 (Unaudited)		4
Condensed Consolidated Statements of Shareholders’ Equity for the three and nine months ended September 30, 2024 and 2023 (Unaudited)		5
Condensed Consolidated Statements of Cash Flow for the nine months ended September 30, 2024 and 2023 (Unaudited)		7
Notes to the Condensed Consolidated Financial Statements (Unaudited)		8

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		19

Item 3. Quantitative and Qualitative Disclosures About Market Risk		28

Item 4. Controls and Procedures		28

PART II OTHER INFORMATION		29

Item 1. Legal Proceedings		29

Item 1A. Risk Factors		29

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		29

Item 3. Defaults Upon Senior Securities		29

Item 4. Mine Safety Disclosures		29

Item 5. Other Information		29

Item 6. Exhibits		30

SIGNATURES		31

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Worksport Ltd.

Condensed Consolidated Balance Sheets

	September 30, 2024 (Unaudited)			December 31, 2023
Assets
Current Assets
Cash and cash equivalents	$	1,857,685		$	3,365,778
Accounts receivable, net		466,442			463,122
Other receivable		153,967			165,865
Inventory (note 4)		6,138,060			3,631,492
Related party loan (note 8)		14,303			-
Prepaid expenses and deposits (note 5)		256,600			1,497,249
Total Current Assets		8,887,057			9,123,506
Investments (note 10)		90,731			90,731
Property and Equipment, net (note 6)		13,966,210			14,483,436
Right-Of-Use Asset, net (note 11)		658,152			917,354
Intangible Assets, net		1,337,008			1,338,889
Total Assets	$	24,939,158		$	25,953,916
Liabilities and Shareholders’ Equity
Current Liabilities
Accounts payable and accrued liabilities	$	2,456,000		$	1,451,181
Payroll taxes payable		111,591			85,010
Related party loan (note 8)		-			2,192
Current portion – Long term debt (note 12)		190,000			5,300,000
Current lease liability (note 11)		248,540			328,229
Total Current Liabilities		3,006,131			7,166,612
Long Term – Lease Liability (note 11)		433,214			608,761
Long Term Debt (note 12)		5,136,738			-
Total Liabilities		8,576,083			7,775,373

Shareholders’ Equity
Series A & B Preferred Stock, $0.0001 par value, 100,100 shares authorized, 100 Series A and 0 Series B issued and outstanding, respectively (note 7)		-			-
Common stock, $0.0001 par value, 299,000,000 shares authorized, 30,920,397 and 17,436,805 shares issued and outstanding, respectively (note 7)		3,092			2,032
Additional paid-in capital		72,512,085			64,685,693
Share subscriptions receivable		(1,577	)		(1,577	)
Share subscriptions payable		4,034,205			1,814,152
Accumulated deficit		(60,176,150	)		(48,313,177	)
Cumulative translation adjustment		(8,580	)		(8,580	)
Total Shareholders’ Equity		16,363,075			18,178,543
Total Liabilities and Shareholders’ Equity	$	24,939,158		$	25,953,916

The accompanying notes form an integral part of these condensed consolidated financial statements.

Worksport Ltd.

Condensed Consolidated Statements of Operations and Comprehensive Loss

For the Three and Nine Months Ended September 30, 2024 and 2023

(Unaudited)

	2024			2023			2024			2023
	Three Months ended September 30,						Nine Months ended September 30,
	2024			2023			2024			2023

Net Sales	$	3,122,359		$	458,483		$	5,556,535		$	690,259
Cost of Goods Sold		2,875,186			368,796			4,975,277			541,841
Gross Profit		247,173			89,687			581,258			148,418

Operating Expenses
General and administrative		2,875,255			3,091,488			8,495,959			6,965,901
Sales and marketing		661,238			380,847			1,206,807			1,473,910
Professional fees		621,728			539,126			2,332,069			2,899,190
(Gain) loss on foreign exchange		(5,832	)		(2,265	)		1,853			(2,407	)
Total operating expenses		4,152,389			4,009,196			12,036,688			11,336,594
Loss from operations		(3,905,216	)		(3,919,509	)		(11,455,430	)		(11,188,176	)

Other Income (Expense)
Interest expense		(229,701	)		(113,838	)		(487,463	)		(466,830	)
Interest income		-			38,992			3,054			237,598
Rental income (note 17)		-			45,057			76,866			139,892
Gain on settlement of debt		-			-			-			7,493
Total other income (expense)		(229,701	)		(29,789	)		(407,543	)		(81,847	)

Net Loss	$	(4,134,917	)	$	(3,949,298	)	$	(11,862,973	)	$	(11,270,023	)

Loss per Share (basic and diluted)	$	(0.14	)	$	(0.23	)	$	(0.47	)	$	(0.65	)
Weighted Average Number of Shares (basic and diluted)		29,432,794			17,429,685			25,540,754			17,252,521

The accompanying notes form an integral part of these condensed consolidated financial statements.

Worksport Ltd.

Condensed Consolidated Statements of Shareholders’ Equity

For the Three Months Ended September 30, 2024 and 2023

(Unaudited)

	Shares		Amount		Shares		Amount		Capital		Receivable			Payable			Deficit			Adjustment			(Deficit)
	Preferred Stock				Common Stock				Additional Paid-in		Share Subscriptions			Share Subscription			Accumulated			Cumulative Translation			Total Stockholders’ Equity
	Shares		Amount		Shares		Amount		Capital		Receivable			Payable			Deficit			Adjustment			(Deficit)
Balance at July 1, 2023		100	$	0		17,413,810	$	1,742	$	58,615,849	$	(1,577	)	$	1,494,885		$	(40,704,944	)	$	(8,580	)	$	19,397,375
Issuance for services and subscriptions payable		-		-		-		-		739,046		-			119,367			-			-			858,413
Share issuance		-		-		22,995		2		88,407		-			-			-			-			88,409
Stock option forfeiture		-		-		-		-		19,406		-			-			-						19,406
Net loss		-		-		-		-		-		-			-			(3,949,298	)		-			(3,949,298	)
Balance at September 30, 2023		100	$	0		17,436,805	$	1,744	$	59,462,708	$	(1,577	)	$	1,614,252		$	(44,654,242	)	$	(8,580	)	$	16,414,305

Balance at July 1, 2024		100	$	0		28,520,704	$	2,852	$	69,230,341	$	(1,577	)	$	5,964,290		$	(56,041,233	)	$	(8,580	)	$	19,146,093
Issuance for services and subscriptions payable		-		-		16,693		2		1,071,713		-			280,184			-			-			1,351,899
Share issuance (note 16)		-		-		2,383,000		238		2,210,031		-			(2,210,269	)		-			-			-
Net loss		-		-		-		-		-		-			-			(4,134,917	)		-			(4,134,917	)
Balance at September 30, 2024		100	$	0		30,920,397	$	3,092	$	72,512,085	$	(1,577	)	$	4,034,205		$	(60,176,150	)	$	(8,580	)	$	16,363,075

The accompanying notes form an integral part of these condensed consolidated financial statements.

Worksport Ltd.

Condensed Consolidated Statements of Shareholders’ Equity

For the Nine Months Ended September 30, 2024 and 2023

(Unaudited)

	Preferred Stock				Common Stock				Additional Paid-in			Share Subscriptions			Share Subscription			Accumulated			Cumulative Translation			Total Stockholders’ Equity
	Shares		Amount		Shares		Amount		Capital			Receivable			Payable			Deficit			Adjustment			(Deficit)
Balance at January 1, 2023		100	$	0		17,159,376	$	1,716	$	56,919,625		$	(1,577	)	$	591,289		$	(33,384,219	)	$	(8,580	)	$	24,118,254
Issuance for services and subscriptions payable		-		-		250,000		25		2,428,139			-			1,022,963			-			-			3,451,127
Share issuance		-		-		27,429		3		95,538			-			-			-			-			95,541
Stock option forfeiture		-		-		-		-		19,406			-			-			-			-			19,406
Net loss		-		-		-		-		-			-			-			(11,270,023	)		-			(11,270,023	)
Balance at September 30, 2023		100	$	0		17,436,805	$	1,744	$	59,462,708		$	(1,577	)	$	1,614,252		$	(44,654,242	)	$	(8,580	)	$	16,414,305

Balance at January 1, 2024		100	$	0		20,320,503	$	2,032	$	64,685,693		$	(1,577	)	$	1,814,152		$	(48,313,177	)	$	(8,580	)	$	18,178,543
Balance		100	$	0		20,320,503	$	2,032	$	64,685,693		$	(1,577	)	$	1,814,152		$	(48,313,177	)	$	(8,580	)	$	18,178,543
Issuance for services and subscriptions payable		-		-		333,841		33		2,896,431			-			571,858			-			-			3,468,322
Share issuance (note 7)		-		-		5,260,161		526		5,404,944			-			(2,210,269	)		-			-			3,195,201
Shares issued		-		-		5,260,161		526		5,404,944			-			(2,210,269	)		-			-			3,195,201
Warrant inducement (note 16)		-		-		2,840,000		284		(474,850	)		-			3,858,464			-			-			3,383,898
Warrant exercise (note 14)		-		-		2,165,892		217		(133	)		-			-			-			-			84
Net loss		-		-		-		-		-			-			-			(11,862,973	)		-			(11,862,973	)
Balance at September 30, 2024		100	$	0		30,920,397	$	3,092	$	72,512,085		$	(1,577	)	$	4,034,205		$	(60,176,150	)	$	(8,580	)	$	16,363,075
Balance		100	$	0		30,920,397	$	3,092	$	72,512,085		$	(1,577	)	$	4,034,205		$	(60,176,150	)	$	(8,580	)	$	16,363,075

The accompanying notes form an integral part of these condensed consolidated financial statements.

Worksport Ltd.

Condensed Consolidated Statements of Cash Flows

For the Nine Months Ended September 30, 2024 and 2023

(Unaudited)

	2024			2023
Operating Activities
Net Loss	$	(11,862,973	)	$	(11,270,023	)
Adjustments to reconcile net loss to net cash from operating activities:
Shares, options and warrants issued for services		3,105,869			4,711,868
Depreciation and amortization		1,019,867			1,019,556
Change in operating lease		3,966			(16,004	)
		(7,733,271	)		(5,554,603	)
Changes in operating assets and liabilities (note 9)		(225,941	)		(2,639,744	)
Net cash used in operating activities		(7,959,212	)		(8,194,347	)

Cash Flows from Investing Activities
Investments		-			(66,308	)
Purchase of property and equipment		(500,760	)		(3,446,161	)
Net cash used in investing activities		(500,760	)		(3,512,469	)

Financing Activities
Net change in related party loan		(16,495	)		(43,904	)
Proceeds from warrant exercise		3,746,435			-
Proceeds from issuance of common share, net of issuance cost		3,195,201			95,541
Proceeds from line of credit		7,339,525			-
Net proceeds from long term debt		1,437,998			-
Repayment of line of credit		(3,450,785	)		-
Repayment of long term debt		(5,300,000	)
Net cash received from financing activities		6,951,879			51,637

Change in cash		(1,508,093	)		(11,655,179	)
Cash, restricted cash and cash equivalents - beginning of year		3,365,778			14,620,757
Cash, restricted cash and cash equivalents end of period	$	1,857,685		$	2,965,578
Supplemental Disclosure of non-cash investing and financing activities
Shares issued for purchase of software	$	-		$	72,467
Supplemental Disclosure of cash flow information
Income tax paid	$	-		$	-
Interest paid	$	487,000		$	477,000

The accompanying notes form an integral part of these condensed consolidated financial statements.

Worksport Ltd.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

1. Basis of Presentation and Business Condition

a) Interim Financial Information

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) for interim financial information pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC). Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments and reclassifications considered necessary in order to make the financial statements not misleading and for a fair and comparable presentation have been included and are of a normal recurring nature. Operating results for the three and nine month periods ended September 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on March 28, 2024.

Worksport Ltd. (together with its subsidiaries, the “Company”) was incorporated in the State of Nevada on April 2, 2003 under the name Franchise Holdings International, Inc. (“FNHI”). In May 2020, FNHI changed its name to Worksport Ltd. During the year ended December 31, 2014, the Company completed a reverse acquisition transaction (the “Reverse Acquisition”) with TruXmart Ltd. (“TruXmart”). On May 2, 2018, TruXmart legally changed its name to Worksport Ltd. (“Worksport”). Worksport designs and distributes truck tonneau covers in Canada and the United States.

b) 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”).

c) Basis of Measurement

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

d) Consolidation

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

e) Functional and Reporting Currency

These condensed consolidated financial statements are presented in United States dollars (USD or US$). The functional currency of the Company and its subsidiaries are United States dollar. For purposes of preparing these condensed consolidated financial statements, transactions denominated in Canadian dollars (CAD or C$) were converted to United States dollars 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 condensed consolidated statement of operations.

f) Use of Estimates

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

2. Going Concern

As of September 30, 2024, the Company had $1,857,685 in cash and cash equivalents. The Company has generated only limited revenues and has relied primarily upon capital generated from public and private offerings of its securities. Since the Company’s acquisition of Worksport in fiscal year 2014, it has never generated a profit. As of September 30, 2024, the Company had an accumulated deficit of $60,176,150.

The accompanying condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. During the three and nine months ended September 30, 2024, the Company had net losses of $4,134,917 (2023 - $3,949,298) and $11,862,973 (2023 - $11,270,023). As of September 30, 2024, the Company had working capital of $5,880,926 (December 31, 2023 – $1,956,894) and had an accumulated deficit of $60,176,150 (December 31, 2023 - $48,313,177). The Company has not generated profit from operations since inception and to date has relied on debt and equity financing for continued operations. The Company’s ability to continue as a going concern is dependent upon the ability to generate cash flows from operations and obtain equity and/or debt financing. The Company intends to continue funding operations through equity and debt financing arrangements, which may be insufficient to fund its capital expenditures, working capital and other cash requirements in the long term. There can be no assurance that the steps management is taking will be successful.

Despite the Company having completed its purchasing of large manufacturing machinery for current output needs, operational costs are expected to remain elevated and, thus, further decrease cash and cash equivalents. Concurrently, the Company intends to continue its ramp-up of manufacturing and increasing sales volumes in 2024 and beyond, which should mitigate the effects of operational costs on cash and cash equivalents; this view is supported by the fact that the manufacturing facility of the Company was completed for initial production output in 2023 and started to generate revenue in the third quarter of 2023, registering its highest quarterly sales total in the Company’s history in the third quarter of 2024.

The Company has successfully raised cash and is positioned to do so again if deemed necessary or strategically advantageous. During the year ended December 31, 2021, the Company, through its Reg-A public offering, private placement offering, underwritten public offering, and exercises of warrants, raised an aggregate of approximately $32,500,000. On September 30, 2022, the Company filed a shelf registration statement on Form S-3, which was declared effective by the SEC on October 13, 2022, allowing the Company to issue up to $30,000,000 of common stock and prospectus supplement covering the offering, issuance and sale of up to $13,000,000 of common stock that may be issued and sold under an At The Market Offering Agreement dated September 30, 2022 (“ATM Agreement”), with H.C. Wainwright & Co., LLC, as the sales agent (“HCW”). Pursuant to the ATM Agreement, HCW is entitled to a commission equal to 3.0% of the gross sales price of the shares of common stock sold. As of September 30, 2024, the Company has sold and issued 604,048 shares of common stock in consideration for net proceeds of $780,356 under the ATM Agreement .

On November 2, 2023, the Company consummated a registered direct offering pursuant to which the Company issued 1,925,000 shares of common stock and 1,575,000 pre-funded warrants to an institutional investor for a total net proceeds of $4,261,542. Concurrently with the registered direct offering, the Company issued the same institutional investor 7,000,000 warrants in a private sale. The warrants are exercisable for 7,000,000 shares of common stock for $1.34 per share six months after issuance and until five and a half years from the issuance date, subject to beneficial ownership limitations as described in the warrants. The Company registered the 7,000,000 shares of common stock underlying the warrants on a Form S-1 (333-276241) which was declared effective by the SEC on December 29, 2023.

On March 20, 2024, the Company consummated a registered direct offering pursuant to which the Company issued 2,372,240 shares of common stock and 1,477,892 pre-funded warrants to the same institutional investor as in the Company’s registered direct offering on November 2, 2023, for a total net proceeds of $2,629,083. Concurrently with the registered direct offering, the Company issued the institutional investor 7,700,264 warrants in a private sale. The warrants are exercisable for 7,700,264 shares of common stock for $0.74 per share six months after issuance until five and a half years from the issuance date, subject to beneficial ownership limitations as described in the warrants. The Company registered the 7,700,264 shares of common stock underlying the warrants on a Form S-1 (333-278461) which was declared effective by the SEC on April 8, 2024.

To date, the Company’s principal sources of liquidity consist of net proceeds from public and private securities offerings and cash exercises of outstanding warrants. Management is focused on transitioning towards revenue as its principal source of liquidity by growing existing product offerings as well as the Company’s customer base. The Company cannot give assurance that it can increase its cash balances or limit its cash consumption and thus maintain sufficient cash balances for planned operations or future business developments. Future business development and demands may lead to cash utilization at levels greater than recently experienced. The Company may need to raise additional capital in the future. However, the Company cannot provide assurances it will be able to raise additional capital on acceptable terms, or at all.

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. Still, certain factors indicate the existence of a material uncertainty that cast substantial doubt about the Company’s ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty. These adjustments could be material.

3. Significant Accounting Policies

The accounting policies used in the preparation of these condensed consolidated interim financial statements are consistent with those of the Company’s audited financial statements for the year ended December 31, 2023.

4. Inventory

As of September 30, 2024 and December 31, 2023, inventory consists of the following:

Schedule of Inventory

	September 30, 2024		December 31, 2023
Finished goods	$	1,913,228	$	1,717,669
Promotional items		101,660		101,660
Raw materials		4,123,172		1,812,163
Inventory	$	6,138,060	$	3,631,492

As of September 30, 2024, the value of finished goods on-hand increased due to stockpiling of hard tonneau covers, which have higher values than stockpiled soft tonneau covers, as well as their raw materials to capitalize on demand generated from the Company’s 2024 sales campaigns.

5. Prepaid expenses and deposits

As of September 30, 2024 and December 31, 2023, prepaid expenses and deposits consist of the following:

	September 30, 2024		December 31, 2023
Consulting, services, and advertising	$	237,594	$	5,215
Deposits		19,006		1,492,034
Prepaid expenses and deposits, net	$	256,600	$	1,497,249

As of September 30, 2024, prepaid expenses and deposits consists of $237,594 (December 31, 2023 - $5,215) in prepaid consulting, services, and advertising for third party consultants through the issuance of shares and stock options. Amounts in deposits relate to prepayments for manufacturing components and finished goods.

6. Property and Equipment

As of September 30, 2024 and December 31, 2023, major classes of property and equipment consist of the following:

Schedule of Property and Equipment

	September 30, 2024			December 31, 2023
Equipment	$	3,142,683		$	2,784,098
Manufacturing equipment		3,340,463			3,260,679
Furniture		154,065			146,049
Product molds		524,476			524,476
Computers		96,056			84,070
Leasehold improvements		903,721			861,332
Building		6,079,410			6,079,410
Land		2,239,405			2,239,405
Automobile		168,497			168,497
Property and equipment, gross		168,497			168,497
Less accumulated depreciation		(2,682,566	)		(1,664,580	)
Property and Equipment, net	$	13,966,210		$	14,483,436

7. Shareholders’ Equity (Deficit)

During nine months ended September 30, 2024, the following transactions occurred:

During the nine months ended September 30, 2024, the Company sold 504,921 shares of common stock for a total net proceeds of $566,118 . The sale of shares was in connection with the shelf registration statement on Form S-3 effective on October 13, 2022, allowing the Company to issue up to $30,000,000 of common stock and prospectus supplement covering the offering, issuance and sale of up to $13,000,000 of common stock that may be issued and sold under an At The Market Offering Agreement dated as of September 30, 2022.

The Company recognized consulting expense of $753,069 to share subscriptions payable from restricted shares and stock options to be issued. As of September 30, 2024, the Company issued 333,841 restricted shares with a value of $382,700.

During the nine months ended September 30, 2024, the Company closed a sale of 2,372,240 shares of common stock for net proceeds of $1,535,591. In association with the sale of common stock, the Company issued 1,477,892 pre-funded warrants and 7,700,264 warrants totaling proceeds of $1,093,492. Refer to note 14.

During the nine months ended September 30, 2024, the Company closed a sale of 950,000 shares of common stock for proceeds of $380,000. In connection with the sale of common stock, the Company issued 1,900,000 warrants. Refer to note 14. As of September 30, 2024, the shares have not been issued.

Refer to note 14, 15 and 16 for additional shareholders’ equity (deficit) details.

During nine months ended September 30, 2023, the following transactions occurred:

The Company sold 27,429 shares of common stock for a total net proceeds of $95,541. The sale of shares was in connection with the shelf registration statement on Form S-3 effective on October 13, 2022, allowing the Company to issue up to $30,000,000 of common stock and prospectus supplement covering the offering, issuance and sale of up to $13,000,000 of common stock that may be issued and sold under an At The Market Offering Agreement dated as of September 30, 2022.

The Company recognized consulting expense of $1,022,963 to share subscriptions payable from restricted shares and stock options to be issued. As of September 30, 2023, the restricted shares have not been issued. During the same period the Company issued 250,000 shares of common stock for consulting services valued at $635,000.

Refer to note 15 for additional shareholders’ equity (deficit) details.

As of September 30, 2024, 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 regard to the Company’s residual assets. During the nine months ended September 30, 2024, 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 299 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.

8. Related Party Transactions

As of September 30, 2024, the Company has a receivable of $14,303 (December 31, 2023 – payable of $2,192) from the CEO.

9. Changes in Cash Flows from Operating Assets and Liabilities

The changes to the Company’s operating assets and liabilities for the nine months ended September 30, 2024 and 2023 are as follows:

	2024			2023
Decrease (increase) in accounts receivable	$	(3,320	)	$	(455,509	)
Decrease (increase) in other receivable		11,898			103,998
Decrease (increase) in inventory		(2,506,568	)		(2,205,697	)
Decrease (increase) in prepaid expenses and deposits		1,240,649			26,200
Increase (decrease) in payroll taxes payable		26,581			43,738
Increase (decrease) in accounts payable and accrued liabilities		1,004,819			(152,474	)
	$	(225,941	)	$	(2,639,744	)

10. Investments

During the year ended December 31, 2019, the Company entered into an agreement to purchase 10,000,000 shares of a privately owned US-based mobile phone development company for $50,000 – representing a 10% equity stake. The shares have been issued to the Company. As of September 30, 2024, and December 31, 2023, the Company had advanced a total of $24,423 and is advancing tranches of capital as required by the Company.

During the nine months ended September 30, 2024, $66,308 ($90,000 CAD) of the Company’s Guaranteed Investment Certificate (“GIC”) matured and the Company received $3,054 ($4,129 CAD) in interest income. During the same period, the Company reinvested the principal amount of $66,308 ($90,000 CAD) in a GIC. The GIC bears a variable interest rate and will mature on February 27, 2025. The anticipated earned interest on the GIC at maturity is $3,123 ($4,275 CAD).

11. Operating Lease Obligations

During the year ended December 31, 2019, the Company signed a lease agreement for warehouse space to commence on August 1, 2019 and end on July 31, 2022 with monthly lease payments of $2,221. During the year ended December 31, 2021, the Company entered into a second lease agreement for warehouse space to commence on June 1, 2021 and end on May 31, 2024 with monthly lease payments of $19,910.

During the year ended December 31, 2022, the Company signed a lease agreement for approximately 20,296 square feet to be used as its primary corporate office and R&D facility pursuant to a five-year lease, dated June 1, 2022, for a variable rate averaging $22,101 per month over the lifetime of the lease. The Company also pays approximately $4,418 in additional fees per month, which varies year to year.

During the year ended December 31, 2023, the Company signed a lease agreement for office space to be used as an R&D facility pursuant to a one-year lease with an option to extend the lease for an additional year, dated June 1, 2023, for a monthly rent of $3,350. The Company did not exercise the one year extension option for this facility.

During the nine months ended September 30, 2024, the Company signed a lease agreement for office space to be used as an R&D facility pursuant to a one-year lease with an option to extend the lease for an additional year, dated June 1, 2024, for a monthly rent of $3,600.

The Company has accounted for its leases upon adoption of ASC 842 whereby it recognizes a lease liability and a right-of-use asset at the date of initial application beginning January 1, 2019. The lease liability is measured at the present value of the remaining lease payments, discounted using the Company’s incremental borrowing rate of 10%. The Company has measured the right-of-use asset at an initial amount equal to the lease liability.

The Company’s right-of-use asset and lease liability as of September 30, 2024, and December 31, 2023, are as follows:

Schedule Right-of-use Asset

	September 30, 2024		December 31, 2023
Right-of-use asset	$	658,152	$	917,354
Current lease liability	$	248,540	$	328,229
Long-term lease liability	$	433,214	$	608,761

The following is a summary of the Company’s total lease costs:

Schedule of Lease Cost

		September 30, 2024				September 30, 2023
Operating lease cost		$	331,057			$	368,984

The following is a summary of cash paid during the nine months ended September 30, 2024 and 2023 for amounts included in the measurement of lease liabilities:

		September 30, 2024				September 30, 2023
Operating cashflow		$	328,113			$	378,102

The following are future minimum lease payments due as of September 30, 2024:


2025	$	294,437
2026		275,720
2027		187,453
Total future minimum lease payments		757,610
Less: amount representing interest		(75,856	)
Present value of future payments		681,754
Current portion		248,540
Long term portion	$	433,214

12. Long term Debt

On May 4, 2022, the Company, as the guarantor, and Worksport New York Operations Corporation (“Worksport New York”), as the borrower (the “Borrower”) entered into a secured loan agreement (the “Loan Agreement”) with an external banking entity (the “Lender”) relating to the Company’s purchase of a 152,847 square-foot building situated on two parcels of land aggregating 18 acres of land located in West Seneca, New York (collectively, the “Property”) for a total purchase price of $8,150,000 on May 6, 2022. Under the terms of the Loan Agreement, the Borrower procured a total principal sum of $5,300,000, bearing an interest rate of the prime rate plus 2.25% annually, for the Company’s purchase of the Property and covering associated costs. To ensure the loan’s servicing over its duration, the Company allocated $667,409 into a specially designated account. By the close of June 30, 2024, this account’s balance had changed to $386,164, which is recorded under cash and cash equivalents in the accompanying financial statements. As of June 30, 2024, the outstanding principal and the accrued interest was an aggregate of $5,325,664. This outstanding balance and accrued interest were due on August 10, 2024. The Company disclosed the material terms of the Loan Agreement in a Current Report on Form 8-K filed with the Securities and Exchange Commission on May 11, 2022. This loan was subsequently refinanced, which is addressed in more detail below.

On February 4, 2024, the Company and Worksport New York entered into a Forbearance Agreement with the Lender in connection with the Loan Agreement. Pursuant to the Forbearance Agreement, the Lender agreed to forbear from commencing an action for judgement of foreclosure and sale, seeking an appointment of a receiver or collecting default accrued interest under the Loan until the occurrence of a Termination Event (as defined in the Forbearance Agreement) and the Company and Worksport waived all defenses in connection with the Worksport New York failure to maintain 1.20 to 1.0 debt service coverage ratio of operating income to debt service under the Loan for each of the trailing twelve (12) months ended December 31, 2023, and the indirect sale of equity securities of Worksport New York as a result of the Company’s sale equity securities in November 2023 (the “Existing Defaults”). Pursuant to the Forbearance Agreement, the definition of “Permitted Transfers” in the Loan Agreement was amended to include the transfer of direct or indirect interest in the Company solely through a stock sale for capital raising purposes, subject to certain conditions, including no occurrence of an Event of Default (other than the Existing Defaults), change in ownership or control of the Company, no new 10% or greater owners, and no involvement of Sanctioned Persons. The Borrower was required to provide prior notice to Lender and satisfactory reporting of the results of the capital raise.

On May 14, 2024, the Company successfully negotiated an extension of the maturity date for its $5.3 million Loan Agreement that was originally due on May 20th, 2024. The Company entered into an agreement with the lender to extend the maturity date to August 10th, 2024. The Company has since refinanced this loan.

On July 19, 2024, the Company, as the guarantor, and Worksport New York Operations Corporation as well as Worksport USA Operations Corporation, entered into a $6,000,000 Revolving Financing and Assignment Agreement with an external lending entity with a maturity of 24 months from initial funding (July 2026). Upon transaction close, the Company drew down approximately $5.06 million of the Revolving Credit Facility, net of $790,000 of interest reserve required to be withheld to ensure interest payments by the Company. The Company used $4.73 million of the drawn down amount to refinance the Company’s mortgage on the Company’s real property located at 2500 North America Dr. in West Seneca, New York, and additionally drew approximately $330,000 to fund operations. At September 30, 2024, the outstanding balance of this loan was $3,888,740 (net of issuance costs).

On September 4, 2024, the Company, through its wholly owned subsidiary, Worksport USA Operations Corporation, entered into a $1,487,200 credit and security agreement with an external lending entity with a maturity of 36 months from initial funding (September 2027). Upon transaction close, the Company received net proceeds of $1,437,998 (net of issuance costs). The Company and its wholly owned subsidiary, Worksport New York Operations Corporation, serve as guarantors on the loan.

During the year ended December 31, 2020, the Company received $28,387 ($40,000 CAD) interest-free from the Government of Canada as part of the COVID-19 small business relief program. Repaying the balance of the loan on or before December 31, 2023 resulted in loan forgiveness of 25 percent (25%). As of September 30, 2022, the Company made the repayment of $28,387 ($40,000 CAD) and, as of February 14, 2023, received the forgiven debt of $7,493 ($10,000 CAD). As at September 30, 2024 and December 31, 2023, there are no amounts owing, and the loan has been fully settled.

13. Loss per Share

For the three and nine months ended September 30, 2024, loss per share is $0.14 and $0.47 (basic and diluted) compared to the three and nine months ended September 30, 2023, of $0.23 and $0.65 (basic and diluted) using the weighted average number of shares of 29,432,794 and 25,540,754 (basic and diluted) as of September 30, 2024 and 17,429,685 and 17,252,521 (basic and diluted) as of September 30, 2023, respectively.

There are 299,000,000 shares authorized with 30,920,397 and 17,436,805 shares issued and outstanding, as at September 30, 2024 and 2023, respectively. The computation of loss per share is based on the weighted average number of shares outstanding during the period in accordance with ASC Topic No. 260, “Earnings Per Share.” Shares underlying the Company’s outstanding warrants and convertible promissory notes were excluded due to the anti-dilutive effect they would have on the computation. As of September 30, 2024, the Company has 22,912,764 warrants convertible to 23,212,764 common shares, 357,018 restricted stock to be issued, 300,000 performance stock units and 5,848,056 stock options exercisable for 5,848,056 common shares for a total underlying common shares of 29,717,838. As of September 30, 2023, the Company has 3,939,924 warrants convertible to 4,239,924 shares of common stock, 170,212 restricted stock to be issued, 300,000 performance stock units and stock options exercisable for 3,576,256 shares of common stock, for a total underlying shares of common stock of 8,286,392.

14. Warrants

During the nine months ended September 30, 2024, in connection with the sale of 2,372,240 shares of common stock, the Company also sold 1,477,892 pre-funded warrants and issued 7,700,264 warrants exercisable for a total of 7,700,264 shares of common stock for $0.0001 and $0.74, respectively, per share. The Company received net proceeds of $1,093,492 associated with the sale of the pre-funded warrants. The pre-funded warrants are immediately exercisable until all of the pre-funded warrants are exercised . During the same period, 1,477,892 pre-warrants were exercised for 1,477,892 shares of common stock for $15.

During the nine months ended September 30, 2024, the Company closed a sale of 950,000 shares of common stock. In connection with the sale of common stock the Company issued 1,900,000 warrants. The warrants have an exercise price of $0.40 and an expiration date of September 21, 2029.

During the nine months ended September 30, 2024, 130,909 warrants issued on August 3, 2021 and 3,446,515 warrants issued on August 6, 2021, all of which having an exercise price of $6.05, expired.

During the year ended December 31, 2023, in connection with the sale of 1,925,000 shares of common stock in a registered direct offering, the Company also sold 1,575,000 pre-funded warrants and 7,000,000 warrants exercisable for 7,000,000 shares of common stock for $0.0001 and $1.34, respectively, per share. The Company received net proceeds of $2,110,342 associated with the sale of the pre-funded warrants. During the same period, 887,000 pre-funded warrants were exercised for 887,000 shares of common stock for $89. During the nine months ended September 30, 2024, the remaining 688,000 pre-funded warrants were exercised for 688,000 shares of common stock for $69. Further, during this same period, the Company induced the exercise of 7,000,000 warrants at a reduced exercise price of $0.5198 per share in consideration for the Company to issue new warrants to purchase up to 12,950,000 additional shares of common stock – resulting in gross proceeds of approximately $3,638,000 received by the Company.

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.

As of September 30, 2024, the Company has the following warrants outstanding:

Schedule of Warrants Exercise Price

Exercise price		Number outstanding		Remaining Contractual Life (Years)		Expiry date
$	2.40		62,500		0.47	March 20, 2025
$	4.00		300,000		2.25	December 31, 2026
$	0.74		7,700,264		4.98	September 20, 2029
$	0.40		1,900,000		4.98	September 21, 2029
$	0.52		12,950,000		5.16	November 26, 2029
			22,912,764		5.03

The average remaining contractual life of outstanding warrants that expire is 5.03 years.

Schedule of Warrants Activity

	September 30, 2024					December 31, 2023
	Number of warrants			Weighted average price		Number of warrants			Weighted average price
Balance, beginning of year		11,627,924		$	2.42		3,939,924		$	5.84
Issuance		24,028,156		$	0.55		8,575,000		$	1.09
Expired		(3,577,414	)	$	6.05		-		$	-
Exercise		(9,165,892	)	$	0.40		(887,000	)	$	0.0001
Balance, end of period		22,912,774		$	0.63		11,627,924		$	2.42

15. Stock Options and Performance Share Units

Under the Company’s 2015, 2021 and 2022 Equity Incentive Plans, the number of shares of common stock reserved for issuance under the option plan shall not exceed 10% of the issued and outstanding shares of common stock of the Company, have a maximum term of 10 years, and vest at the discretion of the Board of Directors.

All equity-settled, share-based payments are ultimately recognized as an expense in the statement of operations with a corresponding credit to “Additional Paid in Capital.” If vesting periods or other non-market vesting conditions apply, the expense is allocated over the vesting period, based on the best available estimate of the number of share options expected to vest. Estimates are subsequently revised if there is any indication that the number of share options expected to vest differs from previous estimates. Any cumulative adjustment prior to vesting is recognized in the current period. No adjustment is made to any expense recognized in prior periods if share options ultimately exercised are different than that estimated on vesting.

Performance Share Units

On May 1, 2023, the Company and Steven Rossi reached an agreement to modify 1,600,000 restricted stock units and 400,000 performance stock units issued on November 11, 2022, and December 29, 2021, respectively, and replace them with 2,000,000 stock options, as described below.

On November 11, 2022, 700,000 performance stock units (“PSUs”) granted on December 29, 2021, were modified to include new terms pertaining to the PSU vesting schedule. On December 29, 2021, the Company granted 400,000 and 300,000 performance stock units (“PSUs”) to the Company’s Chief Executive Officer and a director, respectively.

Stock Options

The Company uses the Black-Scholes option pricing model to determine fair value of stock options on the grant date.

On July 23, 2024, the Company engaged in stock option repricing for certain employees, executive officers, and members of the board of directors of the Company. 5,388,956 stock options’ exercise prices were repriced to $0.7042, and all other criteria were unchanged. As a result of the modification in exercise prices, the Company recognized additional expense of $93,140 on the date of modification.

During the nine months ended September 30, 2024, the Company issued 804,600 stock options to employees and directors with exercise prices ranging from $0.57 to $1.37 and expiration dates ranging from February 1, 2029 to July 28, 2034. Of these stock options, 8,300 were subsequently cancelled.

During the year ended December 31, 2023, the Company issued 4,743,356 stock options to employees, directors, and consultants with exercise prices ranging from $1.44 to $4.20 and expiration dates ranging from January 30, 2028 to October 31, 2033. Of these stock options, 81,600 were subsequently cancelled.

	September 30, 2024						December 31, 2023
	Number of stock options			Weighted average price			Number of stock options			Weighted average price
Balance, beginning of period		5,063,856		$	1.96			785,000		$	4.74
Granted		804,600		$	0.78			4,743,356		$	1.80
Cancelled		(20,400	)	$	(2.31	)		(464,500	)	$	(5.02	)
Balance, end of period		5,848,056		$	0.73			5,063,856		$	1.96

		Range of Exercise prices				Outstanding				Weighted average life (years)				Weighted average exercise price				Exercisable on September 30, 2024
Stock options		$	0.57-5.50				5,848,056				8.19			$	0.73				1,798,750

As of September 30, 2024 and December 31, 2023, Terravis Energy Inc., a wholly owned subsidiary of the Company, has the following options outstanding:

Schedule of Stock Options Activity

	September 30, 2024				December 31, 2023
	Number of stock options		Weighted average price		Number of stock options		Weighted average price
Balance, beginning of period		1,350,000	$	0.01		1,350,000	$	0.01
Granted		-	$	-		-	$	-
Balance, end of period		1,350,000	$	0.01		1,350,000	$	0.01

		Range of Exercise prices				Outstanding				Weighted average life (years)				Weighted average exercise price				Exercisable on September 30, 2024
Stock options		$	0.01				1,350,000				7.53			$	0.01				1,350,000

16. Warrant Inducement

On May 9, 2024, the Company entered into a warrant inducement agreement (the “Inducement”) with the holder of existing warrants to purchase an aggregate 7,000,000 shares at a reduced exercise price of $0.5198. Pursuant to the Inducement, the exercising holder of the existing warrants received 12,950,000 inducement warrants and the Company received $3,639,000 from the exercise of the existing warrants. As a result of the inducement and subsequent exercise, the Company determined the incremental fair value provided to the holder from both the adjustment in exercise price of the existing warrants and the fair value of the inducement warrants issued using the Black Scholes model. The total incremental fair value of $4,996,000 is recorded as a non-cash deemed dividend. The proceeds of the warrant inducement and issuance of 2,840,000 shares of common stock are recorded as capital in excess of par. The obligation to issue the remaining 4,160,000 shares was originally recorded as a share subscription payable. During the nine months ended September 30, 2024, the Company issued 2,383,000 out of the 4,160,000 shares to be issued.

17. Rental Income

During the year ended December 31, 2022, the Company entered into a sublease agreement for its warehouse in Mississauga, Ontario, Canada. The sublease commenced on September 15, 2022, and ended on May 31, 2024 at $15,515 ($19,992 CAD) per month.

During the nine months ended September 30, 2024, the Company recognized rental income of $76,866 (2023 - $139,892).

18. Subsequent Events

The Company has evaluated subsequent events through November 13, 2024. The following events occurred after the quarter ended September 30, 2024:

	●	On October 3, 2024, the Company announced its first partnership with a government agency for the sale of Worksport tonneau covers. This government agency has a fleet of an estimated two million pickup trucks nationwide.

	●	On October 9, 2024, the Company announced it is expanding its product line to include tonneau covers compatible with the Rivian R1T electric pickup truck.

	●	On October 17, 2024, the Company announced a strategic cost-saving initiative to cut $1.5 million in annual expenses without negatively impacting revenues.

	●	On October 17, 2024, the Company announced The Nasdaq Stock Market LLC provided formal notice that the Company is eligible for an additional 180 calendar days to regain compliance with the minimum $1 bid requirement under Nasdaq Listing Rule 5550(a)(2).

	●	On October 23, 2024, the Company announced its targeted market release of its highly anticipated AL4 Premium Tonneau Cover to be dated December 15^th, 2024, with a complementary preorder campaign announced as of October 29, 2024.

	●	On October 31, 2024, the Company announced that it’s SOLIS Solar tonneau cover has been improved to operate at 60V, thereby bringing a substantial cost savings to consumers and enabling a wider breadth of battery integrations.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

This section and other parts of this Quarterly Report on Form 10-Q (“Form 10-Q”) contain forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that involve risks and uncertainties. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. Forward-looking statements can also be identified by words such as “future,” “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “will,” “would,” “could,” “can,” “may,” and similar terms. Forward-looking statements are not guarantees of future performance and actual results may differ significantly from the results discussed in the forward-looking statements. All forward-looking statements in this Form 10-Q are made based on current expectations, forecasts, estimates and assumptions, and involve risks, uncertainties and other factors that could cause results or events to differ materially from those expressed in the forward-looking statements. In evaluating these statements, various factors, uncertainties, and risks should be specifically considered that could affect future results or operations. These factors, uncertainties and risks may cause actual results to differ materially from any forward-looking statement set forth in this Form 10-Q. These risks and uncertainties described and other information contained in the reports filed with or furnished to the SEC should be carefully considered before making any investment decision with respect to the Company’s securities. The Company assumes no obligation to revise or update any forward-looking statements for any reason, except as required by law.

Unless otherwise stated, all information presented herein is based on the Company’s fiscal calendar, and references to particular years, quarters, months or periods refer to the Company’s fiscal years ended December 31^st and the associated quarters, months and periods of those fiscal years. Each of the terms “Company” and “Worksport” as used herein refers collectively to Worksport Ltd. and its subsidiaries, unless otherwise stated.

The following discussion should be read in conjunction with the Company’s Annual Report Form 10-K for the fiscal year ended December 31, 2023 filed with the U.S. Securities and Exchange Commission (the “SEC”) and the condensed consolidated financial statements and accompanying notes included in Part I, Item 1 of this Form 10-Q.

Overview

Worksport Ltd., through its subsidiaries, designs, develops, manufactures, and owns the Intellectual Property on a portfolio of tonneau cover, solar integration, portable power station, and NP (Non-Parasitic), Hydrogen-based green energy products and solutions for the automotive aftermarket accessories, power storage, residential heating, and electric vehicle-charging industries. We seek to provide consumers with next-generation automotive aftermarket accessories while capitalizing on growing consumer interest in clean energy solutions and power grid independence.

Rising Popularity of Electric Vehicles

Electric Vehicles (EVs) have been exponentially increasing in consumer interest, whether that interest takes the form of vehicle pre-orders, sales, or investments. As we begin marketing our Worksport SOLIS and COR, we plan to market the SOLIS as a must-have accessory for electric light duty vehicle owners while simultaneously riding the coattails of EV popularity to promote our other products (COR and conventional tonneau covers) to the very large population of Americans that have an interest in EVs without the funds to purchase them. Further, participating in the EV space allows us to target consumers with an interest in cutting-edge technologies – a great market in which to promote our COR.

Regulatory Environment Favoring Electric Vehicles

The Build Back Better Bill was a strong indication of upcoming and favorable USA regulations. Many regulations that improve North America’s EV charging infrastructure or provide grants to businesses operating in the EV space will benefit us. While we are primarily focused on the light duty vehicle market, our energy products are particularly useful for electric light duty pickup trucks and, therefore, are positioned to benefit greatly from any bill that increases the prevalence of such vehicles.

Limited Competitive Landscape

Our conventional tonneau covers are engineered for enhanced user experience and resistance to wear-and-tear, making them strong and competitive products in an otherwise consolidated and saturated market. The Worksport COR, however, operates in a much wider yet unsaturated market. The global Portable Power Station market is quickly growing, and the competitive landscape is far from consolidated. Even less consolidated, the solar tonneau cover market is in its infancy, and it’s a market in which we have first-mover advantage. To ensure we do not fall behind future competitors, we are highly focused on protecting our intellectual property both domestically and abroad.

Business Developments

The following highlights recent material developments in our business in the three months ended September 30, 2024:

	●	On July 11, 2024, the Company launched a new dealer webpage to facilitate sales to tonneau cover dealers by offering a simplified ordering process.

	●	On July 19, 2024, the Company, as the guarantor, and Worksport New York Operations Corporation as well as Worksport USA Operations Corporation, entered into a $6,000,000 Revolving Financing and Assignment Agreement with an external lending entity with a maturity of 24 months from initial funding (July 2026). Upon transaction close, the Company drew down approximately $5.06 million of the Revolving Credit Facility, net of $790,000 of interest reserve required to be withheld to ensure interest payments by the Company. The Company used $4.73 million of the drawn down amount to refinance the Company’s mortgage on the Company’s real property located at 2500 North America Dr. in West Seneca, New York, and additionally drew approximately $330,000 to fund operations.

	●	On July 23, 2024, the Company engaged in stock option repricing for certain employees, executive officers, and members of the board of directors of the Company. All included options’ exercise prices were repriced to $0.7042 – the closing price per share of the Company’s Common Stock as reported on The Nasdaq Stock Market on July 23, 2024. The Repriced Options consisted of certain outstanding stock options that had been granted under the Company’s 2015 Equity Incentive Plan, the 2021 Equity Incentive Plan and 2022 Stock Incentive Plan as of the Effective Date.

	●	On August 6, 2024, through a partnership with Firework, the Company launched a new live sales feature to drive direct to consumer sales.

	●	On August 13, 2024, the Company hosted its first live earnings call.

	●	On September 3, 2024, the Company launched its new Dealer Sales Initiative, which represents a sharp expansion of its sales team to driver sales amount dealers.

	●	On September 4, 2024, the Company announced an expansion of it’s product lines to service a wider range of truck models.

	●	On September 4, 2024, the Company, through its wholly owned subsidiary, Worksport USA Operations Corporation, entered into a $1,487,200 credit and security agreement with an external lending entity with a maturity of 36 months from initial funding (September 2027). Upon transaction close, the Company received net proceeds of $1,437,998. The Company and its wholly owned subsidiary, Worksport New York Operations Corporation, serve as guarantors on the loan.

	●	On September 11, 2024, the Company published results from a lab test in which it found that the COR Hub + Battery, which carries over 1.7 kWh of power, added approximately seven miles of range to a Tesla Model 3 when used as a Level 1 power source.

Key Factors Affecting our Performance

As a result of a number of factors, our historical results of operations may not be comparable to our results of operations in future periods, and our results of operations may not be directly comparable from period to period. Set forth below is a brief discussion of the key factors impacting our results of operations.

Climate Change

Climate change threatens to cause many foreseeable as well as unforeseeable ramifications. In cautious preparation for those that are foreseeable, we have strategically begun domestic manufacturing operations in Western New York – an economically growing region not immediately threatened by climate change to the same extent as other regions and possibly one that may benefit from future population migrations within the United States of America. Further, we intend to lower our own carbon footprint by investing in energy-saving measures in our factory in West Seneca, NY. Considering climate change may also exacerbate geopolitical tensions, we are working to diversify our supply chain and lower our reliance on any particular region or country for raw materials in order to lower our exposure to climate change-induced economic or political instability.

We believe our Worksport SOLIS and Worksport COR products will be received positively by the public for their resilience to, and even increased utility as a result of, Climate Change. However, we acknowledge the potentially negative environmental impacts of poor battery recycling and increasing demand for precious metals. We are actively researching ways to lower such environmental impacts.

Inflation

Prices of certain commodity products, including raw materials, are historically volatile and are subject to fluctuations arising from changes in domestic and international supply and demand, labor costs, competition, market speculation, government regulations, trade restrictions and tariffs. Increasing prices of the component materials for parts of our goods may impact the availability, quality and price of our products as suppliers search for alternatives to existing materials and increase the prices they charge. Our suppliers may also fail to provide consistent quality of product as they may substitute lower cost materials to maintain pricing levels. Rapid and significant changes in commodity prices may negatively affect our profit margins, and it may be difficult to mitigate worsened margins through customer pricing actions and cost reduction initiatives.

Such an inflationary environment also increases our direct cost of raw goods or processed goods for our original equipment manufacturing as well as indirect costs such as overhead and rent. Due to these present and forecasted price increases and the temporary increases in ocean freight and container handling costs faced in recent periods, Worksport factors in all costs when assessing proper pricing of its goods for sale.

Additionally, as central banks and the U.S. Federal Reserve increase interest rates to combat global inflation, the cost of debt financing increases. While we currently do not have material debt other than our $6.0 million Revolving Credit Facility, our facility’s variable rate fluctuates along with the Prime Rate, meaning our monthly interest costs vary not only by our usage of the facility but by interest rates as well. We continue to explore debt financing options at reasonable interest rates in order to strengthen our cash position.

Elevated interest rates have also resulted in a shift in institutional holdings away from micro-cap equities, which has negatively influenced our stock’s trading volume. We continue to forge relationships with institutional investors and analysts in order to maintain a healthy trading volume.

Inflation has fallen since it’s 2022 highs, although inflation rates are still above the Federal Reserve’s target rate of 2%. Additionally, for the first time since the Federal Reserves’ sharp post-Covid interest rate hike, during it’s September meeting, the Federal Reserve announced it is lowering the overnight borrowing rate by 50 basis points, and it gave guidance of an additional 50 basis point cut by end of FY24. It is possible these interest rate cuts result in an increase in inflation.

Gasoline Prices and Supply Chain Issues

We faced significantly higher ocean freight, trucking, and container handling costs as well as last mile delivery costs in 2021 and 2022 than we did in previous years – all of which have increased our products’ landed costs. Higher oil and gasoline prices further increased these costs, and while such prices have come down from their 2022 highs, we continue to closely monitor gasoline and shipping costs. While the Freight Rate Index has significantly increased since late 2023 as a result of Houthi attacks against cargo ships in the Red Sea and the concurrent decline in activity across the Panama Canal, the shipping routes used by the Company have not faced dramatic price hikes. Regardless, the Company is closely monitoring international shipping costs. Further, there is a risk of worker strikes within our supply chain, such as the October US port workers strike that was postponed to January, 2025, causing higher import prices for our raw materials and finished goods.

We are also identifying North American suppliers of our products’ components and will prioritize transport by rail when possible to avoid high trucking costs. Our transition towards domestic manufacturing and assembly is anticipated to largely offset these higher costs, as we believe we will be less exposed to higher international shipping costs.

Geopolitical Conditions

In February 2022, Russia initiated significant military action against Ukraine. In response, the U.S. and certain other countries imposed significant sanctions and export controls against Russia, Belarus and certain individuals and entities connected to Russian or Belarusian political, business, and financial organizations, and the U.S. and certain other countries could impose further sanctions, trade restrictions, and other retaliatory actions should the conflict continue or worsen. It is not possible to predict the broader consequences of these conflicts, including related geopolitical tensions, and the measures and retaliatory actions taken by the U.S. and other countries in respect thereof as well as whether any counter measures or retaliatory actions in response, including, for example, potential cyberattacks or the disruption of energy exports, are likely to cause regional instability and geopolitical shifts, which could materially adversely affect global trade, currency exchange rates, regional economies and the global economy. These situations remain uncertain, and while it is difficult to predict the impact of any of the foregoing, the conflicts and actions taken in response to these conflicts could increase our costs, reduce our sales and earnings, impair our ability to raise additional capital when needed on acceptable terms, if at all, or otherwise adversely affect our business, financial condition, and results of operations.

While we do not have any direct operations or significant sales in the Middle East, geopolitical tensions and ongoing conflicts in the region, particularly between Israel and Hamas, and more recently Israel and Hezbollah, may lead to global economic instability and fluctuating energy prices that could materially affect our business. It is not possible to predict the broader consequences of the Israeli wars, including related geopolitical tensions, and the measures and actions taken by other countries in respect thereof, which could materially adversely affect global trade, currency exchange rates, regional economies and the global economy. While it is difficult to predict the impact of any of the foregoing, the Israeli wars may increase our costs, disrupt our supply chain, reduce our sales and earnings, impair our ability to raise additional capital when needed on acceptable terms, if at all, or otherwise adversely affect our business, financial condition and results of operations.

Foreign Currencies

We are subject to foreign exchange risk as we manufacture certain products and components in China, market extensively in both Canadian and U.S. markets, employ people residing in both the U.S. and Canada and, to date, have raised funds in U.S. Dollars. Meanwhile, we report results of operations in U.S. Dollars. Since some of our Canadian customers pay in Canadian Dollars, we are subject to gains and losses due to fluctuations in the USD relative to the Canadian Dollar. Our manufacturers in China are paid in USD to better avoid the relatively greater fluctuation of the Chinese Yuan. To the extent the U.S. dollar strengthens against any of these foreign currencies, the translation of these foreign currencies denominated transactions results in reduced revenue, operating expenses and net income for our operations.

RESULTS OF OPERATIONS

Three Months Ended September 30, 2024 compared to the Three Months Ended September 30, 2023

Net Sales

For the three months ended September 30, 2024, net sales from our entire line of products was $3,122,359, as compared to $458,483 for the three months ended September 30, 2023. Year-over-year net sales increased by approximately 581%. For the three months ended September 30, 2024, net sales generated in Canada was $28,751 as compared to $4,225 for the same period in 2023. For the three months ended September 30, 2024, net sales generated in the United States was $3,093,608 compared to $454,258 for the same period in 2023, an increase of 581% .

Net sales increased during the three months ended September 30, 2024 compared to the same period the prior year due to increased sales of tonneau covers to a private label partner, various dealers and distributors, and end users via the Company’s online marketplaces. The Company continues to focus on establishing new and strengthening existing business-to-consumer and business-to-business sales channels while also strengthening customer support to increase customer satisfaction and enable high product turnover. For business-to-consumer channels, we have configured our product offerings in a manner conducive with cost-effective marketing, allowing us to securely invest in marketing and sales campaigns. For business-to-business channels, we have created all necessary marketing/sales materials, policies, and teams as well as an online dealer marketplace, and we are now actively contacting thousands of leads and presenting our product offerings to various dealers, jobbers, and retailers across the United States and Canada. We intend to gradually increase output capacity through refined production processes and increased personnel.

Net sales from online retailers of our products increased from $21,599 during the three months ended September 30, 2023, to $1,594,368 during the three months ended September 30, 2024. Online retailers accounted for 51% of total net sales for the three months ended September 30, 2024, compared to 5% for the three months ended September 30, 2023. Distributor net sales increased for the three months ended September 30, 2024, compared with the three months ended September 30, 2023, with net sales of $114,681 and $4,225, respectively. Distributors accounted for 4% of total net sales for the three months ended September 30, 2024. Private label net sales increased from $432,659 for the three months ended September 30, 2023, to $1,413,310 for the three months ended September 30, 2024. Private label net sales accounted for 45% of total net sales for the three months ended September 30, 2024. We expect to continue to grow our fields of business as we develop unique products with enhanced utility to offer to other prospective clients in the U.S. and Canadian markets.

We distribute our tonneau covers in Canada and the United States through an expanding network of wholesalers, private labels, distributors, and online retail channels, including eBay, Amazon, Walmart, and our own e-commerce platform hosted on Shopify. Distribution via each aforementioned channel is expected to increase during 2024. We have pursued and will continue to pursue relationships with Original Equipment Manufacturers with the intention of distributing through them as well.

Cost of Sales

Cost of sales increased by 680%, from $368,796 for the three months ended September 30, 2023, to $2,875,186 for the three months ended September 30, 2024. Our cost of sales, as a percentage of net sales, was approximately 92% and 80% for the three months ended September 30, 2024 and 2023, respectively. Our cost of sales as a percentage of net sales increased primarily driven by two factors: (1) strategic discounting aimed at boosting traffic to our direct-to-consumer online marketplace, and (2) overhead allocation associated with sold inventory produced in previous periods, which had limited production volumes. Our discounting strategy is part of a broader initiative to enhance market presence and build brand awareness. We anticipate that this will position us for sustained customer engagement in future periods, during which discounting may not be necessary to the same extent. Additionally, overhead absorption was higher due to the allocation of fixed costs over a smaller production volume in prior periods. As production volume grows and our manufacturing process becomes more efficient, we expect to allocate these costs across a larger base. This scaling will be facilitated by reallocating more of our existing human capital and machinery resources from design engineering and testing functions toward production. This shift is intended to support ongoing production increases and drive long-term efficiencies in our cost structure.

We provide our distributors and online retailers an “all-in” wholesale price. This includes any import duty charges, taxes, and shipping charges. Discounts are applied if the distributor or retailer chooses to use their own shipping process. Certain exceptions apply on rare occasions where product is shipped outside the contiguous United Sates or from the United States to Canada. Volume discounts are offered to certain high-volume customers, and we also offer a “dock price” or “pickup program” whereby clients are able to pick up product directly from our stocking warehouse.

Operating Expenses

Operating expenses increased for the three months ended September 30, 2024 by $143,193, from $4,009,196 for the three months ended September 30, 2023 to $4,152,389, due to the following factors:

	●	General and administrative expenses decreased by $216,233, from $3,091,488 in 2023 to $2,875,255 in 2024. General and administrative is constant with a slight decrease compared to prior year as the Company begins to shift its focus to production and research and development activities.

	●	Sales and marketing expenses increased by $280,391, from $380,847 for 2023 to $661,238 for 2024. The increase in sales and marketing is primarily attributable to the Company’s marketing campaign to create brand and product awareness.

	●	Professional fees, which include accounting, legal, and consulting fees, increased from $539,126 in 2023 to $621,728 in 2024. The increase in professional fees was due primarily to payment of commissions to third parties, stock options modification, and its associated fees.

	●	We realized a gain on foreign exchange of $5,832 during 2024, compared to a gain on foreign exchange of $2,265 for the prior period due to conversions between CAD and USD.

Other Income and Expenses

We reported net other expenses for the three months ended September 30, 2024 of $229,701, compared to a $29,789 for three months ended September 30, 2023. Net other expenses can be attributed to increased interest expense and decreased rental income.

Net Loss

Net loss for the three months ended September 30, 2024 was $4,134,917, compared to a net loss of $3,949,298 for the three months ended September 30, 2023 – an increase of 4.7%. The increase in the net loss can be attributed to the increase in various operating expenses as we focus on expanding our operations, research and development, manufacturing, and supply chain.

Nine Months Ended September 30, 2024 compared to the Nine Months Ended September 30, 2023

Net Sales

For the nine months ended September 30, 2024, net sales from our entire line of products was $5,556,535, as compared to $690,259 for the nine months ended September 30, 2023. Year-over-year net sales increased by approximately 705%. For the nine months ended September 30, 2024, net sales generated in Canada was $80,530 as compared to $6,961 for the same period in 2023. For the nine months ended September 30, 2024, net sales generated in the United States was $5,476,005 compared to $683,298 for the same period in 2023, an increase of 701% .

Net sales increased during the nine months ended September 30, 2024 compared to the same period the prior year due to increased net sales of tonneau covers to a private label partner, various dealers and distributors, as well as end users via the Company’s online marketplaces. The Company continues to focus on establishing new and strengthening existing business-to-consumer and business-to-business net sales channels while also strengthening customer support to increase customer satisfaction and enable high product turnover. For business-to-consumer channels, we have configured our product offerings in a manner conducive to cost-effective marketing, allowing us to securely invest in marketing and sales campaigns. For business-to-business channels, we have created all necessary marketing/sales materials and policies as well as an online dealer marketplace, and we are now actively contacting thousands of leads and presenting our product offerings to various dealers, jobbers, and retailers across the United States and Canada. We intend to gradually increase output capacity through refined production processes and increased personnel.

Net sales from online retailers of our products increased from $62,827 during the nine months ended September 30, 2023, to $2,446,053 during the nine months ended September 30, 2024. Online retailers accounted for 44% of total net sales for the nine months ended September 30, 2024, compared to 9% for the nine months ended September 30, 2023. Distributor net sales increased for the nine months ended September 30, 2024, compared with the nine months ended September 30, 2023, with net sales of $204,158 and $6,961, respectively. Distributor net sales accounted for 4% of total net sales for the nine months ended September 30, 2024. Private label net sales increased from $620,471 for the nine months ended September 30, 2023, to $2,906,324 for the nine months ended September 30, 2024. Private label net sales accounted for 52% of total net sales for the nine months ended September 30, 2024. We expect to continue to grow our fields of business as we develop unique products with enhanced utility to offer to other prospective clients in the U.S. and Canadian markets.

Cost of Sales

Cost of sales increased by 818%, from $541,841 for the nine months ended September 30, 2023, to $4,975,277 for the nine months ended September 30, 2024. Our cost of sales, as a percentage of net sales, was approximately 89% and 78% for the nine months ended September 30, 2024 and 2023, respectively. Our cost of sales as a percentage of net sales increased primarily driven by two factors: (1) strategic discounting aimed at boosting traffic to our direct-to-consumer online marketplace, and (2) overhead allocation associated with sold inventory produced in previous periods, which had limited production volumes. Our discounting strategy is part of a broader initiative to enhance market presence and build brand awareness. We anticipate that this will position us for sustained customer engagement in future periods, during which discounting may not be necessary to the same extent. Additionally, overhead absorption was higher due to the allocation of fixed costs over a smaller production volume in prior periods. As production volume grows and our manufacturing process becomes more efficient, we expect to allocate these costs across a larger base. This scaling will be facilitated by reallocating more of our existing human capital and machinery resources from design engineering and testing functions toward production. This shift is intended to support ongoing production increases and drive long-term efficiencies in our cost structure.

Operating Expenses

Operating expenses increased for the nine months ended September 30, 2024 by $700,094, from $11,336,594 for the nine months ended September 30, 2023 to $12,036,668, due to the following factors:

	●	General and administrative expenses increased by $1,530,058, from $6,965,901 in 2023 to $8,495,959 in 2024. The increase was related to increased research and development activities, increased employment of support personnel including engineers, and increases in wages and salaries as we seek to expand our operations and further develop our products.

	●	Sales and marketing expenses decreased by $267,103, from $1,473,910 for 2023 to $1,206,807 for 2024. The decrease in sales and marketing is primarily attributable to the completion of several marketing agreements and lower cost of in-house marketing campaigns to create brand and product awareness.

	●	Professional fees, which include accounting, legal, and consulting fees, decreased from $2,899,190 in 2023 to $2,332,069 in 2024. The decrease in professional fees was due primarily to insourcing of certain business processes and fewer equity grants to third parties for services rendered.

	●	We realized a loss on foreign exchange of $1,853 during 2024, compared to a gain on foreign exchange of $2,407 for the prior period due to conversions between CAD and USD.

Other Income and Expenses

We reported net other expenses for the nine months ended September 30, 2024 of $407,543, compared to net expenses of $81,847 for the nine months ended September 30, 2023. Other expenses can be attributed to decreased interest and rental income.

Net Loss

Net loss for the nine months ended September 30, 2024 was $11,862,973, compared to a net loss of $11,270,023 for the nine months ended September 30, 2023 – an increase of 5.3%. The increase in the net loss can be attributed to the increase in various operating expenses as we focus on expanding our operations, research and development, manufacturing, and supply chain.

Liquidity and Capital Resources; Going Concern

The accompanying condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. During the three and nine months ended September 30, 2024, the Company had a net loss of $4,134,917 (2023 – $3,949,298) and $11,862,973 (2023 – $11,270,023), respectively. As of September 30, 2024, the Company has working capital of $5,880,926 (December 31, 2023 – $1,956,894) and had an accumulated deficit of $60,176,150 (December 31, 2023 – $48,313,177). The Company has not generated profit from operations since inception and to date has relied on debt and equity financings for continued operations. The Company’s ability to continue as a going concern is dependent upon the ability to generate cash flows from operations and obtain equity and/or debt financing. The Company intends to continue funding operations through equity and debt financing arrangements, which may be insufficient to fund its capital expenditures, working capital and other cash requirements in the long term. There can be no assurance that the steps management is taking will be successful.

Despite the Company having completed its purchasing of large manufacturing machinery for current output needs, operational costs are expected to remain elevated and, thus, further decrease cash and cash equivalents. Concurrently, the Company intends to continue its ramp-up of manufacturing and increasing sales volumes in the second half of 2024, which should mitigate the effects of operational costs on cash and cash equivalents; this view is supported by the fact that the manufacturing facility of the Company was completed for initial production output in 2023 and started to generate revenue in the third quarter of 2023, registering its highest quarterly sales total in the Company’s history in the third quarter of 2024.

The Company has successfully raised cash, and it is positioned to do so again if deemed necessary or strategically advantageous. During the year ended December 31, 2021, the Company, through its Reg-A public offering, private placement offering, underwritten public offering, and exercises of warrants, raised an aggregate of approximately $32,500,000. On September 30, 2022, the Company filed a shelf registration statement on Form S-3, which was declared effective by the SEC on October 13, 2022, allowing the Company to issue up to $30,000,000 of common stock and prospectus supplement covering the offering, issuance and sale of up to $13,000,000 of common stock that may be issued and sold under an At The Market Offering Agreement dated September 30, 2022 (“ATM Agreement”), with H.C. Wainwright & Co., LLC, as the sales agent (“HCW”). Pursuant to the ATM Agreement, HCW is entitled to a commission equal to 3.0% of the gross sales price of the shares of common stock sold. As of September 30, 2024, the Company has sold and issued 604,048 shares of common stock in consideration for net proceeds of $780,356 under the ATM Agreement.

On November 2, 2023, the Company consummated a registered direct offering pursuant to which it sold 1,925,000 shares of common stock and 1,575,000 pre-funded warrants to an institutional investor for a total net proceeds of $4,261,542. Concurrently with the registered direct offering, the Company issued the same institutional investor 7,000,000 warrants in a private sale. The warrants are exercisable for 7,000,000 shares of common stock for $1.34 per share six months after issuance until five and a half years from the issuance date, subject to beneficial ownership limitations as described in the warrants. The Company registered the 7,000,000 shares of common stock underlying the warrants on a Form S-1 (333-276241) which was declared effective by the SEC on December 29, 2023.

On March 20, 2024, the Company consummated a registered direct offering pursuant to which it sold 2,372,240 shares of common stock and 1,477,892 pre-funded warrants to the same institutional investor as in the Company’s registered direct offering on November 2, 2023, for total net proceeds of $2,629,083. Concurrently with the registered direct offering, the Company issued the institutional investor 7,700,264 warrants in a private sale. The warrants are exercisable for 7,700,264 shares of common stock for $0.74 per share six months after issuance until five and a half years from the issuance date, subject to beneficial ownership limitations contained in the warrants. The Company registered the 7,700,264 shares of common stock underlying the warrants on a Form S-1 (333-278461) which was declared effective by the SEC on April 8, 2024.

As disclosed in the footnotes to our financial statements, on May 14, 2024, the Company and Worksport New York Operations Corporation entered into an Omnibus Amendment of Loan Documents with Northeast Bank. This amendment pertains to the secured loan agreement dated May 4, 2022, which was originally used to finance the purchase of our facility and land in West Seneca, New York. Effective as of May 10, 2024, the Lender extended the maturity date of the loan from May 10, 2024, to August 10, 2024. This extension alleviated immediate cash flow pressures by postponing the loan repayment, allowing us to manage our resources more effectively and focus on other operational needs. As part of the Loan Amendment, we agreed to pay the Lender an extension fee of $106,000. This fee was deemed fully earned but was waived, as the loan was repaid in full on or before the new maturity date. If the loan was not repaid by the extended maturity date or was accelerated due to default, the fee would have become payable. Additionally, we agreed to an exit fee of $106,000 under similar conditions. This fee was waived, as the loan was repaid on or before the new maturity date without acceleration. This loan extension demonstrates our ability to negotiate favorable terms with our creditors and underscores our commitment to maintaining strong liquidity. This strategic decision supported our long-term growth and helped us navigate the current economic and interest rate environment more effectively. The details of the Loan Amendment have been filed as an exhibit to this report and are incorporated by reference herein.

On May 29, 2024, the Company entered into Inducement Offer Letter with a certain holder of existing warrants to purchase shares of the Company’s common stock at an exercise price of $1.34 per share issued on November 2, 2024, pursuant to which the Holder agreed to exercise for cash its Existing Warrants to purchase an aggregate of 7,000,000 shares of the Company’s common stock, at a reduced exercised price of $0.5198 per share, in consideration for the Company’s agreement to issue new warrants to purchase up to 12,950,000 shares of the Company’s common stock at $0.5198 per share. The Company received aggregate gross proceeds of approximately $3,638,600 from the exercise of the Existing Warrants by the Holder and the sale of the Inducement Warrants, before deducting placement agent fees and other offering expenses payable by the Company.

On July 19, 2024, the Company, as the guarantor, and Worksport New York Operations Corporation as well as Worksport USA Operations Corporation, entered into a $6 million Revolving Financing and Assignment Agreement with an external lending entity, Amerisource Business Capital. Upon transaction close, the Company drew down approximately $5.06 million of the Revolving Credit Facility, net of $790,000 of interest reserve required to be withheld to ensure interest payments by the Company. The Company used $4.73 million of the drawn down amount to refinance the Company’s mortgage on the Company’s real property located at 2500 North America Dr. in West Seneca, New York, and additionally drew approximately $330,000 to fund operations.

On September 4, 2024, the Company, through its wholly owned subsidiary, Worksport USA Operations Corporation, entered into a $1,487,200 credit and security agreement with an external lending entity with a maturity of 36 months from initial funding (September 2027). Upon transaction close, the Company received net proceeds of $1,437,998. The Company and its wholly owned subsidiary, Worksport New York Operations Corporation, serve as guarantors on the loan.

Cash Flow Activities

Cash decreased from $3,365,778 at December 31, 2023, to $1,857,685 at September 30, 2024 – a decrease of $1,508,093 or 45%.

As of September 30, 2024, we had current assets of $8,887,057 (December 31, 2023 – $9,123,506) and current liabilities of $3,006,131 (December 31, 2023 – $7,166,612). As of September 30, 2024, we had working capital of $5,880,926 (December 31, 2023 – $1,956,894) and an accumulated deficit of $60,176,150 (December 31, 2023 – $48,313,177).

Operating Activities

Net cash used by operating activities for the nine months ended September 30, 2024 was $7,959,212, compared to $8,194,347 in the prior period. While net loss increased by $592,950 and non-cash payments decreased by $1,585,718, they were more than offset by a $2,413,803 decrease in cash used in operating assets and liabilities relative to the prior period, which reflects the Company’s improved inventory storage and consumption efficiency.

Accounts receivable increased at September 30, 2024 by $3,320 and increased by $455,509 in the prior period. This small increase relative to the prior period was due to there being a small increase in business-to-business sales relative to the prior period.

Inventory increased at September 30, 2024 by $2,506,568, and at September 30, 2023 by $2,205,697, as a result of our purchasing more raw materials for increased output to fulfill rising demand for our domestically-produced tonneau covers. Prepaid expenses and deposits decreased by $1,240,649 at September 30, 2024, and decreased by $26,200 at September 30, 2023 due to deposits used and made by us for the purchase of inventory.

Accounts payable and accrued liabilities increased at September 30, 2024 by $1,004,819 compared to a decrease of $152,474 in the prior period.

Investing Activities

Net cash used in investing activities for the nine months ended September 30, 2024 was $500,760 compared to $3,512,469 in the prior period. The decrease in investing activities was primarily attributable to higher capital expenditure on various manufacturing equipment in 2023.

Financing Activities

Net cash generated by financing activities for the nine months ended September 30, 2024 was $6,951,879 compared to net cash generated by financing activities of $51,637 in the prior period. Cash generated from financing activities increased as the Company issued additional shares, warrants and access to credit lines compared to 2023.

Critical Accounting Policies

Our discussion and analysis of results of operations and financial condition are based upon our condensed consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these condensed consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. We evaluate our estimates on an ongoing basis, including those related to provisions for uncollectible accounts receivable, inventories, valuation of intangible assets and contingencies and litigation. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

The accounting policies that we follow are set forth in Note 2 to our financial statements as included in our 2023 Annual Report on Form 10-K filed on March 27, 2024. These accounting policies conform to accounting principles generally accepted in the United States and have been consistently applied in the preparation of the financial statements.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Not Applicable.

Item 4. Controls and Procedures

Disclosure Controls and Procedures

We carried out an evaluation, under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, of the effectiveness of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of the end of the period covered by this Quarterly Report on Form 10-Q. Based upon that evaluation, our principal executive officer and principal financial officer concluded that, as of the end of the quarter covered in this report, our disclosure controls and procedures were not effective to ensure that information required to be disclosed in reports filed under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the required time and is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

Our management, including our principal executive officer and principal financial officer, does not expect that our disclosure controls and procedures or our internal controls will prevent all error or fraud. A control system, no matter how well conceived and operated, cannot provide absolute assurance that the objectives of the control system are met. The design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs.

To address the material weaknesses, we performed additional analysis and other post-closing procedures in an effort to ensure our consolidated financial statements included in our periodic reports filed with the SEC are prepared in accordance with generally accepted accounting principles. Management believes that the financial statements included in this report fairly present in all material respects our financial condition, results of operations and cash flows for the periods presented.

Changes in Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II OTHER INFORMATION

Item 1. Legal Proceedings

From time to time, we are involved in lawsuits, claims, investigations, and proceedings, including pending opposition proceedings involving patents that arise in the ordinary course of business. We are not presently a party to any material pending or threatened legal proceedings, nor do we have any knowledge of any such pending claims.

Item 1A. Risk Factors

In addition to the other information set forth in this Quarterly Report on Form 10-Q, you should carefully consider the factors discussed in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 Annual Report”), which could materially affect our business, financial condition, liquidity, or future results. The risks described in our 2023 Annual Report are not the only risks facing our Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition, liquidity or future results.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

●

On May 31, 2024, the Company issued warrants to purchase up to 12,950,000 shares of the Company’s common stock in connection with entering into the Inducement Offer Letter with a certain holder of existing warrants, pursuant to which the Holder agreed to exercise for cash its Existing Warrants to purchase an aggregate of 7,000,000 shares of the Company’s common stock, at a reduced exercised price of $0.5198 per share. Each Inducement Warrant has an exercise price equal to $0.5198 per share and will be exercisable at any time on or after the date that is six (6) months from the issuance date provided that stockholder approval is obtained and will have a term of exercise of five and one half (5½) years following the date of issuance. The Company engaged Maxim Group LLC (“Maxim”) to act as its exclusive warrant solicitation agent and financial advisor in connection with the warrant inducement transaction and paid Maxim a cash fee equal to 7.0% of the gross proceeds received from the exercise of the Existing Warrants. The Company used and is expecting to use the net proceeds of these transactions for general corporate purposes, including working capital.

The issuance of the warrants listed above was deemed exempt from registration under Section 4(a)(2) of the Securities Act or Regulation D promulgated thereunder in that the issuance of securities were made to an accredited investor and did not involve a public offering. The recipient of such securities represented its intention to acquire the securities for investment purposes only and not with a view to or for sale in connection with any distribution thereof.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

On May 14, 2024, the Company and Worksport New York Operations Corporation entered into an Omnibus Amendment of Loan Documents with Northeast Bank in connection with that certain secured loan agreement, dated May 4, 2022, by and among the Company, as the guarantor, Worksport New York, as the borrower, and the Lender in connection with the Company’s purchase of its 152,847 square foot facility and 18 acres of land in West Seneca, New York on May 6, 2022 for a total purchase price of $8,150,000. Pursuant to the Loan Amendment, effective as of May 10, 2024, the Lender extended the initial maturity date of the Loan from May 10, 2024 to August 10, 2024. The Company also agreed to pay the Lender an extension fee of $106,000 which was deemed fully earned as of the date of the Loan Amendment. However, the Lender agreed to postpone payment of the Extension Fee until the occurrence of (i) the Loan not being repaid in full by or on the Extended Maturity Date; or (ii) Loan being accelerated following an Event of Default or Termination Date (as defined in the Forbearance Agreement). If the Loan is repaid in full on or prior to the Extended Maturity Date, the Lender has agreed to waive the Extension Fee. In addition to the Extension Fee, the Company agreed to pay the Lender an exit fee of $106,000 (the “Exit Fee”) in the event the Loan is not repaid in full on or prior to the Extended Maturity Date or if the Loan has been accelerated following an Event of Default or in connection with a Termination Event (as defined in the Forbearance Agreement). If the Loan is repaid in full on or prior to the Extended Maturity Date (and not as a result of an acceleration following a Termination Event), the Company will not be required to pay the Exit Fee.

Subsequent Events

	●	On October 3, 2024, the Company announced its first partnership with a government agency for the sale of Worksport tonneau covers. This government agency has a fleet of an estimated two million pickup trucks nationwide.

	●	On October 9, 2024, the Company announced it is expanding its product line to include tonneau covers compatible with the Rivian R1T electric pickup truck.

	●	On October 17, 2024, the Company announced a strategic cost-saving initiative to cut $1.5 million in annual expenses without negatively impacting revenues.

	●	On October 17, 2024, the Company announced The Nasdaq Stock Market LLC provided formal notice that the Company is eligible for an additional 180 calendar days to regain compliance with the minimum $1 bid requirement under Nasdaq Listing Rule 5550(a)(2).

	●	On October 23, 2024, the Company announced its targeted market release of its highly anticipated AL4 Premium Tonneau Cover to be dated December 15^th, 2024, with a complementary preorder campaign announced as of October 29, 2024.

	●	On October 31, 2024, the Company announced that its SOLIS Solar tonneau cover has been improved to operate at 60V, thereby bringing a substantial cost savings to consumers and enabling a wider breadth of battery integrations.

Item 6. Exhibits

EXHIBIT No.		DESCRIPTION

10.1		Revolving Financing and Assignment Agreement, dated July 19, 2024, by and between Worksport New York Operations Corporation and Worksport USA Operations Corporation and Amerisource Funding, Inc. (incorporated by reference to Exhibit 10.1 of the Current Report on Form 8-K of Worksport Ltd. filed on July 25, 2024).
10.2		Commercial Promissory Note, dated July 19, 2024, by Worksport New York Operations Corporation, and Worksport USA Operations Corporation to the benefit of Amerisource Funding, Inc. (incorporated by reference to Exhibit 10.2 of the Current Report on Form 8-K of Worksport Ltd. filed on July 25, 2024).
10.3		Credit and Security Agreement dated September 4, 2024, between Worksport USA Operations Corporation and Loeb Term Solutions LLC. (incorporated by reference to Exhibit 10.1 of the Current Report on Form 8-K of Worksport Ltd. filed on September 10, 2024).
10.4		Term Promissory Note, dated September 4, 2024, by Worksport USA Operations Corporation to the benefit of Loeb Term Solutions LLC. (incorporated by reference to Exhibit 10.2 of the Current Report on Form 8-K of Worksport Ltd. filed on September 10, 2024).
10.5		The Securities Purchase Agreement, dated September 19, 2024 (incorporated by reference to Exhibit 10.1 of the Current Report on Form 8-K of Worksport Ltd. filed on September 20, 2024).
31.1*		Section 302 Certification of Chief Executive Officer and President.
31.2*		Section 302 Certification of Chief Financial Officer.
32.1**		Section 906 Certifications of Chief Executive Officer and President.
32.2**		Section 906 Certifications of Chief Financial Officer.
101.INS*		Inline XBRL Instance Document.
101.SCH*		Inline XBRL Taxonomy Extension Schema Document.
101.CAL*		Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.LAB*		Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE*		Inline XBRL Taxonomy Extension Presentation Linkbase Document.
101.DEF*		Inline XBRL Taxonomy Extension Definition Linkbase Document.
104*		Cover Page Interactive Data File (embedded within the Inline XBRL document filed as Exhibit 101).

*	Filed herewith.

Exhibits 32.1 and 32.2 are being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, nor shall such exhibits be deemed to be incorporated by reference in any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as otherwise specifically stated in such filing.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

	WORKSPORT LTD.

Dated: November 13, 2024	By:	/s/ Steven Rossi
		Steven Rossi
		Chief Executive Officer and President (Principal Executive Officer)

Dated: November 13, 2024	By:	/s/ Michael Johnston
		Michael Johnston
		Chief Financial Officer (Principal Financial and Accounting Officer)

EXHIBIT 31.1

Certification of Principal Executive Officer

I, Steven Rossi, certify that:

1.	I have reviewed this Form 10-Q of Worksport Ltd;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act rules 13a-15(f) and 15d-15(f)) for the registrant and have:

	a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

	b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

	c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;

	d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.	The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

	a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

	b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 13, 2024

By:	/s/ Steven Rossi
	Steven Rossi
	Chief Executive Officer and President
	(Principal Executive Officer)

EXHIBIT 31.2

Certification of Principal Financial Officer

I, Michael Johnston, certify that:

1.	I have reviewed this Form 10-Q of Worksport Ltd.;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act rules 13a-15(f) and 15d-15(f)) for the registrant and have:

	a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

	b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

	c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;

	d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.	The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

	a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

	b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 13, 2024

By:	/s/ Michael Johnston
	Michael Johnston
	Chief Financial Officer
	(Principal Financial and Accounting Officer)

EXHIBIT 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Steve Rossi, certify, as of the date hereof, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report of Worksport Ltd. on Form 10-Q for the period ended September 30, 2024 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in such Form 10-Q fairly presents in all material respects the financial condition and results of operations of Worksport Ltd. at the dates and for the periods indicated.

By:	/s/ Steven Rossi
	Steven Rossi
	Chief Executive Officer and President
	(Principal Executive Officer)

Date: November 13, 2024

EXHIBIT 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Michael Johnston, certify, as of the date hereof, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report of Worksport Ltd. on Form 10-Q for the period ended September 30, 2024 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in such Form 10-Q fairly presents in all material respects the financial condition and results of operations of Worksport Ltd. at the dates and for the periods indicated.

By:	/s/ Michael Johnston
	Michael Johnston
	Chief Financial Officer
	(Principal Financial and Accounting Officer)

Date: November 13, 2024

Cover - $ / shares	9 Months Ended
Cover - $ / shares	Sep. 30, 2024	Nov. 13, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2024
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2024
Current Fiscal Year End Date	--12-31
Entity File Number	001-40681
Entity Registrant Name	Worksport Ltd.
Entity Central Index Key	0001096275
Entity Tax Identification Number	35-2696895
Entity Incorporation, State or Country Code	NV
Entity Address, Address Line One	2500 N America Dr
Entity Address, City or Town	West Seneca
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	14224
City Area Code	(888)
Local Phone Number	554-8789
Title of 12(b) Security	Common Stock
Trading Symbol	WKSP
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		32,937,609
Entity Listing, Par Value Per Share	$ 0.0001

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Current Assets
Cash and cash equivalents	$ 1,857,685	$ 3,365,778
Accounts receivable, net	466,442	463,122
Other receivable	153,967	165,865
Inventory (note 4)	6,138,060	3,631,492
Prepaid expenses and deposits (note 5)	256,600	1,497,249
Total Current Assets	8,887,057	9,123,506
Investments (note 10)	90,731	90,731
Property and Equipment, net (note 6)	13,966,210	14,483,436
Right-Of-Use Asset, net (note 11)	658,152	917,354
Intangible Assets, net	1,337,008	1,338,889
Total Assets	24,939,158	25,953,916
Current Liabilities
Accounts payable and accrued liabilities	2,456,000	1,451,181
Payroll taxes payable	111,591	85,010
Current portion – Long term debt (note 12)	190,000	5,300,000
Current lease liability (note 11)	248,540	328,229
Total Current Liabilities	3,006,131	7,166,612
Long Term – Lease Liability (note 11)	433,214	608,761
Long Term Debt (note 12)	5,136,738
Total Liabilities	8,576,083	7,775,373
Shareholders’ Equity
Series A & B Preferred Stock, $0.0001 par value, 100,100 shares authorized, 100 Series A and 0 Series B issued and outstanding, respectively (note 7)
Common stock, $0.0001 par value, 299,000,000 shares authorized, 30,920,397 and 17,436,805 shares issued and outstanding, respectively (note 7)	3,092	2,032
Additional paid-in capital	72,512,085	64,685,693
Share subscriptions receivable	(1,577)	(1,577)
Share subscriptions payable	4,034,205	1,814,152
Accumulated deficit	(60,176,150)	(48,313,177)
Cumulative translation adjustment	(8,580)	(8,580)
Total Shareholders’ Equity	16,363,075	18,178,543
Total Liabilities and Shareholders’ Equity	24,939,158	25,953,916
Related Party [Member]
Current Assets
Related party loan (note 8)	14,303
Current Liabilities
Related party loan (note 8)		$ 2,192

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2024	Dec. 31, 2023
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	299,000,000	299,000,000
Common stock, shares, issued	30,920,397	17,436,805
Common stock, shares, outstanding	30,920,397	17,436,805
Series A Preferred Stock [Member]
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	100,100	100,100
Preferred stock, shares issued	100	100
Preferred stock, shares outstanding	100	100
Series B Preferred Stock [Member]
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	100,100	100,100
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Statement [Abstract]
Net Sales	$ 3,122,359	$ 458,483	$ 5,556,535	$ 690,259
Cost of Goods Sold	2,875,186	368,796	4,975,277	541,841
Gross Profit	247,173	89,687	581,258	148,418
Operating Expenses
General and administrative	2,875,255	3,091,488	8,495,959	6,965,901
Sales and marketing	661,238	380,847	1,206,807	1,473,910
Professional fees	621,728	539,126	2,332,069	2,899,190
(Gain) loss on foreign exchange	(5,832)	(2,265)	1,853	(2,407)
Total operating expenses	4,152,389	4,009,196	12,036,688	11,336,594
Loss from operations	(3,905,216)	(3,919,509)	(11,455,430)	(11,188,176)
Other Income (Expense)
Interest expense	(229,701)	(113,838)	(487,463)	(466,830)
Interest income		38,992	3,054	237,598
Rental income (note 17)		45,057	76,866	139,892
Gain on settlement of debt				7,493
Total other income (expense)	(229,701)	(29,789)	(407,543)	(81,847)
Net Loss	$ (4,134,917)	$ (3,949,298)	$ (11,862,973)	$ (11,270,023)
Loss per Share basic	$ (0.14)	$ (0.23)	$ (0.47)	$ (0.65)
Loss per Share diluted	$ (0.14)	$ (0.23)	$ (0.47)	$ (0.65)
Weighted Average Number of Shares basic	29,432,794	17,429,685	25,540,754	17,252,521
Weighted Average Number of Shares diluted	29,432,794	17,429,685	25,540,754	17,252,521

Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($)	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Share Subscriptions Receivable [Member]	Share Subscription Payable [Member]	Retained Earnings [Member]	Cumulative Translation Adjustment [Member]	Total
Balance at Dec. 31, 2022	$ 0	$ 1,716	$ 56,919,625	$ (1,577)	$ 591,289	$ (33,384,219)	$ (8,580)	$ 24,118,254
Balance, shares at Dec. 31, 2022	100	17,159,376
Shares issued		$ 3	95,538					95,541
Shares issued, shares		27,429
Stock option forfeiture			19,406					19,406
Net loss						(11,270,023)		(11,270,023)
Issuance for services and subscriptions payable		$ 25	2,428,139		1,022,963			3,451,127
Issuance for services and subscriptions payable, shares		250,000
Balance at Sep. 30, 2023	$ 0	$ 1,744	59,462,708	(1,577)	1,614,252	(44,654,242)	(8,580)	16,414,305
Balance, shares at Sep. 30, 2023	100	17,436,805
Balance at Jun. 30, 2023	$ 0	$ 1,742	58,615,849	(1,577)	1,494,885	(40,704,944)	(8,580)	19,397,375
Balance, shares at Jun. 30, 2023	100	17,413,810
Issuance for services and subscriptions payable			739,046		119,367			858,413
Shares issued		$ 2	88,407					88,409
Shares issued, shares		22,995
Stock option forfeiture			19,406					19,406
Net loss						(3,949,298)		(3,949,298)
Balance at Sep. 30, 2023	$ 0	$ 1,744	59,462,708	(1,577)	1,614,252	(44,654,242)	(8,580)	16,414,305
Balance, shares at Sep. 30, 2023	100	17,436,805
Balance at Dec. 31, 2023	$ 0	$ 2,032	64,685,693	(1,577)	1,814,152	(48,313,177)	(8,580)	18,178,543
Balance, shares at Dec. 31, 2023	100	20,320,503
Shares issued		$ 526	5,404,944		(2,210,269)			3,195,201
Shares issued, shares		5,260,161
Net loss						(11,862,973)		(11,862,973)
Issuance for services and subscriptions payable		$ 33	2,896,431		571,858			3,468,322
Issuance for services and subscriptions payable, shares		333,841
Warrant inducement (note 16)		$ 284	(474,850)		3,858,464			3,383,898
Warrant inducement (note 16), shares		2,840,000
Warrant exercise (note 14)		$ 217	(133)					84
Warrant exercise (note 14), shares		2,165,892
Balance at Sep. 30, 2024	$ 0	$ 3,092	72,512,085	(1,577)	4,034,205	(60,176,150)	(8,580)	16,363,075
Balance, shares at Sep. 30, 2024	100	30,920,397
Balance at Jun. 30, 2024	$ 0	$ 2,852	69,230,341	(1,577)	5,964,290	(56,041,233)	(8,580)	19,146,093
Balance, shares at Jun. 30, 2024	100	28,520,704
Net loss						(4,134,917)		(4,134,917)
Issuance for services and subscriptions payable		$ 2	1,071,713		280,184			1,351,899
Issuance for services and subscriptions payable, shares		16,693
Warrant inducement (note 16)		$ 238	2,210,031		(2,210,269)
Warrant inducement (note 16), shares		2,383,000
Balance at Sep. 30, 2024	$ 0	$ 3,092	$ 72,512,085	$ (1,577)	$ 4,034,205	$ (60,176,150)	$ (8,580)	$ 16,363,075
Balance, shares at Sep. 30, 2024	100	30,920,397

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Operating Activities
Net Loss	$ (11,862,973)	$ (11,270,023)
Adjustments to reconcile net loss to net cash from operating activities:
Shares, options and warrants issued for services	3,105,869	4,711,868
Depreciation and amortization	1,019,867	1,019,556
Change in operating lease	3,966	(16,004)
Adjustments to reconcile net income loss to cash provided by (used in) operating activities	(7,733,271)	(5,554,603)
Changes in operating assets and liabilities (note 9)	(225,941)	(2,639,744)
Net cash used in operating activities	(7,959,212)	(8,194,347)
Cash Flows from Investing Activities
Investments		(66,308)
Purchase of property and equipment	(500,760)	(3,446,161)
Net cash used in investing activities	(500,760)	(3,512,469)
Financing Activities
Net change in related party loan	(16,495)	(43,904)
Proceeds from warrant exercise	3,746,435
Proceeds from issuance of common share, net of issuance cost	3,195,201	95,541
Proceeds from line of credit	7,339,525
Net proceeds from long term debt	1,437,998
Repayment of line of credit	(3,450,785)
Repayment of long term debt	(5,300,000)
Net cash received from financing activities	6,951,879	51,637
Change in cash	(1,508,093)	(11,655,179)
Cash, restricted cash and cash equivalents - beginning of year	3,365,778	14,620,757
Cash, restricted cash and cash equivalents end of period	1,857,685	2,965,578
Supplemental Disclosure of non-cash investing and financing activities
Shares issued for purchase of software		72,467
Supplemental Disclosure of cash flow information
Income tax paid
Interest paid	$ 487,000	$ 477,000

Basis of Presentation and Business Condition

9 Months Ended

Sep. 30, 2024

Accounting Policies [Abstract]

Basis of Presentation and Business Condition

1. Basis of Presentation and Business Condition

a) Interim Financial Information

b) Statement of Compliance

c) Basis of Measurement

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

d) Consolidation

e) Functional and Reporting Currency

f) Use of Estimates

Going Concern

9 Months Ended

Sep. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Going Concern

2. Going Concern

Significant Accounting Policies

9 Months Ended

Sep. 30, 2024

Accounting Policies [Abstract]

Significant Accounting Policies

3. Significant Accounting Policies

Inventory

9 Months Ended

Sep. 30, 2024

Inventory Disclosure [Abstract]

Inventory

4. Inventory

As of September 30, 2024 and December 31, 2023, inventory consists of the following:

Schedule of Inventory

	September 30, 2024		December 31, 2023
Finished goods	$	1,913,228	$	1,717,669
Promotional items		101,660		101,660
Raw materials		4,123,172		1,812,163
Inventory	$	6,138,060	$	3,631,492

Prepaid expenses and deposits

9 Months Ended

Sep. 30, 2024

Prepaid Expenses And Deposits

Prepaid expenses and deposits

5. Prepaid expenses and deposits

As of September 30, 2024 and December 31, 2023, prepaid expenses and deposits consist of the following:

	September 30, 2024		December 31, 2023
Consulting, services, and advertising	$	237,594	$	5,215
Deposits		19,006		1,492,034
Prepaid expenses and deposits, net	$	256,600	$	1,497,249

Property and Equipment

9 Months Ended

Sep. 30, 2024

Property, Plant and Equipment [Abstract]

Property and Equipment

6. Property and Equipment

As of September 30, 2024 and December 31, 2023, major classes of property and equipment consist of the following:

Schedule of Property and Equipment

	September 30, 2024			December 31, 2023
Equipment	$	3,142,683		$	2,784,098
Manufacturing equipment		3,340,463			3,260,679
Furniture		154,065			146,049
Product molds		524,476			524,476
Computers		96,056			84,070
Leasehold improvements		903,721			861,332
Building		6,079,410			6,079,410
Land		2,239,405			2,239,405
Automobile		168,497			168,497
Property and equipment, gross		168,497			168,497
Less accumulated depreciation		(2,682,566	)		(1,664,580	)
Property and Equipment, net	$	13,966,210		$	14,483,436

Shareholders’ Equity (Deficit)

9 Months Ended

Sep. 30, 2024

Equity [Abstract]

Shareholders’ Equity (Deficit)

7. Shareholders’ Equity (Deficit)

During nine months ended September 30, 2024, the following transactions occurred:

Refer to note 14, 15 and 16 for additional shareholders’ equity (deficit) details.

During nine months ended September 30, 2023, the following transactions occurred:

Refer to note 15 for additional shareholders’ equity (deficit) details.

Related Party Transactions

9 Months Ended

Sep. 30, 2024

Related Party Transactions

8. Related Party Transactions

As of September 30, 2024, the Company has a receivable of $14,303 (December 31, 2023 – payable of $2,192) from the CEO.

Changes in Cash Flows from Operating Assets and Liabilities

9 Months Ended

Sep. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Changes in Cash Flows from Operating Assets and Liabilities

9. Changes in Cash Flows from Operating Assets and Liabilities

The changes to the Company’s operating assets and liabilities for the nine months ended September 30, 2024 and 2023 are as follows:

	2024			2023
Decrease (increase) in accounts receivable	$	(3,320	)	$	(455,509	)
Decrease (increase) in other receivable		11,898			103,998
Decrease (increase) in inventory		(2,506,568	)		(2,205,697	)
Decrease (increase) in prepaid expenses and deposits		1,240,649			26,200
Increase (decrease) in payroll taxes payable		26,581			43,738
Increase (decrease) in accounts payable and accrued liabilities		1,004,819			(152,474	)
	$	(225,941	)	$	(2,639,744	)

Investments

9 Months Ended

Sep. 30, 2024

Investments, All Other Investments [Abstract]

Investments

10. Investments

Operating Lease Obligations

9 Months Ended

Sep. 30, 2024

Operating Lease Obligations

Operating Lease Obligations

11. Operating Lease Obligations

The Company’s right-of-use asset and lease liability as of September 30, 2024, and December 31, 2023, are as follows:

Schedule Right-of-use Asset

	September 30, 2024		December 31, 2023
Right-of-use asset	$	658,152	$	917,354
Current lease liability	$	248,540	$	328,229
Long-term lease liability	$	433,214	$	608,761

The following is a summary of the Company’s total lease costs:

Schedule of Lease Cost

		September 30, 2024				September 30, 2023
Operating lease cost		$	331,057			$	368,984

The following is a summary of cash paid during the nine months ended September 30, 2024 and 2023 for amounts included in the measurement of lease liabilities:

		September 30, 2024				September 30, 2023
Operating cashflow		$	328,113			$	378,102

The following are future minimum lease payments due as of September 30, 2024:


2025	$	294,437
2026		275,720
2027		187,453
Total future minimum lease payments		757,610
Less: amount representing interest		(75,856	)
Present value of future payments		681,754
Current portion		248,540
Long term portion	$	433,214

Long term Debt

9 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

Long term Debt

12. Long term Debt

Loss per Share

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

Loss per Share

13. Loss per Share

Warrants

9 Months Ended

Sep. 30, 2024

Warrants

Warrants

14. Warrants

During the nine months ended September 30, 2024, 130,909 warrants issued on August 3, 2021 and 3,446,515 warrants issued on August 6, 2021, all of which having an exercise price of $6.05, expired.

As of September 30, 2024, the Company has the following warrants outstanding:

Schedule of Warrants Exercise Price

Exercise price		Number outstanding		Remaining Contractual Life (Years)		Expiry date
$	2.40		62,500		0.47	March 20, 2025
$	4.00		300,000		2.25	December 31, 2026
$	0.74		7,700,264		4.98	September 20, 2029
$	0.40		1,900,000		4.98	September 21, 2029
$	0.52		12,950,000		5.16	November 26, 2029
			22,912,764		5.03

The average remaining contractual life of outstanding warrants that expire is 5.03 years.

Schedule of Warrants Activity

	September 30, 2024					December 31, 2023
	Number of warrants			Weighted average price		Number of warrants			Weighted average price
Balance, beginning of year		11,627,924		$	2.42		3,939,924		$	5.84
Issuance		24,028,156		$	0.55		8,575,000		$	1.09
Expired		(3,577,414	)	$	6.05		-		$	-
Exercise		(9,165,892	)	$	0.40		(887,000	)	$	0.0001
Balance, end of period		22,912,774		$	0.63		11,627,924		$	2.42

Stock Options and Performance Share Units

9 Months Ended

Sep. 30, 2024

Share-Based Payment Arrangement [Abstract]

Stock Options and Performance Share Units

15. Stock Options and Performance Share Units

Performance Share Units

Stock Options

The Company uses the Black-Scholes option pricing model to determine fair value of stock options on the grant date.

	September 30, 2024						December 31, 2023
	Number of stock options			Weighted average price			Number of stock options			Weighted average price
Balance, beginning of period		5,063,856		$	1.96			785,000		$	4.74
Granted		804,600		$	0.78			4,743,356		$	1.80
Cancelled		(20,400	)	$	(2.31	)		(464,500	)	$	(5.02	)
Balance, end of period		5,848,056		$	0.73			5,063,856		$	1.96

		Range of Exercise prices				Outstanding				Weighted average life (years)				Weighted average exercise price				Exercisable on September 30, 2024
Stock options		$	0.57-5.50				5,848,056				8.19			$	0.73				1,798,750

As of September 30, 2024 and December 31, 2023, Terravis Energy Inc., a wholly owned subsidiary of the Company, has the following options outstanding:

Schedule of Stock Options Activity

	September 30, 2024				December 31, 2023
	Number of stock options		Weighted average price		Number of stock options		Weighted average price
Balance, beginning of period		1,350,000	$	0.01		1,350,000	$	0.01
Granted		-	$	-		-	$	-
Balance, end of period		1,350,000	$	0.01		1,350,000	$	0.01

		Range of Exercise prices				Outstanding				Weighted average life (years)				Weighted average exercise price				Exercisable on September 30, 2024
Stock options		$	0.01				1,350,000				7.53			$	0.01				1,350,000

Warrant Inducement

9 Months Ended

Sep. 30, 2024

Warrant Inducement

Warrant Inducement

16. Warrant Inducement

Rental Income

9 Months Ended

Sep. 30, 2024

Rental Income

Rental Income

17. Rental Income

During the nine months ended September 30, 2024, the Company recognized rental income of $76,866 (2023 - $139,892).

Subsequent Events

9 Months Ended

Sep. 30, 2024

Subsequent Events [Abstract]

Subsequent Events

18. Subsequent Events

The Company has evaluated subsequent events through November 13, 2024. The following events occurred after the quarter ended September 30, 2024:

	●	On October 3, 2024, the Company announced its first partnership with a government agency for the sale of Worksport tonneau covers. This government agency has a fleet of an estimated two million pickup trucks nationwide.

	●	On October 9, 2024, the Company announced it is expanding its product line to include tonneau covers compatible with the Rivian R1T electric pickup truck.

	●	On October 17, 2024, the Company announced a strategic cost-saving initiative to cut $1.5 million in annual expenses without negatively impacting revenues.

	●	On October 17, 2024, the Company announced The Nasdaq Stock Market LLC provided formal notice that the Company is eligible for an additional 180 calendar days to regain compliance with the minimum $1 bid requirement under Nasdaq Listing Rule 5550(a)(2).

	●	On October 23, 2024, the Company announced its targeted market release of its highly anticipated AL4 Premium Tonneau Cover to be dated December 15^th, 2024, with a complementary preorder campaign announced as of October 29, 2024.

	●	On October 31, 2024, the Company announced that it’s SOLIS Solar tonneau cover has been improved to operate at 60V, thereby bringing a substantial cost savings to consumers and enabling a wider breadth of battery integrations.

Inventory (Tables)

9 Months Ended

Sep. 30, 2024

Inventory Disclosure [Abstract]

Schedule of Inventory

As of September 30, 2024 and December 31, 2023, inventory consists of the following:

Schedule of Inventory

	September 30, 2024		December 31, 2023
Finished goods	$	1,913,228	$	1,717,669
Promotional items		101,660		101,660
Raw materials		4,123,172		1,812,163
Inventory	$	6,138,060	$	3,631,492

Prepaid expenses and deposits (Tables)

9 Months Ended

Sep. 30, 2024

Prepaid Expenses And Deposits

Schedule of Prepaid Expenses and Deposits

As of September 30, 2024 and December 31, 2023, prepaid expenses and deposits consist of the following:

	September 30, 2024		December 31, 2023
Consulting, services, and advertising	$	237,594	$	5,215
Deposits		19,006		1,492,034
Prepaid expenses and deposits, net	$	256,600	$	1,497,249

Property and Equipment (Tables)

9 Months Ended

Sep. 30, 2024

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment

As of September 30, 2024 and December 31, 2023, major classes of property and equipment consist of the following:

Schedule of Property and Equipment

	September 30, 2024			December 31, 2023
Equipment	$	3,142,683		$	2,784,098
Manufacturing equipment		3,340,463			3,260,679
Furniture		154,065			146,049
Product molds		524,476			524,476
Computers		96,056			84,070
Leasehold improvements		903,721			861,332
Building		6,079,410			6,079,410
Land		2,239,405			2,239,405
Automobile		168,497			168,497
Property and equipment, gross		168,497			168,497
Less accumulated depreciation		(2,682,566	)		(1,664,580	)
Property and Equipment, net	$	13,966,210		$	14,483,436

Changes in Cash Flows from Operating Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Changes in Operating Assets and Liabilities

The changes to the Company’s operating assets and liabilities for the nine months ended September 30, 2024 and 2023 are as follows:

	2024			2023
Decrease (increase) in accounts receivable	$	(3,320	)	$	(455,509	)
Decrease (increase) in other receivable		11,898			103,998
Decrease (increase) in inventory		(2,506,568	)		(2,205,697	)
Decrease (increase) in prepaid expenses and deposits		1,240,649			26,200
Increase (decrease) in payroll taxes payable		26,581			43,738
Increase (decrease) in accounts payable and accrued liabilities		1,004,819			(152,474	)
	$	(225,941	)	$	(2,639,744	)

Operating Lease Obligations (Tables)

9 Months Ended

Sep. 30, 2024

Operating Lease Obligations

Schedule Right-of-use Asset

The Company’s right-of-use asset and lease liability as of September 30, 2024, and December 31, 2023, are as follows:

Schedule Right-of-use Asset

	September 30, 2024		December 31, 2023
Right-of-use asset	$	658,152	$	917,354
Current lease liability	$	248,540	$	328,229
Long-term lease liability	$	433,214	$	608,761

Schedule of Lease Cost

The following is a summary of the Company’s total lease costs:

Schedule of Lease Cost

		September 30, 2024				September 30, 2023
Operating lease cost		$	331,057			$	368,984

Schedule of Measurement of Lease Liabilities

The following is a summary of cash paid during the nine months ended September 30, 2024 and 2023 for amounts included in the measurement of lease liabilities:

		September 30, 2024				September 30, 2023
Operating cashflow		$	328,113			$	378,102

Schedule of Future Minimum Lease Payments

The following are future minimum lease payments due as of September 30, 2024:


2025	$	294,437
2026		275,720
2027		187,453
Total future minimum lease payments		757,610
Less: amount representing interest		(75,856	)
Present value of future payments		681,754
Current portion		248,540
Long term portion	$	433,214

Warrants (Tables)

9 Months Ended

Sep. 30, 2024

Warrants

Schedule of Warrants Exercise Price

As of September 30, 2024, the Company has the following warrants outstanding:

Schedule of Warrants Exercise Price

Exercise price		Number outstanding		Remaining Contractual Life (Years)		Expiry date
$	2.40		62,500		0.47	March 20, 2025
$	4.00		300,000		2.25	December 31, 2026
$	0.74		7,700,264		4.98	September 20, 2029
$	0.40		1,900,000		4.98	September 21, 2029
$	0.52		12,950,000		5.16	November 26, 2029
			22,912,764		5.03

Schedule of Warrants Activity

	September 30, 2024					December 31, 2023
	Number of warrants			Weighted average price		Number of warrants			Weighted average price
Balance, beginning of year		11,627,924		$	2.42		3,939,924		$	5.84
Issuance		24,028,156		$	0.55		8,575,000		$	1.09
Expired		(3,577,414	)	$	6.05		-		$	-
Exercise		(9,165,892	)	$	0.40		(887,000	)	$	0.0001
Balance, end of period		22,912,774		$	0.63		11,627,924		$	2.42

Stock Options and Performance Share Units (Tables)

9 Months Ended

Sep. 30, 2024

Schedule of Stock Options Activity

	September 30, 2024						December 31, 2023
	Number of stock options			Weighted average price			Number of stock options			Weighted average price
Balance, beginning of period		5,063,856		$	1.96			785,000		$	4.74
Granted		804,600		$	0.78			4,743,356		$	1.80
Cancelled		(20,400	)	$	(2.31	)		(464,500	)	$	(5.02	)
Balance, end of period		5,848,056		$	0.73			5,063,856		$	1.96

Schedule of Share-based Payment Arrangement, Option, Exercise Price Range

		Range of Exercise prices				Outstanding				Weighted average life (years)				Weighted average exercise price				Exercisable on September 30, 2024
Stock options		$	0.57-5.50				5,848,056				8.19			$	0.73				1,798,750

Terravis Energy, Inc. [Member]

Schedule of Stock Options Activity

As of September 30, 2024 and December 31, 2023, Terravis Energy Inc., a wholly owned subsidiary of the Company, has the following options outstanding:

Schedule of Stock Options Activity

	September 30, 2024				December 31, 2023
	Number of stock options		Weighted average price		Number of stock options		Weighted average price
Balance, beginning of period		1,350,000	$	0.01		1,350,000	$	0.01
Granted		-	$	-		-	$	-
Balance, end of period		1,350,000	$	0.01		1,350,000	$	0.01

Schedule of Share-based Payment Arrangement, Option, Exercise Price Range

		Range of Exercise prices				Outstanding				Weighted average life (years)				Weighted average exercise price				Exercisable on September 30, 2024
Stock options		$	0.01				1,350,000				7.53			$	0.01				1,350,000

Going Concern (Details Narrative) - USD ($)					3 Months Ended		9 Months Ended		12 Months Ended
Going Concern (Details Narrative) - USD ($)	May 09, 2024	Mar. 20, 2024	Nov. 02, 2023	Sep. 30, 2022	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023	Aug. 06, 2021	Aug. 03, 2021
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Cash and cash equivalents					$ 1,857,685		$ 1,857,685		$ 3,365,778
Accumulated deficit					60,176,150		60,176,150		48,313,177
Net loss					4,134,917	$ 3,949,298	11,862,973	$ 11,270,023
Working capital					$ 5,880,926		5,880,926		$ 1,956,894
Proceeds from other equity							32,500,000
Number of common shares issued, value				$ 30,000,000		88,409	$ 3,195,201	95,541
Sale of stock issued							950,000
Net proceeds							$ 380,000
Issued of warrants					22,912,764		22,912,764
Common Stock [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Net loss
Number of common shares issued, value						$ 2	$ 526	$ 3
Sale of stock issued		2,372,240	1,925,000				2,372,240	27,429
Net proceeds							$ 1,535,591	$ 95,541
Sale of stock issued						22,995	5,260,161	27,429
Proceeds from issuance of warrants		$ 2,629,083	$ 4,261,542
Warrants an exercise price					$ 0.0001		$ 0.0001		$ 0.0001
Pre-funded Warrants [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Number of common shares issued, value							$ 15
Sale of stock issued		1,477,892	1,575,000				1,477,892
Warrant [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Sale of stock issued							7,700,264
Proceeds from issuance of warrants	$ 3,639,000								$ 3,638,000
Issued of warrants	2,840,000	7,700,264	7,000,000
Convertible shares of common stock	7,000,000	7,700,264	7,000,000		7,700,264		7,700,264		7,000,000	3,446,515	130,909
Warrants an exercise price	$ 0.5198	$ 0.74	$ 1.34		$ 0.74		$ 0.74		$ 0.5198	$ 6.05	$ 6.05
Warrants and rights outstanding, term			5 years 6 months
Market Offering Agreement [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Number of common shares issued, value				$ 13,000,000			$ 13,000,000	$ 13,000,000
Gross sales price, percentage				3.00%
ATM Agreement [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Sale of stock issued							604,048
Net proceeds							$ 780,356
ATM Agreement [Member] \| Common Stock [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Sale of stock issued							504,921
Net proceeds							$ 566,118

Schedule of Inventory (Details) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Inventory Disclosure [Abstract]
Finished goods	$ 1,913,228	$ 1,717,669
Promotional items	101,660	101,660
Raw materials	4,123,172	1,812,163
Inventory	$ 6,138,060	$ 3,631,492

Schedule of Prepaid Expenses and Deposits (Details) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Prepaid Expenses And Deposits
Consulting, services, and advertising	$ 237,594	$ 5,215
Deposits	19,006	1,492,034
Prepaid expenses and deposits, net	$ 256,600	$ 1,497,249

Prepaid expenses and deposits (Details Narrative) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Prepaid Expenses And Deposits
Prepaid expenses and deposits	$ 237,594	$ 5,215

Schedule of Property and Equipment (Details) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Less accumulated depreciation	$ (2,682,566)	$ (1,664,580)
Property and Equipment, net	13,966,210	14,483,436
Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	3,142,683	2,784,098
Manufacturing Facility [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	3,340,463	3,260,679
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	154,065	146,049
Product Molds [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	524,476	524,476
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	96,056	84,070
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	903,721	861,332
Building [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	6,079,410	6,079,410
Land [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	2,239,405	2,239,405
Automobiles [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 168,497	$ 168,497

Shareholders’ Equity (Deficit) (Details Narrative) - USD ($)					3 Months Ended	9 Months Ended		12 Months Ended
	May 09, 2024	Mar. 20, 2024	Nov. 02, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Accumulated Other Comprehensive Income (Loss) [Line Items]
Sale of common stock, shares						950,000
Proceeds from sale of common stock						$ 380,000
Stock issued during period, value, new issues				$ 30,000,000	$ 88,409	$ 3,195,201	$ 95,541
Common stock, shares authorized						299,000,000		299,000,000
Common stock par value						$ 0.0001		$ 0.0001
Share based payment award, options, grants in period, gross						804,600		4,743,356
Series A Preferred Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Share based payment award, options, grants in period, gross						100
Preferred stock par value						$ 0.0001		$ 0.0001
Preferred stock voting rights						Series A preferred Stock have voting rights equal to 299 shares of common stock, per share of preferred stock
Series B Preferred Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Share based payment award, options, grants in period, gross						100,000
Preferred stock par value						$ 0.0001		$ 0.0001
Preferred stock voting rights						Series B preferred Stock have voting rights equal to 10,000 shares of common stock, per share of Preferred Stock
Pre-funded Warrants [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Sale of common stock, shares						1,477,892		1,575,000
Proceeds from issuance of warrants						$ 1,093,492		$ 2,110,342
Restricted Stock [Member] \| Operating Expense [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stock issued during period, value, new issues							1,022,963
Restricted Stock [Member] \| Consultant [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stock issued during period, value, new issues						753,069
Maximum [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stock issued during period, value, new issues						$ 30,000,000	$ 30,000,000
Common Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Sale of common stock, shares		2,372,240	1,925,000			2,372,240	27,429
Proceeds from sale of common stock						$ 1,535,591	$ 95,541
Stock issued during period, value, new issues					$ 2	$ 526	$ 3
Number of shares issued					22,995	5,260,161	27,429
Proceeds from issuance of warrants		$ 2,629,083	$ 4,261,542
Common stock, shares authorized					299,000,000	299,000,000	299,000,000
Common Stock [Member] \| Operating Expense [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stock issued during period, value, new issues							$ 635,000
Number of shares issued							250,000
Common Stock [Member] \| Consultant [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stock issued during period, value, new issues						$ 382,700
Number of shares issued						333,841
Pre-funded Warrants [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stock issued during period, value, new issues						$ 15
Number of shares issued		1,477,892	1,575,000			1,477,892
Warrant [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Number of shares issued						7,700,264
Proceeds from issuance of warrants	$ 3,639,000							$ 3,638,000
Warrant One [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Number of shares issued						1,900,000
ATM Agreement [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Sale of common stock, shares						604,048
Proceeds from sale of common stock						$ 780,356
ATM Agreement [Member] \| Common Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Sale of common stock, shares						504,921
Proceeds from sale of common stock						$ 566,118
Market Offering Agreement [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stock issued during period, value, new issues				$ 13,000,000		$ 13,000,000	$ 13,000,000

Related Party Transactions (Details Narrative) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Chief Executive Officer [Member] \| Related Party [Member]
Related Party Transaction [Line Items]
Other Receivables	$ 14,303	$ 2,192

Schedule of Changes in Operating Assets and Liabilities (Details) - USD ($)	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Decrease (increase) in accounts receivable	$ (3,320)	$ (455,509)
Decrease (increase) in other receivable	11,898	103,998
Decrease (increase) in inventory	(2,506,568)	(2,205,697)
Decrease (increase) in prepaid expenses and deposits	1,240,649	26,200
Increase (decrease) in payroll taxes payable	26,581	43,738
Increase (decrease) in accounts payable and accrued liabilities	1,004,819	(152,474)
Changes in operating assets and liabilities	$ (225,941)	$ (2,639,744)

Investments (Details Narrative)	9 Months Ended		12 Months Ended
Investments (Details Narrative)	Sep. 30, 2024 USD ($)	Sep. 30, 2024 CAD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2020 CAD ($)	Dec. 31, 2019 USD ($) shares	Sep. 30, 2024 CAD ($)	Dec. 31, 2023 USD ($)
Stock issued during period, shares, acquisitions \| shares					10,000,000
Stock issued during period, value, acquisitions					$ 50,000
Advanced receivable for stock issuance	$ 24,423						$ 24,423
Investment owned, cost	66,308					$ 90,000
Proceeds from loans	3,054	$ 4,129	$ 28,387	$ 40,000
Investment owned, balance, principal amount	66,308					$ 90,000
Interest costs incurred	$ 3,123	$ 4,275
Mobile Phone Development Company [Member]
Equity method investment, ownership percentage					10.00%

Schedule Right-of-use Asset (Details) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Operating Lease Obligations
Right-of-use asset	$ 658,152	$ 917,354
Current lease liability	248,540	328,229
Long-term lease liability	$ 433,214	$ 608,761

Schedule of Lease Cost (Details) - USD ($)	9 Months Ended
Schedule of Lease Cost (Details) - USD ($)	Sep. 30, 2024	Sep. 30, 2023
Operating Lease Obligations
Operating lease cost	$ 331,057	$ 368,984

Schedule of Measurement of Lease Liabilities (Details) - USD ($)	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Operating Lease Obligations
Operating cashflow	$ 328,113	$ 378,102

Schedule of Future Minimum Lease Payments (Details) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Operating Lease Obligations
2025	$ 294,437
2026	275,720
2027	187,453
Total future minimum lease payments	757,610
Less: amount representing interest	(75,856)
Present value of future payments	681,754
Current portion	248,540	$ 328,229
Long term portion	$ 433,214	$ 608,761

Operating Lease Obligations (Details Narrative)	9 Months Ended		12 Months Ended
Operating Lease Obligations (Details Narrative)	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($) ft²	Dec. 31, 2021 USD ($)	Dec. 31, 2019 USD ($)
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Monthly lease payments	$ 328,113	$ 378,102
Lease Agreement [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Lease expiration date				Jun. 01, 2022	May 31, 2024	Jul. 31, 2022
Monthly lease payments				$ 22,101	$ 19,910	$ 2,221
Area of land \| ft²				20,296
Additional fees				$ 4,418
Monthly lease payments	$ 3,600		$ 3,350
Incremental borrowing rate	10.00%

Long term Debt (Details Narrative)						9 Months Ended			12 Months Ended
Long term Debt (Details Narrative)	Sep. 04, 2024 USD ($)	Jul. 19, 2024 USD ($)	Feb. 14, 2023 USD ($)	Feb. 14, 2023 CAD ($)	May 04, 2022 USD ($) ft²	Sep. 30, 2024 USD ($)	Sep. 30, 2024 CAD ($)	Sep. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2020 CAD ($)	May 14, 2024 USD ($)	Dec. 31, 2023 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2022 CAD ($)
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Purchase price						$ 500,760		$ 3,446,161
Total principal						3,054	$ 4,129			$ 28,387	$ 40,000
Accounts receivable		$ 330,000				466,442							$ 463,122
Net of issuance costs		3,888,740
Debt instrument loan forgiveness percentage										25.00%	25.00%
Debt instrument fair value														$ 28,387	$ 40,000
Debt Instrument, Decrease, Forgiveness			$ 7,493	$ 10,000
Loan Agreement [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Square-foot \| ft²					152,847
Purchase price					$ 8,150,000
Total principal									$ 5,300,000
Interest rate									2.25%
Deposits									$ 667,409
Accounts balance						386,164
Principal and accrued interest						$ 5,325,664
Maturity amount												$ 5,300,000
Revolving Financing and Assignment Agreement [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Revolving financing		$ 6,000,000
Maturity months		24 months
Credit and security amount		$ 5,060,000.00
Interest reserve		790,000
Drawn down amount		$ 4,730,000
Credit and Security Agreement [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Maturity months	36 months
Credit and security amount	$ 1,487,200
Interest reserve	$ 1,437,998

Loss per Share (Details Narrative) - $ / shares		3 Months Ended		9 Months Ended
Loss per Share (Details Narrative) - $ / shares	May 01, 2023	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Earnings per share basic		$ 0.14	$ 0.23	$ 0.47	$ 0.65
Earnings per share diluted		$ 0.14	$ 0.23	$ 0.47	$ 0.65
Weighted average number of shares outstanding basic		29,432,794	17,429,685	25,540,754	17,252,521
Weighted average number of shares outstanding diluted		29,432,794	17,429,685	25,540,754	17,252,521
Common stock, shares authorized		299,000,000		299,000,000		299,000,000
Common stock, shares issued		30,920,397		30,920,397		17,436,805
Common stock, shares outstanding		30,920,397		30,920,397		17,436,805
Antidilutive securities, shares				29,717,838	8,286,392
Performance Shares [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares issued, shares	400,000			300,000	300,000
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities, shares				22,912,764	3,939,924
Common Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities, shares				23,212,764	4,239,924
Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities, shares				357,018	170,212
Performance Shares [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities, shares				5,848,056
Equity Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities, shares				5,848,056	3,576,256
Common Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Common stock, shares authorized		299,000,000	299,000,000	299,000,000	299,000,000
Common stock, shares issued		30,920,397	17,436,805	30,920,397	17,436,805
Common stock, shares outstanding		30,920,397	17,436,805	30,920,397	17,436,805
Shares issued, shares			22,995	5,260,161	27,429

Schedule of Warrants Exercise Price (Details)	9 Months Ended
Schedule of Warrants Exercise Price (Details)	Sep. 30, 2024 $ / shares shares
Warrant, outstanding	22,912,764
Weighted average life (years)	5 years 10 days
Warrants One [Member]
Exercise price \| $ / shares	$ 2.40
Warrant, outstanding	62,500
Weighted average life (years)	5 months 19 days
Warrants expiry date	Mar. 20, 2025
Warrants Two [Member]
Exercise price \| $ / shares	$ 4.00
Warrant, outstanding	300,000
Weighted average life (years)	2 years 3 months
Warrants expiry date	Dec. 31, 2026
Warrants Three [Member]
Exercise price \| $ / shares	$ 0.74
Warrant, outstanding	7,700,264
Weighted average life (years)	4 years 11 months 23 days
Warrants expiry date	Sep. 20, 2029
Warrants Four [Member]
Exercise price \| $ / shares	$ 0.40
Warrant, outstanding	1,900,000
Weighted average life (years)	4 years 11 months 23 days
Warrants expiry date	Sep. 21, 2029
Warrants Five [Member]
Exercise price \| $ / shares	$ 0.52
Warrant, outstanding	12,950,000
Weighted average life (years)	5 years 1 month 28 days
Warrants expiry date	Nov. 26, 2029

Schedule of Warrants Activity (Details) - $ / shares	9 Months Ended	12 Months Ended
Schedule of Warrants Activity (Details) - $ / shares	Sep. 30, 2024	Dec. 31, 2023
Warrants
Number of warrants, Balance	11,627,924	3,939,924
Weighted average price, Balance	$ 2.42	$ 5.84
Number of warrants, Issuance	24,028,156	8,575,000
Weighted average price, Issuance	$ 0.55	$ 1.09
Number of warrants, Expired	(3,577,414)
Weighted average price, Expired	$ 6.05
Number of warrants, Exercise	(9,165,892)	(887,000)
Weighted average price, Exercise	$ 0.40	$ 0.0001
Number of warrants, Balance	22,912,774	11,627,924
Weighted average price, Balance	$ 0.63	$ 2.42

Warrants (Details Narrative) - USD ($)					3 Months Ended	9 Months Ended		12 Months Ended
Warrants (Details Narrative) - USD ($)	May 09, 2024	Mar. 20, 2024	Nov. 02, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023	Aug. 06, 2021	Aug. 03, 2021
Connection to the sale						950,000
Pre warrants exercised						9,165,892		887,000
Shares issued				$ 30,000,000	$ 88,409	$ 3,195,201	$ 95,541
Number of warrant						22,912,764
Share price						$ 69		$ 89
Number of stock options restricted stock units								400,000
Weighted average life (years)						5 years 10 days
Pre-funded Warrants [Member]
Number of warrant						688,000		887,000
Common Stock [Member]
Representative warrants are exercisable						688,000		887,000
Holder [Member]
Number of warrant								300,000
Cancelled shares								400,000
Warrants Four [Member]
Exercise price						$ 0.40
Number of shares issued						1,900,000
Warrants expiry date						Sep. 21, 2029
Number of warrant						1,900,000
Weighted average life (years)						4 years 11 months 23 days
Warrant [Member]
Exercise price	7,000,000	7,700,264	7,000,000			7,700,264		7,000,000	3,446,515	130,909
Exercise price	$ 0.5198	$ 0.74	$ 1.34			$ 0.74		$ 0.5198	$ 6.05	$ 6.05
Proceeds from issuance of warrants	$ 3,639,000							$ 3,638,000
Number of shares issued						7,700,264
Number of warrant	2,840,000	7,700,264	7,000,000
Number of new warrants issued	12,950,000							12,950,000
Common Stock [Member]
Connection to the sale		2,372,240	1,925,000			2,372,240	27,429
Exercise price						$ 0.0001		$ 0.0001
Proceeds from issuance of warrants		$ 2,629,083	$ 4,261,542
Number of shares issued					22,995	5,260,161	27,429
Shares issued					$ 2	$ 526	$ 3
Pre-funded Warrants [Member]
Number of shares issued		1,477,892	1,575,000			1,477,892
Pre warrants exercised						1,477,892
Shares issued						$ 15
Prefunded Warrant [Member]
Exercise price								$ 1.34
Common Stock [Member]
Connection to the sale						2,372,240		1,925,000
Pre-funded Warrants [Member]
Connection to the sale						1,477,892		1,575,000
Proceeds from issuance of warrants						$ 1,093,492		$ 2,110,342
Warrant [Member]
Connection to the sale						7,700,264		7,000,000

Schedule of Stock Options Activity (Details) - $ / shares	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Number of options, balance, beginning of period	5,063,856	785,000
Weighted average price, balance, beginning of period	$ 1.96	$ 4.74
Number of options, granted	804,600	4,743,356
Weighted average price, granted	$ 0.78	$ 1.80
Number of options, cancelled	(20,400)	(464,500)
Weighted average price, cancelled	$ (2.31)	$ (5.02)
Number of options, balance, end of period	5,848,056	5,063,856
Weighted average price, balance, end of period	$ 0.73	$ 1.96
Terravis Energy, Inc. [Member]
Number of options, balance, beginning of period	1,350,000	1,350,000
Weighted average price, balance, beginning of period	$ 0.01	$ 0.01
Number of options, granted
Weighted average price, granted
Number of options, balance, end of period	1,350,000	1,350,000
Weighted average price, balance, end of period	$ 0.01	$ 0.01

Schedule of Share-based Payment Arrangement, Option, Exercise Price Range (Details)	9 Months Ended
	Sep. 30, 2024 $ / shares shares
Lower Range of Exercise prices	$ 0.57
Upper Range of Exercise prices	$ 5.50
Number of Shares Outstanding \| shares	5,848,056
Weighted average life (years)	8 years 2 months 8 days
Weighted average exercise price	$ 0.73
Number of Shares Exercisable \| shares	1,798,750
Terravis Energy, Inc. [Member]
Upper Range of Exercise prices	$ 0.01
Number of Shares Outstanding \| shares	1,350,000
Weighted average life (years)	7 years 6 months 10 days
Weighted average exercise price	$ 0.01
Number of Shares Exercisable \| shares	1,350,000

Stock Options and Performance Share Units (Details Narrative) - USD ($)					9 Months Ended		12 Months Ended
	Jul. 23, 2024	May 01, 2023	Nov. 11, 2022	Dec. 29, 2021	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock option issued					804,600		4,743,356
Stock option repricing	$ 5,388,956
Exercise prices per share	$ 0.7042
Additional expense	$ 93,140				$ 3,105,869	$ 4,711,868
Stock option issued					20,400		464,500
Employees And Directors [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock option issued					804,600
Stock option issued					8,300
Employees And Directors [Member] \| Minimum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Exercise price					$ 0.57
Expiration date					Feb. 01, 2029
Employees And Directors [Member] \| Maximum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Exercise price					$ 1.37
Expiration date					Jul. 28, 2034
Employees Directors And Consultants [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock option issued							4,743,356
Stock option issued							81,600
Employees Directors And Consultants [Member] \| Minimum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Exercise price							$ 1.44
Expiration date							Jan. 30, 2028
Employees Directors And Consultants [Member] \| Maximum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Exercise price							$ 4.20
Expiration date							Oct. 31, 2033
Restricted Stock Units (RSUs) [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares issued, shares		1,600,000
Performance Shares [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares issued, shares		400,000			300,000	300,000
Stock option issued			700,000
Performance Shares [Member] \| Chief Executive Officer [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock option issued				400,000
Performance Shares [Member] \| Director [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock option issued				300,000
Stock Options [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares issued, shares		2,000,000
2015, 2021 and 2022 Equity Incentive Plans [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share based compensation, description					the number of shares of common stock reserved for issuance under the option plan shall not exceed 10% of the issued and outstanding shares of common stock of the Company, have a maximum term of 10 years, and vest at the discretion of the Board of Directors.

Warrant Inducement (Details Narrative) - USD ($)		9 Months Ended	12 Months Ended
Warrant Inducement (Details Narrative) - USD ($)	May 09, 2024	Sep. 30, 2024	Dec. 31, 2023	Mar. 20, 2024	Nov. 02, 2023	Aug. 06, 2021	Aug. 03, 2021
Issued of warrants		22,912,764
Warrant [Member]
Convertible shares of common stock	7,000,000	7,700,264	7,000,000	7,700,264	7,000,000	3,446,515	130,909
Exercise price per share	$ 0.5198	$ 0.74	$ 0.5198	$ 0.74	$ 1.34	$ 6.05	$ 6.05
Number of shares issued	12,950,000		12,950,000
Proceeds from issuance of warrants	$ 3,639,000		$ 3,638,000
Non cash deemed dividend	$ 4,996,000
Issued of warrants	2,840,000			7,700,264	7,000,000
Shares issuable recorded as liability	4,160,000	4,160,000
Warrant inducement shares		2,383,000

Rental Income (Details Narrative)	9 Months Ended		12 Months Ended
Rental Income (Details Narrative)	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2022 CAD ($)
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Lease payments	$ 328,113	$ 378,102
Rental income	$ 76,866	$ 139,892
Sublease Agreement [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Sublease commence date			Sep. 15, 2022	Sep. 15, 2022
Expiration date			May 31, 2024	May 31, 2024
Lease payments			$ 15,515	$ 19,992

Subsequent Events (Details Narrative) - Subsequent Event [Member]	Oct. 17, 2024 USD ($)
Subsequent Event [Line Items]
Annual expenses	$ 1,500,000
Bid requirement value	$ 1

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