Item 5. Market for Registrant’s Common Equity
ITEM
5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
Market
Information
Our
common stock and Public Warrant commenced trading on The Nasdaq Capital Market under the symbols “WKSP” and “WKSPW,”
respectively, on August 4, 2021. Prior to trading on Nasdaq, our common stock was quoted on the OTCQB Market under the symbol “WKSP.”
Holders
of Common Stock
On
March 31, 2023, there were 176 holders of record of our common stock.
Stock
Transfer Agent
Our
transfer agent is Vstock Transfer, LLC., located at 18 Lafayette Place, Woodmere, NY 11598. Their telephone number is (212) 828-8436.
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Dividend
Policy
We
have never paid any cash dividends on our common stock. We anticipate that we will retain funds and future earnings to support operations
and to finance the growth and development of our business. Therefore, we do not expect to pay cash dividends in the foreseeable future.
Any future determination to pay dividends will be at the discretion of our Board and will depend on our financial condition, results
of operations, capital requirements, and other factors that our Board deems relevant. In addition, the terms of any future debt or credit
financings may preclude us from paying dividends.
Equity
Incentive Plans
In
July 2015, our Board and shareholders adopted the Worksport Ltd. 2015 Equity Incentive Plan (the “2015 Plan”), effective
as of July 5, 2015. The 2015 Plan provides for the grant of the following types of stock awards: (i) incentive stock options, (ii) nonstatutory
stock options, (iii) stock appreciation rights, (iv) restricted stock awards, (v) restricted stock unit awards and (vi) other stock awards.
The 2015 Plan is intended to help us secure and retain the services of eligible award recipients, provide incentives for such persons
to exert maximum efforts for our success and that of any affiliate and provide a means by which the eligible recipients may benefit from
increases in value of our common stock. The Board reserved 500,000 shares of common stock issuable upon the grant of awards under the
2015 Plan. As of December 31, 2022, zero shares of common stock were available under the 2015 Plan.
On
March 31, 2021, our Board and shareholders adopted the Worksport Ltd. 2021 Equity Incentive Plan (the “2021 Plan”). The 2021
Plan provides for the grant of the following types of stock awards: (i) incentive stock options, (ii) nonstatutory stock options, (iii)
stock appreciation rights, (iv) restricted stock awards, (v) restricted stock unit awards and (vi) other stock awards. The 2021 Plan
is intended to help us secure and retain the services of eligible award recipients, provide incentives for such persons to exert maximum
efforts for our success and that of any affiliate and provide a means by which the eligible recipients may benefit from increases in
value of our common stock. The Board reserved 1,250,000 shares of common stock issuable upon the grant of awards under the 2021 Plan.
As of December 31, 2022, 60,000 shares of common stock were available under the 2021 Plan.
In
September 2022 and November 2022, our Board and shareholders, respectively, approved and adopted the Worksport Ltd. 2022 Equity Incentive
Plan. The 2022 Plan authorizes the grant of the following types of stock awards: (i) incentive stock options, (ii) nonstatutory stock
options, (iii) stock appreciation rights, (iv) restricted stock awards, (v) restricted stock units, (vi) performance units, (vii) performance
shares and (viii) other awards as the administrator may determine. The 2022 Plan is to be administered by the Board, the Compensation
Committee or any other committee appointed by the Board. The 2022 Plan is intended to (i) attract and retain the best available personnel
for positions of substantial responsibility, (ii) provide incentives to individuals who perform services for us and (iii) promote the
success of the business. A total of 750,000 shares of common stock have been reserved for the issuance of awards under the 2022 Plan.
The 2022 Plan also contains an “evergreen formula” pursuant to which the number of shares of common stock available for issuance
under the 2022 Plan will automatically increase on January 1 of each calendar year during the term of the 2022 Plan, beginning with the
calendar year 2023, by an amount of shares of common stock so that the total amount of common stock available under the 2022 Plan is
equal to 15% of the total number of shares of common stock outstanding on December 31 st of the prior calendar year minus the
total number of shares reserved and available for issuance under the 2015 Plan and 2021 Plan. As of December 31, 2022, 737,500 shares
of common stock were available under the 2022 Plan.
Unregistered
Sales of Equity Securities
●
40,000
shares of common stock issued to Exchange Listing LLC on March 17, 2022 for consulting services
rendered per agreement signed on January 26, 2022.
●
10,000
shares of common stock issued to Zenfar Investments on January 13, 2022 for consulting services
rendered per agreement signed on March 3, 2021.
●
10,000
common shares issued to Rafael Oliveira on April 23, 2022 for employment services rendered
per agreement signed on March 7, 2022.
●
10,000
common shares issued to Steven Obadiah on April 23, 2022 for consulting services rendered per agreement signed on February 23, 2022.
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The
foregoing securities were issued in reliance on the exclusion from registration provided by Section 4(a)(2) of the Securities Act due
to the fact the issuance did not involve a public offering of securities.
EQUITY
PLAN INFORMATION
Plan
Category:
Number
of
securities
to be
issued
upon
exercise
of
outstanding
options,
warrants
and
rights:
Weighted
average
exercise
price of
outstanding
options,
warrants
and
rights:
Number
of
securities
remaining
available
for
future
issuance:
2015
Equity Incentive Plan:
Equity compensation
plans approved by security holders
672,500
$ 2.54
0
Equity
compensation plans not approved by security holders
0
0
0
Total
672,500
$ 2.54
0
2021
Equity Incentive Plan:
Equity compensation plans
approved by security holders
1,190,000
$ 5.5
60,000
Equity
compensation plans not approved by security holders
0
$ 0
0
Total
1,190,000
5.5
60,000
2022
Equity Incentive Plan: (1)
Equity compensation plans
approved by security holders
12,500
$ 1.60
737,500
Equity compensation plans
not approved by security holders
0
0
0
Total
12,500
$ 1.60
737,500
Total
1,875,000
$ 4.41
797,500
(1) The
2022 Plan also contains an “evergreen formula” pursuant to which the number of
shares of common stock available for issuance under the 2022 Plan will automatically increase
on January 1 of each calendar year during the term of the 2022 Plan, beginning with the calendar
year 2023, by an amount of shares of common stock so that the total amount of common stock
available under the 2022 Plan is equal to 15% of the total number of shares of common stock
outstanding on December 31 st of the prior calendar year minus the total number
of shares reserved and available for issuance under the 2015 Plan and 2021 Plan.
ITEM
6. [RESERVED].
Not
applicable.
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