| Schedule of Long Term Debt |
Long-term
debt consists of:
Schedule of Long Term Debt
| |
|
March
31,
2026 |
|
|
December
31,
2025 |
|
| Revolving
Credit Facility (a) |
|
$ |
2,260,723
|
|
|
$ |
1,441,665 |
|
| Other
(b) |
|
|
1,177,945 |
|
|
|
1,233,493 |
|
| Long-term debt |
|
|
3,438,668 |
|
|
|
2,675,158 |
|
| Less
deferred debt issuance cost |
|
|
(23,234 |
) |
|
|
(37,868 |
) |
| Less
current installments |
|
|
(2,531,178 |
) |
|
|
(1,686,809 |
) |
| Long-term
debt |
|
$ |
884,256
|
|
|
$ |
950,481 |
|
| |
a) |
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 date of July
18, 2026, or 24 months. 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 March 31, 2026, the outstanding
balance of this loan was $2,260,723. |
| |
|
|
| |
|
For
collateral, the lender holds a first position on the Company’s major asset classes (accounts receivable, the factory in New
York, and inventory) other than the Company’s equipment. A non-usage fee of 0.25% is assessed quarterly and applied to the
difference between the quarter’s average daily outstanding loan balance and the total credit facility amount. As of March 31,
2026, the Company had an available balance of $2,479,490 to borrow on the Revolving Credit Facility. |
| |
|
|
| |
b) |
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 date of September 1, 2027, which is 36 months from initial funding.
Upon transaction close, the Company received net proceeds of $1,412,750 (net of issuance
costs of $43,735). The Company and its wholly owned subsidiary, Worksport New York Operations
Corporation, serve as guarantors on the loan. For collateral, the lender holds a first position
on the Company’s equipment, which is primarily manufacturing and warehousing equipment.
Interest on the loan is based on the prime rate plus 700 basis points per annum. At March
31, 2026, the outstanding balance of this loan was $1,154,711 (net of issuance costs of $23,234).
The
Company is in compliance with all covenants. |
|