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Basis of Presentation and Business Condition
12 Months Ended
Dec. 31, 2022
Accounting Policies [Abstract]  
Basis of Presentation and Business Condition

2. Basis of Presentation and Business Condition

 

a) 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”).

 

b) Basis of Measurement

 

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

 

c) Consolidation

 

The Company’s 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.

d) Functional and Presentation Currency

 

These consolidated financial statements are presented in United States Dollars. The functional currency of the Company and all its subsidiaries is the United States Dollar. For purposes of preparing these consolidated financial statements, transactions denominated in Canadian Dollar were converted to United States Dollar 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 consolidated statement of operations and comprehensive loss.

 

e) Use of Estimates

 

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

 

f) Reclassification

 

Certain amounts in the prior period Consolidated Statements of Cash Flows for the year ended December 31, 2021 have been reclassified to conform with current period presentation. The Company reclassified $169,918 from cash used in financing activities to cash used in operating activities. This reclassification resulted in an increase from $4,046,705 to $4,210,623 in net cash used in operating activities and an increase from $32,637,961 to $32,801,879 in net cash provided by financing activities.

 

 

Worksport Ltd.

Notes to the Consolidated Financial Statements

December 31, 2022 and 2021