Worksport Ltd (NASDAQ: WKSP) has grown its common shares outstanding from roughly 5.2 million to 14.7 million in the past twelve months — a 183% increase that came after a 1-for-10 reverse split in March 2025. That combination of consolidation and re-expansion sits at the center of an elevated dilution-risk profile that has drawn structural scrutiny as the stock circulates among active traders.

The numbers today

Shares outstanding sit at 14,712,529 as of mid-June 2026, per the company's latest prospectus supplement. The public float — the portion available for open-market trading — is approximately 9.8 million shares. The company is authorized to issue up to 45 million common shares, leaving roughly 30 million shares of headroom above the current count.

CEO Steven Rossi holds about 2.7 million shares plus 100 Series A preferred shares that carry 51% of all voting power regardless of common-share dilution.

Where the overhang lives

The single largest pool of potential new supply is 7.5 million warrants — contracts giving holders the right to buy shares at a fixed price. At strike prices ranging from $1.50 to $40, most are nominally out of the money. But that label is misleading here.

Institutional holder Armistice Capital has twice negotiated inducement deals — arrangements where an existing warrant holder exercises early in exchange for freshly issued warrants at a lower strike. In December 2025, Armistice exercised 2.2 million warrants whose weighted-average strike had been $6.82, accepting a reduced price of $2.90, and received 3.8 million new warrants struck at $3.00. That precedent means warrants currently sitting above the market can, through repricing, become exercisable — converting dormant overhang into real tradeable supply.

To put the scale in perspective: the 7.5 million warrants plus 453,026 Series C convertible preferred shares — preferred stock that converts into common on a one-for-one basis at any time — together total roughly 8 million shares, equal to about 81% of the current float.

The financing cadence

Worksport has raised capital in nearly every quarter since early 2025. The instruments have varied — an at-the-market facility (a program letting the company sell shares directly into daily trading through a broker), Regulation A preferred conversions, warrant inducements, and registered direct offerings — best-efforts deals where a placement agent sells shares on behalf of the company without guaranteeing the full amount will be placed. Two registered directs closed on June 17–18, 2026, priced at $1.20 and $0.70 per share, adding approximately 884,000 immediately tradeable shares.

The baby shelf — a capped registration statement that limits how much a small issuer can sell based on its public float — now has only about $291,000 of capacity remaining. Near-exhaustion of a shelf typically precedes a new filing to reload issuance capacity.

Reverse-split history

The March 2025 reverse split was the company's fourth: prior consolidations occurred in 2003 (1-for-100), 2019 (1-for-6), and 2021 (1-for-20). Each preceded renewed share issuance.

Dilution risk grade: 6 out of 10 — Elevated

The score reflects extremely high recent-activity and historical-pattern components, offset partly by the absence of toxic variable-rate convertible notes — instruments whose conversion price floats downward with the stock. All conversion and exercise prices here are fixed. The risk is mechanical repetition: a documented cycle of consolidation, issuance, and warrant repricing that has tripled the share count in a single year.

Over the next 12 months, up to 9.8 million additional shares could enter the float — a figure that matches the current float almost exactly.