Company: WKSP
Filing Date: 2025-03-28
Form Type: S-1
Source: 0001641172-25-001309
Chunk: 26

Company: Worksport Ltd
Filing Date: 2025-03-28
Form: S-1
Chunk 26
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0 Wh trail slightly behind batteries with capacities
equal to or less than 500 Wh in both market size and compound annual growth rate.2

When paired with the SOLIS cover, the COR energy storage
system will be a market outlier in that it can be charged safely while mobile whereas competing portable power stations are intended to
be stationary during charging.

| 1. | Precedence Research. Portable Power Station Market. Retrieved from https://www.precedenceresearch.com/portable-power-station-market |
| 2. | Market Research Future. Global Portable Power Station Market Research Report. 2023.                                                 |

Distribution

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.

| 12 |

The specialty equipment aftermarket consists of three
major types of customers, which include master warehouse distributors and big box stores, dealers and wholesalers, and retail end consumers.
Master warehouse distributors and big box stores stock and distribute products to their customers, which are usually local dealers and
wholesalers. Dealers and wholesalers are local stores which sell products to some businesses and retail consumers in their area and online.
Dealers purchase most of their products from their local distributor who delivers to them regularly. Retail end consumers are the end
users of the products.

Competition

Tonneau Cover Competitors

The Tonneau Cover market is relatively consolidated
with one industry leader, Real Truck (formerly Truck Hero), having the largest market share. Real Truck has acquired upwards of 16 independent
tonneau cover brands in North America, allowing it to concurrently target many different niche markets but also potentially causing it
to cannibalize its own sales. We compete directly with Real Truck. Other competitors in this space include Truck Accessories Group (primarily
Leer), Agricover (primarily Access), Truck Covers USA, and Paragon.

We believe that being independent, innovative, operationally
lean, and competitively priced will enable us to acquire a larger portion of the existing market share. In order to execute on this, we
have a small and effective sales team to forge strong business-to-business relationships as well as a small and effective customer support
team to service