Company: WKSP
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023334
Chunk: 76

Company: Worksport Ltd
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 8
Chunk 76
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 making them strong and competitive
products in an otherwise consolidated and saturated market. The Worksport COR, however, operates in a much wider yet unsaturated market.
The global Portable Power Station market is quickly growing, and the competitive landscape is far from consolidated. The solar tonneau
cover market is in its infancy, and it’s a market in which we have first-mover advantage. To ensure we do not fall behind future
competitors, we are highly focused on protecting our intellectual property both domestically and abroad.

Economic
Conditions and Market Trends

As
a result of a number of factors, our historical results of operations may not be comparable to our results of operations in future periods,
and our results of operations may not be directly comparable from period to period. Set forth below is a brief discussion of the key
factors impacting our results of operations.

Climate
Change

Climate
change threatens to cause many foreseeable as well as unforeseeable ramifications. In cautious preparation for those that are foreseeable,
we have strategically begun domestic manufacturing operations in Western New York – an economically growing region not immediately
threatened by climate change to the same extent as other regions and possibly one that may benefit from future population migrations
within the U.S. Further, we intend to lower our own carbon footprint by investing in energy-saving measures in our factory in West Seneca,
NY. Considering climate change may also exacerbate geopolitical tensions, we are working to diversify our supply chain and lower our
reliance on any particular region or country for raw materials in order to lower our exposure to climate change-induced economic or political
instability.

We
believe our Worksport SOLIS and Worksport COR products will be received positively by the public for their resilience to, and even increased
utility as a result of, Climate Change. However, we acknowledge the potentially negative environmental impacts of poor battery recycling
and increasing demand for precious metals. We are actively researching ways to lower such environmental impacts.

Inflation

Prices
of certain commodity products, including raw materials, are historically volatile and are subject to fluctuations arising from changes
in domestic and international supply and demand, labor costs, competition, market speculation, government regulations, trade restrictions
and tariffs. Increasing prices of the component materials for parts of our goods may impact the availability, quality and price of our
products as suppliers search for alternatives to existing materials and increase the prices they charge. Our suppliers may also fail
to provide consistent quality of product as they may substitute lower cost materials to maintain pricing levels. Rapid