Company: WKSP
Filing Date: 2025-03-28
Form Type: S-1
Source: 0001641172-25-001309
Chunk: 23

Company: Worksport Ltd
Filing Date: 2025-03-28
Form: S-1
Chunk 23
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 top product categories for aftermarket accessory purchases in 20212,
and the size of the tonneau cover market within the USA is expected to grow at a compound annual growth rate of 8.6% from $3 billion in
2021 to $5 billion in 2027.7

As discretionary consumer goods, the specialty automotive
part market is subject to consumer spending trends. Per capita disposable income fell 7.8% during 2022 as government stimulus ended, though
it has since increased by 4.6%.8 Further, the Bureau of Labor has reported an increased
unemployment rate in February 2024 relative to prior months9, and the Federal Reserve
has projected unemployment rates may increase in 2024 and 2025.10 Together, these factors
suggest consumer disposable income and unemployment will need to be carefully monitored in order to accurately forecast the automotive
aftermarket accessories’ market potential year-to-year.

Consumers purchase automotive aftermarket accessories,
as well as tonneau covers, specifically, for various reasons. According to recent reports, 97%, 92%, 80%, and 62% of pickup truck owners
use their trucks for utility/work, travel/vacation, outdoor recreation, and off-road uses, respectively.2
Of those pickup truck owners who have purchased accessories for their trucks, 93%, 86%, 68%, and 43% of them use their pickup trucks for
day trips, carrying tools/gear, light off-roading, and car camping, respectively.2 Pickup
truck owners who use their vehicles for outdoor recreation, work, or off-roading are much more likely to purchase accessories when compared
to those who use their vehicles for other purposes.2 Worksport’s tonneau covers
largely benefit truck owners using their vehicles for any of these aforementioned purposes, and the SOLIS cover provides additional utility
for those utilizing their trucks for utility/work, outdoor recreation, and car camping, in particular.

Sales of truck bed covers occur across several channels,
among those including but not limited to part manufacturers, specialty retailers and online retailers. For physical location sales, the
most popular sales channels for truck bed covers include New Vehicle Dealerships and Specialty Retailers/Installers, which constituted
17% and 14% of physical location sales, respectively, in 2023.6 For online sales, the
most popular sales channels for truck bed covers include Online Only General Retailer, Specialty Retailers/Installers, and Direct from
Parts Manufacturers, which