Company: WKSP
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000850
Chunk: 118

Company: Worksport Ltd
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 118
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 of operations.

Risks
Related to the Ownership of Our Securities

We
have a large number of authorized but unissued shares of our common stock which will dilute existing ownership positions when issued.

At
December 31, 2024, our authorized capital stock consists of 29,900,000 shares of common stock, of which approximately 25,883,795 remain available
for issuance, including shares of common stock issuable upon the exercise of outstanding warrants. Our management will continue to have
broad discretion to issue shares of our common stock in a range of transactions, including capital-raising transactions, mergers, acquisitions
and other transactions, without obtaining stockholder approval, unless stockholder approval is required under law or the rules of Nasdaq
or any other trading market on which our common stock may be listed. If our management determines it be appropriate to issue shares of
our common stock from the large pool of authorized but unissued shares for any purpose in the future and is not required to obtain stockholder
approval, your ownership position would be diluted without your further ability to vote on that transaction.

26

Our
common stock or warrants may be affected by limited trading volume and price fluctuations, which could adversely impact the value of
our common stock.

Our
common stock has experienced, and is likely to experience in the future, significant price and volume fluctuations, which could adversely
affect the market prices of our common stock without regard to our operating performance. In addition, we believe that factors such as
quarterly fluctuations in our financial results and changes in the overall economy or the condition of the financial markets could cause
the market prices of our common stock and warrants to fluctuate substantially. These fluctuations may also cause short sellers to periodically
enter the market in the belief that we will have poor results in the future. We cannot predict the actions of market participants and,
therefore, can offer no assurances that the market for our common stock and warrants will be stable or appreciate over time.

We
may need, but be unable, to obtain additional funding on satisfactory terms, which could dilute our stockholders or impose burdensome
financial restrictions on our business.

We
have relied upon cash from financing activities, and, in the future, we hope to rely on revenues generated from operations to fund the
cash requirements of our activities. However, there can be no assurance that we will be able to generate any significant cash from our
operating activities in the future. Future financing may not be available on a