Company: WKSP
Filing Date: 2025-03-28
Form Type: S-1
Source: 0001641172-25-001309
Chunk: 38

Company: Worksport Ltd
Filing Date: 2025-03-28
Form: S-1
Chunk 38
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 significant uncertainty, which could adversely impact their price. The application of state and federal securities
laws and other laws and regulations to digital assets is unclear in certain respects, and it is possible that regulators in the United
States or foreign countries may interpret or apply existing laws and regulations in a manner that adversely affects the price of bitcoin.

The U.S. federal government, states, regulatory agencies,
and foreign countries may also enact new laws and regulations, or pursue regulatory, legislative, enforcement or judicial actions, that
could materially impact the price of bitcoin or the ability of individuals or institutions such as us to own or transfer bitcoin. For
example, the U.S. executive branch, the SEC, the European Union’s Markets in Crypto Assets Regulation, among others have been active
in recent years, and in the U.K., the Financial Services and Markets Act 2023, or FSMA 2023 became law. It is not possible to predict
whether, or when, any of these developments will lead to Congress granting additional authorities to the SEC or other regulators, or whether,
or when, any other federal, state or foreign legislative bodies will take any similar actions. It is also not possible to predict the
nature of any such additional authorities, how additional legislation or regulatory oversight might impact the ability of digital asset
markets to function or the willingness of financial and other institutions to continue to provide services to the digital assets industry,
nor how any new regulations or changes to existing regulations might impact the value of digital assets generally and bitcoin specifically.
The consequences of increased regulation of digital assets and digital asset activities could adversely affect the market price of bitcoin
and in turn adversely affect the market price of our common stock.

Moreover, the risks of engaging in a bitcoin treasury
strategy are relatively novel and have created, and could continue to create, complications due to the lack of experience that third parties
have with companies engaging in such a strategy, such as increased costs of director and officer liability insurance or the potential
inability to obtain such coverage on acceptable terms in the future.

The growth of the digital assets industry in general,
and the use and acceptance of bitcoin in particular, may also impact the price of bitcoin and is subject to a high degree of uncertainty.
The pace of worldwide growth in the adoption and use of bitcoin may depend, for instance, on public familiarity with digital assets, ease
of buying, accessing or gaining exposure to bitcoin, institutional demand for bitcoin as an investment asset, the participation of traditional
financial institutions in the digital assets industry, consumer