Company: WKSP
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000850
Chunk: 123

Company: Worksport Ltd
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 123
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 appropriately
managed and integrated into our broader risk oversight strategy. 

Despite
our efforts to improve our cybersecurity measures, there can be no assurance that our initiatives will fully mitigate the risks posed
by cyber threats. The landscape of cybersecurity risks is constantly evolving, and we will continue to assess and update our cybersecurity
measures in response to emerging threats. We do, however, have cybersecurity insurance coverage in the aggregate amount of $1,000,000
per annual policy period, which covers damages from a range of potential cyber security issues including but not limited to property
damage, privacy liability, privacy regulatory defense, cyber extortion, and post breach remediation.

For
a discussion of potential cybersecurity risks affecting us, please refer to the “Risk Factors” section.

ITEM
2. PROPERTIES

As
of December 31, 2024, we had three facilities located throughout the U.S. and Canada. One of these facilities are owned and the remainder
are leased. Our principal facilities are as follows:

    Address
     
    Type
     
    Ownership
     
    Size
    (sq ft)
  
    2500
    N America Dr., West Seneca, NY 14224, U.S. (1)
     
    Corporate
    Headquarters, Warehouse, and Manufacturing
     
    Owned
    and mortgaged
     
    152,847

    55G
    East Beaver Creek Rd., Richmond Hill, Ontario L4B 1E5, Canada (2)
     
    Office,
    R&D Facility
     
    Rented
     
    20,296

    5146
    N. 23rd St. Ozark, MO 65721, U.S. (3)
     
    Office,
    R&D Facility
     
    Rented
     
    3,600

    (1)
    For
    further information on the property mortgage, see Note 13 - Indebtedness of Part II Item 8, Financial Statements and Supplementary
    Data, of this report.

    (2)
    Five-year
    lease, dated June 1, 2022, for a variable rate averaging $27,934 CAD per month over the lifetime of the lease not inclusive of additional
    fees, which also vary and averaged $6,832 CAD per month in 2024 not inclusive of taxes.

    (3)
    Twelve-month
    lease dated June 1