Company: WKSP
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000850
Chunk: 103

Company: Worksport Ltd
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 103
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31, 2024, we had an accumulated deficit of $64,476,966. We believe net
operating losses will decrease or become net income in the near future as we ramp up sales of our AL3 tonneau covers and launch highly-anticipated
product lines, such as our AL4 and SOLIS tonneau covers; however, these product launches will require additional investments, and we
will need to invest in additional research and development for our COR energy storage systems and future product lines. The market releases
for these additional product lines may occur later than we expect or not at all. We are unsure whether we will be profitable in the near
future while we continue to ramp up our product offerings, bolster our sales channels, and increase output capacity, and we cannot assure
you that we will ever achieve or be able to maintain profitability in the future. Even if we can successfully develop our additional
products and attract customers, there can be no assurance that we will be financially successful. For example, as we expand our product
portfolio, and expand internationally, we will need to manage costs effectively to sell those products at our expected margins. Failure
to become profitable would materially and adversely affect the value of your investment. If we are ever to achieve profitability, it
will be dependent upon the successful development and commercial introduction and acceptance of our consumer products, and our services,
which may not occur.

We
may not succeed in establishing, maintaining and strengthening our brand, which would materially and adversely affect customer acceptance
of our products and our business, prospects, financial condition, results of operations and cash flows.

Our
business and prospects heavily depend on our ability to develop, maintain and strengthen the Worksport brand. If we are not able to establish,
maintain and strengthen our brand, we may lose the opportunity to build a critical mass of customers. Our ability to develop, maintain
and strengthen our brand will depend heavily on our ability to provide high quality products and engage with our customers as intended,
as well as depend on the success of our customer development and marketing efforts. The automobile accessory and parts industry is intensely
competitive, and we may not be successful in building, maintaining and strengthening the Worksport brand. Many of our current and potential
competitors have greater name recognition, broader customer relationships and substantially greater marketing resources than we do. If
we do not develop and maintain a strong brand, our business, prospects, financial condition, results of operations and cash flows could
be materially and adversely impacted.

In
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