Company: WKSP
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000850
Chunk: 115

Company: Worksport Ltd
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 115
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Our
operations could be disrupted by geopolitical conditions, political and social instability, acts of war, terrorist activity or other
similar events. It is not possible to predict the broader consequences of current global conflicts, although such consequences can include
rising geopolitical tensions, rising regional instability, geopolitical shifts, cyberattacks or the disruption of energy exports for
the parties involved, neighboring parties, or supporting parties of these conflicts or their resulting sanctions. Such consequences could
materially adversely affect global trade, currency exchange rates, regional economies and the global economy. These situations remain
uncertain, and while it is difficult to predict the impact of any of the foregoing, these conflicts and actions taken in response to
these conflicts could increase our costs, disrupt our supply chain, reduce our sales and earnings, impair our ability to raise additional
capital when needed on acceptable terms, if at all, or otherwise adversely affect our business, financial condition, and results of operations.

24

Risks
Associated with Outsourced Manufacturing and Foreign Sourcing

Evolving
U.S. trade regulations and policies with China may in the future have a material and adverse effect on our business, financial condition
and results of operations.

Our
soft tonneau covers and some raw materials are sourced from China. Any restrictions or tariffs imposed on products that we or our suppliers
import for sale or production in the U.S. would adversely and directly impact our cost of sales. In addition, changes in U.S. trade regulations
and policies could have an adverse impact on trade relations between the U.S. and certain foreign countries, which could materially and
adversely affect our relationships with our international suppliers and reduce the supply of goods available to us. Further, we cannot
predict the extent to which the U.S. will adopt changes to existing trade regulations and policies, which creates uncertainties in planning
our sourcing strategies and forecasting our margins. If additional tariffs are imposed on our products , or other retaliatory trade
measures are taken, our costs could increase, and we may be required to raise our prices, which could materially and adversely affect
our results.

Changes
in U.S. trade policy, including the imposition of tariffs and the resulting consequences, could adversely affect our results of operations.

Many of our raw materials are purchased from suppliers in a variety of non-U.S. countries. The U.S. government’s
trade policy with countries where we source our products may change based on a number of factors, including, but not limited to, political
and economic factors