Company: WKSP
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000850
Chunk: 94

Company: Worksport Ltd
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 94
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2024, all Worksport soft tonneau covers were manufactured in one of two facilities located in Meizhou, China and Foshan,
China according to Worksport’s specifications, schematics and blueprints. The facility in Meizhou has been a long-term supplier
of soft tonneau covers for Worksport, and the facility in Foshan was commissioned to produce Worksport soft tonneau covers in late 2023.
This second outsourced manufacturing facility has an output capacity two times greater than that of the manufacturing facility in Meizhou,
China, and we believe we can scale production at this newer facility without sacrificing quality or craftsmanship. 

10

Intellectual
Property

We
currently hold a broad collection of intellectual property rights relating to certain aspects of our parts and accessories and services.
This includes patents, trademarks, copyrights and trade secrets. Although we believe the ownership of such intellectual property rights
is an important factor in our business and that our success does depend in part on such ownership, we rely primarily on the innovative
skills, technical competence and marketing abilities of our personnel.

Patents

As
of December 31, 2024, our patent portfolio includes eleven (11) issued utility patents in the U.S., seven (7) issued utility patents
outside of the U.S., and thirty-seven (37) pending utility patent applications in various jurisdictions worldwide. Our portfolio further
includes five (5) issued design patents in the U.S., eighteen (18) design patents and registrations outside the U.S., and forty-two (42)
pending design applications in various jurisdictions worldwide. We are also in the process of preparing and filing several other utility
and design patent applications across relevant countries and jurisdictions.

Trademarks

As
of December 31, 2024, the Company has 37 trademark registrations and 13 pending trademark applications in various jurisdictions worldwide.

The
Market

We
primarily compete in the automotive aftermarket accessories and new energy  industries with a focus on the tonneau cover and the
portable power station markets.

Tonneau
Cover Market

There
are various forms of tonneau covers, each with their advantages and disadvantages, available for consumption through direct-to-consumer
and retailer and dealer sales channels. These mainly include but are not limited to   : solid one-piece caps and lids;
retractable covers; soft folding & roll-up covers; and hard folding & standing covers. Solid one-piece covers and retractable
covers tend to have limited functionality and tend to be