Company: WKSP
Filing Date: 2025-03-28
Form Type: S-1
Source: 0001641172-25-001309
Chunk: 49

Company: Worksport Ltd
Filing Date: 2025-03-28
Form: S-1
Chunk 49
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 in control of our Company or otherwise discourage a potential
acquirer from attempting to obtain control of our Company, which in turn could reduce the price of our stock. In addition, Mr. Rossi could
use his voting influence to maintain our existing management and directors in office, delay or prevent changes in control of our Company,
or support or reject other management and Board proposals that are subject to stockholder approval, such as amendments to our employee
stock plans and approvals of significant financing transactions.

As a “controlled company” under Nasdaq’s rules, we may choose to exempt our Company from certain corporate governance requirements that could adversely affect our public stockholders.

Steven Rossi’s ownership of Series A Preferred
Stock gives him voting control over 51% of our outstanding voting stock. As long as Mr. Rossi owns a majority of our standing voting capital
stock, we will meet the definition of a “controlled company” under the corporate governance standards for Nasdaq-listed companies.
For so long as we are a “controlled company,” we are permitted to elect to rely, and may rely, on certain exemptions from
corporate governance rules, including:

| ● | an exemption from the rule that a majority of our Board must be independent directors;                                                                |
| ● | an exemption from the rule that the compensation of our Chief Executive Officer must be determined or recommended solely by independent directors and |
| ● | an exemption from the rule that our director nominees must be selected or recommended solely by independent directors.                                |

| 25 |

Although we do not intend to rely on the “controlled
company” exemption under the Nasdaq listing rules, we could elect to do so in the future. If we do so, a majority of the members
of our Board might not be independent directors, and our nominating, corporate governance, and compensation committees might not consist
entirely of independent directors.

As a result, you will not have the same protection
afforded to stockholders of companies subject to these corporate governance requirements. Our status as a controlled company could cause
our Common Stock to look less attractive to certain investors or harm our trading price.

IN ADDITION TO THE ABOVE RISKS, BUSINESSES ARE OFTEN SUBJECT TO RISKS NOT FORESEEN OR FULLY APPRECIATED BY MANAGEMENT. IN REVIEWING THIS FILING, POTENTIAL INVESTORS SHOULD KEEP IN MIND THAT OTHER POSSIBLE RISKS MAY ADVERSELY IMPACT THE COMPANY’S BUSINESS OPERATIONS AND THE VALUE OF THE COMPANY’S SEC