Company: WKSP
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023334
Chunk: 75

Company: Worksport Ltd
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 8
Chunk 75
---
., through its subsidiaries, designs, develops, manufactures, and owns the intellectual property on a variety of tonneau covers, solar
integrations, portable power systems, and clean heating & cooling solutions. Additionally, Worksport’s hard-folding cover,
designed and manufactured in the United States, is compatible with all major truck models and is gaining traction with newer truck makers
including the EV sector. Worksport seeks to capitalize on the growing shift of consumer mindsets towards clean energy integrations and
power grid independence with its proprietary solar solutions, mobile energy storage systems (ESS), and Cold-Climate Heat Pump (CCHP)
technology.

Rising
Popularity of Electric Vehicles

Electric
Vehicles (EVs) have been increasing in consumer interest, whether that interest takes the form of vehicle pre-orders, sales, or investments.
As we begin marketing our Worksport SOLIS and COR, we plan to market the SOLIS as a must-have accessory for electric light duty vehicle
owners while simultaneously riding the coattails of EV popularity to promote our other products (COR and conventional tonneau covers)
to the very large population of Americans that have an interest in EVs without the funds to purchase them. Further, participating in
the EV space allows us to target consumers with an interest in cutting-edge technologies – a great market in which to promote our
COR portable power system. Notably, the COR & SOLIS are compatible with existing internal combustion engine vehicles and will not
rely on the rapid adoption of EVs.

22

Regulatory
Environment Favoring Electric Vehicles

The
Build Back Better Bill was a strong indication of upcoming and favorable U.S. regulations. Many regulations that improve North America’s
EV charging infrastructure or provide grants to businesses operating in the EV space would benefit us. While we are primarily focused
on the light duty vehicle market, our energy products are particularly useful for electric light duty pickup trucks and, therefore, are
positioned to benefit greatly from any bill that increases the prevalence of such vehicles. However, President Donald Trump has signed
an executive order titled Unleashing American Energy in which he has indicated his administration will be reversing the electric vehicle
mandates of Joe Biden’s former administration, and he has further paused billions of dollars in funding allocated towards electric
vehicle charging stations. The future of the U.S.’s regulatory environment surrounding electric vehicles is uncertain.

Limited
Competitive Landscape

Our
conventional tonneau covers are engineered for enhanced user experience and resistance to wear-and-tear,