Company: WKSP
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000850
Chunk: 102

Company: Worksport Ltd
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 102
---
 is no assurance that such financing will be available
on terms acceptable to the Company, if at all.

Our
independent auditors have included an explanatory paragraph in their audit report regarding the Company’s ability to continue as
a going concern. This going concern risk may materially limit our ability to raise additional funds through the issuance of new debt
or equity or may adversely affect the terms upon which such capital may be available. The inability to obtain sufficient financing on
acceptable terms could have a material adverse effect on the Company’s financial condition, results of operations, and business
prospects.

The
Company is actively pursuing strategies to mitigate these risks, focusing on transitioning towards revenue generation from its existing
product offerings and expanding its customer base. However, there can be no assurance that these efforts will prove successful or that
the Company will achieve its intended financial stability. The failure to successfully address these going concern risks may materially
and adversely affect the Company’s business, financial condition, and results of operations. Investors should consider the substantial
risks and uncertainties inherent in the Company’s business before investing in the Company’s securities.

Our
business, results of operations and financial condition could be adversely affected by the effects of widespread public health pandemics,
such as COVID-19, that are beyond our control.

A
significant outbreak, epidemic or pandemic of contagious diseases in any geographic area in which we operate or plan to operate could
result in a health crisis adversely affecting the economies and financial markets in which we operate as well as the overall demand for
our products. In addition, any preventative or protective actions that governments implement or that we take in response to a health
crisis, such as travel restrictions, quarantines, or site closures, may interfere with the ability of our employees, suppliers and customers
to perform their responsibilities. Such results could have a materially adverse effect on our business.

To
the extent the COVID-19 pandemic or a similar public health threat has an impact on our business, it is likely to also have the effect
of heightening many of the other risks described in this “Risk Factors” section.

16

We
are a growth stage company with a history of losses and expect to incur significant expenses and continuing losses for the foreseeable
future.

We
have incurred net losses since our inception. In the twelve months ended December 31, 2024 and 2023, we incurred operating losses of
$16,163,789 and $14,928,958, respectively, and as of December