Company: WKSP
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000850
Chunk: 120

Company: Worksport Ltd
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 120
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 which could cause the price
of our common stock or trading volume to decline.

Anti-takeover
provisions in our charter documents and Nevada law could discourage, delay or prevent a change of control of our Company and may affect
the trading price of our common stock.

We
are a Nevada corporation, and the anti-takeover provisions of the Nevada Control Shares Acquisition Act may discourage, delay or prevent
a change of control by limiting the voting rights of control shares acquired in a control share acquisition. In addition, our amended
and restated articles of incorporation, as amended (“Articles of Incorporation”), and amended and restated bylaws (“Bylaws”)
may discourage, delay or prevent a change in our management or control over us that stockholders may consider favorable. Among other
things, our Articles of Incorporation and Bylaws:

    ●
    authorize
    the issuance of “blank check” preferred stock that could be issued by our Board in response to a takeover attempt;

    ●
    provide
    that vacancies on our Board, including newly created directorships, may be filled only by a majority vote of directors then in office,
    except a vacancy occurring by reason of the removal of a director without cause shall be filled by vote of the stockholders; and

    ●
    limit
    who may call special meetings of stockholders.

These
provisions could have the effect of delaying or preventing a change of control, whether or not it is desired by, or beneficial to, our
stockholders.

We
do not intend to pay dividends in the foreseeable future.

We
currently do not expect to declare any dividends on our common stock in the foreseeable future. Any decision to declare or pay dividends
in the future will be at the discretion of our board of directors. Accordingly, your only opportunity to achieve a return on your investment
in our common stock may be if the market price of our common stock appreciates and you sell your shares at a profit. The market price
for our common stock may never exceed, and may fall below, the price that you pay for such common stock. See Part II, Item 5 “Market
for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities—Dividend Policy.”

Risks
Associated with Holding Cryptocurrency Reserves

Our
bitcoin acquisition strategy may expose us to various risks associated with bitcoin.

Bitcoin
is a highly volatile asset. Bitcoin is a highly volatile asset that has traded below $38,000