Company: WKSP
Filing Date: 2025-03-28
Form Type: S-1
Source: 0001641172-25-001309
Chunk: 39

Company: Worksport Ltd
Filing Date: 2025-03-28
Form: S-1
Chunk 39
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 demand for bitcoin as a means of payment, and the availability and popularity
of alternatives to bitcoin. Even if growth in bitcoin adoption occurs in the near or medium-term, there is no assurance that bitcoin usage
will continue to grow over the long-term.

Because bitcoin has no physical existence beyond the
record of transactions on the bitcoin blockchain, a variety of technical factors related to the bitcoin blockchain could also impact the
price of bitcoin. For example, malicious attacks by miners, inadequate mining fees to incentivize validating of bitcoin transactions,
hard “forks” of the bitcoin blockchain into multiple blockchains, and advances in digital computing, algebraic geometry, and
quantum computing could undercut the integrity of the bitcoin blockchain and negatively affect the price of bitcoin. The liquidity of
bitcoin may also be reduced and damage to the public perception of bitcoin may occur, if financial institutions were to deny or limit
banking services to businesses that hold bitcoin, provide bitcoin-related services or accept bitcoin as payment, which could also decrease
the price of bitcoin. Similarly, the open-source nature of the bitcoin blockchain means the contributors and developers of the bitcoin
blockchain are generally not directly compensated for their contributions in maintaining and developing the blockchain, and any failure
to properly monitor and upgrade the bitcoin blockchain could adversely affect the bitcoin blockchain and negatively affect the price of
bitcoin.

Recent actions by U.S. banking regulators have reduced
the ability of bitcoin-related services providers to gain access to banking services and liquidity of bitcoin may also be impacted to
the extent that changes in applicable laws and regulatory requirements negatively impact the ability of exchanges and trading venues to
provide services for bitcoin and other digital assets.

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Regulatory change reclassifying bitcoin or XRP as a security could lead to our classification as an “investment company” under the Investment Company Act of 1940, as amended, or the 1940 Act, and could adversely affect the market price of bitcoin and the market price of our common stock.

Under Sections 3(a)(1)(A) and (C) of the 1940 Act,
a company generally will be deemed to be an “investment company” for purposes of the 1940 Act if (1) it is, or holds itself
out as being, engaged primarily, or proposes to engage primarily, in the business of investing, reinvesting or trading in securities or
(2) it engages, or proposes to engage, in the business of investing, reinvesting, owning, holding or trading in securities and