Company: WKSP
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000850
Chunk: 119

Company: Worksport Ltd
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 119
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 timely basis, in sufficient amounts or on terms acceptable
to us, if at all. Any debt financing or other financing of securities senior to the common stock will likely include financial and other
covenants that will restrict our financing and/or operational flexibility. Any failure to comply with these covenants would have a material
adverse effect on our business, prospects, financial condition and results of operations because we could lose our existing sources of
funding, and our ability to secure new sources of funding could be impaired.

Our
stock ownership structure has the effect of concentrating voting control with our Chief Executive Officer and Chairman, Steven Rossi,
which will limit the ability of other shareholders to influence the outcome of important decisions.

Steven
Rossi currently owns 100% of our outstanding Series A Preferred Stock which entitles him to 51% of the voting power of our outstanding
voting equity. Subject to any fiduciary duties owed to our other stockholders under Nevada law, Mr. Rossi is able to exercise significant
influence over matters requiring stockholder approval, including the election of directors and approval of significant corporate transactions,
and will have some control over our management and policies. Mr. Rossi may have interests that are different from yours. For example,
Mr. Rossi may support proposals and actions with which you may disagree. The concentration of ownership could delay or prevent a change
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.

27

If
research analysts do not publish research about our business, or if they issue unfavorable commentary or downgrade our common stock,
our stock price and trading volume could decline.

The
trading market for our securities may depend in part on the research and reports that research analysts publish about us and our business.
If we do not maintain adequate research coverage, or if any of the analysts who cover us downgrade our stock or publish inaccurate or
unfavorable research about our business, the price of our common stock could decline. If one or more of our research analysts ceases
to cover our business or fails to publish reports on us regularly, demand for our securities could decrease,