Company: WKSP
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000850
Chunk: 100

Company: Worksport Ltd
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 100
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 set of guidelines and
requirements, including but not limited to timely eligibility reporting, environmental regulation compliance, and headcount projection
realization – each of which we have agreed to and must abide by in order to continue realizing said incentives. We additionally
receive incentives related to the hiring and employment of interns in Ontario.

We
continue to seek additional incentives and grants in order to lower our operational costs as well as commit less capital to new product
initiatives.

Regulations

Our
COR portable power station is subject to various domestic and international regulations that govern transport of “dangerous goods,”
defined to include lithium-ion batteries, which may present a risk in transportation. We plan to conduct testing to demonstrate our compliance
with such regulations.

We
use lithium-ion cells in our energy storage products. The use, storage, and disposal of our battery packs are regulated under existing
laws and are the subject of ongoing regulatory changes that may add additional requirements in the future.

14

Environmental
Matters

We
are committed to high environmental standards and carry out our activities and operations in compliance with all relevant and applicable
environmental regulations and best industry practices. Costs of environmental regulatory compliance are not expected to be significant.

Human
Capital Resources

We
employ fourteen full-time employees and one part-time employees in Canada and further employ sixty-six full-time employees in the U.S. We
intend to hire additional employees as operations grow – particularly within our West Seneca, NY manufacturing facility. We additionally
work with temporary laborers in our factory – often with the goal of converting them to full time employees – and we sparingly
and selectively contract independent contractors and consultants when needed.

Compensation
and Benefits

We
believe that compensation should be competitive and equitable and should enable employees to share in our success. We recognize our employees
are most likely to thrive when they have resources and support to meet their needs and succeed in their professional and personal lives.
In support of this, we offer a variety of benefits for employees, such as group insurance, HRAs, supplemental insurance, paid time off,
and 401k benefits, and we invest in tools and resources that are designed to support employees’ growth and development.

Inclusion
and Diversity

We
remain committed to our vision to build and sustain a more inclusive workforce that is representative of the communities we serve. We
continue to work to increase diverse representation, foster an inclusive culture, and support equitable pay and access to opportunity
for all employees.

Engagement

We
bel