Company: WKSP
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023334
Chunk: 99

Company: Worksport Ltd
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 2
Chunk 99
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, business, and financial organizations, and the U.S. and certain other countries could impose further sanctions, trade restrictions,
and other retaliatory actions should the conflict continue or worsen. It is not possible to predict the broader consequences of these
conflicts, including related geopolitical tensions, and the measures and retaliatory actions taken by the U.S. and other countries in
respect thereof as well as whether any counter measures or retaliatory actions in response, including, for example, potential cyberattacks
or the disruption of energy exports, are likely to cause regional instability and geopolitical shifts, which could materially adversely
affect global trade, currency exchange rates, regional economies and the global economy. These situations remain uncertain, and while
it is difficult to predict the impact of any of the foregoing, the conflicts and actions taken in response to these conflicts could increase
our costs, reduce our sales and earnings, impair our ability to raise additional capital when needed on acceptable terms, if at all,
or otherwise adversely affect our business, financial condition, and results of operations.

While
we do not have any direct operations or significant sales in the Middle East, geopolitical tensions and ongoing conflicts in the region,
particularly between Israel and Hamas, may lead to global economic instability and fluctuating energy prices that could materially affect
our business. It is not possible to predict the broader consequences of the Israel-Hamas war, including related geopolitical tensions,
and the measures and actions taken by other countries in respect thereof, which could materially adversely affect global trade, currency
exchange rates, regional economies and the global economy. While it is difficult to predict the impact of any of the foregoing, the Israel-Hamas
war may increase our costs, disrupt our supply chain, reduce our sales and earnings, impair our ability to raise additional capital when
needed on acceptable terms, if at all, or otherwise adversely affect our business, financial condition and results of operations.

Foreign
Currencies

We
are subject to foreign exchange risk as we manufacture certain products and components in China, market extensively in both Canadian
and U.S. markets, employ people residing in both the U.S. and Canada and, to date, have raised funds in Canadian Dollars. Meanwhile,
we report results of operations in U.S. Dollars. Since our Canadian customers pay in Canadian Dollars, we are subject to gains and losses
due to fluctuations in the USD relative to the Canadian Dollar. Our manufacturers in China are paid in USD to better avoid the relatively
greater fluctuation of the Chinese Yuan. To the extent the