Company: WKSP
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000850
Chunk: 221

Company: Worksport Ltd
Filing Date: 2025-03-27
Form: 10-K
Item: Item 4
Chunk 221
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 read in conjunction with our audited consolidated financial statements and
the notes thereto included elsewhere in this Annual Report on Form 10-K.

Overview

Worksport
Ltd., through its subsidiaries, designs, develops, manufactures, and owns the Intellectual Property on a portfolio of tonneau cover,
solar integration, portable power station, and NP (Non-Parasitic), Hydrogen-based green energy products and solutions for the automotive
aftermarket accessories, power storage, residential heating, and electric vehicle-charging industries. We seek to provide consumers with
next-generation automotive aftermarket accessories while capitalizing on growing consumer interest in clean energy solutions and power
grid independence.

Rising
Popularity of Electric Vehicles

Electric
Vehicles (EVs) have been increasing in consumer interest, whether that interest takes the form of vehicle pre-orders, sales, or investments.
As we begin marketing our Worksport SOLIS and COR, we plan to market the SOLIS as a must-have accessory for electric light duty vehicle
owners while simultaneously riding the coattails of EV popularity to promote our other products (COR and conventional tonneau covers)
to the very large population of Americans that have an interest in EVs without the funds to purchase them. Further, participating in
the EV space allows us to target consumers with an interest in cutting-edge technologies – a great market in which to promote our
COR portable power system.

Regulatory
Environment Favoring Electric Vehicles

The
Build Back Better Bill was a strong indication of upcoming and favorable U.S. regulations. Many regulations that improve North America’s
EV charging infrastructure or provide grants to businesses operating in the EV space would benefit us. While we are primarily focused
on the light duty vehicle market, our energy products are particularly useful for electric light duty pickup trucks and, therefore, are
positioned to benefit greatly from any bill that increases the prevalence of such vehicles. However, President Donald Trump has signed
an executive order titled Unleashing American Energy in which he has indicated his administration will be reversing the electric vehicle
mandates of Joe Biden’s former administration, and he has further paused billions of dollars in funding allocated towards electric
vehicle charging stations. The future of the U.S.’s regulatory environment surrounding electric vehicles is uncertain.

Limited
Competitive Landscape

Our
conventional tonneau covers are engineered for enhanced user experience and resistance to wear-and-tear, making them strong and competitive
products in an otherwise consolidated and saturated market. The Worksport COR, however, operates in a much wider yet