Company: WKSP
Filing Date: 2025-03-28
Form Type: S-1
Source: 0001641172-25-001309
Chunk: 37

Company: Worksport Ltd
Filing Date: 2025-03-28
Form: S-1
Chunk 37
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 digital assets, and the legal, regulatory, and accounting treatment of digital assets are constantly developing and changing, and there
may be additional risks in the future that are not possible to predict.

Changes in our ownership of bitcoin could have accounting, regulatory and other impacts.While we currently intend to own bitcoin directly, we may investigate other potential
approaches to owning bitcoin, including indirect ownership (for example, through ownership interests in a fund that owns bitcoin). If
we were to own all or a portion of our bitcoin in a different manner, the accounting treatment for our bitcoin, our ability to use our
bitcoin as collateral for additional borrowings, and the regulatory requirements to which we are subject, may correspondingly change.
For example, the volatile nature of bitcoin may force us to liquidate our holdings to use it as collateral, which could be negatively
effected by any disruptions in the crypto market, and if liquidated, the value of the collateral would not reflect potential gains in
market value of bitcoin, all of which could negatively affect our business and implementation of our bitcoin strategy.

We may use a portion of any proceeds received from the exercise of Warrants to acquire bitcoin or other digital assets, which could expose us to significant volatility and risk of loss.

If we receive any proceeds from the exercise of the
Warrants, we may, in the future, use a portion of such proceeds to acquire bitcoin or other digital assets in accordance with our capital
allocation strategy. Digital assets such as bitcoin are highly speculative and have been subject to extreme price volatility. For example,
over the 12 months preceding the date of this prospectus, the price of one bitcoin on Coinbase has ranged from below $38,000 to above
$108,000. More recently, between September 2024 and November 2024, bitcoin has traded between $54,000 and $108,000. Digital assets do
not generate interest or other income, and the value of our holdings, if any, would depend entirely on price appreciation, which may not
occur. If the market price of bitcoin declines after any such acquisition, the value of our investment could decrease significantly, and
we may be unable to recover the invested capital, which could adversely affect our financial condition and the market price of our common
stock.

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Bitcoin, XRP and other digital assets are novel assets, and are subject to significant legal, commercial, regulatory and technical uncertainty.

Bitcoin, XRP and other digital assets are relatively
novel and are subject to