Company: WKSP
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000850
Chunk: 107

Company: Worksport Ltd
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 107
---
 additional financial leverage and therefore an increase in the financial risk of our operations. The sale of additional
equity securities will be dilutive to the interests of current equity holders. In addition, there can be no assurance that such additional
financing, whether debt or equity, will be available to us or that it will be available on acceptable commercial terms. Any inability
to secure such additional financing on appropriate terms could have a materially adverse impact on our business, financial condition
and operating results.

We
rely on key personnel, especially Steven Rossi, our Chief Executive Officer, President and Chairman of the Board.

Our
success also will depend in large part on the continued service of our key operational and management personnel, including executive,
research and development, engineering, marketing and sales staff. Most specifically, this includes Steven Rossi, our President and Chief
Executive Officer, who oversees the implementation of new products, key customer acquisition and retention, and our overall management
and future growth. Any failure on our part to hire, train and retain a sufficient number of qualified professionals could impair our
business.

19

We
depend on intellectual property rights that may be infringed upon, and we may infringe upon the intellectual property rights of others.

Our
success depends to a significant degree upon our ability to develop, maintain and protect proprietary products and technologies. As of
December 31, 2024, we own 18 utility patents, 23 design registrations, and 79 pending utility and design patent applications worldwide.
However, patents provide only limited protection of our intellectual property. The assertion of patent protection involves complex legal
and factual determinations and is therefore uncertain and potentially expensive. We cannot provide assurance that patents will be granted
with respect to our pending patent applications, that the scope of any patents we might obtain will be sufficiently broad to offer meaningful
protection, or that we will develop additional proprietary products that are patentable. In fact, any patents which might issue from
our patent applications pending with the United States Patent and Trademark Office could be successfully challenged, invalidated or circumvented.
This could result in our pending patent rights failing to create an effective competitive barrier. Losing a significant patent or failing
to get a patent issued from a pending patent application we consider significant could have a material adverse effect on our business.

We
may not be able to protect our intellectual property rights throughout the world, which could negatively impact our business.

Filing,
prosecuting and defending patents covering our current and future product candidates and technology platforms in all