Company: WKSP
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010837
Chunk: 96

Company: Worksport Ltd
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 2
Chunk 96
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 over financial reporting, characterized by the following:

 ●We
                                            have not designed written policies and procedures at a sufficient level of precision to support
                                            the operating effectiveness of the controls to prevent and timely detect potential errors.

 ●We
                                            did not maintain adequate documentation to evidence the operating effectiveness of certain
                                            control activities.

 ●We
                                            did not maintain appropriate access to certain systems and did not maintain appropriate segregation
                                            of duties related to processes associated with those systems.

To
address the material weaknesses, we performed additional analysis and other post-closing procedures in an effort to ensure our consolidated
financial statements included in our periodic reports filed with the SEC are prepared in accordance with generally accepted accounting
principles. Management believes that the financial statements included in this report fairly present in all material respects our financial
condition, results of operations and cash flows for the periods presented.

23

Changes
in Internal Control Over Financial Reporting

There
were no changes in our internal control over financial reporting that occurred during the period covered by this report that have materially
affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART
II OTHER INFORMATION

Item
1. Legal Proceedings 

From
time to time, we are involved in lawsuits, claims, investigations, and proceedings, including pending opposition proceedings involving
patents that arise in the ordinary course of business. We are not presently a party to any material pending or threatened legal proceedings,
nor do we have any knowledge of any such pending claims.

Item
1A. Risk Factors

In
addition to the other information set forth in this Quarterly Report, you should carefully consider the factors discussed in Part I,
“Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024, which could materially affect
our business, financial condition, liquidity, or future results. The risks described in our Annual Report on Form 10-K are not the only
risks facing our Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also
may materially adversely affect our business, financial condition, liquidity or future results.

Item
2. Unregistered Sales of Equity Securities and Use of Proceeds

(a)
Recent Sales of Unregistered Securities

 ●In
                                            February 2025, we issued warrants (“Inducement Warrants”) to purchase an aggregate
                                            of 1,424,500 shares to certain investors in exchange