Company: WKSP
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022113
Chunk: 38

Company: Worksport Ltd
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 38
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 our
COR portable power system. Notably, the COR & SOLIS are compatible with existing internal combustion engine vehicles and will not
rely on the rapid adoption of EVs.

22

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 unsaturated market.
The global Portable Power Station market is quickly growing, and the competitive landscape is far from consolidated. The solar tonneau
cover market is in its infancy, and it’s a market in which we have first-mover advantage. To ensure we do not fall behind future
competitors, we are highly focused on protecting our intellectual property both domestically and abroad.

Economic
Conditions and Market Trends

As
a result of a number of factors, our historical results of operations may not be comparable to our results of operations in future periods,
and our results of operations may not be directly comparable from period to period. Set forth below is a brief discussion of the key
factors impacting our results of operations.

Climate
Change

Climate
change threatens to cause many foreseeable as well as unforeseeable ramifications. In cautious preparation for those that are foreseeable,
we have strategically begun domestic manufacturing operations in Western New York – an economically growing region not immediately
threatened by climate change to the same extent as other regions and possibly one that may benefit from future population migrations
within the U.S. Further, we intend to lower our own carbon footprint by investing in energy-saving measures in our factory in West Seneca