Company: WKSP
Filing Date: 2025-03-28
Form Type: S-1
Source: 0001641172-25-001309
Chunk: 47

Company: Worksport Ltd
Filing Date: 2025-03-28
Form: S-1
Chunk 47
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 the shares underlying
the Warrants, such shares of common stock may be sold by the Selling Stockholder in the public market without restriction. If
the Selling Stockholder sells, or the market perceives that the Selling Stockholder intends to sell for various reasons,
substantial amounts of such common stock in the public market, the price of our common stock may decline. Additionally, such conditions
may make it more difficult for us to sell equity or equity-related securities in the future at a time and price that we deem reasonable
or appropriate.

Risks Related to the Ownership of Our Common Stock

Future sales by stockholders owning shares other than the Warrant Shares being offered in this Offering or the perception that such sales may occur, may depress the price of our Common Stock.

The sale or availability for sale of substantial amounts
of our shares in the public market or through holders’ exercise of Common Stock warrants and options or settlement of restricted
stock units, or the perception that such sales could occur, could adversely affect the market price of our Common Stock and also could
impair our ability to raise capital through future offerings of our shares. As of March 27, 2025, we had 4,795,554 outstanding shares
of Common Stock. Any decline in the price of our Common Stock may encourage short sales, which could place further downward pressure on
the price of our Common Stock and may impair our ability to raise additional capital through the sale of equity securities.

The issuance of shares upon exercise of derivative securities may cause immediate and substantial dilution to our existing stockholders.

The issuance of shares upon exercise of options and
settlement of outstanding restricted stock units may result in substantial dilution to the interests of other stockholders since these
selling stockholders may ultimately convert or exercise and sell all or a portion of the full amount issuable upon exercise. If all derivative
securities outstanding as of March 27, 2025, were converted or exercised into shares of Common Stock, there would be approximately an
additional 30.3 million shares of Common Stock outstanding as a result. The issuance of these shares will further dilute the proportionate
equity interest and voting power of holders of our Common Stock.

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We may be required to repurchase certain of our warrants.

Under the Warrants and our warrants sold privately
that have registration rights, in the event of a “Fundamental Transaction” (as defined in the related warrant agreement, which
generally includes any merger with another entity, the