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

Company: Worksport Ltd
Filing Date: 2025-03-28
Form: S-1
Chunk 28
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 not limited to the USA, Canada, China, Germany, Romania, Turkey, Philippines, and India. We actively seek
to lower reliance on any country deemed a potential geopolitical supply chain risk.

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Research and Development

We invest in research and development activities on
an ongoing basis. We are actively acquiring new engineering and design assets, both in-house and third-party. Our design engineers are
based in both Canada and the United States, and they have developed and are further developing unique tonneau cover designs with enhanced
user experience, cost-effective and sustainable materials, and automatable manufacturing potential. Our electrical engineers are based
in Canada and work heavily on sourcing materials with features suitable for the Company’s SOLIS cover, as determined through deep
product research and testing. Concurrently, the electrical engineering department continues to research and develop more size- and cost-effective
methods of portable energy storage in order to offer the market a competitive portable energy storage system with distinguishable and
unique product features.

Our subsidiary, TerraVis Energy, Inc., researches
green energy solutions for home and community power as well as Electric Vehicle DC charging and heat-pump technology.

Governmental Programs, Incentives and Regulations

Globally, both the operation of our business and the
ownership of our products by our customers are impacted by various government programs, incentives, and other arrangements. Our business
and products are also subject to numerous governmental regulations that vary among jurisdictions.

Programs and Incentives

We have applied for and been granted tax, mortgage,
wage, and energy cost relief in New York in addition to wage cost and R&D cost relief in Ontario. These programs are provided by several
agencies including the Erie County Industrial Development Agency, Empire State Development, NY Power Authority, and The Canada Revenue
Agency. Each of these incentive programs includes its own set of guidelines and requirements, including but not limited to timely eligibility
reporting, environmental regulation compliance, and headcount projection realization – each of which we have agreed to and must
abide by in order to continue realizing said incentives.

We continue to seek additional incentives and grants
in order to lower our operational costs as well as commit less capital to new product initiatives.

Regulations

Our COR portable power station is subject to various
U.S. and international regulations that govern transport of “dangerous goods,” defined to include lithium-ion batteries, which
may present a risk in transportation. We plan to conduct testing to demonstrate our compliance with such regulations.

We use lithium-ion