Company: WKSP
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000850
Chunk: 181

Company: Worksport Ltd
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 181
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 of the Exchange Act). Internal control over financial reporting is a process designed under the supervision and with the
participation of our management, including the individuals serving as our principal executive officer and principal financial officer,
to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external
purposes in accordance with accounting principles generally accepted in the United States of America.

A
material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a
reasonable possibility that a material misstatement of annual or interim financial statements will not be prevented or detected on a
timely basis.

Management
conducted an assessment of the effectiveness of our internal control over financial reporting based on the criteria set forth by the
Committee of Sponsoring Organizations of the Treadway Commission in Internal Control-Integrated Framework (2013 Framework). Based on
this assessment, our management concluded that, as of December 31, 2024, our internal control over financial reporting was not effective
based on those criteria due to material weaknesses in our internal control over financial reporting described below.

Material
Weakness in Internal Control over Financial Reporting

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 detect potential errors. We also did not maintain adequate documentation to evidence the operating effectiveness of certain
control activities. Lastly, we did not maintain appropriate access to certain systems and did not maintain appropriate segregation of
duties related to processes associated within those systems.

These
control deficiencies resulted in several misstatements to the preliminary financial statements that were corrected and/or deemed immaterial
in the aggregate prior to issuance of the financial statements. These control deficiencies create a reasonable possibility that a material
misstatement to the financial statements will not be prevented or detected on a timely basis, and therefore we concluded that the deficiencies
represent material weaknesses in our internal control over financial reporting and our internal control over financial reporting was
not effective as of December 31, 2024.

66

Remediation
Plan

During
the year ended December 31, 2024, we continued to enhance our internal control over financial reporting in an effort to remediate the
material weaknesses described above. Measures taken in this remediation included investing in additional, senior accounting personnel ,
establishing a clearer organizational structure, implementing additional enterprise resource planning system modules, and formalizing
internal processes and procedures.

Our
remediation process includes, but is not