Company: WKSP
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000850
Chunk: 121

Company: Worksport Ltd
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 121
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 per bitcoin and above $99,000 per bitcoin
on Coinbase in the 12 months preceding the date of this prospectus supplement. The trading price of bitcoin was significantly lower during
prior periods, and such decline may occur again in the future.

28

Changes
in our ownership of bitcoin could have accounting, regulatory and other impacts. While we currently intend to own bitcoin directly,
we may investigate other potential approaches to owning bitcoin, including indirect ownership (for example, through ownership interests
in a fund that owns bitcoin). If we were to own all or a portion of our bitcoin in a different manner, the accounting treatment for our
bitcoin, our ability to use our bitcoin as collateral for additional borrowings, and the regulatory requirements to which we are subject,
may correspondingly change.

We
may be subject to regulatory developments related to crypto assets and crypto asset markets, which could adversely affect our business,
financial condition, and results of operations.

As
bitcoin, XRP and other digital assets are relatively novel and the application of state and federal securities laws and other laws and
regulations to digital assets is unclear in certain respects, and it is possible that regulators in the United States or foreign countries
may interpret or apply existing laws and regulations in a manner that adversely affects the price of bitcoin. The U.S. federal government,
states, regulatory agencies, and foreign countries may also enact new laws and regulations, or pursue regulatory, legislative, enforcement
or judicial actions, that could materially impact the price of bitcoin or the ability of individuals or institutions such as us to own
or transfer bitcoin. For examples, see “—Bitcoin and other digital assets are novel assets, and are subject to significant
legal, commercial, regulatory and technical uncertainty” above.

The
acceptance of blockchain and digital assets as payment on our platform introduces significant risks, including, without limitation, regulatory
uncertainty, market volatility, and operational challenges.

We
accept digital assets as a form of payment from our customers. Digital assets are subject to evolving legal and regulatory
frameworks in the U.S. and internationally. Any change in laws regulating or enforcement actions pertaining to digital assets may
restrict the use of these assets, including bitcoin and XRP, expose us to penalties and increase compliance costs, among other
things. Our ability to convert digital asset payments into fiat currency may be impaired during periods of market instability, while
funds stored in digital assets lack protections offered by institutions such as the Federal Deposit Insurance Corporation or the
Securities Investor Protection Corporation. The