Company: WKSP
Filing Date: 2025-03-28
Form Type: S-1
Source: 0001641172-25-001309
Chunk: 21

Company: Worksport Ltd
Filing Date: 2025-03-28
Form: S-1
Chunk 21
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 order to scale existing manufacturing lines before
investing in additional lines and personnel, and we will continue to allocate resources towards improving manufacturing efficiency and
product quality on an ongoing basis.

Intellectual Property

As of March 28, 2025, our patent portfolio
consists of nineteen (19) issued utility patents and thirty-seven (37) pending utility patent applications in various jurisdictions worldwide.
Our portfolio further includes twenty-three (23) design registrations and forty-two (42) pending design applications in various jurisdictions
worldwide. We are also in the process of preparing and filing several other utility and design patent applications across relevant countries
and jurisdictions.

As of March 28, 2025, the Company has thirty-seven
(37) trademark registrations and thirteen (13) pending trademark applications in various jurisdictions worldwide.

The Market

We primarily compete in the Automotive Aftermarket
Accessories and New Energy industries with a focus on the Tonneau Cover and the Portable Power Station Markets.

Tonneau Cover Market

There are various forms of tonneau covers, each with
their advantages and disadvantages, available for consumption through direct-to-consumer and retailer and dealer sales channels. Some
forms of tonneau cover include but are not limited to:

| ● | Solid One Piece Caps and Lids;     |
| ● | Retractable Covers;                |
| ● | Soft Folding & Roll-Up Covers; and |
| ● | Hard Folding & Standing Covers     |

Solid one piece covers and retractable covers tend
to have limited functionality and tend to be priced higher when compared to other types of tonneau covers. Soft and hard folding/rolling
tonneau covers, in contrast, tend to be priced more competitively and, as such, are a popular choice among tonneau cover consumers. Given
these factors and our belief that we can develop less cumbersome, high functioning, and low cost soft and hard folding covers, we focus
primarily on developing soft and hard folding covers.

| 10 |

Our tonneau cover revenue stream is largely proportional
to sales of pickup trucks. As of late 2022, there were 284.9 million vehicles in operation in the USA1,
roughly 21%, or 59.5 million, of which were pickup trucks.2 However, as a result of recent
supply chain shortages, heightened interest rates, high prices, and slowing sales, it may take until 2025 for new-vehicle sales to return
to pre-pandemic levels.1 While new vehicle sales have