Company: WKSP
Filing Date: 2025-03-28
Form Type: S-1
Source: 0001641172-25-001309
Chunk: 45

Company: Worksport Ltd
Filing Date: 2025-03-28
Form: S-1
Chunk 45
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 may be difficult to detect quickly, and often are not recognized or detected until after
they have been launched against a target. These attacks may occur on our systems or those of our third-party service providers or partners.
We may experience breaches of our security measures due to human error, malfeasance, insider threats, system errors or vulnerabilities
or other irregularities. In particular, we expect that unauthorized parties will attempt, to gain access to our systems and facilities,
as well as those of our partners and third-party service providers, through various means, such as hacking, social engineering, phishing
and fraud. Threats can come from a variety of sources, including criminal hackers, hacktivists, state-sponsored intrusions, industrial
espionage, and insiders. In addition, certain types of attacks could harm us even if our systems are left undisturbed. For example, certain
threats are designed to remain dormant or undetectable, sometimes for extended periods of time, or until launched against a target and
we may not be able to implement adequate preventative measures. Further, there has been an increase in such activities due to the increase
in work-from-home arrangements. The risk of cyberattacks could also be increased by cyberwarfare in connection with the ongoing Russia-Ukraine
and Israel-Hamas conflicts, or other future conflicts, including potential proliferation of malware into systems unrelated to such conflicts.
Any future breach of our operations or those of others in the bitcoin industry, including third-party services on which we rely, could
materially and adversely affect our financial condition and results of operations.

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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.

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. In addition,
the value of digital assets is highly volatile and may fluctuate due to market dynamics, macroeconomic factors or technical vulnerabilities,
potentially reducing their liquidity and utility as a payment method.

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 integration of blockchain payment
systems may expose