Company: OTSA
Filing Date: 2025-05-23
Form Type: DRS/A
Source: 0001213900-25-047247
Chunk: 69

Company: OTSAW Ltd
Filing Date: 2025-05-23
Form: DRS/A
Chunk 69
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 not meet these regulatory requirements, or we may face challenges in obtaining, maintaining, or updating the necessary CE certifications. Our products remain subject to potential market surveillance checks by EU member state authorities even after obtaining CE marking. Non -compliancewith CE marking requirements could lead to legal penalties, fines, product recalls, or restrictions on our ability to distribute our products in the EU market. Additionally, any delays in obtaining CE compliance for new products, such as the next generation of our TransCar AGVs, could hinder our market entry and reduce potential sales opportunities. Failure to achieve or maintain CE compliance, or to adapt to evolving regulatory landscapes in the EU, could materially and adversely impact our business, financial condition, and results of operations in the European market. From time to time, we may become involved in legal proceedings, which could have a material adverse effect on our business, operating results, or financial condition. We may, from time to time in the future, become subject to legal proceedings, claims, litigation and government investigations or inquiries, which could be expensive, lengthy, and disruptive to normal business operations. In addition, the outcome of any legal proceedings, claims, litigation, investigations or inquiries may be difficult to predict and could have a material adverse effect on our business, operating results, or financial condition. We are exposed to foreign exchange risk arising from various currency exposures. Fluctuations in foreign currency exchange rates will affect our financial results. The substantial majority of our operations are in Singapore, while our overseas sales and procurement are incurred in multiple jurisdictions, including Southeast Asia countries, Europe, countries in the GCC, United Kingdom, United States, and Australia, which exposes us to the effects of fluctuations in currency exchange rates. Fluctuations in foreign currency exchange rates will affect our financial results. The exchange rates between various currencies that we use in recent years has fluctuated significantly and may continue to do so in the future. Fluctuations in the exchange rates between these currencies could result in expenses being higher and revenue being lower than would be the case if exchange rates were stable. Our entities operate using their respective functional currencies. For our Singapore entities, the functional currency is the Singapore dollar (SGD), while for our Germany entity, it is the euro (EUR). We do not hedge our currency exposure. Consequently, when our sales, procurement, and operating costs are denominated in different currencies, 36 or when there are timing differences between invoicing and payments from customers or to suppliers, we may be exposed to foreign currency exchange gains or losses arising from transactions