Company: OTSA
Filing Date: 2025-01-28
Form Type: DRS
Source: 0001213900-25-007614
Chunk: 48

Company: OTSAW Ltd
Filing Date: 2025-01-28
Form: DRS
Chunk 48
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 prospects or reputation. Our products, especially our robots, are highly complex. Product defects can occur throughout the product development, design and manufacturing processes or as a result of our use of third parties’ components, materials, and parts manufacturing service. Any defects of our platform and products could result in negative publicity, loss of or delay in market acceptance of our platform and products, regulatory investigations and enforcement actions, harm to our brand, weakening of our competitive position, liability claims, or failure to meet the stated service level commitments in our end -useragreements. The manufacturing or design defects, glitches, malfunctions, connectivity issues, unanticipated use of our robotic systems, user errors or inadequate disclosure of risks relating to the use of our robots and platforms, among others, can lead to collision, personal injury, property damage or other adverse events. Such adverse events could lead to recalls or safety alerts relating to our products (either voluntary or required by governmental authorities), and could result, in certain cases, in the removal of our products from the market. Product defects or recalls could also result in negative publicity, damage to our reputation or, in the event of regulatory developments, delays in new product approvals. A recall could also result in significant costs. Moreover, our products, such as O -R 3, O -Rx, Camello⁺, TransCar are used in outdoor and indoor public -facingenvironments, the failure or malfunction of any of these products, could significantly damage our reputation and brand and public support for robotic solutions in general. The existence of any defects, errors, or failures in our products or the misuse of our products could also lead to product liability claims or lawsuits against us. A defect, error or failure in one of our products could result in failure or damage to the production, or property damage, injury, death and/or significant damage to our reputation and brand in general. We anticipate this risk will grow as more and more of our products are deployed. We anticipate that as part of our ordinary course of business we may be subject to product liability claims alleging defects in the design or manufacture of our products. A product liability claim, regardless of its merit or eventual outcome, could result in substantial costs, damage to our brand and diversion of our management’s attention and resources, which could have a negative impact on our business, financial condition and results of operations. Although we maintain product liability insurance, the coverage is subject to deductibles and limitations, and may not be adequate to cover future claims. Additionally, we may be unable to maintain