Company: MOBBW
Filing Date: 2025-03-27
Form Type: 20-F
Source: 0001013762-25-003365
Chunk: 13

Company: Mobilicom Ltd
Filing Date: 2025-03-27
Form: 20-F
Item: Item 3
Chunk 13
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 subject to the recall
or return.

Manufacturers and distributors
of products are sometimes subject to the recall or return of their products for a variety of reasons, including product defects, safety
concerns, packaging issues and inadequate or inaccurate labeling disclosure. If any of our products were to be recalled due to an alleged
product defect, safety concern or for any other reason, we could be required to incur unexpected expenses of the recall and any legal
proceedings that might arise in connection with the recall. We may lose a significant amount of sales and may not be able to replace those
sales at an acceptable margin or at all. In addition, a product recall may require significant management time and attention. Additionally,
product recalls may lead to increased scrutiny of our products by our customers and regulators, requiring further management time and
attention and potential legal fees, costs and other expenses.

If we release defective products or services,
our operating results could suffer.

Products designed and released
by us involve extremely complex software programs, hardware testing and verification, assembly processes, and quality and functionality
inspection and are difficult to develop and manufacture. While we have quality controls in place to detect and prevent defects in our
products and services before they are released, these quality controls are subject to human error, overriding, and reasonable resource
constraints. Therefore, these quality controls and preventative measures may not be effective in detecting and preventing defects in our
products before they have been released into the marketplace. In such an event, we could be required, or decide voluntarily, to suspend
the availability of the product or services, which could significantly harm our business and operating results.

Our products and services are complex and
could have unknown defects or errors, which may give rise to legal claims against us, diminish our brand or divert our resources from
other purposes.

Our products are comprised
of and rely on complex and sensitive electronic hardware, algorithms, software, user-friendly interfaces and tightly integrated, electromechanical
designs. Despite testing, our products might have contained defects and errors and may in the future contain defects, errors or performance
problems when first introduced, when new versions or enhancements are released, or even after these products have been used by our customers
for a period of time. These problems could result in expensive and time-consuming design modifications or warranty charges, delays in
the introduction of new products or enhancements, significant increases in our service and maintenance costs, exposure to liability for
damages, damaged customer relationships and harm to our reputation, any of which could