Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 37

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 3
Chunk 37
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 designed to reduce the impact of a security breach at a third-party vendor, such measures cannot
provide absolute security. It is also possible that, despite existing safeguards, our employees could misappropriate our customers’
proprietary information or data, exposing us to a risk of loss or litigation and possible liability. Customers and other end-users who
rely on our solutions for applications that are integral to their businesses may have a greater sensitivity to security vulnerabilities
than customers for software solutions generally. Any such access, breach, or other loss of information could result in legal claims or
proceedings, liability under applicable federal or state laws and regulatory penalties. Under certain applicable law, notice of breaches
must be made to affected individuals, and for extensive breaches, notice may need to be made to the media or state attorneys general.
Such a notice could harm our reputation and our ability to compete. Unauthorized access, loss, or dissemination could also damage our
reputation or disrupt our operations, including our ability to conduct our analyses, deliver results, provide customer assistance, conduct
research and development activities, collect, process, and prepare company financial information, and manage the administrative aspects
of our business. Further, any system failures, slowdowns or disruptions will likely result in unanticipated disruptions in service to
our users, decreased levels of user satisfaction and significant negative effects on our reputation, which could have a material adverse
effect on our business.

We rely on third-party encryption
and authentication technology to provide secure transmission of confidential information over the Internet, including customer bank account
numbers. Advances in technological capabilities, new discoveries in the field of cryptography or other events or developments could result
in a compromise or breach of the technology we use to protect sensitive transaction data. If we are unable to detect and prevent unauthorized
use of bank account numbers, our business could suffer. If any such compromise of our security, or the security of our customers, were
to occur, it could result in misappropriation of proprietary information or interruptions in operations and have a material adverse effect
on our reputation or the reputation of our customers.

If our SaaS platform does
not comply with quality standards set forth under our subscription agreements or we breach our obligations under our subscription agreements,
our subscribers may assert claims for reduced payments or seek damages from us.

Under our subscription contracts,
we typically provide certain representations and warranties to our subscribers, including, among others, that we have not knowingly incorporated
any intellectual property which infringes the rights of any third-party, the software being delivered has