Company: OTSA
Filing Date: 2025-03-26
Form Type: DRS/A
Source: 0001013762-25-002776
Chunk: 31

Company: OTSAW Ltd
Filing Date: 2025-03-26
Form: DRS/A
Chunk 31
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 of this offering and receipt of additional funds through debt or equity financing and our operations. In the event we are unable to obtain such funding, we may have to delay, reduce or eliminate certain of our planned operations, including some of our research and development 15 and/or clinical validation studies to demonstrate aesthetic improvement, reduce overall overhead expense, or divest assets. This in turn may have an adverse effect on our ability to realize the value of our assets. If we are unable to continue as a going concern, you may lose all or part of your investment. We have yet to achieve positive operating cash flow and, given our projected funding needs, our ability to generate positive cash flow is uncertain. We had negative cash flow from operating activities of $4.6 million and $2.3 million for the years ended April 30, 2023 and 2024, respectively. We expect to continue to have negative cash flow from operating activities for at least the next 24 months as we expect to incur research and development, sales and marketing, and general and administrative expenses and make capital expenditure to develop and grow our business, and will need to seek new financing in the future. Our operation is costly because of our leases, sales and distribution expenses as we establish our brand and markets, research and development expenses, production costs, material and component costs, operating costs and labor costs because of the need for employees with specialized skills. Historically, our costs have increased each year due to these factors, and we expect to continue to incur increasing costs, in particular for working capital to purchase inventory, marketing and product deployments as well as costs of client and product support. We expect our expenses to continue to increase in the future as we expand our production capabilities of the O -R 3, Camello +, UV -Cdisinfection system (AirGuard, O -Rx, and TreX) and TransCar, our product offering, hiring additional employees, establishing our regional centers in the United States and Europe, fulfilling relevant investment and put/call arrangement under the Otsaw -SwisslogHealthcare Joint Venture, and the general and administrative expenses as we scale our operations and incur the costs of being a public company. Our expenses may be significantly greater than we anticipate, which would have a negative impact on our financial position, assets and ability to invest further in the growth and expansion of the business. To implement our global market growth and expansion of our market share, we will incur increased marketing, sales, promotion and other operating expenses. Further,