Company: OTSA
Filing Date: 2025-05-23
Form Type: DRS/A
Source: 0001213900-25-047247
Chunk: 315

Company: OTSAW Ltd
Filing Date: 2025-05-23
Form: DRS/A
Chunk 315
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 applicable, the cost on initial recognition of an investment in an associate or jointly controlled entity. 2.4 Revenue recognition The Group is principally in the business of manufacturing and leasing of autonomous mobile robot services and software. Revenue from contracts with its customers is measured based on the consideration to which the Group expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties. Revenue is recognised when the Group satisfies a performance obligation by transferring a promised good or service to the customer, which is when the customer obtains control of the good or service. A performance obligation may be satisfied at a point in time or over time. The Company’s sales contracts could include single or multiple performance obligations, and these are discussed under each revenue model below. The amount of revenue recognised is the amount allocated to the satisfied performance obligation. Customers may also purchase an additional year of warranty in conjunction with the initial purchase of products. This extended warranty is accounted for separately as a distinct performance obligation with a separate contract, with revenue recognized over the extended warranty period. Leasing of robots (Robot as a service, or “RaaS”) Revenue from leasing of robot (RaaS) is a subscription -basedmodel allowing customers to lease our robots for a fixed monthly fee, which includes maintenance and support services. Such sales contracts usually include single performance obligation, which is to provide our customer with the right to use our robots for the agreed -uponperiod, as specified in the lease contract. Subscription Renewal is automatic for a certain period of time, but the customer can opt not to renew by giving notice no less than 3 months before the expiration of the Initial Term of the contract. The lease can be terminated at any time either at the Company’s or at the customer’s discretion on a 3 months’ notice. The Company considers renewal option in determining the lease term. Revenue from these subscriptions is recognized over time on a straight -linebasis over the lease term, which typically ranges from 1 to 5 years. In accordance with IFRS16, our leasing of robots (RaaS) to customers is classified as an operating lease since control of the asset does not transfer to the customer. We retain ownership and responsibility for maintenance, while customers pay a recurring subscription fee. The leased RaaS robots are recorded as non -currentassets on our consolidated balance sheet (included in the Property, plant and equipment), net of accumulated depreciation, while lease payments from customers are recognized as income over the lease period. The lease income of US$