Company: OTSA
Filing Date: 2025-01-28
Form Type: DRS
Source: 0001213900-25-007614
Chunk: 168

Company: OTSAW Ltd
Filing Date: 2025-01-28
Form: DRS
Chunk 168
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103 In relation to the production of TransCar AGVs, we currently rely on Reis Robotics for the production and manufacturing of the TransCar AGVs pursuant to the Supply Agreement. Reis Robotics will discontinue manufacturing of the TransCar AGVs on June 30, 2025, and the next generation of TransCar, Transcar 5.0, will be produced in -houseat our manufacturing facility in Singapore. We are currently in the process of technology transfer and developing the production capacity for the TransCar AGVs in our Singapore headquarters. Suppliers Serial Microelectronics Pte. Ltd., Activ Technology Pte. Ltd. (“Active Technology”), Swisslog Healthcare GmbH, and Swisslog Healthcare Asia Pacific Pte. Ltd. are related parties to us (please refer to the section entitled “Related Party Transaction” for further detail regarding related party transactions and our policies and procedures with respect to such transactions). Serial Microelectronics Pte. Ltd. and Serial System International Pte. Ltd. (“Serial System”) are part of Serial System Ltd. Swisslog Healthcare GmbH and Swisslog Healthcare Asia Pacific Pte. Ltd. are the subsidiaries of Swisslog Healthcare. Serial System International Pte. Ltd. and Swisslog Healthcare are the shareholders of our Group. Activ Technology Pte. Ltd. is controlled by our chairman of board and chief executive officer, Mr. Ling Ting Ming. We have ceased obtaining our supplies from Swisslog Healthcare GmbH and Swisslog Healthcare Asia Pacific Pte. Ltd. for the components required to manufacture the TransCar AGVs, and will procure the required components in -house. We do not have long -termwritten purchase agreements with other suppliers, including Serial System, Activ Technology or other significant suppliers. Some components, such as semiconductors, chips and lithium batteries, are at times subject to industry -wideshortages, significant pricing fluctuations, and extended supply cycles. Although we benefit from our relationship with Serial System and Activ Technology as our shareholders, thereby minimizing our supply chain risks and optimizing our ability to secure a stable supply of semiconductors, chips and other key components, we have taken certain countermeasures including, but not limited to, adjusting production schedules, renegotiating supply arrangements, engaging multiple brokers, and purchasing larger quantities of key components in advance. While the global semiconductor supply shortage has eased in 2024, we may still encounter shortage for semiconductors on a periodic basis, which may impact the manufacturing of certain components which incorporate semiconductors. These delays and shortages could disrupt our