Company: SPPL
Filing Date: 2025-04-08
Form Type: 20-F
Source: 0001641172-25-003217
Chunk: 3

Company: SIMPPLE LTD.
Filing Date: 2025-04-08
Form: 20-F
Item: Item 3
Chunk 3
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 you that this will not occur in the future. We have, in the last year, enacted plans to mitigate supply chain disruption,
including product diversification, sales cycle planning and the option to utilize existing demo units during set up phase to minimize
downtime for customers, but we cannot assure you that we would be able to establish alternative manufacturing arrangements on acceptable
terms or in a timely manner.

We
are dependent on a limited number of suppliers for various components used in our products, and we may from time to time have sole source
suppliers. The cost, quality and availability of these components are essential to the successful production and sale of our products.
We are subject to the risk of industry-wide shortages, price fluctuations and long lead times in the supply of these components and other
materials. If the supply of these components were to be delayed or constrained, or if one or more of our main suppliers were to go out
of business, alternative sources or suppliers may not be available on acceptable terms or at all. In the event that any of our suppliers
were to discontinue production of our key product components, developing alternate sources of supply for these components would be time-consuming,
difficult and costly. In the event we are unable to obtain components in sufficient quantities on a timely basis and on commercially
reasonable terms, our ability to sell our products in order to meet market demand would be affected and could materially and adversely
affect our brand, image, business prospects, financial condition and operating results.

Any
interruption in the manufacture of our products would be likely to result in delays in shipment, lost sales and revenue and damage to
our reputation in the market, all of which would harm our business and results of operations.

In addition, because our purchase contracts with
suppliers are typically denominatedin US and/orSingapore dollars, changes in currency exchange rates may thereforeimpact
our suppliers who operate in local currency, which may cause our suppliers to seek price concessions on future orders.

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If
critical components of the robotics products that we currently purchase from our limited number of suppliers of such products become
unavailable, we may incur delays in shipment, which could damage our business.

We
and our outsourced manufacturers obtain hardware components, various subsystems and other materials from a limited number of suppliers,
some of which are sole suppliers. If we or our outsourced manufacturers are unable to obtain components from third-party suppliers in
the quantities and of the quality that we require, on