Company: OTSA
Filing Date: 2025-03-26
Form Type: DRS/A
Source: 0001013762-25-002776
Chunk: 30

Company: OTSAW Ltd
Filing Date: 2025-03-26
Form: DRS/A
Chunk 30
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, 2024 and 2023, respectively. We believe that we will continue to incur operating and net losses for the foreseeable future. We might not ever become profitable or achieve net income. We expect that our operating expenses will increase as we grow our business, including expending substantial resources for research and development, sales and marketing, implementing our growth strategies, and expansion of our production capacity. As a result, any decrease in revenues or delay in generating new revenues could result in material operating losses. We expect to continue to incur losses and increasing expenses in the foreseeable future as we: •continue to design and develop our products, including the next -generationTransCar and Odyssey ANS; •build up inventories of parts and components for our products; •manufacture an available inventory of our products; •fulfil the call/put arrangement of the Otsaw -SwisslogHealthcare Joint Venture; •expand our design, research, development, maintenance and repair capabilities; •increase our sales and marketing activities and develop our regional centers in Europe and the United States; and •expand our general and administrative functions to support our growth and operations and the status as a public company. As described in the report of our auditors for the years ended April 30, 2024, and 2023 and the notes to our consolidated financial statements, there is substantial doubt about our ability to continue as a going concern, and if we are unable to continue, you may lose your entire investment. The uncertainty about our ability to continue in operation is based on our continuing losses from operation and limited working capital, among other things which existed as of year -endApril30, 2024 and April30, 2023. As of April30, 2024 and April30, 2023, the Company had a net working capital deficit of $10,012,865 and $12,701,025, respectively. Included in the accumulated deficit are losses of $6,458,189 for the year ended April30, 2024. The Company has incurred recurring losses and has accumulated losses of $21,868,746 as of April30, 2024. Given all these facts, we are dependent on obtaining funding from operations and the sale of debt or equity to continue as a going concern. The financial statements do not include any adjustments relating to the recoverability of assets and classification of liabilities that might be necessary should we be unable to continue as a going concern. Our ability to continue as a going concern depends on the success