Company: MOBBW
Filing Date: 2025-03-27
Form Type: 20-F
Source: 0001013762-25-003365
Chunk: 29

Company: Mobilicom Ltd
Filing Date: 2025-03-27
Form: 20-F
Item: Item 3
Chunk 29
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 as a result of or arising from his or her employment
with a company are regarded as “service inventions,” which belong to the employer, absent a specific agreement between the
employee and employer giving the employee service invention rights. The Patent Law also provides that if there is no such agreement between
an employer and an employee, the Israeli Compensation and Royalties Committee, or the Committee, a body constituted under the Patent Law,
will determine whether the employee is entitled to remuneration for his inventions. Israeli case law clarifies that the right to receive
consideration for “service inventions” can be waived by the employee and that in certain circumstances, such waiver does not
necessarily have to be explicit. The Committee will examine, on a case-by-case basis, the general contractual framework between the
parties, using interpretation rules of the general Israeli contract laws. Further, the Committee has not yet determined one specific formula
for calculating this remuneration (but rather uses the criteria specified in the Patent Law). Although we have entered into assignment-of-invention agreements
with our current and former employees pursuant to which such individuals assign to us all rights to any inventions created in the scope
of their employment or engagement with us, we may still face claims demanding remuneration in consideration for assigned inventions. If
such claims are found to have merit despite our assignment of invention agreements, we could be required to pay additional remuneration
or royalties to our current and/or former employees, or be forced to litigate such claims, which could negatively affect our business.

We received Israeli government grants,
from the IIA for certain of our research and development activities, the terms of which may require us to pay royalties and to satisfy
specified conditions (including prior approvals) in order to manufacture products and transfer technologies, IP and knowhow outside of
Israel. If we fail to satisfy these conditions, we may be required to pay penalties and refund some grants previously received, such
failure may also result in incarceration sentence.

Our research and development
efforts were financed in part through royalty-bearing grants from the IIA. With respect to such grants, we are committed to pay royalties
at a rate of 3% to 3.5% on sales proceeds from our products that were developed under IIA programs up to the total amount of grants received,
linked to the U. S. dollar and bearing interest at an annual rate of LIBOR applicable to U. S. dollar deposits.

Regardless of any royalty
payment, we are further required to