Company: OTSA
Filing Date: 2025-01-28
Form Type: DRS
Source: 0001213900-25-007614
Chunk: 54

Company: OTSAW Ltd
Filing Date: 2025-01-28
Form: DRS
Chunk 54
---
 damage our relationships with customers, partners, collaborators or others or result in claims, regulatory investigations and proceedings and significant legal, regulatory and financial exposure. Any such incidents, or any perception that our security measures are inadequate, could lead to loss of confidence in us, harm our reputation and impair our ability to attract and retain users, adversely affecting our business, financial condition and results of operations. Any actual or perceived breach of privacy or security or other security incidents impacting any entities with which we share or disclose data (including, for example, our third -partytechnology providers) could have similar effects. We expect to incur significant costs in an effort to detect and prevent privacy and security breaches and other related incidents, and we may be required to expend substantial resources in the event of an actual or perceived privacy or security breach or incident. Any unauthorized access or control of our AMR and robotics systems could result in a loss of confidence in us and our brand and harm our business. Our AMRs and other robotics systems contain complex software systems to support their operation and information technology system that enables them to connect to and communicate with the systems of our end -usercustomers and the Fleet Management and Control Systems which are utilized and operated by our end -usercustomers for real -timedata access and collection through Wi -Fi, 5G and LTE networks. Hackers may attempt to gain unauthorized access to modify, alter and to gain control of, the AMR system deployed by our customer, including the individual AMR’s functionality, user interface and performance characteristics, or to gain access to data stored in or generated by the deployed AMRs that are in the control of our customers. Regardless of their veracity, reports of cyber -attackson our information technology networks or our AMRs systems or data, as well as reports that our technology, software, our AMRs systems or data are vulnerable to hacking could negatively affect our brand and harm our business, reputation, prospects, financial condition and results of operation. Moreover, our deployed products and AMRs may be subject to inappropriate handling, theft, vandalism and other damages, the financial cost and impact of which could have a material adverse effect on our business and operating results. A significant portion of our net sales are generated through distributors, which subjects us to certain risks . We sell our products worldwide through multiple sales channels, including direct sales and through our distributors, who resell our products to numerous end customers. A significant portion of our net sales are made to distributors, accounting for approximately 4% and 9% of our net sales