Company: SPPL
Filing Date: 2025-04-08
Form Type: 20-F
Source: 0001641172-25-003217
Chunk: 4

Company: SIMPPLE LTD.
Filing Date: 2025-04-08
Form: 20-F
Item: Item 3
Chunk 4
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 a timely basis and at acceptable prices, we may not be able to deliver our products
on a timely or cost-effective basis to our customers, which could cause customers to terminate their contracts with us, reduce our gross
margin and seriously harm our business, results of operations and financial condition. Moreover, if any of our suppliers become financially
unstable, we may have to find new suppliers. It may take several months to locate alternative suppliers, if required, or to re-tool our
products to accommodate components from different suppliers. We may experience significant delays in manufacturing and shipping our products
to customers and incur additional development, manufacturing and other costs to establish alternative sources of supply if we lose any
of these sources. We cannot predict if we will be able to obtain replacement components within the time frames that we require at an
affordable cost, or at all.

We
depend on certain equipment to perform our services and are subject to associated risks of maintenance and obsolescence.

We
utilize various types of cleaning robots, security robots and android robots, along with our SIMPPLE Ecosystem. Our robots may face obsolescence
due to rapid technological developments and the emergence of alternative innovations. To the extent that our equipment faces obsolescence
before the end of its expected useful lives, we may be subject to impairment losses. Changes and advancements in technology may require
us to replace and upgrade our equipment at an earlier stage than expected. As a result, we may incur significant additional capital expenditure.

We
are exposed to legal or other proceedings or to other disputes or claims.

In
the event that our customers do not make payment in a timely manner, we may seek to enforce our contractual rights and seek recourse
via litigation or arbitration. These legal procedures are time-consuming and the settlement of a contract dispute may require additional
financial and other resources. Failure to secure adequate payments in time or to manage past due receivables effectively could have a
material and adverse effect on our business, financial condition, results of operations and prospects.

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Further,
disputes and claims may arise, from time to time, between our Group and our customers, suppliers or sub-contractors for various reasons
such as delays, unsatisfactory service delivery and alleged breaches of service contracts. To date, we have not been the subject of workplace
safety and/or negligence claims from employees and/or members of the public, but there is a risk that such claims may be made against
us in the