Company: MOBBW
Filing Date: 2025-03-27
Form Type: 20-F
Source: 0001013762-25-003365
Chunk: 5

Company: Mobilicom Ltd
Filing Date: 2025-03-27
Form: 20-F
Item: Item 3
Chunk 5
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additional funding from the IIA and other governmental organizations. These government organizations’ spending levels can be impacted
by a number of variables, including general economic conditions, specific companies’ financial performance and competition for Israeli
government funding with other Israeli government-sponsored programs in the budget formulation and appropriation processes. Any reductions
in available research and development funding could harm our business, financial condition and operating results.

We may not accurately forecast revenues,
profitability and appropriately plan our expenses.

We base our current and future
expense levels on our operating forecasts and estimates of future income and operating results. Income and operating results are difficult
to forecast because they generally depend on the volume sales and timing, which are uncertain. Additionally, our business is affected
by general economic and business conditions around the world. A softening in income, whether caused by changes in customer preferences
in the drones and robotics platform markets, or a weakening in global economies, may result in decreased net revenue levels, and we may
be unable to adjust our expenses in a timely manner to compensate for any unexpected shortfall in income. This inability could cause our
(loss)/income after tax in a given quarter to be (higher)/lower than expected. We also make certain assumptions when forecasting the amount
of expense we expect related to our share-based payments, which includes the expected volatility of our share price, and the expected
life of share options granted. These assumptions are partly based on historical results. If actual results differ from our estimates,
our operating results in a given period may be lower than expected.

Exchange rate fluctuations between multiple
foreign currencies may negatively affect our earnings, operating cash flow.

Our reporting and functional
currency is US$. Our Israeli subsidiary’s functional currency is the NIS. Our key expenses and revenues are currently primarily
payable in NIS and US$. Certain amounts of our revenues and expenses are also in AUD and Euros. In addition, our recent equity raises
were received in US$, and our research and development support program and grants are received in NIS.

As a result, we are exposed
to the currency fluctuation risks relating to the recording of our expenses and revenues in different currencies, and potential cash flow
shortage. We may, in the future, decide to enter into currency hedging transactions. These measures, however, may not adequately protect
us from material adverse effects.

We have commenced marketing and initial
sales of our cloud-based software and cybersecurity solutions, which may be marketed and sold to customers using different sales models,
including annual or monthly license or