Company: OTSA
Filing Date: 2025-05-23
Form Type: DRS/A
Source: 0001213900-25-047247
Chunk: 50

Company: OTSAW Ltd
Filing Date: 2025-05-23
Form: DRS/A
Chunk 50
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 to collisions, possible liability and negative publicity. Our O -R 3, Camello +, O -R Xand TransCar robots operate autonomously in outdoor and indoor environments, such as residential communities, commercial compounds, hospitals, shopping malls, and crowded areas such as parks, stadiums or event sites. These environments are surrounded by various moving and stationary physical obstacles including humans and vehicles. Such environments increase the likelihood of collisions, unintended interactions and various other incidents. Our robots contain several advanced sensors, outdoor autonomy capabilities, and dynamic obstacle avoidance technologies that are designed to effectively prevent any such incidents and are intended to stop any motion of the robot at the detection of intervening objects. Nonetheless, real -lifeenvironments, especially those in crowded areas, are unpredictable and situations may arise in which the robots may not perform as intended. Although we continuously test our robots in a number of unpredictable environments and continue to improve each model’s obstacle avoidance and collision prevention technology, such tests may not accurately reveal underlying vulnerabilities. Therefore, our robots could be involved in a collision with humans and objects. Incidents involving autonomous vehicles and humans, although infrequent, have received significant public attention and raised concerns about the safety of robotic systems. To date, however, we are not aware of any reports of any significant collisions, defects, errors or failures in our products. Despite the maximum speed of our robots typically not exceeding 3.2 mph, which we believe is a speed that is unlikely to lead to any significant damage even in the event of a collision, we cannot assure you that a collision, with property or with humans, will not occur. Such incidents could damage the robot or result in personal injury or property damage, subjecting us to potential lawsuits. Moreover, any such incident, even without damage, may lead to adverse publicity for us. Such lawsuits or adverse publicity could negatively affect our brand and harm our business, prospects, financial condition and operating results. Design flaws, unknown defects, real or perceived errors, glitches or malfunctions in our products or the software that operates them, failure of our products to perform as expected, connectivity issues or user errors can result in product recalls, claims against us, personal injuries, property damage, and significant safety concerns, each of which could materially and adversely affect our results of operations, financial condition, growth prospects or reputation. Our products, especially our robots, are highly complex. Product defects can occur throughout the product development, design and manufacturing processes or as a result of our use of third parties’ components, materials, and parts manufacturing service.