Company: OTSA
Filing Date: 2025-01-28
Form Type: DRS
Source: 0001213900-25-007614
Chunk: 45

Company: OTSAW Ltd
Filing Date: 2025-01-28
Form: DRS
Chunk 45
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 prices. Any attempts to increase product prices in response to increased material costs could result in cancellations of orders and reservations and therefore materially and adversely affect our brand, image, business, prospects, financial condition and operating results. We rely solely on Reis Robotics as the single source supplier for the production and maintenance of the TransCar systems, and the partial or complete loss of Reis Robotics as our supplier could cause customer supply or production delays and a substantial loss of revenues. Under the supply agreement dated May 31, 2023 between KUKA Industries GmbH & Co. KG Obernburg (now Reis Robotics GmbH & Co. KG (“Reis Robotics”), following its acquisition by CT Pack Srl and Swiss FAI Holding AG on June 30, 2023 and its subsequent change of name) and Otsaw Swisslog Healthcare Robotics Pte. Ltd. (the “Supply Agreement”), Reis Robotics is responsible for the supply of the TransCar AGVs and we rely solely on them as our single source supplier for production and manufacturing of the TransCar AGVs. Our reliance on Reis Robotics as the sole supplier in relation to the production and maintenance of the TransCar system involves several other risks, including the following: •if we experience an increase in demand of product or services, our suppliers may be unable to provide us with the product or services that we need in order to meet that increased demand; •our suppliers may encounter financial hardships unrelated to our demand for components, which could inhibit their ability to fulfil our orders and meet our requirements; •we or our suppliers may lose access to critical services and components, resulting in an interruption in the manufacture, assembly and shipment of the product and delivery of services; and If any of these risks materialize, the costs associated with developing alternative sources of supply or production in a timely manner could have a material adverse effect on our ability to meet demand for TransCar AGVs and the maintenance services of the installed TransCar AGVs. Our ability to generate revenues could be impaired, market acceptance of our product could be adversely affected, and customers may instead choose to purchase or use alternative 24 products from our competitors. We may not be able to find new or alternative suppliers in a timely manner or at all. As a result, we could incur increased production costs, experience delays in the delivery of our products and suffer harm to our reputation, which may have an adverse effect on our business and results of operations. Nevertheless, Reis Robotics will discontinue manufacturing of the TransCar AGVs on June