Company: MOBBW
Filing Date: 2025-03-27
Form Type: 20-F
Source: 0001013762-25-003365
Chunk: 14

Company: Mobilicom Ltd
Filing Date: 2025-03-27
Form: 20-F
Item: Item 3
Chunk 14
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 materially harm our results of operations and ability
to achieve market acceptance. In addition, increased development and warranty costs could be substantial and could significantly reduce
tour operating margins.

The existence of any defects,
errors, or failures in our products or the misuse of our products could also lead to product liability claims or lawsuits against it.
A defect, error or failure in one of our products could result in failure or damage to the products it is embedded in, or property damage,
injury, death and/or significant damage our reputation and support for our services in general. We anticipate this risk will grow as more
and more products using our products are deployed

We cannot provide any assurance
that we have or will have insurance adequate to protect us from material judgments and expenses related to potential future claims or
that such insurance will be available in the future at economical prices or at all. Even if we are fully insured as it relates to a particular
claim, the claim could nevertheless diminish our brand and divert management’s attention and resources, which could have a negative
impact on our business, financial condition and results of operations.

We are a supplier for government programs,
which subjects us to risks including early termination, audits, investigations, sanctions, penalties and delayed sales.

We have entered into contracts
with governments and government contractors, either directly or indirectly. As a result, we are and may in the future be subject to statutes
and regulations applicable to companies doing business with the relevant government. Government contracts may contain provisions that
give the government substantial rights and remedies, many of which are not typically found in commercial contracts with private sector
counterparts and which are unfavorable to the contractors. For example, many government agencies include provisions that allow the government
to unilaterally terminate or modify contracts for convenience, and in that event, the counterparty to the contract may generally recover
only its incurred or committed costs and settlement expenses and profit on work completed prior to the termination.

In addition, government contracts
typically contain additional requirements that may increase our costs of doing business, reduce our profits, and expose us to liability
for failure to comply with these terms and conditions. These requirements may include, for example:

  specialized disclosure and accounting requirements unique to government contracts;  

  financial and compliance audits that may result in potential liability for price adjustments, recoupment of government funds after such funds have been spent, civil and criminal penalties, or a...  
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