Company: OTSA
Filing Date: 2025-07-07
Form Type: F-1/A
Source: 0001213900-25-061733
Chunk: 41

Company: OTSAW Ltd
Filing Date: 2025-07-07
Form: F-1/A
Chunk 41
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 we may have reduced working capital, which could adversely affect our ability to invest in other important areas of our business such as marketing and product development. Conversely, if demand exceeds our forecasts and we do not have sufficient inventory to meet this demand, we would have to rapidly increase production and incur higher supply and manufacturing costs that would lower our gross margin. Any of these scenarios could adversely impact our operating results and financial condition. We target customers that are large corporations with substantial negotiating power, exacting product standards and potentially competitive internal solutions. If we are unable to sell our products to these customers, our prospects and results of operations will be adversely affected. We expect that many of our potential customers will be large, multinational corporations with substantial negotiating power relative to us and, in some instances, may have internal solutions that compete with our products. These corporations also have significant development resources, which may allow them to acquire or develop independently, or in partnership with others, competitive technologies. Meeting the technical requirements and securing binding commitments from any of these companies will require a substantial investment of our time and resources. We cannot assure you that our products will secure binding commitments from these or other companies or that we will generate meaningful revenue from the sales of our products to these key potential customers. If our products are not selected by these large corporations or if these corporations develop or acquire competitive technology, it will have an adverse effect on our business, which could be material. We are dependent on a small number of key customers, and the loss of one or more of these customers could materially and adversely affect our business, financial condition and results of operations. We currently derive a significant portion of our revenue from our service and maintenance contracts. For the financial years ended April30, 2024 and 2023, we derived approximately 79.3% and 77.6% of our total revenues from service and maintenance, respectively. For the six months ended October31, 2024 and 2023, we derived approximately 85.3% and 82.8% of our total revenues from service and maintenance, respectively. In relation to our service and maintenance contracts, our revenue is concentrated among a small number of key customers. Although the composition of our largest customers has varied from year to year, a small group of customers continues to represent a significant portion of our revenue. For the fiscal year ended April30, 2023, our top three customers — Engie Services Singapore Pte Ltd, Sengkang General Hospital Pte Ltd, and Universitätsmedizin Gre