Company: OTSA
Filing Date: 2025-03-26
Form Type: DRS/A
Source: 0001013762-25-002776
Chunk: 50

Company: OTSAW Ltd
Filing Date: 2025-03-26
Form: DRS/A
Chunk 50
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 more and more of our products are deployed. We anticipate that as part of our ordinary course of business we may be subject to product liability claims alleging defects in the design or manufacture of our products. A product liability claim, regardless of its merit or eventual outcome, could result in substantial costs, damage to our brand and diversion of our management’s attention and resources, which could have a negative impact on our business, financial condition and results of operations. Although we maintain product liability insurance, the coverage is subject to deductibles and limitations, and may not be adequate to cover future claims. Additionally, we may be unable to maintain our existing product liability insurance in the future at satisfactory rates or adequate amounts. Our products rely on complex electronic hardware, algorithms, software, user interfaces and electromechanical designs. Complex software and firmware often contain errors, and our products have experienced and may continue to experience undetected errors, failures, or bugs. Our products may be integrated with our customers’ existing systems and operations, and may not be compatible with our customer end -user’s operating systems, system management software, applications, devices, databases, servers, infrastructure, information technology system, networking configuration, or other third -partyapplications and equipment, which may cause errors or failures during the deployments. In such an event, we may be required, or may choose, for the purpose of maintaining customer relationships or for other reasons, to expend significant additional resources to rectify the problem. Despite extensive testing of our products for defects, errors or performance issues when they are first introduced, and when new versions or enhancements are released, our products may still contain real or perceived errors, failures, or defects which may only be discovered until our customers use our platform and products for a period of time. This 26 could result in expensive and time -consumingdesign modifications or warranty costs, delays in the introduction of new products or enhancements, significant increases in our service and maintenance costs, exposure to liability for damages, damaged customer relationships and harm to our reputation, any of which could materially impact our results of operations and ability to achieve market acceptance. In addition, increased development and warranty costs could be substantial and could reduce our operating margins. We are also subject to potential recalls of our products to repair the defects or to address any failure to comply with our customers’ order specifications or applicable regulatory standards, and we may have to conduct recalls of our products due to defects in components or parts manufactured by suppliers from which we purchase and incorporate into our products. We may also be required to remedy or retrofit