Company: OTSA
Filing Date: 2025-06-09
Form Type: F-1
Source: 0001213900-25-052720
Chunk: 70

Company: OTSAW Ltd
Filing Date: 2025-06-09
Form: F-1
Chunk 70
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, operating results, or financial condition. We are exposed to foreign exchange risk arising from various currency exposures. Fluctuations in foreign currency exchange rates will affect our financial results. The substantial majority of our operations are in Singapore, while our overseas sales and procurement are incurred in multiple jurisdictions, including Southeast Asia countries, Europe, countries in the GCC, United Kingdom, United States, and Australia, which exposes us to the effects of fluctuations in currency exchange rates. Fluctuations 36 in foreign currency exchange rates will affect our financial results. The exchange rates between various currencies that we use in recent years has fluctuated significantly and may continue to do so in the future. Fluctuations in the exchange rates between these currencies could result in expenses being higher and revenue being lower than would be the case if exchange rates were stable. Our entities operate using their respective functional currencies. For our Singapore entities, the functional currency is the Singapore dollar (SGD), while for our Germany entity, it is the euro (EUR). We do not hedge our currency exposure. Consequently, when our sales, procurement, and operating costs are denominated in different currencies, or when there are timing differences between invoicing and payments from customers or to suppliers, we may be exposed to foreign currency exchange gains or losses arising from transactions conducted in currencies other than our functional currencies. The imposition of barriers to trade, escalation of trade disputes, and changes to trade policy, tariffs, and import / export regulations may have a material adverse effect on our business, financial condition, and results of operations. We market our products and services globally. We believe there has been a global escalation of barriers and restriction to trade in recent years. Any imposition of new tariffs or other trade barriers, or the escalation of any trade dispute, may adversely affect the global economy, stability of global financial markets, and the businesses of our customers, which, in turn, would also adversely affect demand for our services and products. A downturn in the global economy or the economies of countries in which we or our customers operate as a result of any trade dispute could adversely affect our business, financial condition and results of operations. In addition, current government actions undertaken by various governments to stimulate their respective economies and future government action, including interest rate decreases, changes in monetary policy or intervention in the exchange markets and other government action to adjust the value of the local currency, may trigger inflation. The occurrence of such fluctuations, devaluations or other currency risks could have a material adverse effect on ours and our customer’s business, financial condition and results