Company: MOBBW
Filing Date: 2025-03-27
Form Type: 20-F
Source: 0001013762-25-003365
Chunk: 12

Company: Mobilicom Ltd
Filing Date: 2025-03-27
Form: 20-F
Item: Item 3
Chunk 12
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 hardware and electronics components, various subsystems and manufacturing and assembly services from a limited group of suppliers
and sub-contractors. We do not have long-term agreements with any of these suppliers or sub-contractors that obligate them to continue
to sell materials, components, subsystems, or provide manufacturing services to us. Our reliance on these suppliers or sub-contractors
involves significant risks and uncertainties, including whether our suppliers or sub-contractors will provide an adequate supply of required
components, subsystems, or services of sufficient quality, will increase prices for the components, subsystems or services and will perform
their obligations on a timely basis.

In addition, certain raw materials
and components used in the manufacture of our products are periodically subject to supply shortages, and our business is subject to the
risk of price increases and periodic delays in delivery. For example, between 2020 and 2022, the electronics components shortage crisis,
a unique result of the COVID-19 pandemic, negatively affected our market segment by increased delivery lead time and increased purchase
prices of components used under certain of our products, which resulted in delay in delivery time of our products to our customers, and
had negative effect on our revenues and profitability. Similar global health crises could have a negative effect on our business, operations
and future financial performance. Similarly, the market for electronic components is subject to cyclical reductions in supply. If we are
unable to obtain components from third-party suppliers in the quantities and of the quality that we require, on a timely basis and at
acceptable prices, then we may not be able to deliver our products on a timely or cost-effective basis to our customers, which could cause
customers to terminate their contracts with us, increase our costs and seriously harm our business, results of operations and financial
condition. Moreover, if any of our suppliers or sub-contractors become financially unstable, then we may have to find new suppliers or
sub-contractors. It may take several months to locate alternative suppliers or sub-contractors, if required, or to redesign our products
to accommodate components from different suppliers. We may experience significant delays in manufacturing and shipping our products to
customers and incur additional development, manufacturing and other costs to establish alternative sources of supply if we lose any of
these sources or are required to redesign our products. We cannot predict if we will be able to obtain replacement components within the
time frames that we require at an affordable cost, if at all.

Our products may be