Company: OTSA
Filing Date: 2025-03-26
Form Type: DRS/A
Source: 0001013762-25-002776
Chunk: 32

Company: OTSAW Ltd
Filing Date: 2025-03-26
Form: DRS/A
Chunk 32
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 as additional competitors enter our market, we expect increased pressure on our production costs and margins. In addition, any delays in obtaining the necessary equipment or supplies, the expansion of our production capacity, or the procurement of permits and licenses relating to our expected manufacturing, sales and distribution model could significantly increase our expenses. In such event, we could be required to seek additional financing earlier than we expect, and such financing may not be available to us on commercially reasonable terms, or at all. In the longer term, our ability to become profitable will depend on our ability not only to control costs, but also to sell in quantities and at prices sufficient to achieve our expected margins. If we are unable to cost -efficientlydevelop, design, manufacture, market, sell, distribute and service our products, our margins, profitability and prospects would be materially and adversely affected. Therefore, we may be unable to adequately control the substantial costs associated with our operations, and our costs may grow more quickly than our revenues, harming our business and profitability. An inability to generate positive cash flow for the near term may adversely affect our ability to raise needed capital for our business on reasonable terms, diminish supplier or customer willingness to enter into transactions with us and have other adverse effects that may decrease our long -termviability. We may not achieve positive cash flow in the near future or at all. We made, and expect to continue to make, significant investments in research and development that may not achieve expected returns. Our research and development capabilities are the pillars of our core outdoor autonomy and software competence. We will continue to make significant investments in research and development, expansion of product offerings and improvement for existing products, services and technologies. We are in the research and development stage of upgrading our proprietary software technology, the ANS, from Version 2 to Version 3. We intend for Version 3 to be a commercial software solution that will provide a foundational outdoor autonomy capability for third -partyAMR products, AMR frameworks or hardware platforms, under the product brand “Odyssey”. Furthermore, as part of our joint venture with Swisslog Healthcare Holding AG (“Swisslog Healthcare”), we are developing the next -generationof TransCar solutions for hospitals intralogistics. We are in the research and development stage of upgrading Swisslog Healthcare’s TransCar system to the next generation of TransCar, Transcar 5.0, by utilizing our core software technologies and robotics autonomy and mobility expertise. Because we account for research and development costs as operating expenses, these expenditures will adversely affect our earnings in