Company: OTSA
Filing Date: 2025-05-23
Form Type: DRS/A
Source: 0001213900-25-047247
Chunk: 31

Company: OTSAW Ltd
Filing Date: 2025-05-23
Form: DRS/A
Chunk 31
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 continue, you may lose your entire investment. This situation continued for the periods ended October 31, 2024 and 2023 under the review of our auditors. The uncertainty about our ability to continue in operation is based on our continuing losses from operation and limited working capital, among other things which existed as of October31, 2024, April30, 2024 and April30, 2023. As of October31, 2024, April30, 2024 and April30, 2023, the Company had a net working capital deficit of $12,399,036, $10,012,865 and $12,701,025, respectively. Included in the accumulated deficit are losses of $6,458,189 for the year ended April30, 2024 and $3,289,473 for the six months ended October31, 2024. The Company has incurred recurring losses and has accumulated losses of $21,868,746 and $25,108,914 as of April30, 2024 and October31, 2024, respectively. Given all these facts, we are dependent on obtaining funding from operations and the sale of debt or equity to continue as a going concern. The financial statements do not include any adjustments relating to the recoverability of assets and classification of liabilities that might be necessary should we be unable to continue as a going concern. 15 Our ability to continue as a going concern depends on the success of this offering and receipt of additional funds through debt or equity financing and our operations. In the event we are unable to obtain such funding, we may have to delay, reduce or eliminate certain of our planned operations, including some of our research and development and/or clinical validation studies to demonstrate aesthetic improvement, reduce overall overhead expense, or divest assets. This in turn may have an adverse effect on our ability to realize the value of our assets. If we are unable to continue as a going concern, you may lose all or part of your investment. We have yet to achieve positive operating cash flow and, given our projected funding needs, our ability to generate positive cash flow is uncertain. We had negative cash flow from operating activities of $4.6 million and $2.3 million for the years ended April 30, 2023 and 2024, respectively. We had negative cash flow from operating activities of $1.5million and $0.8million for the six months ended October31, 2023 and 2024, respectively