Company: OTSA
Filing Date: 2025-06-09
Form Type: F-1
Source: 0001213900-25-052720
Chunk: 48

Company: OTSAW Ltd
Filing Date: 2025-06-09
Form: F-1
Chunk 48
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Vs. Under the Supply Agreement, Reis Robotics agreed to deliver 49 TransCar AGVs during the first contractual year in 2023, and for the following years, the Otsaw -SwisslogJV is to submit purchase orders to Reis Robotics for the TransCar AGVs for each respective year. In 2024, the Otsaw -SwisslogJV purchased 25 TransCar AGVs from Reis Robotics. The Supply Agreement also provides for pricing and delivery terms, as well as termination for cause provisions. If termination for good cause is undertaken by Reis Robotics, it is entitled to the payment of the contract price in full minus such savings incurred by Otsaw due to the termination, and Otsaw is obliged to reimburse all the expenses and costs which have been occurred until the termination. Our reliance on Reis Robotics as the sole supplier in relation to the production and maintenance of the TransCar system involves several other risks, including the following: •if we experience an increase in demand of product or services, our suppliers may be unable to provide us with the product or services that we need in order to meet that increased demand; •our suppliers may encounter financial hardships unrelated to our demand for components, which could inhibit their ability to fulfil our orders and meet our requirements; •we or our suppliers may lose access to critical services and components, resulting in an interruption in the manufacture, assembly and shipment of the product and delivery of services; and If any of these risks materialize, the costs associated with developing alternative sources of supply or production in a timely manner could have a material adverse effect on our ability to meet demand for TransCar AGVs and the maintenance services of the installed TransCar AGVs. Our ability to generate revenues could be impaired, market acceptance of our product could be adversely affected, and customers may instead choose to purchase or use alternative products from our competitors. We may not be able to find new or alternative suppliers in a timely manner or at all. As a result, we could incur increased production costs, experience delays in the delivery of our products and suffer harm to our reputation, which may have an adverse effect on our business and results of operations. Nevertheless, following discussions and mutual understanding between the parties at a meeting, the parties have agreed to continue performance under the existing Supply Agreement through June30, 2025 and Reis Robotics will discontinue manufacturing of the TransCar AGVs on June 30, 2025. No formal amendment to the Supply Agreement was executed in connection with this extension