Company: OTSA
Filing Date: 2025-03-26
Form Type: DRS/A
Source: 0001013762-25-002776
Chunk: 45

Company: OTSAW Ltd
Filing Date: 2025-03-26
Form: DRS/A
Chunk 45
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 manufacture our robotics products depends on having a consistent supply of semiconductors, components incorporating semiconductors, and lithium -ionbattery cells. Increases in costs, disruption in supply or shortage of lithium -ioncells from our battery suppliers could disrupt production and increase the costs of production of our products, and subsequently could harm our business. We do not currently have any long term standing agreements for the supply of batteries and we depend on the open market for their procurement. The shortage of semiconductors or other key components incorporating semiconductors could cause a significant disruption to our production schedule. While the global semiconductor supply shortage has eased in 2024, we may still encounter shortage for semiconductors on a periodic basis, which may impact the manufacturing of certain components which incorporate semiconductors. These delays and shortages could disrupt our production and lead to longer lead times for the delivery of our products to our customers. We experienced and may continue to experience an impact on our operations as a result of the shortages and longer lead times of semiconductor chips, and such shortage could in the future have a material impact on us or our suppliers, which could delay our production, negatively affect our ability to timely deliver our products to customers, or force us or our suppliers to pay exorbitant rates for continued access to semiconductors. Any failure to deliver our products within our projected costs and timelines could have a material adverse effect on our business, prospects, financial condition and operating results. If we are unable to pre -purchasethe supply for semiconductors or other key components that may experience shortages, or if we cannot find other methods to mitigate the impact of any such shortage, then any such short shortage could have a material adverse effect on our business, prospects and results of operations. Furthermore, fluctuations or shortages in raw materials or components and other economic conditions may cause us to experience significant increases in freight charges and material costs. Substantial increases in the prices for materials or prices charged to us, such as those charged by our battery or semiconductor suppliers, would increase our operating costs, and could reduce our profit margins if we cannot recoup the increased costs through increased RaaS subscription fee or unit sales prices. Any attempts to increase product prices in response to increased material costs could result in cancellations of orders and reservations and therefore materially and adversely affect our brand, image, business, prospects, financial condition and operating results. We rely solely on Reis Robotics as the single source supplier for the production and maintenance of the TransCar systems, and