Company: OTSA
Filing Date: 2025-06-09
Form Type: F-1
Source: 0001213900-25-052720
Chunk: 44

Company: OTSAW Ltd
Filing Date: 2025-06-09
Form: F-1
Chunk 44
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 materials and components for our business. Similarly, if costs of goods continue to increase, our suppliers may seek price increases from us or demand for cash upfront to mitigate their own increased costs. 22 If we are unable to mitigate the impact of supply chain constraints and inflationary pressure through price increases or other measures, our results of operations and financial condition could be negatively impacted. Even if we are able to raise the prices of our products, consumers might react negatively to such price increases, which could have a material adverse effect on, among other things, our brand, reputation, and sales. If our competitors substantially lower their prices, we may lose customers and mark down prices. Our profitability may be impacted by lower prices, which may negatively impact gross margins. Even though we are working to alleviate supply chain constraints through various measures, we are unable to predict the impact of these constraints on the timing of revenue and operating costs of our business in the near future. Raw material supply shortages and supply chain constraints, including cost inflation, have impacted and could continue to negatively impact our ability to meet increased demand, which in turn could impact our net sales revenues and market share. In relation to the Russia -Ukrainewar and the Israel -Palestinewar, the extent and duration of the military actions, resulting sanctions, and future market disruptions — including stock market volatility, disruptions to the global supply chain, and worsening global inflation — are impossible to predict but could be significant. Any such disruptions or resulting actual and threatened responses to such activity, including purchasing and financing restrictions, boycotts or changes in consumer or purchaser preferences, sanctions, tariffs or cyberattacks, may have significant collateral impact on global economy and our business model and revenue stream. As of the date of this prospectus, (i) we principally operate in Singapore and do not have business presence in Russia, Ukraine and the Middle -East; (ii) our industry has been less dependent on oil, natural resources or supply chain which have been disrupted by these military actions; however (iii) we have experienced increased costs for components and logistics, along with extended product delivery times for some customers due to global supply chain challenges. In general, we have experienced no significant financial or operational impact due to these disruptions arising from, related to, or caused by the global disruption from Russia’s invasion of Ukraine and the tensions in the Middle -East. We depend on our suppliers, some of which as of the date of this prospectus are single, sole or limited source suppliers, and any inability of these suppliers to deliver