Company: OTSA
Filing Date: 2025-03-26
Form Type: DRS/A
Source: 0001013762-25-002776
Chunk: 173

Company: OTSAW Ltd
Filing Date: 2025-03-26
Form: DRS/A
Chunk 173
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 and globally and have established various training programs to keep them abreast of the most advanced AMR, robotics and AI software technologies. 106 Manufacturing and Supplier Manufacturing and Production We assemble our AMRs and UV -CLED disinfection products, including O -R 3, Camello +, TreX, AirGuard, and O -RX, at our Singapore headquarters’ production facility using components, sub -assembliesand materials that are manufactured by, and sourced from, more than 360 suppliers internationally. As a result, we have the ability to scale up our production with relatively limited capital investment because we only require additional assembly and warehouse space to increase our manufacturing capacity. Further, because our business model is capital efficient, we are able to adapt to shifts in customer demand and calibrate our growth plans to ensure that we maintain the appropriate production capacity at all times. In relation to the production of TransCar AGVs, we currently rely on Reis Robotics for the production and manufacturing of the TransCar AGVs pursuant to the Supply Agreement. Reis Robotics will discontinue manufacturing of the TransCar AGVs on June 30, 2025, and the next generation of TransCar, Transcar 5.0, will be produced in -houseat our manufacturing facility in Singapore. 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. We are currently in the process of technology transfer and developing the production capacity for the TransCar AGVs in our Singapore headquarters. Suppliers Serial Microelectronics Pte. Ltd., Activ Technology Pte. Ltd. (“Active Technology”), Swisslog Healthcare GmbH, and Swisslog Healthcare Asia Pacific Pte. Ltd. are related parties to us (please refer to the section entitled “Related Party Transaction” for further detail regarding related party transactions and our policies