Company: SPPL
Filing Date: 2025-04-08
Form Type: 20-F
Source: 0001641172-25-003217
Chunk: 2

Company: SIMPPLE LTD.
Filing Date: 2025-04-08
Form: 20-F
Item: Item 3
Chunk 2
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the future, such intellectual property rights or licenses may be materially and adversely affected in the event that our existing distribution
agreements expire.

Further,
our customer agreements typically permit our customers to terminate our service without cause by providing an agreed upon prior notice,
and for full payment to us (even when terminated prematurely by the customer). However, if a substantial number of our customer agreements
are terminated early for any reason, and we are unable to secure new customer agreements in a timely manner, this could have a material
adverse effect on our business, financial condition, results of operations and prospects.

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We
are exposed to the credit risks of our customers and we may experience delays or defaults in collecting our receivables, and thus we
face liquidity risks.

We
face uncertainties over the timeliness of our customers’ payments and their ability to pay. Our customers’ ability to pay
may be affected by events or circumstances that are difficult to foresee or anticipate, such as a decline in their business or an economic
downturn. Hence, there can be no assurance that we will be able to collect our trade debts fully or within a reasonable period of time.

As
such, our financial condition and results of operations are dependent, to a certain extent, on the creditworthiness of our customers.
If there are any unforeseen circumstances affecting our customers’ ability or willingness to pay us, we may experience payment
delays or non-payment. In such events, our Group’s liquidity, cash flows and working capital may be adversely affected.

We
depend on a limited number of manufacturers, and our reputation and results of operations would be harmed if these manufacturers fail
to meet our requirements

We
depend on a limited number of manufacturers. In particular, one of our main products, the Gaussian Robots, are manufactured by Shanghai
Gaoxian, a third-party manufacturer based in China. Shanghai Gaoxian’s manufacturing efforts may be materially impacted by events
and circumstances beyond their reasonable control, such as the COVID-19 pandemic in the past, and related port and customs delays, or
for other reasons. If Shanghai Gaoxian fails to provide us with the required capacity and quality on a timely basis, there would be a
disruption in manufacturing our products until volume is transferred to an alternative manufacturing partner, which would be a costly
and time-consuming process. We have not yet experienced any material disruptions due to our dependence on the limited number of manufacturers,
but we cannot assure