Company: OTSA
Filing Date: 2025-03-26
Form Type: DRS/A
Source: 0001013762-25-002776
Chunk: 128

Company: OTSAW Ltd
Filing Date: 2025-03-26
Form: DRS/A
Chunk 128
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 the fundraising activities. Research and development expenses decreased by approximately $0.3 million, totaling approximately $0.9 million for the year ended April 30, 2024. This decrease is attributable to the capitalization of development -relatedexpenditures for internally generated intangible and tangible assets, in accordance with IFRS guidelines. Finance cost Finance cost increased by approximately US$0.7 million from approximately US$0.7 million for the year ended April 30, 2023 to approximately US$1.4 million for the year ended April 30, 2024. The increase was mainly due to the average interest rate of the director loan increasing from 6% for the year ended April 30, 2023 to 12% for the year ended April 30, 2024. 80 Loss before income taxes We had a loss before income taxes of approximately US$6.5 million and approximately US$6.7 million for the years ended April 30, 2024 and 2023, respectively. The reduction in loss before income taxes was directly attributed to decreased operating expenses, as we focused our efforts on enhancing operational efficiency. However, this decrease was partially offset by an increase in finance costs due to higher interest expenses on director loans, which provide funding for our daily operations. Income tax expense Income tax expenses increased significantly from US$1,656 for the year ended April 30, 2023 to US$71,686 for the year ended April 30, 2024. The increase was mainly due to the rise in security transfer tax, which was caused by our external equity acquisitions and inter -companyequity transactions during the year ended April 30, 2024. Net Loss As a result of the foregoing factors, net loss decreased by 2.7% from US$6.7 million for the year ended April 30, 2023 to US$6.5 million for the year ended April 30, 2024. Liquidity and Capital Resources Prior to this offering, our principal sources of liquidity to finance our day -to -dayoperations are from the financing provided by our major shareholder and related parties. We recorded net cash outflow in operating activities of US$2.3 million and US$4.6 million for the years ended April 30, 2024 and 2023, respectively. As of April 30, 2024, we had working capital deficit of US$10.0 million, US$30,