Company: OTSA
Filing Date: 2025-01-28
Form Type: DRS
Source: 0001213900-25-007614
Chunk: 37

Company: OTSAW Ltd
Filing Date: 2025-01-28
Form: DRS
Chunk 37
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 our product pricing expectations, which could adversely affect our margins and cash flows. Any failure to develop large scale production processes and capabilities within our projected costs and timelines could have a material adverse effect on our business, prospects, financial condition and operating results. 19 The commercial robotic market is in the early stages of customer adoption and the potential for large-scale application of autonomous robots in the facilities management industry remains unproven. If the commercial robotic market does not experience significant development, or develops more slowly than we expect, or if our products do not achieve broad acceptance in the facilities management industry, we will not be able to achieve significant sales and the growth of our business will be harmed. The commercial robotics market is in the early stages of customer adoption. The concept of the application of autonomous robotic technology in the facilities management industry is relatively new and market demand for such technology is unproven. Key assumptions about the characteristics of targeted markets, pricing and sales cycles may be inaccurate. Accordingly, our business and future prospects may be difficult to evaluate. Given the evolving nature of the commercial robotics markets in which we operate, we cannot accurately predict the extent to which demand for our products and services will increase, if at all, and we cannot accurately predict the future growth rate or the potential size of the commercial robotic market. Demand for commercial robots may not increase, or may decrease, either generally or in specific geographic markets, for particular types of robots or during particular time periods. Market expansion for our products depends on various factors, such as: •the cost, pricing, performance, and reliability of our products and those offered by our competitors; •the perceived value associated with our products and services, and our customers and potential customers’ acceptance of the use of robots to perform certain tasks traditionally completed by humans in the facilities management industry, such as security patrol, delivery, and disinfection; •public perceptions regarding the effectiveness, efficiency, and value of robotics applications in the facilities management industry; •global and local economic conditions, labor market trends and labor costs; •customer satisfaction with our products; and •marketing efforts and publicity surrounding our products. Existing or new national laws and regulations, safety standards, or resistance by employees of our institutional customers and labor unions, all of which are factors outside of our control, could cause delays or otherwise impair adoption of our products, which could materially and adversely affect our growth, operating results, financial condition and prospects. Even if commercial robots gain wide market acceptance, our products may not adequately address market requirements and may not continue to gain market acceptance.