Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 9

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 3
Chunk 9
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 known constellation-related events, such as GPS week number rollover, may
adversely affect our products and customers. We depend on public access to open technical specifications in advance of system updates
to mitigate these problems, which may not be available or complete.

The GPS satellites and their
ground control and monitoring stations are maintained and operated by the U. S. Department of Defense. The Department of Defense does not
currently charge users for access to the satellite signals, but we cannot provide assurance that they will not do so in the future. It
is also possible that agencies that operate GPS equivalent services like Glonass, Galileo and QZSS begin to charge users for access. Any
such disruption, failure or increase in costs could impede the functionality and/or cost of our solutions which could have a material
adverse effect on our financial condition and results of operations.

The 5G market may take longer
to materialize than we expect or, if it does materialize rapidly, we may not be able to meet customer expectations and timelines.

Growth of the 5G market and its
emerging standards, including the newly defined 5G NR (New Radio) standard, is accelerating. If the market materializes faster than expected,
we may have difficulty introducing new solutions in a timely manner to meet customer demands. The 5G market may require us to design hardware
that meets certain technical specifications. We may have difficulty meeting such specifications and within the expected timelines. 5G
markets will develop at different rates and we may encounter challenges to varying degrees in different countries. If are unable to manage
challenges related to 5G markets and related opportunities, it could have a material adverse effect on our financial condition and results
of operations.

Our inability to successfully
recover should we experience a disaster or other business continuity issue could cause material financial loss, loss of human capital,
regulatory actions, reputational harm and/or legal liability.

Should we experience a local
or regional disaster or other business continuity problem, such as an earthquake, hurricane, terrorist attack, pandemic, security breach,
power loss, telecommunications failure or other natural or man-made disaster, our continued success will depend, in part, on the availability
of personnel, office facilities, and the proper functioning of computer, telecommunication and other related systems and operations. We
could potentially experience material adverse interruptions to our operations or delivery of services to customers in a disaster recovery
scenario.

For example, due to historic
levels of relative under-in