Company: OTSA
Filing Date: 2025-07-16
Form Type: F-1/A
Source: 0001213900-25-064434
Chunk: 58

Company: OTSAW Ltd
Filing Date: 2025-07-16
Form: F-1/A
Chunk 58
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 control of our AMR and robotics systems could result in a loss of confidence in us and our brand and harm our business. Our AMRs and other robotics systems contain complex software systems to support their operation and information technology system that enables them to connect to and communicate with the systems of our end -usercustomers and the Fleet Management and Control Systems which are utilized and operated by our end -usercustomers for real -timedata access and collection through Wi -Fi, 5G and LTE networks. Hackers may attempt to gain unauthorized access to modify, alter and to gain control of, the AMR system deployed by our customer, including the individual AMR’s functionality, user interface and performance characteristics, or to gain access to data stored in or generated by the deployed AMRs that are in the control of our customers. Regardless of their veracity, reports of cyber -attackson our information technology networks or our AMRs systems or data, as well as reports that our technology, software, our AMRs systems or data are vulnerable to hacking could negatively affect our brand and harm our business, reputation, prospects, financial condition and results of operation. Moreover, our deployed products and AMRs may be subject to inappropriate handling, theft, vandalism and other damages, the financial cost and impact of which could have a material adverse effect on our business and operating results. A significant portion of our net sales are generated through distributors, which subjects us to certain risks . We sell our products worldwide through multiple sales channels, including direct sales and through our distributors, who resell our products to numerous end customers. 30 A significant portion of our net sales are made to distributors, accounting for approximately 4% and 9% of our net sales in fiscal years 2024 and 2023. The impairment or termination of our relationships with our distributors, or the failure of these parties to diligently market, sell, or lease our products and comply with applicable laws and regulations, could materially and adversely affect our ability to generate revenue and profits. We plan to continue expanding into international markets through our distributors. We may face significant challenges and risks in managing a geographically dispersed distribution network. Since our distributors control the relationships with some of our end customers, if our relationship with any distributor ends, we could also lose our relationships with these customers. In addition, if a dispute arises with a distributor or if a distributor is terminated by us or goes out of business, it may take time to find an alternative distributor, and to train new personnel to market our products, and our ability to