Investor Presentaiton
Key risks
Supplier and Manufacturing
Orexplore sources certain key components from third party suppliers. The delivery of such
components may be delayed, or a specific supplier may not be able to deliver at all, which
may lead to a longer sales cycle or may force the Company to shift to another supplier. There
is a risk that the Company could be disrupted if no alternative suppliers were able to be
sought. There is a risk that key components provided by third party suppliers may be
defective.
The products supplied by the Company may not be functional or not meet customer's
expectations. This may lead to requirements for the Company to rectify, improve or refine its
products, which may diminish operating margins or lead to losses.
The Company has historically utilised outsourced design, engineering and other technical
consultants to develop elements of its products. This bears risk due to key knowledge existing
outside of the Company's employees and the ability of the Company to continually advance
its products in the event of a supplier relationship or operations being seriously impacted.
Whilst the Company enters into confidentiality agreements with these suppliers and seeks to
keep core knowledge in-house and seeks to ensure all designs and external work is
appropriately documented, these shared historical developments bear risk going forward.
Intellectual Property
The success of the Company's technology depends largely on the ability of the Company to protect
the underlying know-how, while not infringing the proprietary rights of others. There is no assurance
that others will not be able to copy the technology. The Company seeks to protect its intellectual
property through patents, trademarks, trade secrets and know-how.
Whilst the Company protects its intellectual property through patents, trade secrets, trademarks,
contractual arrangements and data security policies and measures, there is no guarantee that there
will not be any unauthorised use or misuse of its intellectual property. Furthermore, there is no
assurance that employees of third parties will not breach confidentiality agreements, infringe or
misappropriate Orexplore's intellectual property or commercially sensitive information. Any
infringement may be detrimental to Orexplore's reputation and may lead to costly and time-
consuming litigation or adversely affect Orexplore's financial performance.
It is possible that third parties may assert intellectual property infringement, unfair competition or like
claims against Orexplore under copyright, trade secrets, patents or other laws. While Orexplore is not
aware of any claims of this nature in relation to any intellectual property rights in which it has, such
claims if made may harm, directly or indirectly, the Orexplore Business. If Orexplore is forced to defend
claims of intellectual property infringement, whether they are with or without merit or are determined
in Orexplore's favour, the costs of such litigation may be potentially significant and may divert
management's attention from normal commercial operations.
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