Company: VEEAW
Filing Date: 2025-01-10
Form Type: S-1/A
Source: 0001213900-25-002701
Chunk: 35

Company: VEEA INC.
Filing Date: 2025-01-10
Form: S-1/A
Chunk 35
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eea’s platforms could be harmed. Alleviating any of these problems could require additional
significant expenditures of Veea’s capital and other resources and could cause interruptions, delays, or cessation of Veea’s
product licensing, which could cause Veea to lose existing or potential customers and could adversely affect Veea’s business, financial
condition, results of operations, and growth prospects.

A product failure could expose Veea to damages
(including consequential damages or strict liability) if used in certain critical usage situations (e.g., monitoring a critical system
like a transportation control system or water level control use case). Veea’s contractual liability disclaimers could be set-aside
by a court or administrative agency, exposing Veea to economic and reputational injury.

Veea bears costs and risks associated with relying on distribution and partnering arrangements.

Recruiting and retaining qualified
third-party distributors and channel partners and training them in our technology and product offerings require significant time and resources.
To develop and expand our distributors and channel partners, we must continue to scale and improve our processes and procedures
that support our distributors and channel partners.

Furthermore, if our relationship with a successful
distributor or channel partner terminates, we may be unable to replace them without disruption to our business. If we fail to maintain
positive relationships with our distributors or channel partners, fail to develop new relationships with other distributors or channel
partners (including in new markets), fail to manage, train, or incentivize our existing distributors or channel partners effectively,
or fail to strike agreements with attractive terms, or if our distributors and channel partners are not successful in their businesses,
our revenue may decrease, and our operating results, reputation, and business may be harmed.

Additionally, if Veea does not effectively manage
its sales channel and distributor inventory and product mix, it may incur costs associated with excess inventory, or lose sales from having
too few products. If we improperly forecast demand for our products, we could incur increased expenses associated with writing off excessive
or obsolete inventory, lose sales, incur penalties for late delivery or incur additional costs by having to ship products by air freight.

Any disruption of Veea’s operations, whether due to natural or political events, may be highly damaging to the operation of Veea’s business.

Veea’s business operations and those of
its suppliers are vulnerable to interruption by fire, earthquake, hurricane, flood or other natural disasters, power loss, computer viruses,
computer systems failure, telecommunications failure, pandemics, quarantines, national catastrophe, terrorist